Item C14
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARy
Meeting Date: 4/18/01
Division: County Administrator
Bulk Item: Yes X No
Department: Airports
AGENDA ITEM WORDING: Approval of a lease amendment between Monroe County and Island
City Flying Service.
ITEM BACKGROUND: The lease modification is needed due to additional area being prepared for
General Aviation tie downs and in anticipation of the new hangar project.
PREVIOUS RELEVANT BOCC ACTION: Master lease approved 1/20/94. Amended adding
additional insurance requirements 6/17/94.
CONTRACT/AGREEMENT CHANGES: This amendment gives the county 10% of cargo
revenues. Adds the west tie down area to the leasehold. Expands their main tie down ramp due to the
paving expansion project. When the hangar project is completed, they will lease an additional space for
10 aircraft and give up space for two large hangars. Net additional annual rent increase now: approx.
$31,000. Net additional annual rent increase after hangar project is completed: approx. $50,000. Total
additional annual rent increase both now and in the future is $81,000.
STAFF RECOMMENDATION: Approval.
TOTAL COST: N/A
BUDGETED: Yes N/A No
COST TO COUNTY: Revenue Producing
REVENUE PRODUCING: Yes X No AMOUNT PER MONTH $6750
Year $81,000
APPROVED BY:
County Atty X
OMBlPurchasing X
, \ CL,
Risk Management xl0 . I
DEPARTMENT APPROVAL:
i=01t
Peter J, Horton, KWIA Manager
DOCUMENTATION:
Included)(. To Follow
Not Required
AGENDA ITEM #1- uti
DIsPosmON:
MONROE COUNTY BOARD OF COUNTY COMMISSIONE.RS
CONTRACT SUMMARY
Contract #
Contract with: 1'SL4NlI C"...., FL.~Ir-1~ S[2Vll.t:
Effective Date: :; -'2'\ .0'
Expiration Date: \2.-3 \ -04-
Contract Purpose/Description: L~~SE 4k~l)""ENI~i) MoJ)fF"4-lloN A<=-e~E.M.EN'.
Contract Manager: Bevette Moore
I (name)
I for eace meeting on: 3.. 2..1 - 0 I
# 5195
(Ext. )
Airports - Stop # 5
(Department/Courier Stop)
Agenda Deadline: '5. (~-o \
CONTRACT COSTS
Total Dollar Value of Contract: ,41)P IT '0 ~\. .,000
Budgeted? ~IA a.~"~~lJe ?Q,J)OUG-'~4
Grant:
County Match:
Estimated Ongoing Costs:
I (not included in dollar value above)
Current Year Portion: lJ { A
Account Codes:
ADDITIONAL COSTS
For: .
(eg. maintenance. utilities, janitorial, !lalari~s. etc.)
Date In
Airports Manager
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3.Ja.d-~
Risk Management
~ChaSing
County Attorney
Comments:
CONTRACT REVIEW
Changes
Needed
Yes No
Reviewer
Date Out
( )('N I<r+t ~ 1'2../~
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( > (1) tf.JJ.QJQ[
- -Wayne Robertson
( ) ( ) ~~-
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9lSE~6~S0EaI 3~I~~O ^~~'It ^~NnO~ 30~NOWWO~~ Et>'60 10-60-~d'lt
LEASE AMENDMENT AND MODIFICATION AGR!EMElU
THIS LEASE AMENDMENT is entered into on the day of
, 2001, by and between BOARD OF COUNTY COMMISSIONERS OF
MONROE COUNTY, a political subdivision of the State of Florida, hereafter Lessor,
and ISLAND CITY FLYING SERVICE, INC. a corporation, hereafter' Lessee.
WHEREAS, Lessor and Lessee are parties to a Lease Agreement together
with all amendments and modifications thereto (the "Lease"), a copy of which is
attached hereto; and
WHEREAS, under the Lease, Lessee presently occupies the site shown on
EXHIBIT A and the East Ramp as shown on EXHIBIT B ("East Ramp"); and
WHEREAS, Lessor desires that Lessee utilize a portion of the East Ramp (the
"Air Cargo area") for air cargo operations, and the Lessee is willing to manage and
sublease to air cargo operators the Air Cargo area: and
WHEREAS, the Lessor is willing to provide 92,447 square feet of additional
land to Lessee known as the West Ramp as shown on EXHIBIT D ("West Ramp") in
exchange for Lessee's agreement to devote the Air Cargo area exclusively to Air
Cargo and large general aviation aircraft: operations; and
. WHEREAS, the area of the West Ramp exceeds the area of the East Ramp,
but because of their respective locations the rental value of the East Ramp exceeds
the rental value of the West Ramp; and
WHEREAS, as a result of the amendment and modifications hereby
authorized, the rent to be received by the Lessor will increase approximately Fifty
Thousand Dollars ($50,000.00) (Le., from less then Twenty-five Thousand Dollars
($25,000.00) to SEVENTY-FIVE THOUSAND DOLLARS ($75,000.00)); and
WHEREAS, these modifications and amendments will prOVide Lessor a fair
benefit, and the airport facility will be improved; and
WHEREAS, Lessor has an opportunity to obtain federal and state funds for
airport improvement for a hangar area and ramp, a portion of which land is now
occupied by Lessee under the Lease; and
WHEREAS, Lessee is willing to surrender a portion of its existing leased site
(shown as Hangars 19 and 20) as shown on EXHIBIT C in order to help facilitate the
development of said facility; and
WHEREAS, the parties contemplate such a reduction of the leased premises
to allow for the relocation of hangars and construction of new hangelrs pursuant to
a future RFP (the "Hangar Development Proposal"); and
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9tSC?:6?:S0COI 3~1~~O ^~~"" ^~NnO~ 30~NOW'WO~~ 1;>1;>'60 10-60-~d""
WHEREAS, there has been some confusion as to which entities and/or
airplanes are subject to the County's Fuel Flowage Fee, and the parties desire to
clarify same; now, therefore,
IN CONSIDERATION of the mutual promises and covenants herein
contained and other valuable consideration, the receipt of which is hereby
acknowledged, it is agreed as follows:
1. That the recitals contained herein are true and correct and
incorporated herein by reference.
2. The leasehold premises described on EXHIBIT A is herE!by deleted and
in lieu thereof the property shown on EXHIBIT A-I is substituted. At such time as
Monroe County paves the shaded area shown on EXHIBIT A~l, then Lessee shall
begin paying rent at FORTY-ONE CENTS ($0.41) per square foot on an annual
basis, payable monthly to the County, for the shaded area. The shaded area is
approximately 20,000 square feet.
3. At such time as Lessor has paved and made ready for occupancy the
West Ramp shown on EXHIBIT 0, the West Ramp shall be included within the Lease
premises, and Lessee shall pay for the 83,407 square feet comprising the West
Ramp TWENTY-SEVEN CENTS ($0.27) per foot on an annual basis, payable
monthly.
4. At such time as all of the necessary plans, permits and other
conditions precedent to the implementing of the Hangar Development Proposal
have been approved, and the consent of no fewer than 100% of all existing hangar
tenants within the Hangar Development Proposal boundaries has been obtained,
then the property, shown as Hangars 19 and 20 on EXHIBIT A-I, shall be deleted
from the Lease and the approximate 44' x 246' strip shown on EXHIBIT 0-1 shall be
added and the leased premises shall be amended to include the property shown on
EXHIBIT C and 0-1. Lessee shall then increase Its existing rent to FORTY -ONE
CENTS ($0.41) per square foot for the property shown on EXHIBIT C and TWENTY-
SevEN CENTS ($0.27) per square foot for the property shown on EXHIBIT 0-1 on
an annual basis, payable monthly, and the expiration of the Lease shall be
extended to the same expiration date as the expiration date under the Lease
entered into pursuant to the Hangar Development Proposal.
5. In addition to the other rent due Lessor, Lessee shall pay to Lessor
monthly as additional rent Ten Percent (10%) of the gross rents on ramp fees
received by Lessee from all sublessees and tenants engaged in air cargo and like
operations on the East Ramp. Lessee shall provide Lessor monthly with backup
documentation sufficient for Lessor to verify Lessee's gross receipts from such air
cargo and like operations.
6. The exemption for the fuel flowage fee shall only be applicable to
aircraft operated by airlines providing regularly scheduled serviCE! to Key West
International Airport, and to aircraft owned or operated by Island City Flying
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9tSE~8~S0Eat 3~1~~O ^~~'a' ^~NnO~ 30~NOWWO~~ 1>1>'80 10-80-~d'a'
Service. By way of illustration and not exclusion, the airplanE!s operated by
Seaplanes of Key West, an affiliate of Island City I shall be exempt.
IN WITNESS WHEREOF, the parties hereto have set their hancls and seals the
day and year first above written.
(SEAL)
ATTEST: DANNY L. KOLHAGE, CLERK
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
By
By
Deputy Clerk
Mayor/ChC:lirman
(SEAL)
Attest:
ISLAND CITY FLYING SERVICE, INC.
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AGREEMENT
THIS CONTRACT OF LEASE is made and entered into this ~O+h
day of ::Jo.V\u....~, 1994, by and between the COUNTY OF MONROE,
STATE OF FLORIDA, a political subdivision of the State of Florida,
hereinafter referred to as Lessor, and ISLAND.CITY FLYING SERVICE,
INC., a corporation organized and existing under the laws Qf the
State of Florida, hereinafter referred to as the Company.
WIT N E SSE T H:
WHEREAS, Lessor owns an airport known as the Key West
International Airport located in Key West, Monroe County, State of
Florida, hereinafter called the "AIRPORT"; and
WHEREAS, the Company is a corporation primarily engaged fn
commercial aeronautical activities and the general activities of a
full service fixed base operation; and
WHEREAS, the conduct of quality fixed base operator services~
as hereinafter set forth is advantageous to the operation of said
"Airport" for public airport purposes; and
WHEREAS, Lessee desire to obtain certain rights, services and
privileges in connection with the use of the Airport and its
,
facilities; and the Lessor is willing to grant and lease the same
to Lessee on a non-exclusive basis ~pon the terms and conditions
hereinafter stated;
NOW, THEREFORE, for and in consideration of the premises and
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of the mutual covenants and agreements herein contained, and other
valuabl~ considerations, Lessor does hereby grant and lease unto
Lessee, and Lessee does hereby hire and take from Lessor, certain
~remises, facilities, rights, licenses, services and privileges in
connection with and on the Airport, as follows, to-wit:
1.
PREMISES LEASED.
The Lessor does hereby lease to the
Lessee that space as marked on Exhibit "A", "B" and "C" attached
hereto and made a part hereof at the Key West International Airport
located in Key West, Monroe County, Florida, in accordance with the
terms and conditions as set forth in this Agreement.
Parcel A
shall hereinafter be referred to as General Aviation Parcel. In
space marked on Exhibit "B" shall be referred to as the Fuel Farm
Parcel or Pal;Cel "B", and the space marked on Exhibit "c" shall be
referred to as the additional General Aviation Parking Apron or
Parcel "C". Said parcels shall collectively be referred to as the
Demised Premises.
2. USE OF THE AIRPORT. Lessee shall be entitled to use, in
common with others authorized to do so, the Airport and
appurtenances, together with all facilities and equipment.
3 . COMMERCIAL AVIATION USE AND PRIVILEGES. The Company shall
have the non-exclusive right in connection with its use of the
lease premises and subject to the conditions provided in this Lease
Agr~ement and/or contained in the Monroe County Minimum standards
for Fixed Base Operators, as amended from time to time, to engage
in the following commercial aviation activities:
a. The unloading and loading of aircraft in any lawful
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activity as incidental to the conduct of any services or operations
outlined in this section.
b. The maintenance, storing and servicing of aircraft
which shall include overhauling, rebuilding, repairing, inspecting,
licensing,
flying, purchasing and selling including parts,
equipment and accessories thereof.
c. The sale of aircraft fuels, lubricants and
propellants at the Airport. The sale of said fuel, lubricants and
propellants at any locations shall include the right to use
vehicles necessary for the servicing of aircraft provided they are
operated in accordance with reasonable rules and regulations
established by the Lessor.
d.. The operation of a business of buying and selling new
or used aircraft, aircraft parts and accessories thereof and
aviation merchandise and equipment of. all descriptions either at
retail, wholesale or as a dealer or distributor.
e. The rental of aircraft.
f. The operation of air transportation and/or charter
services for the transportation of passengers, cargo and mail.
g. The operation and sale of air taxi, ambulance and
sightseeing services.
h. The operations and sale of aerial surveying,
photographic and mapping services.
i. The operation of f light instruction services in
accordance with Federal Aviation Administration standards.
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j. The maintenance of coin-operated vending machines on
the leased premises.
k. Any other aeronautical activity, of any category,
permitted by the Minimum Standards for Fixed Base Operators, as
amended from time to time, upon the conditions stated therein. If
Lessee desires to engage in a legitimate aeronautical activity not
provided for in the Minimum Standards for Fixed Base Operators, it
shall apply in writing to the Lessor for an amendment to such
Standards, and such Standards may be amended to allow, with
appropriate conditions, any legitimate aeronautical activity which
will not be adverse to the public interest or the safe and
efficient operation of the Airport.
4. GEN~RAL RIGHTS AND PRIVILEGES. The Company shall enjoy
the following general non-exclusive rights on the Airport premises
subject to the conditions provided in this Lease Agreement and/or
contained in the Minimum Standards for Fixed Base Operators, as'
amended from time to time:
a. The general use of all public facilities and
improvements which are now or may hereafter be connected with or
appurtenant to the Airport to be used by Company for the general
aviation commercial acti vi ties contemplated hereunder. For the
purpose of this Lease Agreement public airport facilities shall
mean all necessary landing area including but not limited to
approach areas, runways, taxiways, aprons, aircraft parking areas,
and all roadways, sidewalks, navigational aids, lighting facilities
or other public facilities appurtenant to the Airport. Such use of
4
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public facilities by company shall be in all ways and at all time
subject to control by the Monroe County Director of Airports or
acting Airport Director, as well as all applicable laws and Federal
Aviation Administration rules and regulations.
b. The right of ingress to and egress from the demised
premises over airport roadways including the use of common used
roadways subject only to such reasonable rules and regulations as
may be established by the Lessor and its Director of Airports.
c. The right to install, operate and maintain, repair
and store on the leased premises all equipment necessary for the
conduct of Company's business, including identifying signs which
shall be subject to the written prior approval of the Lessor in the
interest of ~fety and convenience of all concerned, which approval
shall not be unreasonably withheld.
d. The use in common with others of the public airport
parking area for automobiles and/or aircraft subject to revenues'
imposed generally, control by the Director of Airports and all
. applicable laws and Federal Aviation Administration rules and
regulations.
e. The Company shall not exercise any rights or
privileges described in this Section of this Lease Agreement in any
manner which, in the opinion of the Director of Airports, restricts
in any way the exercise of the same rights by others.
,
Company
shall use its own leased premises, whenever practical and feasible,
for automobile and aircraft parking.
5. MINIMUM REOUIRED SERVICES AND INVESTMENT. As part of the
5
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consideration hereunder, Company shall, when and as requested,
provide .at a minimum those services, facilities, and functions
required by the Minimum Standards for Fixed Base Operators, as
amended from time to time, as conditions of each aeronautical
activity engaged in by Company.
6. TERM. This Agreement shall be binding upon execution and
the term and rents hereunder shall commence on January 1, 1994 and
terminate on December 31, 2004. The Company shall have the option
to renew this Lease for two (2) additional five (5) year terms on
the same terms and conditions as contained herein with the
exception of the base rent for Parcel A which shall be redetermined
pursuant to Paragraph 42 hereof.
7. REN~. The lease amount agreed to herein may be adjusted
annually in accordance with the percentage change in the Consumer
Price Index (CPI) for Wage Earners and Clerical Workers in the
Miami, Florida, area, and shall be based upon the annual average
CPI computation from January 1 through December 31 of the previous
year.
Base Rent for Parcel A shall be computed at the rate of 11
cents per square foot per year for the 5.97 acres (260,053 sq. ft.).
of land leased pursuant to this Agreement, less the acreage used as
county easements. The Base Rent shall be 44 cents per square foot
per,year for the 5,625 square foot or 75' x 75' tract of land known
as the Fuel Farm as designated on Exhibit "B". The Base Rent for
the additional General Aviation Parking Apron shall be .11 cents
per square foot per year for 35,955 sq. ft.
6
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a. Regardless of the percentage increase in the National
Consumer Price Index, the monthly rental payable hereunder shall be
redetermined every year in the same manner as provided in the first
paragraph of Section 7.
8. FUEL FLOWAGE FEES. Lessor shall be entitled to collect,
and Company agrees to pay as additional consideration under the
Agreement, as amended by any future Addenda, all fuel flowage fees
as are imposed generally by the Minimum Standards for Fixed Base
Operators, as amended from time to time.
The fuel flowage fee
shall be six Cents per gallon upon the effective date of this
Lease Agreement and shall be paid by the fifteenth (15th) day of
each month for each gallon of aircraft fuel received or bought by
the Company ~t the Airport during the preceding month, less the
number of gallons pumped that month into aircraft exempt from fuel
flowage fees pursuant to agreement with the Lessor.
An investment credit of One Cent per gallon shall be allowed'
to the Company until such time as the cumulative investment credit
has reached the Company's investment which was necessary to
initially bring the tanks and facility into compliance with FDEP
and EPA standards. The remaining dollars credited to Tenant from
said percentage investment credit is $34,160.05 as of October,
1993.
Once the Investment Credit has reached said amount, the
Investment Credit of One Cent per gallon shall no longer be
available , and the fuel flowage fee shall be Six Cents per gallon.
The Company shall provide to Lessor by the tenth (lOth) day of
each month a report of all aircraft fuel received or bought during
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the preceding month and all aircraft fuel pumped into. exempt
aircraft during the preceding month, which report shall include
copies of invoices supporting both amounts.
Company shall
authorize all of its suppliers to furnish to the Lessor any
information required by the Lessor concerning fuel deliveries to
the Company. The fuel flowage fee will be reviewed every five (5)
years and may be increased to compensate for improvements made at
the Airport that benefit the Company.
9. MAINTENANCE. The Company shall make its own arrangements
for janitorial services including the care of interior and exterior
maintenance of the areas and premises to be occupied under this
Lease and all operating facilities installed or acquired by it. It
shall make aJ.I repairs and improvements as may be necessary to
maintain and keep same in good condition as at the beginning of
this lease period or at the time of installation or modification,
ordinary wear and tear accepted.
10. OWNERSHIP OF IMPROVEMENTS. It is agreed that title to
all fixed improvements constructed hereafter on the leased premises
by the Company shall at all times during the term of said Agreement
remain in the Company. Upon termination, whether by expiration of
the term, cancellation or forfeiture, said improvements shall
become the property of the Lessor: Title to fixed improvements
constructed by the Company on the Airport prior to the execution of
this Agreement shall remain in the Company until termination.
11.
UTILITY CHARGES.
The Company agrees to pay for all
utilities consumed on the leased premises,
as well as its own
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water, sewer and garbage pickup. Electricity and water consumption
shall be metered through instruments fixed in place. Any expense
for installation of meters or for connection or similar charges
shall be paid by Company.
12. PEACEFUL POSSESSION AND OUIET ENJOYMENT. The Company and
its customers shall have, at all time, s the right of ingress,
egress and a free access to the 'premises, and the Lessor guarantees
to them the peaceful possession and quiet enjoyment thereof. The
Lessor covenants that it will continue to operate the Airport as a
public facility.
13. TERMINATION PRIOR TO EXPIRATION.
a. The Lessor shall have the right to terminate this
lease in whiij)le or in part upon the occurrence of any of the
following events:
(1) Failure on the part of the Company to pay rent, fuel
flowage fees or usage fees when due.
(2) Filing by or the final adjudication against the
Company of any pe~ition of bankruptcy or the making of any transfer
or general ,assignment for the benefit of creditors which has not
been previously authorized by the Lessor.
(3) The failure of the Company to perform or keep or
observe any of the terms, covenan~s and conditions which it is
obl~gated to perform, keep or observe under this lease after the
expiration of any period of warning or ultimatum given by the
Lessor to the Company to correct any deficiency of default.
(4) The abandonment of the leased premises _" or
9
"
,
discontinuance of the business operations.
(5) The failure of the Company to abide by the terms of
any law governing its business or operations under this lease;
rules and regulations of the Federal Aviation Administration; rules
and regulations established by the Director of Airports; or a
direct order of the Director of Airports concerning the movement or
parking of aircraft or vehicl~s anywhere on the Airport or the
relative right~, obligations and duties of the Company and ~ther
fixed base operators at the Airport.
b. In the event of default of any of the above, except
for a failure to abide by a direct order of the Airport Director or
acting Airport Director concerning the movement or parking of
aircraft or vehicles, the Lessor shall give the Company written
~
notice specifying with particularity the nature of the alleged
default or other ground for termination. The Company shall have
fifteen (15) days from the receipt of said notice to correct any
default; and the failure to so correct the default within fifteen
(15) days shall result in absolute termination. Upon a failure of
the Company to abide by any direct order of the Director of
Airports concerning the movement or parking of aircraft or vehicles
anywhere on the Airport, the Lessor shall have the authority to
move, or to have moved, at the Company's sole expense (including
any liability for such acts), any aircraft or vehicles impeding the
'.
safe, orderly, and efficient use and control of the airport
premises and to take all other actions the Company has not taken,
at the Company's sole expense, which are necessary to effectuate
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the order or orders not complied with. Company agrees to'pay such
expens~s within ten (10) days after being billed for same.
14.
RATES AND PRICES.
All rates and prices shall be
established by the Company.
However, they shall be fair and
reasonable and in no case exorbitant and shall be subject to review
by the Lessor.
Reasonableness and fairness of prices shall be
determined by whether they are comparable to prices charged for
similar services or products of similar caliber or quality at 'other
airports similarly situated.
15. ASSIGNMENTS.
a. Except for sale or assignment of this lease to a bank
or lending institution for financing purposes, no sublease,
transfer o~ assignment by the Lessee of this lease or any part
hereof or interest herein, directly or indirectly, voluntarily or
involuntarily, shall be made unless 'such sub-lease, transfer or
assignment is first approved by the Lessor in writing, which
approval shall not be unreasonably withheld. Lessee shall not at
any time assign ,this Agreement or any part thereof, nor sublet all
or any' portion of the leased premises herein without written
approval of County; provided, however, that County shall not
unreasonably withhold approval.
The prohibitions above stated
include assignment of this Agreement to any corporation with which
Le~~ee may merge or consolidate or which may succeed all or any
portion of the business of Lessee.
b. The Lessor reserves the right prior to any assignment
of this lease or any interest herein, or prior to possession by any
11
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, .
~
Mortgagee or Lessor of improvements of the Company through default
by the Company,. to approve any proposed Assignee, Mortgagee or
Lessor of improvements of the Company, (collectively referred to in
this paragraph as Assignee), which approval shall not be
unreasonably withheld.
The Lessor shall consider, in approving
such proposed Assignee, the ability of such proposed Assignee to
perform the duties required of the Company as set out in this
lease, the fin~ncial ability and capacity of such proposed Assignee
to meet the obligations requiredby this lease and the general
reputation of the proposed Assignee in the area in which the
proposed Assignee has done business in the past. No assignment of
any kind or nature shall be valid until the same has the prior
approval of~the Lessor, and when such approval is granted by the
Lessor, then, and only then, will the Company be released from the
obligations required by this Lease Agreement.
c. In constructing improvements on the leased premises
the Company may be required to mortgage such improvements. In the
event a default should occur in any of the terms of any such
mortgage or other agreement encumbering such improvements, the
Mortgagee or Lessor of such improvements may have the right and
option to take possession of the leased property and all
improvements located thereon to the exclusion of the Company. Such
right and option shall be subject to the conditions of approval as
-.
set forth in Paragraphs 16 a. and b, regarding the assignment of
this lease, or possession by Mortgagees or Lessors of improvements.
If for any reason said Mortgagee or Lessor does not take posses~ion
12
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after the default, the Lessor shall have the right to occupy and
use such improvements itself or to enter into any agreement or
agreements with other persons or parties as to their uses subject
only to the payment of any monies owed and outstanding against such
improvements. In the event the Lessor should not elect to so take
possession of all improvements located thereon as set forth above,
the Lessor or any Mortgagee of.such improvements under default as
the case might be, shall have the right to remove all of .said
improvements from the leased property without obligation to the
Lessor or damage to the leased property or any other Airport
property.
16.
EMPLOYEES OF THE COMPANY.
The Company shall, if so
directed by~the Lessor in writing, require its employees who come
in direct contact with the public on the Airport to wear a uniform
or badge by which they may be known and distinguished as employees
of the Company.
17. FEDERAL, STATE AND LOCAL LAW. The Company shall comply
with all federal, state and local laws, county and local
ordinances, rules and regulations now and hereafter in force which
may be applicable to the operation of its business at the Airport,
including the Minimum Standards for Fixed Base Operators, as
amended from time to time.
'.
18. PAYMENT OF TAXES. The Company shall be liable for any
and all taxes, penalties and interest herein assessed, levied or
charged by any governmental agency against the Company's tangible
personal property situated on the Lessor's premises and ad valorem
13
:::''':~::i
taxes, if any, assessed against the Company's leasehold interest
under this Agreement.
However, Company shall not be deemed in
default of this obligation pending the outcome of any legal
proceeding by it contesting such tax liability.
19.
FIRE LOSS - INSURANCE.
The Company shall replace any
buildings or facilities destroyed by fire and return them in
predamage condition so that the replacement will be equivalent in
value to the original facilities.
Lessor shall permit a
proportionate abatement of rent during a reasonable time for the
repair or replacement of such buildings or facilities. The Company
agrees to supply at its own cost and expense fire and extended
coverage of at least 80% of the value of the property and to
maintain h~ngar keeper's liability coverage with insurance
companies approved by the Lessor.
20. WORK STOPPAGE OR STRIKE. In. the event operations of the
Company are substantially curtailed or interrupted for any reason
beyond the control of the Company, including employees strikes
against the Company or damage to or destruction to the assigned
premises' by fire or other casualty including war, civil
insurrection or act of God, such condition shall operate to relieve
the Company of its obligations to pay charges and fees required
under this lease by creating a moratorium on payments to the extent
of and in the same proportion as Company's operations are curtailed
,
or interrupted; provided, the Company shall at all times use its
best efforts to prevent, minimize, or remedy such curtailment or
interruption.
14
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21. WAIVER OF PERFORMANCE. Failure of the Lessor to insist
in anyone or more instances upon a strict performance by the
Company of any of the provisions, terms, covenants, reservations,
conditions or stipulations herein shall not be deemed to have been
made, in any instance, unless specifically expressed in writing by
the Lessor as an amendment to this lease.
22. NOTICES TO THE LESSOR AND THE COMPANY. Notices to the
Lessor shall be sufficient as sent by certified mail, postage
prepaid, addressed to the Monroe County Board of County
Commissioners, c/o County Administrator, 5100 College Road, Wing 2-
PSB, Key West, Florida 33040, and notices to the Company shall be
sufficient if sent by certified mail, postage prepaid, addressed to
the Company ~t the leasehold address set forth in this lease or to
other respective addresses as the parties hereto may designate in
writing from time to time.
23.
STANDARDS OF SERVICE.
It is expressly understood and
agreed as a condition of this Agreement that the Company, its
tenants and sUblessees, shall conduct a first-class commercial
aviation .service adequate at all times to meet the reasonable
demands for such service on the Airport, in accordance with the
Minimum Standards for Fixed Base Operators adopted by the Lessor
and as amended from time to time. 'The Company, its tenants and
sublessees agree to conduct said business in a proper and courteous
,
manner, to furnish good, prompt and efficient services at all times
and to provide at a minimum and at all times during the term of
this lease. In the event the Company fails to perform its duti~s
15
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.
in accordance with this Section and to the reasonable satisfaction
of the Lessor, then the Lessor shall so inform Company in writing
describing the particulars of the unsatisfactory performance and
giving the Company a thirty (30) day period within which to correct
the conditions to the satisfaction of the Lessor. In the event the
Company fails to correct the default, the Lessor reserves the right
to terminate this Agreement thirty (30) days after the written
notice to the Company hereunder.
24. INDEMNIFICATION.
a. The Company agrees to indemnify fully and save and
hold harmless Lessor, its officers, agent and employees from and
against all loss of damages, claims, liabilities and causes of
action of e~ery kind, character and nature as well as costs and
fees, including reasonable attorneys fees connected therewith and
the expense of any investigation thereof based upon or arising out
of damages or injuries to third persons or their property to the
extent they are caused by the negligence of the Company, its
off icers, agents or employees.
Lessor shall give the Company
prompt and reasonable notice of any such claims or actions and the
Company shall have the right to investigate, compromise, and defend
the same to the extent of its own interest.
b. The Lessor agrees to indemnify fully and save and
hold harmless Company, its officers, agents and employees from and
'.
against all loss of damage, claims, liabilities, causes of action
of every kind or character and nature as well as costs and fees
including reasonable attorneys' fees connected therewith and the
16
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expenses of the investigation thereof based upon or arising out of
damages or injuries to third persons or their property to the
extent caused by the negligence of the Lessor. Company shall give
to the Lessor prompt and reasonable notice of any such claims or
actions, and the Lessor shall have the right to investigate,
compromise, and defend the same to the extent of its own interest.
c. Company agrees to carry and keep in force
comprehensive general liability insurance covering personal injury
and property damage and such other insurance as may be necessary to
protect Lessor herein from such claims and actions set forth in the
above indemnity clause. The limits of said insurance shall be as
required by the Lessor's Standards for Fixed Base Operators, as
amended fro~ time to time. The Company shall furnish the Lessor
with proper certification that such insurance is in force and will
furnish additional certificates as evidence of changes of such
insurance.
d. Lessor agrees to carry and keep in force public
liability insurance covering personal injury and property damage,
and such other insurance as may be necessary to protect Lessor
herein from such claims and actions aforesaid. Lessee agrees to
carry and keep force such insurance within minimum limits of
liability for personal injury in a'sum not less than $300,000 for
anyone person, and $500,000 for anyone accident; and for property
,
damage in a sum not less than $200,000; and Comprehensive General
Liability coverage with combined single limits for bodily injury
and property damage in the amount of $1,000,000; and to furnish
17
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Lessor with proper certificate certifying that such insurance is in
force. Lessee shall carry its insurance coverages with insurance
companies authorized to do business in the state of Florida.
25.
NON-EXCLUSIVE RIGHTS.
It is further covenanted and
agreed that nothing contained in this Agreement shall be construed
to grant or authorize the granting of any exclusive right within
the meaning of Section 308 of the Federal Aviation Act of 1958.
26. GRANT AGREEMENTS. The leased premises and the Airport
are subject to the terms of those certain sponsors' assurances made
to guarantee the public use of the airport as incident to grant
agreements between the Lessor and the United States of America as
amended and the Quit Claim Deed from the United States of America,
predecessor in title to the leased premises. The parties represent
that none of the provisions of this Agreement violate any of the
provisions of the sponsors' assurance agreement or said Quit Claim
Deed.
27. RIGHT TO DEVELOP THE AIRPORT. It is further covenanted
and agreed that the Lessor reserves the right to further develop
and improve the Airport and all landing areas and taxiways as it
may see fit regardless of the desires or the views of the Compan~
and without interference and hindrance provided, however, that such
development or improvement does not adversely affect Company's use
and occupancy under this Agreement.
,
28. NON-DISCRIMINATION. The Company for itself, its personal
representative, successors in interest and assigns as part of
consideration hereof, does hereby covenant and agree, as a covenant
18
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running with the land that:
1. No person on the grounds of sex, age, religion,
physical handicaps, race, color and national origin, shall be
excluded from participation in, denied the benefits of, or
otherwise be subjected to discrimination in the use of said
facilities.
2. That in the const~uction of any improvements on, over
or under such land and the furnishing of services thereon, no
person on the grounds of race, color or national origin shall be
excluded from the participation in, denied the benefits of, or
otherwise be subjected to discrimination.
3. Company shall use the premises in compliance with
other requirements imposed by and pursuant to Title 49, Code of
Federal Regulations Department of Transportation, Subtitle A,
Office of the Secretary, Part 21, Non~discrimination in Federally
assisted programs of the Department of Transportation, Effectuation'
of title 6 of the Civil Rights Act of 1964, and as the regulations
may be amended.
29., RIGHT TO AMEND. In the event that the Federal Aviation
Administration or its successors require modification or change in
this Agreement as a condition precedent to the granting of funds
for the improvement of the Airport; the Company agrees to consent
to such amendments, modifications or requirements of this Agreement
as may be reasonably required to obtain such funds provided,
however, that in no event will the Company be required pursuant to
this paragraph to agree to an increase in the rent provided for
19
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hereinunder; or to agree to a reduction in size of the leased
premises or to a change in the use to which the Company has put the
leased premises (provided it is an authorized use hereunder)
without an adjustment in rent.
30. REGULATIONS OF THE LESSOR. The occupancy and use of the
Company of the leased premises and the rights herein conferred
upon the Company shall be subject to the Lessor's Standards for
Fixed Base Operators, as amended from time to time, and to valid
rules and regulations as are or may hereafter be prescribed by the
Lessor through the lawful exercise of its powers provided, however,
that no such rule or ~egulation or standard shall be of such nature
as to interfere with or cause any derogation or infringement with
or upon the rights and privileges herein in this agreement granted
to the Company. The Company shall be given advance notice of any
proposed change or addition to such rules or regulations and an
opportunity to be heard thereon.
All the terms, conditions and
covenants of this Agreement shall inure to the benefit of and be
binding upon he successors and assigns of the parties hereto.
31.. CONSTRUCTION OF AG'REEMENT. This Agreement is made in and
shall be construed in accordance with the laws of the State of
Florida.
All duties, obligations and liabilities of Lessor and
Company with respect to the leased premises are expressly set forth
herein, and this Agreement can only be amended in writing and
agreed to by both parties.
32. RECORDING. This Agreement when executed and delivered
20
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will be recorded in the Public Records, Monroe County, Florida, and
cost of said recording shall be paid for by the Lessor.
33. WASTE. The Lessee agrees to commit no waste nor permit
any waste to be committed to the leased premises, and Lessee shall
keep the premises at all times in a clean condition, free from the
accumulation of trash and other waste materials, and shall protect
said premises from any and all .fire hazards and surrender the same
at the termination of this lease in as good condition as they now
are, ordinary wear and tear and damage by the elements excepted.
The Lessor shall have the right at any time to enter upon the
leased facilities for the purpose of inspecting same.
34. NON-INTERFERENCE. The Lessor may at any time during the
effective period of this lease enter into contracts with any
passenger or freight-carrying airlines for the use of the Airport
facilities, or with other fixed base operators, and nothing herein
contained shall be construed to preclude the Lessor from so doing,'
and the Lessee agrees to cooperate with the Lessor and with any and
all airlines contracted with by the Lessor for the use of said
airport 'facilities in a manner so as to encourage and not to in
anyway interfere with the use of the said Airport facilities by any
airline operating there or by other fixed base operators.
35.
LITIGATION EXPENSES.
'In the event either party is
required to enforce any of the terms of this Agreement against the
,
other party, the defaulting party shall pay all costs and expenses
applicable thereto, including reasonable attorneys' fees, whether
initial court, appellate court, or any other proceeding.
21
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36.
INTERPRETATION.
This Lease Agreement shall be
interpreted and enforced in accordance with the laws of the state
of Florida, and the unconstitutionality or unenforceability of any
part hereof shall not affect the enforceability of any other part.
37. OTHER FIXED BASE OPERATORS. The Lessor agrees that it
shall comply with the provisions of 49 USC S1718(a) (1), with all
FAA rules, and with all other laws, rules or regulations concerning
entering into contracts with other fixed base operators on terms
more favorable than those herein granted. No lease agreement for
a similar fixed base operation on the Airport shall be entered into
by the Lessor with any other person, firm, corporation, or
partnership on terms which are more advantageous or upon conditions
less stringent or at a lower rental for comparable lands and
buildings than for those herein devised, in accordance with 49 USC
S1718 (a) (1) .
38.
NON-COMPETITION BY LESSOR.
The Lessor agrees that it'
will not itself provide any of the services herein contracted for,
nor otherwise enter into competition with the Company's business
herein authorized, unless and until this Agreement has been
breached by the Company and has been declared in default and
terminated by the Lessor.
39. PARCEL C TERMINATION. The Lessor reserves the right to
terminate this lease only as to the additional General Aviation
'.
Apron parcel as described on Exhibit "C" with thirty (30) days
written notice to Lessee if the Lessor determines that the lease of
the additional General Aviation Apron parcel is a violation of FAA
22
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. ,
,
directives concerning competition opportunities for additional
FBOs.
In the event the Lessor exercises the right to terminate
this lease as to the space described on Exhibit "C", all other
provisions of this lease shall remain in full force and effect
except those provisions specifically regarding the space described
on Exhibit "C".
40. REDETERMINATION OF RENT FOR GENERAL AVIATION PARCEL
DESCRIBED ON EXHIBIT "A". In the event the Company exercises one
or both of its options to renew this lease for an additional term
as provided in Paragraph 6 hereof the base rent for Parcel A the
General Aviation Parcel shall be adjusted to reflect a fair rental
on the leased Airport land. Fair rental value is a market based
concept established by appraisal then multiplying the appraised
value by ten percent (10%) (eg, if the appraised value is $100,000,
the annual fair rental value will be $10,000). In determining the
fair market value the parties agree that an appraisal shall be'
based upon usage of the land by a fixed base operator as opposed to
the highest and best use appraisal method.
It shall be the
Company's responsibility to 'obtain and pay for said appraisal.
41. The Company's right to exercise the two (2) options to
renew referred to in Paragraph 6 above shall be conditioned upon
the Company making capital improvements during the initial term,
i.e., ten (10) years, of this lease in an amount not less than
'.
$269,000. These additional improvements shall not be included in
the appraised value for Rent Redetermination in Paragraph 42 above.
23
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IN WITNESS WHEREOF, the parties have hereunto set their hands
and affixed their seals on this, the day and year first written
above.
BY:
ONROE,
~
( SEAL)
Danny L. Kolhage,
Clerk
Attest:' ~~ e. ~~~
CLERK ",
BY:
INC. ,
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,',1 ./ \ \ '. j '.:' SECRETAR
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( SEAL)
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Atuw-nov's Office
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