• The Agreement takes effect almost immediately (upon the effective date of the approving ordinance).
• The Agreement lasts for seven years. The Authority’s commitment that it will not build a new terminal lasts for ten years.
• The Agreement can terminate early if (1) the Authority does not buy the A-1 North Property, or (2) a decision by the FAA or a court precludes the Authority from complying with the Agreement.

Vested Rights. The Agreement grants vested development rights to the Authority for the development of the Airport property, A-1 North Property and B-6 Property. This gives the Authority the right to pursue both specific projects and future projects.

• Specific Projects. The City will authorize: (1) the Authority’s purchase of the A-1 North Property (under PUC § 21661.6) and a zoning change (from M-2 to PD) to permit the Authority to redevelop the A-1 North Property for airport-related parking; and (2) the relocation (under PUC § 21661.6) of Parking Lot A to the Adjacent Property.
• Future Projects. The City agrees not to change its interpretation of permitted uses in the Airport Zone. The interpretation permits virtually all normal airport-related uses (e.g., runways, hangars, ramps, taxiways, fueling facilities, cargo facilities, passenger facilities (including retail concessions), airport parking, car rental facilities, general aviation facilities, and wireless telecommunications facilities. [But see limits below]
• Development Review. Like other property owners, the Authority may construct minor projects without going through development review. The Agreement lists several Airport-specific projects that would be interpreted as exempt from development review under the existing Zoning Code. The Agreement does not amend the development review process.
• Valet Parking Ordinance. City staff are currently working on a valet parking ordinance. The Authority wanted assurances that the City wouldn’t use this ordinance to prevent valet operations from occurring at the Airport. Therefore, during the seven-year term, the City will not regulate valet parking operations that occur solely on Authority property and do not involve use public streets.

Rezoning. The City agrees that it will not "plan for a new terminal" or take any other action that provides specific standards that affect the location or development of a passenger terminal building, such as development standards, or parking standards or locations during the seven-year term. The City may adopt an ordinance requiring a specific plan or other discretionary entitlement for certain Airport facilities; allowing general plan amendments; so long as those measures do not require discussion of a new or relocated terminal.

Prohibited Projects. The Authority will not do any of the following during the term of the Agreement:

• Build or announce plans for a new passenger terminal (this commitment lasts for 10 years while the other commitments last for 7 years).
• Expand the square footage of the existing passenger terminal, with certain exceptions for security and other needs.
• Expand the general aviation area beyond an area specified in the Agreement.
• Expand the number of gates or aircraft parking positions beyond the current 14.
• Construct any structures on the airside portion of the Building Restriction Line.

Parking.

• Parking will be permitted only where currently located on the Airport Property or on an approved portion of the A-1 North and Adjacent Property (except for the temporary overflow parking areas on the Trust Property where parking is prohibited for the next ten years).
• The Authority will remove temporary overflow parking from the Trust Property for 10 years.
• After four years, public parking will be permitted in the Southwest Quadrant of the Airport.
• Parking will be permitted on other property not owned by the Authority only if it is approved by the City under PUC § 21661.6.

B-6 Property. The Agreement limits use of the Adjacent and Trust Property. Most of these limits will appear in amendments to the Trust Agreement and the 1999 title transfer documents that have not yet been drafted.

• Adjacent Property. The City will amend the Authority’s plan (under PUC § 21661.6) for the Adjacent Property to allow relocation of Parking Lot A.
• Trust Property. The use of the Trust Property will be limited to non-airport uses.
• Time Limits. Unlike the Agreement, the limits on use of the Adjacent Property and Trust Property are permanent. Therefore, even after the expiration of the Agreement, the easements will continue to prevent airport-related uses on the B-6 Property (unless the City later agrees to amend the easements).

Intersection Realignment. The Authority will buy a small portion of the A-1 North Property to realign the intersection of the Airport access road to make it align directly with Thornton Avenue. The City and the Authority will share equally in the improvement costs

Noise Working Group. The City Manager and Authority Executive Director will form a staff-level Noise Working Group to study and address nighttime noise relief, including whether the Authority should continue to pursue the Part 161 Study.

Dispute Resolution. In order to resolve disputes without terminating the Agreement, there is a thorough dispute resolution process which requires discussions and non-binding arbitration before filing suit.

Adverse Law or Decision. The City or Authority could amend or terminate the Agreement in the event that the FAA or a court renders a decision that would make it impossible or impractical for the Authority to comply with the Agreement (e.g., compliance with the Agreement would violate the contractual commitments that the Authority must make to get federal grant funding).