THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
On May 17, 1994 (Item No. 2A), the Board approved an Agreement of Lease ("Original Agreement") between Broward County and NPA, which terminated on December 31, 2011. On June 26, 2012 (Item No. 5), the Board approved an Agreement of Lease ("Second Agreement") between Broward County and NPA, which terminated on June 30, 2017. In anticipation of the Agreement's expiration, Broward County Aviation Department ("BCAD") staff ordered an appraisal to establish the new rental rate on March 21, 2017. The appraisal was received April 6, 2017, and provided to NPA.
A proposed Agreement of Lease ("Agreement") was provided to NPA on April 25, 2017, to allow sufficient time for execution by the Board prior to the termination date on June 30, 2017. On May 1, 2017, NPA advised BCAD that it would not execute the proposed Agreement due to a disagreement over the proposed rental rate as established by the appraisal. NPA advised BCAD that it would like to retain the services of an appraiser in order to resolve the rental rate disagreement which lead to NPA's dismissal of the proposed Agreement.
On May 10, 2017, BCAD advised NPA that without waiving any of the County's rights, the County would not seek an eviction of NPA during the appraisal resolution period. However, pursuant to Section 37(c) of the Second Agreement, any holding over of NPA after the termination of the Second Agreement would be construed as a month-to-month tenancy and NPA would continue to pay monthly rent and any other charges due to the County.
On May 26, 2017, NPA provided BCAD with their independent appraisal which was forwarded to Broward County's Real Property Section for review. The appraisals were within narrow margins and NPA and BCAD were able to come to an agreement regarding the new rental rate. In the interim, BCAD staff became aware of some issues regarding subtenants that have now been resolved by NPA to the satisfaction of BCAD.
The Agreement provides for a total term of six years commencing on date of execution of the Agreement and terminating on the last day of the sixth lease year. NPA is required to expend the sum of $125,000 in improvements to the existing structures on the premises. NPA may seek financing, such as a small business loan, for these improvements. The Agreement does not permit a mortgage to be placed upon the leasehold interest in the premises, however, if the Board approves the Agreement, the Director of the Aviation Department is given the authority to approve the financing upon compliance with the terms and conditions of the Agreement.
This item has been reviewed and approved as to form by the Office of the County Attorney and the Risk Management Division.
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