Item U02 } U.2
`,
County of Monroe
�y,4 ' �, "tr, BOARD OF COUNTY COMMISSIONERS
Mayor Michelle Coldiron,District 2
�1 `ll Mayor Pro Tem David Rice,District 4
-Ile Florida.Keys ��� � � Craig Cates,District 1
Eddie Martinez,District 3
w Mike Forster,District 5
County Commission Meeting
July 21, 2021
Agenda Item Number: U.2
Agenda Item Summary #8481
BULK ITEM: Yes DEPARTMENT: Airports
TIME APPROXIMATE: STAFF CONTACT: Richard Strickland(305) 809-5200
N/A
AGENDA ITEM WORDING: Approval of Second Amendment to Master Lease Agreement
between Coast FBO, LLC (d/b/a Marathon General Aviation) granting the FBO approval to
construct, at FBO's sole expense, a new FBO Operations Center on vacant land at the Florida Keys
Marathon International Airport.
ITEM BACKGROUND: The parties desire that the FBO construct a new FBO Operations Center
at the Airport. If the new FBO Operations Center is completed by June 1, 2024, the FBO will be
granted an extension of the Master Lease Agreement from April 5, 2041 to May 31, 2055, and on
June 1, 2024, the rent will be set at fair market value as determined by an appraisal of the premises.
PREVIOUS RELEVANT BOCC ACTION:
April 20, 2016 —Master Lease Agreement.
August 16, 2017 —Lease extension of Master Lease Agreement.
December 19, 2018 —Monthly rental increase based on fair market appraisal.
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: Approval
DOCUMENTATION:
Coast FBO 2nd Amendment
FINANCIAL IMPACT:
Effective Date: July 6, 2016
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U.2
Expiration Date: April 5, 2041 (will expire May 31, 2055 if the new FBO is completed by June 1,
2024).
Total Dollar Value of Contract:
Total Cost to County:
Current Year Portion:
Budgeted: Yes
Source of Funds:
CPI:
Indirect Costs:
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing: Yes
If yes, amount: $11,500.00 plus tax, and $0.10 per gallon of fuel sold
Grant:
County Match:
Insurance Required: Yes
Additional Details:
REVIEWED BY:
Beth Leto Completed 07/12/2021 5:01 PM
Richard Strickland Skipped 07/12/2021 4:51 PM
Pedro Mercado Completed 07/12/2021 5:02 PM
Purchasing Completed 07/12/2021 5:24 PM
Budget and Finance Completed 07/13/2021 10:43 AM
Maria Slavik Completed 07/13/2021 10:52 AM
Liz Yongue Completed 07/13/2021 11:16 AM
Board of County Commissioners Pending 07/21/2021 9:00 AM
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U.2.a
MARATHON FIXED BASE OPERATOR(FBO)
SECOND AMENDMENT
MONROE COUNTY
COAST FBO, LLC
THIS MARATHON FIXED BASE OPERATOR (FBO) SECOND AMENDMENT
is made and entered into this 21st day of July , 2021, by and between Monroe
County, a political subdivision of the State of Florida, whose address is 1100 Simonton Street
Key West Florida 33040 (hereafter "County"), and Coast FBO, LLC, whose address is 9850 E
Overseas Highway, Suite 200, Marathon, Florida 33050 (hereafter the "FBO").
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WHEREAS, on July 19, 2016, the County cancelled its existing April 6, 1998, lease and
all of its amendments with Paradise Aviation, Inc., a Florida corporation and Coast FBO, LLC.
Following the cancellation of the existing lease,the County entered into a new lease with the FBO
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(the "FBO Lease"), incorporated herein by reference; and U-
WHEREAS, on August 16, 2017, pursuant to Paragraph 5) b) of the FBO Lease the is
County entered into a written lease extension with the FBO which extended the term of the FBO
lease through April 5, 2041; and
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WHEREAS, on December 19, 2018, pursuant to Paragraph 3) d) of the FBO Lease the
County entered into a written amendment wherein the monthly rent was increased to $11,500.00
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per month plus tax for the premises based on a fair market appraisal; and
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WHEREAS,the parties desire the FBO construct a new FBO Operations Center(the"New
FBO Operations Center") on vacant land adjacent to the west side of the premises identified as
"Aircraft/Hanger Development Area" on the Jacobs' Engineering Ultimate Airport Layout Plan
dated June 2020, Sheet 4 of 14 (the "Adjacent Land") and the FBO has agreed to be solely °-
responsible for all the costs associated with the construction of the New FBO Operations Center
on the Adjacent Land, a diagram illustrating the location of the Adjacent Land is attached hereto 0
as Exhibit A-2 (July 21, 2021); and
WHEREAS, the County finds that the construction of the new FBO Operations Center
funded solely by the FBO represents a significant improvement to critical airport infrastructure
which will enhance the safe and efficient operations at the airport and provide additional revenue
generating opportunities; and
WHEREAS,the FBO has traditionally been the primary economic engine and the greatest
contributor to the airport's grant obligation requiring the airport to be as financially sustainable as
possible, not only through rent, but also through fuel flowage fees; and
WHEREAS, upon the construction of the New FBO Operations Center the FBO will be
providing the airport with an expanded state of the art facility which will provide additional
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U.2.a
funding, over and above what the FBO currently pays, to the airport through additional rent and
fuel flowage fees payable to the Airport, which will enhance the airport's financial sustainability;
NOW THEREFORE, in consideration of the mutual promises and benefits set forth
below, the receipt and sufficiency of which are hereby acknowledged, the parties agree to amend
the FBO Lease as follows:
1. Recitals: The foregoing recitals are true and correct and are incorporated herein by this
reference.
2. Section 2—Premises:
a�
a. Section 2) of the FBO Lease is hereby amended in its entirety to read as follows:
E
"a) The County leases to the FBO (i)the real property shown on Exhibit A-1 (July
21,2021), including the hangar building, line office,ramp,tiedowns, and fuel farm
and(ii)the Adjacent Land shown on Exhibit A-2,which are hereafter, collectively, ca
referred to as the"Premises."Exhibits A-1 and A-2 are incorporated herein by this
reference.
0
b) No buildings, structures or other improvements to the real property may be
added by the FBO to the Premises other than the New FBO Operations Center as
depicted in the rendering attached hereto as Exhibit"B"(July 21, 2021) during the
term of this Agreement without a separate agreement concerning the same with the
County. The FBO shall submit plans and specifications for construction of the new E
FBO Operations Center by June 1, 2022. Construction of the new FBO Operations
Center must commence by June 1, 2023. E
3. Section 3 —Rent, Fees, Late Dishonored Payments:
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a. Sub-Section 3) d) of the FBO Lease is hereby amended in its entirety to read as follows:
"d)Prior to June 1, 2024, the rental adjustments set forth in Sub-Section 3(c) shall
not include the value of the Adjacent Land shown on Exhibit A-2 or any
improvements located thereon. On June 1, 2024, the rent for the Premises
(including the Adjacent Land shown on Exhibit A-2)will be set at fair market value
as determined by an appraisal of the Premises along with the improvements
thereon. If the appraised value is lower than the rental amount in effect at that time,
then there shall be no adjustment of the rental amount. Thereafter, rent for the
Premises along with the improvements thereon will be adjusted annually in
accordance with Sub-Section 3) c) above."
4. Section 5 —Term:
a. Sub-Section 5) a) of the FBO Lease is hereby amended in its entirety to read as follows:
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U.2.a
"a)The term of this lease agreement began on July 19,2016 and ends on April 5,
2041,unless extended pursuant to Section 5)b)below."
b. Sub-Section 5)b)is hereby amended in its entirety to read as follows:
"b)The FBO shall submit plans and specifications for construction of the new FBO
Operations Center by June 1, 2022. Construction of the new FBO Operations
Center must commence by June 1, 2023. The FBO shall inform the County, upon
the earlier of,either substantial completion of the New FBO Operations Center or
upon the date the FBO assumes occupancy of the New FBO Operations Center,
that the New FBO Operations Center is ready for, or is in fact being occupied by
the FBO. If substantial completion or owner occupancy of the New FBO
Operations Center constructed pursuant to subparagraph 2) b) of this Agreement
occurs no later than June 1,2024,the County and the FBO shall enter into a written
lease extension which will terminate this Agreement on May 31,2055.
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C. Sub-Section 5)c)is hereby deleted in its entirety. ca
S. Savings Clause: All other provisions of the FBO Lease dated July 19, 2016, the Lease
017 and the First Amendment dated December
Extension Agreement dated August 16, 2
19,2018 not inconsistent herewith,shall remain in full force and effect. i
1N WITNESS V rMRFOF, each party has caused this Agreement to be executed by its
duly authorized representative as of the date first written above.
(SEAL) BOARD OF COUNTY COMMISSIONERS
ATTEST: KEVIN MADOK, CLERK OF MONROE COUNTY,FLORIDA
By By cV
Deputy Clerk Mayor Michelle Coldiron
Witnesses COAST FBO, LLC.
I—
By
Print Name By: Martin H.Biller,its Manager
By .. NFI10E COUNW
Print.Name I�.d ! l3CV
Pg19� +�?,t.
ASSI LINTY ATTORNEY
Date 7/12/21
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