Broward County Commission Regular Meeting
Director's Name: Mark Gale
Department: Aviation Division: Business
Information
Requested Action
title
A. MOTION TO WAIVE Section 39.3, Non-Terminal Rates and Charges - Fort Lauderdale-Hollywood International Airport and North Perry Airport, Broward County Administrative Code, to provide JetBlue Airways Corporation with two, five-year lease term extension options which, if exercised, would result in a total aggregate lease term of 40 years, and permit an amortization period of 25 years for investment in new facilities, finding that there is good cause for such waiver.
ACTION: (T-11:08 AM) Approved.
VOTE: 9-0.
B. MOTION TO APPROVE Agreement of Lease between Broward County and JetBlue Airways Corporation for the lease and use of 19 acres at Broward County's Fort Lauderdale-Hollywood International Airport; and authorize the Mayor and Clerk to execute same.
ACTION: (T-11:08 AM) Approved.
VOTE: 9-0.
body
Why Action is Necessary
Motion A: The Broward County Board of County Commissioners (“Board”) must approve any waiver of the Broward County Administrative Code (“Administrative Code”).
Motion B: Chapter 2, Section 2-40(a) of the Broward County Code of Ordinances requires that the Board authorize any commercial activities or occupation of any portion of Broward County's Fort Lauderdale-Hollywood International Airport ("FLL").
What Action Accomplishes
Motion A: Waives Section 39.3 of Administrative Code to provide JetBlue Airways Corporation with the ability to potentially extend the term of the Agreement of Lease (“Agreement”).
Motion B: Approves the Agreement to allow JetBlue Airways Corporation (“JetBlue”) to lease and use Broward County-owned property at FLL.
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 MOTIONS.
Motion A
This action waives Section 39.3 of the Administrative Code to provide JetBlue with the ability to potentially extend the term of the Agreement to a total aggregate term of 40 years and permit a 25-year amortization period for the minimum capital expenditure requirement of $40,000,000 investment in capital improvements in new facilities.
Motion B
JetBlue desires to enter into an Agreement with Broward County to develop and occupy approximately 19 acres at FLL (“Premises”). The proposed Agreement has a one-year Due Diligence period, four-year Construction Period, and 25-years for amortization, for a total term of 30-years, with a minimum capital expenditure requirement of $40,000,000 for capital improvements that are required to be completed by the last day of the fourth lease year (“Completion Deadline”).
JetBlue proposes to construct an aircraft technical operations facility of approximately 150,000 square feet on the Premises. The aircraft technical operations facility will include hangar bays for repair work, parts storage, office space, and ground support equipment. Additional improvements include signage, paving of ramp, parking, and taxiways between the main taxiway and the Premises.
No rent shall be due during the period from the Effective Date through the Completion Deadline, as that period of time encompasses the Due Diligence Period and Construction Period. If JetBlue is in full compliance with the terms of the Agreement, JetBlue has the option to extend the Agreement for up to two additional five-year terms for a total additional aggregate extension term of ten years.
The proposed Agreement has been reviewed and approved as to form by the Office of the County Attorney.
Source of Additional Information
Mark E. Gale, CEO/Director of Aviation, (954) 359-6199
Fiscal Impact
Fiscal Impact/Cost Summary
Rent will commence on the first day of the fifth Lease Year based upon appraisal. The rent will be adjusted annually by the greater of 3% or the Consumer Price Index.