Item C19BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: October 17, 2012 Division: County Administrator
Bulk Item: Yes Department: Airports
Staff Contact Person/Phone #: Peter Horton, 809-5200
AGENDA ITEM WORDING: Ratification of the previously executed Federal Aviation Administration
Grant #3-12-0044-030-2012 providing funding to " Obstruction Removal, Runway 25 Protection Zone (Phase 1
r- Lease buyouts and site preparation)" as more particularly described in the Project Application dated June
29,2012 at The Florida Keys Marathon Airport.
ITEM BACKGROUND: Projects are being funded 90% by FAA, with match from Operating.
PREVIOUS RELEVANT BOCC ACTION: Approval for the Mayor to execute Airport Grants from FAA
and FDOT as received in order to meet deadlines, with ratification at next BOCC meeting, Item C-2, 5-19-2010.
CONTRACT/AGREEMENT CHANGES: New grant.
STAFF RECOMMENDATION: Approval.
TOTAL COST: $166,667.00 INDIRECT COST: NA BUDGETED: Yes
DIFFERENTIAL OF LOCAL PREFERENCE: NA
COST TO COUNTY: None SOURCE OF FUNDS: FAA, Operating
COST TO AIRPORT: $16,667.00
COST TO PFC: NA
REVENUE PRODUCING: NA
APPROVED BY: County Attorney X
DOCUMENTATION:
DISPOSITION:
Included X
AMOUNT PER YEAR: NA
^
OMB/Purchasing Risk Management
Not Required
AGENDA ITEM #
MONROE COUNTY BOARD OF COUNTY COMMISSIONERS
CONTRACT SUMMARY
Contract #
Contract with: Federal Aviation Administration
( FAA)
Effective Date: Execution
Expiration Date: Open
Contract Purpose/Description: Grant providing funding to "Acquire Emergency Generator and Remove
Obstructions (Runway 25 Protection Zone)" at The Florida Keys Marathon Airport
Contract Manager: Peter Horton # 5200 Airports - Stop # 5
(name) (Ext.) (Department/ Stop)
for BOCC meeting on: October 17, 2012 Agenda Deadline: October 2, 2012
Total Dollar Value of Contract: $166,667
Budgeted? Yes
Grant: Yes - FAA
County Match: Operating
Estimated Ongoing Costs: n/a
(not included in dollar value above)
CONTRACT COSTS
Current Year Portion: 0
Account Codes: pending set up for grant #044-030
ADDITIONAL COSTS
For:
CONTRACT REVIEW
salaries, etc
Changes
Date In
Needed
Reviewer
Date Out
Yes No
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Airports Director
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Pedro Mercado
/
County Attorney
Comments:
JUNE 29, 2012
FLORIDA KEYS MARATHON AIRPORT
ATTACHMENT "A"
PROJECT PRE -APPLICATION (3-12-0044-030-2012)
GRANT DESCRIPTION AND COST BREAKDOWN SHEET
I. Grant Description
A) Obstruction Removal RPZ/RW 25 — Lease buy out
11 hangars are located in the RPZ and need to be removed. First action is to buy out the leases to enable
the airport to remove existing hangars to clear the RPZ.
..;
Administration
1,200.00
Lease buy out
14,67
Project Application
$ 900.00
Subtotal
16,7
Total $ 166,667
Entitlement Grant Request $ 150,000
Discretionary Grant Request $ 0
Total Grant Amount (90%) $ 150,000
Others (10%) $ 16,667
a N16
U.S. Department VP
of Transportation
Federal Aviation
Administration
August 17, 2012
Mr. Peter Horton
Director of Airports
3491 South Roosevelt Boulevard
Key West FL 33040
Dear Mr, Horton:
RE: The Florida Keys Marathon Airport; Marathon, FL
AIP Number 3-12-0044-030-2012
Grant Offer
Orlando Airports District Office
5950 Hazeltine National Dr., Suite 400
Orlando„ FL 32822-5003
Phone; (407) 812-6331
Fax: (407) 812-6978
We are enclosing the original and one copy of a Grant Offer for AIP Project No. 3-12-0044-030-2012 for
The Florida Keys Marathon Airport, in response to your Application for Federal Assistance dated June 29,
2012. Your acceptance of this Offer will constitute a Grant Agreement by which the government will
participate in the allowable costs of the project amounting to $150,000 (Federal share).
Once the authorized official has executed the Agreement and the official's signature has been notarized
and sealed/stamped, the attomey for the Monroe County Board of County Commissioners must certify
that the Sponsor's acceptance complies with local and state law and constitutes a legal and binding
obligation on the part of the Sponsor. Please note that the Agreement is not legal unless the attorney
signs it AFTER the Sponsor.
If the terms of this Offer are satisfactory, please execute the document as soon as possible, but not later
than August 31, 2012. To assist us in administrative reporting requirements, you are requested to notify
this office by emailing a PDF of signature page of the grant immediately upon executing the grant. Only
the original executed grant needs to be returned to this office. The remaining copy is for your file.
Please allow anproximately 30 days after returnin fin l executed grant to this office before attempting
any drawdowns from the -letter-of-credit gccount. If a drawdownis necessary before this time lease
contact the Orlando_ Air arts Dis_ rict Office dor to initiating the draw.
Sincerely,
Bart Vernace P. E.
Manager
2 Enclosures
cc; w/enclosure (grant)
FDOT/6
012
BY:Iv-
Q? GRANT AGREEMENT
U S Department
of Transportation
FedarafAviedon
Admintstradon
Date of Offer. August 17, 20112
Project Number: 3-12-0044-030-20rl2
Recipient: Monroe County Board of County Commissioners (Herein caged Sponsor)
Airport The Florida Keys Marathon Airport
OFFER
to paj, as 111 Initel States- snare.
following�
'Obsiructon Removal, Runway 25 Runway Prolection Zone (Phase 1 — Lease buyouts and site preparation)'
as more particularly described In the Project Application dated June 29, 2012.
The maximum obligation of the United States payable under this Offer shall be $1%000 for airport development
it114"A"Wa"""416 0a.1 I W 64s 11 Aviation Act of 1958, `17
1 9 T W illt IWWW"visi
amenueu, Luuw6u It 1110
provided by Title 49 of the United States Code, constituting the contractual obligations and rights of the United States and the Sponsor.
UNITED STATES OF AMERICA 1 —
FEDERAL AVIATION ADMINISTRATION 'dan, ®rAi�WrtDi ce
The Sponsor agrees to accomplish the project in compliance with the terms and conditions contained herein and in the document 'Terms
and Conditions of Accepting Airport Improvement Program Grants* dated April 13, 2012. The Sponsor specifically acknowledges that
knowingly and willfully providing false information to the Federal Government is a violation of 18 U.S.C. Section 1001 (False Statements)
and could subject the Sponsoes Designated Official Representative to fines, imprisionmeni or both if the U.S. Department of Justice
determines the official acted outside the scope of histher duties.
nd anfoe- C,
Executed thlsgr.y.f 20
1) Name of Spo a
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ntai�e
Signiaw—re olf Apon 'or' Designated 10M t �e �Te
0.6 Of
Title
T
Title
CERTIFICATE OF SPONSOR'S ATTORREY
01A-C 4V'Q acting as Attorney for the Sponsor do hereby cel
rrmni A rpPment under the laws of the State of Floridar Further,
PM
F-IT-MERWTow
Department
of Transportation
Federal Aviation
Administration
Terms and Conditions
of Accepting Airport Improvement Program Grants
This document was compiled from multiple government source documents.
This document contains the terms and conditions of accepting Airport Improvement Program (AIP) grants from
the Federal Aviation Administration (FAA) for the purpose of carrying out the provisions of Title 49, United States
Code. These terms and conditions become applicable when the Sponsor accepts a Grant Offer from the FAA
that references this document. The FAA may unilaterally amend the terms and conditions by notification in
writing, and such amendment will only apply to grants accepted after notification.
L DEFINITIONS
A. Sponsor —An agency that is legally, financially, and otherwise able to assume and carry out the
certifications, representations, warranties, assurances, covenants and other obligations required in this
document and in the accepted Grant Agreement.
is Project —Work as identified in this grant Agreement.
C. Primary Airport —A commercial service airport the Secretary of Transportation determines to have mora
than 10,000 passengers boarding each year.
D. "this grant" — In this document the term "this grant" refers to the applicable grant agreement or granl
agreements that incorporate(s) these Terms and Conditions as part of the grant agreement.
II. CER TIFICA TIONS
Title 49, United States Code, section 47105(d), authorizes the Secretary to require certification from the
Sponsor that it will comply with statutory and administrative requirements in carrying out a project under the
AIP. The following list of certified items includes major requirements for this aspect of project implementation.
However, the list is not comprehensive, nor does it relieve sponsors from fully complying with all applicable
statutory and administrative standards. In accepting this grant, the Sponsor certifies that each of the following
items was or will be complied with in the performance of grant agreements. If a certification cannot be met for
a specific project, the Sponsor must fully explain in an attachment to the project application.
A. Sponsor Certification for Selection of Consultants. General standards for selection of consultant
services within Federal grant programs are described in Title 49, Code of Federal Regulations (CFR), and
Part 18.36. Sponsors may use other qualifications -based procedures provided they are equivalent to
specific standards in 49 CFR 18 and Advisory Circular 150/5100-14, Architectural, Engineering, and
Planning Consultant Services for Airport Grant Projects.
1. Solicitations were (will be) made to ensure fair and open competition from a wide area of interest.
2. Consultants were (will be) selected using competitive procedures based on qualifications, experience,
and disadvantaged enterprise requirements with the fees determined through negotiations.
3. A record of negotiations has been (will be) prepared reflecting considerations involved in the
establishment of fees, which are not significantly above the Sponsor's independent cost estimate.
4. If engineering or other services are to be performed by Sponsor force account personnel, prior
approval was (will be) obtained from the FAA.
5. The consultant services contracts clearly establish (will establish) the scope of work and delineate the
division of responsibes between all parties engaged in carrying out elements of the project.
6. Costs associated or ineligible for AIP funding are (will be) clearly idened and separated from
eligible items in solicitations, contracts, and related project documents.
7. Mandatory contact provisions for grant -assisted contracts have been (will be) included in consultant
services contracts.
B. The cost -plus -percentage -of -cost methods of contracting prohibited under Federal standards were
not (will not be) used.
9. If the services being procured cover more than the single grant project referenced in this certification,
the scope of work was (will be) specifically described in the advertisement; and future work will not be
initiated beyond five years.
B. Sponsor Certification for Project Plans and Specifications. AIP standards are generally described in
Advisory Circulars 150/5100-6, Labor Requirements for the Airport Improvement Program; 150/5100-15,
Civil Rights Requirements for the Airport Improvement Program; and 150/5100-16, Airport Grant
Assurance One —General Federal Requirements. A list of current advisory circulars with specific
standards for design or construction of airports, as well as procurementlinstallation of equipment and
facilities, is referenced in standard airport sponsor Grant Assurance 34 in this document.
1. The plans and specifications were (will be) prepared in accordance with applicable Federal standards
and requirements; so no deviation or modification to standards set forth in the advisory circulars, or
State standard, is necessary other than those previously approved by the FAA.
2. Specifications for the procurement of equipment are not (will not be) proprietary or written so as to
restrict competition. At least two manufacturers can meet the specifications.
1 The development included (to be included) in the plans is depicted on the airport Layout plan
approved by the FAA.
4. Development that is ineligible for AIP funding has been (will be) omitted from the plans and
specifications or otherwise identified to assure that no reimbursement will be made for the cost of the
ineligible item(s).
5. The process control and acceptance tests required for the project by standards contained in Advisory
Circular 150/5370-10 are (will be) included in the project specifications.
6. If a value engineering clause is incorporated into the contract, concurrence was (will be) obtained
from the FAA.
7. The plans and specifications incorporate (will incorporate) applicable requirements and
recommendations set forth in the Federally approved environmental finding.
8. For construction activities within or near aircraft operational areas, the requirements contained in
Advisory Circular 150/5370-2 have been (will be) discussed with the FAA, as well as incorporated into
the speccations; and a safety/phasing plan has FAA's concurrence, if required.
9. The project was (will be) physically completed without Federal participation in costs due to errors and
omissions in the plans and specifications that were foreseeable at the time of project design.
C. Sponsor Certification for EquipmentlConstruction Contracts. General standards for equipment and
construction contracts within Federal grant programs are described in Title 49, CFR, Part 18.36. AIP
standards are generally described in FAA Advisory Circular (AC) 150/5100-6, Labor Requirements for the
Airport Improvement Program; 150/5100-15, Civil Rights Requirements for the Airport Improvement
Program; and 150/5100-16, Airport Grant Assurance One -General Federal Requirements. Sponsors
may use State and local procedures provided procurements conform to these Federal standards.
1 . A code or standard of conduct is (will be) in effect governing the performance of the Sponsor's
officers, employees, or agents in soliciting and awarding procurement contracts.
2. Qualified personnel are (will be) engaged to perform contract administration, engineering supervision,
construction inspection, and testing.
3. Unless the FAA approved (has approved) otherwise, the procurement was (will be) publicly
advertised using the competitive sealed bid method of procurement.
4. The bid solicitation clearly and accurately describes (will describe):
a. The current Federal wage rate determination for all construction projects; and
b. All other requirements of the equipment and/or services to be provided.
5. Concurrence was (will be) obtained from FAA prior to contract award under any of the following
circumstances:
a. Only one qualified person/firm submits a responsive bid;
b. The contract is to be awarded to other than the lowest responsible bidder;
c. Life cycle costing is a factor in selecting the lowest responsive bidder; or
a. Proposed contract prices are more than 10 percent over the Sponsor's cost estimate.
6. All contracts exceeding $100,000 require (will require) the following provisions:
A bid guarantee of 5 percent, a performance bond of 100 percent, and a payment bond of 100
percent;
b. Conditions specifying administrative, contractual, and legal remedies, including contract
termination, for those instances in which contractors violate or breach contact terms; and
c. Compliance with applicable standards and requirements issued under Section 306 of the Clean
Air Act (42 USC 1857(h)), Section 508 of the Clean Water Act (33 USC 1368), and Executive
Order 11738.
Mlcgz�,��
a. Compliance with the Copeland "Anti -Kick Back" Act; and
b. Preference given in the employment of labor (except in executive, administrative, and supervisory
positions) to honorably discharged Vietnam -era veterans and disabled veterans.
8. All construction contracts exceeding $2,000 contain (will contain) the following provisions:
a. Compliance with the Davis -Bacon Act based on the current Federal wage rate determination; and
b. Compliance with the Contract Work Hours and Safety Standards Act (40 USC 327-330), Sections
103 and 107.
9. All construction contracts exceeding $10,000 contain (will contain) appropriate clauses from 41 CFR
Part 60 for compliance with Executive Orders 11246 and 11375 on Equal Employment Opportunity.
10-w-w-r-on
Act and 49 CFR 23 and 49 CFR 26 for Disadvantaged Business Enterprises.
11. Appropriate checks have been (will be) made to assure that contracts or subcontracts are not
awarded to those individuals or firms suspended, debarred, or voluntarily excluded from doing
business with any U.S. Department of Transportation (DOT) element and appearing on the DOT
Unified List.
D. Sponsor Certification for Real Property Acquisition. General requirements on real property
acquisition and relocation assistance are in Title 49, CFR, Part 24 and the Uniform Relocation Assistance
and Real Property Acquisition Policies Act of 1970 (Uniform Act).
Sponsor's attorney or other ■ has (will have) good and sufficient title and title evidence on
property in the project.
2. If defects and/or encumbrances exist in the title that adversely impact the Sponsor's intended use of
property in the project, they have been (will be) extinguished, modified, or subordinated.
3. If property for airport development is (will be) leased, the following conditions have been (will be) met:
a. The term is for 20 years or the useful life of the project;
b. The lessor is a public agency; and
c. The lease contains no provisions that prevent full compliance with this grant agreement.
4. Property in the project is (will be) in conformance with the current Exhibit "A" property map, which is
based on deeds, title opinions, land surveys, the approved airport layout plan, and project
documentation.
5. For any acquisition of property interest in noise sensitive approach zones and related areas, property
interest was (will be) obtained to ensure land is used for purposes compatible with noise levels
associated with operation of the airport.
6. For any acquisition of property interest in runway protection zones and areas related to 14 CFR 77
surfaces, property interest was (will be) obtained for the following:
a. The right of flight;
b. The right of ingress and egress to remove obstructions; and
c. The right to restrict the establishment of future obstructions.
7. Appraisals prepared by qualified real estate appraisers hired by the Sponsor include (will include) the
following:
a. Valuation data to estimate the current market value for the property interest acquired on each
parcel; and
b. Verification that an opportunity has been provided the property owner or representative to
accompany appraisers during inspections.
for the offer of just compensation, and the written appraisals and review appraisal are (will be)
available to FAA for review.
9. A written offer • ac,,- uire each•arcel was (will •_ presented to the property • for not less than
the approved amount of just compensation.
10, Effort was (will be) made to acquire each property through the following negotiation procedures:
a. No coercive action was (will be) taken to induce agreement; and
b. Supporting documents for settlements are (will be) included in the project files.
11. If a negotiated settlement is not reached, the following procedures were (will be) used:
a. Condemnation was (will be) initiated and a court deposit not less than the just compensation was
(will be) made prior to possession of the property; and
b. Supporting documents for awards were (will be) included in the project files.
12. If displacement of persons, businesses, farm operations, or non-profit organizations is involved, a
relocation assistance program was (will be) established, with displaced parties receiving general
information on the program in writing, including relocation eligibility, and a 90-day notice to vacate.
13. Relocation assistance services, comparable replacement housing, and payment of necessary
relocation expenses were (will be) provided within a reasonable time period for each displaced
occupant in accordance with the Uniform Act.
E. Sponsor Certification for Construction Project Final Acceptance. General requirements for final
acceptance and closeout of Federally funded construction projects are in Title 49, CFR, Part 18.50. The
Sponsor shall determine that project costs are accurate and proper in accordance with specific
requirements of this grant Agreement and contract documents.
1. The personnel engaged in project administration, engineering supervision, construction inspection,
and testing were (will be) determined to be qualified as well as competent to perform the work.
2. Daily construction records were (will be) kept by the resident engineer/construction inspector as
follows:
a. Work in progress
b. Quality and quantity of materials delivered
c. Test locations and results
d. Instructions provided the contractor
e. Weather conditions
f. Equipment use
g. Labor requirements
h. Safety problems
i. Changes required.
3 of 18
3. Weekly payroll records and statements of compliance were (will be) submitted by the prime contractor
and reviewed by the Sponsor for Federal labor and civil rights requirements (Advisory Circulars
4, Complaints regarding the mandated Federal provisions set forth in the contract documents have been
(will be) submitted to the FAA.
5. All tests specified in the plans and specifications were (will be) performed and the test results
documented as well as made available to the FAA.
6. For any test results outside of allowable tolerances, appropriate corrective actions were (will be)
7. Payments to the contractor were (will be) made in compliance with contract provisions as follows:
a. Payments are verified by the Sponsor's internal audit of contract records kept by the resident
engineer; and
b. If appropriate, pay reduction factors required by the specifications are applied in computing final
paynI and a summary of pay reductions are made available to the FAA.
8. The project was (will be) accomplished without significant deviations, changes, or modifications from
the approved plans and specifications, except where approval is obtained from the FAA.
9. A final project inspection was (will be) conducted with representatives of the Sponsor and the
contractor, and project files contain (will contain) documentation of the final inspection.
10. Work in this orant agreement was (will be) �L�v �uleted and corrective actions reguired as a
result of the final ins-pection are completed to the satisfaction of the Sponsor.
11. If applicable, the as -built plans, an equipment inventory, and a revised airport layout plan have been
(will be) submitted to the FAA.
F. Sponsor Certification for Seismic Design and Construction. 49 CFR Part 41 sets forth the
requirements in the design and construction of the building(s) to be financed with the assistance of the
FAA. Compliance will be met by adhering to at least one of the following accepted standards�
1. Model codes found to provide a level of seismic safety substantially equivalent to that provided by use
of the 1988 National Earthquake Hazards Reduction Program (NEHRP) including:
a. The 1991 International Conference of Building Officials (IBCO) Uniform Building Code, published
by the International Conference of Building Officials, 5360 South Workman Mill Road, Whittier,
California 90601;
b. The 1992 Supplement to the Building Officials and Code Administration International (BOCA)
National Building Code, published by the Building Officials and Code Administrators, 4051 West
Flossmoor Road, Country Club Hills, Illinois 60478-5795; and
c. The 1992 Amendments to the Southern Building Code Congress (SBCC) Standard Building
Code, published by the Southern Building Code Congress International, 900 Montclair Road,
Birmingham, Alabama 35213-1206.
2. Revisions to the model codes listed above that are substantially equivalent or exceed the then current
or immediately preceding edition of the NEHRP recommended provisions, as it is updated, may be
approved by the DOT Operating Administration to meet the requirements of 49 CFR Part 41.
3. State, county, local, or other jurisdictional building ordinances adopting and enforcing the model
codes, listed above, in their entirety, without significant revisions or changes in the direction of less
seismic safety, meet the requirement of 49 CFR Part 41.
G. Sponsor Certification for Drug -Free Workplace. General requirements on the drug -free workplace
within Federal grant programs are described in Title 49, CFR, Part 29 and the Drug -Free Workplace Acl
of 1988. Sponsors are required to certify they will provide, or will continue to provide, a drug -free
workplace in accordance with the regulation.
1. A statement has been (will be) published notifying employees that the unlawful manufacture,
distribution, dispensing, possession, or use of a controlled substance is prohibited in the Sponsor's
workplace, and specifying the actions to be taken against employees for violation of such prohibition.
2. An ongoing drug -free awareness program has been (will be) established to inform employees about:
a. The dangers ofdrug abuse inthe workplace;
b. The Spmnsor'spolicy ofmaintaining adrug-free workplace;
o. Any available drug counseling, rehabilitation, and employee assistance programs; and
d. The penalties that may be imposed upon employees for drug abuse violations occurring in the
workplace.
o. Each employee to be engaged in the performance of the work has been (will be) given a copy of the
statement required within item 1above.
4. Employees have been hviU ua> notified inthe statement required by item 1 above that, aoacondition
ofemployment under this grant, the employee will:
a. Abide uythe terms o[the statement; and
b. Notify the employer in writing of his or her conviction for a violation of a criminal drug statute
5. The FAA will be notified in writing within ten calendar days after receiving notice under item 4b above
from an employee or otherwise receiving actual notice of such conviction. Employers of convicted
employees must provide notice, including position title of the employee, to the FAA. Notices shall
include the project number of each affected grant.
f. One of the following actions will be taken within 30 calendar days of receiving a notice under item 4b
above with respect to any employee who is so convicted:
a. Take appropriate personnel action against such an employee, up to and including termination,
consistent with the requirements of the Rehabilitation Act of 1973, as amended; or
b. Require such employee to participate satisfactorily in a drug abuse assistance or rehabilitation
program approved for such purposes by a Federal, State, or local health, law enforcement, or
other appropriate agency.
7. A good faith effort will be made to continue to maintain a drug -free workplace through implementation
of items 1 through 6 above.
MM
If requested by the Sponsor and authorized by the FAA, the letter of credit method of payment may be
used. It is understood and agreed that the Sponsor agrees to request cash withdrawals on the letter of
credit only when actually needed for its disbursements and to timely reporting of such disbursements as
required. It is understood that failure to adhere to this provision may cause the letter of credit to be
revoked.
N. Central Contractor Registration and Universal Identifier Requirements
1. Requirement for Central Contractor Registration (CCR)
Unless you are exempted from this requirement under 2 CFR 25.110, you as the recipient must
maintain the currency of your information in the CCR until you submit the final financial report
required under this award or receive the final payment, whichever is later. This requires that you
review and update the information at least annually after the initial registration, and more frequently if
required by changes in your information or another award term.
2. Requirement for Data Universal Numbering System (DUNS) Numbers
If you are authorized to make subawards under this award, you:
a. Must notify potential subrecipients that no entity (see definition in paragraph C of this award term)
may receive a subaward from you unless the entity has provided its DUNS number to you.
b. May not make a subaward to an entity unless the entity has provided its DUNS number to you.
3. Definitions
For purposes of this award term:
a. Central Contractor Registration (CCR) means the Federal repository into which an entity must
provide information required for the conduct of business as a recipient. Additional information
about registration procedures may be found at the CCR Internet site (currently at
http.-&vww.ccrgov).
b. Data Universal Numbering System (DUNS) number means the nine -digit number established and
assigned by Dun and Bradstreet, Inc. (D&B) to uniquely identify business entities. A DUNS
number may be obtained from D&B by telephone (currently 866-705-5711) or the Internet
(currently at http.-Ilfedgov.dnb.comAvebform).
c. Entity, as it is used in this award term, means all of the following, as defined at 2 CFR part 25,
subpart C:
1 ) A Governmental organization, which is a State, local government, or Indian Tribe;
2) A foreign public entity;
3) A domestic or foreign nonprofit organization;
4) A domestic or foreign for -profit organization; and
5) A Federal agency, but only as a subrecipient under an award or subaward to a non -Federal
entity.
d. Subaward:
1) This term means a legal instrument to provide support for the performance of any portion of
the substantive project or program for which you received this award and that you as the
recipient award to an eligible subrecipient.
2) The term does not include your procurement of property and services needed to carry out the
project or program (for further explanation, see Sec. 210 of the attachment to OMB Circular
A-133, "Audits of States, Local Governments, and Non -Profit Organizations")- A subaward
may be provided through any legal agreement, including an agreement that you consider a
contract.
a. Subrecipient means an entity that:
1. Receives a subaward from you under this award; and
2. Is accountable to you for the use of the Federal funds provided by the subaward.
3. A subaward may be provided through any legal agreement, including an agreement that you
consider a contract.
0. If this grant agreement includes pavement work that equals or exceeds $250,000, the Sponsor will
perform the following:
1 . Furnish a construction management program to FAA prior to the start of construction which shall
detail the measures and procedures to be used to comply with the quality control provisions of the
construction contract, including, but not limited to, all quality control provisions and tests required
by the Federal specifications. The program shall include as a minimum:
a. The name of the person representing the Sponsor who has overall responsibility for contrac)
administration for the project and the authority to take necessary actions to comply with the
contract.
b. Names of testing laboratories and consulting engineer firms with quality control responsibilities on
the project, together with a description of the services to be provided.
c. Procedures for determining that testing laboratories meet the requirements of the American
Society of Testing Materials standards on laboratory evaluation, referenced in the contract
specifications (D3666, C 1077).
1. Qualifications of engineering supervision and construction inspection personnel.
a. Inspection date;
b. Location;
c. Distress types; ani
d. Maintenance scheduled or performed.
For drive -by inspections, the date of inspection and any maintenance performed must be recorded.
4. Information Retrieval. An airport Sponsor may use any form of record keeping it deems
appropriateT SO long as the information and records produced by the pavement survey can be
retrieved to provide a report to the FAA as may be required.
5. Reference. Refer to Advisory Circular 150/5380-6, "Guidelines and Procedures for Maintenance of
Airport Pavements," for specific guidelines and procedures for maintaining airport pavements and
establishing an effective maintenance program. Specific types of distress, their probable causes,
inspection guidelines, and recommended methods of repair are presented.
Q. Takeover of Instrument Landing System and Associated Equipment in Project. If this grant includes
an instrument landing system and associated equipment and the FAA has agreed to takeover the system
R ff-Im.
and equipment, the Sponsor must check the facility prior to its commissioning to assure it meets the
operational standards. The Sponsor must also remove, relocate, or lower each obstruction on the
approach, or provide for the adequate lighting or marking of the obstruction if any aeronautical study
conducted under FAR part 77 determines that to be acceptable, and mark and light the runway, as
appropriate.
R. Airport -Owned Visual or Electronic NAVAIDS In Project. If this grant includes a visual or electronic
navigational aid, the Sponsor must provide for the continuous operation and maintenance of any
navigational aid funded under the AIP during the useful life of the equipment and check the facility prior to
its commissioning to assure it meets the operational standards. The Sponsor must also remove, relocate,
or lower each obstruction on the approach or provide for the adequate lighting or marking of the
obstruction if any aeronautical study conducted under FAR Part 77 determines that to be acceptable, and
mark and light the runway, as appropriate. The FAA will not take over the ownership, operation, or
maintenance of any sponsor -acquired equipment other than an AIP-funded instrument landing system
and associated equipment where FAA agrees to take over the system and equipment.
S. Non-AIP Work in Application. It is understood and agreed by and between the parties hereto that
notwithstanding the fact that a Project Application may include therein the construction of work not
included in this grant agreement project description, said work shall not be a part of this project and, if or
to the extent accomplished by the Sponsor, such accomplishment shall be without any participation in the
costs thereof by the United States under this project. It is further understood and agreed that, in the
event the work which is excluded from the project is accomplished by the Sponsor, the Sponsor shall
maintain as a portion of the cost records covering this project, separable cost records pertaining to the
above -identified work excluded from Federal participation under this project, which records shall be made
available for inspection and audit by the FAA to the end that the cost of the excluded work may be
definitely determined.
It is further understood and agreed that the Sponsor will submit a Program Statementtcost estimate
depicting the excluded costs or a cost estimate depicting only those costs eligible for Federal participation
in this project.
T. Utility Relocation in Project. It is understood and agreed by and between the parties hereto that the
United States shall not participate in the cost of any utility relocation unless and until the Sponsor has
submitted evidence satisfactory to the FAA that the Sponsor is legally responsible for payment of such
costs. FAA participation will be limited to those utilities located on private right-of-way or utilities that
exclusively serve the Airport.
U. Revenue from Real Property — Land in Project. The Sponsor agrees that all net revenues produced
from real property purchased in part with Federal funds in this grant shall be used on the airport for airport
planning, development or operating expenses, except that all income from real property purchased for
noise compatibility purposes or for future aeronautical use be used only to fund projects which would be
eligible for grants under the Act. Income from noise or future use property may not be used for the
Sponsor's matching share of any airport grant. Airport fiscal and accounting records shall clearly identify
actual • and uses of these funds.
V. Future Development Land. If this grant includes acquisition of land for future development, the Sponsor
agrees to implement within five years of such grant the airport development that requires this land
acquisition, unless the FAA agrees to a different duration. Furthermore, the Sponsor agrees not to
dispose of the land by sale or lease without prior consent and approval of the FAA. In the event the land
is not used within ten years for the purpose for which it was acquired, the Sponsor will refund the Federal
share of acquisition cost or the current fair market value of the land, whichever is greater, unless the FAA
agrees to a different duration.
a property interest, satisfactory to the FAA, in the Runway Protection Zones:
1. Existing Fee Title Interest in the Runway Protection Zone: The Sponsor agrees to prevent the
erection or creation of any structure or place of public assembly in the Runway Protection Zone,
except for NAVAIDS that are fixed by their functional purposes or any other structure approved by the
FAA. Any existing structures or uses within the Runway Protection Zone will be cleared or
discontinued unless approved by the FAA.
2. Existing Easement Interest in the Runway Protection Zone: The Sponsor agrees to take any and all
steps necessary to ensure that the owner of the land within the designated Runway Protection Zone
will not build any structure in the Runway Protection Zone that is a hazard to air navigation or which
might create glare or misleading lights or lead to the construction of residences, fuel handling and
storage facilities, smoke generating activities, or places of public assembly, such as churches,
schools, office buildings, shopping centers, and .•
3. Future Interest in the Runway Protection Zone: The Sponsor agrees that it will acquire fee title or
less -than -fee interest in the Runway Protection • that presently are not under its control under
an agreed schedule with the FAA. Said interest shall provide the protection noted in above
Subparagraphs 1 and 2.
III I II I I 1 11 MI
EMME=1
agreement for work accomplished on privately owned land until the Sponsor submits the agreement with
the owner of the property required by Assurance 5d of the ASSURANCES Airport Sponsors, and such
agreement is determined to be satisfactory. As a minimum, the agreement with the private owner must
contain the following provisions:
IV. ASSURANCES
of these Terms and Conditions:
Ux=
1 . These assurances shall be complied with in the performance of grant agreements for airport
development, airport planning, and noise compatibility program grants for airport sponsors.
E. These assurances are required to be submitted as part of the project application by sponsors requesting
funds under the provisions of Title 49, U.S.C., subtitle V11, as amended. As used herein, the term "public
agency sponsor" means a public agency with control of a public -use airport; the term "private sponsor"
means a private owner of a public -use airport; and the term "Sponsor" includes both public agency
sponsors and private sponsors.
3. Upon acceptance of this grant offer by the Sponsor, these assurances are incorporated in and become
part of this grant agreement.
Pl��, �,�
3. Airport Planning Undertaken by a Sponsor. Unless otherwise specified in this grant agreement, only
Assurances 1, 2, 3, 5, 6, 13, 18, 30, 32, 33, and 34 in section C apply to planning projects. The terms,
conditions, and assurances of this grant agreement shall remain in full force and effect during the life of
the project.
0. Sponsor Certification. The Sponsor hereby assures and certifies, with respect to this grant that:
1. General Federal Requirements. It will comply with all applicable Federal laws, regulations, executive
orders, policies, guidelines, and requirements as they relate to the application, acceptance and use of
Federal funds for this project including but not limited to the following:
Federal Legislation
a. Title 49, U.S.C., subtitle VII, as amended.
b. Davis -Bacon Act - 40 U.S.C. 276(a), et seg.'
c. Federal Fair Labor Standards Act - 29 U.S.C. 201, et-seq.
d. Hatch Act— 5 U.S.C. 1501, et sec-L2
e. Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 Title 42 U.S.C.
4601, etseq. 1 2
f. National Historic Preservation Act of 1966 - Section 106 - 16 U.S.C. 470(q.1
g. Archeological and Historic Preservation Act of 1974 - 16 U.S.C. 469 through 469c.,
h. Native Americans Grave Repatriation Act - 25 U.S.C. Section 3001, et se-Q.
i. Clean Air Act, P.L. 90-148, as amended.
j. Coastal Zone Management Act, P.L. 93-205, as amended.
k. Flood Disaster Protection Act of 1973 - Section 102(a) - 42 U.S.C. 4012a.1
I. Title 49, U.S.C., Section 303, (formerly known as Section 4(0)
m. Rehabilitation Act of 1973 - 29 U.S.C. 794.
n. Civil Rights Act of 1964 - Title VI - 42 U.S.C. 2000d through d-4.
o. Age Discrimination Act of 1975 - 42 U.S.C. 6101, et-seg.
p. American Indian Religious Freedom Act, P.L. 95-341, as amended.
q. Architectural Barriers Act of 1968 42 U.S.C. 4151, et secL.'
r. Power plant and Industrial Fuel Use Act of 1978 - Section 403- 2 U.S.C. 8373.1
s. Contract Work Hours and Safety Standards Act - 40 U.S.C. 327, et_seg.1
t. Copeland Anti kickback Act - 18 U.S.C. 874.1
u. National Environmental Policy Act of 1969 - 42 U.S.C. 4321, et secL.'
v. Wild and Scenic Rivers Act, P.L. 90-542, as amended.
w. Single Audit Act of 1984 - 31 U.S.C. 7501, et seg .2
x. Drug -Free Workplace Act of 1988 - 41 U.S.C. 702 through 706.
Executive Orders
S*svA�va #AA#�tvxLV1
Executive Order 11990 - Protection of Wetlands
Executive Order 11998 — Flood Plain Management
Executive Order 12372 - Intergovernmental Review of Federal Programs
Executive Order 12699 - Seismic Safety of Federal and Federally Assisted New Building Constructi
Executive Order 12898 - Environmental Justice I
Federal Regulations
a. 14 CFR Part 13 - Investigative and Enforcement Procedures.
b. 14 CFR Part 16 - Rules of Practice For Federally Assisted Airport Enforcement Proceedings
c. 14 CFR Part 150 - Airport noise compatibility planning.
d. 29 CFR Part 1 - Procedures for predetermination of wage rates.'
e. 29 CFR Part 3 - Contractors and subcontractors on public building or public work financed in whole or
part by loans or grants from the United States.'
f. 29 CFR Part 5 - Labor standards provisions applicable to contracts covering federally financed and
assisted construction (also labor standards provisions applicable to non -construction contracts
subject to the Contract Work Hours and Safety Standards Act).'
g. 41 CFR Part 60 - Office of Federal Contract Compliance Programs, Equal Employment Opportunity,
Department of Labor (Federal and federally assisted contracting requirements).
h. 49 CFR Part 18 - Uniform administrative requirements for grants and cooperative agreements to state
3
and local governments .
L 49 CFR Part 20 - New restrictions on lobbying.
j. 49 CFR Part 21 - Nondiscrimination in federally -assisted programs of the Department of
Transportation - effectuation of Title V1 of the Civil Rights Act of 1964.
k. 49 CFR Part 23 - Participation by Disadvantage Business Enterprise in Airport Concessions.
1. 49 CFR Part 24 - Uniform relocation assistance and real property acquisition for Federal and federally
assisted programs. 1 2
m. 49 CFR Part 26 — Participation By Disadvantaged Business Enterprises in Department of
Transportation Programs.
n. 49 CFR Part 27 - Nondiscrimination on the basis of handicap in programs and activities receiving or
benefiting from Federal financial assistance.'
o. 49 CFR Part 29 — Government wide debarment and suspension (nonprocurement) and government
wide requirements for drug -free workplace (grants).
p. 49 CFR Part 30 - Denial of public works contracts to suppliers of goods and services of countries that
deny procurement market access to U.S. contractors.
q. 49 CFR Part 41 - Seismic safety of Federal and federally assisted or regulated new building
coi,structioir.1
Office of Management and Budget Circulars
a. A-87 - Cost Principles Applicable to Grants and Contracts with State and Local Governments.
b. A-1 33 - Audits of States, Local Governments, and Non -Profit Organizations
' These laws do not apply to airport planning sponsors.
2 These laws do not apply to private sponsors.
3 49 CFR Part 18 and OMB Circular A-87 contain requirements for State and Local Governments receiving
Federal assistance. Any requirement levied upon State and Local Governments by this regulation and circular
shall also be applicable to private sponsors receiving Federal assistance under Title 49, United States Code.
Specific assurances required to be included in grant agreements by any of the above laws, regulations or
circulars are incorporated by reference in this grant agreement.
2. Responsibility and Authority of the Sponsor.
a. Public Agency Sponsor: It has legal authority to apply for this grant, and to finance and carry out
the proposed project; that a resolution, motion or similar action has been duly adopted or passed as
an official act of the applicant's governing body authorizing the filing of the application, including all
understandings and assurances contained therein, and directing and authorizing the person identified
as the official representative of the applicant to act in connection with the application and to provide
such additional information as may be required.
b. Private Sponsor: It has legal authority to apply for this grant and to finance and carry out the
proposed project and comply with all terms, conditions, and assurances of this grant agreement. It
shall designate an official representative and shall in writing direct and authorize that person to file
this application, including all understandings and assurances contained therein; to act in connection
with this application; and to provide such additional information as may be required.
3. Sponsor Fund Availability. It has sufficient funds available for that portion of the project costs which are
not to be paid by the United States. It has sufficient funds available to assure operation and maintenance
of items funded under this grant agreement which it will own or control.
4. Good Title.
public agency or the Federal government, holds good title, satisfactory to the
Secretary, to the landing area of the airport or site thereof, or will give assurance
satisfactory to the Secretary that good title will be acquired.
b. For noise compatibility program projects to be carried out on the property of the Sponsor,
it holds good title satisfactory to the Secretary to that portion of the property upon which
11 of 18
:17M "qr
te obtained.
5. Preserving Rights and Powers.
i. For noise compatibility program projects to be carried out on privately owned property, it will enter into
an agreement with the owner of that property which includes provisions specified by the Secretary. 1)
will take steps to enforce this agreement against the property owner whenever there is substantial
non-compliance with the terms of the agreement.
a. If the Sponsor is a private sponsor, it will take steps satisfactory to the Secretary to ensure that th-.
airport will continue to function as a public -use airport in accordance with these assurances for thc
_durakmi of ttese assurances.
f. If an arrangement is made for management and operation of the airport by any agency or person
other than the Sponsor or an employee of the Sponsor, the Sponsor will reserve sufficient rights and
authority to insure that the airport will be operated and maintained in accordance Title 49, United
States Code, the regulations and the terms, conditions and assurances in this grant agreement and
shall insure that such arrangement also requires compliance therewith.
g. Sponsors of commercial service airports will not permit or enter into any arrangement that results in
permission for the owner or tenant of a property used as a residence, or zoned for residential use, to
taxi an aircraft between that property and any location on airport. Sponsors of general aviation
airports entering into any arrangement that results in permission for the owner of residential real
property adjacent to or near the airport must comply with the requirements of Sec. 136 of Public Law
112-95 and the sponsor assurances.
i. Consistency with Local Plans. The project is reasonably consistent with plans (existing at the time of
submission of this application) of public agencies that are authorized by the State in which the project is
located to plan for the development of the area surrounding the airport.
7. Consideration of Local Interest. It has given fair consideration to the interest of communities in or near
where the project may be located.
8. Consultation with Users. In making a decision to undertake any airport development project under Title
49, United States Code, it has undertaken reasonable consultations with affected parties using the airport
at which project is proposed.
9. Public Hearings. In projects involving the location of an airport, an airport runway, or a major runway
extension, it has afforded the opportunity for public hearings for the purpose of considering the economic,
social, and environmental effects of the airport or runway location and its consistency with goals and
objectives of such planning as has been carried out by the community and it shall, when requested by the
Secretary, submit a copy of the transcript of such hearings to the Secretary. Further, for such projects, it
has on its management board either voting representation from the communities where the project is
located or has advised the communities that they have the right to petition the Secretary concerning a
proposed project.
10. Air and Water Quality Standards. In projects involving airport location, a major runway extension, or
runway location it will provide for the Governor of the state in which the project is located to certify in
writing to the Secretary that the project will be located, designed, constructed, and operated so as to
comply with applicable air and water quality standards. In any case where such standards have not been
approved and where applicable air and water quality standards have been promulgated by the
Administrator of the Environmental Protection Agency, certification shall be obtained from such
Administrator. Notice of certification or refusal to certify shall be provided within sixty days after the project
application has been received by the Secretary.
11 . Pavement Preventive Maintenance. With respect to a project approved after January 1, 1995, for the
replacement or reconstruction of pavement at the airport, it assures or certifies that it has implemented an
effective airport pavement maintenance -management program and it assures that it will use such
OWSTAF.
program for the useful life of any pavement constructed, reconstructed or repaired with Federal financial
assistance at the airport. It will provide such reports on pavement condition and pavement managemen)
programs as the Secretary determines may be useful.
12. Terminal Development Prerequisites. For projects which include terminal development at a public usd
airport, as defined in Title 49, it has, on the date of submittal of the project grant application, all the safety
equipment required for certification of such airport under section 44706 of Title 49, United States Code,
and all the security equipment required by rule or regulation, and has provided for access to the
passenger enplaning and deplaning area of such airport to passengers enplaning and deplaning from
aircrat otter than air carrier aircraft.
13. Accounting System, Audit, and Record Keeping Requirements
a. It shall keep all project accounts and records which fully disclose the amount and disposition by the
recipient of the proceeds of this grant, the total cost of the project in connection with which this grant
is given or used, and the amount or nature of that portion of the cost of the project supplied by other
sources, and such other financial records pertinent to the project. The accounts and records shall be
kept in accordance with an accounting system that will facilitate an effective audit in accordance with
the Single Audit Act of 1984.
b. It shall make available to the Secretary and the Comptroller General of the United States, or any of
their duly authorized representatives, for the purpose of audit and examination, any books,
documents, papers, and records of the recipient that are pertinent to this grant. The Secretary may
require that an appropriate audit be conducted by a recipient. In any case in which an independent
audit is made of the accounts of a sponsor relating to the disposition of the proceeds of a grant or
relating to the project in connection with which this grant was given or used, it shall file a certified
copy of such audit with the Comptroller General of the United States not later than six (6) months
following the close of the fiscal year for which the audit was made.
14. Minimum Wage Rates. It shall include, in all contracts in excess of $2,000 for work on any projects
funded under this grant agreement which involve labor, provisions establishing minimum rates of wages,
to be predetermined by the Secretary of Labor, in accordance with the Davis -Bacon Act, as amended (40
U.S.C. 276a-276a-5), which contractors shall pay to skilled and unskilled labor, and such minimum rates
shall be stated in the invitation for bids and shall be included in proposals or bids for the work.
15. Veteran's Preference. It shall include in all contracts for work on any project funded under this grant
agreement which involve labor, such provisions as are necessary to insure that, in the employment of
labor (except in executive, administrative, and supervisory positions), preference shall be given to
Vietnam era veterans, Persian Gulf veterans, Afghanistan -Iraq war veterans, disabled veterans, and
small business concerns owned and controlled by disabled veterans as defined in Section 47112 of Title
49, United States Code. However, this preference shall apply only where the individuals are available and
qualified to perform the work to which the employment relates.
schedules approved by the Secretary. Such plans, specifications, and schedules shall be submitted to the
Secretary prior to commencement of site preparation, construction, or other performance under this grant
agreement, and, upon approval of the Secretary, shall be incorporated into this grant agreement. Any
modification to the approved plans, specifications, and schedules shall also be subject to approval of the
Secretary, and incorporated into this grant agreement.
17. _Ptf,%tJPr,*_w_izaLwnervision at
the construction site throughout the project to assure that the work conforms to the plans, specifications,
and schedules approved by the Secretary for the project. It shall subject the construction work on any
project contained in an approved project application to inspection and approval by the Secretary and such
work shall be in accordance with regulations and procedures prescribed by the Secretary. Such
regulations and procedures shall require such cost and progress reporting by the sponsor or sponsors of
such project as the Secretary shall deem necessary.
18. Planning Projects. In carrying out planning projects:
a. It will execute the project in accordance with the approved program narrative contained in the project
application or with the modifications similarly approved.
b. It will furnish the Secretary with such periodic reports as required pertaining to the planning project
and planning work activities.
c. It will include in all published material prepared in connection with the planning project a notice that
the material was prepared under a grant provided by the United States.
d. It will make such material available for examination by the public, and agrees that no material
prepared with funds under this project shall be subject to copyright in the United States or any other
country.
e. It will give the Secretary unrestricted authority to publish, disclose, distribute, and otherwise use any
of the material prepared in connection with this grant.
f. It will grant the Secretary the right to disapprove the Sponsor's employment of specific consultants
and their subcontractors to do all or any part of this project as well as the right to disapprove the
proposed scope and cost of professional services.
g. It will grant the Secretary the right to disapprove the use of the Sponsors employees to do all or any
part of the project.
In. It understands and agrees that the Secretary's approval of this project grant or the Secretary's
approval of any planning material developed as part of this grant does not constitute or imply any
for a Federal airport grant.
a. The airport and all facilities which are necessary to serve the aeronautical users of the airport, other
than facilities owned or controlled by the United States, shall be operated at all times in a safe and
serviceable condition and in accordance with the minimum standards as may be required or
prescribed by applicable Federal, state and local agencies for maintenance and operation. It will not
cause or permit any activity or action thereon which would interfere with its use for airport purposes. It
will suitably operate and maintain the airport and all facilities thereon or connected therewith, with due
regard to climatic and flood conditions, Any proposal to temporarily close the airport for non -
aeronautical purposes must first be approved by the Secretary. In furtherance of this assurance, the
Sponsor will have in effect arrangements for-
1 ) Operating the airporCs aeronautical facilities whenever required;
2) Promptly marking and lighting hazards resulting from airport conditions, including temporary
conditions; and
3) Promptly notifying airmen of any condition affecting aeronautical use of the airport.
Nothing contained herein shall be construed to require that the airport be operated for
aeronautical use during temporary periods when snow, flood or other climatic conditions interfere with
such operation and maintenance. Further, nothing herein shall be construed as requiring the
maintenance, repair, restoration, or replacement of any structure or facility which is substantially
damaged or destroyed due to an act of God or other condition or circumstance beyond the control of
the Sponsor.
b. It will suitably operate and maintain noise compatibility program items that it owns or controls
upon which Federal funds have been expended.
is required to protect instrument and visual ope�r�tions to the airport (including established minimum flight
altitudes) will be adequately cleared and protected by removing, lowering, relocating, marking, or lighting
or otherwise mitigating existing airport hazards and by preventing the establishment or creation of future
airport hazards.
%&_Q;wvatible Land Use. It will take appLgo _,riate action, to the extent reasonable, including the adoption of
zoning laws, to restrict the use of land adjacent to or in the immediate vicinity of the airport to activities
and purposes compatible with normal airport operations, including landing and takeoff of aircraft. In
addition, if the project is for noise compatibility program implementation, it will not cause or permit any
change in land use, within its jurisdiction, that will reduce its compatibility, with respect to the airport, of
the noise compatibility program measures upon which Federal funds have been expended.
22. Economic Nondiscrimination.
a. It will make the airport available as an airport for public use on reasonable terms and without unjust
discrimination to all types, kinds and classes of aeronautical activities, including commercial
aeronautical activities offering services to the public at the airport.
b. In any agreement, contract, lease, or other arrangement under which a right or privilege at the airport
is granted to any person, firm, or corporation to conduct or to engage in any aeronautical activity for
furnishing services to the public at the airport, the Sponsor will insert and enforce provisions requiring
the contractor to-
1 ) furnish said services on a reasonable, and not unjustly discriminatory, basis to all users thereof,
and
2) charge reasonable, and not unjustly discriminatory, prices for each unit or service, provided that
the contractor may be allowed to make reasonable and nondiscriminatory discounts, rebates, or
other similar types of price reductions to volume purchasers.
c. Each fixed -based operator at the airport shall be subject to the same rates, fees, rentals, and other
charges as are uniformly applicable to all other fixed -based operators making the same or similar
uses of such airport and utilizing the same or similar facilities.
d. Each air carrier using such airport shall have the right to service itself or to use any fixed -based
operator that is authorized or permitted by the airport to serve any air carrier at such airport.
e. Each air carrier using such airport (whether as a tenant, non tenant, or subtenant of another air
carrier tenant) shall be subject to such nondiscriminatory and substantially comparable rules,
regulations, conditions, rates, fees, rentals, and other charges with respect to facties directly and
substantially related to providing air transportation as are applicable to all such air carriers which
make similar use of such airport and utilize similar facilities, subject to reasonable classifications such
as tenants or non tenants and signatory carriers and non signatory carriers. Classification or status as
tenant or signatory shall not be unreasonably withheld by any airport provided an air carrier assumes
obligations substantially similar to those already imposed on air carriers in such classification or
status.
f. It will not exercise or grant any right or privilege which operates to prevent any person, firm, or
corporation operating aircraft on the airport from performing any services on its own aircraft with its
own employees [including, but not limited to maintenance, repair, and fueling] that it may choose to
perform.
g. In the event the Sponsor itself exercises any of the rights and privileges referred to in this assurance,
the services involved will be provided on the same conditions as would apply to the furnishing of such
14 of 18
services by commercial aeronautical service providers authorized by the Sponsor under these
provisions.
h. The Sponsor may establish such reasonable, and not unjustly discriminatory, conditions to be met by
all users of the airport as may be necessary for the safe and efficient operation of the airport.
i. The Sponsor may prohibit or limit any given type, kind or class of aeronautical use of the airport if
such action is necessary for the safe operation of the airport or necessary to serve the civil aviation
needs of the public.
%KWAaWt1&Yve Ri�v hts. It will �ermit no exclusive ri,-!Iht for the use of the air1gLLtLY) or
intending to provide, aeronautical services to the public. For purposes of this paragraph, the providing of
the services at an airport by a single fixed -based operator shall not be construed as an exclusive right if
both of the following apply:
a. It would be unreasonably costly, burdensome, or impractical for more than one fixed -based operator
to provide such services, and
b. If allowing more than one fixed -based operator to provide such services would require the reduction
of space leased pursuant to an existing agreement between such single fixed -based operator and
such airport. It further agrees that it will not, either directly or indirectly, grant or permit any person,
firm, or corporation, the exclusive right at the airport to conduct any aeronautical activities, including,
but not limited to charter flights, pilot training, aircraft rental and sightseeing, aerial photography, crop
dusting, aerial advertising and surveying, air carrier operations, aircraft sales and services, sale of
aviation petroleum products whether or not conducted in conjunction with other aeronautical activity,
repair and maintenance of aircraft, sale of aircraft parts, and any other activities which because of
their direct relationship to the operation of aircraft can be regarded as an aeronautical activity, and
that it will terminate any exclusive right to conduct an aeronautical activity now existing at such an
airport before the grant of any assistance under Title 49, United States Code.
Fee and Rental Structure. It will maintain a fee and rental structure for the facilities and services at the
airport which will make the airport as self-sustaining as possible under the circumstances existing at the
particular airport, taking into account such factors as the volume of traffic and economy of collection. No
part of the Federal share of an airport development, airport planning or noise compatibility project for
which a grant is made under Title 49, United States Code, the Airport and Airway Improvement Act of
1982, the Federal Airport Act or the Airport and Airway Development Act of 1970 shall be included in the
rate basis in establishing fees, rates, and charges for users of that airport.
IT, "A.MMITT-01
a. All revenues generated by the airport and any local taxes on aviation fuel established after December
30, 1987, will be expended by it for the capital or operating costs of the airport; the local airport
system; or other local facilities which are owned or operated by the owner or operator of the airport
and which are directly and substantially related to the actual air transportation of passengers or
property; or for noise mitigation purposes on or off the airport. The following exceptions apply to this
paragraph:
1 . If covenants or assurances in debt obligations issued before September 3, 1982, by the owner or
operator of the airport, or provisions enacted before September 3, 1982, in governing statutes
controlling the owner or operator's financing, provide for the use of the revenues from any of the
airport owner or operator's facilities, including the airport, to support not only the airport but also
the airport owner or operator's general debt obligations or other facilities, then this limitation on
the use of all revenues generated by the airport (and, in the case of a public airport, local taxes
on aviation fuel) shall not apply.
2. If the Secretary approves the sale of a privately owned airport to a public sponsor and provides
funding for any portion of the public sponsor's acquisition of land, this limitation on the use of all
revenues generated by the sale shall not apply to certain proceeds from the sale. This is
conditioned on repayment to the Secretary by the private owner of an amount equal to the
remaining unamortized portion (amortized over a 20-year period) of any airport improvement
grant made to the private owner for any purpose other than land acquisition on or after October 1,
1996, plus an amount equal to the federal share of the current fair market value of any land
acquired with an airport improvement grant made to that airport on or after October 1, 1996.
3. Certain revenue derived from or generated by mineral extraction, production, lease, or other
means at a general aviation airport (as defined at Section 47102 of title 49 United States Code), if
the FAA determines the airport sponsor meets the requirements set forth in Sec. 813 of Public
Law 112-95.
b. As part of the annual audit required under the Single Audit is of 1984, the Sponsor will direct that
the audit will review, and the resulting audit report will provide an opinion concerning, the use of
airport revenue and taxes in paragraph (a), and indicating whether funds paid or transferred to the
owner or operator are paid or transferred in a manner consistent with Title 49, United States Code
and any other applicable provision of law, including any regulation promulgated by the Secretary or
Administrator.
c. Any civil penalties or other sanctions will be imposed for violation of this assurance in accordance
with the provisions of Section 47107 of Title 49, United States Code.
26. Reports and Inspections. It will:
a. submit to the Secretary such annual or special financial and operations reports as the Secretary may
reasonably request and make such reports available to the public; make available to the public al
reasonable times and places a report of the airport budget in a format prescribed by the Secretary;
15 of 18
b. for airport development projects, make the airport and all airport records and documents affecting the
airport, including deeds, leases, operation and use agreements, regulations and other instruments,
available for inspection by any duly authorized agent of the Secretary upon reasonable request;
c. for noise compatibility program projects, make records and documents relating to the project and
continued compliance with the terms, conditions, and assurances of this grant agreement including
deeds, leases, agreements, regulations, and other instruments, available for inspection by any duly
authorized agent of the Secretary upon reasonable request; and
d. in a format and time prescribed by the Secretary, provide to the Secretary and make available to the
public following each of its fiscal years, an annual report listing in detail:
1) all amounts paid by the airport to any other unit of government and the purposes for which each
such payment was made; and
2) all services and property provided by the airport to other units of government and the amount of
compensation received for provision of each such service and property.
b. The total number of movements (counting each landing as a movement) of Government aircraft i
300 or more, or the gross accumulative weight of Government aircraft using the airport (the tot"
movement of Government aircraft multiplied by gross weights of such aircraft) is in excess of fiv
million pounds.
28. Land for Federal Facilities. It will furnish without cost to the Federal Government for use in connectio
with any air traffic control or air navigation activities, or weather -reporting and communication activitie
related to air traffic control, any areas of land or water, or estate therein, or rights in buildings of th
Sponsor as the Secretary considers necessary or desirable for construction, operation, and maintenanc
at Federal expense of space or facilities for such purposes. Such areas or any portion thereof will b
made available as provided herein within four months after receipt of a written request from the Secretar)
29. Airport Layout Plan.
a. It will keep up to date at all times an airport layout plan of the airport showing (1) boundaries of th
airport and all proposed additions thereto, together with the boundaries of all offsite areas owned c
controlled by the Sponsor for airport purposes and proposed additions thereto; (2) the location an
nature of all existing and proposed airport facilities and structures (such as runways, taxiway!
aprons, terminal buildings, hangars and roads), including all proposed extensions and reductions (
existing airport faces; (3) the location of all existing and proposed non -aviation areas and of E
existing improvements thereon; and (4) all proposed and existing access points used to taxi aircra
across the airport's property boundary. Such airport layout plans and each amendment, reon, (
modification thereof, shall be subject to the approval of the Secretary which approval shall t
evidenced by the signature of a duly authorized representative of the Secretary on the face of tir
airport layout plan. The Sponsor will not make or permit any changes or alterations in the airport (
any of its facilities which are not in conformity with the airport layout plan as approved by tl
Secretary and which might, in the opinion of the Secretary, adversely affect the safety, utility i
efficiency of the airport.
b. If a change or alteration in the airport or the facilities is made which the Secretary determin(
adversely affects the safety, utility, or efficiency of any federally owned, leased, or funded property C
or off the airport and which is not in conformity with the airport layout plan as approved by tf
Secretary, the owner or operator will, if requested, by the Secretary (1) eliminate such adverse effe
in a manner approved by the Secretary; or (2) bear all costs of relocating such property
replacement thereo� to a site acceptable to the Secretary and all costs of restoring such property
replacement thereo� to the level of safety, utility, efficiency, and cost of operation existing before tf
unapproved change in the airport or its facilities, except in the case of a relocation or replacement
an existing airport facility due to a change in the Secretary's design standards beyond the control
the airport sponsor.
41C _ivil Rlisjhts. It will com 1111 with such rules as are promulgated to assure that no person shall, on 1:1
grounds of race, creed, color, national origin, sex, age, or handicap be excluded from participating in ai
activity conducted with or benefiting from funds received from this grant. This assurance obligates t
Sponsor for the period during which Federal financial assistance is extended to the program, exc
where Federal financial assistance is to provide, or is in the form of personal property or real property
interest therein or structures or improvements thereon in which case the assurance obligates the Spon's
or any transferee for the longer of the following periods: (a) the period during which the property is us
for a purpose for which Federal financial assistance is extended, or for another purpose involving t
provision of similar services or benefits, or (b) the period during which the Sponsor retains ownership
possession of the property.
31. Disposal of Land.
a. For land purchased under a grant for airport noise compatibility purposes, it will dispose of the la
when the land is no longer needed for such purposes, at fair market value, at the earliest practice
17uf18
C8. Hangar Construction. If the airport owner or operator and a person who owns an aircraft agree that a
hangar is to be constructed at the airport for the aircraft at the aircraft owner's expense, the airport owner
or operator will grant to the aircraft owner for the hangar a long term lease that is subject to such terms
and conditions on the hangar as the airport owner or operator may impose.
39. Competitive Access.
a. If the airport owner or operator of a medium or large hub airport (as defined in section 47102 of title
49, U.S.C.) has been unable to accommodate one or more requests by an air carrier for access to
gates or other facilities at that airport in order to allow the air carrier to provide service to the airport or
to expand service at the airport, the airport owner or operator shall transmit a report to the Secretary
that-
1. Describes the requests;
2. Provides an explanation as to why the requests could not be accommodated; and
3. Provides a time frame within which, if any, the airport will be able to accommodate the requests.
b. Such report shall be due on either February 1 or August I of each year if the airport has been unable
to accommodate the request(s) in the six month period prior to the applicable due date.
Airport Improvement Program
Orlando Airports District Office
Federal Assistance Request Checklist
APPLICATION CHECKLIST
Airport:
FLORIDA KEYS MARATHON AIRPORT
Sponsor:
MONROE COUNTY, FLORIDA
City, State
MARATHON, FLORIDA
Date of Application:
JUNE 29, 2012
Cover Letter:
X Letter of Credit method of payment requested.
X Project(s) identified. (Any changes from previous meetings/discussions should be discussed
prior to submission.)
If pre -application, proposed application date identified.
If application, any changes to requested amount are identified and reasons provided..
If application, identify if any changes have taken place on Exhibit "A" Property Map since last
grant..
If application, identify if any changes have taken place on Exhibit "C" Title Opinion since last
grant
Application (Revise Pre -Application Documentation):
X Standard Form 424—Application for Federal Assistance.
X Detailed Project Information Sheet.
X Individual Project Cost Breakdowns and Total Cost Summary.
Bid Tabulations and Recommendation for Award.
X Project Sketch — One for each or one drawing will all projects.
X Environmental Determination Documentation for each project.
X Individual Project Schedules.
X Appraisals (Land Acquisition Projects).
Independent Cost Estimates (Design Only or Construction Phase Services >$100K).
APPLICATION FOR
FEDERAL ASSISTANCE
2. DATE SUBMITTED
6/29/2012
Applicant Identifier
1. TYPE OF SUBMISSION
Application
❑ Construction
® Non -Construction
Pre -application
❑ Construction
❑ Non -Construction
3. DATE RECEIVED BY STATE
State Application Identifier
4. DATE RECEIVED BY FEDERAL AGENCY I
Federal Identifier
5. APPLICANT INFORMATION
Legal Name:
Monroe County, Florida
Organizational Unit:
Department: Board of County Commissioners
Organizational DUNS: 15-563-9339
Division:
Address:
Name and telephone number of the person to be contacted on matters
involving this application (give area code):
Street: 3491 South Roosevelt Boulevard
Prefix: Mr. First Name: Peter
City: Key West
Middle Name: J.
County: Monroe
Last Name: Horton
I
State: Florida zip code: 33040-
Suffix:
country: USA
Email: Norton eter monroecoun# -fl. ov
6. EMPLOYER IDENTIFICATION NUMBER (EIN):
5 19— 16 10 10 10 17 1 4 19
Phone Number (give area code):
305-809-5200
Fax Number (give area code):
305-292-3578
8. TYPE OF APPLICATION:
❑New ❑Continuation ®Revision
If Revision, enter appropriate letters) in box(es)
(See Instructions for description of letters.)
Other (specify)
7. TYPE OF APPLICANT: (See instructions for Application Types)
B
Other (specify)
9. NAME OF FEDERAL AGENCY: Federal Aviation Administration
10. CATALOG OF FEDERAL DOMESTIC ASSISTANCE NUMBER:
2 10 a 1 0 6
TITLE Name of Program): Airport Improvement Program
11. DESCRIPTIVE TITLE OF APPLICANT'S PROJECT:
See Attachment "A" for descriptive titels
12. AREAS AFFECTED BY PROJECT (Cities, Counties, State, etc.):
Marathon, Monroe County, Florida
13. PROPOSED PROJECT
14. CONGRESSINAL DISTRICTS OF:
Start Date: 6/29/2012 Ending Date: 5/30/2013
a. Applicant 18th I b. Project 18th
15. ESTIMATED FUNDING:
16. IS APPLICATION SUBJECT TO REVIEW BY STATE EXECUTIVE
ORDER 12372 PROCESS?
a. Federal
a. Yes.❑ THIS PREAPPLICATION WAS MADE AVAILABLE TO THE
STATE EXECUTIVE ORDER 12372 PROCESS FOR REVIEW
ON DATE:
b. No. ❑ PROGRAM IS NOT COVERED BY E.O. 12372
® OR PROGRAM HAS NOT BEEN SELECTED BY STATE FOR
REVIEW
b. Applicant $150,000
c. State
d. Local
e❑ Other $16,667
f. Program income
17. IS THE APPLICANT DELINQUENT ON ANY FEDERAL DEBT?
❑ Yes If "Yes", attach an explanation. ❑ No
g. TOTAL $166,667
18. TO THE BEST OF MY KNOWLEDGE AND BELIEF, ALL DATA IN THIS APPLICATIONlPREAPPLICATION ARE TRUE AND CORRECT.
THE GOVERNING BODY OF THE APPLICANT HAS DULY AUTHORIZED THE DOCUMENT, AND THE APPLICANT WILL COMPLY WITH
THE ATTACHED ASSURANCES IF THE ASSISTANCE IS AWARDED.
a. Authorized Representative
Prefix: Mr. I First Name: Peter
Middle Name: J.
Last Name: Horton
Suffix:
b. Title: Airport Director
c. Telephone Number(give area code): 305-809-6200
d. Signature of Authorized Representative
e. Date Signed: ::1
Previous Editions Usable Standard For424 (REV 9-2003)
Authorized for Local Reproduction Prescribed by OMB CircularA-102
JUNE 29, 2012
FLORIDA KEYS MARATHON AIRPORT
ATTACHMENT "A"
PROJECT PRE -APPLICATION (3-12-0044-030-2012)
GRANT DESCRIPTION AND COST BREAKDOWN SHEET
I. Grant Description
A) Obstruction Removal RPZ/RW 25 — Lease buy out
11 hangars are located in the RPZ and need to be removed. First action is to buy out the leases to enable
the airport to remove existing hangars to clear the RPZ.
II. Cost Breakdown
B) Obstruction removal RPZ/RW 25 — Lease buy out
Administration
$ 1,200.00
Lease buy out
$ 164,567
Project Application
$ 900.00
Subtotal
$ 166,667
Total $ 166,667
Entitlement Grant Request $ 150,000
Discretionary Grant Request $ 0
Total Grant Amount (90%) $ 150,000
Others (10%) $ 16,667
5
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Airport:
City, State:
Project Title:
Project Description:
Project Justification:
Special Circumstances:
Project Cost Information:
Detailed Project Information Sheet
Airport Improvement Program
Grant Application
Florida Keys Marathon Airport
Marathon, Florida
Obstruction Removal RPZ/RW 25 — Lease buy out
11 hangars are located in the RPZ and need to be removed. First action
is to buy out the leases.
11 hangars are located in the RPZ and need to be removed to conform
to FAA Standards
Am
Total Cost (100%)
FAA Share (90%)
State (Insert %)
Local (10%)
$166,667
�$150,000
$Amnt
$16,667
Type of Funding Proposed (FAA Share Only)
Fund Type
Funds Available
Funds to be Used
Funds Remaining
P, NP, C, SA, D & FY
$ Amnt
$ Amnt
$ Amnt
(e.g., NP2012)
P, NP, C, SA, D & FY
$ Amnt
$ Amnt
$ Amnt
(e.g., NP2012)
P, NP, C, SA, D & FY
$ Amnt
$ Amnt
$ Amnt
(e.g., NP2012)
Total
$ Amnt
$ Amnt
$ Amnt
Alternate Funding Plan: Entitlement Funds requested, if not available this project will be delayed.
Florida Keys Marathon Airport
Obstruction Removal RPZ/RW 25 — Lease Buy Out
PROPOSED PROJECT SCHEDULE
Proposed Proiect Elements Dates
Completion of Plans Specifications & Engr. Report N/A
Submit Plans and Specs to FAA N/A
Advertisement of Project for Bids 12/01/12
Receipt of Bids 01/15/13
Submittal of Project Application to FAA 01/30/13
Execution of FAA Grant 03/30/13
Notice to Proceed to Purchase 05/30/13
Completion of Purchase 06/15/13
Final Inspection N.A.
Project Close Out 09/15/13
DETERMINATION OF ENVIRONMENTAL IMPACTS
Airport: Florida Keys Marathon Airport, Marathon, Florida
Detailed Project Description (attach project drawing and additional pages as necessaiy):
Obstruction Removal RPZ/RW 25 — Lease Buy Out. 11 hangars are located in RPZ and need to be removed.
Is the proposed project(s) listed
1050.1 E?
Please identify which paragraph(s):
as categorically excluded in one or more of paragraphs 307-312of FAA Order
In order for the FAA to determine the appropriate course of action, as a Categorical Exclusion, the sponsor must certifi-
that the proposed action does NOT (1) involve any of the following circumstances, and does NOT (2) have a significant
effect. A determination as to whether the proposed project (s) may have a significant environmental effect is made by
considering any requirements applicable to the specific resource (see FAA Order 1050.1 F Appendix A).
a. Have an adverse effect on cultural resources protected under the National Historic Preservation Act of 1966, as
amended.
b. Have an impact on properties protected under section 4(� of the Department of Transportation Act.
c. Have an impact on natural, ecological (e.g. invasive species), or scenic resources of Federal, Tribal, State, or local
significance (for example: Federally listed or proposed endangered, threatened, or candidate species or designated or
proposed critical habitat under the Endangered Species Act), resources protected by the Fish and Wildlife
Coordination Act; wetlands; floodplains prime, unique, State or locally important farmlands; energy supply and
natural resources; and wild and scenic rivers, including study or eligible river segments and solid waste management.
d. Cause a division or disruption of an established community, or a disruption of orderly, planned development or an
inconsistency with plans or goals that have been adopted by the community- in which the project is located.
e. Cause an increase in congestion from surface transportation (by causing a decrease in Level of Service below
acceptable level determined by appropriate transportation agency, such as a highway agency).
f. Have an impact on noise levels of noise -sensitive areas.
g. Have an impact on air quality or violate local, State, or Federal air quality- standards under the Clean Air Act
Amendments of 1990.
h. Have an impact on seater quality, sole source aquifers, a public seater supply system, or State or Tribal seater quality-
standards established under the Clean Water Act and the Safe Drinking Water Act.
i. Have effect(s) on the quality- of the human environment that are likely to be highly controversial on environmental
grounds. The term "controversial" means a substantial dispute exists as to the size, nature, or effect of a proposed
Federal action. The effects of an action are considered highly controversial when reasonable disagreement exists over
the project's risks of causing environmental harm. Opposition on environmental grounds by a Federal, state, or local
government agency or by a Tribe or by a substantial number of the persons affected by the action should be
considered in determining whether or not reasonable disagreement regarding the effects of a proposed action exists.
j. Likelihood to be inconsistent with any Federal, State, Tribal, or local lase relating to the environmental aspects of the
proposed action.
k. Likely to directly, indirectly, or cumulatively create a significant impact on the human environmental, including, but
not limited to, actions likely to cause a significant lighting impact on residential areas or commercial use of business
properties, likely to cause a significant impact on the visual nature of surrounding land uses likely to be contaminated
with hazardous materials based on Phase I or Phase II Environmental Due Diligence Audit (EDDA's), or likely to
cause such contamination
I certify that the project(s) described above meet(s) the test for a Categorical Exclusion in accordance with FAA Order
1050.1E and paragraphs a thru k above.
Signature of Authorized Airport Representative Date
FAA Determination (by program manager signature):
Categorically Excluded: Date:
Requires further environmental analysis: Date:
ENVIRONMENTAL DETERMINATION CHECKLIST (FY 22)
Airport: Florida Keys Marathon Airport, Marathon, Florida
Proposed Project(s): Obstruction Removal RPZ/RW 25 — Lease Buy Out. 11 hangars are located in RPZ and need
to be removed.
Prepared and certified by: Eric S. Nielsen, P.E. Date: June 29, 2012
YES
NO
COMMENTS
IS THIS PROPOSED PROJECT LISTED AS
CATEGORICALLY EXCLUDED IN FAA ORDER
1050.1E, paragraphs 307-312
X
THIS PROPOSED PROJECT WILL AFFECT:
Coastal Resources
X
Section 4(f) Land
X
Farmland
X
Endangered or Threatened Species (Federal or State
listed)
X
Floodplains
X
Hazardous Materials or Solid Waste Management
X
Historic/Architectural, Archaeological/Cultural
Resources
X
Light Emissions or Cause Visual Impacts
X
Natural Resources or Energy Supply
X
Low Income or Minority- Populations or Children
X
Wetlands
X
Wild and Scenic Rivers (study or eligible)
X
THIS PROPOSED PROJECT IS LIKELY TO:
Be highly controversial on environmental grounds
including opposition by Federal, state, local, or Tribal
or a substantial number of persons affected by the
action.
X
Be inconsistent with any Federal, State, or local law
relating to the environmental aspects of the proposed
action.
X
Cause community- disruption or inconsistency with
plans or goals that have been adopted by the
communitv
X
Cause an increase of 1.5 DNL over noise sensitive
areas
X
Displace persons or businesses
X
Disrupt local traffic patterns and substantially reduce
levels of service (LOS) of roads serving the airport and
surrounding communities
X
Result in a substantial loss in community tax base
X
Impact water quality, sole source aquifers, public water
supply system, or state or tribal water quality standards
X
Impact or violate local, state, Tribal, or Federal air
ualit�- standards
X
Attach detailed comments for all "yes" answers on a separate sheet, and explain
your justification for a request for a determination of Categorical Exclusion.
U.S. DEPARTMENT OF TRANSPORTATION - FEDERAL AVIATION ADMINISTRATION OMB NO.2120-0569
11/30/2007
PART II
PROJECT APPROVAL INFORMATION
SECTION A
Item 1.
Does this assistance request require State, local, regional,
Name of Governing Body:
or other priority rating?
Priority:
❑ Yes 0 No
Item 2.
Does this assistance request require State, or local
Name of Agency or Board:
(Attach Documentation)
advisory, educational or health clearances?
❑ Yes 0 No
Item 3.
Does this assistance request require clearinghouse review
(Attach Comments)
in accordance with OMB Circular A-95?
❑ Yes 0 No
Item 4.
Does this assistance request require State, local,
Name of Approving Agency:
regional or other planning approval?
Date:
❑ Yes 0 No
Item 5.
Check one: State
Is the proposal project covered by an approved
Local
comprehensive plan?
Regional
❑ Yes 0 No
Location of Plan:
Item 6.
Name of Federal Installation:
Will the assistance requested serve a Federal
Federal Population benefiting from Project:
installation?
❑ Yes �X No
Item 7.
Name of Federal Installation:
Will the assistance requested be on Federal land
Location of Federal Land:
or installation?
❑ Yes �X No
Percent of Project:
Item 8.
Will the assistance requested have an impact or effect on
See instruction for additional information to be
the environment?
provided
❑ Yes �X No
Item 9.
Number of:
Will the assistance requested cause the displacement of
Individuals:
Families:
individuals, families, businesses, or farms?
Businesses:
❑ Yes [Z No
Farms:
Item 10.
Is there other related Federal assistance on this
See instructions for additional information to be
project previous, pending, or anticipated?
provided.
❑ Yes �X No
FAA Form 5100-100 (6-73) SUPERSEDES FAA FORM 5100-1 (9-03)
Page 2
INSTRUCTIONS FOR 5100-100 PART II A
Project Approval Information
Negative answers will not require an explanation unless the federal agency requests more information at a later date.
Provide supplementary data for all "Yes" answers in the space provided in accordance with the following instructions.
Item 1 - Provide the name of the governing body establishing
the priority system and the priority rating assigned to this
project.
Item 2 - Provide the name of the agency or board which issued
the clearance and attach the documentation of status or
approval
Item 3 - Attach the clearinghouse comments for the application
in accordance with the instructions contained in Office of
Management and Budget Circular No. A-95. If comments were
submitted previously with a preapplication, do not submit them
again but any additional comments received from the
clearinghouse should be submitted with this application.
Item 4 - Furnish the name of the approving agency and the
approval date.
Item 5 - Show whether the approved comprehensive plan is
State, local, or regional, or if none of these, explain the scope
of the plan. Give the location where the approved plan is
available for examination and state whether this project is in
conformance with the plan.
Item 6 - Show the Federal population residing or working on
the federal installation who will benefit from this project.
Item 7 - Show the percentage of the project work that will be
conducted on federally -owned or leased land. Give the name of
the Federal installation and its location.
Item 8 - Briefly describe the possible beneficial and/or harmful
impact on the environment because of the proposed project. If
an adverse environment impact is anticipated, explain what
action will be taken to minimize the impact. Federal agencies
will provide separate instructions if additional data is needed.
Item 9 - State the number of individuals, families, businesses,
or farms this project will displace. Federal agencies will provide
separate instructions if additional data is needed.
Item 10 -Show the Federal Domestic Assistance Catalog
number, the program name, the type of assistance, the status
and amount of each project where there is related previous,
pending, or anticipated assistance. Use additional sheets, if
needed
Paperwork Reduction Act Statement: The information collected on this form allows sponsors of public use airports or public
agencies to apply for one or more projects in a form prescribed by the Secretary of Transportation.
Title 49, United States Code (U.S.C.), Section 47105, identifies the information required to apply for this program. The forms
prescribed to meet this requirement are developed to provide a comprehensive format that allows sponsors to provide the data
needed to evaluate the request for funds. The burden for each response is estimated to be 28 hours. Approved applications
benefit the sponsor by providing Federal funding to protect the Federal interest in safety, efficiency, and utility of the Nation's
airport system. No assurance of confidentiality can be given since these become public records. If you wish to make any
comments concerning the accuracy of this burden estimate or any suggestions for reducing this burden, send to Federal Aviation
Administration, ARP-10, 800 Independence AVE, SW, Washington, DC 20591. Please note that an agency may not conduct or
sponsor, and a person is not required to respond to, a collection of information unless it displays a currently valid OMB control
number, which is 2120-0569 for this collection. Comments concerning the accuracy of this burden and suggestions for reducing
the burden should be directed to the FAA at: 800 Independence Ave SW, Washington, DC 20591, Attn: Information Collection
Clearance Officer, ABA-20
U.S. DEPARTMENT OF TRANSPORTATION - FEDERAL AVIATION ADMINISTRATION OMB NO.2120-0569
PART II - SECTION C
The Sponsor hereby represents and certifies as follows:
1. Compatible Land Use. - The Sponsor has taken the following actions to assure compatible usage of land adjacent to or in the vicinity
of the airport:
2. Defaults. - The Sponsor is not in default on any obligation to the United States or any agency of the United States Government
relative to the development, operation, or maintenance of any airport, except as stated herewith:
3. Possible Disabilities. - There are no facts or circumstances (including the existence of effective or proposed leases, use agreements
or other legal instruments affecting use of the Airport or the existence of pending litigation or other legal proceedings) which in
reasonable probability might make it impossible for the Sponsor to carry out and complete the Project or carry out the provisions of
Part V of this Application, either by limiting its legal or financial ability or otherwise, except as follows:
4. Consistency with Local Plans. — The project is reasonably consistent with plans existing at the time of submission of this application)
of public agencies that are authorized by the State in which the project is located to plan for the development of the area surrounding
the airport.
5. Consideration of Local Interest - It has given fair consideration to the interest of communities in or near where the project may be
located.
6. Consultation with Users. In making a decision to undertake any airport development project under Title 49, United States Code, it
has undertaken reasonable consultations with affected parties using the airport which project is proposed.
7. Public Hearings. — In projects involving the location of an airport, an airport runway or a major runway extension, it has afforded the
opportunity for public hearings for the purpose of considering the economic, social, and environmental effects of the airport or runway
location and its consistency with goals and objectives of such planning as has been carried out by the community and it shall, when
requested by the Secretary, submit a copy of the transcript of such hearings to the Secretary. Further, for such projects, it has on its
management board either voting representation from the communities where the project is located or has advised the communities that
they have the right to petition the Secretary concerning a proposed project.
8. Air and Water Quality Standards. — In projects involving airport location, a major runway extension, or runway location it will provide
for the Governor of the state in which the project is located to certify in writing to the Secretary that the project will be located,
designed, constructed, and operated so as to comply with applicable and air and water quality standards. In any case where such
standards have not been approved and where applicable air and water quality standards have been promulgated by the Administrator
of the Environmental Protection Agency, certification shall be obtained from such Administrator. Notice of certification or refusal to
certify shall be provided within sixty days after the project application has been received by the Secretary.
FAA Form 5100-100 (9-03) SUPERSEDES FAA FORM 5100-100 (6-73) Page 3a
U.S. DEPARTMENT OF TRANSPORTATION - FEDERAL AVIATION ADMINISTRATION OMB NO.2120-0569
PART II - SECTION C (Continued)
9. Exclusive Rights — There is no grant of an exclusive right for the conduct of any aeronautical activity at any airport owned or
controlled by the Sponsor except as follows:
10. Land. — (a) The sponsor holds the following property interest in the following areas of land* which are to be developed or used as
part of or in connection with the Airport subject to the following exceptions, encumbrances, and adverse interests, all of which areas
are identified on the aforementioned property map designated as Exhibit "A":
The Sponsor further certifies that the above is based on a title examination by a qualified attorney or title company and that such
attorney or title company has determined that the Sponsor holds the above property interests.
(b) The Sponsor will acquire within a reasonable time, but in any event prior to the start of any construction work under the
Project, the following property interest in the following areas of land* on which such construction work is to be performed, all of which
areas are identified on the aforementioned property map designated as Exhibit "A":
(c) The Sponsor will acquire within a reasonable time, and if feasible prior to the completion of all construction work under the
Project, the following property interest in the following areas of land* which are to be developed or used as part of or in connection with
the Airport as it will be upon completion of the Project, all of which areas are identified on the aforementioned property map designated
as Exhibit "A"
*State character of property interest in each area and list and identify for each all exceptions, encumbrances, and adverse interests of
every kind and nature, including liens, easements, leases, etc. The separate areas of land need only be identified here by the area
numbers shown on the property map.
FAA Form 5100-100 (9-03) SUPERSEDES FAA FORM 5100-100(4-76) Page 3b
U.S. DEPARTMENT OF TRANSPORTATION - FEDERAL AVIATION ADMINISTRATION
OMB NO.2120-0569
PART III - BUDGET INFORMATION - CONSTRUCTION
SECTION A - GENERAL
1. Federal Domestic Assistance Catalog No ................................. 20-106
2. Functional or Other Breakout ....................................................
SECTION B -CALCULATION OF FEDERAL GRANT
Cost Classification
Use only for revisions
Total
Amount
Required
Latest Approved
Amount
Adjustment
+ or (-)
1. Administration expense
$
$
$
2. Preliminary expense
3. Land, structures, right-of-way
4. Architectural engineering basic fees
5. Other Architectural engineering fees
6. Project inspection fees
7. Land development
8. Relocation Expenses
9. Relocation payments to Individuals and Businesses
10. Demolition and removal
11. Construction and project improvement
12. Equipment
13. Miscellaneous
14. Total (Lines 1 through 13)
15. Estimated Income (if applicable)
16. Net Project Amount (Line 14 minus 15)
17. Less: Ineligible Exclusions
18. Add: Contingencies
19. Total Project Amt. (Excluding Rehabilitation Grants)
$ 166,667
20. Federal Share requested of Line 19
$ 150,000
21. Add Rehabilitation Grants Requested (100 Percent)
22. Total Federal grant requested (lines 20 & 21)
$ 150,000
23. Grantee share
$ 16,667
24. Other shares
25. Total Project (Lines 22, 23 & 24)
$
$
$166,667
FAA Form 5100-100 (9-03) SUPERSEDES FAA FORM 5100-100 (6-73) Page 4
INSTRUCTIONS
PART III
SECTION A. GENERAL
1. Show the Federal Domestic Assistance Catalog Number However, show the total amounts for all programs in
from which the assistance is requested. When more than one Section B of the basic application form.
program or Catalog Number is involved and the amount cannot
be distributed to the Federal grant program or catalog number 2. Show the functional or other categorical breakouts, if
on an over-all percentage basis, prepare a separate set of Part required by the Federal grantor agency. Prepare a separate
III forms for each program or Catalog Number. set of Part III forms for each category.
SECTION B. CALCULATION OF FEDERAL GRANT
When applying for a new grant, use the Total Amount Column only. When requesting revisions of previously awarded amounts, use all
columns.
Line 1 - Enter amounts needed for administration expenses Line 12 - Enter amounts for equipment both fixed and movable
including such items as travel, legal fees, rental of vehicles and exclusive of equipment used in construction. For example,
any other expense items expected to be incurred to administer include amounts for permanently attached laboratory tables,
the grant. Include the amount of interest expense when built-in audio visual systems, movable desks, chairs, and
authorized by program legislation and also show this amount laboratory equipment.
under Section E Remarks. Line 13 - Enter amounts for items not specifically mentioned
Line 2 - Enter amounts pertaining to the work of locating and above.
designing, making surveys and maps, sinking test holes, and
all other work required prior to actual construction. Line 14 - Enter the sum of Lines 1-13.
Line 3 - Enter amounts directly associated with the acquisition
of land, existing structures, and related right-of-way.
Line 4 - Enter basic fees for architectural engineering services.
Line 5 - Enter amounts for other architectural engineering
services, such as surveys, tests, and borings.
Line 6 - Enter fees for inspection and audit of construction and
related programs.
Line 7 - Enter amounts associated with the development of
land where the primary purpose of the grant is land
improvement. Site work normally associated with major
construction should be excluded from this category and shown
on line 11.
Line 8 - Enter the dollar amounts needed to provide relocation
advisory assistance, and the net amounts for replacement (last
resort) housing. Do not include relocation administration
expenses on this Line; include them on Line 1.
Line 9 - Enter the estimated amount of relocation payments to
be made to displaced persons, business concerns, and non-
profit organizations for moving expenses and replacement
housing.
Line 10 - Enter the gross salaries and wages of employees of
the grantee who will be directly engaged in performing
demolition or removal of structures from developed land. This
line should show also the cost of demolition or removal of
improvements on developed land under a third party contract.
Reduce the costs on this line by the amount of expected
proceeds from the sale of salvage, if so instructed by the
Federal grantor agency. Otherwise, show the proceeds on Line
15.
Line 11 - Enter amounts for the actual construction of, addition
to, or restoration of a facility. Also, include in this category the
amounts of project improvements such as sewers, streets,
landscaping, and lighting.
Line 15 - Enter the estimated amount of program income that
will be earned during the grant period and applied to the
program.
Line 16 - Enter the difference between the amount on Line 14
and the estimated income shown on Line 15.
Line 17 - Enter the amounts for those items, which are a part
of the project but not subject to Federal participation (See
Section C, Line 26g, Column (1)).
Line 18 - Enter the estimated amount for contingencies.
Compute this amount as follows. Subtract from the net project
amount shown on Line 16 the ineligible project exclusions
shown on Line 17 and the amount, which is excluded from the
contingency provisions shown in Section C, Line 26g, Column
(2). Multiply the computed amount by the percentage factor
allowed by the grantor agency in accordance with the Federal
program guidance. For those grants, which provide for a fixed
dollar allowance in lieu of a percentage allowance, enter the
dollar amount of this allowance.
Line 19 - Show the total amount of Lines 16, 17, and 18. (This
is the amount to which the matching share ratio prescribed in
program legislation is applied.)
Line 20 - Show the amount of Federal funds requested
exclusive of funds for rehabilitation purposes.
Line 21 - Enter the estimated amounts needed for
rehabilitation expense if rehabilitation grants to individuals are
made for which grantees are reimbursed 100 percent by the
Federal grantor agency in accordance with program legislation.
If the grantee shares in part of this expense, show the total
amount on Line 13 instead of on Line 21 and explain in Section
E.
Line 22 - Show the total amount of the Federal grant
requested.
Line 23 - Show the amount from Section D. Line 27h.
Line 24 - Show the amount from Section D, Line 28c.
Line 25 - Self-explanatory.
U.S. DEPARTMENT OF TRANSPORTATION - FEDERAL AVIATION ADMINISTRATION
OMB NO.2120-0569
SECTION C - EXCLUSIONS
Classification
Ineligible for
Participation
1
Excluded From
Contingency Provision
2
a.
$
$
b.
C.
d.
e.
f.
g.
Totals
$
$
SECTION D - PROPOSED METHOD OF FINANCING NON-FEDERAL SHARE
27.
Grantee Share
$
a. Securities
b. Mortgages
c. Appropriations (By Applicant)
d. Bonds
e. Tax Levies
f. Non Cash
g. Other (Explain)
$16,667
h. TOTAL - Grantee share
$16,667
28.
Other Shares
a. State
b. Other
c. Total Other Shares
29.
TOTAL
$
16,667
SECTION E - REMARKS
PART IV PROGRAM NARRATIVE (Attach - See Instructions)
FAA Form 5100-100 (9-03) SUPERSEDES FAA FORM 5100-100 (6-73) Page 5
INSTRUCTIONS
PART III
SECTION C. EXCLUSIONS
Line 26 a-g - Identify and list those costs in Column (1), which
are part of the project cost but are not subject to Federal
participation because of program legislation or Federal grantor
agency instructions. The total amount on Line g should agree
with the amount shown on Line 17 of Section B.
Show in Column (2) those project costs that are subject to
Federal participation but are not eligible for inclusion in the
amount used to compute contingency amounts as provided in
the Federal grantor agency instructions.
SECTION D. PROPOSED METHOD OF FINANCING NON-FEDERAL SHARE
Line 27 a-g - Show the source of the grantee's share. If cash is Line 28b - Show the amount that will be contributed from other
not immediately available, specify the actions completed to sources. If there is a non -cash contribution, explain what the
date and those actions remaining to make cash available under contribution will consist of under Section E Remarks.
Section E Remarks. Indicate also the period of time that will be
required after execution of the grant agreement to obtain the Line 28c -Show the total of Lines 28a and 28b. This amount
funds. If there is a non -cash contribution, explain what this must be the same as the amount shown in Section B, Line 24.
contribution will consist of. Line 29 - Enter the totals of Line 27h and 28c.
Line 27h - Show the total of Lines 27 a-g. This amount must
equal the amount shown in Section B, Line 23.
Line 28a - Show the amount that will be contributed by a State
or state agency, only if the applicant is not a State or state
agency. If there is a non -cash contribution, explain what the
contribution will consist of under Section E Re -marks.
SECTION E. OTHER REMARKS
Make any remarks pertinent to the project and provide any other information required by these instructions or the grantor agency. Attach
additional sheets, if necessary.
PART IV
PROGRAM NARRATIVE
(Suggested Format)
DEPARTMENT OF TRANSPORTATION -FEDERAL AVIATION ADMINISTRATION
OMB NO.2120-0569
PROJECT: Obstruction Removal RPZ/RW 25 — Lease buy out
AIRPORT: Florida Keys Marathon Airport
1. Objective:
Buy out existing leases on hangars within the RPZ of RW 25 to clear the RPZ
2. Benefits Anticipated:
Runway 25 RPZ without obstructions, conforming to FAA Standards.
3. Approach : (See approved Scope of Work in Final Application)
Consultant's means and methods using standard purchasing practices
4. Geographic Location:
This project will take place at the Florida Keys Marathon Airport, located on 9400 Overseas Highway, Marathon,
Florida
5. If Applicable, Provide Additional Information:
N/A
6. Sponsor's Representative: (include address & telephone number)
Peter J. Horton
3491 South Roosevelt Boulevard
Key West, Florida 33040
(305) 809-5200
FAA Form 5100-100 (9-03) SUPERSEDES FAA FORM 5100-100 (6-73) Page 6
INSTRUCTIONS
PART IV
PROGRAM NARRATIVE
Prepare the program narrative statement in accordance with the following instructions for all new grant programs. Requests for
supplemental assistance should be responsive to Item 5b only. Requests for continuation or refunding or other changes of an approved
project should be responsive to Item 5c only.
1. OBJECTIVES AND NEED FOR THIS ASSISTANCE.
Pinpoint any relevant physical, economic, social, financial,
institutional, or other problems requiring a solution.
Demonstrate the need for assistance and state the principal
and subordinate objectives of the project. Supporting
documentation or other testimonies from concerned interests
other than the applicant may be used. Any relevant data based
on planning studies should be included or footnoted.
2. RESULTS OR BENEFITS EXPECTED.
Identify results and benefits to be derived. For example, include
a description of who will occupy the facility and show how the
facility will be used. For land acquisition or development
projects, explain how the project will benefit the public.
3.APPROACH
a. Outline a plan of action pertaining to the scope and detail of
how the proposed work will be accomplished for each grant
program. Cite factors, which might accelerate or decelerate the
work, and your reason for taking this approach as opposed to
others. Describe any unusual features of the project such as
design or technological innovations, reductions in cost or time,
or extraordinary social and community involvements.
b. Provide each grant program monthly or quarterly quantitative
projections of the accomplishments to be achieved, if possible.
When accomplishments cannot be quantified, list the activities
in chronological order to show the schedule of
accomplishments and their target dates.
c. Identify the kinds of data to be collected and maintained, and
discuss the criteria to be used to evaluate the results and
success of the project. Explain the methodology that will be
used to determine if the needs identified and discussed are
being met and if the results and benefits identified in Item 2 are
being achieved.
d. List each organization, cooperator, consultant, or other key
individuals who will work on the project along with a short
description of the nature of their effort or contribution.
Give a precise location of the project and area to be served by
the proposed project. Maps or other graphic aids may be
attached.
5. IF APPLICABLE, PROVIDE THE FOLLOWING
INFORMATION:
a. Describe the relationship between this project and other
work planned, anticipated, or underway under the Federal
Assistance listed under Part II, Section A, Item 10.
b. Explain the reason for all requests for supplemental
assistance and justify the need for additional funding.
c. Discuss accomplishments to date and list in chronological
order a schedule of accomplishments, progress, or milestones
anticipated with the new funding re -quest. If there have been
significant changes in the project objectives, location, approach
or time delays, explain and justify. For other requests for
changes or amendments, explain the reason for the change(s).
If the scope or objectives have changed or an extension of time
is necessary, explain the circumstances and justify. If the total
budget has been exceeded or if individual budget items have
changed more than the prescribed limits contained in
Attachment K, Office of Management and Budget Circular No.
A-102, explain and justify the change and its effect on the
project.
APPRAISAL REPORT
,Sunvvar y Appraisal Report
Property Type:
Airplane Shade Hangars
Located At:
Florida Keys Marathon Airport
9400 Overseas Highway
Marathon, Florida 33050
Prepared For:
MR. REGGIE PAROS, MANAGER
FLORIDA KEYS MARATHON AIRPORT
9400 OVERSEAS HIGHWAY, SUITE 200
MARATHON, FL 33050
Valuation Date:
JANuARY I, 2011
Inspection Date:
DECEMBER 23, 2010
Prepared By:
James Wilson, MRICS, President Richard Padron, CCIM, MSA
St. Cert. Gen. REA St. Cert. Gen. REA
License No. RZ 2164 License No. RZ 544
APPRAISAL COMPANY OF KEY WEST
3229 Flagler Avenue, Suite 101
Key West, Florida 33045
OUR FILE NO.: 3 5 7-10
APPRAISAL
OF KEY WEST
CO3229 Fla, FloridaAvenue, Suite #101
Key
Key West, F33045-2152
Telephone: (305) 296-4568
Fax: (305)296-0493
Website: fla-keysappraisals.com
Email: jim@fla-keysappraisals.com
March 8, 2011
Mr. Reggie Paros, Manager
Florida Keys Marathon Airport
9400 Overseas Highway, Suite 200
Marathon, FL 33050
Subject: Appraisal Report
Hangar One & Marathon Flying Club Shade Hangars
Florida Keys Marathon Airport
9400 Overseas Highway, Suite 200
Marathon, FL 33050
Our File No.: 357-10
Dear Ms. Paros:
We have performed a summary appraisal report to estimate the Leasehold Interest for the subject
property, commonly known as the Hangar One & Marathon Flying Club Hangars, located at Florida
Keys Marathon Airport, 9400 Overseas Highway, Marathon, Florida. The appraisers have personally
examined and appraised the subject property for the purpose of reporting to you our opinion of the
leasehold interest, as of January 1, 2011.
The assumptions and the real estate referenced above are more clearly defined in the general and
extraordinary assumptions and limiting conditions and in the property description section of this report.
The attached limited appraisal process has been prepared to comply with our understanding of the
requirements of the Uniform Standards of Professional Appraisal Practice.
The subject property consists of two detached airport shade hangars leased from Monroe County,
Florida Keys Marathon Airport. The hangars are located on the northeast corner of the airport adjacent
to Aviation Boulevard. The Hangar One hangar measures about 95 feet along the taxiway by 32.5 feet
in depth containing a total of 3,088 square feet and has two bays. The second hangar leased to Marathon
Flying Club measures 427.5 feet along the taxiway by 33.0 feet in depth containing a total of 14,108
square feet and has nine bays. The site which is the subject of this report is a small portion of a larger
parcel commonly known as the Florida Keys Marathon Airport owned by Monroe County.
The appraisers performed a site -visit and personal walls through examination of the subject
improvements with some measurements taken on -site, as well as the measurements taken from the site
plan provided. There was no legal description provided as the leasehold is a small part of the overall
airport property. The subject hangars consist of a total of 17,196 square feet which is a vary small part
Mr. Reggie Paros, Manager
Florida Keys Marathon Airport
March 8, 2011
Page 2
of north easterly portion of the Marathon Airport. According to the Monroe County Property Card the
subject property is only a very small part of a larger 67.50 acre parcel, commonly known as the Florida
Keys Marathon Airport. For purposes of our valuation within this report, we have utilized the
dimensions taken from the site plan with on -site verification. The site plan is included in the Addendum
section of this report. The leasehold interest in the subject property includes the use of the common area
identified as the Marathon Airport. Any deviations from these sizes may result in a change in value.
This report contains the results of our investigation and analysis made in order to fiirnish an estimate
of the Leasehold Interest of the subject property described herein, based on the Highest and Best Use.
Leasehold Interest is defined as the interest held by the lessee (the tenant) through a lease transferring
the rights of use and occupancy for a stated term under certain conditions. The reader is cautioned that
a title search was not made; thus, no other encumbrances are considered herein. This evaluation does
not consider any personal property.
The subject property consists of two separate land leases for each of airport shade hangars from the
Florida Keys Marathon Airport. This subject property's leases will terminate on March 19, 2017 and
October 10, 2017. The two shade hangars have a total of 11 bays, with an average size of 1,563 square
feet per bay which will accommodate a single engine or a small twin engine aircraft. Detailed
descriptions of the improvements may be found within the report. The lease payments are monthly and
the sublessee's have a nonexclusive use of the common area.
Based on market analysis and research, it is our opinion that the Leasehold Interest of the subject
property, commonly known as the Hangar One & Marathon Flying Club Hangars, located at Florida
Keys Marathon Airport, 9400 Overseas Highway, Marathon, Florida, subject to definitions, assumptions
and limiting conditions, as of January 1, 2011 is:
ONE HUNDRED FIFTY-ONE THOUSAND DOLLARS
($ 151,000)
This is a summary appraisal report which is intended to comply with the reporting requirements set forth
under Standard Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice for a summary
appraisal report. As such, it might not include full discussions of the data, reasoning, and analyses that
were used in the appraisal process to develop the appraiser's opinion of value. Supporting
documentation concerning the data, reasoning, and analyses is retained in the appraiser's file. The
information contained in this report is specific to the needs of the client and for the intended use stated
in this report.
If you have any questions regarding this appraisal report, please feel free to contact us. Thank you for
giving us the opportunity to provide this service for you. This transmittal letter must remain attached
to the report, which contains 61 pages including related exhibits, in order for the value opinion set forth
to be considered valid.
Mr. Reggie Paros, Manager
Florida Keys Marathon Airport
March 8, 2011
Page 3
Respectfully submitted,
James Wilson, MRIC S, President
St. Cert. Gen. REA
License No. RZ 2164
Report Attached:
c:',comm-lo',comm-3s7-lo.Nx-I)d
Richard Padron, CCIM, MSA
St. Cert. Gen. REA
License No. RZ 544
StsmmarvA��raisal Report Hangar One &Marathon Flying Chsb Hangars, Marathon Airport
SUMMARY OF FACTS AND CONCLUSIONS
Subject Property Address: Mile Marker 52+
Florida Keys Marathon Airport
9400 Overseas Highway
Marathon, Florida 33040
Property Type: Airport Shade Hangars
Land & Building Size:
Subject Property Description
Florida Keys Marathon Airport
Hangar ' Type
No.
Tenant Size SF Hangar
B a s
Hanger One
1 3,0881
Shade
1
2
Marathon Flying Club
1 14,1081
Shade
1
9
Totals: 17,196
11
Site Description: Located on the northeast corner of Florida Keys Marathon Airport with
approximately 522 linear feet of frontage along the taxiway, extending
33 feet in depth.
Zoning: A, Airport District, City of Key West.
Highest and Best Use: As Improved
Leasehold Value:
Cost Approach Not Applicable
Income Approach $151,000
Sales Comparison Approach Not Applicable
Value of the Leasehold Interest of the Subject $151,000
Property, as of January 1, 2011 (Rounded):
Appraisal Compan.v o f Kce TT est Page 1
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
This valuation does not consider any personal property.
Date of Site Visit: December 23, 2010
Valuation Date: January 1, 2011
Date of Report: March 8, 2011
Marketing Time: 2 to 6 months based on a list price within 5 percent of appraised
value and based on stable economic conditions.
Exposure Time: 2 to 6 months based on a list price within 5 percent of appraised
value.
Special Assumptions: The leasehold interest is based on the existing lease with the
Monroe County, Florida Keys Marathon Airport, and all the
terms and conditions within the leases.
Appraisal Compan.v o f Kce TT est Page 2
StsmmarvA��raisal Report Hangar One &Marathon Flying Chsb Hangars, Marathon Airport
SUMMARY APPRAISAL REPORT
This is a summary appraisal report which is intended to comply with the reporting requirements set forth
under Standard Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice for a summary
appraisal report. As such, it might not include full discussions of the data, reasoning, and analyses that
were used in the appraisal process to develop the appraiser's opinion of value. Supporting
documentation concerning the data, reasoning, and analyses is retained in the appraiser's file. The
information contained in this report is specific to the needs of the client and for the intended use stated
in this report. The reader is referred to the Scope of Work section of this report. The appraiser is not
responsible for unauthorized use of this report.
INTENDED USER/
CLIENT:
APPRAISERS
Mr. Reggie Paros, Manager
Florida Keys Marathon Airport
9400 Overseas Highway, Suite 200
Marathon, FL 33050
Richard Padron, CCIM, MSA
St. Cert. Gen. REA
License No. RZ 544
James E. Wilson, NMCS, President
St. Cert. Gen. REA
License No. RZ 2164
SUBJECT: Hangar One & Marathon Flying Club Shade Hangars
Florida Keys Marathon Airport
9400 Overseas Highway
Marathon, Florida 33050
Appraisal Compan.v o f Kce TT est Page 3
StsmmarvA��raisal Report Hangar One &Marathon Flying Chsb Hangars, Marathon Airport
PURPOSE AND INTENDED USE OF THE APPRAISAL
The purpose of this appraisal is to estimate the Leasehold Interest for the subject property, commonly
known as the Hangar One & Marathon Flying Club Hangars, located on the northeast corner of the
Florida Keys Marathon Airport, 9400 Overseas Highway, Marathon, Florida, as of January 1, 2011.
The intended use of this appraisal is to provide general information for the possible buyout of the
leasehold interest in the subject property.
The intended user is Mr. Reggie Paros, Manager, Florida Keys Marathon Airport, 9400 Overseas
Highway, Suite 200, Marathon, FL 33050.
VALUE DEFINITION
Leasehold Interest is defined as the interest held by the lessee (the tenant) through a lease transferring
the rights of use and occupancy for a stated term under certain conditions. The reader is cautioned that
a title search was not made; thus, no other encumbrances are considered herein.
PROPERTY RIGHTS APPRAISED
This report contains the results of our investigation and analysis made in order to fiirnish an estimate
of the Leasehold Interest of the subject property described herein, based on the Highest and Best Use.
Leasehold Interest is defined as the interest held by the lessee (the tenant) through a lease transferring
the rights of use and occupancy for a stated term under certain conditions. The reader is cautioned that
a title search was not made; thus, no other encumbrances are considered herein.
Appraisal C'ompan.v c? f Kce TT est Page 4
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
SUBJECT'S MARKET AREA (NEIGHBORHOOD) ANALYSIS
The subject property is located in an urban, incorporated area commonly known as the City of
Marathon, Florida. It is located approximately at approximately mile marker 48, approximately 43
miles northeasterly from the City of Key West, stretching across twenty-seven bridges. The property
is located in a residential and commercial area providing all of the services necessary within an urban
area. Being a main population area of the Middle Keys, Marathon offers much in terms of commerce,
residential housing and service as well as industrial areas. This is an area of mixed zoning and uses
which services the demands and requirements of the Middle Keys market.
The subject property is located on the northeast corner of the Florida Keys Marathon Airport which has
direct access along the Overseas Highway also known as U.S. Highway No.1, and extends to Aviation
Boulevard across the rear. The commercial uses along U. S. Highway No. 1 include hotels, motels,
restaurants, professional offices, hospital, retail shops and strip shopping centers, tourist -related
businesses, service establishments, recreational and commercial marinas, marine related uses, and
mobile home parks.
The Marathon Airport is located about fifty-two miles northeasterly from the City of Key West.
Marathon Airport is used for privately owned airplanes, as well as for light commercial traffic which
services the population area. The airport was recently upgraded with a new terminal. Although the
main commercial carrier at the Marathon Airport has ceased service, negotiations with a new provider
are still underway. Rent concessions and other perks will have to be made in order to secure the new
carrier. Marathon also offers the only substantially sized shopping district for the Middle Keys
community, having two large commercial shopping centers, as well as many smaller strip shopping
centers, utility company offices, Monroe County offices, schools, etc.
Throughout the Florida Keys, only Key West and Key Largo provide a similar variety of services. The
subject property is located on the westerly side of the "uptown" Business District. Marathon has
developed steadily over the past ten years; this development accelerated as a result of the conversion
of the Overseas Highway from a two-lane to a four -lane highway in the late 1980's and early 1990's
through Marathon.
General Economic Conditions:
The Florida Keys and specifically Key West have flourished over the past two decades with tourism
developing as the County's primary economic base. The County has had tremendous success with its
advertising efforts and attraction of tourists of all Nationalities. Hotels and motel facilities in Monroe
County have flourished over the pasted decade. However, due to the active hurricane seasons of 2004
and 2005, the Florida Keys experienced a decrease in tourism. Furthermore, the decline appeared to
continue based upon the overall downturn of the economy and recession. According to the Chamber
of Commerce research and interviews with local guest house owners, tourists are booking reservations
Appraisal Compan.v o f Kce TT est Page 5
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
closer to their arrival dates, instead of reservations being made much more in the future. Per the
Chamber of Commerce, passenger arrivals in August 2010 at the Key West International Airport were
up approximately 27.2% as compared to August of last year. The level of activity is also the best first
eight -months since 2007, according to the Economic Trends Report.
Located approximately three miles east of Marathon, The Florida Keys Marathon Airport primarily
serves a variety of general aviation activities. With its single 5,008-foot runway, the airport can
accommodate general aviation business jet aircraft. The terminal is ideal for serving local users
as well as those visiting the area.
The airport's largest tenant is the Monroe County Sheriff Aviation Department followed by Federal
Express and Marathon Jet Center, a fixed base operator (FBO). Air cargo and air taxi/charter operations
are also common at The Florida Keys Marathon Airport. All of the activity supported by the airport's
tenants is important to the airport's revenue streams and to the airport's economic impacts.
The annual economic impact of The Florida Keys Marathon Airport is associated with direct impacts
that come from tenants/businesses located at the airport and constriction projects that are undertaken
by the airport or by on -site businesses. Indirect impacts are associated with spending from visitors who
arrive in the area via general aviation aircraft.
The Florida Keys Marathon Airport (MTH) Transport Statistics
Based Aircraft Operational Statistics MTH
Based Aircraft
Aircraft based on field: 72
Single Engine Airplanes: 52
Multi Engine Airplanes: 12
Jet Engine Airplanes: 1
Helicopters: 6
Ultralights: 1
Operational Statistics
Time Period: 2008-06-01 - 2009-05-31
Aircraft Operations: 181/Day
Air Taxi: 5.9%
General Aviation Local: 52.6%
General Aviation Itinerant: 41.3%
Military: 0.2%
Based on the general economic environment, it is our opinion that increasing real estate values for
commercial and residential properties will stabilize and eventually start to rebound, but at a reduced rate,
Appraisal Compan.v o f Kce TT est Page 6
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
spurred by supply and demand forces within Monroe County, which is almost built -out. Tourism, the
economic base of Key West and the Florida Keys, has experienced steady growth over the last two
decades with recent declines observed due to the national economic conditions. Stabilization is
forecasted in the near future, unless the national recovery takes longer than expected to recover. Monroe
County has the lowest unemployment rate in the state of Florida at 1.9% prior to 2001. A faltering stock
market over the past couple of years with rising fuel prices and the war on terrorism has spurred
concerns. According to the national hospitality industry the next two years, 2012 and 2013, we should
experience an increase in ADR and occupancy due to the decrease in the supply factor, thereby
increasing the demand factor for existing establishments.
Conclusion:
In summary, the subject property is located in the Middle Keys where there is a concentration of
services, employment and shopping. Only Key West and Key Largo offer similar services, each is
located 40 to 50 miles away. Residential uses are located off the highway; these neighborhoods, as well
as neighboring communities support the commercial businesses in the area. In 1994-1995, Monroe
County moved some of its divisions to a new facility in Marathon; therefore, increasing the employment
population which requires goods and services. Marathon's central location is appealing, especially with
the increasing availability of services. The neighborhood may be undergoing an increase in desirability
in the fiiture due to improvements with respect to goods and services and its accessibility to the
mainland. Two such fairly recent developments, representative of Marathon's central region location,
include the opening of Home Depot and Office Depot stores. In this case, the subject property is a
unique ocean front property that is quite scarce in the Florida Keys.
The surrounding strictures are generally well maintained in above average condition with the adjacent
commercial strictures being well -maintained. However, there are many redevelopment projects in the
area that are either totally stopped or in financial trouble. As the subject property is on one of the main
highway through the Florida Keys, it is considered very viable for most any commercial, tourist oriented
or transient use. We anticipate continued improvement in the general quality of the neighborhood,
particularly with the increased demand for this type of property due to building and environmental
restriction placed on all properties in the Florida Keys.
On the following page is the Economic Trends, published by the Key West Chamber of Commerce,
indicating the increase in air arrivals this year as compared to prior years.
Appraisal Compan.v o f Kce TT est Page 7
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
Ecomomi
''.,.
Key West International Airport Arrivals
P ssongfr arrivals In August 2010
',.
January 2006 -August 2O10
totaled 18,800 which is up a robust
',.
27.2% from August or last year.
35„000
-
Deptanamentsduring the first eight
3@'@@@
1
month or 20 11 total 186,623 passengers,
'head. of the'61.,771 passengers it, t
2 25,000
arrived during the first eight months of
m
m 20,000
15" @
1
f
_)
ease year by IS.d%, rhos levvi oractwity
is also the hest first Ohio -month, since
2-0117. AarTrnnbe an service between
1
('
Kt) W.t and Orlando in December of
0 1@.@@@
'
lase year.
5,1F@@
i
1 j
I
This is now The MT11 straight month that
@
F _ �(
t �> 1
patcnper arrival totals are betterdean
the same month inthe pre sans year..
Jan Feb Mar Apr May Jun Jut Aug Sep Oct Nov Dec
During this strcteh, we have seen almost
Source: Key West Internationel Airport
37,6110 more passengers, an increase or
'..,
1 1. from prrvhats } our volumes..
'..,
C2000 C32007 L32008 C32009 02010
'...,
A total of 71,077 cruise ship passengers.
'...,
Key West Cruise Ship Passengers
disembarked redo Ker West in ,August
January 2d@t7-August 2010
2010, This N21.3% ahead oflast
120,00@..
......... ......... ......... ........ ......... .........
......... .........
August whieh saw 58,6051tassenpers
disembark.
1@0,000
......... fs,wae€tuxvvosions
......... ..
For fhr Drst 8 mcrnihs of 2GI.11,. pnssrnger
arrivars totaled ."i- 8.d78 o hich is below'
° B@•@@@
I I
The tone period in 2009 b r 7.7^6e
m
80,@9tt
w
a
l j
�
1�
The e rinse xhfya xe9tvwinlflrnr September
m
_
r I
I �
that Nneemher compared with the same
d,
$ �'@«@@Gthree
mnambs in 241119 is as sbo" a Who,:
l
Number of Ghic5
2Ul„il mop
September 22. 25
I" -
Oember 32 28
November 31 2s
@
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
'..
Source• city of Key West Port Operations
Reported bed hts. eoaeelaotts for key
'.,.
West were S834,355 fin' duly, up 1.2.%
O2008 O2007. 02008 02p49 02010
from dug} of V111% Since it's been nser
9Ytle year since The fourth peen} or lied
. .......
.. ...... ....... ....... ...... .....
....
lax was added, this month is ate nppi -tu
Key rarest Bed Tax Collections
apples cootparium for cullecahYns.
January 2006 - July 2010
For the first sheen months of 2010, lied
tax eolloeTions wire 57.6 toilhaTT. as
1,400,,000
Increase of34.4 from the same seven
—
man lhs in 2009,. The add.. fourth
1,2011,001)
4M Penny TeX. Implemented 6MI09
peonyof twtzr tax included is This antoant
°^ 1,0',000
is SIN million. Therefore, the first weven
rem doh
s
Y 800,@@@
a 5811,@00
i
4 {
i t i
ii
ly ( (
i
months adjnstevl this rent would
lx 55.7 million whieh is still 8.31 ahead
11f eke �r41 seven tmnuh'.!{Ir 2GG onan
adjustl basis.
a@@,m@a
All
According to SmithCraytl Research,
2@@,@@@
t i,
occupancy during this first seven months
I 1 1
1,
of20 H) wan ,'84.5%, an increase fram the
'{ - I ---
nrcopancy rnTr'of83.1l duo ehesamc
seven months in 2(109. `The .Average
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Daily time was ref oiled a1 �SZOI,95 her
Source' Monroe 'Cooney Tex Collector
thr same period it, 2010,up 7.1% from
the,ADR of SIH 48 posiod for thefdrst
❑2:@®6 ❑2007 1 20@f1 O2@t38 ■2Di@
seven months o1`2009..
Appraisal Comp m. o f KCe3 TT est Page 8
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
The following average daily two-way traffic data was provided by the State of Florida Department of
Transportation:
AVERAGE DAILY TRAFFIC COUNTS
66 iSR 3AJS 1, 100' N 7 Mile Bridge 1 11,600 i 12,800 15,(X)Oi 12,700i 13,800i 13,300i 13,300i 11,20014,800
65 iSR 3AJS 1, 3230' N Ch umel 3 Bridgei 11,700 11,8(l)11,500 10,500 10,800 12,300 12,300 10,200 9,900
45 i SR 3AJS 1, 200' N Key Vaca Bridge ' 22,000' 24,5(l0' 24,500' 22,000' 25,500' 24,000' 29,000' 25,(100 30,000
Currently there were no other hangars offered for sale within the Florida Keys Marathon Airport. There
are other hangars that are being offered for rent; however, there is about a two-year waiting list
according to Mr. Brian Schmitt. Furthermore, there were no listings included in the Florida Keys MLS
(Multiple Listing System).
Appraisal Compan.v o f Kce TT est Page 9
StsmmarvA77raisal Re7ort Hangar One &Marathon Flving Chsb Hangars, Marathon Air7ort
DEMOGRAPHICS
In terms of demographic trends taking place in the Middle Keys, within a 14-mile radius of the City of
Marathon has been compiled:
10600 Aviation Blvd, Marathon, FL 33050-3058
Ring: 12 miles radius
Prepared by Richard Padron
'.; summary
2000
2010
2015
Population
11,486
9,652
9,237
Households
5,,254
4,368
4,085
Families
3,130
2,554
2,355
Average Household Size
2.15
2.22
2.22
Owner Occupied Mousing Units
3,396
2,826
2,631.
Renter Occupied Housing Units
1,858
1,542
1,454
Median Age
45.3
49.3
51...1
Population
-1.28%
0,84 %
0.761Y.
hlousi Ihulds
-1.33%
0.83%
0.78%
Families
-1.61%
0.64%
0.64%
Owner HHs
-1.420Vo
0:89 /0
0.820/m
Median Household income
3,67%
2.34%
2.361/.
2000
2020
2015
Households by income
Number
Percent
Number
Percent
Number
Percent
<$15,000
965
18.5 k,
676
15.5%
543
13.3%
$15,000- $24,999
720
13.8%
512
11.79/.
396
9.71a
$25,000 $34,999
784
15.01Ic
552
12. 501:
415
10.2%
$35,000 • $49,999
870
16.7 10
692
15,8%
537
13.1%
$50,000 - $74,999
871
16.7%
859
19.7%
1,038
25.4%
$75,000. $99,999
461.
8.8%
493
11.31/.
460
11.3%
$100,000 - $149,999
240
4,6'rh
307
7.01
377
9.2%
$150,000- $199,999
135
2.6%
126
2.9%
152
3.7 %
$200,000+
171
3.3%
151
3.5%
167
4.1%
Median Household income
$37,036
$44,130
$52,843
Average Household income
$52,640
$60,923
568,350
Per Capita income
$24,332
$27,299
$30,594
2000
2010
2G,15
Population by Age
Number
Percent
Number
Percent
Number
Percent
0.- 4
445
3.9%
351
3.6%
320
3.5%
5-9
517
4.5%
368
3.7 /.
334
3.61A
10 - 1.4
596
5,21A
421.
4.3%
388
4,2%
is- 19
501.
4.4%
420
4.3°r
353
3.801
20 - 24
477
4.2%
413
4,2%
374
4.0%
25 - 34
1,268
11.0%
893
9.10/0
858
9.3%
35 - 44
1,872
15.3%
1,278
13.0 %
1,086
11.8 A
45 - 54
2,161
18.8%
1,856
18.8%
1,570
17.0%
55 - 64
1,585
13.8°y
1,839
18.70/
1,745
18.91rm
_.
65 - 74
-
1,205
-.
10.5'!0
_
1,205
12.2%
i,4i4
-
15.3%
75 - 84
592
fi.0 %
594
6.0%
586
6.3 V.
85+
167
1..5%
214
2.2%
207
2.2%
2000
2010
2019
Race and lithnlciiy
_.
Number
Percent
Number
Percent
Number
Percent
White Alone
10,559
91.4%...,
8,962
91.0f.....
8,336
90.2%....:
Black Alone
483
4.2%
420
4.3%
407
4.4%
American Indian. Alone
37
0.3%
37
0.4%
37
0.4
Asian Alone
50
0.4%
63
0.6%
70
0.811b
Pacific Islander Alone
4
0.0%
4
0.0 /
4
0.0%
Some Other Race Alone
205
1.8%
211
2.1%
223
2A
Two or Mare Races
148
1.3%
155
1. G0/.
160
1.7%
Hispanic Origin (Any Race)
2,143
18.7%
2,320
23.5%
2,447
26.5%
Data Note: Inccrne is expressed in current dollars
Source: U.S. Bureau; of the census, 2000 C.cnSus of POP Ll I ation and Housino. LSRI forecasts fear 2010 and 2.015.
February 23, 2011
Appraisal Comp in. o f Kce IT est Page 10
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
10600 Aviation Blvd, Marathon, FL 33050-3058
Ring: 12 miles radius
Trends 2010-2015
2.5-,
Ls-
U 5
75
c
x
-x 5
Population Households
Population by Age
Prepared by Richard Padron
tirea
state
DI USA
Owner MHs Median HH Income
U-4 `w-N I.U-14 15-19 zu-L4 d5 :S4 5b-44 49-:34 SJ-t4 b.i-/4 /S-U4 d"t
2070 Household Income 2010 Population by Race
V 5K -$99K
s crr . ¢2a. t l.'f 9ti
S i5K 549K
's'1%
5
12.6'fi x15K �i24x
5 LY45
WIK - $i1.4
$�SAk-$t49K
z,az
}2a3K-
3.sve
ar
V
9J
<AISk_
1�.59b
2010 Percert Hispanic Origin: 23.5%
2010
El 2015
Source: U.S, Bureau of the Census, 2000 Census of Population and Housing. 05R1 forecasts for 2010 and 2015..
February 23, 2011
Appraisal Comp in. gfKce ff est Page 11
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
MARKETING TIME
Based on sales of comparable commercial property in the subject's market area, we have estimated 2
to 6 months marketing time if listed within 5.0 percent of the appraised value. The marketing time
estimate is based on interviews of real estate agents and market time information for the comparable
property. This marketing time could be negatively affected by competition from similar facilities.
However, similar commercial properties are very marketable due to their desirable locations and limited
supply.
EXPOSURE TIME
Exposure time considers the amount of time necessary to effect a sale of the subject property on the
valuation date. In the case at hand, it is our opinion that the exposure time would be equal to the
marketing time, based on a listing price within 5.0% of our appraised value.
LEGAL DESCRIPTION
We have made an appraisal report with respect to the previously referenced subject property, from the
attached site plan, which is included as an addendum to this report. The subject properly is within the
Florida Keys Marathon Airport and a legal description was not provided.
OWNERSHIP
The subject property is a leasehold with Florida Keys Marathon Airport. The subject property is owned
by:
Monroe Counry Florida
500 Whitehead ,Street
Key West, Florida 33040
SALES HISTORY, CURRENT LISTING & SALES CONTRACT
The Monroe County Property Record Card does not show any sales history for the subject property, as
the property has historically been County -owned and operated as an airport. The subject property is not
listed for sale in the local MLS (Multiple Listing Service), nor is it currently under contract for sale and
purchase. According to an Agreement for Sale and Assignment, there was a sale of the leasehold
Appraisal Compan.v o f Kce TT est Page 12
StsmmarvA��raisal Report Hangar One &Marathon Flying Chsb Hangars, Marathon Airport
interest, of the west bay of the Hangar One leased property, on October 1, 2010 for a purchase price of
$15,000.
ZONING
According to the City of Marathon Comprehensive Plan the subject property is zoned [A] Airport
District.
Airport District: The principal purpose of the Airport District land use category is to provide for the
landing and take -off of aircraft, both public and private, and to provide for their storage and maintenance
and the appurtenant area which is used for airport buildings or other airport facilities, rights -of -way, or
other appropriate public uses. Residential uses are not permitted.
The subject property is a legal conforming use with respect to use. Otherwise, the subject property
appears to meet all zoning requirements.
UTILITIES
The subject property is serviced by public water and electric utilities. There is an individual electric
meter and water meter at each of the two hangars. There were no bathroom facilities within the subject
hangars. Florida Keys Marathon Airport provides public restrooms and commercial space.
REAL ESTATE TAX ASSESSMENT AND BURDEN
The subject parcel is a very small portion of the total 95.42 acre Florida Keys Marathon Airport and is
not split -out. The subject improvement is included on the Monroe County Property Card for the airport
but have not been split -out as separate parcels. As a result, this analysis is not applicable in the case at
hand.
DESCRIPTION OF THE SUBJECT PROPERTY
Site Anal The appraisers relied upon the dimensions provided in the site plan attached to the
Master Lease as Exhibit "A" attachment. The subject property consists of two detached airport shade
hangars that are leased from Florida Keys Marathon Airport. The hangars are located on the northeast
corner of the airport adjacent to Aviation Boulevard. The Hangar One hangar measures about 95 feet
along the taxiway by 32.5 feet in depth containing a total of 3,088 square feet and has two bays. The
second hangar leased to Marathon Flying Club measures 427.5 feet along the taxiway by 33.0 feet in
depth containing a total of 14,108 square feet and has nine bays. The site which is the subject of this
Appraisal Compan.v o f Kce TT est Page 13
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
report is a small portion of a larger parcel commonly known as the Florida Keys Marathon Airport
owned by Monroe County. A summary of the two leases is included in the Income Approach section
of this report. The total site area foot print of the subject property is 17,196 square feet per site plan.
Hence, the average size per shade hanger is 1,563 square feet. A site plan is included in the Addendum
section of this report.
If and when a survey is made available and any discrepancies are noted due to site size, easements
and/or encroachments subsequent to this valuation, we reserve the right to change the final indicated
values herein. No responsibility is taken for the accuracy or questions concerning boundaries, encum-
brances, or encroachments.
Access: The subject property may be accessed by U.S. Highway No. 1, Overseas Highway, the main
highway that provides access into and out of the Florida Keys. The Overseas Highway is a four -lane
two-way thoroughfare that extends the South Florida mainland to Key West. There is a deceleration
lane leading into the parking lot at the main terminal. The subject hangars are located within a secured
fenced -in area which requires access thorough airport security. The subject property may also be access
from Aviation Boulevard; however, due to airport security this access has been restricted.
Easements/Encroachments: The above described site plan of the subject property did not indicate any
encroachments or easements. However, the subject property is part of a larger tract; thus, has common
ownership. The reader is advised to review the copy of the site plan within the Addenda section of this
report. No responsibility is taken by this office for the accuracy or in regard to any questions on the
nature of encroachments, encumbrances, or dissimilarities in measurement. We reserve the right to
change the final indicated value herein if and when any discrepancies are found in regard to easements
and/or encroachments.
According Mr. Jim Anderson of the Tallahassee, Florida Division of the United States Census Bureau,
Monroe County is not divided into Census Tracts; but rather `Block Numbering Areas." The subject
property is located within Block Number 9710.
The site is in a Special Flood Hazard Area, specifically Zone AE, Elevation T to 8', according to Federal
Emergency Management Agency Flood Insurance Rate Maps of Monroe County, Florida, City of
Marathon, Map Number 12087C1381K, dated February 18, 2005. There was no survey of the subject
hangars that indicate the finished floor elevations. The subject improvements are built on grade and do
not appear to meet FEMA elevation requirements.
An Elevation Certificate for the subject stricture was not made available for the subject hangars.
However, the subject stricture was built on government land, prior to the inception of FEMA
regulations. Hence, it is assumed that they do not meet FEMA regulations.
Appraisal Compan.v q f Kce TT est Page 14
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
Improvement Anal The appraisers performed a site visit and personal walls through examination
of the subject improvements with some measurements taken on -site, as well as the measurements taken
from the site plan provided that was included in the Lease as Exhibit "A" attachment. The subject
improvements consist of some metal columns with metal beams and wood frame rafters, airplane
hangars.
The following description of the improvements was based upon a site visit of the shade hangar
buildings.
Subject Property Description
Florida Keys Marathon Airport
Hangar Type "
Tenant Size SF Hangar
No.
Ba s
Hanger One
1 3,0881
Shade
1
2
Marathon FIN -in Club
1 14,1081
Shade
1
9
Totals: 17,196
11
Hangar One & Marathon Flying Club Shade Hangars, Florida Keys Marathon Airport
Element `
Description
Basic Structure:
One -Stop- Steel Frame with Wood Rafters, Free Span, Hangars
13.7 Feet Height at the apex
Gross Building Area:
Reference Above
Use:
Airplane Hangar
Year Built:
Unknown
Foundation & Floor Structure:
Concrete Footer Foundation with Slab on Grade
Exterior Walls:
None
Exterior Doors:
None
Windows:
None
Roof Structure & Cover:
Metal Frame with Wood Purlins with Metal Panels
Floor Finish:
Concrete Slab
Interior Walls:
None
Interior Ceilings:
Open Wood Purlins with Metal Roof Panels
Electric Service:
Appeared Adequate 60 Amp. Sen-ice
Condition of Roof: The subject strictures were in average to fair condition. Neither a roof
nor structural inspection reports were made available. The appraisers do
not assume the responsibility for the condition of the roofs, nor the
physical condition of the strictures without the benefit of an engineering
report.
Appraisal Compan7i o f Kce TT est Page 15
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
Fixtures &
Equipment: This valuation does not consider any personal property.
Construction Quality: Average
Improvement Condition: Fair to Average
Building Age: Actual Age: Unknown
Effective Age: 20-25 Year
Economic Life: 30 Years
Remaining Economic Life: 5-10 Years
Parking: The subject property has adequate on -site parking plus the adjacent
airport parking lot.
Environmental Issues: Environmental screening or audits of the subject property were not made
available to the appraisers. Upon inspection of the property, no visible
signs of environmentally hazardous materials were noted. The subject
property is not listed on the Super -Fund List published by the
Environmental Protection Agency; therefore, the appraisers do not know
of any environmental hazards on the property. The appraisers are not
experts in the field of environmental hazards. An expert in the field is
recommended if desired, as no environmental tests were made by the
appraisers.
ADA Compliance: The Americans with Disabilities Act ("ADA") became effective January
26, 1992. The restaurant stricture was built in 1980's and may not meet
ADA standards. However, the appraisers have not made a specific
survey or analysis of this property to determine whether or not it is in
conformity with the various detailed requirements of the ADA. The
appraisers are not contractors and are not qualified to make a
determination if the building adheres to the requirements. The property,
together with a detailed analysis of the requirements of the ADA, could
reveal that the property may or may not be in compliance with one or
more of the requirements of the Act. If so, this fact could have an effect
upon the value of the property.
Appraisal C'ompato o f Kce TT est Page 16
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
Lot Coverage Ratios: Not Applicable
Floor Area Ratio: Not Applicable
Appraisal Compan.y o f Kce TT est Page 17
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
HIGHEST AND BEST USE
In order to estimate the Highest and Best Use of the subject property, the appraisers have considered
those uses that are physically possible, legally permissible, maximally productive, and financially
feasible.
"As If Vacant": According to the site plan provided, the subject site contains a total of 17,196 square
feet, which is part of a larger tract within the Florida Keys Marathon Airport. The current zoning
regulations have no minimum lot size requirement. The subject site appears to meet all the zoning
criteria. Based on the current zoning, coupled with the limited number of sites in the subject's area, our
opinion is that if the site were vacant and available, the Highest and Best Use would be for support
services or airport ancillary uses with maximum utilization of the parcel.
"As Improved": The existing improvements make a substantial contribution to the total property in
excess of the value of the site. Hence, the existing airport ancillary use, shade hangar improvements
represent the Highest and Best Use of the site, as improved, as of the date of this report. The subject
is currently a legal conforming use.
Appraisal Compan.v o f Kce TT est Page 18
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
SCOPE OF WORK
APPRAISAL DEVELOPMENT AND REPORTING PROCESS
There are three typical approaches to value to consider in each appraisal assignment. The three
traditional approaches to value are the Cost Approach, the Sales Comparison Approach and the Income
(Direct Capitalization and/or Discounted Cash Flow) Approach. The three approaches to value are not
always applicable to the assignment; however, the three approaches to value are always considered. The
appraisers performed a summary appraisal report, as defined by the Uniform Standards of Professional
Practice.
Data relevant to each of the approaches is developed and analyzed to produce a value from each of the
approaches. Each of the approaches utilizes data that is gathered from the market place. Items of both
similarity and dissimilarity in comparable properties are analyzed and adjustments are made for the
differences.
All appraisals begin by identifying the subject property (property to be appraised) and the appraisal
problem. Data relevant to the subject property is obtained from various sources including but not
limited to: the Monroe County Tax Assessor's Office, surveys, building plans and specifications and
the property owner. If possible, more than one source is utilized to confirm information. Improvements,
if applicable, are inspected and measured by the appraisers. If and when building plans or sketches are
made available, the measurements are verified for accuracy. Land size is based on recorded plat maps,
Monroe County public records, legal descriptions or surveys (when available). The local geographical
market was researched and analyzed.
The appraisers describe the building improvements in detail, if applicable; these descriptions are based
on a walls through and/or plans and specifications, if available. The appraisers are not contractors nor
structural engineers; therefore, stricture soundness or damage cannot be warranted. The appraiser will
note any apparent or potential problems such as deferred maintenance, water damage or spalding.
Exterior site visits of the comparable improved sales are always made; interior walls -through visits are
made when possible, if applicable. Sales prices for the comparable sales are obtained from the public
records or other sources available. Prices are customarily confirmed with a party to the transaction, i.e.,
buyer, seller, closing agent/attorney, or real estate agent. The public records are researched for
mortgage terms and information when available.
The comparable sales are researched utilizing First America Real Estate Solution and Realist.com,
(FARES), Rapattoni a computerized MLS (Multiple Listing System). All sources use data from the
Monroe County Property Appraiser's Office, as well as, from the public records. The data is verified
and compiled into sale sheets located within this report. Additional data sources include: newspaper
clippings and the National Multiple Listing Service. Real estate agents in the market area are
Appraisal Compan.v o f Kce TT est Page 19
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
interviewed for the most current information on sales and listings. All of the information is analyzed
in preparing the report and is utilized in supporting the indicated value. In the case at hand, the sales
of these hangars are transferred as personal property and the leases are not recorded in the public
records.
In preparing this appraisal, the appraisers conducted a site visit of the subject property. Information on
the comparable airport hangars were gathered, confirmed, and analyzed.
The subject property, as of right, has limited use predominately for airport support services. Land prices
have risen rapidly due to restrictions of the Monroe County building codes, permitting process and
scarcity of undeveloped land sites thereby distorting the values of the any vacant site. The Cost
Approach was not considered applicable, because the assignment is to determine the leasehold interest.
In this case, the Sales Comparison Approach was not considered in estimating the leasehold value of
the existing lease for the subject property, due to the lack of leasehold sales, as only two sales could be
documented. The Income Approach was considered applicable and the most reliable, as the subject is
a leasehold interest with Monroe County, Florida Keys Marathon Airport. Information on comparable
rentals was gathered, confirmed, and analyzed. The appraisers did analyze the subject property in terms
of its market value by the Income Approach using the Discounted Cash Flow Analysis, as the subject
property is encumbered by a long term lease.
Finally, the applicable indicated values developed by the approaches, are reconciled to produce the final
estimate of value. There was only one comparable leasehold sale; hence, the Sales Comparison
Approach was not deemed applicable. Thus, the value indication by the Income Approach for the
subject property was totally weighted in the final reconciliation. A brief description of each of the
approaches and valuations follows.
This is a summary appraisal report which is intended to comply with the reporting requirements set forth
under Standard Rule 2-2(b) of the Uniform Standards of Professional Appraisal Practice for a summary
appraisal report. This summary appraisal report is a brief recapitulation of the appraiser's analyses and
conclusions. Supporting documentation is retained in the appraiser's file.
Appraisal Compan.y o f Kce TT est Page 20
StsmmarvA��raisal Report Hangar One &Marathon Flying Chsb Hangars, Marathon Airport
SUMMARY OF ANALYSIS AND VALUATION
COST APPROACH
The Cost Approach is based on the principle of substitution, the belief that a purchaser would not pay
more than the cost of acquiring a similar site plus the cost of constriction of a replica or similar
stricture. The Cost Approach is based on the understanding that market participants relate value to cost.
In the Cost Approach, the value of a property is derived by adding the estimated value of the land to the
current cost of constricting a reproduction or replacement for the improvements and then subtracting
the amount of depreciation (i.e., deterioration and obsolescence) in the strictures from all causes.
Incentive for coordination by the entrepreneur is included in the value indication. This approach is
particularly useful in valuing new or nearly new improvements and properties that are not frequently
exchanged in the market. Cost Approach techniques can also be employed to derive information needed
in the Sales Comparison and Income Approaches to value.
The current costs to constrict the improvements can be obtained from cost estimators, cost estimating
publications, builders and contractors. Depreciation is measured through market research and the
application of specific valuation procedures. Land value is estimated separately in the cost approach.
The land value is determined by analyzing recent sales of vacant tracts within the subject's market area.
Cost Analysis:
Typically, the Cost Approach can be employed when valuing similar use properties. In the case at hand,
the subject property is a leasehold estate of private airplane shade hangars, a long-term land lease.
Hence, we have deemed the Cost Approach not to be applicable as the land is not owned in Fee Simple.
Appraisal Compan.v o f Kce TT est Page 21
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
THE SALES COMPARISON APPROACH
The Sales Comparison Approach is an appraisal technique in which the market value estimate is based
on the prices paid in actual market transactions and current listings. The actual transaction will fix the
lower limits of value in a static or advancing market and higher limit in a declining market. It is a
process of correlation and analysis of similar properties that recently sold in the subject's market area.
This approach is based upon the principal of substitution; that is, when a property is placed in the
market, its value tends to be set at the cost of acquiring an equally desirable substitute property,
assuming no costly delays in making the substitution. The Sales Comparison Approach bases its value
indication on sales of other similar properties in the area. These sales are analyzed and compared to the
subject property. The Sales Comparison Approach bases its value indication on recent leasehold sales
that are pertinent to the value of the subject property. In the case at hand, there was only two sale of a
leasehold interest could be documented. Though these sales were analyzed, there was not sufficient data
in the market to consider the Sales Comparison Approach reliable in valuing. However, these sales were
considered in support of the value indicated by the Income Approach.
Discussion of Comparable Hangar Sales: According to interviews with hangar owner and existing
tenants at the Marathon Airport, there is a great demand for hangar because of the limited supply. It was
reported that their may be as much as a two year waiting list for hanger space. Hence, it appear that
because of the lack of hanger space, prospective tenants will pay above market in order to secure a
hangar. It appears that a very similar condition exist at the Key West International Airport, as well as
other airport FBO's interviewed in South Florida. For instance, at Key West International Airport
exiting T-hangars consisting of 1,447 square feet, have sold for $160,000, and a 3,000 square foot
rectangular hangar sold for $500,000 in 2009. However, these leasehold's had about 28 to 30 years
remaining.
Appraisal Compan.v o f Kce TT est Page 22
StsmmarvA��raisal Report Hangar One &Marathon Flying Chsb Hangars, Marathon Airport
THE INCOME APPROACH
The Income Approach to value presumes that a buyer will not pay more for the subject property than
the capitalized rental value attainable through ownership of the property. The buyer is willing to pay
the present value of what he considers those future benefits to be. This approach is considered to be the
strongest indicator of current fair market value when the property is purchased as an income -producing
property having a reliable historical cashflow. In the case at hand, the Leasehold Values, present value
of the existing leases is most accurately indicated by this approach.
In the Income Approach, the Discounted Cash Flow Technique was utilized; the income analysis is
based on the existing lease terms until expiration. The Discounted Cash Flow Technique takes into
consideration the timing, frequency and magnitude of the income stream the property is expected to
generate. This method is most appropriate for evaluation of the present value of the existing leasehold
interest. In our Discounted Cash Flow, the analysis is based on the remaining holding period of the
lease term.
For the subject property, estimates are made of the gross income the subject property might generate.
Then, estimates are made of vacancies and expenses which, when deducted from the property's gross
potential income, result in the anticipated net operating income to be received during the projected
holding period. This income stream is then discounted to a present worth at a rate commensurate with
other investment alternatives in the market.
The Income Approach was weighted totally in the final indicated Leasehold Value for the subject
hangars. The leasehold interest is based truly on the net income that the subject property could generate
during the remaining term of the lease. There is no revision value as at the end of the lease the
improvements revert back to the lessor, Marathon Airport. Furthermore, in the case of the Hangar One
lease, the lessee must remove the existing hangar from the premises.
The subject property consists of a total of eleven (11) airplane shade hangar bays located within the
Florida Keys Marathon Airport. The two leases terminate in 6.21 and 6.78 years, respectively, according
to the lease terms. At the end of the lease term, the existing hangar has no residual value to the tenant,
as it reverts back to the Florida Keys Marathon Airport or must be removed by the tenant. The leased
fee value of the existing lease is about 68 to 77 percent of the market value of the leasehold. The reason
that the leasehold is so valuable is because of the inelastic supply and great demand for private and small
airplane hangars and storage.
1. Rental Income Analysis:
In analyzing the subject's potential rental income, we have researched rental data for
comparable hangars within the market area in order to project market rents. Market rents
and terms for the subject are based on an analysis of current actual rents for similar com-
Appraisal Compan. ofKce TT est Page 23
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
parable rental properties within the airport. We have detailed the market data from our
investigation and analysis in order to furnish an estimate of the Fair Annual Market Rent for
the subject property, based on current comparable rental data.
Resume of Hanger Rentals
Marathon Airport
Rent Annual
Size of Plane Per Month Rent
Small Single Engine $500' $6,000
-------------------
Larger Single & T-,,-in Engine $6501 $7,800
Minimum $500 $6,000
Maximum $650 S7,800
Resume of Hanger Rentals
Hangar at Key West International Airport
Rent Annual
Size of Plane Per Month Rent
Small Single Engine $500!$6,000
---------------------------------------
Larger Single Engine 11 $70011 $8,400
-----------------r--------T------------
---- Turbo Prop i $1_200— $14,400
ret's $1,300 $15,600
Minimum $500 $6,000
Maximum $1,300 $15,600
Homestead General Avaition
T Hangers $650-$700
--------------- ------------------
Shade Hangers None
Kendall-Tamiami Executive Airport
T Hangers $850-$950
------ ----------------
Shade Hangers $400
North Perry General Aviation Airport
T Hangers $550-$650
------ ------------ =----
---------
Shade Hangers $265
Appraisal Comp in. o f Kce TT est Page 24
StsmmarvA��raisal Report Hangar One &Marathon Flying Chsb Hangars, Marathon Airport
Most airplane hangar spaces within the subject's airport are leased on a gross basis. In a
gross lease, the landlord is responsible for all expenses. The tenant does not share in any of
the landlords expenses. Though some of these comparable rentals are outside of the subject's
market area, all of the facilities indicated a limited supply of shade hangar units with strong
demand. Our research indicated that completely enclosed or "T" hangars were preferred by
the consumers, therefore, there is only a limited supply of shade hangars. Even though the
full hangars or "T" hangars are more expensive to rent, it appears that they are the airplane
owner's choice. Therefore, in our opinion, the rental data indicates the Fair Market Rent
which consumers are willing to pay for shade hangar storage facilities.
Summarizing the comparables rents listed above indicates a rental range for enclosed
airplane hangar space of $500.00 to $1,300.00 per space, depending on the type and size of
the aircraft. The comparable rental range for shade airplane hangar space is from $265.00
to $400.00 per space; nevertheless, historically one of the bays within the subject project
rented for $250.00 on a short-term bases. However, in analyzing these comparables one
must consider the plane size, location, as well as the amenities. The appraisers interviewed
hangar owners, as well as airplane owners within the local market to determine the fair
market rent for the subject shade hangars. Hence, the appraisers have estimated an average
rent of $275.00 per bay. The potential market rent for the subject property followings.
Potential Market Rent Analysis
and Effective Gross Income
Average Average Total
Effective
No. Monthly Annual Potential S /
Est. Gross
Description
Planes Rent/Plane Rent/Plane Rent S4 Ft.
Vacancy Income
Hanger One
2 111 $350.00 „ $4,200 $8,400 11 $2.72
$42i y $7,980
_ _
--- - -------1r------�r--------T-------T-----T------T--------
Marathon Flying Club �
9 $350.00 $4,200 � $37,800 � $2.68
` 1 89i y $35,910
Totals:
it $46,200
($2,310) $43,890
Vacancy and Collection Allowance: Vacancy & Collection losses include allowances for
vacancy due to tenant turnover or loss of rents from a tenant who vacates the building or is late
with payments. Typically, the market is experiencing a 3% to 10% vacancy and collection
losses on commercial units within the subject's market area. Due to the limited supply of
airplane hangar space within the Florida Keys Marathon Airport, we have projected a vacancy
and collection loss of 5.0% for the subject property.
2. Analysis of Existing Lease and Expenses:
The subject property consists of two separate land leases for each of airport shade hangars
from the Florida Keys Marathon Airport. This subject property's leases will terminate on
March 19, 2017 and October 10, 2017. The two shade hangars have a total of 11 bays, with
Appraisal Compan. ofKce TT est Page 2
StsmmarvA��raisal Report Hangar One &Marathon Flying Chsb Hangars, Marathon Airport
an average size of 1,563 square feet per bay which will accommodate a single engine or a
small twin engine aircraft. A personal walls through and site -visit of the subject property
was performed with measurement taken on -site by the appraisers, as well as utilizing the
provided site plan. Detailed descriptions of the improvements may be found within the
report. The lease payments are monthly. The sublessee's have a nonexclusive use of the
common area. The lessee's cannot transfer or assign its rights and obligation in the premises
or in the hangar without obtaining the consent of the lessor, which may not be unreasonably
withheld. Both of the leases are summarized in the table that follows.
Lease schedule Analysis
Florida Keys Marathon Airport
Contract Lease Schedule as of January 1, 2011
Remaining annual
Utilities
Hangar Type
No.
Lease
Monthly annual Rent/ Additional annual Hangar Ownership
Paid By
Option
HangerNo.
Size (SF) Hangar
Bays
Pears
Base Rent Base Rent Plane Rent Escalators Upon Expiration
Tenant
Period
1
1
1
1
I
I
3-Fhxe Year Tern;
Han¢er One
3088
Shade
6.'1
$'04 81
$145-.6-
$1_-8 84
None
CPI
Tenant LCss-
AU
'a Market Rent
Maraflion Flhvig Clnb
14,1081
Shade
1 9
1 0 -8
1 $99' 5
$11 910.84
1 $1 3'3.43
1 None
I CPI
Anpoi t'Lessor
All
None
Totals:
17,196
11
$1,197.38 $14,368.51 $2,552.26
A copy of both leases and current rent payments was provided by the client. The reported
lease rates are based on analysis of the base rates per the leases, historical changes in the
Consumer Price Index(CPI) and confirmed by Bureau of Labor Statistics CPI Tables. The
leases are on modified gross basis. In a modified gross lease, the tenant is responsible for
only the utilities and building maintenance. The Hangar One lease has three, five-year
option periods at market rent; hence, there will be no leasehold value during the option
period.
Discount Rate: It is the appraisers' opinion that a discount rate of 8.7 percent per annum
would be appropriate for discounting the net income to a present value. The discount rate
is based on a current base rate estimated by analyzing current safe rates for fairly risk -free
investments and adding to it a factor for liquidity, risk and appreciation. The discount rate
takes into account the providing of a return on and returns of investment fiends, and for
compensation to the developer for liquidity, risk and anticipated expected increase in rental
income.
Appraisal Compan. gfKCe3 TT-est Page 26
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
Apartments
7.027. 16.25% 11.68% 6.11%
'. 14.137.
10.16% '
6.95%
'. 16.08% 11.56%
Garden?Suburban TH
7.02X 14.99Z 10.89% 6.11X
13.04%
9.48%
6.951
14.84% 10.78X
Hi-RlseMrban TH
7.85% 16.25% 11.76z 6.83%
14.10%
10.23%
7.77%
16.08z 11.64%
Student Housing
7.61'!. 15.857. 12.07% 6.62%
13.79%
10.507.
7.53%
15.69% 11.95%
Goff
8.267. 19.63% 15.08% 7.19Z
17.08%
1312%
8.18%
19.43% 14.937.
Public Daily Fee Courses
9.44X 19.47Z 14.16% 8.22%
16.94%
12 32X .
9.351
19.28% 14.01%
Semi -Private Clubs
8.43% 19.63% 15.18z 7.33%
17.08z
10.201..
8.34%
19.43%. 15.02%
Private Clubs
8.26% 18.41% 14.56% 7.19%
16.01%
1266%
8.18%
18.22% 14.41%
Health CarelSenior Housing
7.487. 21.32% 12.13% 6.51%
18.55%
10.557.
7.41Z
21.11% 12.01%
Acute Care Facilities
8 51X 22.44Z 13.76% 7.41Z
19.53%
11.97%
8.431
22.22X 13.62X
Out -Patient Care Facilities
7.48% 16.05% 10.90z 6.51z
13.96z
9.48z
7.41z
15.89%. 10.79%
Congregate Care Facilities
8.37% 17.79% 11.95% 7.28%
15.47%
10 40%
8.28%
17.61% 11.83%
Assisted Living Facilities
7.69% 16.46'/. 11.10% 6.69%
14.32%
9 66%
7.61'/.
16.30% 10.99'!.
Industrial
8.07X 16.29Z 12.65% 6.781
13.68%
1063X
8.15Z
16.45% 12.781%
Warehouse7Oistribution
8.07% 14.14% 11.36z 6.78%
11.88%
9.54z
8.15z
14.29% 11.47%
R&D?Fles
8.43% 16.29% 13.06% 7.92%
13.68%
1097%
8.52%
16.45% 13.19%
Climate Controlled?Manufacturing
8.627. 15.647. 11.99% 7.24%
13.137.
10.077.
8.71E
15.79% 12.117.
Lodging
8.477. 19.16% 14.30% 7.117.
16.09%
12 01%
8.22%
18.58% 13.877.
Full Service Facilities
8.47% 14.64% 12.23z 7.11%
12.30z
10.27%
8.22%
14.20z 11.86z
Limited Service Facilities
8.87% 19.16% 14.73% 8.29%
16.09%
12 38%
8.58%
18.58% 14.29%
GoIFIGaming?Resort
8.357. 17.277. 12.27% 7.01E
14.50%
10 31%
8.10%
16.75% 11.917.
Mobile HomefRV ParkfCamping
8.227. 17.59% 12.30% 6.66%
14.25%
997%
8.22%
17.59% 12.307.
RV Parks?Campgrounds
9.03X 17.59Z 12.77% 7.321
14.25%
1034X
9.031
17.59% 12.771%
Manufactured Housing
8.22% 15.63% 11.40% 6.66%
12.66%
924%
8.22%
15.63% 11.40%
Mobile Home Parks
8.687. 16.137. 12.12% 7.03%
13.06%
9.82%
8.68%
16.137. 12.12%
Office
8.06% 15.69Z 12.64% 7.01Z
13.65%
1100%
7.98%..
15.54% 12.51%
Suburban
8.067. 14.497. 12.00% 7.01E
12.617.
10.447.
7.98%
14.35% 11.88%
CBD
8.32% 15.69Z 12.64% 7.24%
13.65%
1100%
8.24%..
15.54% 12.52%
Medical
8.48% 15.80% 11.49z..... 7.38%
13.74z
10.00%
8.39%
15.64z 11.38z..
Restaurants
8.22% 18.80% 14.98% 6.99%
15.98%
1273%
7.89%
18.05% 14.38%
Full Service
10.75'!. 18.807. 14.98% 9.13%
15.98%
12.737.
10.327.
18.05% 14.387.
Fast Food
8.22% 18.16Z 14.33% 6.99%
15.43%
1218%
TOW..
17.43% 13.76%
Retail
8.06% 16.64% 12.94z 6.93%
14.31%
11.10%
7.90%
16.31%.. 12.68%
Anchored
8.06% 15.45% 13.14% 6.93%
13.29%
1130%
7.90%
15.14% 12.88%
Un-Anchored
8.737. 16.647. 13.70% 7.51E
14.317.
1178%
8.56%
16.317. 13.42'!.
Convenience?Gas
801X 16.74Z 11.04% 6.891
14.39%
949%
7.851
16.40% 10.821%
Free Standing
8.40% 16.30% 13.55z 7.22%
14.02z
1165z
8.23%
15.97%. 13.28%
Self -Storage
7.53% 15.66% 14.15% 6.40%
13.31%
1203%
7.53%
15.66% 14.15%
Climate Controlled
7.537. 15.667. 13.18% 6.40%
13.317.
11.20%
7.53%
15.66% 13.18%
Mini Storage
7.53X 16.86Z 14.21% 6AW.
14.33%
12 08X .
7.531
16.86% 14.21%
Special Purpose
8.74% 19.22% 13.86z 7.52%
16.53z
1192z
8.57%
18.84z 13.58%
Schools?Day Care Centers
8.74% 16.76% 12.72% 7.52%
14.41%
10 94%
8.57%
16.43% 12.47%
Churches?TemplesOSynagogues
10.04'!. 19.227. 13.95% 8.64%
16.53%
1199%
9.84%
18.84% 13.67'!.
All Properties
7.021 22.44E 12.93,. 6.11X
19.53%
1104%
6.951 22.22X 12.76%
'4th Quarter 2010 Data
Copyright
2011 RcaltyRatc:.com ^
In the market, investors, including individuals, insurance companies, and specialty investors
companies are likely to seek a yield on a pre-tax basis from the subject which is at or above
the current rate for corporate (Baa) bonds. Some additional yield to the investor would be
expected for lack of liquidity, greater risk and appreciation in this investment. We estimated
6.0 percent as an appropriate base rate considering the added risk utilizing Prime Rate and
Bond yields investments. This rate is conservative, based on current bond rates.
Appraisal Compan. of Kee TT est Page 27
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
The indicated base rate is equivalent to that rate that covers all the income requirements
except provisions for added risk, liquidity factors and expected appreciation. The risk is a
compensation for a developer or investor to offset possible losses that may occur when an
investment fails to meet periodic expectations, or payback when analyzing a loan. The
liquidity and risk rates are considered to be load factors in estimating the indicated Discount
Rate. In the case at hand, due to the limited supply and the great demand, we have not
included a risk factor, although we have considered a liquidity factor of 1.0%, and an
expected average increase in rental income of 1.67% (Rounded 1.7%), which indicates the
following discount rate.
Base Rate 6.0%
Risk Factor 0.5%
Liquidity 0.5%
Appreciation 1.7%
Discount Rate 8.7%
Note: The inflation rate or appreciation rate estimates ivere obtained from 2010 Robert C. Sahr, Political
Science Department, Oregon State University, Corvallis, OR., based on 2020 projections.
Furthermore, this Discount Rate is supported by a national market survey for the 4t" Quarter
of 2010 prepared by RealtyRates.com for Land Leases for Special Purpose and Other
Properties in the survey as follows. Since the demand for private airplane storage is great
and there is limited supply, we have estimated a discount rate at the mid -level of the range
of data.
Apartments
2.86x
10.86Y
705Y
5.46Y
11.36Y
8.05/
Golf
3.36%
16.2W.
1027%
5.9W..
16.76/
11.27%
Health CaretSenior Housing
3.41/
12.21%
7 58'/-
6.96%
16.761
11.27%
Industrial
3.07%
10.88/.
732%
5.67Y
11.38x
8.32x
Lodging
3.31%
16 02Y
8 06'%.
5 91Y
16.52%
9.06Y
Mobile H omORV Park
3.06%
10.88%
8 09%
5.66%
11.38%
9.09%
Office
3.08x
10.84:.'
725/
5.66%
11.34%
8.25%
Restaurant
4.46:
16.28%
926%
7.06%
16.78%
10.26Y
Retail
2.98x
12.22x
745%
5.56%
12.72/
8.45%
Self -Storage
3.21%
10.8W.
947%
5.8W..
11.36r
10.47
Special P urpose
4.00%
16.94'Y
9.39/
6.62 x
18.71Y.
9 59%
All Properties
2.86Y
16.94Y
829%
5.46Y
16.78%
9.45Y
.4th Qaartcr 2010 data
Copyright 2011 RealtyRate:.corn "
Appraisal Compan.v o f Kce TT est Page 28
StsmmarvA��raisal Report Hangar One &Marathon Flying Chsb Hangars, Marathon Airport
Analysis of Cash Flows:
The remaining holding period of the subject's leases is 6.21 and 6.78 years. The present
value of the remaining lease term as indicated by the Discounted Cash Flow Technique is
equal to the sum of the present values of the cash flows for each unit.
The discount rate, often used interchangeably with the phrases internal rate of return or yield
rate, represents the time -weighted return a developer anticipates on a real estate investment.
This rate equates the present value of future receipts with the Market Value or Investment
Value of the investment. A discount rate of 8.7 percent was utilized in discounting the net
receipts or outlays to a present value for the remainder of the existing lease.
Our Discounted Cash Flow Analysis for each Leasehold Value of the Existing Leases is
detailed as follows:
Discounted Cash Flow Analysis
Hanger One
Leasehold
Value of Existing Lease
Periods
Est. Annual
PV
PV
Years
E.G.L
C.P.L Rent N.O.L
Factor
Leasehold
1
$7,980.001
$2,457.67 $5,522.33I
0.919961
$5,080.34
2 1 $8,091.721 1.40%1 $2,492.0811 $5,599.641 0.84633 $4,739.16
3
$8,221.19
$2,531.95 $5,689.24',
0.778591
$4,429.61
-- 4--- --
$8,352.73
_1.60%li_
1.60% $2,572.46 $5,780.261!
0.71628!---
$4,140.28
5 $8,486.37' 1.60% $2,613.62' $5,872.75: 0.65895' $3,869.85
6
$8,651.85
1.95% $2,664.591. $5,987.27',
0.606211
$3,629.54
2.5 Mo.!
$1,837.621
1.95%' $565.951 $1,271.67
0.59535
$757.09
(Rounded)
$27,000.00
Average Appreciation:
1.68%
Discount Factor
8.7%
Appraisal Compan. ofKce TT est Page 29
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
Discounted Cash Flow Analysis
Marathon Flying Club
Leasehold Value of Existing Lease
Periods
Est. Annual
PV
PV
Years
EGA C.P.>( Rent N.0.1(
Factor
Leasehold
1
$35,910.001 $11,910.841 $23,999_161_0.919961
$22,078.34
2
$36,412.741 1.40%; $_1_2,0_77.591 $24,335.151
0.846331
$20_,595.6_2
--- 3 --
l $36,995.34 1.60% $12,270.93 $24,724.51
0.77859
--- $19,250.37
4
$37,587.271! 1.60%1! $12,467.171 $25,120.101
0.716281
$17,992.99
. $38,188.67: 1.60%1 $12,666.641 $25,522.021 0.65895: $16,817.73
JL$38_9_33.341 1.95%1 $_1_2,913.641 $$26,019.701_0.606_211
_6
-- 9.4 Mo. 'I $31,092.49 1.95% $10,312.9411 $20,779.5511
0.568261i---
_$15,,77_3.3_9
$11,808.13
(Rounded)
$124,000.00
The following table is a summary of the estimated leasehold values:
Valuation Summary
Florida Keys Marathon Airport
6400 Overseas Highway, Marathon, FL
January 1, 2011
Estimated
Leasehold Dollars / Dollars /
Description Value Bay S . Ft.
Hang One _ $27,000 _ $13,500; $8.74
Marathon Flying Club $124,000! $13,778 $8.79
Total $151,000 $13,727', $8.78
PRESENT VALUE OF THE LEASEHOLD INTEREST OF THE SUBJECT PROPERTY AS INDIC:ATED BY
THE INCO1\1E APPROACH (Rounded): ................................. $ 151,000
Appraisal Compan. ofKce TT est Page 30
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
RECONCILIATION AND VALUE CONCLUSION
The following Leasehold Interest value indications have been developed in our analysis of the Market
Data.
Cost Approach Not Applicable
Income Approach $151,000
Sales Comparison Approach Not Applicable
Value of the Leasehold Interest of the Subject
Property, as of January 1, 2011 (Rounded): $151,000
The Cost Approach is based on the estimated value of the land (developed through comparison), and
the estimated cost of the site improvements. This approach is particularly useful in valuing new or
nearly new improvements. However, this approach was not considered applicable as the subject
property being valued is a leasehold interest.
The Sales Comparison Approach is a direct measure of the buying and selling behavior of the partici-
pants in the real estate market. This approach directly measures what sellers are accepting and buyers
are paying for property. Therefore, if a significant number of comparable sales have occurred and are
available for analysis, then the Sales Comparison Approach becomes an important method in developing
a value indication. Our analysis of leasehold comparables of airport hangars at Florida Keys Marathon
Airport, only indicated one sale; furthermore, there is a very limited supply. Thus, the Sales
Comparison Approach was not considered applicable in our final opinion of value of the leasehold
interest, as the subject property is under the long term lease.
The Income Approach is most applicable to properties that are typically purchased for their income -
producing capabilities. In the case at hand, the subject property is a public service or commercial use
property with the potential of being an income -producing property. Thus, the Income Approach
represents the value an owner may consider paying in order to gain the benefits and profits of the
business, as well as that of the real estate. The Discounted Cash Flow Technique takes into
consideration the timing, frequency and magnitude of the income stream the property is expected to
generate. This method is most appropriate for evaluation of the present value of the leasehold interest
considering the existing lease encumbering the subject property. In our Discounted Cash Flow model,
the analysis is based on the remaining term of the existing lease of the subject airplane hangar. The
Income Approach was considered applicable as the subject property is currently under a long term lease.
Appraisal Compan. gfKce TT est Page 31
StsmmarvA��raisal Report Hangar One &Marathon Flying Chsb Hangars, Marathon Airport
Furthermore, our assignment is to determine the Leasehold Interest of the subject property. Hence, the
Income Approach was totally weighted, since the airplane hangars at Florida Keys Marathon Airport
are encumbered by long term leases.
CERTIFICATE OF APPRAISAL
WE HEREBY CERTIFY THAT UPON APPLICATION FOR VALUATION BY:
MR. REGGIE PAROS, MANAGER
FLORIDA KEYS MARATHON AIRPORT
9400 OVERSEAS HIGHWAY, SUITE 200
MARATHON, FL 33050
We have personally examined the following described property:
COMMONLY KNOWN AS: Hangar One & Marathon Flying Club Shade Hangars
9400 Overseas Highway
Marathon, Florida 33040
Based on market analysis and research, it is our opinion that the Leasehold Interest of the subject
property, commonly known as the Hangar One & Marathon Flying Club Hangars, located at Florida
Keys Marathon Airport, 9400 Overseas Highway, Marathon, Florida, subject to definitions, assumptions
and limiting conditions, as of January 1, 2011 is:
ONE HUNDRED FIFTY ONE THOUSAND DOLLARS
($ 151,000)
This valuation of the subject property does not consider any personal property.
Appraisal Compan.v o f Kce TT est Page 32
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
WE ADDITIONALLY CERTIFY that, to the best of our knowledge and belief:
o The statements of fact contained in this report are true and correct.
o The reported analyses, opinion, and conclusions are limited only by the reported assumptions
and limiting conditions, and are our personal, impartial, and unbiased professional analyses,
opinions and conclusions.
o We have no bias with respect to the property that is the subject of this report or to the parties
involved with this assignment.
o Our engagement in this assignment was not contingent upon developing or reporting
predetermined results.
o Our compensation for completing this assignment is not contingent upon the development or
reporting of a predetermined value or a direction in value that favors the cause of the client, the
amount of the value opinion, the attainment of a stipulated result, or the occurrence of a
subsequent event directly related to the intended use of this appraisal.
o Our analyses, opinions, and conclusions were developed and this report has been prepared in
conformity with the Uniform Standards of Professional Appraisal Practice.
o Richard Padron and James E. Wilson personally performed a site visit and a walls through of the
property that is the subject of this report.
o No one has provided significant professional assistance to the persons signing this report.
o The use of this report is subject to the requirements of the State of Florida relating to review by
the Florida Real Estate Appraisal Board of the Department of Professional Regulations, Division
of Real Estate.
o The reported analyses, opinions and conclusions were developed, and this report has been
prepared, in conformity with the requirements of the Code of Professional Ethics and the
Standards of Professional Appraisal Practice and the Appraisal Institute.
Appraisal Compan.v o f Kce TT est Page 33
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
o The use of this report is subject to the requirements of the Appraisal Institute relating to review
by its duly authorized representatives.
o James E. Wilson, MRIC S has completed the Standards and Ethics education requirements of
the Appraisal Institute for an Associate Member.
APPRAISAL COMPANY OF KEY WEST
James Wilson, MRIC S, President
St. Cert. Gen. REA
License No. RZ 2164
Richard Padron, CCIM, MSA
St. Cert. Gen. REA
License No. RZ 544
Appraisal Compan.v o f Kce TT est Page 34
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
ASSUMPTIONS AND LIMITING CONDITIONS
APPRAISAL DEVELOPMENT AND REPORTING PROCESS: In preparing this appraisal, the
appraiser inspected the subject site and both the exterior and interior of the improvements. Information
on comparable land and improved sales were gathered, confirmed, and analyzed. This is a summary
appraisal report which is intended to comply with the reporting requirements set forth under Standard
Rule 24(b) the Uniform Standards of Professional Appraisal Practice for a summary appraisal report.
As such, it might not include frill discussions of the data, reasoning, and analyses that were used in the
appraisal process to develop the appraiser's opinion of value. Such discussion of the data would not
change the appraisers' opinion of value. Supporting documentation concerning the data, reasoning, and
analyses is retained in the appraiser's file. The information contained in this report is specific to the
needs of the client and for the intended use stated in this report. The appraiser is not responsible for
unauthorized use of this report.
In preparing this appraisal, the appraisers visited the subject site and a physical walk-through of the
improvements. Information on comparable improved sales and rentals was gathered, confirmed, and
analyzed.
The appraisers performed a summary appraisal report, as defined by the Uniform Standards of
Professional Practice. This summary appraisal report is a synopsis of the appraisers' analyses and
conclusions. Supporting documentation is retained in the appraisers' file.
THIS VALUATION IS CONTINGENT UPON THE FOLLOWING CONDITIONS:
Our office has not appraised the subject property in the past three years.
Neither all nor any part of the contents of this report (especially any conclusions as to value, the identity
of the appraiser, or the firm with which the appraiser is connected) shall be disseminated to the public
through advertising, public relations, news, sales or other media without the prior consent and approval
of the appraiser.
This appraisal is to be used in whole and not in part, in particular, no part of the contents of this report
shall be conveyed to the public through advertising, public relations, news, sales or other media, without
the written consent and approval of the author, particularly as to valuation conclusions, the identity of
the appraiser or firm with which he/she is connected.
The distribution of value between land and building applies only under the present program of
utilization and is invalidated if used in making a summation appraisal.
No responsibility is assumed by us for matters which are of legal nature, nor is any opinion on the title
rendered herewith. Good title is assumed as a title search was not made available.
Appraisal Compan. ofKce TT est Page 35
StsmmarvA��raisal Report Hangar One &Marathon Flying Chsb Hangars, Marathon Airport
The property has been appraised as though free of liens and encumbrances, except as herein described.
Charges for solid waste collection are a special assessment in Monroe County; delinquent charges for
solid waste collection, or other liens against the subject property have not been considered in the
valuation contained herein as a title search was not made available or conducted by us.
The management of the property is assumed to be competent and the ownership in responsible hands.
The subject property consists of two detached airport shade hangars leased from the Florida Keys
Marathon Airport. The hangars are located on the northeast corner of the airport adjacent to Aviation
Boulevard. The Hangar One hangar measures about 95 feet along the taxiway by 32.5 feet in depth
containing a total of 3,088 square feet and has two bays. The second hangar leased to Marathon Flying
Club measures 427.5 feet along the taxiway by 33.0 feet in depth containing a total of 14,108 square feet
and has nine bays.
The subject hangars consist of a total of 17,196 square feet which is a vary small part of northeasterly
section of the Florida Keys Marathon Airport owned by Monroe County. According to the Monroe
County Property Card the subject property is only a very small part of a larger 67.50 acre parcel,
commonly known as the Florida Keys Marathon Airport. For purposes of our valuation within this
report, we have utilized the dimension taken from the site plan with on -site verification. The site plan
is included in the Addendum section of this report. The leasehold interest in the subject property
includes the use of the common area identified as the Marathon Airport. Any deviations from these
sizes may result in a change in value.
No encroachments or easements were taken into consideration as a survey was not made available. The
reader is advised to review the copies of the site plan located within the Addenda section of this report.
No responsibility is taken by this office for the accuracy or in regard to any questions on the nature of
encroachments, encumbrances, or dissimilarities in measurement. We reserve the right to change the
final indicated value herein if and when any discrepancies are found in regard to easements and/or
encroachments.
This report contains the results of our investigation and analysis made in order to fiirnish an estimate
of the Leasehold Interest of the subject property described herein, based on the Highest and Best Use.
Any maps or plats reproduced and included in this report are intended only for the purpose of showing
spatial relationships. They are not measured surveys nor measured maps, and no responsibility for
cartographic or surveying errors is assumed.
We are not required to give testimony in court unless arrangements have been previously made thereof.
Appraisal Compan. of Kce TT est Page 36
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
We assume that there are no hidden or unapparent conditions of the property, subsoil, or strictures,
which would render it more or less valuable. We assume no responsibility for such conditions, or for
engineering which might be required to discover such factors.
The Americans with Disabilities Act ("ADA") became effective January 26, 1992. The subject
improvements were built in 1996; thus, the appraisers have assumed that they meet ADA standards.
However, the appraisers have not made a specific survey or analysis of this property to determine
whether or not it is in conformity with the various detailed requirements of the ADA. The appraisers
are not contractors and are not qualified to make a determination if the building adheres to the
requirements. The property, together with a detailed analysis of the requirements of the ADA, could
reveal that the property may or may not be in compliance with one or more of the requirements of the
Act. If so, this fact could have an effect upon the value of the property.
No roof or termite inspection reports were made available; however, the improvements are relatively
old and in average to fail condition. The appraisers do not assume the responsibility for the condition
of the roofs, termite damage, nor the physical condition of the strictures without the benefit of an
engineering report.
Disclosure of the contents of the appraisal report is governed by the Bylaws and Regulations of the
professional appraisal organizations with which the Appraisers are affiliated.
The undersigned Appraisers have no present or contemplated future interest in the property and the
compensation is in no manner contingent upon the value reported.
Possession of this report does not carry with it the right of publication or advertisement of any of its
conclusions, nor may any except the applicant use the same for any purpose without the previous written
consent of the appraiser or the applicant.
In this appraisal assignment, the existence of potentially hazardous material used in the constriction or
maintenance of the building, such as the presence of radon, asbestos insulation and/or existence of toxic
waste, which may or may not be present on the property, has not been considered. Environmental
screening or audits of the subject property was not made available to the appraisers. Upon inspection
of the property, no visible signs of environmentally hazardous materials were noted. The appraisers are
not experts in the field of environmental hazards. An expert in the field is recommended if desired, as
no environmental tests were made by the appraisers.
This appraisal report has been made in conformity with and is subject to the requirements of the Code
of Professional Ethics and Standards of Professional Conduct of the appraisal organizations with which
the Appraisers are affiliated.
Appraisal Compan. ofKce TT est Page 37
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
This appraisal report is in conformity with the Uniform Standards of Professional Appraisal Practices
and this appraisal assignment was not based on a requested minimum valuation, a specific valuation,
or the approval of a loan.
The discovery of latent conditions is beyond the scope of this appraisal. Detection of latent conditions
requires the expertise of qualified persons such as architects and engineers. Latent conditions include,
among other things, non -apparent structural conditions; presence of prohibited hazardous wastes;
presence of radon gas, methane gas, asbestos, lead, petroleum products and other air, soil, or water
contaminants; and many other conditions too numerous to mention which may affect the value of the
property being appraised. The appraisers conducting this appraisal are not qualified to detect latent
conditions and have conducted this appraisal upon the assumption that no latent conditions (including
those mentioned above and others) exist on the property covered by this appraisal.
ACCORDINGLY NOTICE IS HEREBY GIVEN that neither the appraisers conducting this appraisal,
nor the APPRAISAL COMPANY OF KEY WEST make any warranty, express or implied, to property
covered by this appraisal, and neither shall have any liability to any person for differences in the value
of the appraised property, or other damages, resulting from discovery of latent conditions (including
those mentioned above and others) on, or in proximity to, the appraised lands.
We do hereby certify that to the best of our knowledge and beliefs, the statements of fact contained in
this report, upon which the analyses, opinions and conclusions expressed herein are based, are true and
correct; also this report sets forth all the limiting conditions affecting the analyses, opinions and
conclusions contained in this report; also this report has been made in conformity with the National
Association of Real Estate Boards and the Appraisal Institute.
Appraisal Compan.v o f Kce TT est Page 38
StsmmarvA��raisal Report Hangar One &Marathon Flying Chsb Hangars, Marathon Airport
Professional Qualifications
Richard Padron, CCIM, MSA, AAR, SRC
Richard Padron has a diverse background in the real estate industry. His experience and education in the real estate profession
have continually excelled. He has been affiliated in residential construction, real estate development and the real estate brokerage
business for more than 30 years. During this time, he has managed construction projects, marketed, and sold several hundred
homes in various subdivisions in the Florida Keys and Key West, and has appraised thousands of single families, multi -family
and comrnercial properties. His real estate career has involved the entire development process from acquisition to project sellout,
including the permitting and operation of wastewater treatment systems, as well as dealing with environmental concerns.
Prior to founding the firm, Appraisal Company of Key West, Inc., Mr. Padron formed the corporation of Richard Padron &
Associates, Inc., a real estate brokerage corporation. These corporations have been in existence since 1984, providing all types
of real estate services, including brokerage; market, financial and investment analysis; expert witness testimony; appraisals;
property operation review, and planning and feasibility analysis.
Education: Real Estate Certificate from Florida Keys Community College
Professional
Activities: MSA:Master Senior Appraiser, (1984). Certificate No. 00883.
CCIM:Certified Cominercial-Investment Member, (1986). Certificate No. 2765.
AAR:Accredited in Appraisal Reviewer, ( 1987). Certificate No. 77.
SRC: Senior Real Estate Councilor, (1993). Certificate No. 89.
Certification: State -Certified General Real Estate Appraiser, License No. 0000544, (1990).
Licensed Real Estate Broker, State of Florida.
Licensed Class A Wastewater Treatment Plant Operator, State of Florida.
Associations: National Association of Realtors
Florida Association of Realtors
Key West Board of Realtors
Marathon and Lower Keys Board of Realtors.
National Association of Master Appraisers
Cominercial-Investment Real Estate Council.
Accredited Review Appraisers Council
National Association of Counselors
Experience: Appraisal Company of Key West, Inc. (Since 1987)
Richard Padron & Associates, Inc. (Since 1984)
Michael A. Padron, Inc. (1978-1984)
Riviera Enterprises, Inc. (1968-1984)
Appraisal Compan.y o f Kce TT est Page 39
StsmmarvA��raisal Report Hangar One &Marathon Flying Chsb Hangars, Marathon Airport
Area Of Expertise: • Analysis and evaluation of many types of real estate
• Assessment of project feasibility including:
Market research, investment analysis, and feasibility study
Highest and Best Use Analysis
• Litigation support and expert witness testimony
• Types of properties appraised, evaluated, and analyzed:
Hotels, Motels & Guesthouses
Shopping Centers & Malls
Restaurants
Theaters
Marinas, Boat Storage & Repairs
Seafood Packing House
Multi -Family Projects
Proposed Development Projects
Retail/Office and/or Specialty Stores
Warehouses (Mini, Storage & Distribution)
Highest & Best Use Study
Mobile Home & Recreation Vehicle Parks
Single Family Residential & Condominiums
Multi -Family & Income Properties
Environmentally Sensitive Tracts
Appraisal Compan.v o f Kce 11 est Page 40
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
APPRAISER CERTIFICATION
Appraisal Compan.1 ofKce (lest Page 41
StsmmarvA��raisal Report Hangar One &Marathon Flying Chsb Hangars, Marathon Airport
PROFESSIONAL OUALIFICATIONS
JAMES E. WILSON, III
James E. Wilson has been a resident of South Florida since 1976. His education includes a Bachelor of
Science in Business Administration with a Major in Economics from the University of Florida, 1987-1991.
His experience in the real estate industry began in early 1992 as a residential real estate appraiser in
Pompano Beach, Florida. He appraised a wide variety of single and multi -family residential properties
in Dade, Broward, and Palm Beach counties over a two-year period. In the search of advancement and
challenge. James Wilson moved to the Citv of Kev West Monroe County, Florida in order to obtain
experience and practice commercial real estate appraisal valuation techniques in a demanding and somewhat unique market area. Over
the past 18 years James has been exposed to a wide -range of appraisal projects, including highest and best use studies, complex property
appraisals, and wetland and environmentally sensitive valuations including transferrable development rights. His appraisal experience
includes financial and investment analysis, appraisal review, feasibility and planning analysis, as well as market research and analysis.
James Wilson has strived from a State Registered Real Estate Appraiser (apprentice) to a State Certified Residential Real Estate Appraiser
to a State Certified General Real Estate Appraiser (licensed to perform residential and commercial appraisals) and a General Associate
Member of the Appraisal Institute. He has passed the General Comprehensive Test of the Appraisal Institute and is completing the
Demonstration Report in order to fulfill the remaining requirements to become a Member of the Appraisal Institute (MAI). He is a recent
member of RIGS (Royal Institution of Chartered Surveyors), which is an international member organization for professionals in property,
land, real estate, construction and related environmental issues.
Education: SOUTH BROWARD HIGH SCHOOL, Hollywood, FL, 1987.
UNIVERSITY OF FLORIDA, Gainesville, Florida - Bachelor of Science in Business Administration -
Major in Economics, 1987-1991.
APPRAISAL INSTITUTE
Appraisal Reporting of Complex Residential Properties, October, 1993.
Persuasive Style in Narrative Appraisal Reports, May, 1994.
ACE 1779 - "Special Purpose Properties - The Challenge of Real Estate Appraising in Limited Markets
September, 1996.
410 Standards of Professional Practice, Part A (T TSPAP), 8.'97.
420 Standards of Professional Practice, Part B, August 1997.
520 Highest & Best Use and Market Analysis, October, 1997.
Non -Conforming Uses Seminar, Januarv, 1998.
5 10 Advanced Income Capitalization, May, 1998.
530 Advanced Sales Comparison & Cost Approach, May, 1998.
540 Report Writing & Valuation Analysis, August, 1998.
550 Advanced Applications, February, 1999.
Regression Analysis in Appraisal Practice: Concepts & Applications, Seminar, March, 2000.
General Demonstration Appraisal Report Writing Seminar, March, 2000.
800 Separating Personal & Real Property from Intangible Business Assets, March, 2002.
Successful Completion of the General Comprehensive Examination for the Appraisal Institute
Uniform Appraisal Standards for Federal Land Requisitions, March, 2007
General Demonstration Appraisal Report Writing Seminar, August, 2007
Valuation of Conservation Easements, January, 2008.
Appraising Distressed Commercial Real Estate, June, 2009
Oil Spills and Property Values, Webinar, August, 2010
Business Practices and Ethics, September, 2010
Appraisal Compan.v ofKce fl est Page 42
StsmmarvA��raisal Report Hangar One &Marathon Flying Chsb Hangars, Marathon Airport
Professional Qualifications of James E. Wilson, III (Continued)
GOLD COAST SCHOOL OF REAL ESTATE (Continued)
Real Estate Principles, Practices, and Law - FREC Course I, May, 1992.
Salesman Post -License Program, February, 1994.
Mortgage Broker, Elam -Prep Program, September, 1992.
AB I - Appraisal Board - Fundamentals of R.E. Appraising, 5/92.
AB II - Appr. Board - Appraising Resid. & Income Properties, 2/94.
AB IIb - Appraisal Board - Cert. Resid. Appraisal Course, 7/94.
AB III - Appraisal Board - Certified General Appraisal Course (Income Capitalization Course),
February, 1995.
USPAP - Uniform Standards of Professional Appraisal Practice, 6/92.
USPAP Course, September, 1995.
A-102 - Plan Reading for Appraisers, September, 1995.
National USPAP Update Course, June 2006
Techniques of Income Property Appraisal, June 2006
McKISSOCK DATA SYSTEMS
Automated Valuation Models, October, 2000.
Uniform Standards of Professional Appraisal Practice, October,2000.
Factory Built Housing, October, 2000.
Appraiser Liability, September, 2002.
Appraising Nonconforming & Difficult Properties, September,2002.
Appraiser Liability, USPAP, September, 2002.
Appraising for the Secondary Market, October, 2004.
Appraising High -Value Residential Properties, October, 2004.
Florida Laws and Regulations, October, 2004.
Limited Appraisals and the Scope of Work Decision, October, 2004.
National USPAP Equivalent, October, 2004.
Florida Laws and Regulations, September 2006.
Disclosures and Disclaimer, September, 2006.
Appraisal Trends, September 2006.
National USPAP Update Equivalent(2008-2009), November, 2008.
Introduction to Expert Witness Testimony, November 2008.
Mortgage Fraud -Protect Yourself, November, 2008.
Florida Appraisal Supervisor -Trainee Roles and Relationships, November, 2008.
Florida Laws and Regulations, November, 2008.
National USPAP Update Equivalent (2010-2011), August, 2010.
Risky Business: Ways to Minimize Liability, August, 2010.
Florida Laws and Regulations, August 2010.
Florida Apprisal Supervisor -Trainee Roles and Relationships, August, 2010.
The Changing World of FHA Appraising, August, 2010.
VALUE INFORMATION TECHNOLOGY, INC.
"Perspectives on Appraisals" FREAB Course ACE# 159 L June, 1995.
NORTH BROWARD BOARD OF REALTORS
ACE 591 - Basics of Construction - How a Florida Home is Built II, January, 1994.
Appraisal Compan.v o f Kce TT est Page 4
StsmmarvA��raisal Report Hangar One &Marathon Flying Chsb Hangars, Marathon Airport
Certification: State certified general real estate appraiser, as designated by the Department of Professional
Regulation, State of Florida; Registration No. RZ 2164.
Licensed Real Estate Salesperson, as designated by the Department of Professional Regulation,
State of Florida; License No. SL 0589552 (currently inactive).
Professional
Associations: Key West Board of Realtors
General Associate Member of the Appraisal Institute
Member of RIGS (Royal Institute of Chartered Survevors), October, 2010 Member# 12993 89
Affiliations: Past President of the Kev West Gator Club (Alumni Organization of the University of Florida)
Member of Class VIII, Leadership Monroe County
Board Member of the Rotary Club of Sunset Key West
2009 Treasurer, 2010 Vice President, 2011 President -Elect, Board of Directors of the Kev West
Chamber of Commerce
Experience: WILCO VALUATIONS, P.A. d/b/a APPRAISAL COMPANY OF KEY WEST, James
Wilson, President and his wife, Maria Virginia Wilson, also a State Certified General Real Estate
Appraiser purchased the Appraisal Company of Key West from Mr. Richard Padron in April,
2004. Mr. Padron has continued to be a Fee Commercial Real Estate Appraiser with the
Appraisal Company of Key West, which has ensured continuity and quality control.
APPRAISAL COMPANY OF KEY WEST, INC., Fee Commercial Real Estate Appraiser,
April, 1994 to April, 2004.
F.C.P. APPRAISAL SERVICES, INC., Senior Real Estate Appraiser and Trainer, May, 1992
to April, 1994.
Appraised various types of properties in the Florida Keys, including:
Retail Stores
Restaurants
Strip Centers
Office Buildings
Mixed -Use Properties
Service Stations
Multi -family Projects
Proposed Developments
Single-family Estates
Commercial/Residential Condominiums
Full -Service Marinas/Boat Yards
Environmentally Sensitive Acreage
Industrial Uses
Guest Houses /Hotels/Motels
Mobile Home and RV Parks
Warehouse (including mini -storage)
Special -Use Properties including Schools
Seafood Processing Plants
Appraisal C'ompan.v o f Kce TT est Page 44
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Appraisal C c !c h fi » Page 45
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
SUBJECT PROPERTY PHOTOGRAPHS
Front View of Marathon Flvin-, Club Shade Hangar from Taxiway
Rear View of Hangar One Shade Hangar Looking Westerly
Appraisal Compan.1 ofKce (lest Page 46
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
SUBJECT PROPERTY PHOTOGRAPHS
Side View of Marathon Hving Club Shade Hangar Looking Westerly
Side View of Hangar One Shade Hangar Looking Southeasterly
Appraisal Compan.1 ofKce (lest Page 47
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
SUBJECT PROPERTY PHOTOGRAPHS
Rear View of Marathon Flying Club Hangar Looking Southwesterly
View of Taiiwav from Subject Hangar
Appraisal C'ompan.1 ofKce (lest Page 48
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
TATE MAP
Appraisal Compan.1 ofKce (lest Page 49
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
FLORIDA KEYS MAP
FLORIDA
Key Largo MM 99-106
Tavernier MM 91-92
Plantation Key MM 86-90
E� WSndley Key MM84
Islamorada
Upper Matecumbe Key MM80
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M E �yo Lower Matecumbe Key MM74
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�--FY esta Key MM70
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L.zyton
W SLong Key MM66-69
Keye MM61
lli Key
Grassy Key MM57-60
`Crawl Key
arathon 'ohores
Key Colony Beach MM °4
Vaca Key
Marathon MM50
Pigeon Key MM45
7-mile Bridge H
Oc �'a�Sunshine Key MM 40
Y �� - Bahlpa� Hoonnd}a� MM 37-38
w dtlen, h°MMsB Mid e Toxqq
anxed MM 2b-f7
$ummerland MM 2+-25
Cuii�o? KM 22-2
Sugar a Key MM 2-13
Lower Sugarloaf Key MM 17
—Saddlebunch Keys MM 13-16
ig Coppitt MM 10
Boca Chica MM 7-8
Stock Island MM 5
• Key hest MM 0-4
Appraisal Compan. ofKce IT est Page 50
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
LOCATION MAP
Appraisal Compan.1 ofKce (lest Page 51
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
AERIAL PLAT MAP
Appraisal Compan.1 ofKce (lest Page 52
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
PLAT MAP OF AIRPORT PARCEL
Appraisal Compan.1 of Kce fl est Page 53
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
SITE PLAN (Exhibit A-1)
Appraisal Compan.1 ofKce IT est Page 54
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
SITE PLAN (Exhibit A-2)
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Appraisal Compan.1 ofKce fl est Page 55
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
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Appraisal Comp in. o f Kce TT est Page 56
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
ZONING MAP
Appraisal Compan.1 ofKce fl est Page 57
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
Engagement Letter
Appraisal Compan.1 ofKce (lest Page 58
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
APPRAISAL
OF KEY WEST �
November 30, 2010
Mr. Reggie Paros, Manager
Florida Keys Marathon Airport
9400 Overseas Hgwy. Suite 200
Marathon, FL 33050
Subject: 2 Hangars Alt. Key 1122114
Florida Keys Marathon Airport
9400 Overseas Hgwy.
Marathon, FL 33050
Our File No. 357-10
Fear Mr. Paros;
,�\ :W$ Flaglar A—.., Suit. 11101
I�...+/] K.y West, Florlda 33948
�' Telephone: (3861296.4568
i Fex: k365}396.C1499
We6site.: ffa-keysapp,W-1s.cam
Email: Fim �fla-keysapprafsals.eam
Pursuant to your request, please find our proposal outlined, and a list of the required documents in
order to perform the assignment. The appraisal inspection will be scheduled upon receipt of the
requested documents.
Purpose: (X ] Market Value [X C "As Is" [ ] "As Proposed„
[ ] Going -Concern Value [ ] Upon Completion [ ] Upon Stabilization
] Prospective Value
[ ] Market Value for FEMA
(j Replacement Cost for Insurance purposes
[ ] Business Valuation
Interest: Fee Simple [X ] Leased Fee [ ]
Function: Evaluation of sub]ect property for: [ ] Purchase [ ] Foreclosure
[ ] Refinance [ ] Estate
[X ] Buyout of Existing Hangars Leases
[]Insurance
Fee: S 2,000 for 2 original reports,
Additional Original(s) _k, $50.00 each.
Time: Completion before the end of the year assuming prompt receipt of all required
documents to be provided by the owner/client.
Appraisal Compan. ofKce 11 est Page 59
StsmmarvA��raisal Report Hangar One &Marathons Flving Chsb Hangars, Marathon Airport
Mr. Reggie Paros, Manager
Page 2
Requested Documents:
[X ] A Signed Copy of this Engagement Letter
[X ] Legal Description
[X ] Most Recent Survey, if available
[ ] Biological Study
[ ] Buildability Letter
[ ] Warranty need
[X ] Environmental Report, if available
[X ] Copy of any existing Leases and/or
Subleases
Copy of Occupational Licenses
[ ] Letter of Development Rights
Determination from Monroe County
[X ] Copy of Contract for Sale and Purchase,
if applicable
[ ] Plans and Specifications
[ ] Cost Estimates for Proposed Construction
[ ] Income and Expense Statements for
years
] Rate Cards for _ year(s)
[ ] Balance Sheets for _ year(s)
[X ] Current Rent Roll -Subleases
[X ]' Current Wind, Hire & Flood Insurance
Premiums
Appraisal Report: Appraiser agrees to prepare in writing a narrative Appraisal Report in
conformity with USPAP, (Uniform Standards for Professional Appraisal
Practice).
[ ] Restricted Use Report
[X I Summary Report
[ ] Self -Contained Report
The report shall conform to any professional organizations to which the
Appraiser may belong. The appraiser shall consider, if applicable, at least the
three trad►tional approaches to value, Cast Approach, Direct Sales
Comparison Approach and Income Approach, plus any other approach
deemed appropriate by the Appraiser.
Conditions: The Appraisal. Report shall be subject to the Appraiser's assumptions,
conditions and limitations standard. The Appraisal Report will be prepared
for the sole and exclusive use of Client. The appraisal report shall not be
reproduced, printed or distributed in any manner without written consent of
Appraiser, as it consists of "trade secrets and commercial and financial
information" which is privileged, confidential and exempted from disclosure.
Litigation: In the event Appraiser is called upon voluntarily or otherwise, to testify in
court or deposition regarding the Appraisal Report herein, Client agrees to
pay an additional sum of $200.00 per hour plus Appraiser"s usual and
customary expenses, minimum of 2 hours.
Appraisal Compan. ofKce (lest Page 60
StsmmarvA��raisal Report Hangar One &Marathon Flving Chsb Hangars, Marathon Airport
Mr. Rtgglto faros, Manager
page
Payment The agreed fee stall be paid in fill before the report is released.
Please sign and return this agreement with the required information so that we may schedule the
inspection- Quotes are valid for 48 hours, If you have any questions, please do not he,sitale to call me.
'l" ook you for considering out firm to provide you this 5e vice.
For questions concerniristhe appraisal report, contactJisn*rKayat3229FlaglerAvenue, Suite113,
Appraisal Company of Key Wcst, phone (305) 2,9F5 .
<)�- 4VAry—
y: lames EL W ilson, President
atat titTied General Real Estate appraiser
Licen se No. R2164
may:
Accepted by. °- _ _ µ
ign.at
N : .-1°� r,�s Date:
Ire.! om-1{3R�,37�bfltE= .-.in$al.Le.-ir357=10.wN
Appraisal Compan.v o f Kee TT est Page 61