Okaloosa County BOCC — February 17, 2015 — Amendment to Generic Hangar Lease — agenda request — reading text

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: February 17, 2015 TO: Honorable Chairman and Members of the Board FROM: Sunil Harman SUBJECT: Amendment to Generic Hangar Lease DEPARTMENT: Airport BCC DISTRICT: All STATEMENT OF ISSUE: The Board is requested to approve a change to the standard hangar leases to eliminate the requirement for the leasing of a 10 foot setback beyond the hangar foot-print and waive that requirement for all hangar lessees currently paying for the set back square footage and authorize a two year extension to their lease terms at the Destin/Ft. Walton Beach and Bob Sikes Airports. BACKGROUND: In April and May 2004, the Department of Airports Staff held a number of meetings with hangar lessees to discuss the development of standard hangar leases that will go into effect at the expiration of the initial 20-year terms of the hangar lease. Also discussed were allowable uses, activities and additional items that were requested by lessees and the Department's staff. At the August 3, 2004 Board of County Commissioners meeting, the Airports Director recommended changes for standardized hangar leases for DTS and CEW for the Board's consideration and approval. The Board requested additional discussion regarding the changes and tabled the generic lease without action pending further coordination with the lessees and the County Attorney. At the August 17, 2004 Board of County Commissioners meeting, the Airports Director recommended revised changes to the generic hangar leases for DTS and CEW to the Board and the Board approved the generic hangar leases with all recommended changes. At the December 4, 2007 Board of County Commissioners meeting, the Board approved to extend all hangar leases as voted on in 2004 with the stipulation that when the lease extension option is exercised begins as a renewal, the lessee would be required to pay the prevailing appraised fair market lease rate. This stipulation was also adopted for hangars that were assigned or sold, at which time the prevailing appraised fair market value rates would become effective. As part of the item, the Airports Director also recommended adding a requirement to lease a setback area to the edge of the taxilane pavement, as the lessees were already encumbering the area by parking vehicles and or airplanes or otherwise installing and storing equipment. During the ensuing discussion concerns were raised about the actual length of the setback as the taxilane safety area to enable the safe clearance of wings of maneuvering airplanes encroached into the proposed setback area being proposed for consideration. Although the Board discussed deleting the language regarding the setback around the hangars, the minutes of the meeting show that rejecting the setback was not included in the motion resulting in the Department of Airports requiring the leasing of a 10-foot setback in 13 instances of lease renewals, assignments and sales with the County Attorney and Board's approval. On June 12, 2013, after the Department of Airports staff reviewed the minutes of the referenced meetings, it brought the discrepancy between the Board's approval and implementation of the unapproved practice of including the 10 foot setback to the County Attorney who agreed with Staff that the requirement to lease the 10 foot setback should be discontinued going forward. However this leaves lessees, currently paying for the 10 foot setback, paying for space that the others will not be paying for in the future. In order to set this right and prevent claims of inequity, the Director of Airports is recommending the Board's approval with the discontinuance of the 10 foot setback requirement and clarification that the hangar owners will only pay for the actual square footage under the footprint of their hangars. Furthermore, it is recommended that the Board waive the requirement of the setback for all hangar owners currently paying for the set back square footage and authorize a two year extension to their lease terms. OPTIONS: Approve, Reject or Table. RECOMMENDATIONS: It is Staff's recommendation that the Board approve a change to the standard hangar leases to eliminate the requirement for the leasing of a 10 foot setback beyond the hangar foot- print and waive that requirement for all hangar lessees currently paying for the set back square footage and authorize a two year extension to their lease terms at DTS and CEW Airports. RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator