Texas Administrative Code › Title 43 - TRANSPORTATION › Part 1 - TEXAS DEPARTMENT OF TRANSPORTATION › Chapter 21 - RIGHT OF WAY › Subchapter L - LEASING OF HIGHWAY ASSETS › Section 21.604 - Lease Agreement

Current through Reg. 49, No. 28; July 12, 2024
A lease for highway assets shall be in written form
					 approved by the director and shall include:
(1) information necessary to contact the
				  party responsible for developing and operating the leased asset;
(2) the amount of the rent, any required
				  deposits, the term of the lease, and the method of payment of the rental
				  amounts or deposits;
(3) a
				  statement of the authorized use of the leased asset;
(4) a statement that any change in the
				  authorized use of the leased asset is subject to prior written approval of the
				  director;
(5) a detailed
				  description of the asset to be leased, which may be three-dimensional where
				  vertical limits are needed;
(6) the
				  general design for the use of the leased asset, including any improvements to
				  be constructed, any maps, plans, or sketches necessary to set out the pertinent
				  features in relation to any highway facility and a description of any temporary
				  improvements to be provided by the lessee;
(7) a statement that any significant revision
				  in the design of the improvements described in subsection (d) of §
										21.605 of
				  this subchapter is subject to prior written approval by the district
				  engineer;
(8) a statement that the
				  department shall have the right to approve all construction and plans for
				  construction on the leased asset;
(9) permission for the employees of and any
				  representatives authorized by the department to enter the leased asset for the
				  purpose of inspection, maintenance, or reconstruction of highway facilities as
				  necessary, or to determine compliance with the terms and conditions of the
				  lease;
(10) a statement that any
				  improvements located within the leased asset will be maintained by the lessee
				  at the lessee's sole expense, so as to assure that any structures in the area
				  within the highway asset will be kept in good condition, both as to safety and
				  appearance, and that maintenance will not interfere with highway use;
(11) a statement that in the event the
				  district engineer determines that the responsible party has failed in its
				  maintenance obligation, the department has the right to enter the leased asset
				  to perform such work, all at the expense and liability of the lessee;
(12) a statement requiring forfeiture of
				  deposits, payment to the department of litigation costs, or any other expense
				  incurred by the department due to nonperformance of the terms of the lease
				  agreement;
(13) a performance bond
				  when considered necessary by the department;
(14) adequate public liability insurance for
				  the leased asset, the conduct of lessee's business, and lessee's
				  indemnification obligations to the department set forth in the lease, to be
				  provided by lessee at lessee's sole expense, naming the department as an
				  additional insured and including other endorsements as determined to be
				  necessary by the department, in an amount and form acceptable to the department
				  for the payment of any damages occurring to the highway facility or to the
				  public for personal injury, loss of life or property damage which may occur;
				  except that the director may waive this requirement when the lease is with a
				  county, city, state agency, or the federal government and when the entity has
				  assumed the specific responsibility for payment of any related damages
				  occurring to the highway facility or to the public for personal injury, loss of
				  life, or property damage;
(15) a
				  statement that the lease may be terminated when, in the sole opinion of the
				  department, the asset ceases to be used in accordance with the use provisions
				  or is abandoned;
(16) a statement
				  that the lease may be terminated by the department when, in the sole opinion of
				  the department, there is noncompliance with the terms of the lease or the
				  conditions are violated and noncompliance or violation is not corrected within
				  a reasonable length of time determined by the department after written notice
				  of noncompliance or violation has been given and that in the event the lease is
				  terminated and the department determines it necessary to request the removal of
				  lessee improvements located within the asset, the removal shall be accomplished
				  by the lessee in a manner prescribed by the district engineer and at no cost to
				  the department;
(17) a statement
				  that the lease and leased premises shall not be transferred, assigned, or
				  conveyed to another party without prior written approval by the
				  director;
(18) a requirement that
				  the lease or any improvements on the leased asset will be kept free of all
				  liens and will not be used as security for any loan; provided however, the
				  lessee will be allowed to mortgage or otherwise pledge or grant a security
				  interest in the leasehold interest to secure financing for the acquisition of
				  the leasehold and for the construction and operation of an improvement
				  permitted under the lease, subject to the terms and conditions contained in the
				  lease;
(19) a statement that the
				  lessee assumes all risks of losses resulting from the lease;
(20) a description of nondiscrimination
				  requirements; and
(21) any other
				  provisions deemed necessary or desirable by the director.