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BOARD OF COUNTY COMMISSIONERS
AGENDA REQUEST
DATE: February 19, 2013
TO: Honorable Chairman and Members of the Board
FROM: Greg Donovan
SUBJECT: MSA Debt Repayment
DEPARTMENT: Airport
BCC DISTRICT: All
STATEMENT OF ISSUE: The Board is requested to approve a proposed debt repayment plan
from the new owners of the Fixed Base Operator contract at Destin Airport.
BACKGROUND: Miracle Strip Aviation, one of two Fixed Base Operators at Destin Airport,
was declared in default of its Lease on January 4, 2013, due to nonpayment of amounts owed in
rental and other fees and because it had ceased performing its obligation under the Lease to
provide and operate an FAA certificated repair station on airport premises. Miracle Strip was
given 30 days within which to cure these defaults or provide the County with a viable plan for
doing so. Since that time, we have learned that Miracle Strip owners have sold their interest in
the company to Regal Capital, LLC, a Florida Limited Liability Company. Regal Capital has
now submitted a proposed payment plan (attached) to liquidate the entire debt of $485,382.
Regal proposes to renovate the County owned passenger terminal as a $207,500 payment in-kind
toward the debt. Airport staff will require a detailed renovation plan, monitor the renovation
work, and review paid receipts to verify the cost and quality of the work. Regal also proposes to
make a cash payment of $100,000 and will sign a note for the remaining $177,882, to be
amortized over five (5) years at 4% interest, with the payment of the note to begin upon
acceptance of new lease terms to be renegotiated, as provided under Article VI of the FBO
Lease, Rents & Fees, based on the establishment of a second FBO, DestinJet, at the Airport.
Regal also requests approval to lease the Aircraft Maintenance Hangar to a fully certificated third
party maintenance operation, as a cure for that portion of the default. Assuming the BCC
approves this repayment plan and the proposal for replacement of a certificated maintenance
operation, Airport staff will then prepare an Assignment of Lease incorporating these terms for
final execution by Miracle Strip and Regal and approval by the BCC, prior to undertaking the
renegotiation of said Lease.
OPTIONS: Approve, Reject, Table.
RECOMMENDATIONS: Recommend approval of the repayment plan and approval to lease
the Aircraft Maintenance Hangar to a third party, to be incorporated into an Assignment of
Lease.
RECOMMENDED BY:
APPROVED BY:
James D. Curry, County Administrator