Okaloosa County BOCC — November 15, 2016 — Okaloosa County Enhanced Use Lease Proposal

Board of County Commissioners State of Florida November 15, 2016 Jacklyn Crews Pujol Program Manager, Real Estate Development Portfolio Management Branch Air Force Civil Engineer Center Joint Base San Antonio Lackland, TX 78236-9853 Re: Okaloosa County Proposal to Amend Enhanced Use Lease (EUL), AFMC-EG-1-07-003 Dear Ms. Crews Pujol, Thank you for meeting with us to discuss our proposal for future partnerships at the Destin-Fort Walton Beach Airport. We are optimistic about building on our 58-year partnership optimizing Air Force resources while supporting Okaloosa County’s economic development. Commercial airlines started operating from Eglin Air Force Base in 1957 and were formalized in a joint agreement between the Air Force and Okaloosa County in 1972. To obtain revenue from this underutilized property, an EUL was granted by Eglin in 2001 to operate and maintain a regional airport on 108 acres. A new lease was granted in 2007 increasing the land to 130.8 acres; it was amended in 2013 extending the duration 25 years to run coterminous with another land lease between the County and Eglin. Eglin has leveraged $6+ million through this cooperative agreement to meet warfighter infrastructure requirements. At the same time, the airport has become the preferred aviation gateway to Florida's Gulf Coast. In reference to our Kickoff Meeting held on September 29, 2016 and the previous request letter dated November 3, 2015, Okaloosa County Enhanced Use Lease and Joint Use Agreement Proposal, at your request, please find the following proposal for your review. In addition to our EUL with the Air Force, Okaloosa County, Department of Airports (hereafter Airport) has continued to support Eglin’s airfield operations. After signing a leasehold for 3.7 acres in 2013, the Airport began construction of a $3.8 million Aircraft Rescue and Firefighting Facility (ARFF) that will house airfield response operations for the 96th Test Wing. The Airport also provided FAA grant proceeds of $411,983 towards the construction of a new waterline to support the ARFF. During the construction of the Destin Executive Airport Air Traffic Control Tower, the Airport added a Flight Data Input/Output (FDIO) system and second shout line to the Air Traffic Operations Center. The additional $169,500 in equipment and maintenance was added upon request of the Air Force to substantially enhance air traffic control and safety within the controlled Eglin airspace. As one of only 15 participants in the Military Airport Program (MAP), we have tremendous opportunities to partner on investments for airfield improvement projects. The MAP provides federal funds to support improvements such as pavement rehabilitations and navigational aids to joint-use airports like Eglin. However, the FAA restricts grants funds to airports with operational agreements of at least 20 years. With the current EUL terminating on June 23, 2038, there is less than two years for the Airport and Eglin to potentially capitalize on these opportunities. In order to leverage available Airport Improvement Program funding, we desire an amendment to the current lease term. We propose an extension of 50 years from the effective date of the amendment (new termination date of June 23, 2067). An extension in this range will 302 N. Wilson St • Crestview, FL 32536 1804 Lewis Turner Blvd., Suite 100 (850) 689-5030 • Fax: 689-5059 Fort Walton Beach, FL 32547