THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTIONS.
These actions will provide for the following: to amend the Lease Agreement to correct the legal description of the leased premises, to allow Diversified to refinance an existing construction mortgage with permanent mortgage financing, to increase the amount of the promissory note from $5,688,858 to a stated amount of $6,525,000 in order to refinance the construction loan used to construct the Broward College facility in New Phase 2 to the leased property at North Perry Airport (“HWO”) and other permitted expenses in connection with the construction of the Broward College facility; and to record a memorandum of lease to revise the premises secured by the mortgage in accordance with Amendment No. 3 to the Agreement of Lease.
On May 24, 2011, the Board approved an Agreement of Lease between Broward County ("County") and Diversified for approximately 12 acres of land on the southeast corner of HWO to operate an aircraft storage facility comprised of T-hangars and box hangars. On May 17, 2012, Amendment No. 1 to the Lease was entered into in order to establish the legal boundaries of the leased parcel pursuant to a boundary survey. On December 18, 2015, Amendment No. 2 to the Lease revised the leased premises, established a new termination date, revised the phasing of the construction by establishing a New Phase 2 and a New Phase 2A, and permitted the construction of a Broward College building in New Phase 2 as an approved use of the leased premises.
Motion A
This proposed action is to approve Amendment No. 3 to the Lease Agreement to correct a scrivener's error in the legal description of the leased premises.
Motion B
Pursuant to Section 18 of the Lease, Diversified must receive the prior written consent of the County to amend any leasehold mortgage. This action permits Diversified to refinance an existing mortgage from a construction loan to permanent financing, and to increase the amount of the promissory note from $5,688,858 to the amount of $6,525,000, to be applied to reimbursement of costs of constructing the Broward College facility and closing costs as permitted in the Lease Agreement.
Motion C
This proposed action is to approve Modification No. 2 to Memorandum of Lease ("Revised Memorandum"). Section 36 of the Lease permits Diversified to record a Revised Memorandum, after Board approval, in the Public Records of Broward County, Florida, providing notice to any interested person as to the existence of the Lease. The Revised Memorandum sets forth the legal description of the leased premises, as revised by Amendment No. 3 to the Lease.
The proposed documents in Motions A-C have been reviewed and approved as to form by the Office of the County Attorney.
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