Item C06upd atr.�
County of Monroe dBOARD OF COUNTY COMMISSIONERS
Mayor Heather Carruthers, District 3
The Florida Keys Mayor Pro Tern George Neugent, District 2
Danny L. Kolhage, District 1
David Rice, District 4
Sylvia J. Murphy, District 5
County Commission Meeting
August 17, 2016
Agenda Item Number: C.6
Agenda Item Summary #1899
BULK ITEM: Yes DEPARTMENT: Airports
TIME APPROXIMATE: STAFF CONTACT: Donald DeGraw (305) 809-5200
none
AGENDA ITEM WORDING: 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 on April 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.
ITEM BACKGROUND: The FBO terminal building, including hangar and office space, is in need
of significant repairs due to its age. Because of this, the FBO has proposed to rebuild, enlarge and
modernize the FBO terminal at a cost of between $1.5 and $2 million dollars. When Grantair
Service, Inc. completes construction and obtains the Certificate of Occupancy (CO), the termination
of this lease will be extended to April 20, 2046. 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.
Grantair must complete construction and obtain a CO no later than April 9, 2028 otherwise the
existing term will remain in effect and the lease will terminate on April 9, 2028. In no event will the
termination date be later than April 20, 2046.
PREVIOUS RELEVANT BOCC ACTION:
April 10, 1998, the parties entered into the lease for a period of twenty years. This lease 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.
CONTRACT/AGREEMENT CHANGES:
Contract time extension in exchange of Hangar and office space upgrades.
STAFF RECOMMENDATION: Approval.
DOCUMENTATION:
Stamped executed Revised 9th Amendment GrantAir BOCC 8 17 16 (C6) 8 16 16
FINANCIAL IMPACT:
Effective Date: 08/17/2016
Expiration Date: 04/20/2046
Total Dollar Value of Contract:
Total Cost to County: N/A
Current Year Portion:
Budgeted: Yes
Source of Funds:
CPI:
Indirect Costs:
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing: Yes
fuel flowage revenue per year.
Grant:
County Match: N/A
Insurance Required:
Additional Details:
REVIEWED BY:
If yes, amount: approximately $24,000.00 additional
Beth Leto
Completed
08/02/2016 4:44 PM
Donald DeGraw
Completed
08/02/2016 5:12 PM
Pedro Mercado
Completed
08/02/2016 5:13 PM
Budget and Finance
Completed
08/03/2016 8:18 AM
Maria Slavik
Completed
08/03/2016 8:19 AM
Kathy Peters
Completed
08/03/2016 9:31 AM
Board of County Commissioners
Pending
08/17/2016 9:00 AM
NINTH AMENDMENT TO MARATHON FIXED BASE OPERATOR (FB01 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 17`h 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 1 Oth 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 FBO 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 Jet A
fuel sold By the tenth of each month the FBO 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 books, 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 FBO 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 leasebold. 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 8 h 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
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, financing,
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 Apri120, 2046.
Section 5. Paragraph 7) of the original lease is amended by revising the following subparagraph to
read as follows:
a) The FBO 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
FBO 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.
ecti n 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 full force and effect.
IN WITNESS WHEREOF, each party has caused this Amendment to Lease Agreement to be
executed by its duly authorized representative.
(SEAL) BOARD OF COUNTY COMMISSIONERS
ATTEST: AMY HEAVILIN, CLERK OF MONROE COUNTY, FLORIDA
Ii A
Deputy Clerk
ATTEST:
ByV'(✓E�oz
Title A10
By
Title LFb
By
Mayor/Chairman
GRANTAIR SERVICES, INC.
By
Title�-
Kati ERRIC KSON
MY t'.QMMSSION 0 FF244M
EXPIRES &gist 28, 2010
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BOARD OF COUNTY COMMISSIONERS
County of Monroe Mayor Heather Carruthers, District 3
i
�� Mayor Pro Tem George Neugenf District 2
-Me Florida Keys h }, ��� �y
�� Danny L. Kolhage, District 1
David Rice, District 4
w Sylvia J. Murphy, District 5
County Commission Meeting
August 17, 2016
Agenda Item Number: C.6
Agenda Item Summary #1899
BULK ITEM: Yes DEPARTMENT: Airports
TIME APPROXIMATE: STAFF CONTACT: Donald DeGraw (305) 809-5200
none
AGENDA ITEM WORDING: 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 on April 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.
ITEM BACKGROUND: The FBO terminal building, including hangar and office space, is in need
of significant repairs due to its age. Because of this, the FBO has proposed to rebuild, enlarge and
modernize the FBO terminal at a cost of between $1.5 and $2 million dollars. When Grantair
Service, Inc. completes construction and obtains the Certificate of Occupancy (CO), the termination
of this lease will be extended to April 20, 2046. 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.
Grantair must complete construction and obtain a CO no later than April 9, 2028 otherwise the
existing term will remain in effect and the lease will terminate on April 9, 2028. In no event will the
termination date be later than April 20, 2046.
PREVIOUS RELEVANT BOCC ACTION:
April 10, 1998, the parties entered into the lease for a period of twenty years. This lease 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.
CONTRACT/AGREEMENT CHANGES:
Contract time extension in exchange of Hangar and office space upgrades.
STAFF RECOMMENDATION: Approval.
DOCUMENTATION:
Ninth Amendment with Grantair Service, Inc.
FINANCIAL IMPACT:
Effective Date: 08/17/2016
Expiration Date: 04/20/2046
Total Dollar Value of Contract:
Total Cost to County: N/A
Current Year Portion:
Budgeted: Yes
Source of Funds:
CPI:
Indirect Costs:
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing: Yes If yes, amount: approximately $24,000.00 additional
fuel flowage revenue per year.
Grant:
County Match: N/A
Insurance Required:
Additional Details:
REVIEWED BY:
Beth Leto
Completed
08/02/2016 4:44 PM
Donald DeGraw
Completed
08/02/2016 5:12 PM
Pedro Mercado
Completed
08/02/2016 5:13 PM
Budget and Finance
Completed
08/03/2016 8:18 AM
Maria Slavik
Completed
08/03/2016 8:19 AM
Kathy Peters
Completed
08/03/2016 9:31 AM
Board of County Commissioners
Pending
08/17/2016 9:00 AM
#
U.0- .9 r5jil OPT, e existing hangar structure and offices of Marathon Jet Center,
located at 8800 Overseas Highwa4Jd bLfild o a �new ffiiswAw-L%6WAv .• ,ic -•
-g q.,N VNW wj*ta=
same location.
As backerou
Today, Marathon Jet Center has become one of Florida's preeminent fixed based operators, providing
services to over 4,000 high -end jet a�d turbine customers annually. In 2013, MJC was named one of the
have received,
The purpose of replacing the existingl structure is twofold:
The entire building is showing evidence of structural deterioration beyond simple maintenance. Beams
supporting the roof are rusted rou h in multiple locations; wall supports are corroding; and sheet
metal roof and siding requires replac I ment 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. lhtf •
a 140'x 60'structure. T�L-
e r room nor M-Tor a conTerence room, s-lT 5—w—e -rs-fo—rp Hots, or many other
The proposed building will resolve these problems by building a 150 x 80 structure, including an 88'
wid3;r.-nv@'zWAWig�iJr.wW. ilvjlllp*�'
and feel of the facility; and provides all of the amenities expected by this market. We have attached
architectural elevations and a floor pl,an for your review,
While the 1 4
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VnI#1.0,011#IIecot "t,
C C LC IfM V 151,1re Tse. I ue io the significant investment, MJC is requesting that we have a
91 -e. - -# 1. pletion to date of lease termination with the County for the �he attached exhibits,
Prior to commencement, Monroe JJ'X4't
final plans and have signoff authority.
•
WHEREAS, a lease extension will allow the Lessee to amortize the costs of reconstruction; and
maximize the cost amortization term. Unless otherwise agreed to in writing the planning, financing,
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.
Scction 5. Paragraph 7) of the original lease is amended by revising the following subparagraph 1i read as follows:
a) The FBO has the right during the ten-n(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
FBO 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, 1999 original lease, September 28, 2005 sixth
amendment, February 21, 2007 seventh amendment and April 21, 2010 eight amendment not
inconsistent herewith, shall remain in full force and effect.
IN WITNESS WHEREOF, each party has caused this Amendment to Lease Agreement to
executed by its duly authorized representative. I
(SEAL)
ATTEST: AMY HEAVILIN, CLERK
By
Deputy Clerk
I
Mayor/Chairman
GRANTAIR SERVICE, INC.
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PROJECTNOTES
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(3) Set of Anchor Rod Plans for Construction, Stamped & Sealed
(3) Set of Erection Drawings for Construction, Stamped & Sealed
(1) Set of Calculations for Construction, Stamped &Sealed
(1) Letter of Certification for Construction, Stamped & Sealed
To avoid steel, freight or material increase, customer agrees to take delivery on or before XXJXXJXXXX.
Support for Bi-Parting Hanger Door provided by door manufacturer,
Hanger Door W x 27 6-Leaf included in the building price.
30' x W x 24' Lean -To Attaching to the Rear Side Wall of the Hanger.
3U x BU Mezzanine in Lean-'ro - Includes - Design, Beams, Support Columns, Edge Angle, 26 go 9116
Form -Decking, Joists, and Beam. Designed for 4' Concrete (BY OTHERS) 119 Clearance under and above
Mezzanine, Design Loads: Live Load - 120 psf / Dead Load 80 psf / Collateral Load - 5 psf I Partition Load - 5 net
have been used for general reference, no guarantee, is made that this quate is in total compliance with these
documents. I
OFrIONS
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