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Item G6 FROM FAX NO. Jul. B9 2001 09:52AM P2 BOARD OF COUNTY COMMISSION":I{S AGENDA ITEM SUMMARY Meeting Date: 07.1~.OI J)ivision: County Administrator Bulk Item: Yes No X Department: AiTports AGENDA ITEM WORDING: Fonnal presentation offJonda Keys Marathon Airport Terminal RestaUrant proposal. Request Approval to negotiate a contract and identify the funding sources. nEM BACKGROUND: William Ehrhom. the sole respondent to a Request for Proposa.lslBids for unJcasatlavaiJablc space in the Marathon Airport T erminaJ will give a formal presentation orhis proposal for a restaurant at the airport. IJREVIOUS REVELANT DOCe ACrrON: return with Cl romull prcSC;.'utation. On 6-21-01 BOCC requested that the respondent CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATIONS: Approval TOTAL COST: Nt A COST TO COUNTY: BUDGETED: Yes No REVENUE PRODUCING: Yes No AMOUNT PER YEAR S APPROVED BV: COlmty Atty _ OMBlPurchasing _ Risk Management_ DIVISION DIRECTOR APPROV At: MARATHON AIRPORT MANAGER APPROVAl.: ~r__ Q ThO Cook ~~? ~~- \ James Roberts County Administrator DOCUMENTATION: Included To Follow Not Rcquircd_N/A_ DISPOSITION: AC"~NDAI1')~M #I / --c;,--? Purchasing Office 5100 College Road Public Service Building Key West, FL 33040 Delivered by Federal Express at the Cross Wing Room #002, Stock Island RE: PROPOSAL FOR MARATHON TERMINAL The following proposal is submitted in response to the Request for Proposal dated May 14,2001 and for the purpose of providing a bid for certain space described as unleased and available. The proposal is hereby submitted by Ehrhom LLC (LLC) wholly owned by William and MaryAnn Ehrhom of 12631 Three Sisters Rd. Potomac Md. 20854 and 748 30th St., Marathon Florida, to lease the available space described as: I-Upstairs unimproved office area; approx.l035sq.ft., 2-Landscapped inner garden area; approx. 1500sq ft., Plus in addition; 3-approx. 1000 sq. ft. of existing tenninal space as described in the attached floor plan (see attachment A.) This proposal is valid for a period of ninety (90) days from the date of submission, May 31,2001. SUMMARY The proposed use of the leased premises is to develop and manage a restaurant and bar within the Marathon airport terminal. In order to reasonably ensure the success of the restaurant, our intention is to build a destination quality general aviation facility within the existing tenninal structure that will attract personal and business aircraft to the terminal facility. Our approach is to augment the current plans for FAR Part 121 scheduled carriers as described by the Airport Manager Ms. Theresa Cook, with a separate general aviation ramp that would be operated and managed by LLC. The proposed use will not include fuel which will be supplied by existing fixed based operators (FBO's). The objective is to create a general aviation ramp that will attract non-scheduled aircraft and significant numbers of embarking and disembarking passengers. Adding the general aviation traffic to the scheduled airline service passenger traffic projected by the current Marathon Tenninal plan, we believe that a long-term lease on specified tenninal premises can A justify the cost of tenant and other capital improvements included in this proposal. n. TIIE PROPOSAL We propose that Ehrhom LLC (LLC) enter into a fifteen (15) year lease with Monroe County (the County) for premises described above. Estimated capital improvements of approximately $750,000 are required to execute the construction of the restaurant, partition the general aviation (GA) facility from the scheduled airline (FAR part. 121), and various other construction required to execute the floor plan as described in the attached floor plan (Attachment. A.). ~ Monroe County would agree to participate in the funding for the permanent enclosure of the landscaped inner garden with matching funds from the Federal Aviation Administration and Florida Department of Transportation. The expectation is that the County would deliver1500 of unfinished space including electrical, plumbing and bathroom facilities to comply with applicable local and County building and health requirements. LLC will commit to funding the remaining tenant improvements including the construction required to finish the proposed restaurant, install fixed restaurant appliances and furnishings, partition the GA facility from scheduled and provide other such capital improvements as described on the attached drawings. LLC would enter into a 15 year lease and agree to pay Monroe County $75,000 per year or approx. $21.00 per sq. ft. net rentable for the exclusive right to manage the restaurant and the general aviation facility in accordance with guidelines and quality assurances to be detennined and agreed to with the County. In. EHRHORN LLC The LLC is a Limited Liability corporation incorporated in the state of Maryland. MaryAnn and William Ehrhom are the sole principle owners of the LLC. William Ehrhom has been an executive with Fannie Mae for the past 8 years and has 30 years of general business management and large-scale project management experience. Among Mr. Ehrhom's responsibilities both at Nomura Securities and Fannie Mae has been the facilities and premises management for all Corporate buildings. Most recently he was responsible for man::tging Fannie Mae's 1,200,000 sq. ft. of owned or leased premises. In the past twelve years Mr. Ehrhom has successfully negotiated, purchased/leased and had primary tenant construction oversight responsibility for over 1,000,000 sq. ft. of office space in Washington D.C., Virginia and New York City. Mr. Ehrhom is a resident of Florida and spends significant time at his residence located at 748 30th St. in Marathon. A biography is attached (see attachment. B) IV. STILL & SVITCHEN Still & Svitchen has provided substantially all of the architectural drawings and oversighting for the Signature Corporation, cUITently the largest provider of general aviation ramp facilities in the United States with terminal buildings in many of Americas Class B and C airports. Doug Svitchen has provided the floor plan and construction estimates for this submission and would be available for subsequent architectural, engineering and project oversight (see attachment. C). Submitted May 31, 2001 by: William EhrhorD, Ehrhom LLC 5/30/01 Ipo,', ~~'o, ..' .. Aviation News in the Florida Keys The Official New.mJHterofEAA ChfUJter1241. the. e c S oci ,---., .~ .. .. ... July. 2001 . __ _._. __._.__. _.... _______0._.____ .__. . . KMTH and the S 100 hamburger, among other bursts of free- assodating poetic fjcense.~.. - , ..' .. A good-size group showed up at the Monroe County Boani of COunty COullJlissloners meeting on June 211t to see what our etected officials W8I8 up to. Marathon AlrpoJt was very fIlI'Idnent an the agenda, and us aviation typeS needed to put ourtwo cents In, Just In case. New member BI Ehrtlom, who lies a nice PIper Seneca out of Marylanc:J. W8I1IS to build a restaurant at KMTH. "nIe BOCC listened to us all and eventually gave their blessing. A detailed ~oposaI will now be made to them. BID Is .. exea.dIve willi mortgage campany Fannie Mae and has seen his sh8r8 of behlnd-the-sc:enes restaurant financing. can he pull this aII'1 We'D see. MKEAA vated last general meetbJQ to take a proactive stance with Monroe COunty on my project that might enhance the economfc vf8b8y of our airport, so long as it Is In some way aviaIIon related. We d know that GA pilots all aver wID hop into their airplanes at the slightest excuse and fly off to distant points forthe $100 hamburger. If this restawant project Is done right It wiD attract flyers, . and that tad alone makes It aviaUon-rel8ted. If cruwds at a reaDy cool airport restaurant draw attention to other aviation Interests, then the point wII have been made. I've said It before; If we hang around wailing for a vigorous Part 121 or 135 operation to taU over the terminal, as much as, we'd like to see that. we may well miss a golden opportunity to develop ather aviation options. Lers go after aviation business, period, mid let's get KMnI jump.staJted again. I'm well aware that some MKEAA members feet this Is dabbling In poBIIcs... If a poIIIIcIan ran on a platlbnn of reducing taxes by shutting down the airport and we opposed him (or supported him) that would be polllles. If we opposed my move to shut down the airport, without mentioning names, would that be poflfcs? I don't think so. " Hell, as taxpayers it's our airport, and we do fty. airplanes there, and we better be prepared to defend It. WdJ~.