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 Hollowell asked the AG a brief, narrow question: can a regional airport renew a property lease with a tenant if the airport's bylaws don't specify that a bid process is required?
The AG's answer: yes, in principle, because the statute provides standalone authority.
The Arkansas Regional Airport Act (A.C.A. § 14-362-109) gives an airport's governing board:
- (1) Authority to adopt bylaws.
- (3) Authority to enter contracts.
- (6) Authority to lease property.
- (7) Other operational powers.
The contract and leasing authority exists independently of the bylaws. Even if the bylaws are silent on bidding, the statutory authority to lease property is not extinguished. So the airport can renew a lease without bidding unless some other law requires bidding.
The caveats are doing real work in this short opinion. The AG explicitly disclaims:
- Whether the bylaws are valid (a fact question).
- Whether the lease renewal complies with other airport, contract, and lease law (also fact-specific and outside the four-corner of the question).
So this opinion answers the narrow question (no, the absence of a bidding requirement in the bylaws does not by itself prohibit renewal) without endorsing any particular renewal as lawful in all respects.
What this means for you
If you are on a regional airport board
The absence of a bidding requirement in your bylaws does not prevent you from renewing leases. But that does not mean any particular renewal is automatically lawful. Other Arkansas statutes can impose procedural requirements:
- Public records requirements for the lease document.
- Open meetings requirements for the renewal vote.
- Bidding or competitive solicitation requirements that may apply to specific transaction types under other titles of the Arkansas Code.
- Any local-government oversight provisions in your enabling charter.
Coordinate with airport counsel on each renewal.
If you are an airport manager
Read the bylaws. Then read § 14-362-109 alongside them. Statutory powers fill gaps the bylaws leave open. The question is not what your bylaws say but what they prohibit. Silence on bidding is not a prohibition on renewal.
If you are a long-term airport tenant negotiating a renewal
This opinion gives the airport flexibility to negotiate directly with you. It does not require a competitive process even though one might be best practice for transparency. If you want to lock in a renewal, push for board action sooner rather than later, but expect the airport to do its own due diligence on whether the renewal serves the airport's interests.
If you are a competing tenant who would have wanted to bid
The opinion clarifies that the airport is not required to bid the property. If you want to compete, you can ask the board to put the property out for bid as a matter of policy, but the statute does not entitle you to a bid process.
If you are an airport attorney
Three practical pieces of advice:
1. Document the public-purpose justification. Even when bidding is not required, document why the renewal serves the airport's interests (continuity, tenant performance, fair market rent).
2. Verify rent reasonableness. Get an appraisal or comparable-rent analysis. Sole-source renewals at below-market rents invite challenge.
3. Watch for any other applicable bidding statutes. Federal grants, state economic development incentives, or specific lease types may carry their own procedural requirements.
Common questions
Are bylaws required for an Arkansas regional airport?
A.C.A. § 14-362-109(1) authorizes airports to adopt bylaws. Whether they are required depends on the airport's enabling documents and other governance requirements.
What is a regional airport under Arkansas law?
An airport organized under the Arkansas Regional Airport Act, A.C.A. § 14-362-101 et seq. These are typically larger airports serving multiple jurisdictions.
Why doesn't the AG just say "the renewal is lawful"?
Because the AG cannot review specific facts. He answers the legal question (does the bylaw silence prevent renewal?) but stops short of validating a particular transaction without seeing the renewal document, the bylaws, or the airport's full governance structure.
Can a tenant compel renewal?
No. The opinion is about the airport's authority to renew, not about a tenant's right to renewal. Renewal rights typically arise from the lease document itself.
Are there any open-meetings issues?
Lease renewals by a public airport board are typically subject to Arkansas FOIA's open meetings requirements. The vote should be in an open session unless an exemption applies.
What if the renewal terms have changed substantially?
A "renewal" with substantially new terms may be a new lease in disguise. If your jurisdiction has bidding requirements for new leases above certain thresholds, those may apply. Document the renewal as a renewal, not a new transaction.
Background and statutory framework
Arkansas Regional Airport Act, A.C.A. § 14-362-101 et seq. Authorizes regional airports.
A.C.A. § 14-362-109. Authority of regional airport boards:
- (1) Authority to adopt bylaws.
- (3) Authority to enter contracts.
- (6) Authority to lease property.
- (7) Other operational powers.
The contract and leasing powers operate independently of the bylaws. The bylaws can supplement (e.g., adding a bidding requirement) but the absence of a supplement does not extinguish the underlying authority.
Statutory authority vs. bylaws. Bylaws are subordinate to the enabling statute. Where the statute confers authority, bylaws can shape but cannot eliminate that authority.
Other AG opinions on airport bylaws. AG Opinions 2006-137, 2003-166 address airport bylaws under § 14-362-109.
Citations
Statutes:
- A.C.A. § 14-362-101 et seq. (Arkansas Regional Airport Act)
- A.C.A. § 14-362-109 (board authority: bylaws, contracts, leases)
Other AG opinions referenced:
- 2006-137, 2003-166
Source
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