Item C03BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: April
16,
2014
Division: Airports
Bulk Item: Yes
X
No _
Department: Florida Keys Marathon Airport
Staff Contact Person/Phone #: Don DeGraw 289-6302
AGENDA ITEM WORDING: Approval of a Lease Extension And Amendment for South Shore
Aviation Associates (dba — Marathon General Aviation) to facilitate the construction of a 7000 sq. ft.
enclosed hangar. The lease extension will become effective upon the date of issuance of the new
hangar's Certificate of Occupancy (COO) and the Amendment includes an increase in fuel flowage
fees from 4 cents per gallon to 10 cents per gallon.
ITEM BACKGROUND: On December 19, 2001 the original FBO executed a lease to provide
additional space to build a hangar. Several lease amendments and extensions of time to lease
amendments have followed which required the FBO to submit a conditional use permit by a certain
date or become bound by the terms of a previous lease amendment. On February 28, 2014, a
conditional use permit was submitted to build a 7000 sq. ft. hangar. In order to facilitate the
construction of the new hangar, the FBO is requesting an extension to the existing lease from the date
of the COO for the new hangar and the County has raised the fuel flowage fees 2.5 times the current
rate.
PREVIOUS RELEVANT BOCC ACTION: On April 6, 1998 the County entered into a 20 year
lease to provide FBO services at the Marathon Airport. On December 19, 2001 the FBO's predecessor
executed a lease amendment to provide a hangar and additional ramp space and the amendment
became void when the FBOs predecessor failed to build a hangar within 2 years. On April 15, 2009, the
FBO executed a lease amendment which required the FBO to build a hangar within 2 years. On March
17, 2010, the FBO executed an extension of time to a lease amendment that required the FBO to
submit a major conditional use permit by 9/1/10. On September 15, 2010, the FBO executed a second
extension of time to lease amendment that required the FBO to submit a major conditional use permit
by 3/30/11. On March 16, 2011, the FBO entered into a third extension of time to lease amendment
that required the FBO to submit a major conditional use permit by 3/30/12. On March 21, 2012, the
FBO entered into a fourth extension of time to lease amendment that required the FBO to submit a
major conditional use permit by 3/30/14. On January 14, 2014, a Consent To Assignment was entered
into between Monroe County and Sarasota Coast Investors, LLC (Assignor) / South Shore Aviation
Associates, LLC (Assignee). The conditional use permit was submitted by the FBO on 2/28/14.
CONTRACT/AGREEMENT CHANGES: N/A
STAFF RECOMMENDATIONS: Approval
TOTAL COST: N/A INDIRECT COST:
DIFFERENTIAL OF LOCAL PREFERENCE:
BUDGETED: Yes No
COST TO COUNTY: SOURCE OF FUNDS:
REVENUE PRODUCING: Yes X No AMOUNT PER YEAR - $134,902 plus new Fuel
Flowage Fees
.0't- &V,
APPROVED BY: County Attny: OMB/Purchasing V Risk Managemen it �
DOCUMENTATION: Included X Not Required
DISPOSITION:
Revised T09
AGENDA ITEM #
FIFTH EXTENSION OF TIME TO LEASE AND LEASE AMENDMENT
This Fifth Extension Of Time To Lease and Lease Amendment is entered into this 16th day of
April, 2014, by and between MONROE COUNTY, a political subdivision of the State of Florida,
whose address is 1100 Simonton Street, Key West, Florida 33040 (hereafter COUNTY), and South
Shore Aviation Associates, LLC., d/b/a Marathon General Aviation, a corporation, whose address is
9850 Overseas Highway, Marathon, Florida 33050 (hereafter FBO).
WHEREAS, on April 6, 1998, the COUNTY entered into a 20 year lease (the Original Lease)
with one of the FBO's predecessor in interest whereby the FBO is to provide fixed base operations
service at the Florida Keys Marathon Airport (FKMAP); and
WHEREAS, the original leasehold has been conveyed on more than one previous occasion and
the lease has been assigned to the current owners of the FBO; and
WHEREAS, the one of the FBO'S predecessor in interest executed a lease amendment dated
December 19, 2001 in order to provide additional hangar and ramp space; and
WHEREAS, by its terms, the December 19, 2001 amendment became void when the FBO's
predecessor in interest failed to build a hangar within 2 years of the effective date of the amendment;
and
WHEREAS, a previous FBO predecessor in interest continued to occupy and use the leasehold
parcel as a ramp area on a month to month tenancy which the FBO has continued; and
WHEREAS, on April 15, 2009, the FBO predecessor in interest and the County executed a
lease amendment which required that FBO build a corporate hangar on said parcel within 2 years of
the execution of that new lease amendment: and
WHEREAS, the current FBO desires to build a corporate hangar in excess of 5,000 square feet
which, under County land development regulations, will require a conditional use permit; and
WHEREAS, a conditional use is a prolonged permitting process; and
WHEREAS, the FBO requested that the conditional use permit processing time be excluded
from the 2 year time deadline set forth in the April 15, 2009 Lease Amendment; and
WHEREAS, the County and the FBO predecessor in interest entered into an Extension of Time
to Lease Amendment to allow the conditional use permit process to run its course without penalty to
the FBO; and
WHEREAS, the Fourth Extension Of Time To Lease Amendment required that the FBO
submit a conditional use permit application by March 30, 2014; and
WHEREAS, the FBO did submit a conditional use application on February 28, 2014 and the
FBO has requested additional time to amortize the costs of building the hangar,
NOW THEREFORE, in consideration of the mutual covenants and promises set forth below,
the parties agree as follows:
SECTION 1. The parties recognize the date of February 28, 2014 as the date of submission of
the Conditional Use Permit as required by the 4`h extension of time to lease amendment
agreement. The FBO shall have 2 years from the date the FBO has been informed by the
County that the conditional use has been approved and the conditional use permit is available
for pick up, to build the hangar and obtain a certificate of occupancy.
SECTION 2. The FBO shall inform the County, upon the earlier of, either substantial
completion of the hangar or upon the date the FBO assumes occupancy of the hangar, that the
hangar is ready for, or is in fact being occupied by the FBO. At that time, and beginning on the
earlier of either of the two dates, the County and the FBO shall enter into a written lease
extension which will terminate on April 5, 2041.
SECTION 3. The parties acknowledge that County obligations under the AIP Grant
Assurances limit the overall number of years a lease may remain in place. Therefore, due to the
aggregate term of years granted by this Fifth Extension of Time To Lease and Lease
Amendment coupled with the inception date of the original lease, this shall be the final
extension of time to the original lease and neither the FBO, his assignee or successor in interest
will request, nor will the County grant any further extension of time whatsoever.
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SECTION 4. Paragraph 3)c) of the original lease is amended to read as follows:
3) c) Starting on the effective date of this Agreement the FBO shall pay the County a 10
cents per gallon flowage fee for each gallon sold. By the tenth of each month the FBO must
accurately report to the County the number of gallons sold and pay the County the fee due
based on that number. The County's Marathon Airport Manager, or his designee, shall be
allowed to inspect the FBO's records concerning fuel sales to ensure the flowage fees paid
accurately reflect the number of gallons sold. The inspection(s) shall be conducted during
regular business hours (9:00 a.m. — 5:00 p.m., Monday through Friday excluding holidays).
SECTION 5. Paragraph 3)d) of the original lease shall read as follows:
3) d) The rent will be adjusted annually on the anniversary of the effective date of the
Agreement by the amount recommended in an approved rates and charges study or by an
amount reflecting the percentage increase in the CPI for the preceding 12 months.
SECTION 6. Except as specifically provided for in this Fifth Extension Of Time To Lease and
Lease Amendment, all of the terms and conditions of the April 15, 2009 Lease Amendment and
the April 6, 1998 Original Lease not inconsistent herewith remain in full force and effect.
THE REMAINDER OF THIS PAGE HAS BEEN INTENTIONALLY LEFT BLANK.
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IN WITNESS WHEREOF, each party has caused this Agreement to be executed by its duly
authorized representative the date first written above.
(SEAL) BOARD OF COUNTY COMMISSIONERS
ATTEST: AMY HEAVILIN, CLERK OF MONROE COUNTY, FLORIDA
By By
Deputy Clerk Mayor Sylvia Murphy
WITNESSES: MARATHON GENERAL AVIATION
By
Title �
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