THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
This action will approve a new Agreement of Lease between the County and Airside ("Agreement"). The Agreement provides for additional land and term to enable Airside to further develop the premises and construct a new aircraft hangar of approximately 29,000 square feet.
On June 1, 1999 (Item No. 46), the Board approved an agreement of lease with Lynxs Ft. Lauderdale Cargoport, LLC ("Lynxs") to construct, maintain and operate an air cargo facility with a term of 20 years, commencing on June 1, 1999 through May 31, 2019, with the option to extend the agreement for up to two additional periods, an additional four-year period and an additional five-year period.
On June 27, 2000 (Item No. 5), the Board approved Amendment No. 1 to the agreement to provide reimbursement by the County to Lynxs of approximately $41,000 for the construction of duct banks and the installation of transmission and control cables and instrument landing system critical area boundary signs.
On July 29, 2008, the Director of Aviation approved two extensions of four years and five years, respectively, pursuant to Section 3(b) of the agreement. The concurrent extension of both the four and five year periods extended the agreement termination date from May 31, 2019, to May 31, 2028.
On June 8, 2010, (Item No. 6), the Board approved Amendment No. 2 to the agreement which provided for modification of the premises, permitted uses of the leasehold property, environmental provisions and insurance requirements, and for an adjustment of rent based on an appraisal of fair market value on the improvements at the end of the amortization period, June 7, 2020.
A summary of the terms and conditions of the proposed new Agreement is provided below:
- The Agreement terminates the existing agreement of lease between County and Lynxs dated June 1, 1999, as amended.
- Adds approximately 27,121 square feet of land to the existing premises for a total of 489,534 square feet of leased space.
- A term of 22 years, subject to the proposed hangar development being completed within the initial two years of the term. Otherwise, the County can reduce the term of the Agreement back to the initial agreement termination date of May 31, 2028.
- The Director of Aviation is authorized to execute the amendment to remove the additional land from the Agreement and reduce the term, if applicable.
- Airside must invest approximately $5,000,000 with the construction of a new aircraft hangar of approximately 29,000 square feet within two years of the effective date.
- Airside must pay fair market value for the existing facilities starting June 2020.
- Airside must post a construction security deposit with the County as security for the development requirements in the amount of $500,000 in the form of letter of credit or cash.
- In the event Airside fails to spend $5,000,000 or complete the development, the County may retain the construction security deposit as liquidated and agreed-upon damages accordingly.
The proposed Agreement has been reviewed as to form by the Office of the County Attorney and the Risk Management Division. Signature pages and Exhibits A-1 and A-2 for the Agreement will be forthcoming and will be noted in the Monday Night Memorandum.
|