Broward County Commission Regular Meeting
Director's Name: Mark Gale
Department: Aviation Division: Business
Information
Requested Action
title
MOTION TO APPROVE Second Amendment to the Agreement of Lease between Broward County and Signature Flight Support Corporation, at Broward County’s Fort Lauderdale-Hollywood International Airport, extending the term of the Agreement for three additional years and providing for two one-year renewal extension terms; and authorize Mayor and Clerk to execute.
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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 any commercial activities or occupancy of any portion of the airport.
What Action Accomplishes
Extends the current term of the Agreement of Lease (“Agreement”) between Signature Flight Support Corporation (“Signature”) and Broward County (“County”) for an additional three years with two one-year renewal extension terms to continue use of its current leasehold to support its activities related to Fixed-Base Operations (“FBO”) at Broward County’s Fort Lauderdale-Hollywood International Airport (“FLL”).
Is this Action Goal Related
No
Previous Action Taken
None.
Summary Explanation/Background
THE AVIATION DEPARTMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
This action extends the current Agreement between Signature and the County for an additional three years with two one-year renewal extension terms to continue use of its current leasehold to support its activities related to FBO at FLL.
On July 7, 1998 (Item No. 102B), the Board approved a 20-year Agreement between AMR Combs, Inc. (“AMR”) and the County for the operation and maintenance of an FBO operation with a commencement date of December 1, 2000, through November 30, 2020.
On June 1, 1999 (Item No. 2), the Board approved a Consent to Transfer of Ownership between AMR and Signature. Additional information on the original agreement and subsequent Board actions is included in Exhibit 3.
The FLL Master Plan Update has identified several terminal expansion and modernization projects to increase space and enhance the overall customer experience. The Master Plan Update forecasts extending Terminal 3 to the west side of FLL, which would impact Signature’s current location. The extension to Signature’s Agreement provides for an additional term beyond the termination date of November 30, 2020, and potentially anticipates a new development lease on the west side of FLL.
The proposed Second Amendment allows Signature to continue use of its current leasehold to support its activities related to FBO at FLL. Signature provides aeronautical services such as fueling, hangaring, tie-down and parking, aircraft maintenance, and similar FBO services. The proposed Second Amendment modifies the Agreement by extending the term to November 30, 2023, and provides an option for two one-year renewal extension terms.
The proposed Second Amendment has been reviewed and approved as to form by the Office of the County Attorney.
Source of Additional Information
Mark E. Gale, CEO/Director of Aviation, (954) 359-6199
Fiscal Impact
Fiscal Impact/Cost Summary
The annual rent for the first year after this amendment will be $1,865,332. Thereafter, the rent will be adjusted by the consumer price index or three percent, whichever is greater.