CAPITAL IMPROVEMENT COORDINATION WITH AIRLINE. On or about July 1, or approximately ninety (90) days prior to the end of the then-current Fiscal Year, City shall notify Airline in writing of its proposed Capital Improvement program for the subsequent Fiscal Year, as contained in City’s proposed Capital Improvement budget for the Fiscal Year. City further reserves the right to notify Airline in writing at any other time of proposed Capital Improvements. The City agrees to provide Airline a written description of such Capital Improvements, such description to include the purpose, method of financing, and any reasonably anticipated effect on airline rents, fees, and charges hereunder and, to meet with Airline and other airlines within thirty (30) days after notification to Airline of said Capital Improvement to further discuss the proposed Capital Improvement. Such meeting may occur concurrently with the airline consultation described in Article 6. The City will give due consideration to the comments and recommendation of Airline with respect to the proposed Capital Improvements. Certain Capital Improvements are subject to deferral if Airline, together with other airlines, requests a deferral of a proposed Capital Improvement. If seventy-five percent (75%) in number of the airlines currently leasing premises from the City and operating at the Airport (excluding any Affiliates), and representing at least seventy-five percent (75%) of airline rents, fees, and charges associated with this Agreement paid during the previous Fiscal Year request deferral of a particular Capital Improvement not excluded below, it will be deferred for a period of twelve (12) months. Any such request for deferral must be in writing and submitted to City by Airline within thirty (30) days following the meeting as described above in accordance with Section 19.5. In the event of a Capital Improvement deferral, the Capital Improvement will be deferred for twelve (12) months following the deferral request. Following the twelve (12) months deferral period, the Capital Improvement may be constructed and the capital, operating, and maintenance costs and expenses will be included in airline’s rents, fees and charges upon the Capital Improvement’s completion.
