Broward County Commission Regular Meeting
Director's Name: Mark Gale
Department: Aviation Division: North Perry Airport
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 extend the term of the Agreement of Lease between Broward County and Van Wagner Aerial Media, LLC, at the same monthly rate in effect for the prior 12-month period.
ACTION: (T-10:57 AM) Approved.
VOTE: 9-0. Commissioner Rich and Vice-Mayor Geller voted in the affirmative telephonically.
B. MOTION TO APPROVE Fifth Amendment to the Agreement of Lease between Broward County and Van Wagner Aerial Media, LLC, extending the term of the Agreement on a month-to-month basis for a period not-to-exceed 12 months; and authorize the Mayor and Clerk to execute.
ACTION: (T-10:57 AM) Approved.
VOTE: 9-0. Commissioner Rich and Vice-Mayor Geller voted in the affirmative telephonically.
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Why Action is Necessary
Chapter 2, Section 2-40(a) of the Broward County Code of Ordinances, requires that the Broward County Board of County Commissioners (“Board”) authorize commercial activities or occupancy of any portion of the Broward County’s Fort Lauderdale-Hollywood International Airport (“FLL”) and North Perry Airport (“HWO”).
What Action Accomplishes
Motion A: This action waives Section 39.3 of the Broward County Administrative Code (“Administrative Code”) to permit a short-term extension of the Agreement of Lease (“Agreement”) between Broward County (“County”) and Van Wagner Aerial Media, LLC (“Van Wagner”) at the same monthly rate in effect for the prior 12-month period.
Motion B: This action approves the Fifth Amendment to the Agreement between the County and Van Wagner to extend the Agreement on a month-to-month basis for a period not-to-exceed 12 months.
Is this Action Goal Related
No
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 permit a short-term extension of the Agreement between the County and Van Wagner at the same monthly rate in effect for the prior twelve-month period, which is below market rent.
In anticipation of the expiration of the lease agreement on September 30, 2020, the Broward County Aviation Department (“BCAD”) and Van Wagner entered into negotiations for a new agreement of lease for the premises.
Prior to the onset of COVID-19 and the global pandemic, an appraisal was prepared and established the annual fair market rental value of $250,940, for the premises; however, COVID-19 has created uncertainty in market conditions, making it difficult to establish reasonable lease terms and determine the fair market value of the premises.
In light of this uncertainty, Van Wagner requested that the County extend the current lease agreement for one year at the current rental rate of $46,378. The extension period would provide Van Wagner with additional time to attempt to negotiate a new lease agreement or reassess its business operations at HWO.
The month-to-month extension at the current rental rate requires the Board to waive Chapter 39.3 (B) of the Administrative Code, which requires all leases for the County’s Airport property be valued at 8% to 15% of the Appraised Value following the end of the amortization period.
Motion B
This action extends the current term of the Agreement between the County and Van Wagner at the same monthly rate in effect for the prior 12-month period on a month-to-month basis for a period not to exceed 12 months, to allow time for BCAD to negotiate a new lease.
On November 23, 1993 (Item No. 2), the Board approved the lease agreement between Broward County and Aerial Sign Company, Inc. with a termination date of April 30, 2012, for a 5.17± acre parcel. The lease agreement allows the lessee to operate an aerial banner advertising and general aviation business at HWO. Additional information on the original agreement and subsequent Board actions is included in Exhibit 3.
In an effort to ensure continued occupancy at HWO by a long-term tenant in good standing, BCAD discussed the request for a short-term extension at current rates with the Federal Aviation Administration (“FAA”). The FAA did not object to a short-term extension and suggested a month-to-month extension that did not exceed 12 months.
The proposed Fifth Amendment provides time for BCAD to negotiate a new lease by extending the term of the existing lease agreement at the current rental rate based on a month-to-month basis beginning October 1, 2020, for a period not to exceed 12 months.
The proposed Fifth Amendment has been reviewed as to form by the Office of the County Attorney.
Source of Additional Information
Mark E. Gale, A. A. E., CEO/Director of Aviation, (954) 359-6199
Fiscal Impact
Fiscal Impact/Cost Summary
The estimated annual rent for this agreement is $46,378 in revenue to the BCAD.