Item V08 Co �� � .�� , BOARD OF COUNTY COMMISSIONERS
Mayor David Rice,District 4
The Florida Keys Mayor Pro Tem Craig Cates,District 1
y Michelle Coldiron,District 2
James K.Scholl,District 3
u f Holly Merrill Raschein,District 5
County Commission Meeting
October 19, 2022
Agenda Item Number: V.8
Agenda Item Summary #11253
BULK ITEM: No DEPARTMENT: Airports
TIME APPROXIMATE: STAFF CONTACT: Richard Strickland(305) 809-5200
N/A
AGENDA ITEM WORDING: Approval of Second Amendment to Lease Agreement with
Marathon Hangar Development, Inc. (MHD) exercising a ten year renewal option on a land lease at
the Florida Keys Marathon International Airport and adjusting annual rent payment in accordance
with fair market value appraisal.
ITEM BACKGROUND: The BOCC previously entered into a land lease with MHD for the
purpose of constructing aircraft hangars commonly known as T-hangars at the Marathon airport. The
original lease term included a term of twenty years with an option, at MHD's discretion, to renew for
one additional ten year term. The original term provided for standard annual CPI rental increases.
The ten year renewal option requires that an appraisal be conducted to determine fair market value.
Current annual rental rate is $24,962.22.
Appraisal completed and annual rental payments scheduled as follows:
Year 1 —$27,000, Year 2—$31,000, Year 3 —$35,000, Year 4 —$39,000, Year 5 —$43,000
Year 6—$47,000, Year 7 —$51,000, Year 8 —$55,000, Year 9 —$59,000, Year 10 —$63,000
PREVIOUS RELEVANT BOCC ACTION: Approval of original MHD land lease on December
13, 2000 and First Amendment on April 17, 2002.
CONTRACT/AGREEMENT CHANGES:
Ten year renewal option and rental rate update in alignment with fair market value appraisal.
STAFF RECOMMENDATION: Approval
DOCUMENTATION:
MTH - MHD 2nd Amendment
FINANCIAL IMPACT:
Effective Date: October 19, 2022
Expiration Date: October 18, 2032
Total Dollar Value of Contract: N/A
Total Cost to County: N/A
Current Year Portion:
Budgeted: Yes
Source of Funds: N/A
CPI:
Indirect Costs:
Estimated Ongoing Costs Not Included in above dollar amounts:
Revenue Producing: Yes If yes, amount: : $27,000 YR 1 w/annual increases
Grant:
County Match:
Insurance Required: Yes
Additional Details:
N/A
REVIEWED BY:
Beth Leto Completed 10/11/2022 12:45 PM
Richard Strickland Completed 10/11/2022 2:11 PM
Pedro Mercado Completed 10/11/2022 2:21 PM
Purchasing Completed 10/11/2022 2:28 PM
Budget and Finance Completed 10/11/2022 4:28 PM
Brian Bradley Completed 10/11/2022 4:37 PM
Lindsey Ballard Completed 10/11/2022 5:08 PM
Board of County Commissioners Pending 10/19/2022 9:00 AM
SECOND AMENDMENT TO LEASE AGREEMENT
FLORIDA KEYS MARATHON AIRPORT
MARATHON HANGAR DEVELOPENT (MHD),INC.
THIS SECOND AMENDMENT TO LEASE AGREEMENT (the "Amendment" or
"Agreement") is made and entered into this 19th day of October , 2022 by and between
MONROE COUNTY, a political subdivision of the State of Florida, whose address is 1100
Simonton Street, Key West, Florida 33040, hereinafter referred to as "County" or "Lessor" and
MARATHON HANGAR DEVELOPMENT, Inc. (MHD), a Florida Corporation, whose
address is 11100 Overseas Highway, Marathon, FL 33050, hereinafter referred to as "Lessee".
WHEREAS, on the 13th day of December 2000 the parties entered into a lease agreement
(hereafter "Original Lease")for purposes of making available hangar space to operators of private
aircraft; and
WHEREAS, on the 17'h day of April 2002 the parties amended the agreement to provide
for funding of up to one-half of the construction funding by the County as funding became
available through FAA/FDOT grants; and
WHEREAS, Lessee has successfully constructed, and sub leased, (4) four T-hangar
buildings, each containing (8)eight hangar units for a total of(32)thirty-two hangar units, and all
associated infrastructure and adjacent pavement needed to service the four buildings; and
WHEREAS,Lessee has now exercised its option for an additional ten year term; and
WHEREAS, Lessor has, in accordance with the Original Lease, conducted an appraisal
to determine a fair market value and subsequent rate calculation pursuant to current rates and
charges; and
WHEREAS, Lessee has agreed to reset the base level of the rent and renew the agreement
for an additional ten (10) years; and
WHEREAS, any existing credit of funds on the current lease balance will be carried
forward and applied to this second amendment; and
WHEREAS, the parties have found the Original Agreement to be mutually beneficial;
now therefore
IN CONSIDERATION of the mutual covenants and agreements set forth below, the
parties agree to amend the Original Lease as follows:
Section 6. of the Original Lease shall be deleted and replaced by the following:
6. a) This lease renewal term shall be for (10) ten years, beginning on the effective
1
date of this Second Amendment. Upon termination of this lease, either under this
paragraph or as provided elsewhere in this lease, MHD must peacefully surrender and
abandon the premises and all structures to the County. Thereupon, all structures and
improvements on the premises shall be the sole property of the County.
b) The rent amounts are as follows:
In accordance with the 2022 appraised fair market valuation, the rent amounts for a
renewal term of ten years are as follows:
Year 1 —$27,000 Twenty-Seven Thousand and 00/100 Dollars
Year 2—$31,000 Thirty-One Thousand and 00/100 Dollars
Year 3 —$35,000 Thirty-Five Thousand and 00/100 Dollars
Year 4—$39,000 Thirty-Nine Thousand and 00/100 Dollars
Year 5 —$43,000 Forty-Three Thousand and 00/100 Dollars
Year 6—$47,000 Forty-Seven Thousand and 00/100 Dollars
Year 7— $51,000 Fifty-One Thousand and 00/100 Dollars
Year 8—$55,000 Fifty-Five Thousand and 00/100 Dollars
Year 9—$59,000 Fifty-Nine Thousand and 00/100 Dollars
Year 10—$63,000 Sixty-Three Thousand and 00/100 Dollars
c) Ail rent is due on the anniversary or the effective date. All rental payments are due at
the following:
Airport Director's Office
Florida Keys Marathon International Airport
9400 Overseas Highway
Marathon, FL 33050
All other provisions of the December 13, 2000, Original Lease not inconsistent herewith,
shall remain in full force and effect.
IN WITNESS WHEREOF, the parties have caused these presents to be executed by their
respective officer or representative thereunto duly authorized,the day and year first above written.
(SEAL) BOARD OF COUNTY COMMISSIONERS
ATTEST: OF MONROE COUNTY, FLORIDA
BY BY
As Deputy Clerk Mayor/Chairperson
WITNESSES: Marathon I lanfit'. c Io ,..,
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By
Am d' V,_ Title
NPOE COUNVTY ATT�JITRIEY 2
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ASSI TAi UNTY ATTORNEY
Dat 10/11/22
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COLD REPUBLIC: INSURANCE COMPANY
CERTIFICATE OF INSURANCE
This is to certify to The Florida Keys Marathon International Airport and Monroe County
(Certificate Holder): 500 Whitehead Street
Key West, FL 33040 AII ,
The following policy(ies) Marathon Hangar Development, LLC
Have been issued to: 11100 Overseas Highway
Marathon, FL 33050
AIRPORT POLICY INFORMATION:
AIRPORT POLICY NO: AP 010272010 POLICY PERIOD: FROM: January 03, 2022 TO: January 03,2023
THIS COVERAGE IS EFFECTIVE 12:01 A.M.January 03,2022
INSURANCE COMPANY: OLD REPUBLIC INSURANCE COMPANY
LIABILITY COVERAGES:
LIMITS OF LIABILITY
® Comprehensive General Liability $CSL Each Person $ 1,000,000 Each Occurrence*
❑ Completed Operations/Products Liability $ Each Person $ Each Occurrence*
® Hangarkeepers Liability $ 1,000,000 Each Aircraft $ 1,000,000 Each Occurrence*
❑ Premises Medical Payments $ Each Person $ Each Occurrence*
❑ Not Applicable $ Each Person $ Each Occurrence*
DEDUCTIBLES:
® Hangarkeeper's Liability—See Below $ Each Loss*
❑ Premises Liability $ Each claim with respect to Property Damage
*Refer to the Policy;an annual aggregate limit may apply to some coverage(s).
THIS CERTIFICATE HOLDER IS:
❑ Included as a Loss Payee for Aircraft Physical Damage Coverage, and included as an additional insured.
❑ Provided Breach of Warranty Coverage on Aircraft Physical Damage as their interest may appear not to exceed 90% of the Insured
Value.
® Included as an Additional Insured on Airport Liability Coverage but only with respect to operations of the Named Insured.
❑ Provided a Waiver of Subrogation on Aircraft Physical Damage Coverage, but only
OTHER COVERAGES/CONDITIONS/ REMARKS:
Hangarkeeper's Deductibles: $2,500. EEL as respects Piston Aircraft; $5,000. EEL as respects Turbine Aircraft; $25,000.
EEL as respects Airline Equipment.
Provision has been made to give the Certificate Holder thirty(30) days notice of cancellation -ten (10) days for
nonpayment of premium - of any policy above; however, the Company assumes no responsibility for the
failure to provide such notice. This certificate is issued as a matter of information only and confers no rights
upon the certificate holder. This certificate does not amend, extend, or alter the coverage, terms, exclusions,
conditions, or other provisions afforded by the policies referenced herein nor does it constitute a contract
between the issuing insurer(s), authorized representative, or producer.
OLD REPUBLIC AEROSPACE, INC. Representative:
Agency Name: Alexander Aviation Associates ) r'
Agency Phone: 321-444-6577 /f
Date:January 7,2022
1990 VAUGHN ROAD,SUITE 350 KENNESAW, GA 30144 1 PH:(770)590-4950 1 FX: (770)590-0599
MARATHON HANGAR DEVELOPMENT INC
11100 OVERSEAS HWY
MARATHON, FL 33050
305-289-6486
December 28, 2020
To whom it may concern,
Marathon Hangar Development Inc. has no employees. Please
contact Marvin Schindler with any questions at 305-393-0064.
Sincerely,
'k K<7z
Marvin Schindler
Marathon Hangar Development , Inc.
Vice President & Director
2018 Edition
MONROE COUNTY,FLORIDA
REQUEST FOR WAIVER OF INSURANCE REQUIREMENTS
It is requested that the insurance requirements,as specified in the County's Schedule of Insurance
Requirements,be waived or modified on the following contract.
1) ' C"Vk "6 A '
Contractor/Vendor.- lfw 0,�AvG Ayc-) 1,3�1,
Project or Service:
Contractor/Vendor r
Address&Phone#-
............
General Scope of Work:
Reason for Waiver or
'
LEI
'kz � 9
Modification., �LL-4`
Policies Waiver or
Modification will apply to: U
Lill LIkil
Signature of ContractorNe ndor:
Date: Approved x Not Approved
Risk Management Signature:
Date:
County Administrator appeal:
Approved: Not Approved:
Date:
Board of County Commissioners appeal:
Approved: Not Approved:
Meeting Date:
Administrativc Instruction 7500.7
t04
2018 Edition
MONROE COUNTY,FLORIDA
REQUEST FOR WAIVER OF INSURANCE REQUIREMENTS
It is requested that the insurance requirements,as specified in the County's Schedule of Insurance
Requirements,be waived or modified on the following contract.
Contractor/Vendor
'fi
Project or Service- UT
Contractor/Vendor
422LS�
Address&Phone
General Scope of Work: ......
AC Reason for Waiver or )
Modification:
L"15 ------------
Policies Waiver or
Modification will apply to:
"I�e �kwk
Signature of ContractorNendor.
Date: 12-31-2020 Approved aywx Not Approved
Risk Management Signature.—W.�,�-Z.-
Date:
---------------
County Administrator appeal:
Approved: Not Approved:
Date:
Board of County Commissioners appeal:
Approved: Not Approved:
Meeting Date:
Administrative Instruction 7500.7
104