Broward County Commission Regular Meeting


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AI-26396 2.       
Meeting Date: 09/25/2018  
Director's Name: Mark Gale
Department: Aviation Division: North Perry Airport

Information
Requested Action
MOTION TO APPROVE Agreement of Lease between Broward County and Bobby’s Landing, LLC, for a Fixed Base Operation at North Perry Airport, effective upon Board approval and terminating on the last day of the Lease's 35th year; and authorize the Mayor and Clerk to execute same.

ACTION:  (T-10:57 AM)  Approved, as amended, with Yellow-Sheeted Additional Material, dated September 25, 2018, submitted at the request of the Aviation Department.

VOTE: 9-0.
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") authorizes commercial activities or occupancy of any portion of the Airport.
What Action Accomplishes
Approves a Lease Agreement for Bobby's Landing, LLC ("Bobby's Landing") in order to lease space at North Perry Airport ("HWO") for the purpose of operating a Fixed Base Operator ("FBO") including a maintenance hangar, enclosed T-hangar units, open bay hangars and ramp for  aircraft tie down parking. 
Is this Action Goal Related
Previous Action Taken
None.
Summary Explanation/Background
THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION. 

This action will approve a new Lease Agreement with the current tenant, Bobby's Landing, to continue its operation on its current leased parcel and to permit future development on adjacent parcels.
 
Bobby's Landing leases a total of 16.9 acres of land on the northwest side of HWO and is a full scale FBO. The leasehold is comprised of a small terminal building, two open bay hangars for aircraft maintenance and storage, a fuel farm, a flight school and other pilot and passenger amenities to the flying public using the north ramp at HWO.
 
On November 21, 2006 (Item No. 3), the Board approved the existing Agreement of Lease ("Agreement") with Air Superiority, Inc. On November 15, 2007, the Lease was assigned to Bobby’s Landing. The Agreement naturally expired on November 30, 2016, and was administratively extended under Section 34 (b) of the Agreement. The extension was in place until the Board approved a First Amendment on May 23, 2017 (Item No. 3), to extend the existing Agreement in order to allow time to finalize negotiations for the new Lease Agreement. The proposed new Lease Agreement addresses the redevelopment of the premises and the adjacent parcels, and includes a significant capital expenditure. 

The proposed new Lease Agreement will include a total of 22 acres. Development includes the demolition of the old FBO terminal, maintenance hangars, and aircraft parking ramp, and the construction of new T-Hangars, maintenance hangers, terminal building with office space, fuel farm, and aircraft tie down parking ramp. The minimum capital investment required for the development is $10,000,000. The existing Agreement will be terminated upon the effective date of the new Lease Agreement.
 
The proposed new Lease Agreement has been reviewed and 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:
Annual rent for the first year of the Agreement will be $179,895 or $14,991 per month.

Budgeted Rent for Fiscal Year 2019 was $181,267 or $15,118 per month. The Actual Annual rent is slightly less than budgeted, as budget was prepared prior to finalizing the Agreement.

On the first day of the fourth year of the agreement (Phase I construction complete and existing Parcel A facilities demolished) the land rent will be $191,932 based on the 2017 land rental rate of $.20 per square foot for an estimated total lease area of 959,661+ square feet, but will be adjusted for changes in appraised value between now and the fourth year as described in the agreement.
Attachments
Exhibit 1 - Agreement Summary
Exhibit 2 - Lease Agreement
Additional Material - Information


    

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