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 Second Amendment to the Agreement of Lease between Broward County and Flight Support & Logistics LLC, to, among other things, eliminate the Phase 2 Improvements and Phase 2 Minimum Capital Expenditure obligations, reduce the Term and Amortization Period, address disposition of the construction security deposit, and update certain terms and conditions.
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Why Action is Necessary
Broward County Board of County Commissioners (“Board”) approval is required for execution of the Second Amendment (“Second Amendment”) to the Agreement of Lease between Broward County (“County”) and Flight Support & Logistics LLC (“Flight Support”) for property located at North Perry Airport (“HWO”).
What Action Accomplishes
Approves the Second Amendment to the Agreement of Lease with Flight Support for property located at HWO.
Goal Related Icon(s)
☐County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
None.
Summary Explanation/Background
THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
This action approves the Second Amendment to the Agreement of Lease with Flight Support for property located at HWO.
On September 20, 2022 (Item No. 4), the Board approved an Agreement of Lease with Flight Support for approximately 4.9 acres of land at HWO. On October 10, 2023 (Item No. 3), the Board approved a First Amendment to the Agreement of Lease (as amended, the “Agreement”).
The Agreement required Flight Support to complete certain improvements to the leased premises in two phases and to spend a minimum Capital Expenditure amount of $355,000 for the Phase 1 Improvements, and $1,225,000 for the Phase 2 Improvements. Flight Support timely completed the Phase 1 Improvements and satisfied the Phase 1 Minimum Capital Expenditure obligations.
Before commencing the Phase 2 Improvements, Flight Support submitted a written request to the County to eliminate the Phase 2 Improvements and related Minimum Capital Expenditure obligations due to flooding at the leased premises. The Broward County Aviation Department advised Flight Support that, in consideration for eliminating those obligations, the Term and Amortization Period would each be reduced in accordance with the terms of the Agreement.
The proposed Second Amendment eliminates the Phase 2 Improvements and related Minimum Capital Expenditure obligations, reduces the Term from 24 to 18 Lease Years, reduces the Amortization Period from 20 to 14 Lease Years, provides for the return of the construction security deposit in the amount of $158,000, and includes a release by Flight Support relating to the Phase 2 Improvements, site conditions, and other matters addressed in the Second Amendment.
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 to the County.