Okaloosa County BOCC — October 21, 2014 — Proposal and Correspondence for FBOs at DTS — reading text

—_ NS a Destinwwset A JAY ODOM COMPANY October 14, 2014 Sunil Harman, A.A.E., IAP Okaloosa County Director of Airports 1701 State Road 85N Eglin Air Force Base, FL 32542-1413 RE: Proposal for Destin Jet and Regal Air to Operate at the Destin Airport within the Constraints of Market Financial Conditions Dear Mr. Harman: In order to meet our mutual goal of providing a global long term solution to the financial and operational issues at the Destin Airport, | submit the following: Financial issues: A. Destin Airport can only support a certain level of fuel sales. B. County Department of Airports loss of revenue due to downturn in activity at the Destin Airport. Operational Issues: A. Noise from Vertol helicopters. Proposal to address these issues: 1. Operate Destin Jet and Regal Air of Destin under common ownership. The Destin Jet lease and the Regal Air lease will remain as they are with all terms of their leases to remain the same, except as follows: a. Destin Jet agrees to an increase in its fuel flowage to .075 per gallon. b. Regal Air Destin agrees to an increase in its fuel flowage rate to .075 per galion. c. Regal Air Destin agrees to make a $50,000.00 principal payment on its remaining balance owed to Okaloosa County for the Assumption of Miracle Strip Aviation’s past due lease payments and reamortize the remaining balance over a 24 month period. d. Regal Air Destin agrees to remove all signage that says ‘Regal Air. 1 Destin Jet Way - P.O. Box 1735 - Destin, FL 32541 - 850.424.6890 __- Sh Destin «ot A JAY ODOM COMPANY e. Correct the Destin Jet expiration date from February 24, 2044 to April 14, 2049. Destin Jet’s lease expiration date is April 14, 2049. This is 40 years after the Date of Beneficial Occupancy (April 15, 2009) as determined by the County (See Exhibit A). The lease expiration date should be 40 years after the Date of Beneficial Occupancy, which makes the lease termination date April 14, 2049. The attached letter (Exhibit A) dated July 18, 2014 says to correct this mistake would need Board of County Commissioners approval. A mistake was made by starting the original 20 year lease term and the additional 20 year extension from the Lease Effective Date of February 26, 2004 and running 40 years until February 26, 2044, instead of starting the 40 year lease term from the Date of Beneficial Occupancy April 15, 2009 and ending April 14, 2049. This change in the lease expiration date will correct this mistake. 2. Vertol will enter into an agreement with the County for its operations at the Destin Airport and the Crestview Airport for an annual fee not to exceed $2,000 per year. 3. Vertol will agree not to operate a helicopter engine (meaning running of a helicopter engine) on the Destin Jet ramp after 10:30pm or before 8:00am. This does not preclude Vertol from parking helicopters, towing helicopters, or working on helicopters on the Destin Jet ramp as long as the helicopters’ engines are not running after 10:30pm or before 8:00am. Vertol will work towards moving the running of helicopter engines at all times to the south ramp (Regal’s ramp) as it can build new facilities on the south end to accommodate this. A new office building next door to the existing, large hangar will have to be added. A new helicopter pad will be constructed by the County at the south end of the taxi way. The maximum time to fully comply with not running helicopter engines on the Destin Jet ramp at all times will not exceed 5 years from the date all the documerits needed to implement | numbers 1 — 3 above are fully executed and approved by the Okaloosa County Board of / 1 Destin Jet Way - P.O. Box 1735 - Destin, Fl 32541 - 850.424.6890 Okaloosa County Airports = « Gane yy EXHIBIT A July 18, 2014 Destin Jet, LLC Jay Odom 1 Destin Jet Way P.O. Box 1735 Destin, FL 32541-1013 Re: Adjustment to Base Ground Rent (CPI) Dear Mr. Odom: In accordance with your Lease Agreement with Okaloosa County dated February 26, 2004, your lease, Article 6.2.A., states, “The annual ground lease for each successive five (5) year period of the term of this Lease shall be increased to reflect the increase in the Consumer Price Index (“CPI”) from the DBO (as defined in Article V). The “CPI shall be the revised Consumer Price Index for All Urban Consumers for all items —- U. S. City Average, published by the Bureau of Labor Statistics, U. S. Department of Labor, 1982- 84=100 (CPI-U).” Since the County Attorney denied your request, letter dated April 24, 2014; to extend the expiration date without Board approval the CPI was accomplished with the DBO date of April 15, 2009 which was given to us by the City of Destin. The attached Bureau of Labor and Statistics, Consumer Price Index calculator gave us the following figures: Current to New Yearly 81,919-75 90,840.78 Tax 4,915.19 5,450.45 Total 86,834.94 96,291.23 Monthly 6,826.65 7,570.07 Tax 409.60 454.20 Total 7,236.25 8,024.27 1701 State Road 85 N Eglin Air Force Base, Florida 32542-1498 (850) 651-7160 FAX: (850) 651-7164 Your new ground lease fee will be billed starting May 1, 2014. Thank you for your continued interest in the Destin/Ft. Walton Reach A irport If you have any cuestions EES SS Set me en tet em pate BE, Bas RUE wee LE Settee Rae te CLES Ry te please contact us. > Sincerely, "Jon P. Morris, C.M. Administrative and Finance Manager Attachments: (2) CPI Inflation Calculator Screenshot Invoice #12732 ICPI Inflation Calculator CPi inflation Calculator $ 81,919.75 noes Has the same buying power as: in2o4 000 About this calculator Mobile Browser? View full screen. Page 1 of 1 Okaloosa County Airports State of Florida October 15, 2014 Mr. Jay Odom Crystal Beach Development Box 1735 Destin, FL. 32540 Re: Acceptance of settlement proposal Dear Mr. Odom: I am writing to acknowledge receipt of your settlement offer dated October 14, 2014 and the Department of Airports’ conditional acceptance, subject approval by the County’s Board. Thank you for your settlement proposal reconciling both the community compatibility concerns from the Vertol operation and the fiscal shortfalls for the self sufficient operation of Destin Airport. J am confident that it will be well received by both the community and the County. The item will be placed on the October 21, 2014 meeting agenda of the Okaloosa County Board of County Commissioners with a staff recommendation for approval of the agreement. The meeting will be held at 6:00 PM in the Okaloosa County Water and Sewer Building, located at 1804 Lewis Turner Boulevard in Ft Walton Beach. Sincerely, uni an, A.A.E., [AP Airports Director Ce: County Administrator County Attorney 1701 State Road 85 N Eglin Air Force Base, Florida 32542-1498 (850) 651-7160 FAX: (850) 651-7164