Item C05County 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.5
Agenda Item Summary #4058
BULK ITEM: Yes DEPARTMENT: Airports
TIME APPROXIMATE: STAFF CONTACT: Donald DeGraw (305) 809 -5200
none
AGENDA ITEM WORDING: Approval of a First Amendment to the Lease with Islands Flying
Club, Inc., adding 2,000 sq. ft. of leasehold space for paving between the hangar and the taxiway.
Hangar rent will increase by $240.00 annually and on December 1, 2024, the rent will be set at Fair
Market Value (FMV). The lease term will be extended by (10) ten years to November 18, 2038. The
increased rent from FMV reset date being advanced four years earlier and the increased leased land
will result in approximately $26,500 of additional revenue to Monroe County Airports.
ITEM BACKGROUND: On November 19, 2008, the Islands Flying Club, Inc., entered into a twenty
year lease with Monroe County to construct an aircraft hangar on an undeveloped parcel of property at the
Florida Keys Marathon International Airport. 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 November 18, 2038. The value of charging the Fair Market
Value four years earlier and the charge for the additional leased space results in an additional $26,500 to the
County (estimated).
PREVIOUS RELEVANT BOCC ACTION:
On November 19, 2008, the Islands Flying Club, Inc., entered into a twenty year lease with Monroe County.
CONTRACT /AGREEMENT CHANGES:
Adds 2,000 sq. ft. of additional lease space at $0.12 (cents) per sq. ft., increases hangar rent to the
Fair Market Value four years early (2024 vs. 2028) and extends the lease term by an additional ten
(10) years through November 18, 2038.
STAFF RECOMMENDATION: Approval.
DOCUMENTATION:
Islands Flying Club 1 st Amendment
FINANCIAL IMPACT:
Effective Date: 04/19/2018
Expiration Date: 11/18/2038
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: $2,996.76/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 12:49 PM
Patricia Eables
Completed
04/03/2018 2:22 PM
Budget and Finance
Completed
04/03/2018 3:13 PM
Maria Slavik
Completed
04/03/2018 3:17 PM
Kathy Peters
Completed
04/03/2018 5:19 PM
Board of County Commissioners
Pending
04/19/2018 9:00 AM
AMENDMENT TO LEASE AGREEMENT
FLORIDA KEYS MARATHON INTERNATIONAL AIRPORT
ISLANDS FLYING CLUB, INC.
THIS 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 Islands Flying Club, Inc., whose address is 2460 Coco Plum Drive,
Marathon, Florida, 33050, (hereinafter "Tenant" or "Lessee ").
WHEREAS, on the 19 day of November 2008, the County entered in to a lease
(hereinafter Original Lease) with the Lessee for construction of a new 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 5,400 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 2,000 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 (30) years beginning November 19,
2008 and terminating November 18, 2038 with an option, at Lessee's discretion, to
renew for one additional ten 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 $249.73 per
month or $2,996.76 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 1 st of December 2018, and on the 1 S ` of December 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 December 1, 2024 or at such time as the leasehold and /or the improvements are
assigned, sold or otherwise transferred by Islands Flying Club, Inc., the County shall
have the improved property appraised for purposes of establishing the fair market
value of the property. Beginning December 1, 2024 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 December 1 st 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 Amendment To Lease Agreement,
the original agreement dated November 19, 2008 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) BOARD OF COUNTY COMMISSIONERS
ATTEST: KEVIN MADOK, CLERK OF MONROE COUNTY, FLORIDA
By By
Deputy Clerk
Date
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Mayor David Rice
Islands Flying Club, Inc.
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