Item C04County of Monroe
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BOARD OF COUNTY COMMISSIONERS
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Mayor David Rice, District 4
IleOI1da Keys
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Mayor Pro Tem Sylvia J. Murphy, District 5
Danny L. Kolhage, District I
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George Neugent, District 2
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Heather Carruthers, District 3
County Commission Meeting
April 19, 2018
Agenda Item Number: C.4
Agenda Item Summary #4057
BULK ITEM: Yes DEPARTMENT: Airports
TIME APPROXIMATE: STAFF CONTACT: Donald DeGraw (305) 809 -5200
none
AGENDA ITEM WORDING: Approval of a Second Amendment to the Lease with Marathon
Landing & Flying Club, Inc., adding 6,250 sq. ft of leasehold space for paving between the hangar
and taxiway. Hangar rent will increase by $750.00 annually and on January 1, 2034, the rent will be
set at Fair Market Value (FMV). The lease term will be extended by (10) ten years to December 10,
2048. The increased rent from the FMV reset date being advanced four years earlier and the
increased leased land will result in approximately $36,000 of additional revenue to Monroe County
Airports.
ITEM BACKGROUND: On December 11, 2013, the Marathon Landing & Flying Club, Inc.
entered into a twenty -five year lease with Monroe County to construct an aircraft hangar on an
undeveloped parcel of property at the Florida Keys Marathon International Airport. October 21,
2015, an Amendment was approved extending construction completion date due to delays through
no fault of the Tenant. The hangar was completed, and the tenant recently requested additional lease
space in order to pave the connector between the hangar and the taxiway, due in part because the
obstruction removal project construction site that separates the hangar from the taxiway is not in a
condition that allows the safe passage of aircraft.
In exchange for the paved improvements, additional leased area (at $0.12 cents per sq. ft.) and
agreeing to increase hangar rent to fair market value four years earlier from the current agreement,
staff recommends extending the lease term an additional 10 years to December 10, 2048. The value
of charging the Fair Market Value four years earlier and the charge for the additional leased space
results in an additional $36,000 to the County (estimated).
PREVIOUS RELEVANT BOCC ACTION:
On September 20, 2012, the Marathon Landing & Flying Club, Inc. entered into an Option
Agreement for Lease of Real Property with the County for the future request to lease an undeveloped
parcel of property on the Airport for construction of an enclosed hangar. This lease was
subsequently entered with the County on December 11, 201,3 and amended on October 21, 2015, as
mentioned above.
CONTRACT /AGREEMENT CHANGES:
Adds 6,250 sq. ft additional lease space at $0.12 (cents) per sq. ft., increases hangar rent to the Fair
Market Value four years early (2034 vs. 203 8) and extends the lease term by an additional ten (10)
years through December 10, 2048.
STAFF RECOMMENDATION: Approval.
DOCUMENTATION:
MTH Landing and Flying Club 2nd Amendment
FINANCIAL IMPACT:
Effective Date: 04/19/2018
Expiration Date: 12/10/2048
Total Dollar Value of Contract: N/A
Total Cost to County: N/A
Current Year Portion:
Budgeted: N/A
Source of Funds:
CPI:
Indirect Costs:
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing: YES If yes, amount: $3,448.89/yr.
Grant:
County Match:
Insurance Required:
Additional Details:
REVIEWED BY:
Beth Leto
Completed
04/03/2018 11:23 AM
Donald DeGraw
Completed
04/03/2018 12:56 PM
Patricia Eables
Completed
04/03/2018 2:01 PM
Budget and Finance
Completed
04/03/2018 2:39 PM
Maria Slavik
Completed
04/03/2018 3:17 PM
Kathy Peters
Completed
04/03/2018 5:08 PM
Board of County Commissioners
Pending
04/19/2018 9:00 AM
SECOND AMENDMENT TO LEASE AGREEMENT
FLORIDA KEYS MARATHON INTERNATIONAL AIRPORT
MARATHON LANDING AND FLYING CLUB, INC.
THIS SECOND AMENDMENT (hereafter Amendment) is made and entered into this 19
day of April, 2018, by and between Monroe County, a political subdivision of the State of Florida,
whose address is Gato Building, 1100 Simonton Street, Key West, FL 33040 (hereinafter
"COUNTY ", "LESSOR" or "OWNER "), and Marathon Landing and Flying Club, Inc., whose
address is 2460 Coco Plum Drive, Marathon, Florida, 33050 (hereinafter "TENANT" or
"LESSEE ").
WHEREAS, on the 1 l day of December 2013, the County entered in to a lease (hereinafter
Original Lease) with the Lessee for construction of a new hangar; and
WHEREAS, on the 21 day of October 2015 Lessee entered into an amendment granting
the Lessee additional time to commence development of the hangar; and
WHEREAS, the construction of the hangar is complete and the Lessee is requesting
additional leasehold space in order to pave the connector between the hangar and the taxiway, now
therefore,
IN CONSIDERATION of the premises and of the mutual covenants and agreements herein
contained, and other valuable considerations, the parties agree as follows:
SECTION 1. ARTICLE 1 — Premises of the Original Lease is amended to read as follows:
1. Premises. The COUNTY does hereby lease to LESSEE, and LESSEE leases
from the COUNTY, approximately 6,300 square feet of land upon which Lessee
constructed a hangar located at the Florida Keys Marathon Airport hereafter the
premises, as described in Exhibit "A" attached hereto and incorporated herein.
In addition, The COUNTY does hereby lease to LESSEE, and LESSEE leases from
the COUNTY, approximately 6,250 square feet of land, as shown on Exhibit B,
which Lessee shall pave for use as an approach to Lessee's hangar.
LESSEE shall be responsible for ANY AND ALL COSTS, EXPENSES AND
PERMITTING requirements associated with the paving.
Any improvements made by the LESSEE to the premises automatically become the
property of the County upon the termination of this lease.
SECTION 2. ARTICLE 2 - Term of the Original Lease is amended to read as follows:
2. Term. The term of the lease is for thirty five (35) years beginning December 11,
2013 and terminating December 10, 2048, with an option, at LESSEE discretion, to
renew for one additional five (5) year term under the same rate agreement in Article
3.
SECTION 3. ARTICLE 3 - Rent of the Original Lease is amended to read as follows:
3. Rent. Rent for the premises depicted in Exhibit A and Exhibit B is $287.41 per
month or $3,448.89 per year, plus applicable sales tax, with the monthly rent due and
payable beginning on the first day of each month. All rental payments are due at the
Florida Keys Marathon Airport Business Office, 9400 Overseas Highway, Suite 200,
Marathon, FL 33050.
On the 1st of January 2019, and on the 1 S ` of January every year thereafter, the
annual rental sum will be adjusted each year by a percent equal to the increase in the
CPI for all urban consumers (CPI -U) above that of the prior calendar year. In the
event of a deflationary CPI, no adjustment in the rental rates will be made.
On January 1, 2034 or at such time as the leasehold and /or the improvements are
assigned, sold or otherwise transferred by Marathon Landing and Flying Club, Inc.,
the COUNTY shall have the improved property appraised for purposes of
establishing the fair market value of the property. Beginning January 1, 2034 or
upon assignment, sale or transfer, whichever comes first, rent shall be set at fair
market value as determined by the appraisal and will be adjusted January 1st every
year thereafter by a percent equal to the increase in the CPI for all urban consumers
(CPI -U) above that of the prior calendar year. In the event of a deflationary CPI, no
adjustment in the rental rates will be made.
Section 4. Except as set forth in Sections 1, 2 and 3 of this Second Amendment To Lease
Agreement, the original agreement dated December 11, 2013 not inconsistent herewith, shall 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 hereto has caused this agreement to be executed in
duplicate by its duly authorized representative.
(SEAL)
ATTEST: KEVIN MADOK, CLERK
By
Deputy Clerk
Date
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By
Mayor David Rice
Marathon Landing and Flying Club, Inc.
s
MONROE PPQ COUN OR FO ' OFFICE
PATRICIA EABLES
ASSISTANT CO MY TTORNEY
DATE:
By
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