THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTIONS.
These actions approve an amendment to Azorra’s Lease Agreement, consent to a leasehold mortgage, and approve a Memorandum of Lease.
On December 9, 2014 (Item No. 57), the Board approved the Agreement of Lease ("Lease") for a term of 31 years, terminating on December 31, 2045. The Lease further provided that Azorra would expend a minimum capital investment of $10,000,000 on a 25 acre Development Parcel located on the west side of Fort Lauderdale-Hollywood International Airport ("FLL"). The Lease permits Azorra to occupy their current parcel of approximately eight acres located on the north side of FLL to provide fixed base operation services until the construction on the development parcel of the leased premises ("Development Parcel") is completed. Once the Development Parcel is complete, the remainder of the leased premises located on the north side of the Airport ("Current Parcel") reverts back to the County.
On October 25, 2016 (Item No. 2), the Board approved the First Amendment to the Agreement of Lease to extend the term for an additional year and to modify certain terms and conditions of the lease. The First Amendment allowed the Broward County Aviation Department ("BCAD") to use the Development Parcel and provided the necessary time to address a shortage of over-flow parking spaces during the holiday season, allowed for construction contractor parking and the relocation of the Airports bus operation.
Motion A
The proposed Second Amendment will amend the Lease Agreement to extend the term for one additional year and reflects the period of time BCAD used Azorra’s Development Parcel to complete or relocate the holiday parking shortage, the construction contractor parking, and full relocation of the bus operation. Such use has now ceased, and Azorra is ready to move forward with construction of the improvements contemplated by the Lease.
The proposed Second Amendment modifies the phasing and the required construction phasing schedule for Phase 1 improvements, to extend the term of the Lease one additional year to the 33rd Lease Year, and to extend the commencement of the annual rent on the Development Parcel to on or before the first day of the 7th Lease Year, as well as extend or modify other dates in the Lease to permit the completion of the construction.
Motion B
The Consent to Leasehold Mortgage authorizes Azorra to mortgage the leased premises with a not to exceed amount of $3,150,000 to finance the buyout of a member of Azorra Aviation, LLC, and to permit the mortgage to be recorded in the Official Records of Broward County, Florida, after Board approval.
Motion C
The Memorandum of Lease Agreement ("Memorandum"), provides notice to any interested person as to the existence of the Lease and permits the Memorandum to be recorded in the Official Records of Broward County, Florida, after Board approval. The Memorandum sets forth the term of the Lease and the legal description of the leased premises.
BCAD recommends approval of these modifications to the Lease in order to mitigate the impacts caused by the use of the Azorra Development Parcel for parking shortage, contractor staging and the de-commissioning of the bus operation.
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