Resolution 166-1986
Art Skelly
Director of Airports
RESOLUTION NO, 166-1986
A RESOLUTION OF THE BOARD OF COUNTY COMMIS-
SIONERS OF MONROE COUNTY, FLORIDA, APPROVING AND
AUTHORIZING THE CHAIRMAN OF THE BOARD TO EXECUTE
A SUPPLEMENTAL LEASE AGREEMENT BY AND BETWEEN
MONROE COUNTY, STATE OF FLORIDA, AND MARATHON AIR
SERVICES, INC,
WHEREAS, a Supplemental Lease Agreement has been entered
into by and between Monroe County, State of Florida, and Marathon
Air Services, Inc" which supersedes that certain lease entered
into by these parties on the 6th day of November, 1980, and fully
describes and explains the lease understanding between these
parties that is now existent and shall apply henceforth, now,
therefore,
BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF
MONROE COUNTY, FLORIDA, as follows:
1, That the certain Supplemental Lease Agreement, dated May
15, 1986, be and the same is hereby approved.
2, That the Chairman of the Board of County Commissioners
of Monroe County, Florida, is hereby authorized to execute the
said Supplemental Lease Agreement by and between Monroe County,
State of Florida, and Marathon Air Services, Inc" a copy of same
being attached hereto,
PASSED AND ADOPTED by the Board of County Commissioners of
Monroe County, Florida, at a regular meeting of said Board held
on the It!;,), day of
d~ ' A,D, 1986.
BOARD OF COUNTY COMMISSIONERS
OF MONROE COUNTY, FLORIDA
\ ...... "'_...~, _" .. ... do.\
BY:"~~.~
MAYOR/CHAIRMAN
(Seal)
At t est: DANNX L. KOLHAGE, Clerk
J2~~&~
ERK '
:PP:; ~~:J .,~:z;,~~
BY . '"~
'-):f(ic'e
SUPPLEMENTAL LEASE AGREEMENT
THIS SUPPLEMENTAL LEASE AGREEMENT made and entered into this
I r-1- day of May, 1986, by and between MONROE COUNTY, STATE OF
FLORIDA, hereinafter called the Lessor, and MARATHON AIR SER-
VICES, INC., a Florida corporation, hereinafter called the
Lessee,
WITNESSETH:
That since the parties hereto had entered into an agreement
for certain land and facilities in the Marathon Airport in
Marathon, Monroe County, Florida, said agreement being dated the
6th day of ~ovember, 1980, and it is the intention of the parties
hereto to sign and execute a supplemental lease agreement to the
aforesaid lease executed on November 6, 1980, now, therefore,
IN CONSIDERATION of the mutual covenants and agreements,
promises and understandings herein, the parties agree as follows:
1.
TERM,
That the provision. for term shall read as
follows;
That this lease shall be for a period of
eighteen (18) months from the date hereof and
that the first and last month's rent will be
paid con~urrent with the signing of this
document, The termination date of this lease
shall be on or before December 15, 1987,
2,
RENTAL.
That the rental for said lease extension
granted herein shall be as follows:
That the Lessee covenants and agrees to pay
the first and last month's base rent in
advance, said rent being paid at the rate of
$949,92 per month, it being agreed that in
the final six months lease, commencing on May
15, 1987, said rent will be adjusted to
comply with an increase based upon the Cost
of Living Index as published by the U, S,
Department of Commerce, In addition to the
base rent of $949,92, the Lessee agrees to
pay a sum equal to 3C per gallon for aviation
gasoline and jet fuel sold by the Lessee, the
same to be computed and added to the monthly
rent,
3. RENTAL PROPERTY, Properties covered by this agreement
shall be those properties shown in the attached sketch and cross-
hatched which show the exact properties that are transferred in
this lease to the Lessee, This ,document is attached hereto and
marked Exhibit "A" and is part of this lease agreement as if
specifically spelled out herein, Additionally, the parties agree
that a survey of this leased property will be made by the Airport
Manager and will be attached to this lease when prepared and
marked Exhibit "B",
4, RULES AND REGULATIONS. The Lessee agrees to strictly
execute, comply with and abide by all applicable rules, regu-
lations and directives of the Lessor as presently existing or as
may be promulgated, changed or amended from time to time, and it
shall be the duty of the Lessee to become and remain informed and
familiar with the same as promulgated, changed or amended, which
by reference are hereby made a part hereof, Failure or refusal
to comply or abide with the provisions of this article shall be
cause for terminat{on of this lease.
S, PERSONAL PROPERTY, All personal property placed or
moved in or on the premises above described shall be at the risk
of the Lessee or owner thereof, and Lessor shall not be liable
for any damage or loss to said personal property for any act of
negligence of any co-Lessee or occupant, or of any other person
whomsoever.
6, SAFETY, CORRECTION, ETC, The Lessee shall promptly
execute and comply with all statutes, ordinances, rules, orders,
regulations, directives and requirements of the Federal, State,
County and City Governments arid of any and all of their depart-
ments and bureaus, applicable to said premises for safety and
correction, prevention and abatement of nuisances or other
grievances, in, upon or connected with said premises and its
operation.
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7, DEFAULT, A,... The prompt payment of the rent for said
premises upon the terms named, and the faithful observance of the
rules, regulations and directives which are by reference made a
part hereof, and of such other and further rules, regulations
and/or directives as may be hereafter made by the Lessor are the
conditions upon which the lease is made and accepted, and any
failure on the part of the Lessee to comply with the terms of
this lease, or any of said rules and regulations or directives,
now in existence, or which may hereafter be prescribed by the
Lessor, shall at the option of the Lessor, work a forfeiture of
this lease, and all of the rights of the Lessee hereunder, and
thereupon the Lessor, its agents or employees shall have a right
to enter said premises, and remove all persons and property, if
desired, therefrom forcibly or otherwise, and the Lessee hereby
expressly waives any and all notice required by law to terminate
tenancy, and also waives any and all legal proceedings to recover
possession of said premises, and expressly agrees that in the
event of a violation 0f any of the terms of this lease, or of
said rules, regulations or directives, now in existence, or which
may hereafter be made, said Lessor, its agents or employees may
immediately re-enter said premises and dispossess Lessee without
legal notice or the institution of any legal proceedings what-
soever.
B, In addition to the acts of default elsewhere
defined, the commission of any of the following acts by the
Lessee shall constitute a default, and this lease may be ter-
minated by the County immediately upon notice in writing to the
Lessee: Abandon, desert, vacate or discontinue operations on the
premises or petition for any bankruptcy or insolvency, or be
adjudicated bankrupt, or make a general assignment for the
benefit of creditors, or suffer a lien to be filed against the
premises, or permit a receiver or trustee to come into possession
without removing them, within a reasonable time,
8. COSTS AND ATTORNEY'S FEES, Lessee agrees to pay all
costs and expenses and a reasonable attorney's fee in the event
legal action is taken by the Lessor because of any violation of
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the terms of this 1e,ase or of any code section, ordinance,
regulation or rule applicable to the Lessee's use of the premises
including but not limited to those governing the payment of rent.
9,
FIXTURES,
The said Lessee hereby pledges and assigns
to the Lessor the fixtures, and goods and chattels of sa'id
Lessee, which shall or may be brought or placed on said premises
as security for the payment of the rent herein reserved, and the
Lessee agrees that the said lien may be enforced by distress
foreclosure or otherwise at the election of the said Lessor, and
does hereby agree to pay all costs and charges therefor incurred
by the Lessor,
The Lessor, or any of its agents, shall have
10, ENTRY,
.
the right to enter said premises during all reasonable hours, to
examine the same as may be deemed necessary for the safety,
comfort or preservation thereof, and to determine if Lessee is in
compliance with all of the aforementioned rules, regulations,
directives and otherwise,
11. CONDITION OF. PREMISES . A, The Lessee acknowledges and
agrees that he has examined the premises, and is fully advised of
the condition and location thereof, and the limitations and
restrictions placed on any building, structure or other object as
to height, due to the proximity of the landing and takeoff areas
of the Airport,
Lessee further agrees to abide by and ob~erve
all such restrictions and limitations, and agrees that the
observance of such limitations and restrictions, whether by
municipal, county, state or federal governmental authority, shall
not in anywise affect the Lessee's obligations under this lease,
B, Lessee hereby accepts the premises in the condi-
tion they are in at the beginning of this lease and agrees to
maintain said premises in the same condition, order and repair as
they are at the commencement of said term, excepting only reason-
able wear and tear arising from the use thereof under this
agreement,
Lessee further agrees to make good to said Lessor
immediately upon demand any damage caused by any act or neglect
of Lessee, or of any person or persons whomsoever, including but
not limited to employees, guests, passengers, or persons under
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the control of the Le&see, and the Lessee shall be liable to the
Lessor and shall forever hold harmless the Lessor from any and
all such damage or loss occasioned to the premises, or any of its
other properties caused by the acts or negligence of the Lessee
or any person or persons whomsoever including but not limited .to
employees, guests, passengers or persons under the control of the
Lessee, There is no warranty of any kind as to the condition of
the property not!/ shall the Lessor be responsible for injuries to ~
persons or property occurring upon the Lessor's property for any
reason,
Lessor, agrees to carry and keep in force
12, LIABILITY,
public liability insurance covering personal injury and property
damage, and such other insurance as may be necessary to protect
Lessor herein from such claims and actions aforesaid,
Lessee
agrees to carry ahd keep in force such insurance within minimum
limits of liability for personal injury in a sum not less than
$300,000 for anyone person, and $500,000 for anyone accident;
and for property damage in a sum no"t less than $200,000; and
Comprehensive General Liability coverage with combined single
limits for bodily injury and property damage in the amount of
$1,000,000; and to furnish Lessor with proper certificate certi-
fying that such insurance
is in force, Lessee shall carry its ~
, (!,~~h 'd d
~nsurance ~Qmp1L~s aut or~ze to 0
......
insurance coverages with
business in the State of Florida.
13, RELEASE,
The Lessee does hereby forever release and
discharge the Lessor, its departments, agencies, agents and
authorized personnel from any and all liability that has or may
result from or be suffered by the Lessee arising out of or in
connection with this lease, and the Lessee's operation hereunder,
14, CLAIMS, The Lessee shall defend, payor settle any and
all liability, demands and claims by or in favor of an Cfperson ~
including, but not limited to, the Lessee's agents, servants or
employees, against the Lessor, its departments, agencies, and
authorized personnel arising out of, or in connection with this
lease or the Lessee's operation hereunder, and to forever hold
harmless the Lessor, its departments, agencies, agents and
5
personnel from any such liabilities, demands or claims asserted
by any of the aforedescribed, including cost of suit, attorney's
fees and any other expenses in connection therewith, and to pay
or settle any claims for the injury, loss or damage to personnel
or property of or under the control of the Lessor arising out of
this contract or the Lessee's operation hereunder,
15, INSURANCE
A,
The Lessee shall carry and provide
during the term of this contract, at Lessee's expense, the
following insurance coverage:
(1) Workmen's Compensation and Employee's Liability
Insurance, and any other insurance required by any
employee benefit act or otherwise required by law,
(2) Property damage, liability, protective and
i~demnity insurance covering the Lessee's op-
erations, and such other operations of the Lessee
in and about the Lessor's property, subject to the
approval of the Lessor, and such other insurance
coverage as may be required by the Lessor, Said
insuran~e shall be with a company with a Best's
Insurance Guide, Latest Edition, rating of A:AAA
or better, and a certificate of insurance shall be
furnished the Lessor in an amount not less than
$100,000,00 per person and $300,000,00 per acci-
dent for bodily injury liability and $100,000,00
for property-damage for anyone accident,
from any such liabilities, demands or claims
asserted by any of the aforedescribed, including
cost of suit, attorney's fees and any other
expenses in connection therewith, and to payor
settle any claims for the injury, loss or damage
to personnel or property of or under the control
of the Lessor arising out of this contract or the
Lessee's operation hereunder,
B, All. insurance policies shall be issued by com-
panies authorized to do business under the laws of the State of
Florida and must be acceptable to the Lessor,
If the operation
of the Lessee includes any hazards excluded by any "standard
exclusion" of. the policy, such "standard exclusion" shall be
eliminated from the policy. Any and all of said insurance to be
non-cancellable without a thirty-day written notice of cancella-
tion first being given to the Lessor, The Lessee shall furnish
certificates of insurance to the Lessor on all required insurance
prior to occupancy of the premises,
The public liability and
property damage insurance shall name the Lessor as one of the
parties insured,
C, Compliance by the Lessee with the foregoing
requirements as to the carrying of insurance shall not relieve
6
the Lessee of its liability and obligations under this section or
any other portion of this lease,
16, INSOLVENT, ETC,
If the Lessee shall become insolvent
or
.1=
l~
bankruptcy proceedings shall be begun by or against the
Lessee before the end of said term, the Lessor is hereby irrevo-
cably authorized at its option, to forthwith cancel this lease,
as for a default,
Lessor may elect to accept rent from such
receiver, trustee, or other judicial officer during the term of
this occupancy in their fiduciary capacity without affecting
Lessor's rights as contained in this contract, but no receiver,
trustee or other judicial officer shall ever have any right,
title or interest in or to the above-described property by virtue
of this contract,
17, HEIRS AND ASSIGNS, This contract shall bind the Lessor
and its assigns or successors, and the heirs, assigns, adminis-
trators, legal representatives, executors or successors as the
case may be, of the Lessee,
It is understood and agreed
18. TIME OF THE. ESSENCE,
between the parties hereto that time is of the essence of this
contract and this also applies to all terms and conditions con-
tained herein,
The rights of the Lessor under this lease
19, RIGHTS,
shall be cumu1ativ'e and failure on the part of the Lessor to
exercise promptly any rights given hereunder shall not operate to
forfeit any of the said rights,
It is hereby understood and
20, SIGNS OR ADVERTISING,
agreed that no signs or advertising are to be used in connection
with the premises leased hereunder without first obtaining
written approval of Lessor which approval will not be unrea-
sonab1y withheld.
21, ASSIGNMENT, SUBLET AND ALTERATIONS,
The Lessee shall
not assign this lease, either as an absolute transfer of his
title or interest therein or thereto or as security for a loan,
nor sublet the premises, or any part thereof nor use the same, or
any part thereof, nor permit the same, or any part thereof, to be
used for any other purpose than as above stipulated, nor make any
7
alterations therein w,ithout the prior written consent of the
Lessor,
22. TAXES, Should any taxes be imposed upon the premises
involved in this lease, or upon the owner, Lessor, Lessee,
occupant or whomsoever, from any source whatsoever, the same
shall be the responsibility of the Lessee and the Lessee shall
pay same promptly,
23, MAINTENANCE OF PROPERTY, The Lessee agrees to keep the
property clean and free and clear of debris.
24, LIEN, A, The Lessee agrees that the Lessor shall have
a lien against any airplane, her appurtenances and contents for
unpaid sums due or to become due for the use of the airport
facilities or services or damage caused to any property of the
Lessor,
B. Lessee agrees that he will keep the leased prem-
ises and any buildings that may be erected thereon at all times
free and clear of any and all liens in anywise arising out of the
activities or use thereof by Lessee, provided, however, the
Lessee may in good faith contest the validity of any lien,
25, MAINTENANCE, The Lessee agrees to maintain the demised
premises in a clean condition and to maintain an adequate number
of covered metal waste containers at suitable locations, and
shall deposit all trash and waste therein, and shall arrang~ for
the proper dispositio~ off the Airpprt of such trash, waste or
refuse at its cost and expense, Further, Lessee agrees that the
areas not paved shall be maintained by it in a neat condition,
and that grassed areas shall be mowed regularly and shrubs will
be trimmed so as to maintain the premises in a clear and attrac-
tive condition. Any areas not grassed or paved shall be sta-
bilized by the Lessee and the leased premises shall be so
utilized that use of the premises by aircraft or vehicles will
not cause dust, debris or waste to be blown about or raised so as
to interfere with or disturb the use or enjoyment of adjacent or
adj oining premises, Further, that the Lessee shall keep and
maintain the leased premises and any buildings that may be
erected thereon in a neat and clear condition,
8
9
once peacefully surrender and deliver possession to the Lessor of
all of the lands hereby leased and all of the improvements
thereon to which the Lessor is entitled hereunder, in good repair
in accordance with the covenant herein contained to maintain and
repair,
31, NON-EXCLUSIVE USE. It is understood and agreed that
nothing herein contained shall be construed to grant or authorize
the granting of an exclusive right within the meaning of Section
308 of the Federal Aviation Act of 1958 or its successor,
32, PAYMENT OF ARREARAGES,
Concurrent with the execution
of this supplemental lease, the Lessee does hereby agree to pay
the arrearage due under the provisions of the lease agreement
entered on the 6th day of November, 1980, in the sum of
$15,509,61. It is hereby represented by both parties that said
sum has been paid with the execution of this document and that
all arrears therefor are current, it being provided that the
first payment under the terms stated herein shall commence on the
16th day of May, 1986,~
33. SPECIAL CONDITIONS, It is recognized by these parties
that one GEORGE BUTLER formerly was involved with the operation
of the fixed base operation under the lease dated November 6,
1980, and that because of certain problems and difficulties with
said operation, the parties do hereby agree that the aforesaid
GEORGE BUTLER is no longer involved in the operation of this
fixed base operation. It is further agreed by the Lessee that he
will not be in anywise, during the time and length of this
supplemental lease, involved in any fashion whatsoever in the
operation of Marathon Air Services or any of its satellite
operations connected with the Marathon Airport,
34, APPEAL OF CIRCUIT COURT CASE, The parties agree and
understand that an appeal from the decision of the Circuit Court
of Monroe County is now pending before the Third District Court
of Appeal located in Miami, Florida, and that concurrent with the
execution of this agreement, said appeal will be dismissed.
Proper pleadings evidencing said dismissal will be prepared and
10
executed concurrent with the execution of this document and
relayed to said Court indicating said dismissal,
It is understood by these parties that the
35, RENEWAL,
Lessee has requested a supplemental lease indicated by the terms
of this lease for a period of one and one-half (1%) years, and
that at the conclusion of the term set forth in the first para-
graph hereof, the parties do hereby agree that the party of the
second part, the Lessee, may indicate its desire to renew said
lease for a period of ten (0) years with an option for an
additional ten (10) years on terms and conditions to be under-
stood and negotiated by these parties, it being understood that
the remuneration due shall be predicated on what is the customary
or usual charges for like enterprises in Monroe County,
36. SEVERABILITY, In the event any covenant, condition or
provision herein contained is held to be invalid by any court of
competent jurisdiction the invalidity of any such covenant,
condition or provision shall in no way affect any other covenant,
condition or provision herein contained; provided that the
invalidity of such covenant, condition or provision does not
materially prejudice either Lessor or Lessee in its respective
rights and obligations contained in the valid covenants, con-
ditions or provisions of this lease.
37, NOTICE, . It is understood ,and agreed between the
parties hereto that any written notice required under the terms
of this lease to be given to the Lessor would be given by Cer-
tified Mail - Return Receipt Requested and addressed to:
Director of Airports, Monroe County
Key West International Airport
South Roosevelt Boulevard
Key West, Florida 33040
and, any written notice required under the terms of this lease to
be given to the Lessee would be given by Certified Mail - Return
Receipt Requested and addressed:
Marathon Air Services, Inc,
Marathon Airport
Marathon, Florida 33050
38. SPECIAL CLAUSES.
A,
SCHEDULE OF RATES,
The Lessee shall present a
schedule of rates and charges to the Lessor for approval and such
11
rates and charges shall prevail unless disapproved by Lessor,
B.
DESTRUCTION OF PREMISES,
In the event the prem-
ises shall be destroyed or so damaged or injured by fire or other
casualty during the life of this lease, whereby the same shall be
rendered untenantable, then the Lessor shall have th~ right to
render said premises tenantable by repairs within ninety (90)
days therefrom, If saId premises are not rendered tenantable
within said time, it shall be optionab1e with either party hereto
to cancel this lease, and in the event of such cancellation the
rent shall be paid only to the date of such fire or casualty.
The cancellation herein mentioned shall be evidenced in writing,
C, SERVICES, The Lessee agrees that in furtherance
of the privileges and uses permitted hereunder and described in
section 26 of this lease:
(1) To'furnish good, prompt and efficient service
adequate to meet all the demands for its service
at the Airport,
(2) To furnish said service on a fair, equal and
nondiscriminatory basis to all users thereof, and
(3) To charge fair, reasonable and nondiscriminatory
prices for each unit of sale or service; PROVIDED
that the Lessee may be allowed to make reasonable
and nondiscriminatory discounts, rebates or other
similar types of price reductions to volume
purchasers,
(The word "service" as used in sub-sections (1),
(2) and (3) of Subdivision 37, C" shall include
furnishing of labor, parts, materials and sup-
plies, -including the sale thereof, as well as
furnishing service.)
D, RELOCATION OF AIRPORTS. That in the event the Lessor
relocates its airport facilities at another airport, the Lessor
hereby agrees that if adequate facilities are provided to said
Lessor or funds may be furnished to the Lessor through certain
appropriate granting agencies of the state or federal government
at its new airport site, the Lessor agrees to provide such
facilities furnished to it or cause the construction of faci1-
ities through any such grants for the benefit and use of the
Lessee.
Furthermore, if the Lessee agrees to locate to the
relocated Airport, they will renegotiate and a new lease written,
E,
LIMITATIONS.
(1)
This lease and all provisions
thereof shall be subject and subordinate to all the terms and
conditions of the instruments under which Lessor received said
12
. .
property from its former owners, and Lessor's agreements with the
United States of America, and shall be given only such effect as
will not conflict or be inconsistent with such terms and con-
ditions,
(2) This lease shall be subordinate to the provisions
of any existing or future agreement between the Lessor and the
United States of America, relative to the operation and mainte-
nance of the Airport,
F.
PARKING,
Lessee agrees that the premises demised
herein will be so utilized as to provide vehicle parking areas
for all of Lessee's purposes and business invitees of Lessee. No
vehicle parking shall be permitted by Lessee, or business invit-
ees, on aircraft parking ramps, on roads, rights-of-way, or
properties adjacent to the leased premises, unless such adjacent
properties are leased to Lessee.
G, REPAIRS, The Lessee agrees that any repair parts for
aircraft or components not being worked on shall be stored in
such a manner as to be safe in the event of Windstorm or other
act of nature, and shall be screened from public view by a
structure of plantings of an aesthetically pleasant nature,
IN WITNESS WHEREOF the parties hereto have caused these
presents to be executed by their respective officials the day and
year first above written.
COUNTY OF MONROE,
STATE OF FLORIDA
By
Mayor/Cliairman of the Board
of County Commissioners of
Monroe County, Florida
(Seal)-
Attest:
Clerk
(Corporate Seal)
Attest:
13
APPRO'" 'D AS TO FORM
AND L SUFFICIENCY. ;/) J .
BY , ~~ 1
Attorney's Office " I
Secretary
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