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Item C29Meeting Date: January 20, 2016 Department. Airports Bulkitem: Yes -,X,-- No --,- Staff Contact Person* Don DeGraw/305-809-5201 AGENDA ITEM WORDING: Approval "I'll o 1 f - L I e I ase Assumption and Consent between Piedmont Hawthorne Aviation, LLC d/b/a/ Landmark Aviation, a Delaware Limited Liability company (Assignor), BBA US Holdings, Inc. a Delaware Corporation (Assignee), and Monroe County (Landlord) concerning the Fixed Based Operator lease at the Key West International Airport. ITEM BACKGROUND: The County was informed by letter dated December 1, 2015 that the Fixed Based Operator at the Key West International Airport who provides aircraft fueling and general aviation aircraft services in the process of being sold from Piedmont Hawthorne Aviation, LLC d/b/a/ Landmark Aviation to BBA US Holdings, Inc. The FBO will be rebranded as Piedmont Hawthorne Aviation LLC, d/b/a/ Signature Flight Support. The transaction has not yet been completed therefore the lease assumption and consent is contingent upon the transaction closing. The parties are currently scheduled to close on or about January 15, 2016 and have provided the county with an Intent to Sell letter dated 12-1-15 (attached). This Consent of Assignment shall be effective upon the closing of the sale, PREVIOUS RELEVANT ROCC ACTION: January 21, 2015 - Approval of Consent of Assignment of Lease from Island City Flying Service, Inc., to Piedmont Hawthorne Aviation, LLC d/b/a/ Landmark Aviation, a Delaware Limited Liability Company. CONTRACT/AGREEMENT CHANGES4 N/A STAFF RECOMMENDATIONS: Approval. BUDGETED: Yes XX No — # I # REVENUE PRODUCING: Yes XX No AMOUNT PER MONTH $-I Year jI55jQj.P_5_plus Fuel Flow APPROVEDBY: CountyAtty4� OMB/Purchasi1- 'Risk Management DOCUMENTATION: Included -A-- Not Required DISPOSITION: AGENDAITEMW LEASE ASSUMPTION AND CONSENT This LEASE ASSUMPTION AND CONSENT (the "Consent") is made and entered into as of January 20, 2016, by and between Piedmont Hawthorne Aviation, LLC d/bla Landmark Aviation, a Delaware limited liability company ("Assignor'), BBA US Holdings, Inc., a Delaware corporation ("Assignee") and the Board of County Commissioners of Monroe County, Florida ("Landlord'). WITNESSETH: WHEREAS, Assignor and Landlord are all of the parties to the leases, amendments, modifications, addendums, and agreements set forth on Exhibit A (collectively, the "Leases"); and, WHEREAS, the ultimate parent company of Assignor has entered into a purchase agreement to sell the interests of Landmark Aviation to the affiliates of BBA Aviation plc, which is the ultimate parent company of Assignee (the "Transaction"); and, WHEREAS, the operation pursuant to the Leases will be branded Signature Flight Support such that the tenant entity thereunder will be Piedmont Hawthorne Aviation, LLC, d/b/a Signature Flight Support (the "Rebranding"); and, WHEREAS, the Transaction requires the consent of the Landlord pursuant to the Leases and the Assignor and the Assignee desire to execute this Consent to memorialize the foregoing and Landlord desires to consent to the Transaction, all upon the terms and conditions set forth here; NOW, THEREFORE, for valid consideration the receipt and sufficiency of which is acknowledged, the parties agree as follows: 1. Assuniption. Assignee, as the parent company of Assignor following the closing of the Transaction, hereby confirms and ratifies, Assignor shall remain liable and obligated hereby assumes and agrees to pay, discharge and perform in a full and timely manner all of Assignor's liabilities and obligations under the Leases, effective upon the date the Transaction closes. 2. Consent. Landlord hereby consents to the Transaction and Rebranding. Landlord also hereby acknowledges and confirms to Assignor and Assignee that: (i) Assignor and Landlord are all of the parties to each of the Leases; (ii) the Leases represent the entire understanding of the parties with respect to the matters that are the subject thereof, and have not been amended or otherwise modified; (iii) the Leases are in full force and effect in accordance with their terms, which terms have not been further modified; (iv) Assignor has paid to Landlord all amounts due and payable under the Leases to date and has performed all non -monetary obligations under the Leases to date; (v) to Landlord's knowledge, no defaults on behalf of either Assignor or Landlord have occurred and are continuing under the Leases, nor have any events occurred which with the giving of notice, the passage of time or both would constitute defaults under the Leases; (vi) there are no present charges, liens or claims of offset under the Leases; (vii) the address for notices to be sent to Landlord is as expressly set forth in the Leases; (viii) no sums have been deposited with Landlord other than the security deposit as expressly set forth, as applicable, in the Leases; (ix) Landlord has no cause of action against Assignor arising out of any of the Leases, nor to the best of Landlord's knowledge does the basis for any cause of action exist; (x) the terns of the Leases shall terminate July 31, 2036; (xi) the rent under the Leases currently is $13,930.66 ($12,958.75 rent plus $971.91 sales tax) per month; (xii) there are no additional capital expenditures other than those expressly stated in the Leases. 3. Full Fo1•ce and Effect. The Leases shall continue in full force and effect and the Leases are ratified. In the event of a conflict between the terms of the Leases and this Consent, this Consent shall prevail. 4. Binding Effect. This Consent shall not be effective unless and until the transaction between Assignor and Assignee closes. Thereafter, it be binding upon and shall inure to the benefit of Assignor, Assignee, Landlord, and their respective and permitted successors and assigns. 5. Counterparts. This Consent may be executed in any number of counterparts, each of which shall be deemed an original and all of which counterparts together shall constitute one agreement with the same effect as if the parties had signed the same signature page. [Signature Page Follows] K IN WITNESS WHEREOF, the parties Dave hereunto set their hands and seals as of the day and year first written above. (SEAL) ATTEST: AMY HEAVILIN CLERK By:_,, Deputy Clerk Piedmont Hawthorne Aviation, LLC d/b/a By: Name: Title: 0 11,11, M MW OR*. Mrs - corporation By: Mayor/Chairml 9 EXHIBIT A AGREE ENT THIS CONTRACT OF LEASE is made and entered into this C2Qik_ day of , 1994, by and between the COUNTY OF MONROE, STATE OF FLORIDA, a political subdivision of the State of Florida, hereinafter referred to as Lessor, and ISLAND CITY FLYING SERVICE, INC., a corporation organized and existing under the laws of the State of Florida, hereinafter referred to as the Company. b �F r W I T N E S S E T H•co - .® a, i WHEREAS, Lessor owns an airport known as the KV West International Airport located in Key west, Monroe County, State of Florida, hereinafter called the "AIRPORT"; and WHEREAS, the Company is a corporation primarily engaged in commercial aeronautical activities and the general activities of a full service fixed base operation; and WHEREAS, the conduct of quality fixed base operator services as hereinafter set forth is advantageous to the operation of said "Airport" for public airport purposes; and WHEREAS, Lessee desire to obtain certain rights, services and privileges in connection with the use of the Airport and its facilities; and the Lessor is willing to grant and lease the same to Lessee on a non-exclusive basis upon the terms and conditions hereinafter stated; NOW, THEREFORE, for and in consideration of the premises and of the mutual covenants and agreements herein contained, and other valuable considerations, Lessor does hereby grant and lease unto Lessee, and Lessee does hereby hire and take from Lessor, certain premises, facilities, rights, licenses, services and privileges in connection with and on the Airport, as follows, to -wit: 1. PREMISES E SED. The Lessor does hereby lease to the Lessee that space as marked on Exhibit "A", "B" and "C" attached hereto and made a part hereof at the Key West International Airport located in Key West, Monroe County, Florida, in accordance with the terms and conditions as set forth in this Agreement. Parcel A shall hereinafter be referred to as General Aviation Parcel. In space marked on Exhibit "B" shall be referred to as the Fuel Farm Parcel or Parcel "B", and the space marked on Exhibit "C" shall be referred to as the additional General Aviation Parking Apron or Parcel "C". Said parcels shall collectively be referred to as the Demised Premises. 2. USE OF THE AIRPORT. Lessee shall be entitled to use, in common with others authorized to do so, the Airport and appurtenances, together with all facilities and equipment. 3. COMMERCIAL AVIATION USE AND PRIVILEGES. The Company shall have the non-exclusive right in connection with its use of the lease premises and subject to the conditions provided in this Lease Agreement and/or contained in the Monroe County Minimum Standards for Fixed Base Operators, as amended from time to time, to engage in the following commercial aviation activities: a. The unloading and loading of aircraft in any lawful 2 activity as incidental to the conduct of any services or operations outlined in this section. b. The maintenance, storing and servicing of aircraft which shall include overhauling, rebuilding, repairing, inspecting, licensing, flying, purchasing and selling including parts, equipment and accessories thereof. C. The sale of aircraft fuels, lubricants and propellants at the Airport. The sale of said fuel, lubricants and propellants at any locations shall include the right to use vehicles necessary for the servicing of aircraft provided they are operated in accordance with reasonable rules and regulations established by the Lessor. d. The operation of a business of buying and selling new or used aircraft, aircraft parts and accessories thereof and aviation merchandise and equipment of all descriptions either at retail, wholesale or as a dealer or distributor. e. The rental of aircraft. f. The operation of air transportation and/or charter services for the transportation of passengers, cargo and mail. g. The operation and sale of air taxi, ambulance and sightseeing services. h. The operations and sale of aerial surveying, photographic and mapping services. i. The operation of flight instruction services in accordance with Federal Aviation Administration standards. M j. The maintenance of coin -operated vending machines on the leased premises. k. Any other aeronautical activity, of any category, permitted by the Minimum Standards for Fixed Base Operators, as amended from time to time, upon the conditions stated therein. If Lessee desires to engage in a legitimate aeronautical activity not provided for in the Minimum Standards for Fixed Base Operators, it shall apply in writing to the Lessor for an amendment to such Standards, and such standards may be amended to allow, with appropriate conditions, any legitimate aeronautical activity which will not be adverse to the public interest or the safe and efficient operation of the Airport. 4. GENERAL RIGHTS AND PRIVILEGES The Company shall enjoy the following general non-exclusive rights on the Airport premises subject to the conditions provided in this Lease Agreement and/or contained in the Minimum Standards for Fixed Base Operators, as amended from time to time: a. The general use of all public facilities and improvements which are now or may hereafter be connected with or appurtenant to the Airport to be used by Company for the general aviation commercial activities contemplated hereunder. For the purpose of this Lease Agreement public airport facilities shall mean all necessary landing area including but not limited to approach areas, runways, taxiways, aprons, aircraft parking areas, and all roadways, sidewalks, navigational aids, lighting facilities or other public facilities appurtenant to the Airport. Such use of 4 public facilities by company shall be in all ways and at all time subject to control by the Monroe County Director of Airports or acting Airport Director, as well as all applicable laws and Federal Aviation Administration rules and regulations. b. The right of ingress to and egress from the demised premises over airport roadways including the use of common used roadways subject only to such reasonable rules and regulations as may be established by the Lessor and its Director of Airports. C. The right to install, operate and maintain, repair and store on the leased premises all equipment necessary for the conduct of Company's business, including identifying signs which shall be subject to the written prior approval of the Lessor in the interest of safety and convenience of all concerned, which approval shall not be unreasonably withheld. d. The use in common with others of the public airport parking area for automobiles and/or aircraft subject to revenues imposed generally, control by the Director of Airports and all applicable laws and Federal Aviation Administration rules and regulations. e. The Company shall not exercise any rights or privileges described in this Section of this Lease Agreement in any manner which, in the opinion of the Director of Airports, restricts in any way the exercise of the same rights by others. Company shall use its own leased premises, whenever practical and feasible, for automobile and aircraft parking. 5. MINIMUM REQUIRED SERVICES AND INVESTMENT. As part of the 5 consideration hereunder, Company shall, when and as requested, provide at a minimum those services, facilities, and functions required by the Minimum Standards for Fixed Base Operators, as amended from time to time, as conditions of each aeronautical activity engaged in by Company. 6. TERM._ This Agreement shall be binding upon execution and the term and rents hereunder shall commence on January 1, 1994 and terminate on December 31, 2004. The Company shall have the option to renew this Lease for two (2) additional five (5) year terms on the same terms and conditions as contained herein with the exception of the base rent for Parcel A which shall be redetermined pursuant to Paragraph 42 hereof. 7. RENT. The lease amount agreed to herein may be adjusted annually in accordance with the percentage change in the Consumer Price Index (CPI) for Wage Earners and Clerical Workers in the Miami, Florida, area, and shall be based upon the annual average CPI computation from January 1 through December 31 of the previous year. Base Rent for Parcel A shall be computed at the rate of 11 cents per square foot per year for the 5.97 acres (260,053 sq. ft.) of land leased pursuant to this Agreement, less the acreage used as county easements. The Base Rent shall be 44 cents per square foot per year for the 5,625 square foot or 75 " x 751 tract of land known as the Fuel Farm as designated on Exhibit "B". The Base Rent for the additional General Aviation Parking Apron shall be .11 cents per square foot per year for 35,955 sq. ft. 6 a. Regardless of the percentage increase in the National Consumer Price Index, the monthly rental payable hereunder shall be redetermined every year in the same manner as provided in the first paragraph of Section 7. 8. FUEL FLOWAGE FEES.. Lessor shall be entitled to collect, and Company agrees to pay as additional consideration under the Agreement, as amended by any future Addenda, all fuel flowage fees as are imposed generally by the Minimum Standards for Fixed Base Operators, as amended from time to time. The fuel flowage fee shall be Six Cents per gallon upon the effective date of this Lease Agreement and shall be paid by the fifteenth (15th) day of each month for each gallon of aircraft fuel received or bought by the company at the Airport during the preceding month, less the number of gallons pumped that month into aircraft exempt from fuel flowage fees pursuant to agreement with the Lessor. An investment credit of one Cent per gallon shall be allowed to the Company until such time as the cumulative investment credit has reached the Company's investment which was necessary to initially bring the tanks and facility into compliance with FDEP and.EPA standards. The remaining dollars credited to Tenant from said percentage investment credit is $34,160.05 as of October, 1993. once the Investment Credit has reached said amount, the Investment Credit of one Cent per gallon shall no longer be available , and the fuel flowage fee shall be Six Cents per gallon. The Company shall provide to Lessor by the tenth (loth) day of each month a report of all aircraft fuel received or bought during 7 the preceding month and all aircraft fuel pumped into exempt aircraft during the preceding month, which report shall include copies of invoices supporting both amounts. Company shall authorize all of its suppliers to furnish to the Lessor any information required by the Lessor concerning fuel deliveries to the Company. The fuel flowage fee will be reviewed every five (5) years and may be increased to compensate for improvements made at the Airport that benefit the Company. 9. MAINTENANCE. The Company shall make its own arrangements for janitorial services including the care of interior and exterior maintenance of the areas and premises to be occupied under this Lease and all operating facilities installed or acquired by it. It shall make all repairs and improvements as may be necessary to maintain and keep same in good condition as at the beginning of this lease period or at the time of installation or modification, ordinary wear and tear accepted. 10. OWNERSHIP OF IMPROVEMENTS. It is agreed that title to all fixed improvements constructed hereafter on the leased premises by the Company shall at all times during the term of said Agreement remain in the Company. Upon termination, whether by expiration of the term, cancellation or forfeiture, said improvements shall become the property of the Lessor. Title to fixed improvements constructed by the Company on the Airport prior to the execution of this Agreement shall remain in the Company until termination. 11. UTILITY CHARGES. The Company agrees to pay for all utilities consumed on the leased premises, as well as its own 8 water, sewer and garbage pickup. Electricity and water consumption shall be metered through instruments fixed in place. Any expense for installation of meters or for connection or similar charges shall be paid by Company. 12. pEACEEUL POSSESSION AND UIET ENJOXMENT. The Company and its customers shall have, at all times the right of ingress, egress and a free access to the premises, and the Lessor guarantees to them the peaceful possession and quiet enjoyment thereof. The Lessor covenants that it will continue to operate the Airport as a public facility. 13. TERMINATION PRIOR TO EXPIRATION. a. The Lessor shall have the right to terminate this lease in whole or in part upon the occurrence of any of the following events: (1) Failure on the part of the Company to pay rent, fuel flowage fees or usage fees when due. (2) Filing by or the final adjudication against the Company of any petition of bankruptcy or the making of any transfer or general assignment for the benefit of creditors which has not been previously authorized by the Lessor. (3) The failure of the Company to perform or keep or observe any of the terms, covenants and conditions which it is obligated to perform, keep or observe under this lease after the expiration of any period of warning or ultimatum given by the Lessor to the Company to correct any deficiency of default. (4) The abandonment of the leased premises or 9 discontinuance of the business operations. (5) The failure of the Company to abide by the terms of any law governing its business or operations under this lease; rules and regulations of the Federal Aviation Administration; rules and regulations established by the Director of Airports; or a direct order of the Director of Airports concerning the movement or parking of aircraft or vehicles anywhere on the Airport or the relative rights, obligations and duties of the Company and other fixed base operators at the Airport. b. In the event of default of any of the above, except for a failure to abide by a direct order of the Airport Director or acting Airport Director concerning the movement or parking of aircraft or vehicles, the Lessor shall give the Company written notice specifying with particularity the nature of the alleged default or other ground for termination. The Company shall have fifteen (15) days from the receipt of said notice to correct any default; and the failure to so correct the default within fifteen (15) days shall result in absolute termination. Upon a failure of the Company to abide by any direct order of the Director of Airports concerning the movement or parking of aircraft or vehicles anywhere on the Airport, the Lessor shall have the authority to move, or to have moved, at the Company's sole expense (including any liability for such acts) , any aircraft or vehicles impeding the safe, orderly, and efficient use and control of the airport premises and to take all other actions the Company has not taken, at the Company's sole expense, which are necessary to effectuate 10 the order or orders not complied with. Company agrees to pay such expenses within ten (10) days after being billed for same. 14. RATES AND PRICES. All rates and prices shall be established by the Company. However, they shall be fair and reasonable and in no case exorbitant and shall be subject to review by the Lessor. Reasonableness and fairness of prices shall be determined by whether they are comparable to prices charged for similar services or products of similar caliber or quality at other airports similarly situated. 15. ASSIGNMENTS. a. Except for sale or assignment of this lease to a bank or lending institution for financing purposes, no sublease, transfer or assignment by the Lessee of this lease or any part hereof or interest herein, directly or indirectly, voluntarily or involuntarily, shall be made unless such sub -lease, transfer or assignment is first approved by the Lessor in writing, which approval shall not be unreasonably withheld. Lessee shall not at any time assign this Agreement or any part thereof, nor sublet all or any portion of the leased premises herein without written approval of County; provided, however, that County shall not unreasonably withhold approval. The prohibitions above stated include assignment of this Agreement to any corporation with which Lessee may merge or consolidate or which may succeed all or any portion of the business of Lessee. b. The Lessor reserves the right prior to any assignment of this lease or any interest herein, or prior to possession by any 11 Mortgagee or Lessor of improvements of the Company through default by the Company, to approve any proposed Assignee, Mortgagee or Lessor of improvements of the Company, (collectively referred to in this paragraph as Assignee), which approval shall not be unreasonably withheld. The Lessor shall consider, in approving such proposed Assignee, the ability of such proposed Assignee to perform the duties required of the Company as set out in this lease, the Financial ability and capacity of such proposed Assignee to meet the obligations requiredby this lease and the general reputation of the proposed Assignee in the area in which the proposed Assignee has done business in the past. No assignment of any kind or nature shall be valid until the same has the prior approval of the Lessor, and when such approval is granted by the Lessor, then, and only then, will the Company be released from the obligations required by this Lease Agreement. c. In constructing improvements on the leased premises the Company may be required to mortgage such improvements. In the event a default should occur in any of the terms of any such mortgage or other agreement encumbering such improvements, the Mortgagee or Lessor of such improvements may have the right and option to take possession of the leased property and all improvements located thereon to the exclusion of the Company. Such right and option shall be subject to the conditions of approval as set forth in Paragraphs 16 a. and b, regarding the assignment of this lease, or possession by Mortgagees or Lessors of improvements. If for any reason said Mortgagee or Lessor does not take possession 12 after the default, the Lessor shall have the right to occupy and use such improvements itself or to enter into any agreement or agreements with other persons or parties as to their uses subject only to the payment of any monies owed and outstanding against such improvements. In the event the Lessor should not elect to so take possession of all improvements located thereon as set forth above, the Lessor or any Mortgagee of such improvements under default as the case might be, shall have the right to remove all of said improvements from the leased property without obligation to the Lessor or damage to the leased property or any other Airport property. 16. EMPLOYEES OF THE COMPANY. The Company shall, if so directed by the Lessor in writing, require its employees who come in direct contact with the public on the Airport to wear a uniform or badge by which they may be known and distinguished as employees of the Company. 17. FEDERAL, STATE AND LOCAL LAW. The Company shall comply with all federal, state and local laws, county and local ordinances, rules and regulations now and hereafter in force which may be applicable to the operation of its business at the Airport, including the Minimum Standards for Fixed Base Operators, as amended from time to time. 18. PAYMENT OF TAXES. The Company shall be liable for any and all taxes, penalties and interest herein assessed, levied or charged by any governmental agency against the Company's tangible personal property situated on the Lessor's premises and ad valorem 13 taxes, if any, assessed against the Company's leasehold interest under this Agreement. However, Company shall not be deemed in default of this obligation pending the outcome of any legal proceeding by it contesting such tax liability. 19. FIRE LOSS - INSURANCE. The Company shall replace any buildings or facilities destroyed by fire and return them in predamage condition so that the replacement will be equivalent in value to the original facilities. Lessor shall permit a proportionate abatement of rent during a reasonable time for the repair or replacement of such buildings or facilities. The Company agrees to supply at its own cost and expense fire and extended coverage of at least 80% of the value of the property and to maintain hangar keeper's liability coverage with insurance companies approved by the Lessor. 20. WORK STOPPAGE OR STRIKE. In the event operations of the Company are substantially curtailed or interrupted for any reason beyond the control of the Company, including employees strikes against the Company or damage to or destruction to the assigned premises by fire or other casualty including war, civil insurrection or act of God, such condition shall operate to relieve the Company of its obligations to pay charges and fees required under this lease by creating a moratorium on payments to the extent of and in the same proportion as Company's operations are curtailed or interrupted; provided, the Company shall at all times use its best efforts to prevent, minimize, or remedy such curtailment or interruption. 14 21. WAIVER OF PERFORMANCE. Failure of the Lessor to insist in any one or more instances upon a strict performance by the Company of any of the provisions, terms, covenants, reservations, conditions or stipulations herein shall not be deemed to have been made, in any instance, unless specifically expressed in writing by the Lessor as an amendment to this lease. 22. NOTICES TO THE LESSOR AND THE COMPANY. Notices to the Lessor shall be sufficient as sent by certified mail, postage prepaid, addressed to the Monroe County Board of County Commissioners, c/o County Administrator, 5100 College Road, Wing 2- PSB, Key West, Florida 33040, and notices to the Company shall be sufficient if sent by certified mail, postage prepaid, addressed to the Company at the leasehold address set forth in this lease or to other respective addresses as the parties hereto may designate in writing from time to time. 23. STANDARDS OF SERVICE. It is expressly understood and agreed as a condition of this Agreement that the Company, its tenants and sublessees, shall conduct a first-class commercial aviation service adequate at all times to meet the reasonable demands for such service on the Airport, in accordance with the Minimum Standards for Fixed Base Operators adopted by the Lessor and as amended from time to time. The Company, its tenants and sublessees agree to conduct said business in a proper and courteous manner, to furnish good, prompt and efficient services at all times and to provide at a minimum and at all times during the term of this lease. In the event the Company fails to perform its duties 15 in accordance with this section and to the reasonable satisfaction of the Lessor, then the Lessor shall so inform Company in writing describing the particulars of the unsatisfactory performance and giving the Company a thirty (30) day period within which to correct the conditions to the satisfaction of the Lessor. In the event the Company fails to correct the default, the Lessor reserves the right to terminate this Agreement thirty (30) days after the written notice to the Company hereunder. 24. INDEMNIFICATIOM. a. The Company agrees to indemnify fully and save and hold harmless Lessor, its officers, agent and employees from and against all loss of damages, claims, liabilities and causes of action of every kind, character and nature as well as costs and fees, including reasonable attorneys fees connected therewith and the expense of any investigation thereof based upon or arising out of damages or injuries to third persons or their property to the extent they are caused by the negligence of the Company, its officers, agents or employees. Lessor shall give the Company prompt and reasonable notice of any such claims or actions and the Company shall have the right to investigate, compromise, and defend the same to the extent of its own interest. b. The Lessor agrees to indemnify fully and save and hold harmless Company, its officers, agents and employees from and against all loss of damage, claims, liabilities, causes of action of every kind or character and nature as well as costs and fees including reasonable attorneys' fees connected therewith and the 16 expenses of the investigation thereof based upon or arising out of damages or injuries to third persons or their property to the extent caused by the negligence of the Lessor. Company shall give to the Lessor prompt and reasonable notice of any such claims or actions, and the Lessor shall have the right to investigate, compromise, and defend the same to the extent of its own interest. C. Company agrees to carry and keep in force comprehensive general liability insurance covering personal injury and property damage and such other insurance as may be necessary to protect Lessor herein from such claims and actions set forth in the above indemnity clause. The limits of said insurance shall be as required by the Lessor's Standards for Fixed Base operators, as amended from time to time. The Company shall furnish the Lessor with proper certification that such insurance is in force and will furnish additional certificates as evidence of changes of such insurance. d. Lessor agrees to carry and keep in force public liability insurance covering personal injury and property damage, and such other insurance as may be necessary to protect Lessor herein from such claims and actions aforesaid. Lessee agrees to carry and keep force such insurance within minimum limits of liability for personal injury in a sum not less than $300,000 for any one person, and $500, 000 for any one accident; and for property damage in a sum not less than $200,000; and Comprehensive General Liability coverage with combined single limits for bodily injury and property damage in the amount of $1,000,000; and to furnish 17 Lessor with proper certificate certifying that such insurance is in force. Lessee shall carry its insurance coverages with insurance companies authorized to do business in the State of Florida. 25. NON-EXCLUSIVE RIGHTS. It is further covenanted and agreed that nothing contained in this Agreement shall be construed to grant or authorize the granting of any exclusive right within the meaning of Section 308 of the Federal Aviation Act of 1958. 26. GRANT AGREEMENTS.- The leased premises and the Airport are subject to the terms of those certain sponsors' assurances made to guarantee the public use of the airport as incident to grant agreements between the Lessor and the United States of America as amended and the Quit Claim Deed from the United States of America, predecessor in title to the leased premises. The parties represent that none of the provisions of this Agreement violate any of the provisions of the sponsors' assurance agreement or said Quit Claim Deed. 27. RIGHT TO DEVELOP THE AIRPORT. It is further covenanted and agreed that the Lessor reserves the right to further develop and improve the Airport and all landing areas and taxiways as it may see fit regardless of the desires or the views of the Company and without interference and hindrance provided, however, that such development or improvement does not adversely affect Company's use and occupancy under this Agreement. 28. NON-DISCRIMINATION. The Company for itself, its personal representative, successors in interest and assigns as part of consideration hereof, does hereby covenant and agree, as a covenant 18 running with the land that: 1. No person on the grounds of sex, age, religion, physical handicaps, race, color and national origin, shall be excluded from participation in, denied the benefits of, or otherwise be subjected to discrimination in the use of said facilities. 2. That in the construction of any improvements on, over or under such land and the furnishing of services thereon, no person on the grounds of race, color or national origin shall be excluded from the participation in, denied the benefits of, or otherwise be subjected to discrimination. 3. Company shall use the premises in compliance with other requirements imposed by and pursuant to Title 49, Code of Federal Regulations Department of Transportation, Subtitle A, Office of the Secretary, Part 21, Non-discrimination in Federally assisted programs of the Department of Transportation, Effectuation of title 6 of the Civil Rights Act of 1964, and as the regulations may be amended. 29. RIGHT TO AMEND.. In the event that the Federal Aviation Administration or its successors require modification or change in this Agreement as a condition precedent to the granting of funds for the improvement of the Airport, the Company agrees to consent to such amendments, modifications or requirements of this Agreement as may be reasonably required to obtain such funds provided, however, that in no event will the Company be required pursuant to this paragraph to agree to an increase in the rent provided for 19 hereinunder; or to agree to a reduction in size of the leased premises or to a change in the use to which the Company has put the leased premises (provided it is an authorized use hereunder) without an adjustment in rent. 30. REGULATIONS OF THE LESSOR..The occupancy and use of the Company of the leased premises and the rights herein conferred upon the Company shall be subject to the Lessor's Standards for Fixed Base Operators, as amended from time to time, and to valid rules and regulations as are or may hereafter be prescribed by the Lessor through the lawful exercise of its powers provided, however, that no such rule or regulation or standard shall be of such nature as to interfere with or cause any derogation or infringement with or upon the rights and privileges herein in this agreement granted to the Company. The Company shall be given advance notice of any proposed change or addition to such rules or regulations and an opportunity to be heard thereon. All the terms, conditions and covenants of this Agreement shall inure to the benefit of and be binding upon he successors and assigns of the parties hereto. 31. CONSTRUCTION OF AGREKNENT.. This Agreement is made in and shall be construed in accordance with the laws of the State of Florida. All duties, obligations and liabilities of Lessor and Company with respect to the leased premises are expressly set forth herein, and this Agreement can only be amended in writing and agreed to by both parties. 32. RECORDING. This Agreement when executed and delivered EE will be recorded in the Public Records, Monroe County, Florida, and cost of said recording shall be paid for by the Lessor. 33. WASTE, The Lessee agrees to commit no waste nor permit any waste to be committed to the leased premises, and Lessee shall keep the premises at all times in a clean condition, free from the accumulation of trash and other waste materials, and shall protect said premises from any and all fire hazards and surrender the same at the termination of this lease in as good condition as they now are, ordinary wear and tear and damage by the elements excepted. The Lessor shall have the right at any time to enter upon the leased facilities for the purpose of inspecting same. 34. NON-INTERFERENCE. The Lessor may at any time during the effective period of this lease enter into contracts with any passenger or freight -carrying airlines for the use of the Airport facilities, or with other fixed base operators, and nothing herein contained shall be construed to preclude the Lessor from so doing, and the Lessee agrees to cooperate with the Lessor and with any and all airlines contracted with by the Lessor for the use of said airport facilities in a manner so as to encourage and not to in anyway interfere with the use of the said Airport facilities by any airline operating there or by other fixed base operators. 35. LITIGATION EXPENSES. In the event either party is required to enforce any of the terms of this Agreement against the other party, the defaulting party shall pay all costs and expenses applicable thereto, including reasonable attorneys' fees, whether initial court, appellate court, or any other proceeding. 21 36. INTERPRETATION. This Lease Agreement shall be interpreted and enforced in accordance with the laws of the State of Florida, and the unconstitutionality or unenforceability of any part hereof shall not affect the enforceability of any other part. 37. OTHER FIXED BASE OPERATORS. The Lessor agrees that it shall comply with the provisions of 49 USC §1718(a)(1), with all FAA rules, and with all other laws,rules or regulations concerning entering into contracts with other fixed base operators on terms more favorable than those herein granted. No lease agreement for a similar fixed base operation on the Airport shall be entered into by the Lessor with any other person, firm, corporation, or partnership on terms which are more advantageous or upon conditions less stringent or at a lower rental for comparable lands and buildings than for those herein devised, in accordance with 49 USC S1718(a) (1) . 38. NON -COMPETITION BY LESSOR. The Lessor agrees that it will not itself provide any of the services herein contracted for, nor otherwise enter into competition with the Company's business herein authorized, unless and until this Agreement has been breached by the Company and has been declared in default and terminated by the Lessor. 39. PARCEL C TERMINATION. The Lessor reserves the right to terminate this lease only as to the additional General Aviation Apron parcel as described on Exhibit "C" with thirty (30) days written notice to Lessee if the Lessor determines that the lease of the additional General Aviation Apron parcel is a violation of FAA 22 directives concerning competition opportunities for additional FBOs . In the event the Lessor exercises the right to terminate this lease as to the space described on Exhibit "C", all other provisions of this lease shall remain in full force and effect except those provisions specifically regarding the space described on Exhibit "C". 40. REDETERMINATION OF RENT FOR GENERAL AVIATION PARCEL DESCRIBED ON EXHIBIT "A". In the event the Company exercises one or both of its options to renew this lease for an additional term as provided in Paragraph 6 hereof the base rent for Parcel A the General Aviation Parcel shall be adjusted to reflect a fair rental on the leased Airport land. Fair rental value is a market based concept established by appraisal then multiplying the appraised value by ten percent (10%) (eg, if the appraised value is $100,000, the annual fair rental value will be $10,000). In determining the fair market value the parties agree that an appraisal shall be based upon usage of the land by a fixed base operator as opposed to the highest and best use appraisal method. It shall be the Company's responsibility to obtain and pay for said appraisal. 41. The Company's right to exercise the two (2) options to renew referred to in Paragraph 6 above shall be conditioned upon the Company making capital improvements during the initial term, i.e., ten (10) years, of this lease in an amount not less than $269,000. These additional improvements shall not be included in the appraised value for Rent Redetermination in Paragraph 42 above. FE IN WITNESS WHEREOF, the parties have hereunto set their hands and affixed their seals on this, the day and year first written above. COU BY: (SEAL) Danny L. Kolhage, Clerk Attest: C • CLERK ISLAND CI IN G SERVICE, INC., BY: PRE NT (SEAL) Attest: L.� _ SECRETARY c:\wpwia\wpdata\1cfg.1se <rfYF e r Wif �.lG` � L Ff/t,iENCY. Auomoy's Office a] ID:3Q5-292-4401 JAN 11'94 i1�31 Na•aQ7 P.12 MONROE COUNTYY •p111►�R`�=-�•'i�'� :e'!� t .. ♦• .,f,•� ���,� ,mower 1/f M'• ^�.���a,�_i`ti. �. : .•.•• .42 Sir Alp "' i, �r ". a� • '.l �, G ,j. , jr..�.;✓r�Ir •ter , it �f�+`i f � .: ,�: � � ;_ ,.,,. • � ,. , '� . 1 �lip IdL . 111 9 1 -. yof � .": - • 1, * 'YJ ' � + (•'\ F 1 • .�i 1,.;�;., .. y' T+"^'� i "�f it iy`fti �'�4� . �` \�: y•j I'{a `I•a. '1'.lF �I`• ' AV t" .Q `e ram•!, i�,,r.� ',,,i,•.,. y �• ,r' ter• ii',I We Ln { \ YY '° ' / • It �^�t��rr . a Mom,,! - r " 'f ' •' �.m , 1 'f•1 .. •Y •Y p•,•�•.• . +CFI, i ~tO •!� r 3 ,•' —� ' , ./' • •.. •. • 1 ♦. !w , y . � 1 •� •"•a• qR� a q1r 't ,.w ��. ��i• •�1+• � �i 1�-. 1 �: .1.! •� t�. �1`j' �.h�'•". 1r ' � v r � ��yj, 'SR •4 �,�• 1- � i i .a ,� + + �. 1� F •*tea 7 � � t + ;'+fir l�� 1 • 1 _ 11L :L a— ,..+ w �- • {�1 �j ..1,. ~ai t r r r f 1 'ti , _►�..`1.4 •,. j4 et , •y+'t; h .� ..•r• \: ° • ~ '.}, •I iI �' � r w \y �� �4'�,' • 4 • ..� ♦+ •,. _ r k �- }} • al �sl,� 1 � � � y� - w. ;11a . �t .. 1 1\,• • ..� ' ♦' r- �� 'j� �7 • it •„�: ; +� �� ',� � li(� � � �„ `�v. i � `�,.•4 .R, ,�" r f;Yw*•ri, `r r� Y . , � r1 F .. � �� jr a{ • ' ,s • l I �i�M ' id4 ti .• ` �•a�i+ �' .{,;,� !(.-.,y���F�..1 y •�. �• - • • '•�•� ,.�,f `,Y�� Fs, ttr` + r,•a'„�r �•••' •,,. �a`•+�+= • 1. � ,. 10 -.• , v l •� `• • ,� 7F'•� j /' 1 �I►' � •; '+j .'1) 1 ,.. PX�� V � � •IIAH le . • . � r, , ' gd 11 :33 NO.007 PA MONR`OE COUNTY ID�305-292-4 • ' '� ' .. •� . �•,i + slit . ; ` tercel' of land,+r�t5ln, rhT•�!!y? UMMMTU4AL Ail�OR= p�Ir Tty losated on.tire island o! toy Mesta Mbeuroe Ceuwty..' F'1 ride ►eLne -rora varticularly desoribed as follow; j.4.61 ,` t. +!.O0Nwcg it"the'Point of leginnims of KIT WICST'IMISMATION" AIRPO Property, located at the norther curb LL►o o! -.: - + lLooiw+l t Mawlword , Iy1q� M 74 !2' IA and 674. 36 •,. , F. - '�. t•eb ;b#xgre .tl. �•' Asyq Corte of >�atinaere Mlottaaae Momrot ` .. �. aft. at aasd bout boaerelt souleverl=•k.' M 4135142"11 along the proopparty line, df ' viU M • •'' y tMIMSMIiATIOUL A1RPORi !or ♦3i.16 iseC to a ;oif ,aai •'•c ' t��etng she POINT OF 6iCI�1fING off the parcel o[[''I�1as►1'.:: '�• freift%being described; ov. •r4% 511ma ' ;Thence•ran `0 6i 53143"W along the aoutherh Property li�o�of;�:, said XiY AST.1VURMATIM" AIRPORT, fox 2 ..Is leaf to;A1 vv,r '- point on said, southerly. property, line.••. �xr ti : �• �i•� .; , . y a�; • i - • rTheae rvn'Mi12 52' 33"i� ' got. 7l. tli ieet to fa .point -;�� �'•' !S 6259 11 ,91 for: S0.00 leer to a p • •' • i• `'~, . Thencafrun t ' oin.,,de ­40,` _ , 00 *21' 13"li fob 346 01; feet', to a point-,, r r . 7 Thunca tun !i , ,�r+r '-'thence run H 69 38' 46"t salon a liiw 125.00 feet South and i m �r. pnf'allal with the canter lira of TAXIWAY "A", for 550.67 re`ra w ;.`eel to a point. �, . .y ''.+ • 3' r'rt f- -v �Thmic run S •00 21''14"F.' along a line 225„00e feet Westland :'#•parallul with the canter Lire o! TAx1W1Y, L . for 403.6 �� e; v `10.Ater alte a point;: "r �. . I• .. - .a, f:.ra „ r ,,%�rot yeat runS'`89 51,30"i1 for, 101.93 feet' to a'poia4; L •.�C` Thenrw>t ii01�09'26 E for 69.00 fast to a Point;, x ,x `v,= Thonca run -S_ 66 30_,36"W, for 146. 99 feel • to a point; + '! c 'f+'n,erica•'rua'l1 01 09'25"v. for' 50.00 fact, to,a point; Ff#Th, y s`run;S• 88,50`36"H for .50,00� feet�to'A.poinsi,i ene� 5 I-anc t. d , 09120"7 , ,for 109, 55 tact fo1•9point; ' s'�:'� tlw., �deset<!tia/:TMtras ,of ler'}. !7 •vr for r'-,less �>~ Me Out Art.f 7-1 �• . •�. • Ate: ' +�' •'•tip Sa'''•�r- t. •' � Exhibit "A" •:r:. • i rr•• r�7� ,. �. sr ,.�. •• •� ♦ A . tM r MUNRO E COU Q4. o 140 I%L e o EXHIBIT 'B" Fuel Pars only 110) =a7e e 1 4 lritir ,.,•Ju�'cy� .YEYINT CONGTRUCTION AND E[ALOOATIN� Lbw •TRIPE• DC-3 F-2 B i 1000 10 40001 SF•340 4 EMB-1 10 EMB-110 ^tar J " ExIxro coNc BEECHCRAFT 18 +►r���► 7" CARGO APRON. •1 + 44A FEDERAL AIR CARGO xa�RE:• AMERICA t EXIST. GAT f *O CARface B ILDING E PED STRIAN GATL OffICE W1LDW0 ! LUEN i EXHIBIT -C•- - Parcel -C" East General Aviation Ramp »c 2 440 P015F 2_� MONROE COVNTYY ID:305-292-4401 JRN 11'94 11:37 h0.007 P.1S Alffs IAL IM GENLRAi, LI AUIIJTY INSURANCE UQUIREMENTS FOR CONTRACT BETWEEN MONROE COUNTY, PLOR1DA AND E Prior to the comnwncemcnt orwork govented by this contract, the Contractor shall obtain General Liability Insurance. Coverage shall be maintained 111mughout lho lire of the coatraG sari include, as a minimum: • Premises Oneralions • Products and CornpWed Opewions . • Blanket Contractual Liability • Penonal injury Liability • Expanded Definition of properly Damage The minimum limits acceptable shall be: $1,000,000 Combined Single Limit (C5L) If Split limits are provided, the minimum Grails acceptable shall bc: S 500,000 per Peraon $1,000.000por Ocxunrenoe OO S 100,o Property mmage An Occurrence Form policy is preferred. If coverage in provided on a Clahns Made policy, its proviaiolla should include coverage Ibr claims filed on or after the efrcclive date of this contract. to addition, the period for wldch claims may be reported should extend Per a minimum of twelve (12) months following the acceptance of work by the County. The Manrve County Board of County Commissioners shall be named as Additional Insured on all po[Ww issued to aatialy the above requirements. Itid�ni r.,rivo I�e+keio• OL3 NMI JAN 11 `94 10:42 305 292 4401 PAGE.019 MONROE COUNTYY ID:305-292-4401 JAN 11'94 11:36 No.007 F.:S APB U. 1".1 hwi% AIRPORT LIA011.ITY AND IIANGARKEEI'ERS LEGAL WAniuTY INSURANCE REQUIREMENT FOR CONTRACT DL"IVELN MONROE COUNTY, FLORIDA AND ' ""coggn, iozirnsg Mtthrtat thwvtehrnat CeAdonib'rtypraotchrttiosLrciaowbniiptlritabyce t ainnsvI nI 4Ilray+cndgtato1rw itpurerpchaairs.elsaccarnvd)icwmLi.niaainb, itmiaitiayni.ntenane, ,hl0Caio thInsurance namghouttooh;Ieaillryati The minimum limits ofHaWlity shall be $500,000. 63 A&kWt ii" Jwdnx = wxn.t I IKL2 i 6w JAN 11 194 10:42 305 292 4401 PAGE-018 MONROE COUNTYY ID:305-292-4401 JAN 11'94 11:36 N0.007 P.16 Ma U t") WORKLrRS' COMPENSATION INSURANCd REQU1REMIeNTS FOR CONTRACT DE7'WRi;N MONROE COUNTY. FL0111DA AND Prior to the commencement ol'work governed by this roniracl. the CcminwAor shall obtain Workers' Compensation inw imnee with limits sufficient to respond to the applicable state statutes. In addition, the Coniractor shall obtain Employcrie Liability Insurance with limits of not less than: $1,000,000 Bodily Infury by Accident V'000.0W Bodily ury by Disease, policy limits $1.000.000 Uodlly Injury by Diseasq each employee . Coverage shall be maintained throughout the entire term of tine contract. Coverage shall be provided by a company or companies aui horized to transact business in the state of Florida and the companyy or companies must maintain a minimum rating of A -VI, as �gnW by the A.M. Best Company. If Ifthe Contractor has been approved by the Florida's046 Department of Labor. as an autlwrir-cd self - insurer, the County shall rocognibe and honor 'be Contractor's status. Tlrc Contrador may be r uired to submit a Letter ofAulhorizalion Issued by the Depann)aq of WW a Ce+tiiicate Oflnsurance, providing details on the Contractor's Exom Insurance program. Irthc Contractor pstticipates in a soli insurance Rind, a Certificate or Insurance will be requivW. In addition, the Contractor may be required to submit updated financial stataner:ts Arum the fiend upon request f nt the County. It AdN9%Wn* w irK,u�yyd.. #4709.t WC3 r m JAN 11 '94 10:41 3M 292 4401 PAGE.016 MONROE COUNTYY ID:305-292-4401 JAN 11'94 11:35 No.007 P.17 AMU IL 1"S VIEIIIM WAUIIATY r INSURANCIC RIEQUIRRMM.M CONTRACT PQR BC'i'W%EN MONROL COUNTY, FLORIVA AND fp RccosWrIng that the work governted by this contract requirm tim use of vellkies, the Contractor, prior to the cammcncomma of work, shad obtaln Vehicle Liability Insurance. Coverage AA be maintained throughout the lire ofthe contract and include, as a minimum, liablilty coverap for: • Owned, Non -Owned, and F1ired,Vehieles Tlm minimum limits acceptable shall be: $1,000,000 Combined Single Limit (CSL) Irsplit limits are provided, the minimum limits acceptable shall hc: $ 500,000 per Peraon $11000,000per Occurrence S 100,000 Propar#y Dawav The Monroe County Board of County CommiWaaws shall be named ss Additional Insured on all, policies issued to satisfy the above requirements. 1 A&WW*Wly browim 9470.1 VL3 r JAN 11 194 10:41 3W 292 4401 PAGE.017 � Fs�E aMENDMEI� Island City Flying Service, Inc. THIS LEASE AMENDMENT is entered into on the day of , 2002, by and between BOARD OF COUNTY COMMISSIONERS OF M NROE COUNTY, hereafter Lessor, and ISLAND CITY FLYING SERVICE, INC. a corporation, hereafter Lessee. WHEREAS, in a Lease Amendment dated April 18, 2001, a copy of which is attached hereto and incorporated herein by reference, the Lessor agreed to provide to Lessee 92,447 square feet of additional land to Lessee known as the "West Ramp" as shown on EXHIBIT D in exchange for Lessee's agreement to devote the Air Cargo area exclusively to Air Cargo and large general aviation aircraft operations; and WHEREAS, the area of the West Ramp included the access road, which is used by Airport staff and others to reach sites beyond the ramp; and WHEREAS, the parties desire to delete from the lease the road area included In the West Ramp, leaving an area of 56,770 square feet as the West Ramp; now, therefore, IN CONSIDERATION of the mutual promises and it is agreed as follows: 1. Paragraph 3 of the April 18, 2001 lease amendment and modification agreement is amended to read: 3. At such time as Lessor has paved and made ready for occupancy the West Ramp shown on EXHIBIT D, the West Ramp shall be included within the Lease premises, and Lessee shall pay for the foot on 770 square l basis, payable month feet comprising the West Ramp TWENTY-SEVEN CENTS ($0.27) p 2. Except as provided in this amendment, in all other respects, the terms and ans of the original lease remain in full force and effect. e IM WITNESS WHEREOF, � Yr {a. a first above written. ._ A Fikb the parties hereto have set their hands andseals th"ay DANNY L. KOLHAGE, CLERK x � c BOARD OF COUNTY COMMIS"ERA'-' OF MONRFE COUNTY, FLORIiQi�r.. Af By - —�-- eputy Clerk (SEAL) IS Attest: By By — Title Title ]dairICFSA3 =ray r trs�au}�a�v�,.i .� D CITY"NilSERVICE, INC. ~ APPROVED AS TO t O M GAL F N R B T N. DATE r �d Z r— rn v .n C) :jo r*: Q CD Y 1 l 1 Y 1 2. .:..!_ 1 L[ .,. l 1 $ LEASE AMENDMENT is entered into on the _ Zk day of 14 , 2001, by and between BOARD OF COUNTY COMMISSIONERS OF MONROE COUNTY, a political subdivision of the State of Florida, hereafter Lessor, and ISLAND CITY FLYING SERVICE, INC. a corporation, hereafter Lessee. WHEREAS, Lessor and Lessee are parties to a Lease Agreement together with all amendments and modifications thereto (the "Lease"), a copy of which Is attached hereto; and WHEREAS, under the Lease, Lessee presently occupies the site shown on EXHIBIT A and the East Ramp as shown on EXHIBIT B ("East Ramp"); and WHEREAS, Lessor desires that Lessee utilize a portion of the East Ramp (the "Air Cargo area") for air cargo operations, and the Lessee is willing to manage and sublease to air cargo operators the Air Cargo area; and WHEREAS, the Lessor is willing to provide 92,447 square feet of additional land to Lessee known as the West Ramp as shown on EXHIBIT D ("West Ramp") in exchange for Lessee's agreement to devote the Air Cargo area exclusively to Air Cargo and large general aviation aircraft operations; and WHEREAS, the area of the West Ramp exceeds the area of the East Ramp, but because of their respective locations the rental value of the East Ramp exceeds the rental value of the West Ramp; and WHEREAS, as a result of the amendment and modifications hereby authorized, the rent to be received by the Lessor will increase approximately Fifty Thousand Dollars ($50,000.00) (i.e., from less then Twenty-five Thousand Dollars ($25,000.00) to SEVENTY-FIVE THOUSAND DOLLARS ($75,000.00)); and WHEREAS, these modifications and amendments will provide Lessor a fair benefit, and the airport facility will be improved; and WHEREAS, Lessor has an opportunity to obtain federal and state funds for airport improvement for a hangar area and ramp, a portion of which land is now occupied by Lessee under the Lease; and WHEREAS, Lessee is willing to surrender a portion of its existing leased site (shown as Hangars 19 and 20) as shown on EXHIBIT C in order to help facilitate the development of said facility; and WHEREAS, the parties contemplate such a reduction of the leased premises to allow for the relocation of hangars and construction of new hangars pursuant to a future RFP (the "Hangar Development Proposal"); and WHEREAS, there has been some confusion as to which entities and/or airplanes are subject to the County's Fuel Flowage Fee, and the parties desire to clarify same; now, therefore, IN CONSIDERATION of the mutual promises and covenants herein contained and other valuable consideration, the receipt of which is hereby acknowledged, it is agreed as follows: 1. That the recitals contained herein are true and correct and Incorporated herein by reference. 2. The leasehold premises described on EXHIBIT A is hereby deleted and in lieu thereof the property shown on EXHIBIT A-1 is substituted. At such time as Monroe County paves the shaded area shown on EXHIBIT A-1, then Lessee shall begin paying rent at FORTY-ONE CENTS ($0.41) per square foot on an annual basis, payable monthly to the County, for the shaded area. The shaded area is approximately 20,000 square feet. 3. At such time as Lessor has paved and made ready for occupancy the West Ramp shown on EXHIBIT D, the West Ramp shall be included within the Lease premises, and Lessee shall pay for the 83,407 square feet comprising the West Ramp TWENTY-SEVEN CENTS ($0.27) per foot on an annual basis, payable monthly. 4. At such time as all of the necessary plans, permits and other conditions precedent to the implementing of the Hangar Development Proposal have been approved, and the consent of no fewer than 100% of all existing hangar tenants within the Hangar Development Proposal boundaries has been obtained, then the property, shown as Hangars 19 and 20 on EXHIBIT A-1, shall be deleted from the Lease and the approximate 44' x 246' strip shown on EXHIBIT D-1 shall be added and the leased premises shall be amended to include the property shown on EXHIBIT C and D-1. Lessee shall then increase its existing rent to FORTY-ONE CENTS ($0.41) per square foot for the property shown on EXHIBIT C and TWENTY- SEVEN CENTS ($0.27) per square foot for the property shown on EXHIBIT D-1 on an annual basis, payable monthly, and the expiration of the Lease shall be extended to the same expiration date as the expiration date under the Lease entered into pursuant to the Hangar Development Proposal. S. In addition to the other rent due Lessor, Lessee shall pay to Lessor monthly as additional rent Ten Percent (10%) of the gross rents on ramp fees received by Lessee from all sublessees and tenants engaged in air cargo and like operations on the East Ramp. Lessee shall provide Lessor monthly with backup documentation sufficient for Lessor to verify Lessee's gross receipts from such air cargo and like operations. 6. The exemption for the fuel flowage fee shall only be applicable to aircraft operated by airlines providing regularly scheduled service to Key West International Airport, and to aircraft owned or operated by Island City Flying Service. By way of illustration and not exclusion, the airplanes operated by Seaplanes of Key West, an affiliate of Island City, shall be exempt. NESS WHEREOF, the parties hereto have set their hands and seals the first above written. BOARD OF COUNTY COMMISSIONERS L. KOLHAGE, CLERK SF MONROE COUNTY, FLORIDA By uty Clerk Mayor/Chairman (SEAL) Attest: By Title �t jdairportIUSA LL- L,, j C C3 Q :_ ISLAND CITY FLYING SERVICE, INC. By Title 3-30-2001 9:24AM FROM KEY WEST INTL- AIRPOR 305 292 3578 R.2 P. w wow 1 o►irr .. Y c 1 `I�WN7im,IM \!N\ 3-30-2001 9:25M FROM KEY WEST INTL AIRPOR 305 292 3578 P. 4 I z 0 13 Z1. 7v, 10 17M N Fir myo mor-';= 1.0 3-30--2001 9 : 26AM z« FRD4 KEY WEST INTL AIRPOR 305 292 3578 d s _m x x La P_ 6 s 3-30-2001 9;27AM FROM KEY WEST INTL AIRPOR 305 292 3578 P_ 7 j I ZO ,£Z£ a �1 ~ •o N /1 `J �•~ J^� � f na} W A _m W t