Item C13 C.13
t, BOARD OF COUNTY COMMISSIONERS
County of Monroe Mayor Sylvia Murphy,District 5
The Florida Keys � � �l'U � Mayor Pro Tern Danny Kolhage,District 1
�pw° Michelle Coldiron,District 2
Heather Carruthers,District 3
David Rice,District 4
County Commission Meeting
May 22, 2019
Agenda Item Number: C.13
Agenda Item Summary #5569
BULK ITEM: Yes DEPARTMENT: Airports
TIME APPROXIMATE: STAFF CONTACT: Richard Strickland (305) 809-5200
none
AGENDA ITEM WORDING: Approval of 1st amendment to Lease Agreement with The Hertz
Corporation Inc., reducing underused property in the Parcel B leasehold at the Key West
International Airport by 2,925 sq.ft. The property will be used by the Airport for construction lay
down, parking and safety purposes during construction of the new FBO Access Road. Rent will be
reduced from $111,391.20/yr. to $101,520.29/yr. for the Parcel B leasehold reduction. In addition,
for no reduction in rent, Hertz agrees to return 4,876 sq.ft of underused property in Parcel A to the
County for the Airport's sole use.
ITEM BACKGROUND: In 2011, The Hertz Corporation was the only respondent to an RFP for
property at the Airport. In 2012, a 20-year lease was granted to become Hertz' rental car service
facility. Under the terms of the original agreement, Hertz was to make certain capital improvements
to the premises within 24 months. Since Hertz did not make the improvements, and the Airport
needs the underused area, Hertz has agreed to reduce the leasehold in Parcel B by 2,925 sq. ft. in
exchange for a rent reduction. Hertz also agrees to return 4,876 sq. ft. of underused property in
Parcel A to the County for the Airport's sole use.
PREVIOUS RELEVANT BOCC ACTION:
Sealed bids from the RFP were opened on September 28, 2011. The rental car service facility lease
with Hertz was approved on October 17, 2012.
CONTRACT/AGREEMENT CHANGES:
Reduces underused area in Parcel B of the leasehold by 2,925 sq.ft., in exchange for rent reduction.
For no reduction in rent, returns of 4,876 sq.ft. of underused property in Parcel A to the County for
the Airport's sole use.
STAFF RECOMMENDATION: Approval.
DOCUMENTATION:
Hertz Amendment 1 REV 5 14 19
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C.13
FINANCIAL IMPACT:
Effective Date: June 1, 2019
Expiration Date: September 18, 2032.
Total Dollar Value of Contract: N/A
Total Cost to County: N/A
Current Year Portion:
Budgeted:
Source of Funds:
CPI:
Indirect Costs:
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing: Yes If yes, amount: $101,520.29/yr.
Grant:
County Match:
Insurance Required:
Additional Details:
REVIEWED BY:
Beth Leto Completed 05/06/2019 3:26 PM
Richard Strickland Completed 05/06/2019 4:24 PM
Pedro Mercado Completed 05/06/2019 4:34 PM
Budget and Finance Completed 05/07/2019 8:12 AM
Maria Slavik Completed 05/07/2019 9:39 AM
Kathy Peters Completed 05/07/2019 8:15 PM
Board of County Commissioners Pending 05/22/2019 9:00 AM
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C.13.a
1st AMENDMENT TO LEASE AGREEMENT
THE HERTZ CORPORATION
KEY WEST INTERNATIONAL AIRPORT
THIS 1st AMENDMENT TO LEASE AGREEMENT is made and entered into on this 22"1
day of May, 2019, by and between MONROE COUNTY, a political subdivision of the State of
Florida, whose address is 1100 Simonton Street, Key West, Florida 33040, hereinafter referred to as
Lessor,and THE HERTZ CORPORATION,a Delaware Corporation authorized to conduct business
in Florida whose address is 8501 Williams Road, Estero, Florida 33928, hereinafter referred to as
Lessee or Tenant.
WHEREAS, on October 17, 2012 the Lessor and Lessee entered into a Lease Agreement
(hereinafter"Original Agreement") at the Key West International Airport, located in Key West,
Monroe County, Florida,hereinafter referred to as"AIRPORT,"and
WHEREAS, under the terms of the Original Agreement the Lessor was required to make
certain service facility capital improvements to the premises within 24 months of executing the .�
Original Agreement,and
WHEREAS, Lessor has not made said improvements to the premises, and
WHEREAS,Lessee has experienced tremendous passenger growth and is in need of the under
used areas of the Lessee's leasehold, and
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WHEREAS, Lessee has no objection to returning the under used areas to the Lessor, >
NOW,THEREFORE,in consideration of the premises and of mutual covenants and promises
hereinafter contained, the parties hereto do hereby agree as follows:
SECTION 1. Article 2,Premises., of the Original Agreement is amended to read as �
follows:
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2.Premises. Lessor hereby leases to Lessee the Airport area shown on Exhibit A, hereafter the
premises,for use as a rental car preparation activities area,hereafter referred to as the operation.Exhibit
A is attached to this agreement and incorporated by reference. Parcel "A" contains a total of 18,800
square feet. Parcel "B" contains a total of 11,289 feet. The parcels are as depicted on the attached
drawing, Exhibit A identified as BOCC May 22,2019.
SECTION 2. Article 4,Subsection (a), Rental,Gross Revenue, Capital Improvements,
Late fees is mended to read as follows:
a. Effective June 1, 2019, Lessee agrees to pay an annual rent of$101,520.29 plus tax. Rent
plus sales tax 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.
Rental rates are subject to revision after the first 12 months and annually thereafter in
accordance with the percentage change in the Consumer Price Index for all urban consumers (CPI-U)
for the most recent 12 months available. In the event of a deflationary CPI, no adjustment in the rental
rates will be made.
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C.13.a
SECTION 3. All other provisions of the October 17, 2012 Original Lease Agreement not
incousistent herewith,shall remain in full force and effect.
IN WITNESS WHEREOF,the parties have caused this lease amendment.to be executed this
22nd day of May,2019,
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(SEAL) BOARD OF COUNTY COMMISSIONERS
ATTEST: KEVIN MADOK,CLERK OF MONROE COUNTY,FLORIDAIN
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