| 18. | Commitments and Contingencies |
In addition to the lease payment commitments discussed in Note 8 — Leases — Lessee, the ground leases to which the Company is a party contain covenants that require the Company to conduct construction of hangar facilities on the leased grounds within a certain period and in some cases, to spend a minimum dollar amount.
| Airport | | Project | | Minimum Spend Commitment | | Timeframe Commitments |
| CMA | | CMA Phase I | | $20.0 million of capital improvements. | | Complete minimum spend commitment within 60 months of the effective date of the lease. |
| DVT | | DVT Phase II | | $14.6 million of capital improvements. | | Complete construction within 36 months of receiving all permitting documents. |
| ORL | | ORL Phase I | | $30.0 million of capital improvements. | | Complete minimum spend commitment within 36 months of the effective date of the lease. |
| ORL | | ORL Phase II | | $5.0 million of capital improvements. | | Commence construction within 5 years of effective date of the lease and complete construction within 24 months of construction commencement. |
| POU | | POU Phase I | | $25.0 million of capital improvements. | | Commence construction within 6 months of the issuance of permits and complete construction within 15 months of construction commencement. |
| PWK | | PWK Phase I | | None. | | Commence construction within 6 months of the issuance of permits and complete construction within 18 months of construction commencement. |
| SJC | | All Phases | | $8.1 million of capital improvements. | | Complete minimum spend commitment within 15 years of lease commencement. |
| SLC | | SLC Phase I | | $40.0 million of capital improvements. | | None. |
| TTN | | TTN Phase I | | $30.0 million of capital improvements. | | Complete construction within 36 months of receiving all permitting documents or no later than 48 months after the effective date of the lease. |
The Company has contracts for construction of the OPF Phase II, BDL Phase I, and POU Phase I construction projects. The Company may terminate any of the contracts or suspend construction without cause. There are no termination penalties under such construction contracts.
In addition to the matters described in this note, the Company is involved in various legal proceedings and claims in the ordinary course of its business. Although the Company cannot predict with certainty the ultimate resolution of these matters, which involve judgements that are inherently subjective, the Company does not expect that the ultimate disposition of such other contingencies or matters will materially affect its financial condition, results of operations or cash flows.
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