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RESOLUTION APPROVING, PURSUANT TO SECTION 125.35(1)(B)(1), FLORIDA STATUTES, A DEVELOPMENT LEASE AGREEMENT (�AGREEMENT�) BETWEEN THE COUNTY, AS LANDLORD, AND CR AVIATION LEASING, LLC, AS TENANT AND DEVELOPER, FOR A 222,870 SQUARE FOOT PARCEL OF LAND LOCATED AT MIAMI EXECUTIVE AIRPORT, FOR A TERM OF 30 YEARS WITH ONE FIVE-YEAR RENEWAL OPTION, FOR THE DEVELOPMENT OF AVIATION HANGAR FACILITIES AND ANCILLARY INFRASTRUCTURE, WITH A MINIMUM INVESTMENT OF $4,000,000.00 AND AN ESTIMATED $5,188,663.00 IN RENT AND OTHER REVENUE DUE TO THE COUNTY OVER THE INITIAL TERM, SUBJECT TO SATISFACTION OF CONDITIONS PRECEDENT; DIRECTING THE COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO SEEK APPROVAL FROM THE TRAFFIC AND CONSULTING ENGINEERS AND FROM THE FEDERAL AVIATION ADMINISTRATION OF THE AGREEMENT; AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO EXECUTE THE LEASE, TO TAKE ALL ACTIONS NECESSARY TO EFFECTUATE SAME, AND TO EXERCISE ALL RIGHTS CONFERRED THEREIN, INCLUDING THE TERMINATION RIGHTS; AND DIRECTING THE COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO PROVIDE AN EXECUTED COPY OF THE LEASE TO THE PROPERTY APPRAISER�S OFFICE WITHIN 30 DAYS OF LEASE EXECUTION

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WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying County Mayor�s memorandum, a copy which is incorporated herein by reference,

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that:

Section 1. Subject to the satisfaction of the conditions precedent set forth in section 2 of this resolution, this Board approves the foregoing recital as if fully set forth herein and, pursuant to section 125.35(1)(b)(1), Florida Statutes, a development lease agreement between the County, as landlord, and CR Aviation Leasing, LLC, (�CR Aviation�) as tenant and developer, for a 222,870 square foot parcel of land located at Miami Executive Airport, for a term of 30 years with one five-year renewal option, in substantially the form attached (the �Lease�), for the development of an aviation hangar facility and ancillary infrastructure, with a minimum investment of $4,000,000.00 and an estimated $5,188,663.00 in rent and other revenue due to the County over the of the initial term of the Lease.

Section 2. This Board directs the County Mayor or Mayor�s designee to expeditiously seek the approval of: (a) the Miami-Dade Aviation Department�s (�MDAD�) traffic engineers and the consulting engineers for the improvements to be constructed by CR Aviation as required by section 707 of the Amended and Restated Trust Agreement for the Aviation Revenue Bonds; and (b) the Federal Aviation Administration, which approvals are referred to herein as the �conditions precedent.� The satisfaction of the conditions precedent for subsection 2(a) shall be evidenced by a written certification from the MDAD�s traffic engineers and consulting engineers. Subject to the satisfaction of the conditions precedent, this Board authorizes the County Mayor or County Mayor�s Designee to execute the Lease for and on behalf of Miami-Dade County, to take all actions necessary to effectuate the Lease, and to exercise all rights conferred in the Lease, including the termination rights.

Section 3. This Board directs the County Mayor or County Mayor�s Designee to provide an executed copy of the Lease to the Property Appraiser�s Office in accordance with Resolution No. R-791-14.

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Date:
To: Honorable Chairman Anthony Rodriguez
and Members, Board of County Commissioners
From: Daniella Levine Cava
Mayor
Subject: Resolution Approving a Development Lease Agreement with CR Aviation Leasing, LLC at Miami Executive Airport

STAFF RECOMMENDATION
Executive Summary
To further advance the planned upgrades across Miami International Airport (MIA) and the General Aviation Airports (GAA), Miami Dade County has expanded its Modernization in Action (M.I.A.) Program from�$9�billion to�$12�billion. This enhanced investment supports a broader scope of improvements including upgrades to terminals, concourses, airfield infrastructure, parking facilities, and passenger amenities. As part of this initiative, and in alignment with the goals of MIA�s Forward Flight Team, MDAD is proactively negotiating development lease agreements to support the expansion of aviation services and amenities at MIA and the GAAs, ensuring enhanced passenger experiences and greater operational efficiency.

This item recommends that the County enter into a Development Lease Agreement (DLA) with CR Aviation Leasing, LLC (CR Aviation) for the design and construction of aviation use facilities at Miami Executive Airport (TMB). The DLA provides for a 30-year lease term with one five-year renewal option, as well as a 180-day due diligence period following the effectuation of the agreement to allow CR Aviation to evaluate the suitability of the development site.

As a long-time tenant at TMB, CR Aviation will be required to invest a minimum of $4,000,000.00 to develop the site in two phases, including the demolition of Buildings 109, 109A, and 109B, followed by the construction of a 40,000 square foot (SF) hangar with the associated aircraft and vehicle pavement, office space, and all necessary supporting infrastructure, including connecting aprons, ramps, taxi lanes, and service roadways on 222,870 square feet of land. The County will have ownership of all improvements upon completion of the project. MDAD estimates the County will receive a minimum of $5,188,663.00 in rent revenues over the 30 year lease term, in addition to $1,620,000.00 in improvement rent, for a total of $6,808,663.00.

In CR Aviation�s estimation, this DLA benefits the County in that it will create approximately 225 temporary jobs over the lease term, and 25 permanent jobs with annual salaries in the range of $35.00 per hour to manage, maintain and operate the aircraft hangars, and related facilities. CR Aviation will also establish an Apprenticeship Readiness Pipeline to strengthen local workforce development by focusing on integrating trained apprentices into on site operations, increasing student exposure to aviation careers, and supporting educational programming at George T. Baker Aviation Technical College.

Recommendation
It is recommended that the Board of County Commissioners (Board) approve the attached DLA entitled: �Development Site Lease Agreement Between Miami-Dade County, Florida, as Lessor, and CR Aviation Leasing, LLC, as Lessee, at Miami Executive Airport� between CR Aviation and the County for a period of 30 years with a one (1) five-year renewal option.

Because this DLA involves the lease of County-owned land, compliance with Implementing Order (I.O.) No.: 8-4 which governs the sale, lease, and conveyance of County-owned property is required. As such, all required due diligence under I.O. 8-4 was completed by the Administration and documented by the Aviation Department in Attachment A as attached to this memorandum. As part of this due diligence process, the Administration has satisfied the following requirements:

� Resolution No. 380 17: Written notification was provided to the district commissioner for the property, as required.
� Section 2 10.4.2 of the Miami Dade County Code: The value of the land to be leased was confirmed in accordance with the Board approved annual adjustment of MDAD�s Rates and Charges. The land was valued at $2,600,000.00.
� Office of the Commission Auditor: The required documentation has been submitted to enable the Office to conduct its review of CR Aviation and the DLA.

Implementation of this DLA is contingent upon the occurrence of the following conditions: 1) MDAD�s receipt of the 707 Certificates from both the Traffic Engineers and the Consulting Engineers determining that the improvements to be constructed meet the requirements of the Trust Agreement, and the filing thereof with the Clerk of the Board, and 2) review and approval from the Federal Aviation Administration (FAA). In the event the FAA determines that the provisions of this DLA are inconsistent with federal requirements, the parties will be required to adjust the terms of the DLA to meet such requirements; failure to address FAA regulatory concerns could impact MDAD�s ability to receive federal and state grant funding for airport projects.

The DLA�s Development Phases and Milestones
The DLA contains a 180-day �Due Diligence Period� (DDP) that begins on the commencement date of the DLA. During this time, CR Aviation has the right to conduct surveys, environmental and drainage assessments, and other analyses to determine the suitability of the proposed development site for its intended purpose. If CR Aviation determines that the site is not adequate, it may terminate this DLA by providing written notice to the County anytime during the DDP.

The construction will be phased into two parts. CR Aviation agrees to invest $4,000,000.00 for improvements and infrastructure on the Premises to be completed in two phases. Investment for improvements will total $3,500,000.00 for Phase 1 and $500,000.00 for Phase 2.

1. Phase 1 � the scope of work includes but is not limited to the demolition of Building 109B, site groundbreaking and foundation work for the 40,000 SF hangar, associated pavement and parking improvements, all roadway and utility work, airside development of Airside Operations Area (AOA) perimeter fencing and related lighting, navigational aids and signage, and any other needed infrastructure.

a. Submittal of 100 percent of the development plans and specifications to MDAD for review no later than 6 months from the execution date of the DLA.
b. Submittal of MDAD approved development plans to other governmental agencies (FAA, Zoning etc.) for approval no later than 9 months from the execution date of the DLA.
c. Submittal of final approved plans for permitting no later than 12 months from the execution date of the DLA.
d. Completion of construction of Phase 1 within 18 months of the execution date of the DLA.

2. Phase 2 - the scope of work includes but is not limited to the demolition of Buildings 109 and 109A, construction and build-out of the 40,000 SF hangar with 28� height door opening, associated pavement work for parking, roadway and utility improvements, removal of potential obstacles to CR Aviation, signage, and additional infrastructure as needed.

a. Submittal of 100 percent of the development plans and specifications to MDAD for review and approval no later than 20 months from execution date of the DLA.
b. Submittal of MDAD approved development plans to other governmental agencies (Federal Aviation Administration (FAA), Zoning etc.) for approval no later than 24 months from execution date of the DLA.
c. Submittal of final approved plans for permitting no later than 24 months from the execution date of the DLA.
d. Completion of construction (achieving beneficial occupancy) within 36 months from the execution date of the DLA.

Beneficial Occupancy is defined as the earliest of (i) the date on which substantial completion of the work associated with any improvements constructed and a Certificate of Occupancy (CO) or a Temporary Certificate of Occupancy (TCO) has been issued, or (ii) the date on which CR Aviation commences the use of any improvement (with or without a TCO or CO), or (iii) the date on which substantial completion of the improvement would have occurred and on which the appropriate code enforcement agency would have issued a CO or Temporary CO but for the occurrence of delays caused by CR Aviation, all as determined in the sole reasonable discretion of the County.

Scope
TMB is in District 11 and is represented by Commissioner Roberto J. Gonzalez; however, the impact of this DLA is countywide as TMB is a regional asset.

Delegation of Authority
The County Mayor or County Mayor�s designee has the authority to execute the DLA and the authority to (i) terminate the DLA if CR Aviation breaches any of the terms, covenants, and conditions, (ii) approve any assignment or subletting of the premises, or (iii) reduce acreage or the leasehold term for CR Aviation�s failure to timely or completely construct the required improvements.

Fiscal Impact/Funding Source
There is a positive fiscal impact to the County as CR Aviation will pay land, building, aircraft pavement rent and vehicle pavement rent until Buildings 109, 109A, and 109B are demolished. After demolition, CR Aviation will continue to pay land rent and aircraft pavement rent. The Aviation Department estimates the County will receive a minimum of $5,188,663.00 in rent revenues, as detailed below, over the initial 30 year term, plus an additional $1,620,000.00 in improvement rent, for a total projected revenue of $6,808,663.00.

Rents

A. Pre-Construction
Land, Building, Aircraft Rent and Vehicle Pavement Rent - Upon execution of the DLA, CR Aviation will pay the County $156,904.72 in annual land, building, aircraft, and vehicle pavement rent for the leased premises totaling 222,870 SF, payable in monthly installments of $13,075.39. The premises include Building 109 (5,425 SF), Building 109A (4,951 SF) and Building 109B (2,405 SF), aircraft ramp (96,761 SF), vehicle pavement (10,675 SF). Rent will continue to be collected until these structures are demolished. Demolition will occur in two (2) phases.

B. Post-Construction
Land and Aircraft Pavement Rent � Following the demolition of all three buildings and the associated vehicle pavement areas, the County will discontinue charging rent based on building and vehicle pavement square footage. Under the revised rent structure, CR Aviation will be charged solely for land and aircraft pavement areas at the established Fiscal Year 2026 rental rates, subject to annual adjustments. As such, CR Aviation will pay the County $0.37 per square foot for 222,869 SF of land, totaling $6,871.79 per month ($82,461.48 annually); and $0.09 per square foot for 96,761 SF of aircraft pavement totaling $725.71 per month ($8,708.52 annually). The combined annual rent to the County will total $91,170.00, subject to annual escalations.

The rental rates for land and pavement will be evaluated and, if appropriate, adjusted on an annual basis by an independent appraiser under contract with MDAD and as approved by the Board as part of MDAD�s Annual Rates and Charges as published. Rental rates are established by the Board as a part of the annual budget process and are subject to change each year following appraisals by the County�s appraiser.

C. Amortization of Investment
For CR Aviation to amortize its investment, CR Aviation will not pay annual building or pavement rent on any improvements constructed during the initial 30-year term. After the end of the initial term, CR Aviation will proceed to pay the County building and pavement rent at rental rates then in effect as established by the Board.

D. Improvement Rent
In addition to the monthly rent payments, CR Aviation shall pay an Improvement Rent on an increasing scale. Beginning with the start of the 7th year of the DLA and extending to the end of the 11th year of the DLA, CR Aviation shall pay (i) one percent (1%) of the value of the minimum development investment amount of $4,000,000.00 or $40,000.00 per year; (ii) beginning on the 12th year of the DLA and extending to the end of the 16th year, CR Aviation shall pay one point five percent (1.5%) of the value of the minimum development investment amount of $4,000,000.00 or $60,000.00 per year, (iii) beginning on the 17th year of the DLA and extending to the end of the 30th year of the DLA, CR Aviation shall pay two percent (2%) of the value of the minimum development investment amount of $4,000,000.00, or $80,000.00 per year. It is estimated that the County will receive $1,620,000.00 in improvement rent.

Track Record/Monitor
MDAD�s Division Director for Real Estate Management, Mich�le Raymond, will monitor the implementation of this DLA.
Background
CR Aviation is seeking Board approval of the attached 30-year DLA with one five-year renewal option to construct a series of aviation-use facilities on 222,870 SF of land at TMB. Founded in 1994, CR Aviation has provided comprehensive general aviation maintenance services for over three decades. The company was among the first maintenance providers to support jet aircraft operations at TMB, establishing an early reputation for technical excellence, reliability, and regulatory compliance. CR Aviation is an FAA-certified Part 145 Repair Station, staffed by highly experienced A&P and IA-certified technicians, delivering a full range of maintenance, inspection, and certification services for both fixed-wing and rotorcraft aircraft.

With a minimum investment of $4,000,000.00, CR Aviation will design and construct a 40,000 square foot aircraft hangar to support its operations. The project will include aircraft and vehicle pavement, dedicated office space, and all necessary supporting infrastructure. This expansion will significantly increase TMB�s maintenance and repair capacity, providing a clear benefit to the County.

As part of this DLA, CR Aviation will implement an Apprenticeship Readiness Pipeline to strengthen local workforce development and expand pathways into the aviation industry. This initiative will include a structured workforce integration program in collaboration with George T. Baker Aviation Technical College. Under this program, CR Aviation will hire a minimum of ten percent (10%) of its on site craft or maintenance workforce from individuals who have completed at least 450 hours of training and demonstrated excellence within an approved apprenticeship program. CR Aviation will also provide ongoing career exposure opportunities by hosting at least two (2) site visits, career awareness events, or internship placements each year for students from George T. Baker Aviation Technical College or other nearby educational institutions. In addition, CR Aviation will contribute a minimum of $5,000.00 annually to support apprenticeship and workforce development initiatives conducted in partnership with George T. Baker Aviation Technical College.

Because TMB is a noise sensitive airport due to its location, CR Aviation agrees to work with the FAA, the County, and MDAD�s Noise Abatement Advisory Board (NAAB) to minimize any potential adverse impacts to surrounding communities, including noise impacts and to address complaints raised by NAAB members or members of the surrounding communities.

The attached DLA reflects the negotiated terms and conditions between CR Aviation and the County, and includes among other things, all small business enterprise provisions applicable to architects and engineers in Section 2-10.4.01 of the Code of Miami-Dade County (Code); small business enterprise provisions applicable to construction activities under Section 10-33.02 of the Code; Art in Public Places under Section 2-11.15 of the Code; the "Little Davis-Bacon Ordinance" under Section 2-11.16 of the Code, Responsible Wages Ordinance under Section 2-11.16 of the Code; Residents First Training and Employment Program under Section 2-11.7; Employ Miami-Dade under Administrative Order (AO) 3-6; Responsible Wages and Benefits for County Construction Contracts - Implementing Order No. 3-24; Guidelines and Procedures for the Sale, Lease, and Conveyance of County Real Property - Implementing Order 8-4, and any other program of the County applicable to CR Aviation�s activities, including the Department�s Tenant Airport Construction Program in effect, as such procedures, programs, ordinances, or code provisions may be amended from time to time.

Throughout the 30-year lease period, CR Aviation will pay applicable fair market rental rates as established by the Board, as well as improvement rent. The proposed project will generate at minimum
$6,808,663.00 in revenues to the County, as such, it is in the best interest of the County to proceed with attached DLA, subject to final FAA approval.

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Jimmy Morales
Chief Operating Officer