Broward County Commission Regular Meeting
Director's Name: Mark Gale
Department: Aviation Division: Business
Information
Requested Action
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MOTION TO APPROVE Fourth Amendment to Advertising and Display Concession Agreement between Broward County and Clear Channel Airports, Inc. f/k/a In-Ter-Space Services, Inc., at Broward County’s Fort Lauderdale-Hollywood International Airport, to extend the term of the Agreement through March 31, 2028, and update certain terms and conditions.
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Why Action is Necessary
In accordance with Section 26.4 of the Broward County Administrative Code, Broward County Board of County Commissioners (“Board”) approval is required for concession agreements.
What Action Accomplishes
Extends the term of the Advertising and Display Concession Agreement (“Agreement”) between Broward County (“County”) and Clear Channel Airports, Inc. f/k/a In-Ter-Space Services, Inc. (“Clear Channel”) at Fort Lauderdale-Hollywood International Airport (“FLL”) through March 31, 2028.
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Previous Action Taken
None.
Summary Explanation/Background
THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
This action approves the Fourth Amendment to the Agreement between County and Clear Channel.
On February 27, 2018 (Item No. 45), the Board approved the Agreement, providing Clear Channel with the nonexclusive right to operate an advertising and display concession at FLL. The Agreement became effective on April 1, 2018, and had an initial termination date of September 30, 2023. The Agreement required a capital investment of $610,000 within one calendar year from the effective date, and an additional capital investment of no less than $70,000 during the third Contract Year. The Agreement also required a Midterm Refurbishment of no less than $90,000 in connection with the Option Period. As of November 2025, Clear Channel has certified that it has expended $961,602 on improvements for FLL.
On September 29, 2020, the County Administrator, as authorized by Board action on June 16, 2020 (Item No. 68), approved the First Amendment to the Agreement, which waived the monthly Minimum Annual Guarantee (“MAG”) payments for the months of April 2020, May 2020, and June 2020, resulting in a total MAG waiver amount of $306,051. The relief was provided in connection with funding made available under the Coronavirus Aid, Relief, and Economic Security Act.
On September 29, 2021, the County Administrator, as authorized by Board action on June 1, 2021 (Item No. 70), approved the Second Amendment to the Agreement, which provided MAG relief in the amount of $1,224,204 for the County’s 2021 Fiscal Year, with $81,440 funded through the Coronavirus Response and Relief Supplemental Appropriations Act, and the remaining $1,142,765 funded by other unrestricted FLL funds.
On June 1, 2022, the Director of Aviation, as authorized by Board action on January 25, 2022 (Item No. 64), approved the Third Amendment to the Agreement, which provided rent and MAG relief in the amount of $2,008,487 through the American Rescue Plan Act of 2021. Also, on June 1, 2022, the Director of Aviation approved Clear Channel’s request to exercise the Option Period, which extended the term of the Agreement through September 30, 2026.
The proposed Fourth Amendment extends Clear Channel’s operation of the advertising and display concession for an additional eighteen months, from October 1, 2026, through March 31, 2028, establishes a Partial Contract Year for purposes of calculating the applicable MAG and Percentage Fees, and updates certain terms and conditions of the Agreement. The extension will also allow the Broward County Aviation Department to conduct a new solicitation incorporating Broward County’s new Federal Small Business Element for Concessions (“FSBEC”) under its Airport Concession Disadvantaged Business Enterprise Program (“ACDBE”) Plan. ACDBE participation goals cannot currently be established for individual concession solicitations under the applicable federal regulatory framework. The FSBEC is a required component of the ACDBE program under 49 C.F.R. Part 23.26 and will provide an opportunity to expand small business participation in airport concession contracts under the current regulatory environment.
The proposed Fourth 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
Clear Channel will pay the County on an annual basis a Privilege Fee that is the greater of the MAG (currently $2,232,038) or the percentage fee of gross revenues, as established in the Agreement.