Item K6 K6
BOARD OF COUNTY COMMISSIONERS
COUNTY of MONROE �� i Mayor Holly Merrill Raschein,District 5
The Florida Keys Mayor Pro Tern James K.Scholl,District 3
Craig Cates,District 1
Michelle Lincoln,District 2
' David Rice,District 4
Board of County Commissioners Meeting
November 19, 2024
Agenda Item Number: K6
2023-3291
BULK ITEM: Yes DEPARTMENT: Airports
TIME APPROXIMATE: STAFF CONTACT: Richard Strickland
N/A
AGENDA ITEM WORDING:
Approval and authorization for the Mayor to execute the Consent, Non-disturbance and Attomment
Agreement for Coast FBO and the Consent, Non-disturbance and Attomment Agreement for Marathon
Aviation Associates to be held in escrow by the County Attorneys Office pending the final review,
editing and approval by the County Attorney or his designee of the documents.
ITEM BACKGROUND:
The MTH FBO's will be issuing tax exempt facility bonds for airports pursuant to section 142(a)(1) of the Internal
Revenue Code of 1986, as amended and Section 66.0304 of the Wisconsin Statutes, as amended. The proceeds fron
the sale of the MTH FBO Bonds will be loaned to Marathon Aviation Associates LLC , a Florida limited liability
company(the`Borrower"), Coast FBO LLC, a Florida limited liability company(the`Borrower") and will be used
to (a) finance the acquisition, construction and/or equipping of certain fixed base operator airport facilities (the
"Facilities;"), (b)pay the portion of the issuance costs of the Bonds which is allocable to the MTH FBO Bonds, (d)
pay capitalized interest with respect to the MTH FBO Bonds and(d) fund the portion of the debt service reserve
fund for the Bonds which is allocable to the MTH FBO Bonds(collectively, the"Project"). The Facilities will be
owned by the County and will be used and operated by the Borrower in its business of providing services to general
aviation aircraft operators. The Facilities will be located in part on a 5.75-acre site with a street address of 8800
Overseas Highway(US Route 1), Marathon, Florida and in remaining part on a 8.61-acre site with a street address
of 9850 Overseas Highway,Marathon, Florida. All of Facilities will be located at the Airport,which has street
address of 9400 Overseas Highway in the City of Marathon, Monroe County,Florida and which occupies a 197 acre
site along Overseas Highway between 72nd Street and 106th Street. The purpose for the lessor consent agreements
is to provide the County's consent for the financing and that FBO's executing, delivery, and recording of that certain
Leasehold Deed of Trust, Security Agreement, Fixture Filing, Financing Statement and Assignment of Leases an
Rents.
PREVIOUS RELEVANT BOCC ACTION:
Held a TEFRA hearing on July 17, 2024 for the purpose of receiving comments and hearing discussion
concerning the proposed issuance of NTE $40,000,000.00 in aggregate principal amount by the Public
Finance Authority, a joint powers commission created under Sections 66.0301, 66.0303 and 66.0304 of
3972
the Wisconsin Statutes.
INSURANCE REQUIRED:
No
CONTRACT/AGREEMENT CHANGES:
New agreement.
STAFF RECOMMENDATION: Approval.
DOCUMENTATION:
MTH Lessor Consent (Coast FBO Lease).pdf
MTH Lessor Consent (MAA FBO Lease ).pdf
FINANCIAL IMPACT:
N/A
3973
CONSENT,NONDISTURBANCE AND ATTORNMENT AGREEMENT
This CONSENT, NONDISTURANCE AND ATTORNMENT AGREEMENT (this "Consent
Agreement") is made this _ day of 2024, by and between MONROE COUNTY, a
political subdivision of the State of Florida ("County"), COAST FBO, LLC, a Florida limited liability
company(together with its successors and assigns, FBO") and THE BANK OF NEW YORK MELLON
TRUST COMPANY, N.A., a national banking association (together with its successors and assigns,
"Master Trustee"), as Master Trustee under the Master Indenture (defined below).
WITNESSETH
WHEREAS, County owns and operates Florida Keys Marathon International Airport located in
Marathon, Florida(the `Airport");
WHEREAS,pursuant to that certain Marathon Fixed Base Operator(FBO) Agreement, dated July
19, 2016, as amended by that certain First Amendment, dated December 19, 2018 and by Second
Amendment, dated July 21, 2021 and by Third Amendment dated December 13, 2023 (collectively, the
FBO Lease"), FBO leases (1) a 375,000 square foot parcel (described on Exhibit A-I to the aforesaid
Third Amendment), (11) Adjacent Land(described on Exhibit A-2 to the aforesaid Third Amendment) and
62 parking spaces (described on Exhibit C to the aforesaid Third Amendment) at the Airport from the
County, as more fully described on Exhibit A hereto ("Leased Premises");
WHEREAS, FBO and a group of entities affiliated with FBO (the "Obligated Group") which as
of the date hereof consist of Marathon Aviation Associates,LLC,Austin FBO,LLC and Million Air Three
LLC("Parent"),have heretofore entered into a Master Trust Indenture dated as of[ ] 1,2024
(as the same may be further amended and supplemented from time to time, the "Master Indenture") with
Master Trustee and the Obligated Group pursuant to which the Obligated Group has secured certain
indebtedness issued on behalf of the Obligated Group;
WHEREAS, FBO is part of the Obligated Group in connection with the issuance of the (1) Public
Finance Authority Special Facilities Revenue Bonds (Million Air Three LLC General Aviation Facilities
Project)), Series 2024A (Tax-Exempt-AMT) and (11) Public Finance Authority Special Facilities Revenue
Bonds (Million Air Three LLC General Aviation Facilities Project)), Series 2024B (Taxable) (the
`Bonds"), a portion of the proceeds of which will be loaned to FBO to finance or refinance certain
improvements made by FBO to the Leased Premises at the Airport and a portion of the proceeds of which
will be loaned to certain other members of the Obligated Group to finance certain projects at the Airport or
other airports and refinance indebtedness incurred in connection with certain projects at such airports (the
`Bond Financing");
WHEREAS,in connection with the Bond Financing,FBO desires to encumber its leasehold interest
in the FBO Lease by granting to Master Trustee a leasehold mortgage and such other security interests
required or permitted to secure the obligations of FBO and the joint and several obligations of the Obligated
Group under the Master Indenture (together with the Bond Financing, the `Financing");
WHEREAS, as additional security for the Financing,Parent has pledged its equity interests in FBO
to Master Trustee pursuant to the certain Pledge Agreement, dated as of[ _] 2024 by Parent in
favor of Master Trustee (the "Pledge Agreement"); and
WHEREAS, FBO has requested that County enter into this Consent Agreement with FBO
concerning the Financing.
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NOW,THEREFORE,in consideration of the premises and mutual covenants hereinafter contained,
the parties below,intending to be legally bound,hereto mutually covenant and agree as follows:
SECTION 1: CONSENT.
A. County hereby expressly consents to the Financing and that FBO's executing, delivery,
and recording of that certain Leasehold Deed of Trust, Security Agreement, Fixture Filing, Financing
Statement and Assignment of Leases an Rents, dated as of[ _], 2024 (as the same may be
modified, amended, restated or supplemented time to time, the "Leasehold Mortgage"),as well as any and
all financing statements or other documents required or permitted under the Uniform Commercial Code of
the State of Florida. County hereby consents, subject to the following terms and conditions, to the
assignment and mortgage of FBO's leasehold interest in and under the FBO Lease pursuant to the Leasehold
Mortgage to secure the obligations of FBO and the Obligated Group in connection with the Financing, and
to the recording of such documents required or permitted to perfect a security interest in FBO's leasehold
interest in and under the FBO Lease.
B. The Financing shall not operate to release or discharge FBO from any liability arising under
the terms, conditions and covenants of the FBO Lease.
C. It is agreed that: (1) County shall receive notice from Master Trustee of any default by FBO
under the Master Indenture at the same time as FBO receives notice thereof, and(11)provided that Master
Trustee provides the County with a written statement containing its name and address,Master Trustee shall
receive notice from the County of any default by FBO under the FBO Lease at the same time as FBO
receives notice thereof, and that no notice of default given to FBO, and no exercise of any remedy by
County as a result of any such default, shall be effective unless such notice shall have been delivered to
Master Trustee.
D. The Financing shall be a lien on FBO's leasehold estate only,and shall not otherwise affect
the fee title of the County, and the interest of the lienholder shall be subject to rights and remedies of the
County under the FBO Lease; provided, however, that County hereby acknowledges and agrees that any
mortgage now or hereafter encumbering County's fee interest or County's leasehold interest(if any)in and
to the Leased Premises shall be subject and subordinate in all respects to the FBO Lease and to any mortgage
of FBO's leasehold under the FBO Lease.
E. In the event of partial or total destruction of the Leased Premises, or at a time when FBO
shall be obligated under the FBO Lease to repair or reconstruct the Leased Premises, and FBO shall fail
either to do so or to commence to do so as required, Master Trustee is hereby authorized to repair or
reconstruct, at its sole election, the improvements located on the Leased Premises in compliance with the
FBO Lease in order to prevent a forfeiture thereof by reason of the breach or default by FBO of any of the
terms, conditions or covenants of the FBO Lease in that respect. In such event, Master Trustee shall be
subrogated to all the rights of FBO under the FBO Lease to the insurance proceeds collected upon the
Leased Premises, and shall be entitled to have said insurance proceeds paid out on such repair or
reconstruction upon its own certification in the same manner in every respect as if Master Trustee were
FBO.
F. The Financing shall be assignable to any commercial lending institution that receives the
prior written consent of the County in accordance with the terms of the FBO Lease, and such assignment
or assignments shall not be deemed to be in violation of any of the terms of the FBO Lease. Provided
however,if Master Trustee assigns the entirety of its interests in the leasehold mortgages of the Obligated
Group, including the Leasehold Mortgage hereunder, as such interests are reflected in the Master Trust
Indenture, County agrees that its consent shall not be required.No mortgagee or beneficiary, as such, shall
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be deemed a FBO or transferee of the FBO Lease or of the leasehold estate so as to require such mortgagee
or beneficiary,as such,to assume the performance of any of the terms, covenants,or conditions on the part
of FBO to be performed under the FBO Lease.
G. The County agrees that Master Trustee shall have the right, but not the obligation, to: (1)
cure any default by FBO under the FBO Lease and Master Trustee shall be afforded(a) 60 days to cure any
such default or(b)in the event that any such default cannot,with reasonable diligence,be cured within 60
days, such longer period as may be required to complete such cure including,without limitation, such time
as may be required for Lender to gain possession of FBO's interest under the FBO Lease, provided that
Master Trustee notifies County of its intention to cure such default and Master Trustee promptly
commences and diligently pursues such cure to completion to cure any default,including a payment default,
by FBO under the FBO Lease;and(11)exercise any extension options granted under the FBO Lease to FBO
in accordance with the terms thereof. County further agrees that no exercise of any termination right by
FBO under the FBO Lease, including under Section 22 of the FBO Lease shall be effective unless
countersigned by Master Trustee.
H. In the event of the foreclosure of the lien secured by any mortgage or deed of trust on the
Leased Premises or other taking of possession of the Leased Premises by or on behalf of Master Trustee or
its designee or by a purchaser in foreclosure, as the case may be, County agrees that delivery of a deed or
assignment of the FBO Lease pursuant to foreclosure proceedings, or by deed or assignment in lieu of
foreclosure or otherwise to Master Trustee or to any successors or assigns of Master Trustee (including,
without limitation, any purchaser of the leasehold estate in and to the Leased Premises upon or following a
foreclosure of the Leasehold Mortgage (or delivery of a deed or assignment of the FBO Lease in lieu of
foreclosure)) shall not be subject to the prior written consent of County, and such party shall be considered
the lessee under the FBO Lease for all purposes, the same as though such party were the original party to
the FBO Lease, and shall be bound and obligated by all the provisions thereof.
I. County hereby covenants and agrees that,in the event that the FBO Lease is terminated for
any reason including, without limitation, as a result of a rejection of the FBO Lease in a bankruptcy
proceeding, upon Master Trustee's request, County shall enter into a new lease with Master Trustee and
such new lease shall be upon the same terms and conditions of the unexpired term of the FBO Lease
immediately prior to such termination.
J. County hereby covenants and agrees that Master Trustee shall be entitled to participate in
any settlement regarding insurance or condemnation proceeds or awards, to collect and hold any such
proceeds or awards and to determine and direct whether any such proceeds or awards are made available
for the restoration of the Leased Premises or are applied to the repayment of the Bonds.
K. County hereby consents to the Pledge Agreement and agrees that in the event Master
Trustee or designee of either Master Trustee take ownership of the membership interests of Tenant such
action shall not be deemed violation of the Lease.
L. County hereby agrees that its security interests under Section 4 of the FBO Lease are
subject and subordinate to the lien of the Leasehold Mortgage.
M. The terms and conditions of the FBO Lease shall not be canceled,terminated, amended or
modified in any respect whatsoever without FBO's, County's and Master Trustee's written consent thereto,
and that any such action taken without such written consent shall not be binding on FBO, County or Master
Trustee.
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N. In the event that all or a portion of the Leased Premises is acquired by any governmental
authority by condemnation or the exercise of any eminent domain power, FBO shall be entitled to seek
compensation from such acquiring governmental authority for value of the leasehold interest of the FBO in
the portion of the Leased Premises so acquired by such authority(but not the County's residual fee simple
interest in the portion of the Leased Premises so acquired), together with the value of all improvements
thereon, and all other compensation to which FBO may be entitled under applicable law(including,without
limitation, the costs of repair,reconfiguration and restoration). In the event that the condemning authority
shall acquire the entire Leased Premises,the FBO Lease shall terminate upon the date of acquisition of title
by the condemning authority and FBO shall have no further obligations under the FBO Lease after the date
of acquisition. In the event that the condemning authority shall acquire less than the entire Leased Premises
then (1) in the event that FBO shall determine that it shall not be feasible to profitably operate FBO's
business in the remaining portion of the Leased Premises,FBO may terminate this the FBO Lease by notice
not later than ninety (90) days after the date of acquisition of title by the condemning authority and(n) in
the event that the FBO Lease shall not have elected(or shall not have the right)to terminate the FBO Lease
pursuant to the preceding clause (11), then the Lease shall terminate only with respect to the portion of the
Leased Premises so taken and the rent payable by FBO shall be reduced on a pro rata basis (based on the
square feet of the Leased Premises so taken relative to the overall Leased Premises prior to such taking).
SECTION 2: COUNTY CONFIRMATIONS:
(a) County is the owner and holder of the landlord's interest under the FBO Lease;
(b) a true, correct and complete copy of the FBO Lease is attached hereto as Exhibit
B;
(c) the FBO Lease is in full force and effect and has not, except as specifically stated
in Recitals to this Consent Agreement, been modified or amended and constitutes the entire agreement
between the parties thereto with respect to the subject matter thereof,
(d) the present tenant under the FBO Lease is FBO;
(e) the expiration date of the Lease is April 5,2041, extendable to May 31,2055 upon
satisfaction of specified conditions set forth in the FBO Lease;
(f) subject, in each case, to the qualification statement set forth below, as of the date
of this Consent Agreement, to County's actual knowledge, FBO is not in default under any of the terms,
covenants or conditions of the FBO Lease on the part of FBO to be observed or performed,and to County's
actual knowledge, no event has occurred which with the passage of time or the giving of notice, or both,
would constitute a default by FBO under the FBO Lease;
(g) neither County nor, to County's actual knowledge, FBO, has commenced any
action or has given or received any notice for the purpose of terminating the FBO Lease;
(h) the person signing this Agreement on behalf of County is a duly authorized
representative of County; and
(1) The monthly rent payable by FBO under the FBO Lease for the current calendar
year is (1) $19,159.84 (inclusive of sales tax), subject to annual adjustment based on the consumer price
index (other than the rent payable in respect of the parking spaces described on Exhibit C to the Third
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Amendment described above). Rent in respect of the premises described on Exhibit A-2 to the above
described Third Amendment does not commence until January 1, 2026. All rents, additional, rents and
other sums due and payable under the FBO Lease have been paid in full through October 31,2024. County
knows of no defenses, offsets, credits, claims or counterclaims to FBO's or County's obligations under the
FBO Lease. There are no security deposits or prepaid rent or liens, except as set forth therein.
SECTION 3: MISCELLANEOUS.
A. All notices, demands, requests, consents, and approvals desired, necessary,
required or permitted to be given pursuant to the terms of this Agreement and the Lease shall be
in writing and shall be deemed to be have been properly given (i) upon actual delivery if delivery
is by hand, (ii) on the third day following the date on which such notice is deposited, postage
prepaid, in the United States mail, certified, return receipt requested, or (iii) on the next business
day after being sent by a nationally recognized overnight courier service which provides proof of
receipt. All notices shall be directed at the address indicated below, or to any other address as the
parties may designate by notice delivered pursuant to this provision. Rejection or other refusal to
accept or inability to deliver because of changed address of which no notice was given shall be
deemed to be receipt of the notice or request.
TO COUNTY Marathon Airport Manager
9400 Overseas Highway, Suite 200
Marathon, FL33050
TO FBO: Coast FBO, LLC
c/o REW Investments
7555 Ipswich Road
Houston, TX 77061
Attention: Roger E. Woolsey
TO BENEFICIARY: The Bank of New York Mellon Trust Company, N.A.
Attention:
B. This Consent Agreement may not be changed, modified, discharged or terminated except
by a writing executed by FBO, Master Trustee and County,its successors or assigns, expressly so doing.
C. This Agreement shall be binding on and inure to the benefit of Master Trustee, FBO,
County and their respective successors and assigns.
D. This Consent Agreement shall not be binding on any party hereto unless and until it has
been executed by all parties hereto. This Consent Agreement may be executed in counterparts,which when
taken together, shall constitute one instrument.
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E. Except as specifically set forth in this Consent,in the event of a conflict between the terms
of this Consent Agreement and the FBO Lease,the terms of this Consent Agreement shall prevail. .
(Execution Page Follows)
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IN WITNESS WHEREOF, the parties hereto have caused this Consent Agreement to be executed
by their duly authorized officers, as of the date and year first written above.
ATTEST: KEVIN MADOK, MONROE COUNTY BOARD
CLERK OF MONROE COUNTY,FLORIDA OF COUNTY COMMISSIONERS
By: By:
As Deputy Clerk Mayor Holly Merill Raschein
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COAST FBO, LLC, a Florida limited liability
company
By:
Name:
Title:
STATE OF:
COUNTY OF:
Subscribed and sworn to (or affirmed)before me,by means of❑physical presence or ❑ online
notarization, on (date)by (name of
affiant). He/She is personally known to me or has produced
(type of identification) as identification.
NOTARY PUBLIC
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THE BANK OF NEW YORK MELLON
TRUST COMPANY,N.A., a national banking
association, as Master Trustee
By:
Name:
Title:
STATE OF:
COUNTY OF:
Subscribed and sworn to (or affirmed)before me,by means of❑physical presence or ❑ online
notarization, on (date)by (name of
affiant). He/She is personally known to me or has produced
(type of identification) as identification.
NOTARY PUBLIC
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EXHIBIT A
DESCRIPTION OF PREMISES
COAST FBO PREMISES
A portion of land located at Marathon Airport, and being a part of Section 1, Township 66 South, Range
32 East, Key Vaca, Monroe County, Florida and being more particularly described as follows:
Leeal Description to be inserted for: (1) 375,000 square foot parcel(as described on Exhibit A-I to Third
Amendment) and (11) Adjacent Land (as described on Exhibit A-2 to Third Amendment) and 62 parking
spaces (as described on Exhibit C to the Third Amendment).
A-I
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EXHIBIT B
LEASE
(To be omitted from counterpart submitted for recording)
B-1
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CONSENT,NONDISTURBANCE AND ATTORNMENT AGREEMENT
This CONSENT, NONDISTURANCE AND ATTORNMENT AGREEMENT (this "Consent
Agreement") is made this _ day of 2024, by and between MONROE COUNTY, a
political subdivision of the State of Florida("County'), MARATHON AVIATION ASSOCIATES, LLC,
a Florida limited liability company(together with its successors and assigns, FBO") and THE BANK OF
NEW YORK MELLON TRUST COMPANY, N.A., a national banking association (together with its
successors and assigns, "Master Trustee"), as Master Trustee under the Master Indenture (defined below).
WITNESSETH
WHEREAS, County owns and operates Florida Keys Marathon International Airport located in
Marathon, Florida(the `Airport");
WHEREAS, pursuant to that certain Marathon Fixed Base Operator (FBO) Agreement, dated
[November 4][October 21]i, 2020, as amended by that certain First Amendment, dated July 21, 2021 and
by Second Amendment, dated December 13, 2023 (collectively, the FBO Lease"), FBO leases (1) a
250,800 square foot parcel (described on Exhibit A to the aforesaid Second Amendment), (11) 151,006
square foot parcel (described on Exhibit B to the aforesaid Second Amendment) and (111) a 50,000 square
foot parcel (described on Exhibit C to the aforesaid Second Amendment) at the Airport from the County,
as more fully described on Exhibit A hereto ("Leased Premises");
WHEREAS, FBO and a group of entities affiliated with FBO (the "Obligated Group") which as
of the date hereof consist of Coast FBO, LLC, Austin FBO, LLC and Million Air Three LLC ("Parent")
have heretofore entered into a Master Trust Indenture dated as of[ ] 1,2024(as the same may
be further amended and supplemented from time to time,the "Master Indenture")with Master Trustee and
the Obligated Group pursuant to which the Obligated Group has secured certain indebtedness issued on
behalf of the Obligated Group;
WHEREAS, FBO is part of the Obligated Group in connection with the issuance of the (1) Public
Finance Authority Special Facilities Revenue Bonds (Million Air Three LLC General Aviation Facilities
Project)), Series 2024A (Tax-Exempt-AMT) and (11) Public Finance Authority Special Facilities Revenue
Bonds (Million Air Three LLC General Aviation Facilities Project)), Series 2024B (Taxable) (the
`Bonds"), a portion of the proceeds of which will be loaned to FBO to finance or refinance certain
improvements made by FBO to the Leased Premises at the Airport and a portion of the proceeds of which
will be loaned to certain other members of the Obligated Group to finance certain projects at the Airport or
other airports and refinance indebtedness incurred in connection with certain projects at such airports (the
`Bond Financing");
WHEREAS,in connection with the Bond Financing,FBO desires to encumber its leasehold interest
in the FBO Lease by granting to Master Trustee a leasehold mortgage and such other security interests
required or permitted to secure the obligations of FBO and the joint and several obligations of the Obligated
Group under the Master Indenture (together with the Bond Financing, the `Financing");
WHEREAS, as additional security for the Financing,Parent has pledged its equity interests in FBO
to Master Trustee pursuant to the certain Pledge Agreement, dated as of[ _] 2024 by Parent in
favor of Master Trustee (the "Pledge Agreement"); and
'First and Second Amendments are inconsistent about this date.
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WHEREAS, FBO has requested that County enter into this Consent Agreement with FBO
concerning the Financing.
NOW,THEREFORE,in consideration of the premises and mutual covenants hereinafter contained,
the parties below,intending to be legally bound,hereto mutually covenant and agree as follows:
SECTION 1: CONSENT.
A. County hereby expressly consents to the Financing and that FBO's executing, delivery,
and recording of that certain Leasehold Mortgage, Security Agreement,Fixture Filing,Financing Statement
and Assignment of Leases an Rents, dated as of[ 1, 2024 (as the same may be modified,
amended, restated or supplemented time to time, the "Leasehold Mortgage"),as well as any and all
financing statements or other documents required or permitted under the Uniform Commercial Code of the
State of Florida. County hereby consents, subject to the following terms and conditions,to the assignment
and mortgage of FBO's leasehold interest in and under the FBO Lease pursuant to the Leasehold Mortgage
to secure the obligations of FBO and the Obligated Group in connection with the Financing, and to the
recording of such documents required or permitted to perfect a security interest in FBO's leasehold interest
in and under the FBO Lease.
B. The Financing shall not operate to release or discharge FBO from any liability arising under
the terms, conditions and covenants of the FBO Lease.
C. It is agreed that: (1)County shall receive notice from Master Trustee of any default by FBO
under the Master Indenture at the same time as FBO receives notice thereof, and(11)provided that Master
Trustee provides the County with a written statement containing its name and address,Master Trustee shall
receive notice from the County of any default by FBO under the FBO Lease at the same time as FBO
receives notice thereof, and that no notice of default given to FBO, and no exercise of any remedy by
County as a result of any such default, shall be effective unless such notice shall have been delivered to
Master Trustee.
D. The Financing shall be a lien on FBO's leasehold estate only,and shall not otherwise affect
the fee title of the County, and the interest of the lienholder shall be subject to rights and remedies of the
County under the FBO Lease; provided, however, that County hereby acknowledges and agrees that any
mortgage now or hereafter encumbering County's fee interest or County's leasehold interest(if any)in and
to the Leased Premises shall be subject and subordinate in all respects to the FBO Lease and to any mortgage
of FBO's leasehold under the FBO Lease.
E. In the event of partial or total destruction of the Leased Premises, or at a time when FBO
shall be obligated under the FBO Lease to repair or reconstruct the Leased Premises, and FBO shall fail
either to do so or to commence to do so as required, Master Trustee is hereby authorized to repair or
reconstruct, at its sole election, the improvements located on the Leased Premises in compliance with the
FBO Lease in order to prevent a forfeiture thereof by reason of the breach or default by FBO of any of the
terms, conditions or covenants of the FBO Lease in that respect. In such event, Master Trustee shall be
subrogated to all the rights of FBO under the FBO Lease to the insurance proceeds collected upon the
Leased Premises, and shall be entitled to have said insurance proceeds paid out on such repair or
reconstruction upon its own certification in the same manner in every respect as if Master Trustee were
FBO.
F. The Financing shall be assignable to any commercial lending institution that receives the
prior written consent of the County in accordance with the terms of the FBO Lease, and such assignment
or assignments shall not be deemed to be in violation of any of the terms of the FBO Lease. Provided
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however,if Master Trustee assigns the entirety of its interests in the leasehold mortgages of the Obligated
Group, including the Leasehold Mortgage hereunder, as such interests are reflected in the Master Trust
Indenture, County agrees that its consent shall not be required.No mortgagee or beneficiary, as such, shall
be deemed a FBO or transferee of the FBO Lease or of the leasehold estate so as to require such mortgagee
or beneficiary,as such,to assume the performance of any of the terms, covenants,or conditions on the part
of FBO to be performed under the FBO Lease.
G. The County agrees that Master Trustee shall have the right, but not the obligation, to: (1)
cure any default by FBO under the FBO Lease and Master Trustee shall be afforded(a) 60 days to cure any
such default or(b)in the event that any such default cannot,with reasonable diligence,be cured within 60
days, such longer period as may be required to complete such cure including,without limitation, such time
as may be required for Lender to gain possession of FBO's interest under the FBO Lease, provided that
Master Trustee notifies County of its intention to cure such default and Master Trustee promptly
commences and diligently pursues such cure to completion to cure any default,including a payment default,
by FBO under the FBO Lease;and(11)exercise any extension options granted under the FBO Lease to FBO
in accordance with the terms thereof. County further agrees that no exercise of any termination right by
FBO under the FBO Lease, including under Section 22 of the FBO Lease shall be effective unless
countersigned by Master Trustee.
H. In the event of the foreclosure of the lien secured by any mortgage or deed of trust on the
Leased Premises or other taking of possession of the Leased Premises by or on behalf of Master Trustee or
its designee or by a purchaser in foreclosure, as the case may be, County agrees that delivery of a deed or
assignment of the FBO Lease pursuant to foreclosure proceedings, or by deed or assignment in lieu of
foreclosure or otherwise to Master Trustee or to any successors or assigns of Master Trustee (including,
without limitation, any purchaser of the leasehold estate in and to the Leased Premises upon or following a
foreclosure of the Leasehold Mortgage (or delivery of a deed or assignment of the FBO Lease in lieu of
foreclosure)) shall not be subject to the prior written consent of County, and such party shall be considered
the lessee under the FBO Lease for all purposes, the same as though such party were the original party to
the FBO Lease, and shall be bound and obligated by all the provisions thereof.
I. County hereby covenants and agrees that,in the event that the FBO Lease is terminated for
any reason including, without limitation, as a result of a rejection of the FBO Lease in a bankruptcy
proceeding, upon Master Trustee's request, County shall enter into a new lease with Master Trustee and
such new lease shall be upon the same terms and conditions of the unexpired term of the FBO Lease
immediately prior to such termination.
J. County hereby covenants and agrees that Master Trustee shall be entitled to participate in
any settlement regarding insurance or condemnation proceeds or awards, to collect and hold any such
proceeds or awards and to determine and direct whether any such proceeds or awards are made available
for the restoration of the Leased Premises or are applied to the repayment of the Bonds.
K. County hereby consents to the Pledge Agreement and agrees that in the event Master
Trustee or designee of either Master Trustee take ownership of the membership interests of Tenant such
action shall not be deemed violation of the Lease.
L. County hereby agrees that its security interests under Section 4 of the FBO Lease are
subject and subordinate to the lien of the Leasehold Mortgage.
M. The terms and conditions of the FBO Lease shall not be canceled,terminated, amended or
modified in any respect whatsoever without FBO's, County's and Master Trustee's written consent thereto,
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and that any such action taken without such written consent shall not be binding on FBO, County or Master
Trustee.
N. In the event that all or a portion of the Leased Premises is acquired by any governmental
authority by condemnation or the exercise of any eminent domain power, FBO shall be entitled to seek
compensation from such acquiring governmental authority for value of the leasehold interest of the FBO in
the portion of the Leased Premises so acquired by such authority(but not the County's residual fee simple
interest in the portion of the Leased Premises so acquired), together with the value of all improvements
thereon, and all other compensation to which FBO may be entitled under applicable law(including,without
limitation, the costs of repair,reconfiguration and restoration). In the event that the condemning authority
shall acquire the entire Leased Premises,the FBO Lease shall terminate upon the date of acquisition of title
by the condemning authority and FBO shall have no further obligations under the FBO Lease after the date
of acquisition. In the event that the condemning authority shall acquire less than the entire Leased Premises
then (1) in the event that FBO shall determine that it shall not be feasible to profitably operate FBO's
business in the remaining portion of the Leased Premises,FBO may terminate this the FBO Lease by notice
not later than ninety (90) days after the date of acquisition of title by the condemning authority and(n) in
the event that the FBO Lease shall not have elected(or shall not have the right)to terminate the FBO Lease
pursuant to the preceding clause (11), then the Lease shall terminate only with respect to the portion of the
Leased Premises so taken and the rent payable by FBO shall be reduced on a pro rata basis (based on the
square feet of the Leased Premises so taken relative to the overall Leased Premises prior to such taking).
SECTION 2: COUNTY CONFIRMATIONS:
(a) County is the owner and holder of the landlord's interest under the FBO Lease;
(b) a true, correct and complete copy of the FBO Lease is attached hereto as Exhibit
B;
(c) the FBO Lease is in full force and effect and has not, except as specifically stated
in Recitals to this Consent Agreement, been modified or amended and constitutes the entire agreement
between the parties thereto with respect to the subject matter thereof,
(d) the present tenant under the FBO Lease is FBO;
(e) the expiration date of the Lease is June 30, 2046, extendable to October 31, 2054
upon satisfaction of specified conditions set forth in the FBO Lease;
(f) subject, in each case, to the qualification statement set forth below, as of the date
of this Consent Agreement, to County's actual knowledge, FBO is not in default under any of the terms,
covenants or conditions of the FBO Lease on the part of FBO to be observed or performed,and to County's
actual knowledge, no event has occurred which with the passage of time or the giving of notice, or both,
would constitute a default by FBO under the FBO Lease;
(g) neither County nor, to County's actual knowledge, FBO, has commenced any
action or has given or received any notice for the purpose of terminating the FBO Lease;
(h) the person signing this Agreement on behalf of County is a duly authorized
representative of County; and
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(1) The monthly rent payable by FBO under the FBO Lease for the current calendar
year is (1) $10,298.84 (inclusive of sales tax), subject to annual adjustment based on the consumer price
index.Rent for the premises described on Exhibit C to the Second Amendment described above has not yet
commenced. All rents, additional,rents and other sums due and payable under the FBO Lease have been
paid in full through October 31, 2024. County knows of no defenses, offsets, credits, claims or
counterclaims to FBO's or County's obligations under the FBO Lease. There are no security deposits or
prepaid rent or liens, except as set forth therein.
SECTION 3: MISCELLANEOUS.
A. All notices, demands, requests, consents, and approvals desired, necessary,
required or permitted to be given pursuant to the terms of this Agreement and the Lease shall be
in writing and shall be deemed to be have been properly given (i) upon actual delivery if delivery
is by hand, (ii) on the third day following the date on which such notice is deposited, postage
prepaid, in the United States mail, certified, return receipt requested, or (iii) on the next business
day after being sent by a nationally recognized overnight courier service which provides proof of
receipt. All notices shall be directed at the address indicated below, or to any other address as the
parties may designate by notice delivered pursuant to this provision. Rejection or other refusal to
accept or inability to deliver because of changed address of which no notice was given shall be
deemed to be receipt of the notice or request.
TO COUNTY Marathon Airport Manager
9400 Overseas Highway, Suite 200
Marathon, FL33050
TO FBO: Marathon Aviation Associates, LLC
c/o REW Investments
7555 Ipswich Road
Houston, TX 77061
Attention: Roger E. Woolsey
TO BENEFICIARY: The Bank of New York Mellon Trust Company, N.A.
Attention:
B. This Consent Agreement may not be changed, modified, discharged or terminated except
by a writing executed by FBO, Master Trustee and County,its successors or assigns, expressly so doing.
C. This Agreement shall be binding on and inure to the benefit of Master Trustee, FBO,
County and their respective successors and assigns.
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D. This Consent Agreement shall not be binding on any party hereto unless and until it has
been executed by all parties hereto. This Consent Agreement may be executed in counterparts,which when
taken together, shall constitute one instrument.
E. Except as specifically set forth in this Consent,in the event of a conflict between the terms
of this Consent Agreement and the FBO Lease,the terms of this Consent Agreement shall prevail. .
(Execution Page Follows)
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IN WITNESS WHEREOF, the parties hereto have caused this Consent Agreement to be executed
by their duly authorized officers, as of the date and year first written above.
ATTEST: KEVIN MADOK, MONROE COUNTY BOARD
CLERK OF MONROE COUNTY,FLORIDA OF COUNTY COMMISSIONERS
By: By:
As Deputy Clerk Mayor Holly Merill Raschein
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MARATHON AVIATION ASSOCIATES,
LLC, a Florida limited liability company
By:
Name:
Title:
STATE OF:
COUNTY OF:
Subscribed and sworn to (or affirmed)before me,by means of❑physical presence or ❑ online
notarization, on (date)by (name of
affiant). He/She is personally known to me or has produced
(type of identification) as identification.
NOTARY PUBLIC
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THE BANK OF NEW YORK MELLON
TRUST COMPANY,N.A., a national banking
association, as Master Trustee
By:
Name:
Title:
STATE OF:
COUNTY OF:
Subscribed and sworn to (or affirmed)before me,by means of❑physical presence or ❑ online
notarization, on (date)by (name of
affiant). He/She is personally known to me or has produced
(type of identification) as identification.
NOTARY PUBLIC
301557129
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EXHIBIT A
DESCRIPTION OF PREMISES
A portion of land located at Marathon Airport. and being a part of Section 1, Township 66 South, Range
32 East, Key Vaco, Monroe County, Florida and being more particularly described as follows:
Leeal Description to be inserted for: (1)250,800 square foot parcel(as described on Exhibit A to Second
Amendment) and (11) 151,006 square foot parcel (as described on Exhibit B to Second Amendment) and
(111) 50,000 square foot parcel (as described on Exhibit C to the Second Amendment)
A-I
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EXHIBIT B
LEASE
(To be omitted from counterpart submitted for recording)
B-1
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Liz Yongue
From: Gomez-Krystal <Gomez-Krystal@MonroeCounty-FL.Gov>
Sent: Friday, November 15, 2024 9:46 AM
To: Ballard-Lindsey; County Commissioners and Aides; Kevin Madok; Pamela Hancock;
Senior Management Team and Aides; Liz Yongue; InternalAudit
Cc: Shillinger-Bob; Williams-Jethon; Cioffari-Cheryl; Livengood-Kristen; Rubio-Suzanne;
Pam Radloff; County-Attorney; Allen-John; Danise Henriquez; Hurley-Christine; Rosch-
Mark; Gambuzza-Dina; Beyers-John; InternalAudit; Kevin Madok; Valcheva-Svilena;
Powell-Barbara; Guerra-Cynthia
Subject: Item K6 BOCC 11/19/2024 REVISED ITEM BACKGROUND WORDING
Attachments: AIS K6 3291.pdf
Good Morning,
Please be advised that the agenda item has revised background wording for item K6.
"Approval and authorization for the Mayor to execute the Consent, Non-disturbance and Attornment Agreement
for Coast FBO and the Consent, Non-disturbance and Attornment Agreement for Marathon Aviation Associates
to be held in escrow by the County Attorneys Office pending the final review, editing and approval by the County
Attorney or his designee of the documents. "
Sincerely,
Executive Administrator
Monroe County Administrator's Office
1100 Simonton Street, Suite 2-205
Key West, FL 33040
(305)292-4441 (Office)
(305)850-8694(Cell)
Courier Stop#1
Notary Public
w.r o n r y e c_ u�n1y:�:V_e.gpy
i».c z..- Y .�.. _rn groecou�_n�.Y..-.�..:.i» .Y.
PLEASE NOTE: FLORIDA HAS A VERY BROAD RECORDS LAW. MOST WRITTEN COMMUNICATIONS TO OR FROM THE COUNTY REGARDING COUNTY BUSINESS
ARE PUBLIC RECORDS AVAILABLE TO THE PUBLIC AND MEDIA UPON REQUEST. YOUR EMAIL COMMUNICATION MAY BE SUBJECT TO PUBLIC DISCLOSURE.
1
K6
BOARD OF COUNTY COMMISSIONERS
COUNTY of MONROE i Mayor Holly Merrill Raschein,District 5
The Florida Keys Mayor Pro Tern James K.Scholl,District 3
Craig Cates,District 1
Michelle Lincoln,District 2
' David Rice,District 4
Board of County Commissioners Meeting
November 19, 2024
Agenda Item Number: K6
2023-3291
BULK ITEM: Yes DEPARTMENT: Airports
TIME APPROXIMATE: STAFF CONTACT: Richard Strickland
N/A
AGENDA ITEM WORDING:
Approval and authorization for the Mayor to execute the Consent, Non-disturbance and Attomment
Agreement for Coast FBO and the Consent, Non-disturbance and Attomment Agreement for Marathon
Aviation Associates to be held in escrow by the County Attorneys Office pending the final review,
editing and approval by the County Attorney or his designee of the documents.
ITEM BACKGROUND:
The MTH FBO's will be issuing tax exempt facility bonds for airports pursuant to section 142(a)(1) of
the Internal Revenue Code of 1986, as amended and Section 66.0304 of the Wisconsin Statutes, as
amended. The proceeds from the sale of the MTH FBO Bonds will be loaned to Marathon Aviation
Associates LLC , a Florida limited liability company(the"Borrower"), and will be used to (a) finance
the acquisition, construction and/or equipping of certain fixed base operator airport facilities (the
"Facilities;"), (b)pay the portion of the issuance costs of the Bonds which is allocable to the MTH FBO
Bonds, (d)pay capitalized interest with respect to the MTH FBO Bonds and(d) fund the portion of the
debt service reserve fund for the Bonds which is allocable to the MTH FBO Bonds (collectively, the
"Project"). The Facilities will operated by the Borrower
in its business of providing services to general aviation aircraft operators. The Facilities will be located
in part on a 5.75-acre site with a street address of 8800 Overseas Highway (US Route 1), Marathon,
Florida and in remaining part on a 8.61-acre site with a street address of 9850 Overseas Highway,
Marathon, Florida. All of Facilities will be located at the Airport, which has street address of 9400
Overseas Highway in the City of Marathon, Monroe County, Florida and which occupies a 197 acre site
along Overseas Highway between 72nd Street and 106th Street. The purpose for the lessor consent
agreements is to provide the County's consent for the financing and that FBO's executing, delivery, and
recording of that certain Leasehold Deed of Trust, Security Agreement, Fixture Filing, Financing
Statement and Assignment of Leases an Rents.
PREVIOUS RELEVANT BOCC ACTION:
1
Held a TEFRA hearing on July 17, 2024 for the purpose of receiving comments and hearing discussion
concerning the proposed issuance of NTE $40,000,000.00 in aggregate principal amount by the Public
Finance Authority, a joint powers commission created under Sections 66.0301, 66.0303 and 66.0304 of
the Wisconsin Statutes.
INSURANCE REQUIRED:
No
CONTRACT/AGREEMENT CHANGES:
New agreement.
STAFF RECOMMENDATION: Approval.
DOCUMENTATION:
MTH Lessor Consent (Coast FBO Lease).pdf
MTH Lessor Consent (MAA FBO Lease ).pdf
FINANCIAL IMPACT:
N/A
2