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Home My WebLink About4. 2nd Amendment 07/21/2021 '. "`. Kevin Madok, CPA 'y *,, ;;;,;;;:;;,- Clerk of the Circuit Court& Comptroller— Monroe County, Florida DATE: July 29, 2021 TO: Beth Leto Airports FROM: Sally M. Abrams, P.C. SUBJECT: July 21, 2021 BOCC Meeting Attached, for your handling, is item LT2, 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. Should you have any questions, please feel free to contact me at ext. 3550. Thank you. cc: County Attorney Finance File KEY WEST MARATHON PLANTATION KEY PK/ROTH BUILDING 500 Whitehead Street 3117 Overseas Highway 88820 Overseas Highway 50 High Point Road Key West,Florida 33040 Marathon,Florida 33050 Plantation Key,Florida 33070 Plantation Key,Florida 33070 305-294-4641 305-289-6027 305-852-7145 305-852-7145 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 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 "County"), and Coast FBO, LLC, whose address is 9850 Overseas Highway, Suite 200, Marathon, Florida 33050 (hereafter the "FBO"). 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 (the "FBO Lease"), incorporated herein by reference; and WHEREAS, on August 16, 2017, pursuant to Paragraph 5) b) of the FBO Lease the County entered into a written lease extension with the FBO which extended the term of the FBO lease through April 5, 2041; and 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 per month plus tax for the premises based on a fair market appraisal; and 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 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 1 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. Section 2) of the FBO Lease is hereby amended in its entirety to read as follows: "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, referred to as the "Premises."Exhibits A-1 and A-2 are incorporated herein by this reference. 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 FBO Operations Center by June 1, 2022. Construction of the new FBO Operations Center must commence by June 1, 2023. 3. Section 3—Rent, Fees, Late Dishonored Payments: 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: 2 "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 FRO Operations Center by June 1, 2022. Construction of the new FB0 Operations Center must commence by June I,2023.The FB0 shall inform the County,upon the earlier of,either substantial completion of the New FRO Operations Center or upon the date the F130 assumes occupancy of the New FRO Operations Center, that the New FB0 Operations Center is ready for,or is in fact being occupied by the FBO. If substantial completion or owner occupancy of the New FRO Operations Center constructed pursuant to subparagraph 2)b) of this Agreement occurs no later than June 1,2024,the County and the FRO shall enter into a written lease extension which will terminate this Agreement on May 31,2055. c. Sub-Section 5)c)is hereby deleted in its entirety. 5. Savings Clause: All other provisions of the FBO Lease dated July 19, 2016, the Lease Extension Agreement dated August 16, 2017 and the First Amendment dated December 19,2018 not inconsistent herewith,shall remain in fill force and effect. /�� IN WITNESS WHEREOF,each party has caused this Agreement to be executed by its 4I�y authorized representative as of the date first written above. t, ) BOARD OF COUNTY COMMISSIONERS ST:KEVIN MADOK,CLERK OF MONROE COUNTY,FLORIDA s ICE / NiS By t As uty Clerk 0"7 gl. ( Mayor Michelle Coldiron . o Witnesses COAST PRO,LLC. :=r ri n (") T o c By . r Print Name • By:Martin H.Hiller,its Manager �t+yuro CpU iY ATTORNEY By i-I�-C.P /%/ Print Name r ndy /4111 AV'I'ROVE $r7p FORM J r/ ASSI NTT ATTORNEY Date 7/12/21 3 imarathon Gieneral Aviation Exhibit A- I July 21, 2021 r Lr Oro Sty�,, a J ou ,✓ / P�� . r , ` 9( eGr � 1�r�� / u!�+�✓l� il� r IPAil��rr urr�m f'� yr"✓ r 191}i/r,/f rg%'A�%i / ffY;,' I�. ✓„v/2p�� for l' �o �„�,,,,6,,,. �r,ui ��k.W�' ,::,��.wxw .'U /��,��fyj �I.,✓ gull^✓u➢"� r ,�71r �"�'r��iYf�x� I �r°��NU�..J/��1 � amwmm�m G f 0 l� (,)/G✓ik Vdl✓�%/1%��i/%%/l�/lam f,��/✓�//r f f� ikN°)r rAy{ �� i � ��4Vuuuuuuuu iiiiiiill ,"drl'o / " ,f r�1/i✓�v "� ,2 „ ,.//or O �/,/i//r✓r, ,,;,,'. ,r!a !/r, ;,��uu�l II,Y ,��'� .%i,/,%/.. „� %„� r /,�.�,�,fir,,,, "r,.r ;^�, r" f(,I, �i/i/i%✓ „// „rv": � Y,/('r'// i�; " I. /r/Orb, r' �; 6,/rr%i/r G ":/ ;✓�,rr a" ',/./ / ,,r.r � �i111p,� i /,i,�,Ifr (f JJ,)�l//`, /Ill✓��g7rrN Orrl �r i l UI �Vi X ,�n ,N� �.m, „-"y, Y ,r fr t 19�A",rr II i s i Illllllµ adW lllllil l r l QI7 I,��Il q, I INI IIIU IIPII Ipry'II�IIIUI'I�ipmll P I� �lu ^I I I I I II IIII r i� r I l r 0 EXHIBIT A-2 July 21, 2021 ww"InwiII............. ....I................ 0 ftAf 77�f 'o -,A) "I RI., 7 ......... ......................... ........ ............. A -y/ 1/1 211�, -p '—w n, /w/k PPS��P,,LOCATION ........... EW BUILDING MARATHON ..........I. ---WTERNAT-1Of4A AIRPORT �Aw" 7- 1�1" '11W NOTM-A"WO ts sly 0, J, 41 fill -00 W .............. ""Y" ley, I mam)mw RR "adfill le� Myll" 11111--,.......... w I NOR' 774w W-fft, Exhibit B July 21,, 2021 Zi ......... OF ..... .... miz&L 'm IN z/a/e,/ Av I at 10"1 11,1 Il I iI 1 1 giiiii ii