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 Ordin...
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