09th Amendment 08/17/2016 %` /te s AMY HEAVILIN, CPA
sr
CLERK OF CIRCUIT COURT & COMPTROLLER
-`_ - MONROECOUNTY,FLORIDA
DATE: October 13, 2016
TO: Don DeGraw,
Director of Airports
ATTN: Beth Leto,
Airport Business Manager FROM: Cheryl Robertson Executive Aide to the Clerk of Court& Comptroller e A
At the August 17, 2016, Board of County Commissioner's meeting the Board granted approval and
authorized execution of Item C6 Approval of Ninth Amendment of Lease for Grantair Service, Inc., a
Fixed Base Operator (FBO) at The Florida Keys Marathon International Airport. The current lease
----- terminates-enApril 9, 2028, however the FBO intends to invest at least $1.5 million dollars in capital
improvements to rebuild its hangar and office space. If Grantair completes construction of the new
terminal and office space by April 9, 2028, then the termination date of the lease will be extended to
April 20, 2046. In addition the fuel flowage fee will increase from $0.06 to $0.10 per gallon which will
result in approximately $24,000.00 additional fuel flowage revenue.
Enclosed is a duplicate originals executed on behalf of Monroe County,for your handling Should you
have any questions,please feel free to contact me.
cc: County Attorney
Finance
File V
500 Whitehead Street Suite 101,PO Box 1980,Key West,FL 33040 Phone:305-295-3130 Fax:305-295-3663
3117 Overseas Highway,Marathon,FL 33050 Phone:305-289-6027 Fax:305-289-6025
88820 Overseas Highway,Plantation Key,FL 33070 Phone:852-7145 Fax:305-852-7146
ARATHON
JET CENTER
8800 Overseas Highway
Marathon, Florida 33050 July 27, 2016
Please accept this letter as a formal request for authorization and lease amendment to Monroe County
that Marathon Jet Center demolish the existing hangar structure and offices of Marathon Jet Center,
located at 8800 Overseas Highway,apd build a new office, customer lounge and hangar structure on the
same location.
As background, the existing structure was built in 1989 and completed in 1991 as a maintenance hangar
for small aircraft and under the building codes and for the small aircraft market evidenced at that time.
Today, Marathon Jet Center has become one of Florida's preeminent fixed based operators, providing
services to over 4,000 high-end jet and turbine customers annually. In 2013, MJC was named one of the
top 10 FBO's in the United States by FltPlan.com,a prestigious industry award that we are very proud to
have received.
The purpose of replacing the existing structure is twofold:
The entire building is showing evidence of structural deterioration beyond simple maintenance. Beams
supporting the roof are rusted through in multiple locations;wall supports are corroding; and sheet
metal roof and siding requires replacement consistent with the life expectancy of this type of metal
building construction.The extent to Which the engineering requirements for commercial buildings in
coastal locations, including wind loads,has changed,the deteriorated building is inadequate.
The Jet market that we have developed over the past 13 years requires a different quality and type of
structure.The building we would like to replace currently has a 16 ft. high and 50' wide hangar door on
a 140' x 60'structure.The customer lounge has a four-person capacity and the pilot lounge is limited to
six pilots.There is neither room nor provision for a conference room,showers for pilots,or many other
amenities that pilots and owners expect.
The proposed building will resolve these problems by building a 150'x 80'structure, including an 88'
wide and 22' high hangar door,that more than doubles the pilot and owner capacity; upgrades the look
and feel of the facility; and provides all of the amenities expected by this market.We have attached
architectural elevations and a floor plan for your review.
While the location of the hangar will be the same as the existing building,the engineering requirements
for current code will require a complete demolition of the facility.We estimate that the cost of
demolition and new construction will be between$1,500,000 and$2,000,000, investment by Marathon
Jet Center for our exclusive use. Due to the significant investment, MJC is requesting that we have a
minimum of 25 years from date of completion to date of lease termination with the County for the
property and building as depicted in the attached exhibits.
Prior to commencement, Monroe County and Airport Management will have the opportunity to review
final plans and have signoff authority.
Thank you for your consideration.
illiam Ehrhorn
vQ n)
Managing Partner, Marathon Jet Center
NINTH AMENDMENT TO MARATHON FIXED RASE OPERATOR IFBO)AGREEMENT
WITH GRANTAIR SERVICE, INC.
THIS NINTH AMENDMENT (hereinafter "Amendment") to the Marathon Fixed Base
Operator(FBO)agreement(hereinafter`agreement") is made and entered into this 1716 day of August,
2016,by and between MONROE COUNTY,a political subdivision of the State of Florida(hereinafter
"County"), and GRANTAIR SERVICE, INC., a corporation of the State of Florida, (hereinafter
"FBO"or"Grantair").
WITNESSETH
WHEREAS,on the 10th day of April, 1998,the parties entered into the Agreement for a period
of twenty 20 years, which agreement was amended on June 21, 2001, September 19, 2001, July 17,
2002, September 18, 2002, March 17, 2004, September 28, 2005, February 21, 2007 and April 21,
2010 to provide Fixed Base Operations at the Marathon Airport; and
WHEREAS,the FBO terminal building,which includes the hangar and office space, is in need
of significant repairs due to its age;and
WHEREAS, the FRO is proposing to rebuild, enlarge and modernize the FBO terminal in
exchange for extending the lease; and
WHEREAS,a lease extension will allow the Lessee to amortize the costs of reconstruction;and
WHEREAS, ownership of the modernized facility would revert back to the County at the end
of the lease extension; and
WHEREAS, a modernized FBO facility would be of great benefit to the FBO as well as the
County; and
WHEREAS, the FBO has proposed completing the project and obtaining Certificate of
Occupancy by 2021;and
WHEREAS, the FBO is requesting an extension of the FBO lease of 25 years beyond the
expected 2021 Certificate of Occupancy date in order to amortize the costs of construction;
NOW, THEREFORE, in consideration of the mutual promises and covenants set forth below,
the parties agree to amend the original lease as follows:
Section 1. Paragraph 3)of the original lease is amended by revising the following subparagraph to
read as follows:
c) Beginning September 1, 2016, the FBO must pay the County a 10 cents per gallon flowage
fee for each gallon of Avgas fuel sold and a 10 cents per gallon flowage fee for each gallon of let A
fuel sold. By the tenth of each month the NO must truthfully and accurately report to the County the
number of gallons sold and pay the County the fee due based on that number. The FBO shall maintain
all boob, records, and documents directly pertinent to performance under this agreement in
accordance with generally accepted accounting principles consistently applied. Each party to this
agreement or their authorized representatives shall have reasonable and timely access to such records
of each other party to this agreement for public records purposes during the term of the agreement and
for four (4) years following the termination of this agreement. The County, acting through its Finance
Director or other authorized representative,shall have the right to inspect and audit the FBO's books of
accounts and other records directly generated at the Florida Keys Marathon Airport facility or
otherwise pertaining to this agreement. Knowingly furnishing the County a false statement of its
monthly fuel flowage under the provision hereof will constitute a default by the FRO of this agreement
and the County may, at its option, declare this lease terminated. The FBO retains the right to have its
controller or a representative assigned by its controller to be present during any inspection or audit by
the County. Ten(10)business days' notice must be given of intent to audit by the County to allow the
FBO's controller sufficient time to schedule the audit.
Section 2. Paragraph 3)of the original lease is amended by revising the following subparagraph to
read as follows:
d) Subject to the provisions of paragraph 3g) the rent will be adjusted annually on the
anniversary of the effective date of this agreement by the greater of the amount recommended in an
approved rates and charges study or in accordance with the percentage change in the Consumer Price
Index for all urban consumers (CPI-U) for the previous calendar year. In the event of a deflationary
CPI,no adjustment in the rental rates will be made.
Section 3. Paragraph 3) of the original lease is amended by amending and adding the following
subparagraph(s):
g) Beginning with the April 2018 monthly rental cycle,all improvements on the leasehold,
except for the newly constructed corporate hangar, shall be appraised at fair market rental rate. The
appraised fair market rental rate shall then become the rental rate for the leasehold. In the event of a
deflationary appraisal, no adjustment in the rental rates will be made. Thereafter, the rent will be
adjusted annually pursuant to paragraph 3d).
h) Beginning with the April 2028 monthly rental cycle, all improvements on the leasehold
shall be appraised at fair market rental rate. The appraised fair market rental rate shall then become the
rental rate for the leasehold. In the event of a deflationary appraisal, no adjustment in the rental rates
will be made.Thereafter,the rent will be adjusted annually pursuant to paragraph 3d).
i) Any improvements made by the FBO to the premises automatically become the
property of the County upon the termination of this lease.
j) NONPAYMENT OF ANY PORTION OF THE RENT WILL BE DEEMED TO BE A
DEFAULT AND THE COUNTY MAY TERMINATE THE AGREEMENT PURSUANT TO
PARAGRAPH 19.
Section 4. Paragraph 4)of the original lease is amended by adding the following subparagraphs;
a) Pursuant to the terms of the 81h amendment the term of this agreement is extended an
additional 10 years and terminates on April 9,2028.
b) If Grantair completes construction of the new(approximately 9,600 sq. ft)FBO terminal by
April 9,2028 then this lease terminates on April 20,2046. Construction of the new FBO terminal must
conform to the July 2016 Proposed FBO Design attached hereto as Exhibit A.ANY MODIFICATION
OR DEVIATION FROM THE APPROVED PROPOSED FBO DESIGN DATED JULY 2016 MUST
BE APPROVED BY THE DIRECTOR OF AIRPORTS. For purposes of this amendment,completion
2 , I,1 /
of construction shall be deemed to occur upon the date of the issuance of the Certificate of Occupancy.
The intent of this amendment is to incentivize prompt construction of the new FBO terminal and the
Lessor acknowledges the benefit to the Lessee of completing the project as soon as possible in order to
maximize the cost amortization term. Unless otherwise agreed to in writing the planning, fmancing,
commencement and progress of the construction, and all costs related thereto, shall be Lessee's
responsibility however in no event will the termination date be later than April 20,2046.
Section 5. Paragraph 7)of the original lease is amended by revising the following subparagraph to
read as follows:
a) The FRO has the right during the term(s) of this Agreement to maintain a fixed base
operation and has the right to sell aircraft and aircraft engines, parts and accessories, lease aircraft
storage space, operate pilot training service, provide aircraft maintenance and repair service, aircraft
rental and charter flying service, and any other aeronautical service normally furnished by a fixed base
operator. The FBO has the right to sell aviation gasoline and lubricants and to provide aeronautical
services that are compatible with other activities on the airport. Except as otherwise provided for in a
written Agreement or as approved by the Airport Manager, the FBO shall only be entitled to receive
tie-down fees from aircraft parked in the paved ramp area located within the premise's boundaries as
described in Exhibit A. The FBO specifically waives any and all right to tie-down fees or any uses
whatsoever of properties at the Marathon Airport located outside of the above-described premises
except as otherwise provided for in a written Agreement or as approved by the Airport Manager. The
Fib must refrain from either directly or indirectly being involved in any car rentals or other services
that are not related specifically to fixed base aircraft operations.
Section 6. All other provisions of the April 10, 1998 original lease, September 28, 2005 sixth
amendment, February 21, 2007 seventh amendment and April 21, 2010 eight amendment not
inconsistent herewith, shall remain in hill force and effect.
IN WITNESS WHEREOF, each party has caused this Amendment to Lease Agreement to be
ex- -d by its duly authorized representative.
1h
:� -:----r�'L BOARD OF COUNTY COMMISSIONERS
I w, HEAVILIN,CLERK OF MONROE COUNT , FLORIDA
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Proposed FBO Design
July 2016
RALLIED
BUILDING ORDER
STEEL noun,Nemeet n,l.
BUILDINGS Hiller Carbon-Marathon Hanger 06/02/2016
PROJECT LOCATION Cgy/Country CONTACT INFORMATION
Marathon, FL 33050 Hiller Carbon
Wesley Hiller
813-785-3936
Wesley.HillerCcilhillercarbon.corn
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BUILDINGS Hiller Carbon•MarathonHanger 06/02/2016 1 w 1
DIMENSIONS BUILDINGCOCE FBC 2014 DEFLECTIONS
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BUILDINGS Hula Graben-Maralxx Hanger 06m2/2016
PROJECT NOTES
(3)Set of Archer Rod Plans In ConszuNon, stamped&Sealed
(3)Set of Erection Drawings for Construction Stamped&Seared
(I)Sel of Celctallms for Construction Stamped&Sealed
(I)(eger of rerncation for Construction Stamped&S Jed
To aver'steel hagvt a mscnal inease customer agmrs to take de rvery on or before)O1XXu XX)(
Sugpal for Br PerinHanger Door provided by door maMxWa.
Hanger Door BB x 221 6Lea included in the building price
33'x W 5 29'Lean Tu Attaching to the Rev&de Wall or the Hanger
301 a PO Mezzanine in Lean To Includes-Design.Bean.Support Columns Edge Angle 26 ga 516'
Form Decking Joists.and Beam Designed for 9'Concrete(BY OTHERS)110 Clearaee Wrier and above
Mezzanine. Design Loads live Load-120 psi/Dead Loner PO let/Collateral Load-5 pa(/Partition Load .5 psi
Builmre has been quoted using industry standard peactices and matolala Design reµlreinsits a accessories net
specifically noted in this proposal should be censiderel excluded customer sgitied drawings and specicatars
have been used b general reference no guarantee is made that this quote is in total centpfance with these
documents
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