THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
This action will allow Delta to continue to operate its air cargo handling operation at FLL.
On June 21, 2005 (Item 3.B), the Board approved a Cargo Building Lease Agreement between Broward County ("County") and Delta allowing the airline to occupy 10,000 square feet of the County-owned cargo building at FLL to conduct its air cargo operations for a term of five years, effective upon Board approval and terminating on the last day of the fifth (5th) lease year.
On September 27, 2011 (Item 63), the Board retroactively approved Amendment No. 1 to the Cargo Building Lease Agreement between the County and Delta to extend the term for an additional five years, terminating on June 30, 2015.
On October 7, 2014, negotiations on a new Cargo Building Lease Agreement began with Delta and the three other cargo building tenants, Southwest Airlines ("Southwest"), United Airlines, Inc. ("United"), and Cargo Airport Services. During this negotiation period, the existing Cargo Building Lease Agreements expired on June 30, 2015. Since that date, Delta has been operating at the cargo building as a holdover tenant and paying applicable rent.
On June 3, 2015, Southwest agreed to be the coordinator of the negotiations representing Delta and United. As there were two other air carriers (Southwest and United) operating from the cargo building, as well as a non-air carrier (Cargo Airport Services), every effort was made by the County to maintain the new Cargo Building Lease Agreements as similar as possible. Delays in the negotiations were caused by discussions relative to insurance requirements and the County’s required legal provisions. All the issues have been resolved between all the parties involved. Occupancy of the space and financial obligations have gone uninterrupted and Delta remains in good standing.
United notified the County of its intention not to renew the lease. On September 15, 2016, (Item No. 3), the Board approved a new Cargo Building Lease Agreement with Southwest and then, on October 18, 2016, (Item No. 3), with Cargo Airport Services.
The proposed new Cargo Building Lease Agreement with Delta will provide for the use of a cargo bay, specifically Bay 1, measuring a total of 10,000 square feet and 13,648 square feet of adjacent ramp area in the County owned cargo building facility. The term is for five years commencing on execution on behalf of the Board and terminating on the last day of the fifth (5th) lease year.
The Cargo Building Lease Agreement has been reviewed by the Risk Management Division and approved as to form by the Office of the County Attorney.
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