Broward County Commission Regular Meeting
Director's Name: Mark Gale
Department: Aviation Division: North Perry Airport
Information
Requested Action
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MOTION TO APPROVE Agreement of Lease between Broward County and Bobby’s Landing, LLC., for property located at North Perry Airport, commencing on June 1, 2024, and terminating on the last day of the thirtieth lease year; and authorize the Mayor and Clerk to execute same.
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Why Action is Necessary
Chapter 2, Section 2-40(a) of the Broward County Code of Ordinances, requires the Broward County Board of County Commissioners (“Board”) to authorize any commercial activities or occupancy of any portion of Broward County’s Fort Lauderdale-Hollywood International Airport (“FLL”) and North Perry Airport (“HWO”).
What Action Accomplishes
Approves an Agreement of Lease (“Agreement”) between Broward County (‘County”) and Bobby’s Landing, LLC. (“Lessee”) to construct a Fixed Base Operator (“FBO”) to provide aeronautical general aviation, aircraft storage, and maintenance services at HWO.
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Previous Action Taken
None
Summary Explanation/Background
THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
This action approves the Agreement between County and Lessee to provide general aviation service business at HWO.
On December 31, 2022, and January 7, 2023, the Broward County Aviation Department (“BCAD”) advertised a Request for Letters of Interest (“RLI”) for a ten-acre parcel of land on the Northeast side of HWO. BCAD periodically advertises RLI’s to develop vacant property at HWO to meet its current and future needs of its users and increase revenue for HWO. BCAD received five developmental proposals for the parcel on the Northeast side of HWO.
BCAD staff reviewed each proposal and considered the strength, weakness, proposed investment, and the current and future needs of HWO as related to each proposal. Lessee was identified as the proposal that committed to the largest capital investment in HWO and best matched the aeronautical needs of HWO.
As part of HWO’s development plan in the Agreement, Lessee will lease ten acres of undeveloped land on the Northeast side of HWO (“Development Parcel”) and add the existing parcel under the “Existing Lease” of ten acres which consists of two 10,000 SF hangars, offices, aircraft tie-down ramp, and a fuel farm (“Existing Parcel”) to this Agreement. The Existing Lease will terminate on the commencement date of the proposed Agreement on June 1, 2024.
The Development Parcel and the Existing Parcel together will be approximately 20 acres and home to Lessee’s new FBO. The development and expansion plan will consist of a 5,000 square feet terminal building, 70 tie-down spaces, two helicopter pads, hangar rental/aircraft storage, office rental, maintenance facility, accident aircraft recovery area, and fuel farm rehabilitation. The fuel farm will include 10,000-gallon JetA fuel farm and associated equipment, 15,000-gallons AvGas and associated equipment, including self-fuel operations and four fuel trucks/mobile fuelers.
The total Minimum Capital Expenditure required in the Agreement is $12.4 million. The project infrastructure will be developed in a single-phase approach with completion of construction within two years. The Agreement is for a term of 30 years and has an amortization period of 25 lease years commencing on the first day of the fourth lease year. Lessee shall have a due diligence period which is the effective date and ending on the last day of the first lease year for the Development Parcel. Before the expiration of the due diligence period, if Lessee determines the Development Parcel is not suitable for development or use permitted by the Agreement, Lessee may terminate all of Lessee rights to the Development Parcel by giving written notice to County. If Lessee terminates its rights to the Development Parcel, the Agreement term shall end on the last day of the second lease year on May 31, 2026.
The proposed Agreement has been reviewed and approved as to form by the Office of the County Attorney.
Source of Additional Information
Mark E. Gale, A. A. E., CEO/Director of Aviation, (954) 359-6199
Fiscal Impact
Fiscal Impact/Cost Summary
Beginning on the effective date of the Agreement, Lessee will pay the County $236,135 for the existing parcel through the end of the first lease year. No rent shall be due or payable for the Development Parcel during the period from the commencement date through the last day of the third lease year.