Broward County Commission Regular Meeting
Director's Name: Mark Gale
Department: Aviation Division: Business
Information
Requested Action
title
MOTION TO APPROVE Second Amendment and Assignment among Broward County, National Jets Real Estate Holdings, LLC, and OA National Jets Lease, LLC, assigning the Agreement of Lease to OA National Jets Lease, LLC and revising certain benchmark dates and requirements for the lease at Broward County’s Fort Lauderdale-Hollywood International Airport.
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Why Action is Necessary
Broward County Board of County Commissioners (“Board”) approval is required for execution of the Second Amendment and Assignment (“Second Amendment”) among Broward County (“County”), National Jets Real Estate Holdings, LLC (“National Jets”), and OA National Jets Lease, LLC (“OA”), which amends and assigns the Agreement of Lease (“Agreement”) at Fort-Lauderdale Hollywood International Airport (“FLL”).
What Action Accomplishes
Approves the Second Amendment to the Agreement and assigns the Agreement of Lease to OA National Jets Lease, LLC.
Goal Related Icon(s)
N/A County Commission
N/A Go Green
N/A MAP Broward
Previous Action Taken
None.
Summary Explanation/Background
THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE MOTION.
This action approves the Second Amendment to the Agreement and assigns the Agreement of Lease to OA National Jets Lease, LLC.
On May 24, 2022 (Item No. 46), the Board approved the Agreement between County and National Jets for a 29-year term, including a four-year construction period. The Agreement required National Jets to complete specified improvements and spend a minimum capital expenditure of $18,000,000 by the last day of the fourth lease year (i.e., May 31, 2026), and to provide a $1,800,000 construction letter of credit as security for such obligations.
On February 2, 2023, as authorized in the Agreement, the Director of Aviation executed the First Amendment, which revised the exhibits depicting the surveyed Current Parcel and Aircraft Fuel Farm Facility.
National Jets has experienced financial hardship in connection with the improvements to the Development Parcel. As a result, National Jets has not satisfied the minimum capital expenditure requirement or completed the improvements by the deadline established in the Agreement.
The proposed Second Amendment assigns the Agreement to OA and extends the construction period and deadline for completion of the improvements to September 30, 2029; defers commencement of rent for the Development Parcel to October 1, 2029; increases the minimum capital expenditure to $27,800,000; increases the construction letter of credit to $5,560,000; establishes construction milestones tied to draws on the letter of credit; and updates certain terms and conditions of the Agreement.
National Jets currently pays County $91,029 per month for the Current Parcel and Aircraft Fuel Farm Facility. OA will assume the obligation to pay rent for those parcels upon the effective date of the Second Amendment.
Upon the effective date of the Second Amendment, rent for the Development Parcel will be deferred through September 30, 2029. Rent will commence on October 1, 2029, at the rate to be set by appraisal.
The proposed Second 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, Aviation Department, 954-359-6199
Fiscal Impact
Fiscal Impact/Cost Summary
There is no fiscal impact.