HEADER

MEMORANDUM


TO: Honorable Chairperson and Members
Board of County Commissioners

FROM: M.R. Stierheim
County Manager


DATE:

SUBJECT: Resolution approving Lease
Agreement with F & E
Aircraft'Maintenance (Miami)
L.L.C.

STAFF RECOMMENDATION


It is recommended that the Board approve a lease agreement
("Agreement") between F & E Aircraft Maintenance (Miami), L.L.C. (F& E)
for Hangar No. 8 at Miami International Airport. This Agreement is for a
term of ten years from the date of availability of Hangar 8 with two five
(5) year renewals at F & E's option. F & E will make an investment of
approximately $2.6 Million to repair and renovate the facility according
to the South Florida Building Code. The County will grant credits against
the Building and Land rental payments over approximately 3.5 years of
the initial term of the Agreement.

MANAGER'S BACKGROUND


F & E, currently a Lessee at Miami International Airport (MIA) provides
maintenance service for aircraft and aviation-related equipment from its
facilities in Building 20.


F & E desires to expand its operations at MIA and has approached the
County with a request to lease hangar building 8 the current Avborne Heavy
Maintenance, Inc. (formally PMS) facility which is located on the north
side of MIA. This facility however, requires extensive renovations to
bring it up to the conditions required by the South Florida Building
Code.

F & E has offered to make repairs that are required and receive
reimbursement, in an approximate amount of $2.6 Million Dollars in the
form of rental credit-s in lieu of fair market rents payable on the land
and hangar building. F& E will receive a monthly credit equal to the
fair market rentals for as long as it takes to amortize the improvement
cost, expended by F & E, which is projected to be approximately 3.5 years,
for the repairs and improvements.

F & E has submitted a report which includes cost projection prepared by
Harrison Construction in the amount of approximately $2.25 Million Dollars
to make the code required repairs. The cost for architectural design,
permits, inspections and other approved soft costs will make up the
difference of approximately $350,000 for a total of $2.6 million. Based
on current rates, the monthly rentals for hangar, shop, office space,
pavement and land rent is $60,847.70, or $730,172.55 per year. F & E
will receive approximately 43 months of rent credit ($2.6000,000 divided
by $30,172.55 annual rentals = 3.56 years = 43 months) Once F&E has been
fully credited for the improvement costs, it will commence paying land and
improvements rent at the Board approved fair market rates. F & E has
received a financial commitment from Merrill Lynch to finance the cost
of design and renovation of the facility.

F & E will submit each design project to the Count's Review Committee for
application of Black/Hispanic/Woman Business Enterprise contract measures.
Additionally, F & E has indicated that, as part of its commitment to
include participation from a diverse number of subcontractors, it will use
its best efforts in include CSBE-certified firms in the construction
program.


F & E is expected to employ five hundred and fifty (550) employees of which
three hundred and forty (340) represent new jobs. Over the first ten years,
it is expected that the project will generate approximately $136,000,000
million in new wages, which amount to $13,6000.000 per year. Approving the
attached Agreement with F&E will greatly enhance and benefit MIA and all
Miami-Dade County.

Attachments


TITLE

RESOLUTION APPROVING LEASE AGREEMENT WITH F&E AIRCRAFT MAINTENANCE (MIAMI),
L.L.C. FOR HANGAR 8 AT MIAMI INTERNATIONAL AIRPORT; AUTHORIZING EXECUTION OF
DOCUMENTS RELATING TO F&EIS REPAIR OF THE HANGAR AND REIMBURSEMENT TO F&E
THROUGH RENTAL CREDITS OF APPROVED REPAIR COSTS; AUTHORIZING COUNTY
MANAGER TO EXECUTE LEASE AGREEMENT

BODY
WHEREAS, this Board desires to accomplish the purposes
outlined in the accompanying memorandum and documents, copies of
which are incorporated herein by reference,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board
hereby approves the Lease Agreement between the County and F&E
Aircraft Maintenance (Miami), L.L.C. ('F&E") for Hangar 8 at
Miami International Airport, on terms and conditions set forth in
such Lease Agreement, including a fixed term of ten (10) years;
authorizes the County Manager to execute documents relating to
F&Els repair of the facility so as to bring such facility up to
the requiremerts of the South Florida Building Code; authorizes
the Aviation Department to reimburse F&E for the approved repair
costs against rental credits payable by F&E under the Lease
Agreement, such credits estimated to be applied over a forty-
three (43) month period based on current estimates of rental
rates; and authorizes the County Manager to execute the Lease
Agreement.