Broward County Commission Regular Meeting


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AI-26956 5.       
Meeting Date: 06/12/2018  
Director's Name: Mark Gale
Department: Aviation Division: Business

Information
Requested Action
MOTION TO APPROVE Terminal Building Lease Agreement between Broward County and Alaska Airlines, Inc., for the lease and use of Airline Ticket Office space, Baggage Service Office space and Operations space in Terminal 1 at Broward County's Fort Lauderdale-Hollywood International Airport, effective on July 20, 2018, and terminating on July 19, 2023; and authorize the Mayor and Clerk to execute same.

ACTION:  (T-10:24 AM)  Approved.
 
VOTE: 7-0.  Commissioners LaMarca and Ryan were not present.
Why Action is Necessary
Chapter 2, Section 2-40(a) of the Broward County Code of Ordinances requires that the Broward County Board of County Commissioners ("Board") authorize any commercial activities or occupation of any portion of Broward County's Fort Lauderdale-Hollywood International Airport ("FLL").
What Action Accomplishes
Provides for Alaska Airlines, Inc. ("Alaska") to lease space in Terminal 1 in accordance with the provisions of the Terminal Building Lease Agreement between Broward County and Alaska and establishes the payment of rent for the leased space.
Is this Action Goal Related
Previous Action Taken
None.
Summary Explanation/Background
THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.

This action provides for the approval of a Terminal Building Lease Agreement between Broward County, Florida and Alaska ("TBLA") for the lease and use of various areas within Terminal 1 at FLL.

On August 13, 2013 (Item No. 4), the Board approved a Terminal Building Lease Agreement between Broward County and Alaska Airlines, Inc., with a termination date of July 19, 2018. Alaska is a company organized and existing under the State of Alaska and legally authorized to do business in the State of Florida. Alaska operates flights from FLL to various locations within the continental United States on a daily basis.

The proposed TBLA allows Alaska to lease 1,075 square feet of Airline Ticket Office Space (Type 1) in Terminal 1, level 4, 264 square feet of Baggage Service Office space (Type 2) in Terminal 1, arrival level and 156 square feet of Operations space (Type 2) in Terminal 1, Concourse C, arrival level at FLL. The TBLA will commence on July 20, 2018 and shall terminate five years thereafter, July 19, 2023. The TBLA may be terminated at any time by the Board, the CEO/Director of Aviation or Alaska with or without cause, upon 30 calendar days' prior written notice to the other party.

Alaska has posted as security deposit in the amount of $81,573, which is based on three months' rent.

The amounts referenced in this agenda has been rounded to the nearest whole dollar, Alaska payments will be based on actual amount payable under the proposed TBLA. The Agreement Summary Sheet reflects the estimated amount payable.

The proposed TBLA is approved as to form by the Office of the County Attorney and the Risk Management Division.
Source of Additional Information
Mark E. Gale, A.A.E., CEO/Director of Aviation, (954) 359-6199

Fiscal Impact
Fiscal Impact/Cost Summary:
The estimated annual rent from the TBLA is $326,292 ($27,191 monthly) and may be adjusted according to the rates established in Chapter 39 of the Broward County Administrative Code.
Attachments
Exhibit 1 - Agreement Summary
Exhibit 2 - TBLA


    

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