Item U03 U.3
County �� � .�� �y,+ ' �, "tr BOARD OF COUNTY COMMISSIONERS
Mayor Michelle Coldiron,District 2
�1 nff `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.3
Agenda Item Summary #3432
BULK ITEM: Yes DEPARTMENT: Airports
TIME APPROXIMATE: STAFF CONTACT: Richard Strickland(305) 809-5200
N/A
AGENDA ITEM WORDING: Approval of First Amendment to the Master Fixed Based
Operation (FBO) Lease Agreement with Grantair Service, Inc. and Marathon Aviation Associates,
granting the FBO approval to relocate and construct, at FBO's sole expense, the Rich Hangar on
vacant space available on the East side of the Florida Keys Marathon International Airport.
ITEM BACKGROUND: The parties desire for the FBO to relocate the Rich Hangar to space
available on the East side of the Airport adjacent to the Monroe County Sheriff's Office. When
relocation and construction of the Rich Hangar is completed, or no later than November 1, 2023, the
FBO shall pay additional monthly rent for the adjacent land pro rata on a per-square foot basis.
PREVIOUS RELEVANT BOCC ACTION: Original 20-year Marathon Fixed Base Operator
agreement approved April 10, 1998, and amended on June 21, 2001 (First amendment), September
19, 2001 (Second amendment), July 17, 2002 (Third amendment), September 18, 2002 (Fourth
amendment), March 17, 2004 (Fifth amendment), September 28, 2005 (Sixth amendment), February
21, 2007 (Seventh amendment), April 21, 2010 (Eighth amendment), August 17, 2016 (Ninth
amendment) and July 17, 2019 (Tenth Amendment). New Consolidated single Master FBO
Agreement approved October 21, 2020, effective November 1, 2020.
CONTRACT/AGREEMENT CHANGES:
N/A
STAFF RECOMMENDATION: Approval
DOCUMENTATION:
Grantair-Marathon Aviation Associates 1st Amendment
FINANCIAL IMPACT:
Effective Date: November 1, 2020
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U.3
Expiration Date: October 31, 2054
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: $7,269.44/mo. plus tax for the premises described in Exhibit A dated 7/17/2019
and $4,278.50 per month plus tax for the premises described in Exhibit B dated 7/17/2019.
Grant:
County Match:
Insurance Required: Yes
Additional Details:
REVIEWED BY:
Beth Leto Completed 07/12/2021 5:03 PM
Richard Strickland Skipped 07/12/2021 4:53 PM
Pedro Mercado Completed 07/12/2021 5:04 PM
Purchasing Completed 07/12/2021 5:25 PM
Budget and Finance Completed 07/13/2021 10:44 AM
Maria Slavik Completed 07/13/2021 10:53 AM
Liz Yongue Completed 07/13/2021 11:18 AM
Board of County Commissioners Pending 07/21/2021 9:00 AM
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U.3.a
MARATHON FIXED BASE OPERATOR(FBO)AGREEMENT
FIRST AMENDMENT
MONROE COUNTY
MARATHON AVIATION ASSOCIATES, LLC
THIS MARATHON FIXED BASE OPERATOR (FBO) FIRST AMENDMENT is made
and entered into this 21 st 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, the "County"), and Marathon Aviation Associates, LLC, a Florida limited liability company
whose address is 8800 Overseas Highway, Marathon, Florida 33050 (hereafter, the "FBO").
U_
WHEREAS, on November 4, 2020, the County cancelled its then existing April 10, 1998, lease ca
and all of its amendments with Grantair Service, Inc., a Florida corporation and Marathon Aviation
Associates, LLC, entered into new lease with the Monroe County (the "Jet Center Lease"), incorporated
herein by reference; and
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WHEREAS, ramp access for larger sizes of aircraft at the West end of the airport is limited by
the location of Rich Products Hangar,which is located immediately West of the FBO Terminal (the "Rich
Hangar"); and
WHEREAS,the Rich Hangar occupies land that could be utilized for ramp space, improve airport .E
safety and the orderly flow of aircraft on the ramp; and
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WHEREAS, the parties desire the FBO relocate the Rich Hanger to space available on the East
side of the airport on vacant land adjacent to the Monroe County Sheriff's Office and identified as "U10"
on the Jacobs' Engineering Ultimate Airport Layout Plan dated June 2020, Sheet 4 of 14" (the "Vacant
Land") and the FBO has agreed to be solely responsible for all the costs associated with the relocation and
the construction of the Rich Hangar and the associated access ramp, a diagram illustrating the location ofCh
the Vacant Land is attached hereto as Exhibit A (July 21, 2021); and
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WHEREAS, the County finds that the relocation of the Rich Hangar will enhance the safe and
efficient operations at the airport; and
0
WHEREAS, upon the relocation of the Rich Hangar the FBO shall begin paying additional rent
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 r_
receipt and sufficiency of which are hereby acknowledged,the parties agree to amend the Jet Center Lease
as follows:
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1. Recitals: The foregoing recitals are true and correct and are incorporated herein by this reference.
2. Section 2 —Premises:
a. Sub-Section 2) a) is hereby amended in its entirety to read as follows:
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"a) The County, as of the Effective Date of this Agreement,hereby leases to the FBO three
(3) individual parcels, also referred to as the premises, at the Florida Keys Marathon
International Airport as depicted in Exhibit A, Exhibit B, both dated July 17, 2019,
incorporated herein by reference along with the vacant land adjacent to the Monroe County
Sheriff's Office on the East side of the airport identified as "U10" on the Jacobs'
Engineering Ultimate Airport Layout Plan dated June 2020, Sheet 4 of 14 (the "Vacant
Land" attached as Exhibit A - July 21, 2021) on the terms and conditions set forth herein.
The FBO is hereby authorized to (i) decommission and dismantle the fuel farm located on
the parcel depicted on Exhibit A (of the original agreement) following the construction of
a new fuel farm and hangar buildings for small and midsize aircraft as depicted in the
Florida Keys Marathon International Airport, Concept Site Sketch 6 —West-V3, attached
hereto as Exhibit C (of the original agreement) and incorporated herein by this reference
(the "New Fuel Farm and Hanger Complex") and (ii) relocate the Rich Hanger from its
current location to the Vacant Land. The FBO shall submit plans and specifications for the caa
New Fuel Farm and Hangar Complex and for the relocation and construction the new Rich
Hangar (Hangar rendering attached as Exhibit B - July 21, 2021) and associated access
ramp by November 1, 2021. Construction of the new Rich Hangar and access ramp must t2
commence by November 1, 2022. i
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b. Sub-Section 2)b) is hereby amended in its entirety to read as follows:
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"No buildings,structures or other improvements to real property may be added by the FBO
to the either the premises described in Exhibit A, Exhibit B, Exhibit C (of the original E
agreement) or the Vacant Land, other than the (i) the new fuel farm and hangar buildings
complex for small and midsize aircraft depicted in Exhibit C (of the original agreement) E
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or the relocation of the Rich Hanger to the Vacant Land without a separate agreement
concerning the same with the COUNTY."
3. Section 3 —Rent, Fees, Late/Dishonored Payments: 0
a. Sub-Section 3) a) is hereby amended in its entirety to read as follows:
0
"a) The FBO must pay monthly rent on an arrears basis as follows; $7,269.44 per month >
plus tax for the premises described in Exhibit A(of the original agreement). The FBO shall
also pay monthly rent for the premises depicted in Exhibit B (of the original agreement), 0
on an arrears basis. The initial rent for the premises depicted on Exhibit B shall be
$1,023.00 per month and shall increase to $4,278.50 per month plus tax upon completion
of the New Fuel Farm and Hanger Complex ("completion" for purposes of this Sub-
Section 3(a) shall be defined as the day upon which fuel is first received at the New Fuel
Farm and Hanger Complex). Additionally, beginning on the earlier to occur of either (i) t�
November 1, 2023 or (ii) the completion of the relocation of the Rich Hanger, the
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FBO shall pay additional monthly rent plus tax for the Adjacent Land pro rata, on
a per-square foot basis. Rent shall be paid in equal monthly installments, all of
which shall be due and payable on or before the first day of each calendar month
during which this lease is in effect.Upon the failure of FBO to pay any installments
when due, the County will be entitled to charge and collect, and FBO will be
obligated to pay,a late fee of two percent(2%) of any such amount, if paid within
thirty(30)days of the date due, and five percent(5%)of any such amount,not paid
within thirty (30) days of the date due. Such late fees will be in addition to the
amount of rent due. The acceptance by the County of the overdue rental installment E
plus applicable late fees shall cure what would otherwise constitute a default by
FBO under the terms of this lease. The County,at its option,however,may refuse
a proffered overdue rental installment and late fees,declare a default, and proceed
according to paragraph 21 of this lease. In the event that any check, draft, or ca
negotiable instrument by which FBO has tendered any rent payment is returned to
the County and not honored, whether for insufficient funds or other reason, the
County will be entitled to charge and collect, in addition to any applicable late
payment fees as provided above, a fee of Twenty-five Dollars ($25.00) for such i
dishonored instrument. Such penalty fee shall also be in addition to the amount of
rent due. The acceptance by the County of the rental payment plus any applicable
late fee and penalties following the receipt of a dishonored instrument shall cure
what would otherwise constitute a default under the terms of this lease."
4. Savings Clause: Except as set forth herein, all remaining provisions of the Jet Center
Lease not inconsistent herewith, shall remain in full force and effect. E
IN WITNESS WHEREOF, 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 y
ATTEST: KEVIN MADOK, CLERK OF MONROE COUNTY,FLORIDA y
By By
Deputy Clerk Mayor Michelle Coldiron o
Witnesses MARATHON AVIATION ASSOCIATES,
LLC.
By
Print Nam By: Martin H.Hiller, its Manager
By-CA.-At* M11hNROE COUNTY ATTOnNEY
FOPIM
Print Name i.,,d 14ill 'ZIAr OVE
3 AS I TA b U ATTORNEY-
Date— 7/21/21
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July 21, 2021
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