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County attorney briefs court on new state lease-term requirement that can require payment/performance bonds and 90-day notice
Summary
The county attorney explained a Texas law effective Sept. 1, 2023, that requires certain lease terms for public property, including 90-day notice and potential payment/performance bonds for improvements on public property; commissioners discussed implications for airport hangars and other lessees but did not take a formal vote.
The Aransas County attorney told the commissioners on May 20 that a Texas law effective Sept. 1, 2023, imposes a required lease term in public leases that may require lessees to provide a payment or performance bond for improvements to public property and requires a notice of commencement 90 days before work begins.
The county attorney told the court she could not find evidence that the county had previously updated its leases to reflect the change and recommended sending a template notice to all existing county lessees. She explained the effect: if a lessee makes improvements and fails to pay contractors, the county could potentially be held as surety unless the bond requirements are met or notices provided.
Commissioners asked practical questions about who prepares the notice, who must deliver a bond, and whether routine maintenance or small improvements would trigger the requirement. The county attorney clarified that the statutory requirement applies to improvements performed on public property and recommended notice to current lessees so the county is protected.
Why it matters: The new lease-term requirement shifts certain financial risk and documentation obligations in public leases and could require lessees making improvements on county-owned property to secure payment or performance bonds and to provide formal notice to the county ahead of construction. This affects airport hangar lessees, other long-term ground lessees and any party doing construction on county-owned land.
Discussion vs. action: The item was presented and discussed; commissioners did not adopt immediate rule changes or a court-wide directive on the record at the May 20 meeting, but the county attorney said she would produce template language and notify procurement staff so the term could be added to future and existing leases.
Ending: The court requested staff follow-up and expressed interest in notifying airport and other lessees; next steps include preparing a template clause/notice for incorporation into lease documents and outreach to current lessees.
