Broward County Commission Regular Meeting
Director's Name: Mark Gale
Department: Aviation Division: Business
Information
Requested Action
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MOTION TO APPROVE Second Amendment to the Cargo Building Lease Agreement between Broward County and Southwest Airlines Co. for 12,500 square feet of air cargo building space at Broward County’s Fort Lauderdale-Hollywood International Airport; and authorize Mayor and Clerk to execute same.
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Why Action is Necessary
Approval by the Broward County Board of County Commissioners (“Board”) is required for the execution of the Second Amendment.
What Action Accomplishes
Approves the Second Amendment, extending the current term by five years to continue use of Southwest Airlines Co. (“Southwest”) current leasehold to support its activities related to its air cargo handling operation at Broward County’s Fort Lauderdale-Hollywood International Airport ("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 MOTION.
This action approves the Second Amendment extending the current term by five years to continue use of Southwest’s current leasehold to support its activities related to its air cargo handling operation at FLL.
On September 15, 2016 (Item 3), the Board approved a Cargo Building Lease Agreement (“Agreement”) providing Southwest the use of a total of 12,500 square feet in the Broward County-owned cargo building facility, specifically Bay 3 measuring 2,500 square feet, and Bay 4, measuring approximately 10,000 square feet. The term was for five years commencing on September 20, 2016, and terminating on the last day of the fifth lease year, September 30, 2021.
On August 24, 2021 (Item 94), the Board approved the First Amendment to the Agreement extending the term for an additional five (5) Lease Years, terminating on September 30, 2026.
Due to ongoing discussions and revisions between Broward County and Southwest for the proposed Second Amendment, the Broward County Aviation Department is submitting this action after the termination date of the prior lease term, which is September 30, 2026. The proposed Second Amendment extends the term of the Agreement for an additional five years, retroactively from October 1, 2026 through September 30, 2031, to allow Southwest to continue use of the existing leasehold to support its ongoing air cargo handling operations at FLL.
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, CEO/Director, Aviation Department, (954) 359-6199
Fiscal Impact
Fiscal Impact/Cost Summary
Rent for the Lease Year beginning October 1, 2026, will be $250,000 annually or $20,833 monthly. Rent will increase annually on first day of each subsequent Lease Year by the greater of 3% or the Consumer Price Index.