THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
This action will approve an Agreement of Lease with American Flight Training, LLC to continue operating on the existing parcel at North Perry Airport ("HWO") while developing an additional ramp on an adjacent parcel and building a large aviation academy on its current location.
On May 7, 2013 (Item No. 3), the Board approved an existing Agreement of Lease ("Existing Lease") between Broward County and Socata North America, Inc. The Existing Lease was assigned to Wayman Aviation HWO, LLC on March 18, 2015. The Existing Lease naturally expired on January 31, 2018, and has been extended administratively by the Broward County Aviation Department under Section 34(b) Holdover of the Existing Lease. The Existing Lease includes approximately 2.85 acres with a hangar, office space, vehicular parking areas, and paved apron for aircraft parking.
Section 39.3 of the Broward County Administrative Code Section (a) 1 states: “The term of a lease shall be limited to 20 years. The County may consider a longer or shorter term based on the magnitude of investment in airport facilities, prevailing economic conditions in the industry or benefits to the community. However, in no event, shall the lease term exceed thirty (30) years”. Section 39.3 (a) 2., reads in part: “The amortization period for investments in new facilities generally will not exceed 20 years”.
The proposed new Agreement of Lease ("New Lease") with American Flight Training, LLC ("American Flight"), is a 30-year lease term and has an amortization period of 30 years. American Flight is building a large aviation academy at HWO providing flight training for domestic and international students. The Agreement requires a minimum capital expenditure by American Flight of $2,600,000 to construct a new classroom building for flight training on the existing site and construct additional ramp space. The proposed construction will be phased over a period of three years.
The New Lease will include the current 18,000 square foot hangar with classroom and office space, a new 10,000 square foot building for additional classroom space and add an additional 19,000 square feet of undeveloped land adjacent to the property for additional apron for aircraft parking. American Flight is constructing a 10,000 square foot classroom administration building on the Existing Lease to accommodate continued growth.
Under the New Lease, the annual rent paid to Broward County by the Lessee will be $175,717 or $14,642 per month, plus applicable sales taxes. American Flight will be required to update their rent security deposit to an amount equal to three monthly installments of the new rental amount, including applicable sales taxes. The New Lease provides for a total term of 30 years with an effective date commencing on the date of full execution by the Parties.
The proposed New Lease has been reviewed as to form by the Office of the County Attorney and the Risk Management Division. Signature pages for the New Lease will be forthcoming and will be noted in the Monday Night Memorandum. |