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Item C09C oun t y of Monr ELj » °o � i� G�, � BOARD OF COUNTY COMMISSIONERS � Mayor David Rice, District 4 The Florida Ke s lv ', y f i I w; \ Mayor Pro Tern Sylvia J. Murphy, District 5 ; ,= _ :' j Danny L. Kolhage, District 1 George Neugent, District 2 Heather Carruthers, District 3 County Commission Meeting December 13, 2017 Agenda Item Number: C.9 Agenda Item Summary #3676 BULK ITEM: Yes DEPARTMENT: Airports TIME APPROXIMATE: STAFF CONTACT: Donald DeGraw (305) 809 -5200 none AGENDA ITEM WORDING: Approval of 1st Amendment to Lease Agreement with Federal Express Corporation (FedEx) changing the 8,842 square foot ramp space (aircraft apron) adjacent to the air cargo building from exclusive lease space to preferential use so that the ramp will be eligible for A.LP grant funding for the Commercial Ramp Rehabilitation Project at the Key West International Airport. ITEM BACKGROUND: The County is in the process of completing the commercial ramp rehabilitation project at the Airport. In order for the 8,842 square foot ramp (aircraft apron) presently leased to FedEx to be eligible for A.I.P. grant funding the county has to be in control of the ramp space. To effect this the original lease must be amended changing the ramp space from an exclusive FedEx space to a County controlled space with FedEx being granted preferential use when not otherwise needed by the County. Rent for the ramp space for Year 4 (October 1, 2017 — September 30, 2018) and Year 5 (October 1, 2018 — September 30, 2019) will be reduced by 50% of the original rent. PREVIOUS RELEVANT BOCC ACTION: On March 18, 2015, the BOCC approved a five -year lease with FedEx at the Key West International Airport. CONTRACT /AGREEMENT CHANGES: Changes the 8,842 sq. ft ramp lease space from exclusive space to preferential use and reduces rent for the ramp space by 50% for Year 4 (reduction of $893.26) and Year 5 (reduction of $920.06) for a total reduction of $1,813.32. STAFF RECOMMENDATION: Approval. DOCUMENTATION: FedEx 1 st Amendment FINANCIAL IMPACT: Effective Date: 10/01/2017 Expiration Date: 09/30/2019 Total Dollar Value of Contract: Total Cost to County: Current Year Portion: Budgeted: Source of Funds: CPI: Indirect Costs: Estimated Ongoing Costs Not Included in above dollar amounts: Revenue Producing: If yes, amount: Grant: County Match: Insurance Required: Additional Details: REVIEWED BY: Beth Leto Completed 11/28/2017 1:45 PM Donald DeGraw Skipped 11/28/2017 1:12 PM Pedro Mercado Completed 11/28/2017 1:52 PM Budget and Finance Completed 11/28/2017 2:53 PM Maria Slavik Completed 11/28/2017 3:02 PM Kathy Peters Completed 11/28/2017 3:48 PM Board of County Commissioners Pending 12/13/2017 9:00 AM V AMENDMMENT TO LEASE AGREEMENT KEY WEST INTERNATIONAL AIRPORT Federal Express Corporation THIS IIt AMENDMENT TO LEASE AGREEMENT is made and entered into on this 20 day of September, 2017, by and between MONROE COUNTY, a political subdivision of the State of Florida, hereinafter referred to as "COUNTY" and FEDERAL EXPRESS CORPORATION, hereinafter referred to as "FEDEX." WHEREAS, on March 18, 2015 the COUNTY and FEDEX entered into a Lease Agreement (hereinafter "Original Agreement ") at the Key West International Airport, located in Key West, Monroe County, Florida, hereinafter referred to as "AIRPORT," and WHEREAS, the COUNTY is in the process of completing a commercial ramp rehabilitation project, and WHEREAS, the commercial ramp rehabilitation project is being funded by an A.I.P, grant, and WHEREAS, both parties desire that the ramp (aircraft apron) area adjacent to the air cargo building be included in the commercial ramp rehabilitation project, and WHEREAS, both parties desire to amend the lease in order to make the ramp (aircraft apron) adjacent to the air cargo building eligible for the A.I.P. funded convnercial ramp rehabilitation project, NOW, THEREFORE, in consideration of the premises and of mutual covenants and promises hereinafter contained, the parties hereto do hereby agree as follows: SECTION 1. Article 1, Premises. of the Original Agreement is amended to read as follows; 1. Premises. COUNTY does hereby lease to FEDEX, and FEDEX leases from the COUNTY, the Air Cargo building presently located at the Airport, containing two thousand, nine hundred, seventy —three (2,973) sq. ft, of gross building area, and nine thousand, five hundred thirty- five (4,535) square feet of open land adjacent to the building, FEDEX shall receive "Preferential Use" of the aircraft apron measuring approximately eight thousand, eight hundred forty -two (8,842) square feet as indicated on the drawing labeled as Exhibit "A" attached hereto and made a part hereof ( "Preferential Use Apron Area ").For purposes of this Amendment, Preferential Use shall mean that at those times that FEDEX has no aircraft parked on one or more aircraft parking positions in the area, the COUNTY may authorize others to use and assign other aircraft to park in the Preferential Use Apron Area, but in no event shall said use by others take precedence over FEDEX's use, FEDEX shall have the right to locate any number of aircraft within the Preferential Use Apron Area for the purpose of loading, unloading, servicing, or parking aircraft. FEDEX shall not park aircraft in such a manner as would prohibit access, ingress, and egress to and from all aircraft parking positions by aircraft, ramp equipment, and traffic of other airlines. SECTION 2. Article 4, Rentals and Fees, of the Original Agreement is amended to read as follows; Packet Pg. 148 C.9.a 4. Rentals and Fees For each year during the term of this lease, FEDEX shall pay to the COUNTY, rent in the following amounts: a) for the area of two thousand, nine hundred seventy -three (2,973) square feet, in the existing Air Cargo building; Year 1 (Oct. 1, 2014 - Sept. 30, 2015) Three Thousand, Nine Hundred Sixty -Four and 001100 Dollars ($3964.00) per month rent plus applicable sales tax, Year 2 (Oct. 1, 2015 - Sept. 30, 2016) Four Thousand, Two Hundred One and 841100 Dollars ($4,201,84) per month rent plus applicable sales tax, Year 3 (Oct. 1, 2016 - Sept, 30, 2017) Four Thousand, Four Hundred Fifty -Three and 951100 Dollars ($4,453.95) per month rent plus applicable sales tax, Year 4 (Oct. 1, 2017 --- Sept. 30, 2018) Four Thousand, Seven Hundred Twenty -One and 191100 Dollars ($4,721.19) per month rent plus applicable sales tax, Year 5 (Oct. 1, 2018 - Sept, 30, 2019) Four Thousand, Eight Hundred Sixty -Two and 821100 Dollars ($4,862.82) per month rent plus applicable sales tax. b) for an area of nine thousand, five hundred thirty -five (9,535) square feet of open land adjacent to the Air Cargo building, for use for loading, unloading, and parking of automotive vehicles; Year 1 (Oct. 1, 2014 - Sept. 30, 2x15) One Thousand and 001100 Dollars ($1,000.00) per month rent plus applicable sales tax, Year 2 (Oct. 1, 2015 - Sept. 30, 2016) One Thousand, Sixty and 001100 Dollars ($1,060.00) per month rent plus applicable sales tax, Year 3 (Oct. 1, 2016 Sept. 30, 2017) One Thousand, One Hundred Twenty -Three and 601100 Dollars ($1,123.60) per month rent plus applicable sales tax, Year 4 (Oct. 1, 2017 - Sept. 30, 2018) One Thousand, One Hundred Ninety -One and 021100 Dollars ($1,191.02) per month rent plus applicable sales tax, Year 5 (Oct. 1, 2018 - Sept. 30, 2019) One Thousand, Two Hundred Twenty -Six and 751100 Dollars ($1,226.75) per month rent plus applicable sales tax. C) for an area of Preferential Use of eight thousand, eight hundred forty -two (8,842) square feet of aircraft apron adjacent to the Air Cargo building; Year 1. (Oct. 1, 2014 - Sept. 30, 2015) One Thousand, Five Hundred and 001100 Dollars ($1,500,00) per month rent plus applicable sales tax, Year 2 (Oct. 1, 2015 - Sept. 30, 2016) One Thousand, Five Hundred Ninety and 001100 Dollars ($1,590.00) per month rent plus applicable sales tax, Year 3 (Oct. 1, 2016 - Sept. 30, 2017) One Thousand, Six Hundred Eighty -Five and 401100 Dollars ($1,685.40) per 3nonth rent plus applicable sales tax, Year 4 (Oct. 1, 2017 - Sept, 30, 2018) Eight Hundred Ninety -Three and 261100 Dollars ($893.26) per month rent plus applicable sales tax, Year 5 (Oct. 1, 2018 - Sept. 30, 2019) Nine hundred twenty and 061100 Dollars ($920.06) per month rent plus applicable sales tax. Rent for items a, b, and c shall be paid in equal monthly installments, all of which shall be due and payable on or before the first day of each calendar month during which this lease is in effect. Upon the failure of FEDEX to pay any installments when due, the COUNTY will be entitled to charge and collect, and FEDEX will be obligated to pay, a late fee of two percent (2 %) of any such amount, if paid within thirty (30) days of the date due, and five percent (5 %) of any such amount, not paid within thirty (30) days of the date due, Such late fees will be in addition to the amount of rent due. The acceptance by the COUNTY of the overdue rental installment plus applicable late fees shall cure what 2 Packet Pg. 149 C.9.a would otherwise constitute a default by FEDEX under the terms of this lease. The COUNTY, at its option, however, may refuse a proffered overdue rental installment and late fees, declare a default, and proceed according to paragraph 36 of this lease. In the event that any check, draft, or negotiable instrument by which FEDEX has tendered any rent payment is returned to the COUNTY and not honored, whether for insufficient funds or other reason, the COUNTY will be entitled to charge and collect, in addition to any applicable late payment fees as provided above, a fee of Twenty -five Dollars ($25.00) for such dishonored instrument. Such penalty fee shall also be in addition to the amount of rent due. The acceptance by the COUNTY of the rental payment plus any applicable late fee and penalties following the receipt of a dishonored instrument shall cure what would otherwise constitute a default under the terms of this lease. The COUNTY, at its option, however, may refuse any proffered rental installment and applicable late fees and penalties, declare a default, and proceed according to paragraph 36 of this lease. SECTION 3, All other provisions of the March 18, 2015 Original Lease Agreement not inconsistent herewith, shall remain in full force and effect. IN WITNESS WHEREDr, the parties have caused this lease to be executed this of _ , 201 7. (SEAL) BOARD OF COUNTY COMMISSIONERS ATTEST: Kevin Madok, CLERK OF MONROE COUNTY, FLORIDA By By. — Deputy Clerk Mayor George Neugent FEDERAL EXPRESS CORPORATION Witness ti r By Witness Title r r)of e Approved Legal Department AWSTANT COUNTY NEY Hale f { C Packet P9. 150 (xgpaA ql!m luawaaa6y asea o; juawpuawy JS� �O Jenoaddy 9MA3) #uawpuawy;sL xgpaA quawyoel ;y IL Y f A l l IF A, All � ���� .-X -rte — ! .�' al �'�• �e `�. + of � M n A . m F x f 4 CY) cy� 0 f f i f X 6] � tir. i I . I�' f • •` 1 �� ti► .t � L_ CO 4 A C f 1" 0 0- V 41 {I y � t v I•r1 LJ CO C 4 `:. 7 U J ❑7 a E .. W - 0 ! a3 v X U CT C 7 a rn C •+- 1 N o ai F. 0 . y L - am