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Item C05 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY MEETING DATE: JULY 26/27,2000 DIVISION: COUNTY ADMINISTRATOR BULK ITEM: YES DEPARTMENT: AIRPORTS AGENDA ITEM WORDING: APPROVAL TO BEGIN NEGOTIATIONS WITH ISLAND CITY FLYING SERVICE AND A CO-OP OF EXISTING HANGAR OWNERS TO REDEVELOP THE EXISTING HANGAR AREA AT THE KEY WEST INTERNATIONAL AIRPORT. ITEM BACKGROUND: THE EXISTING HANGAR AREA AT THE KEY WEST INTERNATIONAL AIRPORT HAS TEN HANGARS. EIGHT ARE OWNED BY INDIVIDUAL PRIVATE PILOTS WHO ONLY LEASE THE LAND UNDERNEATH THEM. THE OTHER TWO ARE OWNED BY THE AIRPORT AND LEASED OUT (LAND AND STRUCTURE) TO ISLAND CITY FLYING SERVICE (ICFS) AND THE BI-PLANE OPERATOR. IF ALL OF THE PARTIES AGREE TO GIVE UP THEIR EXISTING LEASES, THE AREA COULD BE REDEVELOPED SO THAT A TOTAL OF 14 NEW HANGARS COULD BE BUILT. THERE WOULD ALSO BE ENOUGH ADDITIONAL SPACE FOR 12 UNCOVERED TIE DOWNS FOR GENERAL AVIATION AIRCRAFT. PREVIOUS RELEVANT BOCC ACTION: NONE ON THIS ISSUE STAFF RECOMMENDATION: APPROVAL TO NEGOTIATE. ALTHOUGH THE TOTAL COST OF THE PROJECT IS NOT YET KNOWN WE ESTIMATE THAT IT MAY APPROACH 2 MILLION DOLLARS. THE ICFS AND THE CO-OP OF EXISTING HANGAR OWNERS WOULD HAVE TO PROVIDE ALL FUNDS REQUIRED TO MATCH THE STATE AND FEDERAL AIRPORT GRANTS FOR THE PROJECT. WE CURRENTLY RECEIVE $22,349.38 OF RENTAL INCOME ANNUALLY FOR THE ENTIRE AREA. THEY ARE OFFERING US $75,000.00 IN ANNUAL RENTAL INCOME AFTER IT HAS BEEN REDEVELOPED. TOTAL COST: UNKNOWN BUDGETED: N/A COST TO COUNTY: -0- REVENUE PRODUCING: YES AMOUNT PER MONTH/YEAR: $75,000.00 PER YEAR APPROVED BY: County Attorney N/A OMB/Purchasing N/A Risk Management N/A DIRECTOR APPROVAL ~fr Peter J. Horton DOCUMENTATION: Included X To Follow Not Required AGENDA ITEM # 1:(J5 DISPOSITION: /~ ;..... ( -.11 -. ISLAND CITY FLYING SERVICE, INC. KEY WEST INTERNATIONAL AIRPORT 3471 SOUTH ROOSEVELT BOULEVARD KEY WEST, FLORIDA 33040 PHONE (305) 296-5422 May 26, 2000 Mr. Peter Horton Monroe County Director of Airports Key West International Airport 3491 S. Roosevelt Blvd. Key West, FL 33040 Dear Mr. Horton: In October 1999 URSGreiner Woodward Clyde completed a Hangar Feasibility Study for Monroe County. In this study it shows 36,500 square feet of proposed hangar space. Island City Flying Service along with a Co-Op of existing hangar owners hereby proposes to lease the required land from Monroe County to build these hangars for a total of $75,000.00 (Seventy-five thousand dollars) per year as long as the following conditions can be agreed upon: 1) Exhibit 5.3 of the Hangar Feasibility Study shows two proposed 65x65 hangars on the existing leasehold ofIsland City Flying Service. We would like to substitute the land these two hangars are to be built on for the new tie-down area located on the north side of the hangar project site. This tie-down area would then become part of the Island City Flying Service leasehold. 2) In the Hangar Feasibility Study table 5.1 option "A-I" it shows a total of twenty available hangars of varying size, We would like to change this to the following as required by existing hangar owners: Units Rectangular Hangars 50x50 Rectangular Hangars 50x60 Rectangular Hangars 55x60 Rectangular Hangars 65x65 Medium T-Hangars (44.5'Wx39'DxI4'H) (space permitting) 4 2 2 2 3-4 Total Hangars 13-14 3) Funding is available from FAA/FOOT as follows: *FDOT *FAA *PFC 50% of Hangar Construction 90% of Pavement 10% of Pavement Peter, as always, any comments or suggestions you may have would be greatly appreciated. .~~ \ PauldePoo President ~>-' &... ( -'11 -. ISLAND CITY FLYING SERVICE, INC, KEY WEST INTERNATIONAL AIRPORT 3471 SOUTH ROOSEVELT BOULEVARD KEY WEST, FLORIDA 33040 PHONE (305) 296-5422 Peter Horton Monroe county Director of Airports Key West International Airport 3491 S. Roosevelt Blvd. Key West, FL 33040 July 11, 2000 Dear Peter: Would you please review this letter at your earliest convenience? Any comments or changes would be greatly appreciated. As soon as I hear from you I will get all the hangar owners to sign it and return it to you. Sin cer. el(. \' ~- \ ,) ) L- Paul dePoo; Jr. President June 30, 2000 Peter Horton Division Director Monroe County Key West International Airport Key West, FL 33040 Dear Peter: We, the undersigned hangar owners at Key West International Airport would like t,o request that the County move forward with us in attempting to improve the airport hangar facilities. We believe that as a result of the numerous conversations we have had with you and other members of the County staff that we have a consensus among the hangar owners and other County lessees that this program would be mutually beneficial to all involved. The apron and hangar facilities could be upgraded to a safer condition and more attractive condition, the leases could be made uniform, and of course the County would receive not only much needed capital improvements available through various grants but would also derive substantially more rental income immediately. If the details of these improvements can be worked out to the mutual agreement of all parties, we believe that an understanding could be reached with all the existing hangar owners to give up our rights in the existing hangar facilities and leases, We hope ,this letter will be helpful to you in obtaining whatever staff and board approval so that we may move forward with our neqotiations project. - ** ~O.39~d I~~O~ ** Peter Horton June 3D, 2000 Page 2 T:lank you for your cooperation in this rna,tter,