1st Amendment 12/19/2018 0VS G0UgTd``1
Z.; "`'....sA•. Kevin Madok, CPA
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= Clerk of the Circuit Court&Comptroller—Monroe County, Florida
DATE: February 5, 2019
TO: Beth Leto, Airports
Business Manager
FROM: Pamela G. Hanc•t1.C.
SUBJECT: December 19th BOCC Meeting
Enclosed is a duplicate original of Item C26, First Amendment to Master Lease Agreement
between Coast FBO, LLC (d/b/a Marathon General Aviation) and Florida Keys Marathon
International Airport to increase the monthly rent to $11,500.00 based on a fair market value
appraisal, for your handling.
Should you have any questions, please feel free to contact me at (305) 292-3550.
cc: County Attorney
Finance
File
KEY WEST MARATHON PLANTATION KEY PK/ROTH BUILDING
500 Whitehead Street 3117 Overseas Highway 88820 Overseas Highway 50 High Point Road
Key West,Florida 33040 Marathon,Florida 33050 Plantation Key,Florida 33070 Plantation Key,Florida 33070
305-294-4641 305-289-6027 305-852-7145 305-852-7145
S S
/1
MARATHON FIXED BASE OPERATOR(FBO)
FIRST AMENDMENT
MONROE COUNTY
COAST FBO,LLC
THIS MARATHO XED BAS OPE 'jr (FBO) FIRST AMENDMENT is
made and entered into thi h� day of 1 Pk - r 018 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 Coast FBO, LLC, whose address is 9850 Overseas
Highway, Suite 200, Marathon, Florida 33050 (hereafter"FBO").
WHEREAS, on July 19, 2016, Coast FBO, LLC, entered into a Marathon Fixed Base
Operator (FBO) Agreement with Monroe County (the "FBO Lease") to amend and restate in its
entirety the previous lease that included 2 amendments, 5 extensions, and several consents to
assignment, a copy of the FBO Lease is attached hereto as Exhibit A; and
WHEREAS, on August 16, 2017, per the terms of Paragraph 5) b) of the FBO Lease the
County entered into a written lease extension with the FBO which will terminate the FBO Lease
on April 5, 2041; and
WHEREAS, per the terms of Paragraph 3) d) of the FBO Lease the parties agreed to set
the rental rate for the premises at fair market value upon completion of the East Hangar; and
WHEREAS,the East Hangar was substantially completed on May 8,2017 and a Certificate
of Occupancy was subsequently executed on May 17, 2017; and
WHEREAS,the County has had a fair market appraisal of the premises completed,which
is attached hereto as Exhibit B.
NOW THEREFORE, in consideration of the mutual promises and benefits set forth
below, the receipt and sufficiency of which are hereby acknowledged, the parties agree to amend
the FBO Lease as follows:
1. Recitals: The foregoing recitals are true and correct and are incorporated herein by this
reference.
2. Section 3—Rent,Fees,Late/Dishonored Payments:
a. Sub-Section 3) a)is hereby amended in its entirety to read as follows:
"a)The FBO must pay monthly rent on an arrears basis as follows; $11,500.00 per
month plus tax for the premises described in Exhibit A."
b. Sub-Section 3) d)is hereby deleted in its entirety.
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3. Section 5—Term:
a. Sub-Section 5) a) is hereby amended in its entirety to read as follows:
"a) The term of this lease agreement began on April 6, 1998 and ends on April 5,
2041."
b. Sub-Section 5)b)is hereby deleted in its entirety.
c. Sub-Section 5) c)is hereby amended in its entirety to read as follows:
"c) For purposes of this Agreement the parties acknowledge this lease originated
on April 6, 1998 and AIP Grant Assurances limit the overall number of years a
lease may remain in place. Therefore,due to the aggregate term of years previously
granted and now consolidated under this Agreement,the FBO covenants and agrees
that neither the current FBO, his assignee or successor in interest will request, nor
will the County grant any further extension or renewal of this lease whatsoever."
4. Savings Clause: Except as set forth herein,all remaining provisions of the FBO Lease not
inconsistent herewith, shall remain in full force and effect.
>;:IN WI. TESS WHEREOF, each party has caused this Agreement to be executed by its
dulyFauthorized representative as of the date first written above.
BOARD OF COUNTY COMMISSIONERS
ATTEST:-KEVIN ;•` OK, CLERK OF MONROE COUNTY, FLRIDA
zw..lir..'. i'l - ..w.
By vYvy By C.)
Deputy Clerk Mayor David Rice
Witnesses COAST FBO, LL
By
Print Name ST S SE- Ae-Z By: Martin H. Hiller, its Manager
By deige-1741
Me R E COU TT•f
Print Name tdasGr�✓J AP'RITE+ O
PEDRO J ERCADO
ASSISTANT t! •• - •-
Date . M i 6
2
• Marathon General Aviation - Exhibit A, BOCC - December 19, 2018
MARATHON FIXED BASE OPERATOR (FBO) AGREEMENT
MONROE COUNTY ` ;-, r kt, ;;,'�i� r�
j COAST FBO,LLC t` roc ctr ;! ,;) i '•_i
This Agreement is made and entered by Monroe County, a political subdivision of the
State of Florida, whose address is Marathon Airport, 9400 Overseas Highway, Marathon Florida
33050 (hereafter "County"), and Coast FBO, L L C., 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 International Airport(hereafter"airport"); 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, 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
predecessor in interest failed to build a hangar within 2 years of the effective date of the
amendment; and
WHEREAS, on April 15, 2009, an FBO predecessor in interest and the County executed a
lease amendment which renewed the requirement that the FBO build a corporate hangar(hereafter
"east hangar")on said parcel within 2 years of the execution of that new lease amendment: and
WHEREAS, ownership of the leasehold has changed several times over the original term of
the lease necessitating the execution of several consent to assignment documents; and
WHEREAS, the original lease has twice been amended; and
WHEREAS, the construction of the east hangar has been delayed on several occasions
requiring the execution of 5 extensions to the 2009 lease amendment; and
• WHEREAS, the permitting for the east hangar has been completed and construction has
commenced; and
WHEREAS,the parties previously entered into an Agreement that required the construction
of the east hangar to be completed by May 13, 2016 however due to the permitting delays the
parties are in agreement that the completion date should now be May 13, 2017;. and
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WHEREAS, completion of the east hangar is a condition precedent to the final extension of
the term of this lease; and
WHEREAS, the lease has become extremely cumbersome with 2 amendments, 5
extensions and several consents to assignment; and
WHEREAS, for purposes of clarity and ease of reference the parties desire to terminate all
the previously executed documents, consolidate all of the terms, covenants and conditions into a
single master lease document,
NOW THEREFORE, in consideration of the mutual covenants and promises set forth
below, the parties agree as follows:
1) Mutual Termination of Existing Lease, Amendments and Extensions.
The parties mutually agree to cancel their;
i) April 6, 1998 original Lease Agreement,
ii) December 19, 2001, April 15, 2009 Lease Amendments,
iii) March 17, 2010, September 15, 2010, March 16, 2011, March 21, 2012 and April 16, 2014
Extensions of Time And Lease Amendment with neither party having any further duty,
obligation or liability to the other under the terms of any of the above listed documents.
2) Premises.
a) The County leases to the FBO the real property shown on Exhibit A, including the hangar
building, line office, ramp, tiedowns, and fuel farm, hereafter collectively referred to as the
premises. Exhibit A is attached to and incorporated into this Agreement.
b)No buildings, structures or other improvements to real property may be added by the FBO to
the premises described in Exhibit A other than the east hangar for which permit was approved by
Monroe County on May 13, 2014 during the term of this Agreement without a separate agreement
concerning the same with the COUNTY.
3) Rent,Fees, Late/Dishonored Payments.
a) The FBO must pay monthly rent on an arrears basis as follows; $10,614,99 per month plus
tax for the premises described in Exhibit A.
b) The FBO must also pay the County a 10 cents per gallon flowage fee for each gallon
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
County's Marathon Airport Manager, or his designee, shall be allowed to inspect the FBO's
records concerning fuel sales to make sure the flowage fees paid accurately reflect the number
of gallons sold. The inspection(s) may only be during regular business hours (9:00 AM- 5:00 PM,
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Monday through Friday,excluding holidays).
c) The rent will be adjusted annually on the anniversary of the effective date of this
Agreement by the amount recommended in an approved rates and charges study or by an
amount reflecting the percentage in increase in the CPI-U during the previous calendar year,
whichever is higher. In the event of a deflationary CPI-U, no adjustment in the rental rates will be
made.
d) If the FBO completes construction of the east hangar pursuant to the terms of subparagraph
5)(b) then the rent for the premises described in Exhibit A will be set at fair market value on April
5, 2018, as determined by an appraisal of the premises along with all improvements thereon. If the
appraised value is lower than the rental amount in effect at that time then there shall be no
adjustment of the rental amount. Thereafter rent for the premises described in Exhibit A along with
the improvements thereon will be adjusted annually in accordance with subparagraph 3)(c) above.
e) Rent shall be paid in equal monthly installments, all of which shall be due and payable on
or before the first day of each calendar month during which this lease is in effect. Upon the failure
of FBO to pay any installments when due, the County will be entitled to charge and collect, and
FBO will be obligated to pay, a late fee of two percent (2%) of any such amount, if paid within
thirty (30) days of the date due, and five percent (5%) of any such amount, not paid within thirty
(30) days of the date due. Such late fees will be in addition to the amount of rent due. The
acceptance by the County of the overdue rental installment plus applicable late fees shall cure what
would otherwise constitute a default by FBO under the terms of this lease. The County, at its
option, however, may refuse a proffered21 ofdue thcstental leaseinstallment
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and proceed according to paragraph
negotiable instrument by which FBO has tendered any rent payment is returned to the County and
not honored, whether for insufficient funds or other reason, the County will be entitled to charge
and collect, in addition to any applicable late payment fees as provided above, a fee of Twenty-five
Dollars ($25.00) for such dishonored instrument. Such penalty fee shall also be in addition to the
amount of rent due. The acceptance by the County of the rental payment plus any applicable late
fee and penalties following the receipt of a dishonored instrument shall cure what would otherwise
constitute a default under the terms of this lease. The County, at its option, however, may refuse
any proffered rental installment and applicable late fees and penalties, declare a default, and
proceed according to paragraph 21 of this lease.
4) Pledge of Security.
The FBO pledges and assigns to the County,the fixtures, goods,and chattels of the FBO that
are brought or placed on the premises as additional security for the payment of the rent. The
FBO agrees that a lien against the fixtures, goods, and chattels, may be enforced by distress
foreclosure or otherwise at the election of the County, and the FBO agrees to pay all costs and
charges County incurred by the County in an enforcement action.
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5) Term.
a) The term of this lease agreement began on April 6, 1998 and ends on April 5, 2018.
b) The FBO shall inform the County, upon the earlier of, either substantial completion of the
east hangar or upon the date the FBO assumes occupancy of the east hangar, that the east hangar is
ready for, or is in fact being occupied by the FBO. If substantial completion or owner occupancy of
the east hangar constructed pursuant to subparagraph 2)(b) of this Agreement occurs no later than
May 13, 2017, the County and the FBO shall enter into a written lease extension which will
terminate this Agreement on April 5, 2041.
c) For purposes of this Agreement the parties acknowledge this lease originated on April 6,
1998 and AIP Grant Assurances limit the overall number of years a lease may remain in place.
Therefore, due to the aggregate term of years previously granted and now consolidated under this
Master Agreement, the FBO covenants and agrees that, except as provided for in subparagraph
5)(b) above, neither the current FBO, his assignee or successor in interest will request, nor will the
County grant any further extension or renewal of this lease whatsoever.
6) Taxes.
The FBO must pay all taxes and assessments, including any sales or use tax, imposed or
levied by any governmental agency with respect to the FBO's operations authorized at the
Marathon Airport under this Agreement.
7) Utilities.
The FBO shall, in its own name, and pay for, all utility services at the premises including
solid waste removal.
8) FBO Services,Right of Repair.
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 aeronauti al service normally
furnished by a fixed base operator. The FBO has the right to sell aviation 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.
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b) The County's permission is not required for the repair, renovation or rehabilitation of
improvements depicted on Exhibit A.
9) Premises Condition, Compliance With Minimum Standards, Laws. Rules & Regulations
The FBO acknowledges and agrees that it is aware of the condition, location and the
limitations and restrictions placed on any building, structure or other object as to height, due
to the proximity of the landing and takeoff areas of the Marathon Airport. The FBO agrees to
abide by and observe all such restrictions and limitations, including the County fixed base
operator minimum standards attached and incorporated as Exhibit B, and agrees that the
observance of such limitations and restrictions whether imposed by the County, state or
federal governmental authority will not in anywise affect the FBO's obligations under this
lease. The FBO must also comply with all laws, statutes, regulations and rules of the federal or
state governments, and any plans or programs developed by or funded by either government,
that affect the FBO's operations or its use of the premises. The FBO's obligation to obey federal
and state laws, statutes, regulations and rules, any federal or state airport plan or airport program
• criteria or the criteria of a plan or program funded by the state of federal government and
comply with the County's fixed base operator minimum standards, includes not only those in
existence on the effective date of this Agreement, but those adopted after that date.
10) Environmental Contamination
The FBO must keep the premises in good order and condition. The FBO must promptly
repair any damage to the premises and is responsible for remedying any environmental
contamination caused by the FBO's operations at the premises. At the end of the term of this
agreement, the FBO must peacefully surrender the premises to the County in good order and
condition, normal wear and tear excepted. If no rent or fees are due the County, at the end of the
term of this Agreement the FBO may also remove its personal property from the premises and
may remove any trade fixtures provided that the FBO restores the premises to their original
condition. If during the term of this Agreement the FBO fails to keep the premises in good repair
and free from environmental contamination as required by this subparagraph, the County may,
after providing the FBO with a written warning and a fifteen day opportunity to correct the
deficiency, enter the premises and do whatever repair or clean-up work the County's Marathon
Airport Manager deems appropriate. The cost of the work plus 10% will be added to the
FBO's rent for the month following the repair or clean-up.
11) Indemnification/Hold Harmless
Notwithstanding any minimum insurance requirements prescribed elsewhere in this
agreement, FBO shall defend, indemnify and hold the County and the County's elected and
appointed officers and employees harmless from and against (i) any claims, actions or causes of
action, (ii) any litigation, administrative proceedings, appellate proceedings, or other proceedings
relating to any type of injury(including death), loss, damage, fine, penalty or business interruption,
and (iii) any costs or expenses that may be asserted against, initiated with respect to, or sustained
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by,any indemnified party by reason of, or in connection with, (A) any activity of FBO or any of its
employees, agents, contractors or other invitees during the term of this Agreement, (B) the
negligence or willful misconduct of FBO or any of its employees, agents, sub-contractors or other
invitees, or(C) FBO's default in respect of any of the obligations that it undertakes under the terms
of this Agreement, except to the extent the claims, actions, causes of action, litigation,proceedings,
costs or expenses arise from the intentional or sole negligent acts or omissions of the County or
any of its employees, agents, contractors or invitees (other than FBO). Insofar as the claims,
actions, causes of action, litigation, proceedings, costs or expenses relate to events or
circumstances that occur during the term of this Agreement, this section will survive the expiration
of the term of this Agreement or any earlier termination of this Agreement.
12)No Grant of Exclusive Right.
It is understood and agreed that nothing contained in this Agreement may be construed
to grant or authorize the granting of an exclusive right within the meaning of the Federal
Grant Assurances and that the County may enter into agreements with other fixed base operators
as long as such agreements are not on more favorable terms than this Agreement.
13)Insurance Requirements.
a) The FBO must keep in full force and effect the insurance described in Exhibit C during
the term of this Agreement. If the insurance policies originally purchased which meet the
requirements of Exhibit C are canceled, terminated or reduced in coverage, then the FBO must
immediately substitute complying policies so that no gap in coverage occurs.
b) The insurance required of the FBO in this paragraph is for the protection of the
County, its property and employees, and the general public. The insurance requirement is not,
however, for the protection of any specific member of the general public who might be
injured because of an act or omission of the FBO. The insurance requirements of this paragraph
do not make any specific injured member of the general public a third party beneficiary under
this Agreement. Therefore, any failure by the County to enforce this paragraph, or evict the FBO
from the Marathon Airport if the FBO becomes uninsured or underinsured, is not the breach of
any duty or obligation owed to any specific member of the general public and cannot form the
basis of any County liability to a specific member of the general public or his/her dependents, or
estate or heirs.
c) Notwithstanding the provisions of paragraph 21,the County may treat the FBO in default
and terminate this Agreement if the FBO fails to keep in full force and effect the insurance
required by this paragraph 13 and Exhibit C. Before treating the FBO in default and terminating
the Agreement under this subparagraph, the County need only provide the FBO 24 hour notice by
FAX or overnight courier. The County may, but need not, provide the FBO with an opportunity to
cure the default.
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14) Liens,Encumbrances.
The FBO may not cause, suffer or permit any lien, mortgage, security interest,
financing statement or other encumbrance to be placed on any real property improvement to
real property, or fixture owned by the County and leased to the FBO under this Agreement. If
any of the encumbrances just described are filed or perfected against any such property of the
County, the FBO must promptly cause the discharge, release or otherwise clear and remove
such encumbrances from the County property.
15) County Operation/Maintenance of Airport.
The County must keep the Marathon Airport runway, taxiway, and the area
immediately adjacent to the runway and taxiway, in good repair and clear of obstructions and
debris. The County must maintain and operate the Marathon Airport according to the highest
standards or ratings issued by the FAA for airports similar in size and character to the Marathon
Airport. The County must also comply with the rules and regulations of any other government
agency that has,or may have,jurisdiction over the Marathon Airport.
16)Right of Ingress and Egress.
FBO, its agents, employees, customers, suppliers, and patrons shall have the right of ingress
and egress to and from the leased premises, which shall not be unreasonably restricted by County.
17)Nondiscrimination.
The FBO, for itself, its personal representatives, successors in interest, and assignees,
as a part of the consideration hereof, does hereby covenant and agree that;
a) No person on the grounds of' race, color, or national origin shall be excluded
from participation in, denied the benefits or, or be otherwise subjected to discrimination in
the use of said facilities,
b) That in the construction of any improvements on,over or under such land and the
furnishing or services thereon,no person on the grounds of race,color, or national origin shall be
excluded from participation in, denied the benefits of, or be otherwise subjected to
discrimination,
c) That the FBO agrees to comply with all Federal and Florida statutes, and all local
ordinances, as applicable, relating to nondiscrimination. These include but are not limited to: 1)
Title VI of the Civil Rights Act of 1964 (PL 88-352)which prohibits discrimination on the basis of
race, color or national origin; 2) Title IX of the Education Amendment of 1972, as amended (20
USC ss. 1681-1683, and 1685-1686), which prohibits discrimination on the basis of sex; 3) Section
504 of the Rehabilitation Act of 1973, as amended (20 USC s.794), which prohibits discrimination
on the basis of handicaps; 4) The Age Discrimination Act of 1975, as amended (42 USC ss. 6101-
6107)which prohibits discrimination on the basis of age; 5)The Drug Abuse Office and Treatment
Act of 1972 (PL 92-255), as amended, relating to nondiscrimination on the basis of drug abuse; 6)
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The Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act
of 1970 (PL 91-616), as amended, relating to nondiscrimination on the basis of alcohol abuse or
alcoholism; 7) The Public Health Service Act of 1912, ss. 523 and 527 (42 USC ss. 690dd-3 and
290ee-3), as amended, relating to confidentiality of alcohol and drug abuse patient records; 8) Title
VIII of the Civil Rights Act of 1968 (42 USC s. et seq.), as amended, relating to nondiscrimination
in the sale, rental or financing of housing; 9) The Americans with Disabilities Act of 1990 (42 USC
s. 1201 Note), as maybe amended from time to time, relating to nondiscrimination on the basis of
disability; 10) Any other nondiscrimination provisions in any Federal or state statutes which may
apply to the parties to, or the subject matter of,this Agreement.
d) That in the event of breach of any of the above nondiscrimination covenants, the
County shall have the right to terminate the lease and to re-enter the premises as if said lease
had never been made or issued. The provisions shall not be effective until the procedures of Title
49, Code of Federal Regulations, Part 21 are followed and completed including exercise or
expiration of appeal rights.
18) Avigation Rights.
It shall be a condition of this lease, that the County reserves unto itself, its successors
and assigns, for the use and benefit of the public, a right of flight for the passage of aircraft in
the airspace above the surface of the real property hereinafter described, together with the right
to cause in said airspace such noise as may be inherent in the operation of aircraft, now known
or hereafter used, for navigation of or flight in the said airspace, and for use of said airspace for
landing on, taking off from or operating on the airport. That the FBO expressly agrees for itself,
its successors and assignees, to restrict the height of structures, objects of natural growth and
other obstructions on the hereinafter described real property to such a height so as to comply
with Federal Aviation Regulations Part 77 and all FAA regulations. The FBO expressly agrees
for itself, its successors and assignees, to prevent any use of the hereinafter described real
property which would interfere with or adversely affect the operation or maintenance of the
airport, or otherwise constitute an airport hazard.
19) Grant/Federal Subordination.
This Fixed Base Operator Agreement and all provisions hereof are subject and
subordinate to those certain Sponsor's Assurances made to guarantee the public use of the Airport
as incident to grant agreements between the Lessor and the United States of America and the terms
and conditions of the instruments and documents under which the County acquired the subject
property from the USA and shall be given only such effect as will not conflict or be
inconsistent with the terms and conditions contained in the lease of said lands from the County
and any existing or subsequent amendments thereto,
20)Navigation Aids.
If funds are not provided by the United States for the operation of a Marathon Airport
control tower, navigation aids or other facilities that arc needed by the FBO for service at the
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Airport, the County is under no obligation to provide those facilities or services.
21)Termination by County.
This Agreement may be terminated at the discretion of the COUNTY in the following
circumstances:
a) FBO fails to pay rent or fees when due;
b) FBO fail to obtain the insurance required under this lease or allows the required
insurance coverage to lapse or fall below the minimum required;
c) FBO otherwise breaches the terms of this lease.
d) Cancellation is required to accommodate future Airport growth, or
e) Cancellation is required due to F.A.A. requirements.
Unless the County has accepted in writing a delay in performance of duties, the failure to
perform said duties shall constitute a default/breach under the terms of this agreement. In the case
of the default/breach occurrences described in subparagraphs 21(a) or (c), the County's Florida
Keys Marathon International Airport Manager shall first give the FBO a written notification stating
the default/breach. The FBO shall be notified that he has 10 days to correct the default/breach. If
the nature of the default/breach is such that it cannot be cured in 10 days, the FBO shall inform the
County in writing of the reason why the default/breach cannot be cured in 10 days and shall
provide a written plan showing how the default/breach will be cured in a timely manner. If the
FBO has not corrected the default/breach at the end of the 10 days or if the FBO has provided a
cure plan, which the FBO has failed to timely and diligently execute, then the County may cancel
the lease in its discretion. In the case of cancellation occurring as described in subparagraphs 21(d)
or (e), County shall provide FBO 90 days' notice. In the event of cancellation occurring as
described in subparagraphs 21(d) or (e) the County, at County expense, shall relocate the FBO to
an alternate site in accordance with Florida Keys Marathon Airport ALP. If in the sole opinion of
the county an alternate site at the airport is not available, the County will purchase the FBO's lease
hold at fair market appraisal value.
The termination of this Agreement under subparagraphs 21(a),(b) or(c) does not relieve
the FBO from an obligation to pay whatever damage the County suffered because of the
FBO's default.
Despite the FBO's timely cure of its acts of default or the County's waiver of acts of
default, if the FBO defaults three times or more in performing its obligations under this
Agreement during a calendar year, then the County may, in its discretion, determine that the
FBO is a habitual violator. When the County makes that determination, it must notify the FBO in
writing. The notice must explain why the FBO was determined to be a habitual violator and that
any future act of default will be non-curable and will be the basis for the termination of this
Agreement. If a subsequent default occurs, the County may terminate this Agreement by giving
the FBO 10 day's written notice. The FBO must pay the County whatever rent and fees are due
as of the date of termination. The FBO will then have no further rights under this Agreement.
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Termination under this subparagraph does not relieve the FBO from an obligation to pay the
County any damage suffered because of the FBO's final act of default.
22) Termination by FBO
The FBO may terminate this Agreement in its discretion, if it is not in default in paying
the rents and fees owed to the County, by giving the County 15 day's written notice, upon
the occurrence of any of the following events:
a) The issuance by any court of competent jurisdiction of an injunction in any
way preventing or restraining the use of the Marathon Airport, or any part of the Airport, for
a period of at least 90 days.
b) The lawful assumption by the United States of the operation, control or use of the
Marathon Airport, or any part of the Airport, in a way that prevents the FBO from operating
its fixed base operation for a period of at least 90 days.
c) The inability of the FBO to use the Marathon Airport for at least 90 days
because of fire, explosion, earthquake. hurricane, other casualty, or acts of God or the public
enemy.
d) The FAA's failure to grant the FBO the license(s) necessary to operate its
service.
e) A dispute between the County and another governmental agency or between
other governmental agencies that make it difficult or impossible for the Marathon Airport
to be operated safely for a period of at least 90 days.
f) Closure due to the County complying with regulations, requirements or mandates of
the FAA, FDOT or any other agency having jurisdiction over the operations of the Marathon
airport.
The grounds for the FBO's termination of this Agreement as stated in subparagraphs 22(a),
(b), (c), (d), (e) and (f) create no basis for any County liability to the FBO and cannot
serve to create any obligation on the part of the County to pay money to the FBO.
g) The FBO may terminate this Agreement and treat the County in default if the
County fails to perform its obligations under this Agreement and the failure is not due to the
reasons described in subparagraph 22(a), (b), (c), (d) or(e). Before the FBO may terminate the
Agreement under this paragraph, the FBO must give the County a written notice of the default
stating that if the default is not cured within 15 days of the FBO's written notice, then the FBO
will terminate this Agreement. Termination under this paragraph does not relieve the
County from an obligation to pay the FBO whatever damages the FBO suffered because
10
of the County's default.
23)Non-Waiver of Default.
The waiver by the FBO or the County of an act or omission that constitutes a
default of an obligation under this Agreement does not waive another default of that or
any other obligation.
24)Assignment.
The FBO may not assign this Agreement without the approval of the County's Board of
County Commissioners, which approval shall not be unreasonably withheld. All the obligations of
this Agreement will extend to and bind the legal representatives, successors and assigns of the
FBO and the County.
25) Governing Law, Fees, Costs, Venue, Interpretation.
This Agreement shall be governed by and construed in accordance with the laws of the
State of Florida applicable to contracts made and to be performed entirely in the State.In the event
of any litigation, the prevailing party shall be entitled to reasonable attorney's fees, court costs,
investigative, and out-of-pocket expenses, as an award against the non-prevailing party, and shall
include attorney's fees, courts costs, investigative, and out-of-pocket expenses in appellate
proceedings.
In the event that any cause of action or administrative proceeding is instituted for the
enforcement or interpretation of this Agreement, the County and FBO agree that venue will lie in
the appropriate court or before the appropriate administrative body in Monroe County, Florida.
The County and FBO agree that, in the event of conflicting interpretations of the terms or a
term of this Agreement by or between any of them the issue shall be submitted to mediation prior
to the institution of any other administrative or legal proceeding. Mediation proceedings initiated
and conducted pursuant to this Agreement shall be in accordance with the Florida Rules of Civil
Procedure and usual and customary procedures required by the circuit court of Monroe County.
26) Severability.
If any term, covenant, condition or provision of this Agreement (or the application thereof
to any circumstance or person) shall be declared invalid or unenforceable to any extent by a court
of competent jurisdiction, the remaining terms, covenants, conditions and provisions of this
Agreement, shall not be affected thereby; and each remaining term, covenant, condition and
provision of this Agreement shall be valid and shall be enforceable to the fullest extent permitted
by law unless the enforcement of the remaining terms, covenants, conditions and provisions of this
Agreement would prevent the accomplishment of the original intent of this Agreement. The
County and FBO agree to reform the Agreement to replace any stricken provision with a valid
provision that comes as close as possible to the intent of the stricken provision.
11
27) Books, Records and Documents.
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 years following the termination of
this Agreement. An annual operating statement prepared by a C.P.A. must be provided to the
Lessor on or before February 28 of the following year.
28)Notice.
Notices to the County provided for in this Agreement, unless otherwise specified, must
be sent by certified mail to:
Marathon Airport Manager
9400 Overseas Highway, Suite 200
Marathon,FL 33050
Notices to the FBO provided for in this Agreement, unless otherwise specified, must be
sent by certified mail to:
Bill Ehrhorn
Coast FBO, LLC
9850 Overseas Highway
Marathon, Florida 33050
29) Code of Ethics.
County agrees that officers and employees of the County recognize and will be required to
comply with the standards of conduct for public officers and employees as delineated in Section
112.313, Florida Statutes, regarding, but not limited to, solicitation or acceptance of gifts; doing
business with one's agency; unauthorized compensation; misuse of public position, conflicting
employment or contractual relationship; and disclosure or use of certain information.
30) Public Access.
The County and FBO shall allow and permit reasonable access to, and inspection of, all
documents, papers, letters or other materials in its possession or under its control subject to the
provisions of Chapter 119, Florida Statutes, and made or received by the County and FBO in
conjunction with this Agreement; and the County shall have the right to unilaterally cancel this
Agreement upon violation of this provision by FBO.
31) Non-Waiver of Immunity.
Notwithstanding the provisions of Sec. 768.28, Florida Statutes, the participation of the
12
County and the FBO in this Agreement and the acquisition of any commercial liability insurance
coverage, self-insurance coverage, or local government liability insurance pool coverage shall not
be deemed a waiver of immunity to the extent of liability coverage, nor shall any agreement
entered into by the County be required to contain any provision for waiver.
32) Privileges and Immunities.
All of the privileges and immunities from liability, exemptions from laws, ordinances, and
rules and pensions and relief, disability, workers' compensation, and other benefits which apply to
the activity of officers, agents, or employees of any public agents or employees of the County,
when performing their respective functions under this Agreement within the territorial limits of the
County shall apply to the same degree and extent to the performance of such functions and duties
of such officers, agents, volunteers, or employees outside the territorial limits of the County.
33) Non-Delegation of Constitutional or Statutory Duties.
This Agreement is not intended to, nor shall it be construed as, relieving any participating
entity from any obligation or responsibility imposed upon the entity by law except to the extent of
actual and timely performance thereof by any participating entity, in which case the performance
may be offered in satisfaction of the obligation or responsibility. Further, this Agreement is not
intended to, nor shall it be construed as, authorizing the delegation of the constitutional or statutory
duties of the County, except to the extent permitted by the .Florida constitution, state statute, and
case law.
34) Non-Reliance by Non-Parties.
No person or entity shall be entitled to rely upon the terms, or any of them, of this
Agreement to enforce or attempt to enforce any third-party claim or entitlement to or benefit of any
service or program contemplated hereunder, and the County and the FBO agree that neither the
County nor the FBO or any agent, officer, or employee of either shall have the authority to inform,
counsel, or otherwise indicate that any particular individual or group of individuals, entity or
entities, have entitlements or benefits under this Agreement separate and apart, inferior to, or
superior to the community in general or for the purposes contemplated in this Agreement.
35) No Personal. Liability.
No covenant or agreement contained herein shall be deemed to be a covenant or agreement
of any member, officer, agent or employee of Monroe County in his or her individual capacity, and
no member, officer, agent or employee of Monroe County shall be liable personally on this
Agreement or be subject to any personal liability or accountability by reason of the execution of
this Agreement.
36) Personal Property.
Any personal property of FBO, its agents, assignees, or invitees placed in the premises of
the Airport shall be at the sole risk of the FBO or owners thereof, and the County shall not be liable
13
for any loss or damage.
37) Execution in Counterparts.
This Agreement may be executed in any number of counterparts, each of which shall be
regarded as an original, all of which taken together shall constitute one and the same instrument
and any of the parties hereto may execute this Agreement by signing any such counterpart.
38) Section Headings.
Section headings have been inserted in this Agreement as a matter of convenience of
reference only, and it is agreed that such section headings are not a part of this Agreement and will
not be used in the interpretation of any provision of this Agreement.
39)Final Understanding.
This Agreement is the parties' final mutual understanding. It replaces any earlier
agreements or understandings, whether written or oral, This Agreement cannot be modified or
replaced except by another written and signed agreement.
40)Mutual Review.
This Agreement has been carefully reviewed by the FBO and the County. Therefore, this
Agreement is not to be construed against any party on the basis of authorship.
IN WITNESS WHEREOF, each party has caused this Agreement to be executed by its duly
authorized representative the date first written above.
,... + 0:P, , ) BOARD OF COUNTY COMMISSIONERS
�� * ' 9g-� ' Y HEAVILIN, CLERK OF MONROE COUNTY, FLORIDA
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EXHIBIT B
BOCC -April 20, 2016
Division of Community Services
RESOLUTION NO. 374 -1990
A RESOLUTION OF THE BOARD OF COUNTY COMMIS-
SIONERS OF MONROE COUNTY, FLORIDA, APPROVING
THE REVISED MINIMUM STANDARDS FOR COMMERCIAL
AERONAUTICAL ACTIVITIES BY FIXED BASE
OPERATORS AND OTHER AERONAUTICAL SERVICE
PROVIDERS AT MONROE COUNTY AIRPORTS,
WHEREAS, the Board of County Commissioners of Monroe County,
Florida, previously approved Minimum Standards for Commercial
Aeronautical Activities by Fixed Base Operators at the Monroe
County Airports, and
WHEREAS, the Board of County Commissioners reserves the
right to modify these standards from time to time as may be
required for the benefit of the general public and for proper and
efficient operation of the airports, and
WHEREAS, the Board of County Commissioners wishes to revise
the minimum standards; now, therefore,
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF
MONROE COUNTY, FLORIDA, that the Board hereby approves and
adopts the attached Minimum Standards for Commercial Aeronautical
Activities by Fixed Base Operators and other Aeronautical Service
Providers at Monroe County Airports.
PASSED AND ADOPTED by the Board of County Commissioners of
dlonr$e Country, Florida, at a regular meeting of said Board held
c, n Mare / day of Ay,,0" , A.D. 1990.
BOARD OF COUNTY COMMISSIONERS
w -� OF MONROE COUNTY, FLORIDA
BY:
MAY A/CHAIRMAN
(Seal)
Attest: DANNY L. EOIIAGE, Clerk
\--24a ,
40/f
f APPROVED AS TO MI
AND LEGAL sumac.
MINIMUM STANDARDS FOR COMMERCIAL
AERONAUTICAL ACTIVITIES BY FIXED
BASE OPERATORS AND OTHER AERONAUTICAL
SERVICE PROVIDERS AT MONROE COUNTY AIRPORTS
INDEX
I. DEFINITIONS
A. Aeronautical Activity or Service
B. Airport
C. Airport Director
D. Airport Master Plan or Airport Layout Plan
E. Applicant
F. Commission
G. County Administrator
H. Fixed Base Operation
I. Minimum Standards
J. Person(s) or Provider(s)
K. Rules and Regulations
II. SPECIAL RESTRICTIONS ON AIRPORT LAND AND FACILITY USE
III. APPLICATION
A. How Made
B. Minimum Application Information
(1) Applicant
(2) Scope of Operations
(3) Management Capability
(4) Financial Responsibility
(5) Facilities Proposed
(6) Lease Term(s)
(7) Capital Investment
(8) Insurance
IV. STANDARD REQUIREMENTS FOR ALL AERONAUTICAL ACTIVITIES
A. Management
B. Financial Responsibility
C. Certifications
D. Insurance
V. FIXED BASE OPERATIONS STANDARDS
A. Primary Services
B. Secondary Services
(1) General
(2) Flight Instruction
(3) Aircraft Charter, Air Taxi and Sightseeing
Services
C. Exclusions
(1) Ground Transportation For Hire
(2) Western Union and/or Other Commercial Telecommu-
nications Services
(3) Auto Rental Services
(4) News and Sundry Sales
(5) Barber, Valet and Personal Sales
(6) Wholesale or Retail Sale of Non-aviation Products
(7) Automotive Gasoline Station
(8) Automotive or Marine Maintenance and Repair Services
D. Detailed Requirements
(1) Investment
(2) Premises
(3) Construction
(a) Tiedowns
(b) Hangars
(c) Auto Parking
2
(d) Site Plan
(e) Utilities
(f) Building Codes, Permitting Requirements, Reg-
ulations and Standards
(g) Final Approval Authority
(4) Sale of Aviation Petroleum Products, Ramp Service,
and Storage
(a) Aircraft Parking Apron and Service Ramp
(b) Fuel Tank Farm and Refuelers
(c) Pumping Equipment
(d) Hours of Operation
(e) Terminal Building Facilities
(f) Ground Rods
(g) Flight Line Repairs
(5) Insurance
(a) General
(b) Fire, Extended Coverage, and Vandalism
(c) Indemnity
(d) Property Damage Liability
(e) Performance Bond
(6) Fees
(a) Fuel Flowage Fees
(b) Airport Usage Fee
1. Gross Receipts
(7) Term of Lease
VI. PARTIAL OR INDIVIDUAL AERONAUTICAL SERVICES
A. Flight Instruction and Aircraft Rental Services
(1) Personnel and Certifications
(2) Aircraft and Equipment
(3) Facilities
(4) Obligations and Responsibilities
3
(5) Insurance
B. Non-Scheduled Aircraft Charter, Air Taxi, and Sightseeing
Services
(1) Personnel and Certifications
(2) Aircraft and Equipment
(3) Facilities
(4) Insurance
C. Aircraft Sales
(1) Sales or Distributorship Franchise Agreement
(2) Personnel, Certifications, and Hours of Operation
(3) Customers and Warranty Services
(4) Facilities
(5) Insurance
D. Aircraft, Engine, Propeller, and Accessory Maintenance
Services
(1) Equipment, Personnel, and Certifications
(2) Additional Services
(3) Facilities Required by Primary and Secondary Ser-
vices Fixed Base Operators
(4) Facilities Required by Individual Providers
(5) Insurance
E. Avionics and Instrument Repair Services
(1) Facilities
(2) Equipment, Personnel, and Certifications
(3) Insurance
F. Other Commercial Aeronautical Activities
VII. BACKGROUND INVESTIGATION
VIII. RIGHT TO MODIFY
IX. PRECEDENCE
4
MINIMUM STANDARDS FOR COMMERCIAL
AERONAUTICAL ACTIVITIES BY FIXED
BASE OPERATORS AND OTHER AERONAUTICAL
SERVICE PROVIDERS AT MONROE COUNTY AIRPORTS
The Monroe County Board of County Commissioners, recognizing the
need for orderly development of its airports and the necessity of
protecting the public health, safety, and interest in the county
airports, hereby promulgates and adopts the following procedures and
minimum standards for the use of any land or facility on said
airports.
I. As used herein, the following terms shall have the mean-
ings indicated:
Definitions
A. Aeronautical Activity or Service. Shall mean any
activity or service whether or not conducted on or
off airport property which involves, makes possible,
supports, or is required for the operation of air-
craft or which contributes to, or is required for,
the safety of such operations and shall include, but
not by way of limitation, all activities or services
commonly conducted on airports, such as: Charter
operations, air taxi, pilot training, aircraft
rental, sightseeing, aerial photography, crop dust-
ing, flying clubs, aerial advertising and surveying,
air carrier operations, aircraft sales and service,
sale of aviation petroleum products, whether or not
conducted in conjunction with other included activi-
ties or services, repair and maintenance of aircraft,
sale of aircraft, parts, sale or maintenance of
aircraft accessories, radio communication and
5
navigation equipment, and any other activity which,
because of its direct relationship to the operation
of aircraft, can appropriately be regarded as an
aeronautical activity or service.
B. Aireort. Shall mean any airport owned and operated
by Monroe County.
C. Airport Director. Shall mean the Monroe County
Director of Airports.
D. Airport Master Plan or Airport Layout Plan. Shall
mean the currently approved scaled dimensional layout
of the entire airport property indicating current and
proposed usage for each identifiable segment as
approved by the Commission and amended from time to
time.
E. Applicant. Shall mean any person(s) , firm, general
or limited partnership, corporation, trust or associ-
ation, making application for, leasing or using any
land or facility at the airport for the conduct of a
commercial aeronautical activity.
F. Commission. Shall mean the Monroe County Board of
County Commissioners.
G. County_ Administrator. Shall mean the administrator
of Monroe County.
H. Fixed Base Operation. Shall mean the person(s)
engaging in Primary Commercial Support Services, at a
minimum, as described in Section V.A.
I. Minimum Standards. Shall mean the qualifications
established herein, as amended from time to time by
the Commission upon recommendations of the County
Administrator and/or the Airport Director, setting
forth the minimum requirements to be met as a
6 ,
condition for the right to conduct any aeronautical
activity on the airports.
J. Person(s) or Provider(s) . Shall mean any person(s) ,
firm general or limited partnership, corporation,
trust or association leasing or using any land or
facility at the airport for the conduct of a commer-
cial aeronautical activity.
K. Rules and Regulations. Shall mean the rules and
regulations as may be promulgated from time to time
by the Commission to protect the public health,
safety, interest, and welfare on Monroe County's
Airports, and to augment the ordinances and resolu-
tions pertaining to the airport.
II. Special Restrictions on Airport Land and Facility Use No
person shall be granted the right to conduct any commer-
cial aeronautical activity upon the airport, nor shall any
person be permitted to use any land or conduct any commer-
cial aeronautical activity or the solicitation of business
in connection therewith, unless such aeronautical activity
is conducted in accordance with the standards herein
established and as hereinafter may be amended from time to
time by the Commission and the issuance of the proper
permits, licenses, and/or the execution of a valid con-
tract or agreement with Monroe County to conduct such
activities with the county.
III. Application
A. How Made. Applications for the lease of ground
and/or facilities on the airport or for permission to
7
carry on any commercial business or aeronautical
activity on the airport with the necessary permits
and license shall be made to the Airport Director.
The Airport Director shall thereafter present the
application to the Commission. The applicant shall
submit all information and material necessary, or
requested by, the Commission to establish to the
satisfaction of the Commission that the applicant
will qualify and will comply with these standards,
rules and regulations. The application shall be
signed and submitted by a party owning an interest in
the business, or the individual who will be managing
the business, or a partner of a partnership, or a
director or an officer of a corporation.
B. Minimum Application Information. The Commission will
not accept or take action on any request to lease
building space or land area or in any way permit the
installation of a commercial activity until after the
proposed lessee, in writing, submits a proposal which
sets forth the scope of operation he proposes,
including the following:
1. Applicant. The name and address of the appli-
cant.
2. Scope of Operation. Description of proposed
land use area or facility sought and/or con-
struction and service activities proposed.
3. Management Capability. The names and qualifica-
tions of the key management and operating
personnel to be involved in conducting such
activity.
8
4. Financial Responsibility. A certified financial
statement prepared by an independent accountant
or an irrevocable letter of credit from a
recognized financial institution supporting the
responsibility and ability of the applicant to
provide the facilities and perform the activi-
ties sought for a minimum of one (1) year;
together with a Pro Forma operating statement
for the year. The Commission shall be the sole
judge of what constitutes adequate financial
capacity.
5. Facilities Proposed. The facilities, tools
equipment, and inventory, if any, proposed to be
furnished in connection with such activity.
6. Lease Terms(s) . The requested or proposed date
of commencement of the activity, and the term(s)
of conducting sale.
7. Capital Investment. The estimated cost of any
structure or facility to be furnished, the
proposed specifications for same, the means or
method of financing such construction or acqui-
sition of facilities, and the schedule of
capital investment.
8. Insurance. The specific types and amounts of
insurance proposed in accordance with minimum
requirements for the activity.
IV. Standard Requirements for all Aeronautical Activities
Every applicant for permission to conduct aeronautical
activities at the airport shall satisfy the Commission
that he meets the following requirements:
9
A. Management. That such applicant has a history of
management ability in conducting the same or similar
or comparable type of service or activity in a good
and workmanlike manner.
B. Financial Responsibility. That such applicant has
the financial responsibility and ability to provide
the facilities and services proposed.
C. Certifications. The applicant has or can reasonably
secure necessary certificates from the FAA or other
authority required for the activity proposed.
D. Insurance. That the applicant has or can furnish
suitable indemnity insurance or bond to protect and
hold harmless Monroe County from any liability in
connection with the conduct of the activity proposed.
V. Fixed Base Operations Standards
The following standards described herein are established
by the Commission as the minimum requirements with which
any Fixed Base Operator working to establish a full
service commercial aviation facility at a Monroe County
Airport must comply. It is understood that only minimum
standards are outlined herein and that any applicant
wishing to establish a Fixed Base Operation at a County
airport must negotiate a lease agreement with the Commis-
sion which will contain additional contractual provisions
that are not described herein.
A. Primary Services. Primary commercial aeronautical
support services shall consist of those services
rendered directly to general aviation aircraft, which
are identified as all aircraft using the airport
except the aircraft of certificated air carriers who
are tenants of the airport. Such services must
10
include, but not be necessarily limited to, aircraft
arrival guidance; flight line servicing, including
the sale and enplaned delivery of aviation fuel and
petroleum products; providing minor airframe, power
plant, and avionics maintenance service to aircraft
and aircraft equipment and accessories as from time
to time may be required by aircraft operating or
based at the airport; ramp assistance to aircraft,
including aircraft parking, storage, and tiedown
services; gratuitous passenger transportation servic-
es between the demised premises and other places of
origin and destination on the airport for lessee's
patrons arriving in non-commercial aircraft; provid-
ing emergency service to disabled aircraft on the
airport, including towing or transportation of
disabled aircraft having a gross landing weight not
in excess of 12,500 pounds to the demised premises at
the request of the owner or operator of the disabled
aircraft or the Airport Director.
B. Secondary Services. In addition to the foregoing,
the Fixed Base Operator may provide Secondary Commer-
cial Aeronautical Support Services. it is understood
that providing these services by the Fixed Base
Operator is strictly at his own election. However,
if he so elects, he must comply with the minimum
standards outlined below. A Fixed Base Operator
providing these additional services will be offered a
longer lease term than a Fixed Base Operator provid-
ing only Primary Services. The Secondary Commercial
Aeronautical Support Services shall consist of those
services generally offered at any airport which are
11
not classified as being in primary support of air-
craft using the airport. Such services shall include
but not be limited to:
1. General. Providing major airframe, power plant,
avionics maintenance service to aircraft and
aircraft equipment and accessories as is from
time to time required by aircraft operating or
based at the airport; charter or rental of
aircraft, with or without pilot; air taxi
service; sightseeing services; cargo handling;
the sale or brokerage of new or used aircraft
parts and accessories; meteorological services,
aerial photography and surveying; the mainte-
nance and servicing, including fueling, of
aircraft ground servicing equipment of other
tenants of the airport; and the sale from
vending machines or similar facilities located
within the demised premises of convenience
foods, amenities, and non-alcoholic beverages,
provided that such sales shall be limited to
aeronautical customers of lessee, and shall not
be made in the form of a restaurant operation,
and shall be strictly limited to vending ma-
chines or similar facilities for the convenience
of other than airline passengers.
2. Flight Instruction. The operation of an FAA
approved flight school so as to provide instruc-
tion from primary flight training through and
including qualifying for an A.T.R.
12
3. Aircraft Charter, Air Taxi and Sightseeing
Services. Providing pilots for the operation of
aircraft owned by others and to carry passengers
and freight for hire, on a non-scheduled basis,
which shall include sightseeing privileges,
subject to all appropriate laws and regulations
of the Federal Government, the State of Florida,
the requirements of the FAA, or any other duly
authorized governmental agency.
C. Exclusions. The following concessions and the
establishment thereof shall be specifically excluded
from the lease of any Fixed Base Operator:
1. Ground transportation for hire
2. Western Union and/or other commercial telecommu-
nications services
3. Auto rental services
4. News and sundry sales
5. Barber, valet and personal sales
6. Wholesale or retail sale of non-aviation prod-
ucts
7. Automotive gasoline station
S. Automotive or marine maintenance and repair
service for vehicular or marine equipment of the
general public or other tenants of the Airport
D. Detailed Requirements. A Fixed Base Operator wishing
to engage in a business on the airport, which must
include all of the services classified as primary and
may include secondary commercial aeronautical support
services hereinbefore described, will also be re-
quired to meet the following detailed requirements:
13
1. Investment. The minimum investment in facili-
ties, tools, and equipment excluding aircraft to
provide Primary Services at the airport is
$300,000, part of which may be satisfied by the
leasing of existing facilities, the value of
which shall be determined by the commission.
The minimum investment in facilities, tools, and
equipment to provide Secondary Service is an
additional $300,000.
2. Premises. Each Fixed Base Operator must lease a
minimum of two (2) acres of airport property for
Primary Service and an additional one (1) acre
for Secondary Services in the area designated by
the Commission. This requirement may be modi-
fied based upon availability of land.
3. Construction.
a) Tiedowns. Tiedown facilities must at all
times be provided for a number of aircraft
at least equal to the number, type and size
of aircraft owned by the operator and/or
based at the operator's facilities, plus an
additional minimum of thirty (30) tiedown
facilities for transient aircraft. This
requirement may be modified based upon
availability of land.
b) Hangars. Hangars constructed or leased
from the Commission for the rental of space
for aircraft storage or for aircraft and
engine repair, shall not be less than 4800
square feet in floor area. The quality and
design of all hangars to be constructed is
14
subject to approval by the Commission
prior to construction.
c) Auto Parking. A hard surfaced automobile
parking area, adjacent to the main build-
ing, with a minimum of twenty spaces will
be required, subject to availability of
land.
d) Site Plan. All site, building and facili-
ties location, plans for the area leased
must be reviewed and approved by the
Airport Director.
e) Utilities. All proposed utilities to be
brought into the property must be reviewed
and approved by the Airport Director.
f) Building Codes, Permitting Requirements,
Regulations and Standards. All construc-
tion, including facility installations and
building structures must comply with all
appropriate local, state, and federal
building, structural, electrical, HVAC,
plumbing, mechanical, fire, flood, and
health protection codes, permitting re-
quirements, regulations and standards as
applicable and established by the appropri-
ate governmental agencies.
g) Final Approval Authority. All of the
proposed construction and improvements will
be subject to the final approval authority
of the Commission.
4. Sale of Aviation Petroleum Products, Ramp
Service and Storage. A Fixed Base Operator is
15
authorized to receive, store, and dispense at
retail; aviation fuel, oil, and other aviation
petroleum products. The following minimum
services are to be provided;
a) Aircraft Parking Apron and Service Ramp.
Lease from the Commission or provide with
the approval of the commission a minimum of
two (2) acres (subject to availability of
land) of Portland Cement Concrete or
asphalt paved areas with tiedown facilities
as described in Section V.D. (3) (a) for
based and transient aircraft parking apron
with access or accesses to taxiways. The
type of pavement and pavement section
thickness shall be determined by the
Airport Director. The minimum area of the
corresponding transient or service ramp
shall be approved by the Commission.
b) Fuel Tank Farm and Refueling Vehicles.
Provide and maintain a minimum of 20,000
gallons aviation fuel storage capacity,
meeting all applicable local, state, and
federal safety and permitting requirements
in a location acceptable to the Commission,
for each grade of aviation fuel usually
required for aircraft using the airport.
In this regard 100 octane aviation gasoline
and Jet A aviation kerosene base fuel,
shall be available at all times. FRO shall
operate and maintain in good condition an
adequate number of aircraft refueling
16
vehicles for each type of product sold.
Each refueling vehicle shall be of adequate
volume and pumping capacity to sufficiently
service these aircraft normally using the
airport.
c) Pumping Equipment. Provide and maintain
pumping equipment meeting all applicable
local, state, and federal safety and
permitting requirements with reliable
metering devices subject to state and
independent inspection and with a pumping
efficiency and capacity capable of servic-
ing those aircraft normally using the
airport.
d) Hours of Operation. Have personnel on duty
at all times during normal business hours
of 0800 to 1800 seven days a week and at
such other times as is necessary to satisfy
reasonable demands for aircraft services.
e) General Aviation Terminal Building
Facilities. Construct in a location
approved by the Commission, or lease from
the Commission building space with a
minimum of 600 square feet, comfortably
heated and air conditioned with waiting
rooms for passengers and crew of aircraft,
including sanitary restrooms and public
telephone. Design and construction plans
for the facility must be reviewed,
approved, and/or permitted by all applica-
ble local, state, and federal agencies, and
17
approved by the Commission prior to con-
struction of the facility.
f) Ground Rods. Install at all fixed fueling
locations adequate grounding rods to reduce
the hazards of static electricity.
g) Flight Line Repairs. A Fixed Base Operator
shall demonstrate a capability to perform
minor aircraft and engine repairs of the
type generally known as flight line re-
pairs.
5. Insurance.
a) General. A Fixed Base Operator shall
maintain all required insurance and bonds
with insurance underwriters authorized to
do business in the State of Florida satis-
factory to the Commission. All policies
shall name Monroe County, as additional
insured. The Fixed Base Operator shall
furnish the Commission with a certificate
of insurance showing such insurance/bonds
to be in full force and effect during the
entire term of the contract. All policies
shall contain a provision that written
notice of cancellation or any material
change in the policy by the insurer will be
delivered to the Airport Director thirty
(30) days in advance to the effective date
of such cancellation or change.
b) Fire, Extended Coverage and Vandalism. The
Fixed Base Operator shall at its sole cost
and expense, cause all improvements on the
18
demised premises to be kept insured to the
full replacement value thereof, against
the perils of fire, extended coverage, and
vandalism and in the amounts customary
against the perils of explosion from
boilers and pressure vessels, sprinkle
leakage and like perils. The proceeds of
any such insurance paid on account of any
of the perils aforesaid, shall be used to
defray the cost of repairing, restoring or
reconstructing said improvements.
c) Indemnity. The Fixed Base Operator shall
assume all risks incident to, or in connec-
tion with, its business to be conducted and
shall be solely responsible for all acci-
dents or injuries of whatever nature or
kind to persons or property caused by its
operations at the airport, and shall
indemnify, defend and harmless Monroe
County, . its elected and appointed offi-
cials, employees, authorized agents and
representatives from any penalties for
violation of any law, ordinance or regula-
tion affecting its operation, and from any
and all claims, suits, losses, damages or
injuries to persons or whatsoever kind of
nature arising directly or indirectly out
of such business, or resulting from the
carelessness, negligence, or improper
conduct of the Fixed Base Operator, or any
of its agents or employees.
19
d) Commercial General Liability. The Fixed
Base Operator will be required to provide
Commercial General Liability Insurance in
the amount of not less than $1,000,000
combined single limit, which shall apply
with respect to liability because of injury
to persons or destruction of aircraft or
aircraft parts, including the loss of use
of aircraft, which are the property of
others and are in the custody of the Fixed
Base Operator for storage, repair or
safekeeping in or on the airport.
At all times during the term of the lease
the limit of liability must be such that in
the event of a loss the Fixed Base Operator
will be completely insured with respect to
any one accident. In accordance with
paragraph 5C, Indemnity.
e) Performance Bond. Prior to the commence-
ment of any construction a Fixed Base
Operator will provide and deliver to the
Commission a Performance Bond in the amount
of the budget estimate for all construction
costs, which shall be conditioned upon the
full and faithful performance by the Fixed
Base Operator of all duties, responsibili-
ties and obligations to design and con-
struct all building, hangar and/or associ-
ated facilities herein required.
20
6. Fees. In addition to land rental and other fees
established during lease negotiations, the
Commission may, from time to time, establish
other fees such as:
a) Fuel Flowage Fees. If Monroe County so
elects to establish a fuel flowage fee, the
Fixed Base Operator will pay the county the
fee for aircraft fuel pumped into aircraft
for any purpose, except for that fuel
pumped into aircraft exempt from fuel
flowage fees pursuant to agreement with
Monroe County, the terms to be finalized at
the time of establishment.
b) Airport Usage Fee. Monroe County may also
elect to establish an airport usage fee.
In that event, the Fixed Base Operator will
be required to pay the fee based on a
percentage of the Gross Receipts (hereinaf-
ter defined) received by the Fixed Base
Operator from all commercial operations
conducted on, in or from the leased premis-
es, the terms to be finalized at the time
of lease negotiations.
(1) Gross Receipts. The term "Gross
Receipts" shall consist of all revenue
received or realized by or accruing to
the Fixed Base Operator from all
sales, for cash or credit, of servic-
es, products or other merchandise made
pursuant to the privileges authorized
by its agreement with the county,
21
excluding revenue derived from the
sale of aircraft fuels. All revenues
shall be deemed to be received at the
time of the determination of the
amount due the Fixed Base Operator for
each transaction, whether for cash or
credit, and not at the time of billing
payment. Any taxes imposed by law
which are separately stated and paid
for by the customer, and which are
directly payable to the taxing author-
ity by the Fixed Base Operator, shall
be excluded from the receipts of the
Fixed Base Operator for the computa-
tion of the percentage assessment.
7. Term of Lease. The lease term that will be
granted to a Fixed Base Operator meeting all of
the standards for providing Primary Services
hereinbefore set forth will be for a period of
five (5) years with an option to renew for one
(1) additional five (5) year period, subject to
renegotiations of fees and charges in addition
thereto. The contract amount agreed to herein
may be adjusted annually in accordancewith the
percentage change in the Consumer Price Index
(CPI) for Wage Earners and Clerical Workers in
the Miami, Florida area index, and shall be
based upon the annual average CPI computation
from January 1 through December 31 of the
previous year. A Fixed Base Operator providing
Secondary Service will be allowed the option to
22
renew for two additional five (5) year periods,
also subject to the renegotiation of fees and
charges in addition thereto.
VI. Partial or Individual Aeronautical Services
In the event a person desires to establish a business
on a Monroe County Airport which includes only a part
of the elements of primary and/or secondary
commercial aeronautical support services, excluding
sale of aviation fuel, as herein before defined, such
person, will be required to negotiate a lease with
the Commission upon terms, conditions, and standards
necessary for the protection of the public health,
welfare, and safety. In order to provide partial or
individual aeronautical services, it will be
necessary to meet the minimum requirements listed
under the specific category as described below. In
addition to the providers of individual services, all
Fixed Base Operators providing these services must
also meet the minimum requirements.
A. Flight Instruction and Aircraft Rental Services.
A provider in this category is authorized to
carry on flight and ground school instruction and
to rent aircraft. The following is required:
1. Personnel and Certifications. Have available
on a full time employment basis a minimum of
one (1) pilot appropriately rated, and with
all applicable and current Federal Aviation
Administration Instructor Pilot and Federal
Aviation Administration approved Medical
Certificates and possess all the required
Federal Aviation Administration approvals for
23
ground school curriculum.
2. Aircraft and Equipment. Provide and at all
times maintain, in accordance with FAA require-
ments, a minimum of one (1) aircraft owned or
leased by and under the exclusive control of the
Provider, which is properly equipped as required
by the FAA regulations and is certified for
flight instruction and rental.
3. Facilities. Construct in a location directed
by the Commission or lease from the Commission
for his exclusive use, a minimum of 500 square
feet of classroom and/or office space, to include
restrooms, unless same are provided under other
categories in a multi-category service. Design
and construction plans must meet the Detailed
Requirements described in V.D(3) (d) , (e) , (f)
and (g.) .
4. Obligations and Responsibilities. Obligation
and responsibility for determining that personnel
operating rental aircraft obtained from the
Provider have appropriate and current FAA Pilot
licenses, ratings, approved Medical Certificates,
and are capable of operating the aircraft to be
rented or leased, and knowledgeable of all
applicable airport rules.
5. Insurance. Furnish required insurance as
described in Section V.D. (5) (a) , (b) , (c) , (d)
and (e) .
B. Non-Scheduled Aircraft Charter, Air Taxi and Sight-
seeing Services. A Provider in this category is
authorized to operate a non-scheduled charter service
24
and non-scheduled air taxi service. Copies of all
applicable certificates required of the Provider by
the FAA shall be provided to the Commission. 2n
addition, the Provider shall meet the following
minimum requirements:
1. Personnel and Certifications. Have available on
a full-time employment basis a minimum of one or
two FAA certified pilots with current commercial
and instrument ratings and appropriate and
current FAA approved Medical Certificates as
crew for his aircraft. The number depends on
the type of aircraft used.
2. Aircraft and Equipment. Provide and at all
times maintain a currently certified and contin-
uously airworthy aircraft owned or leased by the
under the exclusive control of the Provider,
properly certificated and equipped for air
charter or air taxi service as required by
current FAA regulations.
3. Facilities. Construct a building in a location
directed by the Commission or lease from the
Commission for his exclusive use, a minimum of
500 square feet in a building to provide for
waiting and checking in of passengers, handling
of luggage, restroom facilities and public
telephone, (unless restrooms and telephone are
provided under other categories in a
multi-category proposal) , plus must provide
satisfactory parking and ground transportation.
Design and constructions plans for such
25
facilities must meet the Detailed Requirements
described in V.D. (3) (d) , (e) , (f) and (g) .
4. Insurance. Furnish required insurance as
described in Section V.D. (5) (a) , (b) , (c) , (d)
and (e) .
C. Aircraft Sales. A Provider in this category is
authorized to conduct an aircraft sales operation.
In this category, the Provider shall meet the follow-
ing minimum requirements:
1. Sales or Distributorship Franchise Agreement.
Have a sales or distributorship franchise
agreement from an aircraft manufacturer or a
substitute arrangement satisfactory to the
Commission.
2. Personnel, Certifications and Hours of Opera-
tion. Have available during normal working
hours of 0800 to 1800. FAA certificated and
currently airworthy aircraft for sale and
demonstration, with a minimum of one (1) fully
qualified demonstrator pilot employed with
current and appropriate FAA pilot ratings and
FAA approved medical certificates.
3. Customer and Warranty Services. Provider must
be able to offer customer and warranty services
for any new aircraft purchased as a part of the
sales or distributorship franchise agreement
with the manufacturer.
4. Facilities. Construct where directed by the
Commission, or lease from the Commission, for
his exclusive use, a minimum of 500 square feet
of office space to include restroom facilities.
26
The design and construction plans for this
building must meet the Detailed Requirements
described in Section V.D. (3) (d) , (e) , (f) and
(g) .
5. Insurance. Furnish required insurance as
described in Section V.D. (5) (a) , (b) , (c) , (d)
and (e) .
D. Aircraft, Engine, Propeller, and Accessory Mainte-
nance Services. A Provider in this category is
authorized to operate an aircraft, engine, propeller,
and accessory maintenance and overhaul facility. The
following services are to be provided:
1. Equipment, Personnel and Certifications.
Furnish facilities and equipment for airframe
and power plant repairs, and employ sufficient
qualified and certified A & P mechanics and such
other personnel to adequately serve the flying
public. Depending upon level (i.e. Individual,
Primary, or Secondary) such airframes and power
plant repair shall include facilities for both
major and minor repair of aircraft airframes and
power plants used in general aviation in Monroe
County.
2. Additional Services. If required, demonstrate
the ability to and assume responsibility for
promptly removing from the public landing area
as soon as permitted by cognizant FAA and Civil
Aeronautical Board Authorities, any disabled
aircraft upon request by the aircraft owner or
the Director of Airports.
27
3. Facilities Required by Primary and Secondary
Services Fixed Base Operators. For primary and
secondary service Fixed Base Operators, con-
struct in a location directed by the Commission
or lease from the Commission for his exclusive
use a minimum of 4800 square feet of hangar
space, and a minimum of 1000 square feet of
office, shop and storage space, plus sufficient
ramp space adjacent to the hanger for aircraft
parking. Design and construction must meet the
Detailed Requirements described in Section V.D.
(3) (d) , (e) , (f) and (g) .
4. Facilities Required by Individual Providers.
Individual providers of these services must
construct or lease in a location directed by the
Commission for his exclusive use 3000 square
feet of hangar space, and a minimum of 300
square feet of office, shop and storage space,
plus sufficient tiedown space in proximity of
the hangar for aircraft parking. Design and
construction must meet the Detailed Requirements
described in Section V.D. (3) (d) , (e) , (f) and
(g) .
5. Insurance. Furnish required insurance as
described in Section V.D. (5) (a) , (b) , (c) , (d)
and (e) .
E. Avionics and Instrument Repair Service. A Provider
in this category is authorized to operate a avionics
and instrument repair station. The following minimum
services shall be provided:
28
1. Construct in a location directed by the Commis-
sion or lease from the Commission for his
exclusive use a minimum of 500 square feet of
shop and storage space, and, if available,
sufficient ramp space adjacent to the facility
for the parking of aircraft and/or storage and
aircraft being worked on. Otherwise, provider
must make satisfactory arrangements, acceptable
to the Commission, for access to and/or storage
of aircraft being worked on. Design and con-
struction plans to be completed by the Provider
shall meet the Detailed Requirements described
in Section V.D. (3) (d) , (e) , (f) and (g) .
2. Have available on a normal full-time basis FAA
certificated technicians in the field of air-
craft electronics and aircraft instruments
repair, with proper Federal Communications
Commission license to conduct complete aircraft
transmitter, receiver and antennae repair.
F. Other Commercial Aeronautical Activities. All
commercial activities not covered by the foregoing,
shall be subject to specific agreements and approval
by the Commission. Prior to the consideration by the
Commission of such activities, a letter of applica-
tion, explaining in detail the nature of the opera-
tion shall be submitted to the Airport Director by
the prospective tenant who shall determine the
requirements for such activities and notify the
prospective tenant thereof. The Commission may
designate the location and size of areas in which any
commercial activities may be carried on and the
29
Commission may enter into a lease or agreement with
such applicant authorizing and permitting him to
function on the airport. No such commercial activity
shall be started or conducted without written permis-
sion from the Commission.
VII. Background Investigation
All persons desiring to establish a business at a Monroe
County Airport will be subject to the investigation of
their aviation experience, financial ability, credit
rating and other conditions usually used in good business
practice to determine a person's ability to perform and
fulfill the requirements of a contract of lease.
VIII. Right to Modify
The Commission reserves the right to modify these
standards from time to time as may be required for the
benefit of the general public and for proper and
efficient operation of the airport.
IX. Precedence
In the event of any conflict between the terms of these
minimum standards and the provisions of any lease, the
provisions of the lease shall be controlling.
30
EXHIBIT C
BOCC
APRIL 20, 2016
MONROE COUNTY, FLORIDA
RISK MANAGEMENT
POLICY AND PROCEDURES
CONTRACT ADMINISTRATION
MANUAL
General Insurance Requirements
for
Airport/Aircraft Activities
Prior to the commencement of work governed by this contract (including the pre-staging of
personnel and material), the FBO shall obtain, at his/her own expense, insurance as specified in
the attached schedules, which are made part of this contract. The FBO will ensure that the
insurance obtained will extend protection to all Contractors/Sub-Contractors engaged by the
FBO.
The FBO will not be permitted to commence work governed by this contract(including pre-
staging of personnel and material) until satisfactory evidence of the required insurance has been
furnished to the County as specified below.
The FBO shall maintain the required insurance throughout the entire term of this lease and any
extensions specified in any attached schedules. Failure to comply with this provision may result
in the immediate suspension of all activities conducted by the FBO and it's Contractors/Sub-
Contractors until the required insurance has been reinstated or replaced.
The FBO will be held responsible for all deductibles and self-insured retentions that may
be contained in the FBO's Insurance policies.
The FBO shall provide,to the County, as satisfactory evidence of the required insurance, either:
• Certificate of Insurance
or
• A Certified copy of the actual insurance policy.
The County, at its sole option, has the right to request a certified copy of any or all insurance
policies required by this lease.
All insurance policies must specify that they are not subject to cancellation, non-renewal,
material change, or reduction in coverage unless a minimum of thirty(30) days prior notification
is given to the County by the insurer.
The acceptance and/or approval of the FBO's insurance shall not be construed as relieving the
FBO from any liability or obligation assumed under this contract or imposed by law.
EXHIBIT C
BOCC
April 20, 2016
ALL RISK PROPERTY
INSURANCE REQUIREMENTS
FOR
LEASES/RENTALS OF
COUNTY-OWNED PROPERTY
Prior to the Lessee occupying the leased property that is the subject of this agreement,the Lessee
shall obtain All Risk Property Insurance (to include the perils of Flood and Wind)with limits no
less than the Full Replacement Cost Value of all structures/improvements currently located on
the leased property and all structures/improvements that will be constructed by the FBO in the
future. Coverage shall be maintained throughout the life of the lease and shall include, as a
minimum, coverage for:
Fire Lightning Vandalism
Sprinkler Leakage Sinkhole Collapse Falling Objects
Windstorm Smoke Explosion
Civil Commotion Aircraft and Vehicle Damage Flood
The Monroe County Board of County Commissioners shall be named as Loss Payee on all
policies issued to satisfy the above requirements.
EXHIBIT C •
BOCC
April, 20,2106
POLLUTION LIABILITY
INSURANCE REQUIREMENTS
FOR
LEASES/RENTALS OF
COUNTY-OWNED PROPERTY
Recognizing that the work governed by this contract involves the storage, treatment, processing,
or transporting of hazardous materials, the FBO shall purchase and maintain, throughout the life
of the contract, Pollution/Environmental Liability Insurance which will respond to bodily injury,
property damage, environmental damage, contamination, remediation, restoration, clean-up
costs, and defense caused by, as a result of, or arising from a pollution incident.
The minimum limits of liability shall be:
$1,000,000 per Occurrence/$2,000,000 Aggregate
If coverage is provided on a claims made basis, an extended claims reporting period of four (4)
years will be required.
The Monroe County Board of County Commissioners shall be named as Additional Insured on
all policies issued to satisfy the above requirements.
EXHIBIT C
BOCC
April 20, 2016
WORKERS' COMPENSATION
INSURANCE REQUIREMENTS
FOR
LEASES/RENTALS OF
COUNTY-OWNED PROPERTY
Prior to the commencement of work governed by this contract, the FBO shall obtain Workers'
Compensation Insurance with limits sufficient to respond to the applicable Workers'
Compensation state statutes and the requirements of Florida Statute 440.
In addition,the FBO shall obtain Employers' Liability Insurance with limits of not less than:
$1,000,000 Bodily Injury by Accident
$1,000,000 Bodily Injury by Disease,policy limits
$1,000,000 Bodily Injury by Disease, each employee
Coverage shall be maintained throughout the entire term of the contract.
Coverage shall be provided by a company or companies authorized to transact business in the
state of Florida.
Tithe FBO has been approved by the Florida's Department of Labor, as an authorized self-
insurer, the County shall recognize and honor the FBO's status. The FBO may be required to
submit a Letter of Authorization issued by the Department of Labor and a Certificate of
Insurance,providing details on the FBO's Excess Insurance Program.
If the FBO participates in a self-insurance fund, a Certificate of Insurance will be required. In
addition, the FBO may be required to submit updated financial statements from the fund upon
request from the County.
Marathon General Aviation - Exhibit B BOCC - December 19, 2018
APPRAISAL REP:::ORT
Restricted.Appraisal Report
Property Commonly:Known as:
•
MARATHON GENERAL AVIATIONFBO
•
FLORIDA KEYS MARATHON INTE'RNATIONALi AIRPORT
• • : • 9850 OVERSEAS HIGHWAY
MARATHON,FLORIDA_33050
Property.Type:.
AIRPORT FIXED BASE OPERATOR::•
•
Prepared For: •
: ..
MR.THOMAS J.HENDERSON.
: ASSISTANT DIRECTOR OF AIRPORTS
FLORIDA KEYS MARATHON INTERNATIONAL AIRPORT
9400 OVERSEAS HIGHWAY;
MARATHON,FLORIDA:33050 : .. .. •
Inspection:& Valuation Date:. .
.•. January 25,2018.. . . .
Prepared By:
James Wilson,MRICS,President Richard Padron, CCIM,MSA
• State-certified general real estate appraiser State-certified general real estate appraiser •
:RZ 2164 RZ 544_ ...: .
. . APPRAISAL COMPANY OF KEY WEST
3144 NortlisideDrive, Suite 201 . ,. . •
Key West,Florida 33040
OUR FILE NO.: 104-1:8 : •
3144 Northside Drive Ste 201
3
APPRAISAL Co . OfKey West,FL 33040
fiee:(30)29 63
Fax:(305)922-2119
OF KEY WEST 1Vebsite.1ia-keysapp raisuls.eom
E-mail:jimra?tla-keysapprvisals.com
February 23, 2018
Mr. Thomas J. Henderson
Assistant Director of Airports
Florida Keys Marathon International Airport
9400 Overseas Highway
Marathon, Florida 33050
RE: Fair Market Rent Analysis
Marathon General Aviation FBO
Florida Keys Marathon International Airport
9850 Overseas Highway
Marathon, Florida 33050
Our File No.: 104-18
Dear Mr. Henderson:
We have performed an appraisal assignment to estimate the market rent for the above referenced
property, commonly known as a portion of the Marathon General Aviation FBO located at the Florida
Keys Marathon International Airport. Market Rent is the rental income that a property would most likely
receive in the open market as indicated by current rents paid and asked for comparable space.
The subject property consists an existing fixed base operator located in the Florida Keys Marathon
International Airport. The subject site dimensions are 1,500 feet in length by 250 feet in depth, a total
of 375,000 square feet or 8.61 acres. The subject is currently improved with three buildings. The main
building has a two-story reception/office area attached to a 150 foot by 100 foot hanger. This building
has a total of 21,486 square feet. The second building which was severely damaged during Hurricane
Irma is CBS/masonry which was utilized for charter service contains 600 square feet. The third building
is an engineered free span metal building which measures 100 feet by 72 feet utilized as a hanger. The
total gross building area is 29,286 square feet.
The subject property is located in the southeasterly quadrant of the Florida Keys Marathon International
Airport. A survey and building plans were not made available. The appraisers utilized field dimensions
taken during our site visit as well the Monroe County Property Appraisers Records. A site plan of the
subject property was provided and included in the addendum section of this report.
Mr. Thomas J. Henderson, Assistant Director of Airports
Florida Keys Marathon International Airport
February 23, 2018
Page 2
Based on analysis of market rental rates for similar FBO land leases within the subject's market area, it
is our opinion that on January 25,2018,when a site visit and market analysis of the subject property was
made, commonly known as Marathon General Aviation FBO, 9850 Overseas Highway, Marathon,
Florida, that the Fair Market Rent, on a modified gross basis, is as follows:
Fair Annual Market Base Rent(Rounded): $ 138,000.00
Fair Monthly Market Base Rent(Rounded): $ 11,500.00
Fair Annual Base Rent/Sq.Ft. of Land Area: $ 0.368
Modified Gross terms require the tenant to be responsible for all utilities including electric,water,sewer,
solid waste collection,telecommunications service,building and hazard insurance and normal cleaning
service and routine maintenance of the premises,while the landlord is responsible for real estate taxes,
property management and reserves. However,because the subject property is located on a government
agency site there is no real property tax burden.
A restricted appraisal report is attached. Further,documentation and supporting data are retained within
the appraisers' workfiles. If you have any questions regarding this appraisal report, please feel free to
contact us. Thank you for giving us the opportunity to provide this service for you. This transmittal
letter must remain attached to the report, which contains 34 pages including related exhibits, in order
for the value opinion set forth to be considered valid.
Sincerely,
/r d 7'� - E
James E. Wilson, MRICS, President Richard Padron, CCIM, MSA
State-certified general real estate appraiser State-certified general real estate appraiser
RZ 2164 RZ 544
email: iim@fla-keysappraisals.com email: richardp 2 fla-keysappraisals.com
Restricted A.sraisal Resort Marathon General Aviation -Fair Market Rent Anal sis
RESTRICTED APPRAISAL REPORT
This is a Restricted Appraisal Report which is intended to comply with the reporting requirements set
forth under S.R. 2-2 (b) of the Uniform Standards of Professional Appraisal Practice. As such, it
presents limited discussion of the data, reasoning, and analyses that were used in the appraisal process
to develop the appraiser's opinion of value. Supporting documentation concerning the data,reasoning,
and analyses is retained in the appraiser's original file. The depth of discussion contained in this report
is specific to the needs of the client and for the intended use stated later in the report. The appraisers are
not responsible for unauthorized use of this report.
Furthermore, in accordance with prior agreement between the client and the appraisers the Cost, Sales
Comparison and Income Approaches are not considered due to the scope of work. All or some of these
approaches may generally be considered meaningful in appraising a property of this type; however,the
assignment was to indicate only the Fair Market Rent for the subject property.
CLIENT: Mr. Thomas J. Henderson
Assistant Director of Airports
Florida Keys Marathon International Airport
9400 Overseas Highway
Marathon, Florida 33050
APPRAISERS: Mr. Richard Padron, CCIM, MSA
State-certified general real estate appraiser
RZ 544
James E. Wilson, MRICS, President
State-certified general real estate appraiser
RZ 1627
SUBJECT: Marathon General Aviation FBO
Florida Keys Marathon International Airport
Marathon, Florida 33050
Appraisal Company of Key West Page 1
Restricted As iraisal Resort Marathon General Aviation -Fair Market Rent Anal sis
SCOPE OF WORK: The scope of work for the attached appraisal assignment includes a site visit and
to estimate the Market Rent based on a modified gross basis. All appraisals begin by identifying the
subject property(property to be appraised) and the appraisal problem. All data relevant to the subject
property are obtained from various sources and collected. Next,the rent comparables are researched and
analyzed and used in preparing the report in supporting the indicated value.
PURPOSE OF THE APPRAISAL: To estimate the Fair Market Rent for the subject property known
as the Marathon General Aviation FBO including the new 7,200 square foot hanger.
Market Rent is defined as"The most probable rent that a property should bring in a competitive
and open market reflecting all conditions and restrictions of the specified lease agreement,
including permitted uses,use restrictions,and expense obligations,terms,concessions,renewal
and purchase options, and tenant improvement."
The Dictionary of Real Estate Appraisal, 6th Edition, as published by the Appraisal Institute in
2015.
This report contains the results of our investigation and analysis made in order to furnish an estimate of
the "As Is"Market Rent of the Fee Simple Interest of the property described herein. The Fee Simple
Interest is the unencumbered value of the subject property; basically, market rents and terms are
considered with no regard to existing leases and terms.
INTENDED USE AND INTENDED USER OF THE REPORT: The intended user is Mr. Thomas
J. Henderson, Assistant Director of Airports, Florida Keys Marathon International Airport, County of
Monroe, Florida. The intended use is for the sole purpose of assisting the Monroe County Assistant
Director of Airports in lease negotiations for the subject property.
LEGAL DESCRIPTION: A tract of land in a Part of the Florida Keys Marathon International Airport
Property in the City of Marathon,Florida as described in the attached site plan,which is included in the
Addendum section of this report. According to Google Earth,the Latitude and Longitude for each corner
of the proposed site indicated by is:
Northwest Corner- 24° 43' 36.09"N
81° 02' 51.56" W
Appraisal Company of Key West Page 2
Restricted A..raisal Resort Marathon General Aviation -Fair Market Rent Anal sis
Northeast Corner- 24° 43' 42.08"N
81° 02' 36.51" W
Southwest Corner- 24° 43' 34.16"N
81° 02' 50.64" W
Southeast Corner- 24° 43' 39.64"N
81° 02' 25.33" W
A site plan of the subject property was provided by the client. According to the site plan, the subject
property fronts 1,500 linear feet along the service road to the Florida Keys Marathon International
Airport which runs parallel to the Overseas Highway and 250 feet in depth for a total of 375,000 square
feet or 8.61 acres.
INTEREST VALUED: Fair Market Rent
EFFECTIVE DATE OF VALUE: January 25, 2018
APPRAISAL DEVELOPMENT AND REPORTING PROCESS:
In preparing this restricted appraisal report to determine the Fair Market Rent for the subject property,
we researched market rent of comparable commercial use properties in the subject's market area. The
subject property consists of a 375,000 square foot or 8.61 acre site that is currently improved with three
building utilized as an airport fixed base operator. The main building which consists of an engineered
metal free-span structure that incorporates a two-story reception/office area attached to a 150 foot by 100
foot airplane hanger. This building has a total of 21,486 square feet of gross building area. The second
building is a CBS/masonry structure contains 600 square feet of gross building area.This building was
severely damaged during Hurricane Irma and was formerly utilized for charter services. According to
Mr. Thomas J. Henderson,Assistant Director of Airports,the lessee is going to renovate this building.
The third building is an engineered free-span metal structure which measures 100 feet by 72 feet,a total
of 7,200 square feet,that is utilized as an aircraft hanger. The total gross building area is 29,286 square
feet.
The subject property is located on the southeastern quadrant of the Florida Keys Marathon International
Airport. The subject is accessed from a service road that is parallel to the Overseas Highway in
Appraisal Company of Key West Page 3
Restricted A•iraisal Resort Marathon General Aviation-Fair Market Rent Anal sis
Marathon or by the taxiway of the airport.
Fair Market Rent Analysis:
Commercial FBO and aircraft hanger lease within the market area were researched in order to analyze
the rental rates on an annual rental rate per square foot of land area and gross building area per annum.
Recently negotiated leases within the Florida Keys market area were available. First, we analyzed
comparable FBO rents within the Florida Keys Marathon International Airport and Key West
International Airport. Our analysis is for the base rent which includes the building and ground lease
only,but does not include the extra fuel fee or parking fee in the current leases. The rent comparables
considered are summarized on the following page:
Appraisal Company of Key West Page 4
Restricted A s sraisal Re sort Marathon General Aviation-Fair Market Rent Anal sis
Commercial Rent Ground Lease Comparables
Commercial Ground Lease Rent Comparables
Sq.Ft. Sq.Ft. Annual Annual Annual Total Site GBA Lease
Site GBA Base Parking/Cargo Fuel Annual Area Rent Term
No. Location Type Use Area Area Rent Fee Fee Rent $/Sq.Ft. $/Sq.Ft. FAR "NN"
I Marathon General Aviation FBO 375,000 22,086 $128,717.52 $13,646.44 $15,343.98! $157,708E $0.34 i $7.14 5.9% Modified Gross
2 Marathon Jet Center FBO 250,000 20,657, $60,080.94 $0.00 $66,829.541 $126,9101 $0.24 $6.14 8.3% Modified Gross
3 Signature Flight Support ?FBO 374,216 23,9291 $157,859.23 $1,200.00 $62,765.00E $221,824Ea $0.42 $9.27 6.4% Modified Gross
�
4 Antique Aircraft Restoratio Museum/Mai tenance , 38,980 13,992i $57,749.16 $0.00 $0.00i $57,7491 $1.48 i $4.13 35.9% Modified Gross
5 Federal Express(Marathon';Cargo/Freight 9,565 2,000 $35,969.28 $0.00E $0.00 $35,969 $3.76 $17.98 20.9% Modified Gross*
Subject Property i 375,000 29,286 7.8%
*Note:Utilities Reimbursement Mean $1.25 $8.93
Median $0.42 $7.14
Minimum $0.24 $4.13
Maximum $3.76 $17.98
Appraisal Company of Key West Page 5
Restricted A s s raisal Resort Marathon General Aviation-Fair Market Rent Anal sis
a. Valuation -Regression Analysis:
After analyzing the airport fixed base operator lease comparables within the market area, we
considered this method to be viable. These five comparables were the most similar and were
regarded to be reliable in estimating the subject's base market rent. Due to the lack of paired
sales data,percentage adjustments and/or comparisons were not utilized. Instead,we considered
a regression analysis of the comparables based on reasonable units of measure. The appraisers
found a tight correlation between the gross building area size and the annual base market rent.
The statistical analysis or power trend analysis regression model is a quantitative technique used
to identify and measure adjustments to the gross building area size of comparable properties.
Regression analysis is a widely used model in both appraisal practice and in related real estate
research,as it is similar to the Sales Comparison technique of matched paired data. The use of
regression model relates to traditional sales comparison, whereby, the influence of sale prices
per square foot and property size to the subject property in relation to their mean or average.
Regression produces both a point estimate of value (mean) and an objectively determined
measure of dispersion (standard deviation or standard error) around the point estimate. The
greater the number of sample size the greater the statistical significance and the closer to a 1:1
correlation the more assured is the resultant value.
The x-variable is the gross building area size for each comparable. The y-variable, dependent
variable, is the comparable's annual base market rent per square foot. This data population
sample of the comparable sales indicates a reasonable correlation which is measured by the R2
of the data set. In the case at hand, a correlation RZ of+0.559 was indicated in our model.
Correlations near 1.0 are considered most reliable; therefore, the subject's correlation is
considered reliable,and the population sample appears appropriate in our valuation model and
can be considered credible in the units of measure for the subject property.
Accordingly, the appraisers have ranked the rent comparables based on the site size from the
smallest to the largest. The following table and graph depicts our trend analysis.
Appraisal Company of Key West Page 6
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Restricted A raisal Resort Marathon General Aviation-Fair Market Rent Anal sis
Dollar per Square Foot - Power Curve Trend Analysis
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y=283.66x0.38
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R2=0.5592
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Appraisal Company of Key West Page 8
Restricted AI s raisal Re sort Marathon General Aviation-Fair Market Rent Anal sis
In equation form,the regression model looks like this:
Y=283.66x°38
Y=$283.66 X 29,286-038 sq.ft. = $5.70/sq.ft.
Subject Property Market Rent:
29,286 sq.ft.X$5.70/sq.ft.=$166,930-$28,990=$137,940 Annual Base Rent(additional fees
not included)
Annual Market Rent of the Subject Property via the Sales Comparison Approach, as of
January 25,2018 (Rounded) Is S 138,000
Valuation Conclusion:
Potential Lease Schedule for Subject Property
Marathon General Aviation FBO
Monthly Annual
GBA Base Base Annual Annual Lease
Type of Use Site Size Area (SF) Rent(Rnd.) Rent(Rnd.) $/SF GBA $/SF Land Term
FBO 375,000 29,286 $11,500.00 $138,000.00 $5.70 $0.368 Modified Gross
The subject property's annual base market rent equals$0.37 per square foot of site area, $5.70
per square foot of gross building area or$138,000. The indicated base rent is slightly below the
Signature Flight Support comparable sales at the Key West International which has superior
location. This comparable has a very similar gross building area and land area to the subject
property. The gross building area and value per square foot are inversely related,in other words
the smaller the building size the higher the dollar per square foot. The above table and chart
show the comparables based on gross building area from smallest to largest indicating the
location of the subject property, as further support. Our analysis is for the base rent which
includes the building and ground lease only, but does not include the extra fuel fee or parking
fee in the current leases. Those fees would be over and above the base rent.
The subject property's rental rate is based on modified lease term whereby the tenant is
responsible for all utilities including electric, water, sewer, solid waste collection,
telecommunication. Modified Gross terms require the tenant to be responsible all services and
routine maintenance of the premises, while the landlord is responsible for real estate taxes,
property management and reserves. Upon research of recently negotiated leases,modified gross
terms appear to be more prevalent for properties within the airport because there are on tax
Appraisal Company of Key West Page 9
Restricted A.sraisal Re sort Marathon General Aviation-Fair Market Rent Anal sis
exempt property.
Typical lease terms are negotiated for five to twenty years with Consumer Price Index as an
escalator. Though sometimes there is a minimum percentage escalator depending on the type
of business.
HIGHEST AND BEST USE:
Highest and Best Use "as if" Vacant: Airport/Heliport and Related Services as permitted by zoning.
Highest and Best Use "as Improved": Fixed Base Operator as improved.
ESTIMATED EXPOSURE TIME: Most of the comparable facilities leased outside of the airport
have taken from six months to a year to get leased, due to the upturn in the economy. However, due to
the limited supply of commercial space surrounding the airport, the demand would be much greater.
Exposure time for the subject property is estimated at three to eight months because of the limited supply
and special use.
Appraisal Company of Key West Page 10
Restricted A.sraisal Resort Marathon General Aviation -Fair Market Rent Anal sis
ASSUMPTIONS AND LIMITING CONDITIONS
1. This is a restricted appraisal report which is intended to comply with the reporting requirements
set forth under Standard Rule 2-2 (b) of the Uniform Standards of Professional Appraisal
Practice for a restricted appraisal report. As such, it does not include discussions of the data,
reasoning,and analyses that were used in the appraisal process to develop the appraisers'opinion
of value. Supporting documentation concerning the data,reasoning,and analyses is retained in
the appraisers'file. The values contained herein are estimated based on limited data which was
made available; any discrepancies found in data may affect the value indications herein. The
appraisers are not responsible for the unauthorized use of this report.
2. No responsibility is assumed by the Appraisers for matters which are of legal nature,nor is any
opinion on the title rendered herewith. Good title is assumed as a title search was not made
available.
3. The property has been appraised as though free of liens and encumbrances, except as herein
described. Charges for solid waste collection are a special assessment in Monroe County;
delinquent charges for solid waste collection,or other liens against the subject property,have not
been considered in the valuation contained herein as a title search was not made available or
conducted by the appraisers.
4. The management of the property is assumed to be competent and the ownership in responsible
hands.
5. The Appraisers herein is not required to give testimony in court unless arrangements have been
previously made thereof.
6. The Appraisers assume that there are no hidden or unapparent conditions ofthe property, subsoil,
or structures, which would render it more or less valuable. The Appraisers assume no respon-
sibility for such conditions,or for engineering which might be required to discover such factors.
7. Information,estimates and opinions furnished to the appraisers,and contained in the report, were
obtained from sources considered reliable and believed to be true and correct. However, no
responsibility for accuracy of such items furnished to the Appraisers can be assumed by the
Appraisers. Site data and lease information was provided by Mr. Thomas J. Henderson,
Assistant Director of Airports and Ms.Beth Leto,C.P.M.,Airport Business Manager,Key West
International Airport.
Appraisal Company of Key West Page 11
Restricted As s raisal Resort Marathon General Aviation -Fair Market Rent Anal sis
8. The Americans with Disabilities Act ("ADA") became effective January 26, 1992. The
appraisers have not made a specific survey or analysis of this property to determine whether or
not it is in conformity with the various detailed requirements of the ADA. It is possible that a
compliance survey of the property, together with a detailed analysis of the requirements of the
ADA, could reveal that the property is not in compliance with one or more of the requirements
of the Act. If so,this fact could have a negative effect upon the value of the property. Since the
appraisers have no direct evidence relating to this issue, a possible noncompliance with the
requirements of the ADA in estimating the value of the property has not been considered. An
experienced Contractor should be hired in order to confirm conformity or nonconformity,as the
appraisers are not experts in the field.
9. Disclosure of the contents of the appraisal report is governed by the Bylaws and Regulations of
the professional appraisal organizations with which the Appraisers are affiliated.
10. The undersigned Appraisers have no present or contemplated future interest in the property and
the compensation is in no manner contingent upon the value reported.
11. Possession of this report does not carry with it the right of publication or advertisement of any
of its conclusions, nor may any except the applicant use the same for any purpose without the
previous written consent of the appraisers or the applicant.
12. In this appraisal assignment, the existence of potentially hazardous material used in the
construction or maintenance of the building, such as the presence of radon, asbestos material
and/or existence of toxic waste, which may or may not be present on the property,has not been
considered. The appraisers are not qualified to detect such substances. We urge the client to
retain an expert in this field if desired.
13. Furthermore,an environmental screening or audit of the subject property was not made available
to the appraisers. The subject property has underground fuel storage tanks with a fuel dispenser.
The appraisers have assumed that there are no cleanup cost or environmental issues within the
subject property. The appraisers are not experts in the field of environmental hazards. An expert
in the field is recommended to determine if any future monitoring or cleanup is necessary.
14. The discovery of latent conditions is beyond the scope of this appraisal. Detection of latent
conditions requires the expertise of qualified persons such as architects and engineers. Latent
conditions include, among other things, non-apparent structural conditions; presence of
prohibited hazardous wastes; presence of radon gas, methane gas, asbestos, lead, petroleum
products and other air, soil, or water contaminants; and many other conditions too numerous to
Appraisal Company of Key West Page 12
Restricted Appraisal Re sort Marathon General Aviation -Fair Market Rent Anal sis
mention which may affect the value of the property being appraised. The appraisers conducting
this appraisal is not qualified to detect latent conditions and has conducted this appraisal upon
the assumption that no latent conditions (including those mentioned above and others)exist on
the property covered by this appraisal.
15: The subject property is located in the southeasterly quadrant of the Florida Keys Marathon
International Airport. A survey nor building plans were made available. The appraisers utilized
field dimensions taken during our site visit, as well as the Monroe County Property Appraisers
Records. A site plan of the subject property was provided and included in the addendum section
of this report.Valuation is reported without regard to questions on boundaries. No responsibility
is taken by this office for the accuracy or in regard to any questions on the nature of
encroachments,encumbrances,or dissimilarities in measurement. Any maps or plats reproduced
and included in this report are intended only for the purpose of showing spatial relationships.
They are not measure surveys nor measured maps, and no responsibility for cartographic or
surveying errors is assumed.
17. ACCORDINGLY NOTICE IS HEREBY GIVEN that neither the appraisers conducting this
appraisal, nor the APPRAISAL COMPANY OF KEY WEST. make any warranty, express or
implied,to property covered by this appraisal, and neither shall have any liability to any person
for differences in the value of the appraised property, nor other damages, resulting from
discovery of latent conditions(including those mentioned above and others)on,or in proximity
to, the appraised lands.
18. We do hereby certify that to the best of our knowledge and belief the statements of fact contained
in this report,upon which the analyses,opinions and conclusions expressed herein are based,are
true and correct; also this report sets forth all the limiting conditions affecting the analyses,
opinions and conclusions contained in this report; also this report has been made in conformity
with the National Association of Real Estate Boards and the Appraisal Institute.
Appraisal Company of Key West Page 13
Restricted Appraisal Re fort Marathon General Aviation -Fair Market Rent Anal sis
CERTIFICATION OF FAIR MARKET RENT
WE HEREBY CERTIFY THAT UPON APPLICATION FOR VALUATION BY:
MR.THOMAS J.HENDERSON
ASSISTANT DIRECTOR OF AIRPORTS
FLORIDA KEYS MARATHON INTERNATIONAL AIRPORT
9400 OVERSEAS HIGHWAY
MARATHON,FLORIDA 33050
We have personally examined the following property:
Commonly Known as:
MARATHON GENERAL AVIATION FBO
9850 OVERSEAS HIGHWAY
FLORIDA KEYS MARATHON INTERNATIONAL AIRPORT
MARATHON,FLORIDA 33050
Based on analysis of market rental rates for similar FBO land leases within the subject's market area, it
is our opinion that on January 25,2018,when a site visit and market analysis of the subject property was
made, commonly known as Marathon General Aviation FBO, 9850 Overseas Highway, Marathon,
Florida, that the Fair Market Rent, on a modified gross basis, is as follows:
Fair Annual Market Base Rent(Rounded): $ 138,000.00
Fair Monthly Market Base Rent (Rounded): $ 11,500.00
Fair Annual Base Rent/Sq.Ft. of Land Area: $ 0.368
Appraisal Company of Key West Page 14
Restricted As sraisal Resort Marathon General Aviation -Fair Market Rent Anal sis
WE ADDITIONALLY CERTIFY that,to the best of our knowledge and belief:
We certify that, to the best of my knowledge and belief:
o the statements of fact contained in this report are true and correct.
o the reported analyses, opinions, and conclusions are limited only by the reported assumptions and
limiting conditions and are my personal,impartial,and unbiased professional analyses,opinions,and
conclusions.
o We have no present or prospective interest in the property that is the subject of this report and no
personal interest with respect to the parties involved.
o We have performed no services,as an appraiser or in any other capacity,regarding the property that
is the subject of this report within the three-year period immediately preceding acceptance of this
assignment.
o We have no bias with respect to the property that is the subject of this report or to the parties
involved with this assignment.
o Our engagement in this assignment was not contingent upon developing or reporting predetermined
results.
o Our compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or direction in value that favors the cause of the client, the
amount of the value opinion,the attainment of a stipulated result,or the occurrence of a subsequent
event directly related to the intended use of this appraisal.
o Our analyses, opinions, and conclusions were developed, and this report has been prepared, in
conformity with the Uniform Standards of Professional Appraisal Practice.
o Richard Padron have made a personal inspection of the property that is the subject of this report.
James E. Wilson has reviewed the data, analysis, and the appraisal report.
o No one provided significant real property appraisal assistance to the person signing this certification.
(If there are exceptions, the name of each individual providing significant real property appraisal
assistance must be stated.)
Appraisal Company of Key West Page 15
Restricted A i,raisal Re,ort Marathon General Aviation -Fair Market Rent Anal sis
o The use of this report is subject to the requirements of the Appraisal Institute relating to review by
its duly authorized representatives.
o Mr. James E. Wilson, has completed the Standards and Ethics education requirements of the
Appraisal Institute for associate members.
APPRAISAL COMPANY OF KEY WEST
James E. Wilson, MRICS, President Richard Padron, CCIM, MSA
State-certified general real estate appraiser State-certified general real estate appraiser
RZ 2164 RZ 544
Appraisal Company of Key West Page 16
Restricted Ai iraisal Re sort Marathon General Aviation-Fair Market Rent Anal sis
LOCATION MAP
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Appraisal Company of Key West Page 17
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Appraisal Company of Key West Page 20
Restricted As sraisal Resort Marathon General Aviation-Fair Market Rent Anal sis
SUBJECT PHOTOGRAPHS
Side View of Subject Main Building Looking Northeasterly from Service Road
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View of Service Access Road Looking Easterly
Appraisal Company of Key West Page 21
Restricted A i iraisal Re sort Marathon General Aviation -Fair Market Rent Anal sis
SUBJECT PHOTOGRAPHS
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Appraisal Company of Key West Page 22
Restricted A s sraisal Resort Marathon General Aviation -Fair Market Rent Anal sis
SUBJECT PHOTOGRAPHS
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View of New East Hanger From Aircraft Apron Looking Southwesterly
Interior View of Recpection Area Main Building
Appraisal Company of Key West Page 23
Restricted A•s raisal Resort Marathon General Aviation -Fair Market Rent Anal sis
SUBJECT PHOTOGRAPHS
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Interior View of Second Level Office Main Building
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Interior View of Main Building Hanger
Appraisal Company of Key West Page 24
Restricted Al•raisal Resort Marathon General Aviation-Fair Market Rent Anal sis
SUBJECT PHOTOGRAPHS
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Appraisal Company of Key West Page 25
Restricted A s s raisal Resort Marathon General Aviation-Fair Market Rent Anal sis
SUBJECT PHOTOGRAPHS
Interior View of New East Hanger
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View of CBS/Masonry Building
Appraisal Company of Key West Page 26
Restricted A s'raisal Re.ort Marathon General Aviation-Fair Market Rent Anal sis
SUBJECT PHOTOGRAPHS
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Appraisal Company of Key West Page 27
Restricted A s'raisal Re sort Marathon General Aviation-Fair Market Rent Anal sis
SUBJECT PHOTOGRAPHS
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Appraisal Company of Key West Page 28
Restricted A•s raisal Resort Marathon General Aviation-Fair Market Rent Anal sis
PROFESSIONAL QUALIFICATIONS
44 DAMES E. WILSON,III, MRICS
James E.Wilson has been a resident of South Florida since 1976. His education includes a Bachelor of
Science in Business Administration with a Major in Economics from the University ofFlorida,1987-1991.
His experience in the real estate industry began in early 1992 as a residential real estate appraiser in
Pompano Beach,Florida. He appraised a wide variety of single and multi-family residential properties in
Dade, Broward, and Palm Beach counties over a two-year period. In the search of advancement and
challenge, James Wilson moved to the City of Key West, Monroe County, Florida in order to obtain
experience and practice commercial real estate appraisal valuation techniques in a demanding and somewhat unique market area. Over
the past 25 years James has been exposed to a wide-range of appraisal projects,including highest and best use studies,complex property
appraisals,and wetland and environmentally sensitive valuations including transferrable development rights. His appraisal experience
includes financial and investment analysis,appraisal review,feasibility and planning analysis,as well as market research and analysis.
James Wilson is a State Certified General Real Estate Appraiser(licensed to perform residential and commercial appraisals)and a General
Associate Member ofthe Appraisal Institute. He is a member of RICS(Royal Institution of Chartered Surveyors),which is an international
member organization for professionals in property,land,real estate,construction and related environmental issues.Jim is past President
of the Key West Gator Club,2013/2014 President of the Sunset Key West Rotary Club,member of Class VII Leadership Monroe,2012
President of the Key West Chamber of Commerce,and has been elected to continue to serve on the Board of Directors of the Key West
Chamber of Commerce.Jim is still an active member on the Board of Directors for the Key West Chamber of Commerce.
Education: SOUTH BROWARD HIGH SCHOOL,Hollywood,FL, 1987.
UNIVERSITY OF FLORIDA,Gainesville,Florida- Bachelor of Science in Business Administration-Major in
Economics, 1987-1991.
APPRAISAL INSTITUTE
Appraisal Reporting of Complex Residential Properties,October, 1993.
Persuasive Style in Narrative Appraisal Reports,May, 1994.
ACE 1779-"Special Purpose Properties-The Challenge of Real Estate Appraising in Limited Markets",September,
1996.
410 Standards of Professional Practice,Part A(USPAP),8/97.
420 Standards of Professional Practice,Part B,August, 1997.
520 Highest&Best Use and Market Analysis,October, 1997.
Non-Conforming Uses Seminar,January, 1998.
510 Advanced Income Capitalization,May, 1998.
530 Advanced Sales Comparison&Cost Approach,May, 1998.
540 Report Writing&Valuation Analysis,August, 1998.
550 Advanced Applications,February, 1999.
Regression Analysis in Appraisal Practice:Concepts&Applications,Seminar,March,2000.
General Demonstration Appraisal Report Writing Seminar,March,2000.
800 Separating Personal&Real Property from Intangible Business Assets,March,2002.
Successful Completion of the General Comprehensive Examination for the Appraisal Institute
Uniform Appraisal Standards for Federal Land Requisitions,March,2007
General Demonstration Appraisal Report Writing Seminar,August,2007
Valuation of Conservation Easements,January,2008.
Appraising Distressed Commercial Real Estate,June,2009
Oil Spills and Property Values,Webinar,August,2010
Business Practices and Ethics,September,2010
Appraisal Company of Key West Page 29
Restricted A s sraisal Re sort Marathon General Aviation -Fair Market Rent Anal sis
Professional Qualifications of James E. Wilson,III (Continued)
APPRAISAL INSTITUTE
A Debate of the Allocation of Hotel Total Assets,October 26,2010
Appraisal Institute Update,May 19,2011
Appraisal Curriculum Overview(2-day General)May,2011
Perspectives from Commercial Review Appraisers,July 20,2011
Fundamentals of Separating Real Property, Personal Property, and Intangible Business Assets, 05/07/2012 -
05/08/2012
UAD-Up Close and Personal,November,2014
Expert Witness Testimony:To Do or Not to Do,November,2014
Analyze This!Applications of Appraisal Analysis,November,2014
Florida Appraisal Laws and Regulations Update
Reviewers Checklist,November,2014
National USPAP Update Equivalent(2014-2015),November,2014
Purchase Price Allocations for Financial Report and Tax,April 16,2014
Behind the Headlines,the New Real Estate Real Estate Economy,May 16,2014
GOLD COAST SCHOOL OF REAL ESTATE
Real Estate Principles,Practices,and Law-FREC Course I,May, 1992.
Salesman Post-License Program,February, 1994.
Mortgage Broker,Exam-Prep Program,September, 1992.
AB I-Appraisal Board-Fundamentals of R.E.Appraising,5/92.
AB II-Appr.Board-Appraising Resid.&Income Properties,2/94.
AB IIb-Appraisal Board-Cert.Resid.Appraisal Course,7/94.
AB III-Appraisal Board-Certified General Appraisal Course(Income Capitalization Course),February, 1995.
USPAP-Uniform Standards of Professional Appraisal Practice,6/92.
USPAP Course,September, 1995.
A-102-Plan Reading for Appraisers,September, 1995.
National USPAP Update Course,June 2006
Techniques of Income Property Appraisal,June 2006
McKISSOCK DATA SYSTEMS
Automated Valuation Models, October,2000.
Uniform Standards of Professional Appraisal Practice,October,2000.
Factory Built Housing,October,2000.
Appraiser Liability,September,2002.
Appraising Nonconforming&Difficult Properties,September,2002.
Appraiser Liability,USPAP,September,2002.
Appraising for the Secondary Market,October,2004.
Appraising High-Value Residential Properties,October,2004.
Florida Laws and Regulations,October,2004.
Limited Appraisals and the Scope of Work Decision,October,2004.
National USPAP Equivalent,October,2004.
Florida Laws and Regulations,September 2006.
Disclosures and Disclaimer,September,2006.
Appraisal Trends,September 2006.
National USPAP Update Equivalent(2008-2009),November,2008.
Introduction to Expert Witness Testimony,November 2008.
Mortgage Fraud-Protect Yourself,November,2008.
Appraisal Company of Key West Page 30
Restricted As s raisal Resort Marathon General Aviation -Fair Market Rent Anal sis
Professional Qualifications of James E. Wilson,III (Continued)
Florida Appraisal Supervisor-Trainee Roles and Relationships,November,2008.
Florida Laws and Regulations,November,2008.
National USPAP Update Equivalent(2010-2011),August,2010.
Risky Business:Ways to Minimize Liability,August,2010.
Florida Laws and Regulations,August 2010.
Florida Apprisal Supervisor-Trainee Roles and Relationships,August,2010.
The Changing World of FHA Appraising,August,2010.
Systems Built Housing:Advances in Housing for the New Millennium,October,2012
Deriving and Supporting Adjustments,October,2012
Introduction to Regression Analysis for Appraisers,October,2012
Introduction to Residential Green Building for Appraisers,October,2012
Florida Appraisal Laws and Regulations Update
National USPAP Update Equivalent(2012-2013),October,2012
Appraisal of Fast Food Facilities,November,2016
2016-201 7-Hour National USPAP Update Course,November,2016
Managing Appraiser Liability,November,2016
Florida Appraisal Laws and Regulations,November,2016
Advanced Hotel Appraising-Full Service Hotels,November,2016
VALUE INFORMATION TECHNOLOGY,INC.
"Perspectives on Appraisals"FREAB Course ACE#1591,June, 1995.
NORTH BROWARD BOARD OF REALTORS
ACE 591 -Basics of Construction-How a Florida Home is Built II,January, 1994.
Certification: State certified general real estate appraiser,as designated by the Department of Professional Regulation, State of
Florida;Registration No.RZ 2164.
Licensed Real Estate Salesperson, as designated by the Department of Professional Regulation, State of Florida;
License No.SL 0589552(currently inactive).
Professional
Associations: Key West Board of Realtors
General Associate Member of the Appraisal Institute
Member of RICS(Royal Institute of Chartered Surveyors),October,2010 Member#1299389
Affiliations: Past President of the Key West Gator Club(Alumni Organization of the University of Florida
Member of Class VIII,Leadership Monroe County
Board Member of the Rotary Club of Sunset Key West,2013/2014 President,2009 Treasurer,2010 Vice President,
2011 President-Elect,2012 President Board of Directors of the Key West Chamber of Commerce, Current Board
Member
Experience: WILCO VALUATIONS,P.A. d/b/a APPRAISAL COMPANY OF KEY WEST,James Wilson,President and his
wife,Maria Virginia Wilson,also a State Certified General Real Estate Appraiser purchased the Appraisal Company
of Key West from Mr.Richard Padron in April,2004. Mr.Padron has continued to be a Fee Commercial Real Estate
Appraiser with the Appraisal Company of Key West,which has ensured continuity and quality control.
APPRAISAL COMPANY OF KEY WEST,INC.,Fee Commercial Real Estate Appraiser,April,1994 to April,2004.
F.C.P.APPRAISAL SERVICES,INC.,Senior Real Estate Appraiser and Trainer,May, 1992 to April, 1994.
Appraisal Company of Key West Page 31
Restricted As sraisal Resort Marathon General Aviation -Fair Market Rent Anal sis
Appraised various types of properties in the Florida Keys,including:
Retail Stores Commercial/Residential Condominiums
Restaurants Full-Service Marinas/Boat Yards
Strip Centers Environmentally Sensitive Acreage
Office Buildings Industrial Uses
Mixed-Use Properties Guest Houses/Hotels/Motels
Service Stations Mobile Home and RV Parks
Multi-family Projects Warehouse(including mini-storage)
Proposed Developments Special-Use Properties including Schools
Single-family Estates Seafood Processing Plants
APPRAISER CERTIFICATION
STATE OF FLORIDA
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Restricted A•sraisal Resort Marathon General Aviation -Fair Market Rent Anal sis
Professional Qualifications
Richard Padron, CCIM, MSA, AAR, SRC
Richard Padron has a diverse background in the real estate industry. His experience and education in the real estate profession
have continually excelled. He has been affiliated in residential construction, real estate development and the real estate
brokerage business for more than 28 years. During this time,he has managed construction projects,marketed,and sold several
hundred homes in various subdivisions in the Florida Keys and Key West,and has appraised thousands of single family,multi-
family and commercial properties. His real estate career has involved the entire development process from acquisition to project
sellout,including the permitting and operation ofwastewatertreatment systems,as well as dealing with environmental concerns.
Prior to founding the firm,Appraisal Company of Key West,Inc.,Mr.Padron formed the corporation of Richard Padron&
Associates,Inc.,a real estate brokerage corporation. These corporations have been in existence since 1984,providing all types
of real estate services,including brokerage;market,financial and investment analysis;expert witness testimony; appraisals;
property operation review,and planning and feasibility analysis.
Education: Real Estate Certificate from Florida Keys Community College
Professional
Activities: MSA: Master Senior Appraiser,(1984). Certificate No.00883.
CCIM: Certified Commercial-Investment Member, (1986). Certificate No.2765.
AAR: Accredited in Appraisal Reviewer,( 1987).Certificate No.77.
SRC: Senior Real Estate Councilor,(1993). Certificate No.89.
Certification: State-Certified General Real Estate Appraiser,License No.0000544,(1990).
Licensed Real Estate Broker,State of Florida.
Licensed Class A Wastewater Treatment Plant Operator,State of Florida.
Associations: National Association of Realtors
Florida Association of Realtors
Key West Board of Realtors
Marathon and Lower Keys Board of Realtors.
National Association of Master Appraisers
Commercial-Investment Real Estate Council.
Accredited Review Appraisers Council
National Association of Counselors
Experience: Appraisal Company of Key West,Inc.(Since 1987)
Richard Padron&Associates,Inc.(Since 1984)
Michael A.Padron,Inc.(1978-1984)
Riviera Enterprises,Inc.(1968-1984)
Area of Expertise: • Analysis and evaluation of many types of real estate
• Assessment of project feasibility including:
Market research,investment analysis,and feasibility study
Highest and Best Use Analysis
• Litigation support and expert witness testimony
• Types of properties appraised,evaluated,and analyzed:
Hotels,Motels&Guesthouses
Retail/Office and/or Specialty Stores
Appraisal Company of Key West Page 33
Restricted A i.raisal Re.ort Marathon General Aviation -Fair Market Rent Anal sis
Shopping Centers&Malls
Warehouses(Mini,Storage&Distribution)
Restaurants
Highest&Best Use Study
Theaters
Mobile Home&Recreation Vehicle Parks
Marinas,Boat Storage&Repairs
Single Family Residential&Condominiums
Seafood Packing House
Multi-Family&Income Properties
Multi-Family Projects
Environmentally Sensitive Tracts
Proposed Development Projects
APPRAISER CERTIFICATION
STATE OF FLORIDA
DEPARTMENT OF BUSINESS AND PROFESSIONAL REGULATION "x,•
FLORIDA REAL ESTATE APPRAISAL 13D I ,
LICENSE 7tUMI CR ' i -. .. _ ..
,'R2say - mot& _ c
Tee CERTIFIED;GENERALAPPRAISER _.
Noted below IS CERTIFIED- - „: _ ,
Under-II o provisions orCh8Dler475 FS .
Exp4ralion date::NOV 30;2018 , a
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PADRON RICHARD
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KEY WEST. F `3 " � > •
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Appraisal Company of Key West Page 34