Broward County Commission Regular Meeting
Director's Name: Mark Gale
Department: Aviation Division: Business
Information
Requested Action
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MOTION TO APPROVE Third Amendment to the Agreement of Lease between Broward County and Signature Flight Support LLC, extending the term of the Agreement by one year and providing Signature the option to request an extension of the Agreement for up to five additional one-year terms; 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, requires that the Broward County Board of County Commissioners (“Board”) authorize any commercial activities or occupancy of any portion of the Fort Lauderdale-Hollywood International Airport.
What Action Accomplishes
Extends the current term of the Agreement of Lease between Broward County (“County”) and Signature Flight Support LLC (“Signature”) by one year and provides Signature the option to request an extension of the Agreement for up to five additional one-year terms to continue use of its current leasehold to support its activities related to Fixed-Base Operations (“FBO”) at Broward County’s Fort Lauderdale-Hollywood International Airport (“FLL”).
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Previous Action Taken
None.
Summary Explanation/Background
THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
This action extends the Agreement of Lease between County and Signature (“Agreement”) by one year, through November 30, 2026, and provides Signature the option to request an extension of the Agreement for up to five additional one-year terms to continue use of its current leasehold to support its activities related to FBOs at FLL.
On July 7, 1998, County and Signature Combs, Inc. (which was renamed to AMR Combs, Inc.) entered into the Agreement for the operation and maintenance of an FBO commencing on December 1, 2000, and terminating on November 30, 2020.
On January 24, 2008, County consented to an assignment of the Agreement from Signature Combs, Inc. to Signature Flight Support Corporation (which was then restructured into Signature Flight Support LLC).
On June 26, 2012, County and Signature entered into the First Amendment to the Agreement to revise the definition of Fair Market Value, exclude certain capital improvements from the appraised value until amortized, adjust the rent payment, and amend the leasehold, adding 7,393 square feet of ramp space.
On November 10, 2020, County and Signature entered into the Second Amendment to the Agreement to extend the Agreement for an additional three years with two one-year renewal extension terms. Both renewal options were exercised by Signature in accordance with Section 3(a) of the Agreement, extending the term of the Agreement through November 30, 2025.
The proposed Third Amendment modifies the Agreement by extending the term by one (1) year, through November 30, 2026, and provides Signature the option to request an extension of the agreement for up to five additional one-year terms to allow Signature to continue use of its current leasehold to support its activities related to aeronautical services such as fueling, hangar storage, tie-down and parking, aircraft maintenance, and other similar FBO services at FLL. The Third Amendment also updates and clarifies other provisions in the Agreement, including termination appraisal provisions.
The proposed Third Amendment 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 first year after approval of this amendment will be $2,311,996. Thereafter, the rent will be adjusted by the consumer price index or three percent, whichever is greater.