Broward County Commission Regular Meeting
Director's Name: Mark Gale
Department: Aviation Division: Business
Information
Requested Action
title
MOTION TO APPROVE First Amendment to the Cargo Building Lease Agreement between Broward County and Delta Air Lines, Inc., at Broward County's Fort Lauderdale-Hollywood International Airport to extend the term for a period of five years until December 31, 2027; and authorize 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 provides that no person may conduct any commercial activities or occupy any portion of the Fort Lauderdale-Hollywood International Airport (“FLL”) for any purpose unless specifically authorized by Broward County (“County”).
What Action Accomplishes
Allows Delta Air Lines, Inc. (“Delta”) to continue to operate its air cargo handling operation at FLL.
Is this Action Goal Related
No
Previous Action Taken
None.
Summary Explanation/Background
THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
This action will extend the existing Cargo Building Lease Agreement with Delta to continue to operate its air cargo handling operation at FLL.
On December 5, 2017 (Item No. 3), the Board approved a Cargo Building Lease Agreement between the County and Delta for the use of a cargo bay, specifically Bay 1, measuring a total of 10,000 square feet and 13,648 square feet of adjacent ramp area in the County-owned cargo building facility at FLL. The term was for five years commencing upon execution and terminating on the last day of the fifth (5th) lease year or December 31, 2022.
The proposed First Amendment extends the term for a period of five years until December 31, 2027. Additionally, the proposed First Amendment includes representations by Delta regarding registration, use of the E-Verify system to verify the work authorization status of all new hires, and that prohibited telecommunications equipment is not used as a substantial or essential component of any system per Federal Acquisitions Regulations.
The proposed First Amendment to the Cargo Building Lease 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
The annual rent for the current fifth lease year is $197,829, plus applicable sales taxes. Future annual rent for the sixth lease year will increase by the greater of 3% or the Consumer Price Index, effective January 1, 2023.