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Item G4 BOARD OF COUNTY COMMISSIONERS AGENDAITEMS~Y Meeting Date: 04-18-01 Division: County Administrator Bulk Item: Yes No -X- Department: Airports AGENDA ITEM WORDING: Approval to exercise paragraph Vlll. 2. Of the Hanger On Lease Agreement and cancel the lease to accommodate future development at the Marathon Airport and provide the lessee with substitute hangar facilities that are similar to the facilities furnished under the lease. ITEM BACKGROUND: FAA has approved $134,000 to cancel the lease with Hanger's On. The county can use these funds to provide fair market value rent credit for four enclosed Hangers for approximately 7 years. PREVIOUS REVELANT BOCC ACTION: At the March 2001 BOCC meeting, the Board tabled the agenda item to the April Commission meeting to allow for further discussion between Hanger's On and the County Staff. CONTRACT/AGREEMENT CHANGES: This would cancel the contract. STAFF RECOMMENDATIONS: Approval TOTAL COST: see attached BUDGETED: Yes No COST TO COUNTY: REVENUE PRODUCING: Yes No AMOUNTPERMONTH_ Year APPROVED BY: County Atty _ OMB/Purchasing _ Risk Management_ MARATHON AIRPORT MANAGER APPROVAL: 8~ [) ~~~ DIVISION DIRECTOR APPROVAL: James Roberts County Administrator DOCUMENTATION: Included x To Follow_ Not Required_ DISPOSITION: AGENDA ITEM # l-eLj Revised 2/27/01 Summary of Hangers-On Lease Agreement September 21, 1995 - Monroe County and Hangers On, Inc., a Florida Corp. entered into a 20 year Lease Agreement. 1995 Terms of Agreement; Lessee had the right to construct an aircraft hangar on 4,980 sq. ft. Rent payment would be 0.30 cents per sq. ft. Total amount $1,494.00 per year. CPI and Insurance multipliers would be the only additional increases. The original lease provided for no subletting and no assigning. June, 1997 - Monroe County and Hangers On, Inc., rescinded and canceled the 1995 lease and entered into a new 20-year lease effective the day after the date the capital improvements are completed referenced in paragraph III, of the Lease Agreement. As of December 12,2000, capital improvements have not been completed, and therefore the 20-year lease period has not yet begun. 1997 Terms of Agreement; 1. Complete electrical work as described in Monroe County Building Permit #96-2-816. 2. Enclose the hangars in order to provide four independent hangar bays with electric zero tolerance high fold doors on south side and four access doors on north side. Floor space must remain as defmed by the outside of the four vertical support posts. 3. Construct pavement necessary for ingress and egress and access to main taxiway. 4. Install one water line, one meter and four hose bibs. 5. Lessee is responsible for maintenance, excluding facility repairs. Lessor may only sublease or assign the premise for six months or lon2er with BOCC permission. Six months or less, without approval, subject to notifying the airport manager with a list of occupants. RELEVANT INFORMATION 1. FAA approved $134,000 to extinguish lease for the following reasons. a) They agreed with engineers and consultants that the land would be better utilized with the removal of the hangars. b) Removing the hangars and providing a central taxilane would allow for a safer means of ingress and egress to and from the taxiway and hangar development. c) They discourage leases that can be interpreted as providing a diversion of revenue or "sweetheart deals" or have an appearance or can be perceived as providing an unfair advantage to select individuals. The FAA favored extinguishing this lease for these reasons. They are providing the funds with the stipulation that the lease be extinguished and the county not enter into another lease that does not reflect fair market value of the airport property. nNANCIALINFO~TION (Today's dollar, not amortized) 1. FAA funding $134,000 to cancel lease. 2. High estimate of 7 year lease in newest T -hangar development = $134,400 @ $400/month 3. 20-year lease payments on four enclosed T-hangars approximately $384,000 4. Shade hangar lease revenue to county for 20 years. Approximately $192,000. 5. $00.30 sq. ft x 20 years = $ 30,000 ~ ., e.. THIS AGREEMENT Is made by and between Monroe County, a poUffcal subdivisIon of the State of Florida, Whale address '5 500 Whitehead Street, lCey West, Florida 33040. hereafter Lessor. 'and Hangers On, Ine.. a Florfda corporatJon. whose address Is 7900 Gulfsfream Blvd" Marathon. fL 330SO. hereafter Lessee orTenanf. , W , T N E S S E1 H: I.) ~e parties mutually agree to cancel and ~sclnd their lease Agreement entered Into on September 21, 1995, with neIther party owIng any further duty or obligation to the other under the terms of that 1995 Agreement. II.) 1. When the Items descrlb~d In paragraph III are completed. then the Lessor lecues ..( '. to the lessee a parcel of land. and the Improvements on the land, at the Marathon Allport. Marathon. Monroe County, FJorfda. the parce' measuring' 4;980 square feet, hereafter the 'eased premises or the premises. as shown on exhibit A (properly map). ExhIbIt A Is attached to this Agreement and made a pQl't of ft. 2. . The term of this lease is fwenfy 120) years. begInnIng on the day after the date the capital Improvements described In paragraph'" are completed. 3.' The shade hcrngars located on the leased premISes described In exhIbIt A wnl be~om. the property of the Lessor Immediately upon the Parffes' executIon of tMIs Agreement. . .' .t. The Lessor grants to the Lessee a license ot keep Its aIrplanes at the premises' hangar faCility In existence on the effective date of this Agreement while the cc:rpJtal Improvement constructIon process Is ongoIng. The Lessor may raqufr8 the Lessee to move Its alrplan8.1 when the alrpJc:rnesl presence would Interfere wfth constructIon. The flcense begIns on the effecffve date of fhls Agreement and ends when the capftal Improvements requIred by paragraph III are completed and the lease begins. The restrictions on the Lesseels use of the . . .hangar facmtles set forth In paragraph IV also apply to the Lesseels Use of the 'aelaffes under th cense t s subpcvagraph. /Dl.J ~ lil.Ellil 1.~1! .Il14.1J1T I~ , . . ~ ..!. f . .... 1/ ^ D ,'.~t-lCu\LMi)D"''' ""'... -4'~"""~~"",,,,,,,,,,,,_,_ ..... ' ~,JI~J~~~U"~_ .'. . . .... ...." . I I :OUN1Y ATTORNEY* TEL:305-292-3516 Jun 03.97 14:20No~005P.04 the MiamI/Ft. Lavderdale, Florida area, and will be based on the annual average CPI .. . . computation from January 1 to December 31 of the prior year. Th. parties agree that the only , addItional cost not Included above Is a potentIa' .Increase In th~ amount of Insurance. coverage required by the lessee. Shou'd the Lessor require 011 tenants at the airport. for oood cause, to lricrease the amount of Insurance required by the County, such an addlt'onal insurance requirement will be passed on to the Lessee, Hangars On, Ine. Any such Increase wRl be In the same pro rata proportion as to the other tenants of the Marathon Airport at that tIme. VI.) The Lessor hereby covenants and agrees with the Lessee as follows: 1.) The lessee has fhe right to occupy the 'eased premises, 2.) The lessee has reasonable il}gress, egress and access to the leased pI t9mises. 3.) The Lessee may only sublease th~ premIses for longer than six months. or assign Its leasehold. with the approva' of the lessor's Board of Counfy Commlssloners. whose approval may not be unreasonably wlthhe'd. The lessee may sublease the hangar faeDifles for six months or less without Lessor's Board of County Commissioners' approval, but subJecf to notIfying the Lessor's Marathon Airport Manager as provIded In subparagraph VIleS). 4.) The Lessee, on keeping the Covenants and oblfgatlons contained In this Agreement, has the quiet and peaceful enjoyment of the leased premises during the term of this lease Without any Interruptions by the Lessor or by any person(s) claIming through or under -"! the Lessor. VII.) The lessee hereby covenants with the Lessor: , l.J To pay the Lessor the rent at the tImes and In the manner provided' for by this lease. 2.) No mortgage. lien. or encumbrance of any kind may be placed on the leased premises, Including the hanger faclllt'es. t/~ .. COUNTY. ATTORNEY* TEL:30S-292-3S16 Jun 03,97 14:20 No.OOS P.OS 3.) No modlflcatlon(s) to the hClngar facIDtI.. may be made until fhe modfncCltlon(sJ .. are approved by fhe Lessor's Marathon AIrport Manager. .. 4.) The hangar facMtles may only be used for the following: a.) The housing of airplanes not used In commercial servIce or otherwfse used In compefftlon with any service offered for a fee by the Marathon Airport F80. other than the rental of hangar space: b.J The providing of ~are. repair and maIntenance of only those airplanes ihoused at the hangar faclatie~. No other u.e of the hangar faelatle. may be undertaken by the Lessee without the approval of t he Lessor's Board of County Commlsslonen: c.) The temporaty parking of automobffes. ~ 5.) The Lessee wRl provide the Lessor's Marathon Airport Manager with a ffst of the hangar 'aclDfy occupants. and their aircraft. that are approved by the Lessee.. An updated Ost . . must be provIded the Airport Manager within five (5) days from when em occupant or aircraft Is changed. .- 6.) No Improper or unlawful or offensive use may be made of the leased premises. 7.) Lessee must permit the Lessor or fts ergents to InsP"!cf the leased premises at all reasonable times for the purpose of vieWing the condition of !he premises. 8.J The Lessee must obtafn and pay for water and elec:frfcal services to the premises In fts own roame. 9.) The lessee covenants and agrees to IndemnIfy and hold harmless the lessor from aliy and all claims for bodily injury (Including deathJ, personal Injury, and property damage ~. . (Including property owned by Monroe County) and any other fosses, damages and expenses t {Including attomay's. feesJ which arise out of, In connection with, or by reason of services provided by the Lessee or any of Its contractoB; occasioned by the negUgence, anon or other wrongfUl acf or omission of the Lessee or Its contractor(sJ, their employees or agents. this obligation of Indemnlficatfon Is not vitiated bV the Insurance obftgatlons contained In paragraph 10 and exhIbIt 8. RjjJ" ~COUNJY ATTORNEY* TEL:30S-292-3S16 Jun 03.97 14:21 No.OOS P.06 - 10.) Regardl.... of the effective date of this Agreemenl. the Lessee may not OCCUpy . the PlUmlset. under eIther the license er th. lease. until H has oblafnecl the Insurance requlr8d ~ by ExhIbit 8 and Produced adequate proof of IlICh Insurance 10 Ihe CaLmly'. Chcler of RIsk . Management. exhibit B 'S attached to this lease agreement and m~d. part of ft. 11.)' AI the exp/raflon of Ihe Ienn ot fhe lease. fhg Lessee wID qulelfy and p&QCeabIV deliver up possession of the leased premises to the lessor. . VIII.} '.} ThIs lease may be canceled at the discretIon of the Lessor ff: a.) Lessee falls to ffmely pay the rent: b.) Lessee falls to obtain the Insurance raqufred under this Agreement within thirty (30J day. of the effeetlve date of this. Agreement" or allows fhe required insurance coverage to lapte or fall below the mlnfmum required: or ~ --.' c.) Lauee otherwise breaches the ferms of fhfs lease aQreement. . . 2.J The Lessor may also cancel this 'ease If the leased premises are required to accommodate future development at the Marathon Airport or for any other reason delennfnecj by the FM er the Lessor. ~. 1111 delermlner fa cancel the Is.... lIIlder this paragraph, must Provide the lessee with thirty (30) days wrftten noflce before the cancellation becomes effecllve. Lerree must then obanclon and qulelfy and pelJCBClbJy deliver up the .. POSleuion of the Isased Ptem/uIs. lll.euor cancels the lease Qgteement under this Paragraph. . . lessor wDlllOl be labl. fa Lessee fer,any c:tomages _ di'ect er COl1IequenllaJ _ ~ by fhg l_ as the resull of the canceHallon. However. lithe Leaor exercfser 'Ir right to cancieJ the , . lease unc:ler this subparagraph. the lessor mllSl I'IOV/de the lessee w/Ih IUlatlfute hangar facilities that are slmffar to fhe faclnfies furnished under this lease, .' IX.} !he te~t for hlrnsell. hfs I'8ISCnaI 18p/'esen1allve" su""_ In Irrtenm. ancI asrfgns, as Pari at the cOllS/deratlon henlot, do.. h....by COVenant and agree that: 1111\0 ll8I'Son on ... ., the grounds 01 race. color. or noflonal origin shaD be excluded from parlfclpaf/on In. denIed /1. .11 ~(OUNJV ATTORNEV* TEL:30S-292-3S16 Jun 03.97 14:21 No.OOS P.07 the benefits of, or be ofherwlse subjected to dIscriminatIon In the use of saId facUlties: (2) that . In the construction of any Improvements on. over or under such land a'nd the fumllhlng af I Jervlces thereon. no person on the grounds of race, color or national origIn shall be excluded from participation In. denied the benefits of, or be otherwise subjected to discrimInation: (3) that the tenant shall use the premlaes In compliance with all other requirements Imposed by or pursuant to ntle 49. Code of Federal Regulations. Department of Transportation. Subtitle A. io Office of the Secretary, Part 21. Nondiscrimination In Federal/y-asslsted programs of the Department of Transportation - Eff.ctuaUan of ntle VI of the Civil Rights Act of 1964, and as saId Regulations may be amended. ~ That In the event of breach of any of the above nan-discrimination covenants, Airport ..",,, .. Owner shall have the right to terminate ttie lease and to RHnter and as I( saId lease hCld never been made or Issued. The provision shall nof be effective untu the procedures 'of nile 49, Code of Federar Regulatlons,.Part 21, are ~ollowe~ and completed IncludIng exercise or expiration of . appeal rfghts. x.) It shail be a condItion of thfs lease, that the Lessor reserves unto Itself. Tis successOfl and assigns. for the use and benefit of the pubUc. a right of flight for the passage of aIrcraft In the a~ace above the surface of the real property hereinafter described. together with the right to cause In said airspace auch noise as may be Inherent In the operation of aircraft, now known or hereafter used. for navIgation of or mght In the said alrspaoe. ana for use of said airspace for landing on, taking off from or operating on the airport. , . . That the tenant exprassly agrees for Itself, Ifs sUccessors and assigns, to restrict the height of sfructures, objects of natural growth ar:'d other o~stru~tJons on the hereinafter descrlbecf real property to such a height so as to comply wfth Federat Aviation Regulations. Part 77. That the less.. expressly agrees fer Itself. Its successors and assigns. to prevent any use of the hereinafter descrtbed real prOperty which should Interfere with or adversely affect th ., .. opercrtlon or maintenance of the airport. or otherwise constitute an airport hazard. (Jul) *COUNTY ATTORNEY* TEL:30S-292-3S16 Jun 03,97 14:21 No.OOS P.OS "- . XI.) This lease and all provisions hereof are subject and subordinate to the terms and .. condUfons of the Instruments and documents under which the Airport Own.r aCelulred the subject property fram the United States of America, and shall be given only such effect as wUI not confflct Of be Ineonslstent with the tenns and conditions confalned In the lease of said- lands from the Airport Owner, and any exlsffng or subsequent amendmenb thereto and are subject to any crdinances. rules or' regulations which have been , or may hereafter be adopted by the Airport Owner perfalnlng fa the Marathon Airport. XII.) Notwithstanding anything herein contained that may be, or appear to be, to the ~ confrary, It Is expressly understood and agreed that the rfghil granted under this agreement are nonexclusive and the Lessor herein rese~es the right to grant similar prfvneges to another lessee or other lessees on other parts of the Airport. XIII.) This lease agreement Is between the Lessor and the Lessee only. Nothing In this lease may create a contractual relationship with. or any rights In favor of. any third party. XIV.) This lease agreement has be.n carefully reviewed by both the Lessee and the Lessor. Therefore, this tease Is nat to be construed against any party on the basis of authorship. XV.) This lease agreement repnuen~ the parties' ftnal and mutual underltandlng. It replaces any earlier agreements or understandings. whether wriften Dr oraJ. this. lease cannot be modified or replaced except by another signed lease or I.ase amendment. ., .' QJ~ *~OUN~Y ATTORNEY* TEL:30S-292-3S16 Jun 03.97 14:~3 No.OOS P.09 , XVI.) Nothing In thIs lease should be read as mOdifying the applicable stafute of . IImltatlons. The waiver of the breach of any obHgatlon of thIs lease does not waive an.,ther ~ breach of that or any other obUgatlon. XVII.) 'This lease takes effecf on the date of the signature of the last party to sign. IN WITNESS WHEREOF, each party hereto has caused this agraement to b. executed In . H~/NC rw.~ / ~t/ President ..". I . r-J ~Prtnt me' .J,.../-l, " ; .,~C . I n I .' a beri- E: 'Q. p;:l ~~R~? ~~~F M, -- ~- D~ . , Date: 0 (0- \ 8- C\..., (CORPORATE SEAl) AlTEST: ~<O(~~~ _ Date: (;- S-c::r7 aa/con2/hanoarlO2 BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, FLORIDA ~ , I > - :D .. " 0 2J , -f , ~ ~ ~f; 'f ~ I " S; ,t ~: . z . ., '- .. , -. . . . . , ., .. .. .- . . .. zl H ij :r" J . J "I I' , . ..: . I I ~:o f - . J r . " rI !! IJ I H : . .. .. I' JJ " I I" . I! 'I I ~l " .. ' , : L . I' '\ I II , I f' r , ! i' I I J I .1 o. ~I j {I Ii In, ., i . i f '''1 ' , "'1 III ~{Iil It I /1/ i~ , . ";j III · II II iii , f If '. . .... ~ " J: .. .........~... .. .. ~'J:i\,"~ . . ~.~... I " If . . . . .. . . . . .. ~'"'-~ ~~~. . , . .\6' '.'