Can a regional airport renew a tenant's lease without going through a bid process if the airport's bylaws don't require bidding?

Plain-English summary

Representative Steve Hollowell asked whether a regional airport could renew a tenant’s property lease when the airport’s bylaws did not specify that a bid process was required.

The AG said an airport organized under the Regional Airport Act has authority to adopt bylaws and also has authority independent of its bylaws to enter contracts and lease property. The absence of a bidding requirement in the bylaws therefore does not, by itself, preclude renewal.

The opinion is limited. The AG said there were not enough facts to determine whether the bylaws were valid or whether the proposed renewal complied with other law governing airports, contracts, and leases. It does not approve a particular renewal or decide whether another source of law requires bidding in the circumstances.

What this means for you

If you serve on a regional airport board

Silence in the bylaws about bidding does not by itself prevent the airport from renewing a lease. The opinion does not determine whether the bylaws are valid or whether the proposed renewal complies with other law governing airports, contracts, or leases.

If you manage or advise a regional airport

The opinion recognizes contract and leasing authority independent of the airport’s bylaws. Any conclusion about a particular renewal still depends on facts and on other law that the AG did not assess.

If you are a tenant or potential bidder

The opinion addresses the airport’s authority to renew in the face of bylaw silence. It does not decide whether a tenant has a right to renewal or whether another law requires a bid process for a particular lease.

Common questions

Does silence in the airport’s bylaws prohibit lease renewal?
No. The AG said the absence of a bidding requirement in the bylaws does not, by itself, preclude renewal.

Did the AG decide that no bid is ever required?
No. The AG said there were insufficient facts to determine whether the lease renewal complied with other law governing airports, contracts, and leases.

What authority does the opinion recognize?
It recognizes that an airport organized under the Regional Airport Act may adopt bylaws and has independent authority to enter contracts and lease property.

Did the opinion validate the airport’s bylaws?
No. The AG expressly said there were insufficient facts to determine whether the bylaws were valid.

Does the opinion give a tenant a right to renewal?
The opinion addresses the airport’s authority and does not decide a tenant’s contractual or other right to renewal.

Background and statutory framework

The opinion distinguishes the airport’s authority to adopt bylaws from its authority to enter contracts and lease property. It concludes that the latter authority exists independently of the bylaws for an airport organized under the Regional Airport Act.

The AG did not receive enough facts to determine whether the bylaws were valid or whether the renewal complied with other airport, contract, or lease law. Those questions remain outside the opinion’s conclusion.

Citations

Statutes:

• A.C.A. § 14-362-109(1)
• A.C.A. § 14-362-109(3)
• A.C.A. § 14-362-109(6)
• A.C.A. § 14-362-109(7)

Other AG opinions referenced in the source footnotes:

• Ark. Att’y Gen. Ops. 2006-137, 2003-166

Source

• Landing page: https://arkansasag.gov/divisions/opinions-foia/attorney-general-opinions-search/

Original opinion text

BOB R. BROOKS JR. JUSTICE BUILDING
101 WEST CAPITOL AVENUE
LITTLE ROCK, ARKANSAS 72201
Opinion No. 2025-092
September 23, 2025
The Honorable Steve Hollowell
State Representative
Post Office Box 1203
Forrest City, Arkansas 72336

Dear Representative Hollowell:

I am writing in response to your request for my opinion on whether a regional airport can renew a lease of property with a tenant if the airport's "bylaws do not specify that a bid process is required."

While an airport organized under the Regional Airport Act has the authority to adopt bylaws, it also has the authority independent of bylaws to enter contracts and lease property. Thus, the absence of a bidding requirement in the bylaws does not, by itself, preclude the airport from renewing the lease. But I lack sufficient facts to determine whether the bylaws are valid or whether the lease renewal complies with other law governing airports, contracts, and leases.

Assistant Attorney General William R. Olson prepared this opinion, which I hereby approve.

Sincerely,
TIM GRIFFIN
Attorney General

1. A.C.A. § 14-362-109(1); see also Ark. Att’y Gen. Ops. 2006-137, 2003-166.
2. A.C.A. § 14-362-109(3), -109(6), -109(7).