Item C27BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date: April 16, 2008 Division: Administration/Airports
Department: Florida Keys Marathon Airport
Bulk Item: Yes X No Staff Contact Person: Re22ie Paros. ext.6060
AGENDA ITEM WORDING: Approval to exercise County's right of first refusal in order to decline
an offer to purchase a share in Hangers On, Inc. aircraft hangars.
ITEM BACKGROUND: The County leased property which contained four (4) aircraft hangars at the
Florida Keys Marathon Airport to Hangers On, Inc. The term of the lease is for a period of 22 years,
terminating in 2028. The lease contains a provision granting the County the right of first refusal
whenever a share (a hangar) in the Lessee's (Hangers On) stock is sold. In other words, the County can
buy back a portion of the leasehold whenever a portion of the lease hold is offered for purchase. On
August 15, 2007, the County entered into an agreement granting Hangers On, Inc. a longer lease term
in exchange for Hangers On, Inc. assuming all costs associated with maintaining and insuring the
hangars. The benefit and intent of the lease, for the County, was to realize the savings associated with
the costs of maintenance and insurance for the hangars. The County currently receives monthly rent in
the amount $539.48 for the leasehold. If the County were to purchase a portion of the lease hold the
County would lose that portion of the cost savings associated with the purchase. Since the County
already owns the Hangar structure, the County would not benefit by buying stock in the lease hold. In
addition, the County currently has no funds with which to exercise its right to purchase a share of the
Lessee's stock. For the foregoing reasons, staff recommends exercising County's right of first refusal
in order to decline an offer to purchase a share in Hangers On, Inc aircraft hangars.
PREVIOUS RELEVANT BOCC ACTION: On August 15, 2007, Board approved a lease
agreement between Monroe County and Hangers On, Inc., tenants, for hangar space at the Florida
Keys Marathon Airport.
CONTRACT/AGREEMENT CHANGES: N/A
STAFF RECOMMENDATIONS: Approval
TOTAL COST: N/A BUDGETED: Yes No
COST TO COUNTY: N/A
REVENUE PRODUCING: Yes
SOURCE OF FUNDS:
No X AMOUNT PER MONTH
APPROVED BY: County Atty N/A
DOCUMENTATION: Included X
DISPOSITION:
OMB/Purchasing N/A
Not Required
Risk Management N/A
AGENDA ITEM #
Revised 2/05
c) Lessee's sublease of any of its hangars does not in any way operate to waive
or release the Lessee from any of its duties and obligations under this lease and Lessee shall
remain fully bound by the terms of this lease as if no sublease existed.
d) Lessee is responsible for all sales or use taxes that may be due for rent paid
pursuant to this lease and any sub lessees.
e) After the first anniversary of this Lease, when a potential purchaser offers to
purchase some or all of the shares of Lessee's stock, then the Lessee must so notify County,
which will have 30 days from receipt of written notification to exercise a right of first
refusal to acquire those shares at the same purchase price as that offered by the potential
purchaser. Upon its exercise of the right of first refusal, the County will receive, in lieu of
the purchased stock certificate, the surrender of one hangar for each 25% of Lessee's stock
that it purchases. After such surrender the County may lease such surrendered hangar(s) and
corresponding portion of the premises to third persons free and clear of any claims of
Lessee, and the rent for the remaining portion of the Premises shall be reduced pro rata.
Lessee may override County's exercise of its right of first refusal by paying to County one-
half of the purchase price.
5. The Lessee agrees not to cause or permit any lien, mortgage or other encumbrance to
be placed on the premises hangars included. If such occurs, the Lessee must immediately
undertake, at its expense, whatever actions needed to remove and cancel the lien, mortgage or other
encumbrance.
6. The Lessee is responsible for all maintenance and insurance of the hangars, and shall
surrender the hangar, at the conclusion of the Lease, in good condition. Lessee shall at all times
during the term of this lease maintain insurance on the leased premises. If during the term of this
lease one or more of the hangars is damaged or destroyed, then the Lessee must promptly, and at no
cost to the COUNTY, repair or reconstruct the hangar(s). The repair or reconstruction must be