Broward County Commission Regular Meeting
Director's Name: Mark Gale
Department: Aviation Division: Business
Information
Requested Action
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MOTION TO APPROVE Sixth Amendment to First Amended and Restated Duty Free Concession Agreement between Broward County, Florida and Broward Duty Free, LLC to extend the term of the Agreement for a period of three years; and authorize the Mayor and Clerk to execute.
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Why Action is Necessary
In accordance with Chapter 26.4 of the Broward County Administrative Code, extensions to Concession Agreements require Broward County Board of County Commissioners (“Board”) approval.
What Action Accomplishes
Extends the term of the First Amended and Restated Concession Agreement (“Agreement”) between Broward County, Florida (“County”) and Broward Duty Free, LLC (“Duty Free”) for three years.
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 extends the term of the Agreement between the County and Duty Free for an additional three years.
On December 3, 2013 (Item No. 30), the Board approved the Agreement providing Duty Free with the non-exclusive right to operate a duty free concession at the Fort Lauderdale-Hollywood International Airport (“FLL”). The Agreement commenced on January 1, 2014, and was set to expire on December 31, 2024. The Agreement required a capital expenditure of no less than $4,550,000 and permitted only the sale of duty free merchandise at FLL to passengers traveling internationally.
On February 25, 2020 (Item No. 5), the Board approved the First Amendment to the Agreement reducing the percentage of privilege fees due to County from Duty Free on the first $1,000,000 of annual gross revenue from 17% to 9.37% for a five-year period, providing relief to mitigate Duty Free’s increased costs resulting from the increase to the Living Wage Ordinance.
On September 29, 2020, the County Administrator, authorized by Board action on June 16, 2020 (Item No. 68), approved the Second Amendment to the Agreement to waive the monthly Minimum Annual Guarantee (“MAG”) portion of the Privilege Fee payments for the months of April 2020, May 2020, and June 2020, resulting in a total MAG waiver amount of $534,234. MAG relief was provided through the Coronavirus Aid, Relief, and Economic Security.
On September 29, 2021, the County Administrator, authorized by Board action on June 1, 2021 (Item No. 70), approved the Third Amendment to the Agreement providing for MAG relief in the amount of $2,136,935 for the County’s 2021 Fiscal Year. MAG relief was partially funded by the Coronavirus Response and Relief Supplemental Appropriate Act in the amount of $139,601 and the remaining was funded by other unrestricted FLL funds in the amount of $1,997,334.
On June 1, 2022, the Director of Aviation, authorized by Board action on January 25, 2022 (Item No. 64), approved the Fourth Amendment to the Agreement providing rent and MAG relief in the amount of $930,123. The relief was provided by a grant through the American Rescue Plan Act of 2021.
On December 10, 2024 (Item No. 3), the Board approved the Fifth Amendment to the Agreement to extend the term for one year (i.e., through December 31, 2025), followed by a month-to-month extension for up to an additional one year (i.e., through December 31, 2026), and permit the sale of duty paid merchandise (excluding tobacco products and alcohol) to domestic passengers.
On December 4, 2025, the Broward County Aviation Department requested the Federal Aviation Administration’s (“FAA”) approval for an additional three year term, which was approved by the FAA on December 8, 2025.
Effective April 1, 2026, pursuant to the proposed Sixth Amendment, the Agreement will no longer renew on a month-to-month basis as provided by Section 5 of the Fifth Amendment to the Agreement and will instead be extended for an additional three year term (i.e., from April 1, 2026, through March 31, 2029). Additionally, the proposed Sixth Amendment modifies Duty Free’s midterm refurbishments requirement, now requiring Duty Free to invest no less than $300,000 to complete the required midterm refurbishments. Duty Free shall commence the midterm refurbishments no later than August 1, 2026, and shall complete all the approved midterm refurbishments no later than December 31, 2027. Also, since the proposed Sixth Amendment extends the Agreement beyond the expiration of the Living Wage Ordinance (i.e., September 30, 2026), living wage requirements will apply to the Agreement extension, per the First Amendment.
The proposed Sixth 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
On an annual basis, Duty Free will pay the County a Privilege Fee that is greater of the MAG (currently $1,933,724) or the percentage fee of gross revenues, as established in the Agreement.