Broward County Commission Regular Meeting
Director's Name: Mark Gale
Department: Aviation Division: Administration
Information
Requested Action
title
MOTION TO APPROVE Eighth Amendment to the Signatory Terminal Building Lease Agreement between Broward County and Delta Air Lines, Inc., to add the Sky Club Expansion Premises to the Leased Premises, update certain terms and conditions in the Signatory Terminal Building Lease Agreement to accommodate the Sky Club Expansion Project, and extend the lease of the Temporary Premises in Terminal 2 to be used for Sky Club seating during the Sky Club Expansion Project, in substantially the same form as Exhibit 1; and authorize the Director of Aviation to make nonmaterial changes that do not increase the financial cost to Broward County and to execute the Eighth Amendment on behalf of Broward County provided it has been reviewed and approved as to legal sufficiency by the Office of the County Attorney.
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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 occupy any portion of the Fort Lauderdale-Hollywood International Airport (“FLL”) for any purpose unless specifically authorized by Broward County (“County”).
What Action Accomplishes
Approves the Eighth Amendment to the Signatory Terminal Building Lease Agreement (“Signatory TBLA”) between Broward County and Delta Air Lines, Inc., (“Delta”) in substantially the same form as Exhibit 1 to implement the Delta Sky Club Expansion Project (“Project”), and authorizes the Director of Aviation to make nonmaterial changes that do not increase the financial cost to the County and to execute the Eighth Amendment on behalf of the County.
Is this Action Goal Related
No
Previous Action Taken
None
Summary Explanation/Background
THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
On September 27, 2011 (Item No. 62), the Board approved the Signatory TBLA commencing on October 1, 2011, for a five-year period, expiring on September 30, 2016. On April 5, 2016 (Item No. 42), the Board approved the Fourth Amendment to the Signatory TBLA, which extended the term for an additional ten years, expiring on September 30, 2026. The Signatory TBLA has been amended seven times.
Delta approached the Broward County Aviation Department (“BCAD”) with a request to occupy additional space at FLL to expand the Delta Sky Club located in Terminal 2, which will require structural modifications to the terminal. The proposed Eighth Amendment to the Signatory TBLA is to add the Sky Club Expansion Premises to Delta’s leased premises, update certain terms and conditions in the Signatory TBLA to accommodate the Project, and extend the lease of the Temporary Premises currently being used for Sky Club seating during the Project.
Delta will design, construct, and lease an additional 2,420 square feet (Type 2) space in the Sky Club Mezzanine Level in Terminal 2 as a result of this Project. Delta’s estimated construction cost for the Project is $5,000,000 and expects to complete the Project in a period of ten months. Broward County’s Office of Economic and Small Business Development established a County Business Enterprise (“CBE”) participation goal of 25%. Delta committed to 25% CBE participation.
The proposed Eighth Amendment was not executed by Delta at the time of submission for this action. Consequently, due to time constraints associated with the design and construction of the Project, this action authorizes the Director of Aviation to make nonmaterial changes that do not increase the financial cost to the County and to execute the Eighth Amendment on behalf of the County, provided it has been reviewed and approved as to legal sufficiency 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 design and construction of the Project will be funded by Delta. After completion of the Project, the estimated annual rent increase will be $336,162 in revenue to BCAD, and will be adjusted annually according to Chapter 39 of the Broward County Administrative Code.