Broward County Commission Regular Meeting
Director's Name: Mark Gale
Department: Aviation Division: Administration
Information
Requested Action
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MOTION TO APPROVE Second Amendment to the Signatory Terminal Building Lease Agreement between Broward County and Silver Airways LLC to modify leased premises at Broward County’s Fort Lauderdale-Hollywood International Airport and to update certain terms and conditions in the Signatory Terminal Building Lease Agreement; and authorize the Mayor and Clerk to execute same.
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Why Action is Necessary
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 occupation of any portion of Broward County’s Fort Lauderdale-Hollywood International Airport (“FLL”) for any purpose unless specifically authorized by Broward County (“County”).
What Action Accomplishes
Approves the Second Amendment to the Signatory Terminal Building Lease Agreement (“Signatory TBLA”) between the County and Silver Airways LLC (“Silver”).
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 Signatory TBLA.
On January 13, 2015 (Item No. 3), the Board approved the Signatory TBLA between the County and Silver’s predecessor in interest, Silver Airways Corp.
On August 11, 2016, the Director of Aviation executed a Consent to Change of Ownership for Silver Airways Corp., which resulted in Silver Airways LLC becoming the lessee under the Signatory TBLA.
On September 15, 2016 (Item No. 4), the Board approved the First Amendment to the Signatory TBLA to modify certain provisions within the Signatory TBLA and extend the Signatory TBLA term through September 30, 2026.
Additionally, on April 18, 2023 (Item No. 45), the Board approved the Forbearance Agreement between the County and Silver to resolve an ongoing financial dispute between the County and Silver. Silver has substantially complied with its obligations under the Forbearance Agreement and is working toward full compliance.
In Fiscal Year 2023, the Broward County Aviation Department conducted a Terminal Facility Audit to identify discrepancies in square footage across all leased premises at FLL. In accordance with the findings of such Terminal Facility Audit, this proposed Second Amendment will modify Silver’s leased premises, effective as of October 1, 2023. Silver has been paying applicable fees for the modified leased premises stipulated in the Second Amendment through its monthly rent invoice since October 1, 2023.
The proposed Second Amendment will, among other things, modify the leased premises under the Signatory TBLA and update certain terms and conditions in the Signatory TBLA.
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
The estimated annual rent for the first lease year is $1,307,812 and will be adjusted annually according to Chapter 39 of the Broward County Administrative Code.