Item S1 S.1
G 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
July 17, 2019
Agenda Item Number: S.1
Agenda Item Summary #5762
BULK ITEM: Yes DEPARTMENT: Airports
TIME APPROXIMATE: STAFF CONTACT: Richard Strickland (305) 809-5200
10:45 A.M.
AGENDA ITEM WORDING: Approval of Tenth Amendment to the Marathon Fixed Base
Operator (FBO) agreement with Grantair Services, Inc. d/b/a Marathon Jet Center (MJC) to lease a
parcel of land at the Florida Keys Marathon International Airport for the FBO to relocate the existing
fuel farm and to erect two (2)new six-unit hangar buildings for small and midsize aircraft.
ITEM BACKGROUND: The current location of the fuel farm on the MJC ramp reduces the space
available for parking of aircraft. Relocating the fuel farm will enhance safety and improve
operational efficiency at the Airport, and the FBO has agreed to be solely responsible for all costs
associated with the fuel farm relocation. To offset the costs the FBO will incur, the airport seeks
County approval to lease a parcel of land large enough for the FBO to erect the relocated fuel farm
and two (2) six-unit hangar buildings, and in exchange, the FBO shall immediately begin paying
additional rent to the Airport. Upon completion of the fuel farm, the FBO will begin paying the
market rate for the additional parcel.
PREVIOUS RELEVANT BOCC ACTION: The Lease agreement between Grantair Services,
Inc. and Monroe County has been in effect since April 10, 1998. Most recently amendment 49 was
approved on August 17, 2016.
CONTRACT/AGREEMENT CHANGES:
Adds add'l parcel of land for $1000/mo. and upon relocation of the fuel farm rent will go to same
market rate as FBO parcel
STAFF RECOMMENDATION: Approval.
DOCUMENTATION:
Grantair(MJC) IOth Amendment
FINANCIAL IMPACT:
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S.1
Effective Date: July 17, 2019
Expiration Date: April 9, 2028
Total Dollar Value of Contract:
Total Cost to County:
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: $7,106.00/mo. (parcel shown in Exh. A)
and$1,000.00/mo. (parcel shown in Exh. B)
Grant:
County Match:
Insurance Required:
Additional Details:
n/a
REVIEWED BY:
Richard Strickland Completed 07/06/2019 1:43 PM
Pedro Mercado Completed 07/08/2019 8:45 AM
Budget and Finance Completed 07/08/2019 8:46 AM
Maria Slavik Completed 07/08/2019 11:33 AM
Kathy Peters Completed 07/08/2019 12:29 PM
Board of County Commissioners Pending 07/17/2019 9:00 AM
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S.1.a
TENTH AMENDMENT TO MARATHON FIXED BASE OPERATOR(FBO)AGREEMENT
WITH GRANTAIR SERVICE,INC.
THIS TENTH AMENDMENT (hereinafter "Amendment") to the Marathon Fixed Base
Operator (FBO) agreement (hereinafter "agreement") is made and entered into this 17u' day of July,
2019, by and between MONROE COUNTY, a political subdivision of the State of Florida(hereinafter
"County"), and GRANTAIR SERVICE, INC., a corporation of the State of Florida, (hereinafter
"FBO"or"Grantair"or"MJC").
WITNESSETH
WHEREAS, on the 10th day of April, 1998, the parties entered into the Agreement for a period
of twenty 20 years, which agreement was amended on June 21, 2001, September 19, 2001, July 17,
2002, September 18, 2002, March 17, 2004, September 28, 2005, February 21, 2007, April 21, 2010
and August 17, 2016 to provide Fixed Base Operations at the Florida Keys Marathon International
Airport(hereinafter"Airport"); and
WHEREAS, the Marathon Jet Center(MJC)fuel farm is currently located on the MJC parking
ramp; and
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WHEREAS, the location of the fuel farm on the MJC ramp reduces the space available for
parking of aircraft and requires that MJC personnel maneuver around the fuel farm FBO in order to
park aircraft;and
WHEREAS, the county finds that relocating the fuel farm will enhance the safe and efficient
operations at the airport; and
WHEREAS, the FBO has agreed to be solely responsible for all the costs associated with the
relocation of the fuel farm;and
WHEREAS, in order to help offset the costs the FBO will incur in relocating the fuel farm the
county has agreed to lease to the FBO a parcel of land large enough to erect the fuel farm as well as
two(2)new six-unit hangar buildings for small and midsize aircraft; and
WHEREAS, upon execution of this amendment the FBO shall immediately begin paying
additional rent to the Airport which will enhance the airport's financial sustainability;
NOW, THEREFORE, in consideration of the mutual promises and covenants set forth below,
the parties agree to amend the original lease as follows:
Section 1. Paragraph 1) of the original lease is amended read as follows:
1) The County leases to the FBO 2 individual parcels, also referred to as premises, at the
Florida Keys Marathon International Airport as depicted in Exhibit A and Exhibit B, both dated July
17, 2019. Upon execution of this 101 amendment the FBO is hereby authorized to decommission and
dismantle the fuel farm located on the parcel depicted on Exhibit A following the construction of a
new fuel farm on the parcel depicted on Exhibit B. FBO is hereby further authorized to construct two
(2)new six-unit hangar buildings for small and midsize aircraft on the parcel depicted on Exhibit B.
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Section 2. Paragraph 3) of the original lease is amended by revising the following subparagraph to
read as follows:
b) Upon execution of this amendment, the FBO shall pay monthly rent for the premises
depicted in Exhibit A, on an arrears basis, in the amount of$7,106.00 per month. The FBO shall also
pay monthly rent for the premises depicted in Exhibit B, on an arrears basis. The initial rent shall be
$1,000 per month and shall increase to, $4,278.50 per month upon completion of the relocated fuel
farm, ("completion" for purposes of this amendment shall be defined as the day upon which fuel is first
received at the fuel farrn). All rents shall be subject to the CPI provisions contained in the Ninth
amendment dated August 17, 2016.
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Section 3. Paragraph 3) of the original lease: is, amended by amending and adding the following
subparagraph(s): E
g) Every five (5) years after the execution of this amendment a fair market value appraisal
shall be conducted to ensure that the market rate for the entire premises is keeping up with the market
rate for similar FBO properties.
h) Any improvements made by the FBO to the premises automatically become the
property of the County upon the termination of this lease.
i) NONPAYMENT OF ANY PORTION OF THE RENT WILL BE DEEMED TO BE A
DEFAULT AND THE COUNTY MAY TERMINATE THE AGREEMENT PURSUANT TO,
PARAGRAPH 19.
Section 4, Paragraph 4) of the original lease is amended by adding the following subparagraphs;
a) Pursuant to the terms of the 8th amendment the term of this agreement is extended an
additional 10 years and terminates on April 9, 2028. E
b)l If Grantair completes construction of the new (approximately 9,600 sq. ft) FBO terminal by E
January 31, 2024 then this lease terminates on April 20, 2046, Construction of the new FBO terminal
must conform to the July 20�16 Proposed FBO Design attached as Exhibit A to the 91h Amendment.
ANY MODIFICATION OR DEVIATION FROM THE APPROVED PROPOSED FBO DESIGN
DATED JULY 2016 MUST BE APPROVED BY THE DIRECTOR OF AIRPORTS. For purposes of
this amendment, completion of construction shall be deemed to occur upon the date of the issuance of
the Certificate of Occupancy. The intent of this amendment is to incentivize prompt construction of the
new FBO terminal and the Lessor acknowledges the benefit to the Lessee of completing the project as
soon as possible in order to maximize the cost amortization term. Unless otherwise agreed to in
writing the planning, financing, commencement and progress of the construction, and all costs related
thereto, shall be Lessee's responsibility however in no event will the termination date be later than
April 20, 2046. E
Section 5. All other provisions of the April 10, 1998 original lease, September 28, 2005 sixth
amendment, February 21, 2007 seventh amendment and April 21, 2010 eight amendment and August
17, 2016 ninth amendment not inconsistent herewith, shall remain in full force and effect.
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IN WITNESS WHEREOF, each party has, caused this Amendment to, Lease Agreement to be
executed by its duly authorized representative,
(SEAL) BOARD OF COUNTY COMMISSIONERS
ATTEST.- KEVENMADOK, CLERK. OF MO ROE COUNTY,FLORIDA
By By
Deputy Clerk Mayor/Chairrnan
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ATTEST: GR. NTAIR S,ERVI ES, INC.
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