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Agenda 02/28/2017 Item #16G 102/28/2017 EXECUTIVE SUMMARY Recommendation to terminate for cause the lease agreement between Collier County Airport Authority and William K. Glass and authorize the County Attorney’s Office to take all action necessary, including litigation, to have Mr. Glass removed as a tenant from the property and recover all outstanding monies owed. OBJECTIVE: To exercise the County’s right, under the lease agreement between Collier County Airport Authority (Authority) and William K. Glass, to terminate the lease for cause effective February 28, 2017, and for the Board of County Commissioners (Board), acting as the Authority, to authorize the County Attorney’s Office to use all available remedies, including litigation, to have Mr. Glass removed as a tenant and to recover all monies owed. CONSIDERATIONS: Mr. William K. Glass currently holds a lease for a T-Hangar located at the Immokalee Regional Airport. The month-to-month lease commenced on October 11, 2011, and requires Mr. Glass to make monthly rent payments in the amount of $254.57, plus applicable sales tax. At intermittent times throughout the course of the lease agreement, Mr. Glass has failed to make timely rent payments. Numerous correspondences, phone messages, and notices to cure have been sent to Mr. Glass to resolve the issue, but the attempts have failed to remedy the situation. As of February 1, 2017, Mr. Glass owes the Authority $1,789.31, including taxes, which constitutes 6 months of overdue rent payments and late fees. The tenant has failed to return any phone calls or correspondences regarding payment of the monies owed. The continuous infractions of the terms of the lease lead staff to conclude that continuing to honor the lease agreement is not in the best interest of the public. The Immokalee Regional Airport has a waiting list for T- Hangars and therefore can rent the space to a new customer immediately following this termination. FISCAL IMPACT: As a result of the termination of the lease agreement, any monies recovered will be deposited in the Airport Operating Fund (495), Immokalee Regional Airport cost center. The current amount of arrears as of February 1, 2017 is $1,789.31. Until the termination is final, monthly rent and any applicable late fees or interest will continue to accrue. GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact associated with this Executive Summary. LEGAL CONSIDERATIONS: This item has been approved as to form and legality and requires a majority vote for approval. -KN RECOMMENDATION: To authorize the termination for cause of the lease agreement between the Collier County Airport Authority and William K. Glass, and authorize the County Attorney’s Office to take all action necessary, including litigation, to have Mr. Glass removed as a tenant from the property and recover all outstanding monies owed. Prepared by: Kevin L. Noell, Assistant County Attorney Justin Lobb, Manager-Airport Authority ATTACHMENT(S) 1. Glass Lease (PDF) 2. Notice to Cure (PDF) 16.G.1 Packet Pg. 1300 02/28/2017 COLLIER COUNTY Board of County Commissioners Item Number: 16.G.1 Doc ID: 2642 Item Summary: Recommendation to terminate for cause the lease agreement between Collier County Airport Authority and William K. Glass and authorize the County Attorney’s Office to take all action necessary, including litigation, to have Mr. Glass removed as a tenant from the property and recover all outstanding monies owed. Meeting Date: 02/28/2017 Prepared by: Title: Operations Coordinator – Airport Authority Name: Debra Brueggeman 01/25/2017 12:01 PM Submitted by: Title: Division Director - Operations Support – Growth Management Department Name: Gene Shue 01/25/2017 12:01 PM Approved By: Review: Airport Authority Justin Lobb Additional Reviewer Completed 01/27/2017 9:50 PM Procurement Services Allison Kearns Additional Reviewer Completed 01/30/2017 1:35 PM Growth Management Department Gene Shue Additional Reviewer Completed 01/31/2017 9:06 AM Growth Management Department Diane Lynch Level 1 Division Reviewer Completed 01/31/2017 10:59 AM Growth Management Department Jeanne Marcella Level 2 Division Administrator Completed 02/02/2017 9:13 AM County Attorney's Office Kevin Noell Level 2 Attorney Review Completed 02/06/2017 10:29 AM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 02/06/2017 3:55 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 02/06/2017 4:26 PM Budget and Management Office Ed Finn Additional Reviewer Completed 02/06/2017 5:32 PM Budget and Management Office Mark Isackson Additional Reviewer Completed 02/09/2017 9:18 AM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 02/19/2017 11:50 AM Board of County Commissioners MaryJo Brock Meeting Pending 02/28/2017 9:00 AM 16.G.1 Packet Pg. 1301 i„(70Ploodl 0 0 COLLIER COUNTY AIRPORT AUTHORITY T - HANGAR LEASE AGREEMENT 2005 MAINSAIL DRIVE, SUITE 1 NAPLES, FLORIDA 34114 (239) 642-7878 THIS LEASE AGREEMENT is made and entered this9Wil day of OC4e'ber , 2011, by and between the Collier County Airport Authority (hereinafter referred to as "Authority"), and: Name: to New. • Type of Entity: (circle one): Corporation (insert State of Incorporation): Limited Liability Company (insert State where formed): Partnership (insert State where registered): Other (describe): Phone Number: ZA - •••Zotk."7.) Address: Zo t ov &Pt-Cu:pc:AA - te- L.. IT 411-1 (hereinafter referred to as "Tenant") %-A3 KC.NLAN &"*vt L. rt t .0% inu KArth.A. 1. PREMISES: The Authority hereby leases to Tenant T-hangar at the • Airport. 2. AUTHORIZED AIRCRAFT: The Premises shall only be used for the parking and storage of the Tenant's following described aircraft: Aircraft I. D.: ki-tliq s Aircraft Color: f...1-a) Aircraft Make: ile4.1.= - A-0 VAL,rtac" 01t4.. Aircraft Model: ArJ icr-1-rs)Zitv 3. TERM: The term of this agreement will commence on the 1st day of c ol be-6-2011, and will continue on a month to month basis until at least 30 days' advance written notice to terminate is given by one party to the other. The Authority may terminate this Lease for cause, as defined below, on 3 days written notice to Tenant. 4. RENT: In consideration of the rights granted herein, Tenant shall pay the Authority during the term of this Agreement the base rent and related charges applicable to the Premises in accordance with the uniform rate schedule in effect and published by the Authority, together with all applicable taxes, including state sales tax. This rate schedule is subject to adjustment by the Authority. Any change in the rate schedule will become effective with respect to the Fee owed by this Lease as of the 1 s t day of the second month following such change. Payment shall be due in advance on the first day of each month without demand. Any failure to pay the fee in full and in advance shall require payment of a late fee equal to thirty dollars ($30.00) and any failure to pay in full and on time shall be cause for termination for cause of this Lease. In addition to a late charge, in the event Tenant fails to pay the Page 1 of 6 thrk -I- 22..0 Form Effective 3/8/11 16.G.1.a Packet Pg. 1302 Attachment: Glass Lease (2642 : William Glass Agreement at IMM) rentals, fees or charges as required to be paid under the provisions o f t h e L e a s e A g r e e m e n t w i t h i n t h i r t y (30) days after the same shall become due, interest at one and one h a l f p e r c e n t ( 1 . 5 % ) p e r m o n t h s h a l l accrue on the delinquent payment(s) until the same are paid. 5. MAINTENANCE: Tenant accepts the premises "as is." Te n a n t s h a l l m a i n t a i n s t r u c t u r a l components of the hangar against ordinary wear and tear, inclu d i n g d o o r s a n d d o o r m e c h a n i s m s . Tenant is responsible for all other damage to the premises caused b y T e n a n t ' s u s e o f o r p r e s e n c e a t / i n the premises. 6. LIABILITIES: Tenant hereby waives all future claims against the A u t h o r i t y , i t s e m p l o y e e s , a g e n t s and/or representatives for any and all liability for damage to the ai r c r a f t a n d a n y o t h e r p r o p e r t y i n o r around the hangar except for physical damage caused by movemen t o f a i r c r a f t s o l e l y b y t h e A u t h o r i t y ' s employees, agents or representatives without any participation in s u c h m o v e m e n t ( o r i n s t r u c t i o n s t o move same) from Tenant or Tenant's agents, employees or any oth e r p e r s o n w i t h a p p a r e n t a u t h o r i t y o n behalf of Tenant. Any act or use of the premises by Tenant not e x p r e s s l y a u t h o r i z e d b y t h i s L e a s e Agreement, including storage of any flammable liquid or gel in t h e h a n g a r o r i n t h e a i r c r a f t , a n d / o r storage of other than aircraft fuel and oil in the aircraft's tank s i s u n a u t h o r i z e d u s e . H a z a r d o u s materials are strictly prohibited. 7. USE OF PREMISES: The premises shall be used only for storag e o f a i r w o r t h y a i r c r a f t o n l y a n d tools associated with aircraft repair that would not constitute a fire h a z a r d . P a i n t i n g a n d m a j o r a i r c r a f t repairs therein are prohibited. T-Hangars are not to be used as sleepi n g _ q u a r t e r s o r s t o r a g e o f p e r s o n a l vehicles with the following exception. The aircrafts owner's ve h i c l e m a y b e p a r k e d i n t h e h a n g a r while the aircraft is in transit. Within the T-Hangar, Tenant shall b e p e r m i t t e d t o p e r f o r m o n l y r e p a i r s and/or maintenance specifically authorized under Federal Air R e g u l a t i o n s , P a r t 4 3 , S e c t i o n 4 3 . 3 , Preventative Maintenance unless otherwise authorized by the E x e c u t i v e D i r e c t o r o r t h e i r d e s i g n e e . This maintenance may be performed by the owner/pilot of the aircr a f t o f a l i c e n s e d A & P m e c h a n i c t h a t leases T-Hangar space at the airport. If a T-Hangar Tenant desir e s t o h a v e a m e c h a n i c o r t e c h n i c i a n that does not lease space at the airport, the following policy w i l l b e a d h e r e d t o . A l l c o m m e r c i a l mechanics, technician' s,. or other persons doing business for compensation that do not l e a s e s p a c e a t t h e airport shall be required to register with the Authority, give pro o f o f l i a b i l i t y i n s u r a n c e a n d s i g n a statement holding the Authority harmless, list qualifications, licens e s , e t c . , a n d p a y a v e n d o r s f e e i n t h e amount of $25.00 per day. Whenever separate airport maintenance facilities are n o t a v a i l a b l e , annual inspections will be approved by the Airport Man a g e r w i t h p r i o r a p p r o v a l . All other use of or storage within the premises is strictly prohibited unless aut h o r i z e d i n w r i t i n g b y t h e A i r p o r t Manager. 8. TERMINATION FOR CAUSE: Notwithstanding the notice pr o v i s i o n o f p a r a g r a p h 3 a b o v e , t h e Authority may terminate this Lease Agreement for cause by giving T e n a n t n o t l e s s t h a n t h r e e ( 3 ) d a y s ' advance written notice to vacate. Any breach of this agree m e n t b y T e n a n t i s c a u s e f o r s u c h termination. If Tenant does not remove its aircraft and all other pr o p e r t y b r o u g h t o n t o t h e p r e m i s e s b y or on behalf of Tenant, the Authority may summarily remove all su c h p r o p e r t y w i t h o u t a n y l i a b i l i t y . 9. ACCESS, SECURITY AND KEYS: Tenant expressly authorizes th e A u t h o r i t y ' s E x e c u t i v e D i r e c t o r , or other duly authorized representative or agents of Authority, a c c e s s a t a l l r e a s o n a b l e t i m e s t o t h e Premises. Tenant agrees to always cooperate with the Authority i n e v e r y r e s p e c t , i n c l u d i n g s e c u r i t y regulations. Security of the hangar and all property therein is th e s o l e r e s p o n s i b i l i t y o f t h e T e n a n t . Page 2 of 6 Form Effective 3/8/11 16.G.1.a Packet Pg. 1303 Attachment: Glass Lease (2642 : William Glass Agreement at IMM) Tenant shall provide the Authority with a duplicate key to any lock or locking device that secures the Premises. The Authority shall not be responsible for theft, vandalism, pilferage, or other damage or loss to any property except that which may result because a lock or other locking device opened by the Authority is not re-locked through negligence of the Authority. 10. EMERGENCY SITUATIONS: In the event of an emergency, (e.g. hurricane) any vacant hangar is subject to aircraft temporary occupancy at the discretion of the Executive Director provided such occupancy is to protect the aircraft from potential exposure to loss or damage because of the emergency. 11. LEASE MANUAL: Tenant shall be provided with the Authority's Lease Manual (if any), which the Authority may be amend from time to time. The terms of this manual shall be deemed to be incorporated by reference into this Agreement, and Tenant shall be bound by the terms of this Lease Manual, as of the 1 st day of the second month Tenant receives a copy of the Lease Manual or an amended Lease Manual. With respect to any terms in this Lease Agreement which are in conflict with the Lease Manual, the Lease Manual shall control. 12. RULES AND REGULATIONS: Tenant shall comply with the Authority's published Rules and Regulations for this airport, which are on file at the address set forth above, as such regulations may be amended from time to time by the Authority including such reasonable and uniform landing fees, rates or charges, as may from time to time be levied for airfield operational privileges and/or services provided at the Airport.. Tenant shall also comply with any and all applicable governmental statutes, rules, orders and regulations. Tenant shall not allow any signs, cards or placards to be posted or placed on the Premises without prior written approval of the Authority. 13. ASSIGNMENT: This Lease Agreement is personal to Tenant. Tenant shall not assign this Lease, and may not sublet the Premises, or any part thereof without advance written approval from the Authority, which approval shall be in the Airport Director's sole discretion. 14. DISCHARGE OF LIENS: In the event of the filing of any mechanic's lien or materialman's lien or liens, or any other charge whatsoever against the Premises or any improvement thereof during the term of the lease, (or any extension thereof), Tenant immediately shall take all necessary steps to secure the release of same. In the event Tenant fails to take reasonable steps to secure the release of any such liens or charges, the Authority upon ten (10) days' prior written notice to Tenant, shall have the right and privilege of taking the necessary steps, including payment, to secure the release of any such lien or charge, and any amount so paid by the Authority including reasonable expense and costs (including attorney's fees), shall be added to the rental due hereunder from Tenant to the Authority and shall be paid by Tenant to the Authority immediately upon receipt by Tenant from the Authority of any itemized statement thereof. 15. INDEMNIFICATION: Tenant shall defend, indemnify, and hold Authority and its officers, agents, servants, representatives and employees harmless from and against any and all loss, damage, actions, lawsuits, claims, cost and expense (including attorneys' fees), as a result of any personal injury, death, property damage, penalty, fine or any other claim or suit of whatever nature, arising in any way from Tenant's occupancy and use of the Premises or the Airport. Any and all other personal property of Tenant or his officers, employees, servants, agents, guests or business visitors shall be stored and otherwise used on the Airport at Tenant's sole risk of damage or loss. Page 3 of 6 Form Effective 3/8/11 16.G.1.a Packet Pg. 1304 Attachment: Glass Lease (2642 : William Glass Agreement at IMM) 16. INSURANCE REQUIREMENTS: Tenant shall secure and maintain in force at its expense liability insurance coverage for its activities on the airport, occupation of the Premises and on Tenant's liability under the indemnities set forth in this lease manual and in the lease agreement. The insurance policy shall have coverage limitations providing no less than $100,000.00 per person and $300,000.00 per incident and shall not be subject to cancellation or material change except after thirty (30) days prior written notice of such cancellation or material change to the Authority. Tenant shall secure and deliver to Authority appropriate insurance certificates showing evidence of the coverage as required hereunder. Said insurance policy or policies providing such coverage, as well as the insurers providing same, shall be subject to the prior review and approval of Authority. The said insurance policies shall contain a clause or endorsement by which the insurance carrier(s) waives all rights of subrogation against Authority, except where the Authority or its Agents are guilty of a specific act of negligence. Insurance requirements are expressly subject to change in the Authority's Lease Manual. 17. SURRENDER-DAMAGES: Tenant, at the termination of the lease, will immediately surrender, release and yield up the premises to the Authority peaceably, quietly and in good order and condition, reasonable wear and tear excepted, and failing so to do will pay as rental to Authority for the entire time such possession is withheld, the sum of Ten Dollars ($10.00) plus one thirtieth of the monthly rental in effect at the time of said termination, per day or for any such penalty or payment as may be provided in the Lease, at the option of the Authority; provided that the provisions of this clause shall not be deemed a waiver by Authority of any right of re-entry as herein provided, nor shall the receipt of said rent, or any part thereof, or any other act in apparent affirmation of tenancy, by Authority, operate as waiver of any right or remedy available to Authority hereunder for a breach of any of the covenants contained in the lease agreement. Upon the expiration or termination of the lease, Tenant shall remove its personal property and equipment from the premises, and Tenant shall be liable for and pay for any damage caused to the premises or any other property of Authority as a result of Tenant's occupation of the premises, Tenant's removal or failure to remove Tenant's property, including but not limited to any and all costs incurred by the Authority in removing and storing Tenant's property. 18. DEFAULT-TERMINATION: A. In the event of default by Tenant in the payment of the rental obligation on the day the same becomes due or payable, which default continues for ten (10) days, or in the event of any default by Tenant with respect to any other covenant or obligation of Tenant under the lease agreement, then in any or either of such events, Authority at its election, at or after the expiration of ten (10) days' previous notice in writing of such default sent as provided below to Tenant, may declare a forfeiture and termination of the lease, and at that time all rent due or to become due under the then existing term of the lease shall become immediately due and payable. B. In addition, Authority may re-enter said Premises, after expiration of effective notice, with or without process of law and, if necessary, remove Tenant or any persons occupying said Premises under Tenant, without prejudice to any remedies which might otherwise be available. Tenant waives any demand for possession of the Premises and any structure, property or improvement then situated thereon, and upon termination at such election of Authority, Tenant must surrender and deliver the Premises immediately. C. Authority further shall have the right to terminate the lease agreement in the event of the occurrence of any of the following: insolvency of Tenant, liquidation or dissolution of Tenant; the institution of a voluntary or involuntary bankruptcy proceeding by or against Tenant; assignment by Tenant for the Page 4 of 6 Form Effective 3/8/11 16.G.1.a Packet Pg. 1305 Attachment: Glass Lease (2642 : William Glass Agreement at IMM) benefit of creditors; the appointment of a receiver or trustee to manage the property of Tenant or if Tenant fails to adhere to the provisions of the agreement. D. All the remedies referenced herein shall be in addition to and not in derogation of any remedies provided in the Lease or available at law or in equity. 19. DESTRUCTION OF PREMISES: In the event that the Premises or the improvements located thereon shall be destroyed in whole or in part by fire, or other casualty, Tenant, at its option, may terminate this Lease or, at its cost and expense, may elect in writing to Authority to repair or reconstruct said Premises or improvements. Such election shall be made within thirty (30) days of the date of such destruction. If such election is made, rental payments shall continue unabated and uninterrupted. 20. AIRPORT DEVELOPMENT: The Authority reserves the right to further develop or improve the landing and other areas of the Airport as it sees fit, regardless of the convenience, desires or view of the Tenant, and without interference or hindrance. 21. ATTORNEY FEES: Tenant shall pay the cost of collection and reasonable attorney's fees whenever the Authority retains the service of an attorney to collect overdue rents or to enforce any other term or condition set forth in this Lease or Lease Manual. 22. AIRPORT OPERATIONS: Tenant shall prevent any use of the Premises which would interfere with or adversely affect the operation or maintenance of the Airport, or otherwise constitute an airport hazard, and will restrict the height of structures, objects of natural growth and other obstructions on the Premises to such height as comply with Federal Aviation Regulations, Part 77. 23. CONDEMNATION: If, at any time during the term of the lease, title to the whole or substantially all of the premises shall be taken in condemnation proceedings or by any right of eminent domain, the affected lease(s) shall terminate and expire on the date of such taking and the fixed rental and other charges payable hereunder shall be apportioned and paid to the date of such taking. Nothing in this paragraph is intended to waive Tenant's constitutional rights to be compensated by any government, person or organization which appropriates Tenant's private property. 24. REMEDIES CUMULATIVE-NO WAIVER: The rights and remedies granted to Authority under the lease agreement shall be deemed to be cumulative and non-exclusive. The failure by Authority at any time to assert any such right or remedy shall not be deemed to be a waiver, and shall not preclude the assertion of such right or remedy at a later date. 25. DOMINANT AGREEMENTS: This Lease Agreement is subordinate and subject to all existing agreements between the Authority and the Federal Aviation Administration, the Authority and the State of Florida, and the Authority and Collier County. During the time of war or national emergency, the Authority shall have the right to lease the landing area or any part thereof to the United States Government for military or naval or similar use, and, if such lease is executed, the provisions of this Lease Agreement insofar as they are inconsistent with the provisions of the lease to the Government, shall be suspended. Any executed agreement shall be subordinate to the provisions of any existing or future Agreement between Authority and the United States, relative to the operation or maintenance of the Airport, the execution of which has been or may be required as a condition precedent to the expenditure of Federal funds for the development of the Airport. Page 5 of 6 Form Effective 3/8/11 16.G.1.a Packet Pg. 1306 Attachment: Glass Lease (2642 : William Glass Agreement at IMM) By: (C By: IN WITNESS WHEREOF, the parties hereto, by their duly authorized representatives, have executed this Lease Agreement on the date first above written. AS TO TENANT: . 6..U44 (Print naie of TENAN Title: (If corporation, LLC, partnership, etc.) AS TO AUTHORITY: COLLIER COUNTY AIRPORT AUTHORITY CHRIS CURRY, ExecutjAje Director Page 6 of 6 Form Effective 3/8/11 16.G.1.a Packet Pg. 1307 Attachment: Glass Lease (2642 : William Glass Agreement at IMM) 16.G.1.b Packet Pg. 1308 Attachment: Notice to Cure (2642 : William Glass Agreement at IMM) 16.G.1.b Packet Pg. 1309 Attachment: Notice to Cure (2642 : William Glass Agreement at IMM) 16.G.1.b Packet Pg. 1310 Attachment: Notice to Cure (2642 : William Glass Agreement at IMM) 16.G.1.b Packet Pg. 1311 Attachment: Notice to Cure (2642 : William Glass Agreement at IMM) 16.G.1.b Packet Pg. 1312 Attachment: Notice to Cure (2642 : William Glass Agreement at IMM) 16.G.1.b Packet Pg. 1313 Attachment: Notice to Cure (2642 : William Glass Agreement at IMM) 16.G.1.b Packet Pg. 1314 Attachment: Notice to Cure (2642 : William Glass Agreement at IMM) 16.G.1.b Packet Pg. 1315 Attachment: Notice to Cure (2642 : William Glass Agreement at IMM)