Item C15
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
MEETING DATE: Jan. 162003
DIVISION: COUNTY ADMINISTRATOR
BULK ITEM: YES
DEPARTMENT: AIRPORTS
AGENDA ITEM WORDING: Approval to negotiate with Avis and Dollar Rent A car for extensions to their leaseholds and
concession agreements at Key West International Airport in order for them to make substantial capital improvements to
the facilities owned by the airport.
ITEM BACKGROUND: In approximately 18 months, the leaseholds and concession agreements for Avis and Dollar will
expire. We now own the facilities that they occupy. Both facilities need a lot of work. (paving, drainage, fencing, and
environmental upgrades to the car washing areas). This work. will cost about a half million dollars to complete at each
facility. Both firms have pledged to complete this work. at no cost to the airport or the county in exchange for lease
renewals (see attached letters of intent).
PREVIOUS RELEVANT BOCC ACTION. None on this issue.
CONTRACT/AGREEMENT CHANGES: To be negotiated.
STAFF RECOMMENDATION: Approval to negotiate new agreements and bring them back to the BOCC for review and
approval.
TOTAL COST: Staff Time only
BUDGETED: Yes
COST TO AIRPORT: 0
COST TO PFC: 0
COST TO COUNTY: 0
SOURCE OF FUNDS: N/A
REVENUE PRODUCING: Yes
AMOUNT PER MONTHNEAR: Approximately $520,000
APPROVED BY: County Attorney N/A
OMB/Purchasing N/A
Risk Management N/A
KEY WEST AIRPORT DIRECTOR APPROVAL
~t+
Peter J. Horton
DOCUMENTATION: Included X
To Follow
Not Required
AGENDA ITEM #
C-/U--
DISPOSITION:
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AVIS@
Avis Rent A Car
System, (ne.
We try harder~
2330 N.W. 37th Avenue
Miami, Florida 33142
VIA FACSIMILE (1-305) 292-3578
CERTIFIED MAIL 7000 1530 0004 1642 4409
Tel: (305) 341-0962
Fax: (305) 341-0906
E-mail: dstark@avis.com
DAVID E. STARK, ESe
Counsel and Director of Real Estate
December 23,2002
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Mr. Peter J. Horton
Key West International Airport
3491 S. Roosevelt Blvd.
Key West, Florida 33040
Re: Key West Airport Lease and Concession Agreement
Dear Mr. Horton:
As discussed with Mr. John O'Neill last week Avis Rent A Car is seeking to extend its
lease and concession agreement at least (ten) 10 years in order that it may amortize the
improvements it wishes to make to the property. These capital improvements will cost
approximately $500,000.00 (and will consist of upgrading the current structure, repaving the lot,
new drainage, new fencing and landscaping) and we would need to know that the lease extension
will be in place prior to us commencing construction. If you wish to discuss this matter further,
please feel free to contact Mr. John O'Neill or myself.
My best to you and yours for a happy and healthy Holiday season.
Thank: you for your cooperation in this matter.
Very truly yours,
AVIS RENT A CAR SYS
-=:Da--O
David E. Stark
Counsel & Director of Real Estate
DES/if
cc: John O'Neill, Avis Rent A Car System, Inc.
December 28, 2002
Mr. Peter J Horton
Key West International Airport
3491 S. Roosevelt Blvd.
Key West, Florida 37040
Re-Key West Airport Lease and Concession Agreement
Dear Mr. Horton:
As I discussed with you, Dollar Rent A Car is seeking to extend its lease and concession agreement for a
period of at least 10 years. Dollar is in the preliminaIy stages of planning for capital improvements to our
QT A site, to include new landscaping and fencing, paving and drainage, and rebuilding of the current
structure on the site. Estimated cost would be approximately $500,000. Of course to commit to this
expenditure, we will need to obtain full corporate approval within Dollar , which we are currently pursuing.
In order to make this investment, we would need at least 10 years to amortize it. To move forward in the
planning process and to seek the necessary corporate approval, I would need to know that the extensions
we are seeking for the lease and concession agreements will be in place.
If you need to discuss this further, please feel free to contact me.
Michael Conlon
General Manager
Dollar Rent A Car, Miami
Dollar Rent A Car-Florida
3670 NW South River Dr.
Miami, FL 33142
305-887 -6000
fax 305-894-5068
Worldwide Reservations
800-800-4000
dollar. com