Okaloosa County BOCC — April 19, 2016 — Exhibit D BCC letter

Exhibit D Board of County Commissioners 015 207 sgwflr/%& State of Florida November 3, 2015 Colonel Craig Johnson Base Civil Engineer 96'" Civil Engineering Group 96" Test Wing Eglin Air Force Base, Florida 32542 Re: Okaloosa County Enhanced Use Lease and Joint Use Agreement Proposal Dear Colonel Johnson, Okaloosa County is pleased to submit its proposal for consideration in the restructuring of the existing Department of Airports Enhanced Use Lease Agreement (EUL) and the Joint Use Agreement (JUA). First, let me extend the County’s deep appreciation for Eglin Air Force Base’s willingness to open negotiations which have significant impacts on the successful operation of the Destin-Fort Walton Beach Airport and our region into the future. Our goal is to continue to build upon our solid 57 year partnership to further benefit the airport system and Eglin. With respect to the EUL: - The County is offering to provide FAA grant proceeds of up to $411,983 towards the construction of a new waterline in support of the Aircraft Rescue and Fire Fighting Facility (ARFF) being constructed on Eglin which will greatly enhance the capability to provide responsiveness to both military and commercial operations. - The County is willing to partner on airfield improvement projects and request Federal Aviation Administration grant funding for eligible projects of mutual benefit to the Air Force and County, i.c., pavement rehabilitations, navigational aids, etc. In such cases, the County will also request authority to use State and Passenger Facility Charge revenues as matching funds. - The County is requesting Eglin to consider amending the lease to an annual base payment of $400,000 a year for the term of 50 years, with a performance supplemental annual payment of $0.50 for each enplaned (departing) passenger over an annual level of 400,000 enplanements. - The County is requesting to pursue the ability to construct a gas station/convenience store on its leasehold to generate an additional source of non-aeronautical revenue which will further reduce airline operating costs and diversify current revenue which is solely based 302 N. Wilson St e Crestview, FL. 32536 1804 Lewis Turner Blvd., Suite 100 (850) 689-5030 o Fax: 689-5059 Fort Walton Beach, FL 32547 (850) 651-7105 o Fax: 651-7142 Colonel Johnson November 3, 2015 Page 2 off of passengers of the airport. This request will also require appropriate tasteful signage with Eglin’s approval as authorized under Section 17.12 of the current EUL. With respect to the JUA: - If'the above EUL term of 50 years is granted, the County is requesting that the existing Joint Use Agreement be modified and extended to coincide with the EUL determination date. - The payment schedule of the JUA did not extend beyond Fiscal Year 2007 and has been continued annually as directed based on the raw inflation factors in the DoD National Defense Budget Estimates (“Green Book™), the County proposes to continue annual adjustments from the then current “Green Book”. The methodolo gy would utilize Budget Authority Category for Operation & Maintenance (excluding pay, fuel and medical) in the calculation. - Other administrative editorial updates and or modifications may also be required as Eglin deems necessary. Okaloosa County stands ready to facilitate any and all requests to expeditiously restructure the agreements. Thank you again for your consideration and as always, we value our partnership and look forward to working with you and your staff. Respectively Submi Nathan D. Boyles Chairman Ce: Mr. John Hofstad, County Administrator Mr. Tracy Stage, A.A.E., Interim Airports Director