THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
This action will reimburse Spirit Airlines ("Spirit") for expenses related to Airline Liaison Office ("ALO") consultant services incurred by the Airline in support of the development and activation of the new Terminal 4, Concourse G.
On September 27, 2011 (Item No. 62B) the Board approved a Signatory Terminal Building Lease Agreement ("Signatory TBLA") between Broward County and Spirit to lease Type 1, 2, 3, and 4 Space for a total of 47,893 square feet in Terminal 4. The Agreement commenced on October 1, 2011, with an expiration on September 30, 2016.
On September 27, 2012 (Item No. 47), the Board retroactively approved the First Amendment to the Signatory TBLA to add 314 square feet of additional permanent space in Terminal 4 to support Spirit's operations.
On September 27, 2012 (Item No. 48), the Board retroactively approved the Second Amendment to the Signatory TBLA, effective on June 1, 2012 and continuing through December 31, 2017, related to ALO consulting services incurred by the Airline in support of the development and activation of the new Terminal 4, Concourse G.
On October 28, 2014 (Item No. 6B), the Board approved the Third Amendment to the Signatory TBLA between Broward County and Spirit to extend the term of the Lease through September 30, 2026.
On July 13, 2016, the CEO/Director of Aviation approved the Fourth Amendment to the Signatory TBLA between Broward County and Spirit to update Spirit’s leased space in Terminal 4.
The establishment of an ALO serves to coordinate the interests of all Signatory Airlines operating at Broward County's Fort Lauderdale-Hollywood International Airport ("FLL") related to the development and activation of Terminal 4, Concourse G, as part of the Terminal 4 Gate Replacement Project. The ALO provides a common point of contact for the Airport and Airlines, and facilitates the constructive working relationship necessary to address many of the complex operation and integration issues in the development and activation of Concourse G. Other Airports that have used ALO services for various projects include: Detroit Metropolitan Wayne County Airport, Miami International Airport, Denver International Airport and San Francisco International Airport.
The proposed Fifth Amendment to the Signatory TBLA ("Fifth Amendment") will extend the existing ALO Consultant Services Agreement until December 31, 2018, and add an additional $250,000 to the previously approved amount of $3,208,085, totaling $3,458,085. The ALO Consultant Services Agreement is being extended due to the delays in the Terminal 4 project which will go beyond its current termination date of December 31, 2017. This will enable the project to have continued coordination with the Airlines during construction.
As part of the proposed Fifth Amendment, Broward County will reimburse Spirit for approved costs incurred between June 1, 2012 and December 31, 2018, in an amount not-to-exceed $3,458,085. These expenses were approved by all Signatory Airlines at FLL and will be paid from the Terminal 4 Gate Replacement Project budget. The reimbursement amount paid by Broward County was built into the cost of the Terminal 4 Gate Replacement Project, which is paid by the Signatory Airlines.
The remaining terms and conditions of the Signatory Terminal Building Lease Agreement will remain the same.
The proposed Fifth Amendment was reviewed and approved as to form by the Office of the County Attorney and the Risk Management Division.
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