Subject:
Title
Amendments to Memorandums of Understanding pertaining to the County’s use of five facilities at the St. Pete-Clearwater International Airport, to change the date on which rent payable by the County to the Airport is increased, from every 5 years, to annually.
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Recommended Action:
Recommended Action
Approval of five Amendments to Memorandums of Understanding (MOUs) between the County and the St. Pete-Clearwater International Airport pertaining to the County’s use of five facilities at the Airport.
• A series of MOUs for each of the five facilities have been in place for decades.
• The current MOUs are scheduled to expire at the end of Fiscal Year (FY) 2029 (9-30-2029) (with renewal for 5 years, through end of FY34 (9-30-2034).
• Under the current MOUs, annual rent payable by the County (Construction & Property Management) to the Airport is due October 1 of each year and increases every five years by the increase in the Consumer Price Index-All Urban Consumers over the prior 5-year period.
• The rent increases every 5 years, instead of annually, and has a significant impact on CPM’s budget every 5th year, making an annual adjustment more desirable for budgeting purposes.
• Funding for this agreement is included in the FY27 Proposed Operating Budget for CPM in the General Fund. Funding for future years is dependent on approval in the annual County Operating Budget.
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Strategic Priorities:
Smart Service Delivery
4.2 Achieve and maintain a high level of customer satisfaction.
4.4 Pursue continuous improvement.
Summary:
Summary
The Amendments to the MOUs change the CPI-based rent increase from every 5 years, to annually, for more predicable budgeting.
Body
Background Information:
Pursuant to FAA requirements, the Airport Revenue Fund must be compensated at full currently appraised Fair Market Value rental rates by governmental entities utilizing airport premises. The subject MOUs memorialize the amount of rent paid by CPM to the Airport, as well as the rent adjustment dates, to satisfy that requirement.
The five MOUs being amended pertain to the following facilities:
(1) (MOU #1980-0525) Criminal Justice Center Complex & Jail Facilities
(2) (MOU #1992-0036) Criminal Justice Center Complex Parking Area
(3) (MOU #1990-0209) Sheriff’s Technical Services Building
(4) (MOU #1993-0053) Boot Camp & Juvenile Assessment Center
(5) (MOU #2004-0239) Fleet 46th Street Substation
Fiscal Impact:
Increasing the rent annually, instead of every 5 years, will result in slightly higher annual rent payments because payments will no longer be level throughout each 5-year period.
FY26: Rent (10-1-25 to 9-30-26) is $1,853,803.85, included in FY26 Budget for CPM:
(1) (MOU #1980-0525): $1,164,334.03
(2) (MOU #1992-0036): $322,139.15
(3) (MOU #1990-0209): $131,912.01
(4) (MOU #1993-0053): $218,441.95
(5) (MOU #2004-0239): $16,976.71
Total: $1,853,803.85
FY27: Rent (10-1-26 to 9-30-27) will be $1,908,323.31 (an increase of $54,519.46 (2.94%) as compared to FY26), included in the FY27 Budget for CPM:
(1) (MOU #1980-0525): $1,198,576.53
(2) (MOU #1992-0036): $331,613.10
(3) (MOU #1990-0209): $135,791.47
(4) (MOU #1993-0053): $224,866.22
(5) (MOU #2004-0239): $17,475.99
Total: $1,908,323.31
A total of $1,908,323.22 was confirmed by the Office of Management and Budget (OMB) in the FY27 Proposed Budget for these specific MOUs with Airport as of August 2026. Additionally, a total of $1,998,560.44 was confirmed by OMB for all MOUs with Airport in the FY27 Proposed Budget.
FY28-FY34: Beginning 10-1-27, rent will increase annually by the increase in the CPI-U over the prior year. Rents cannot be calculated until applicable CPI rates are published.
Staff Member Responsible:
Mark Sprague, Director, St. Pete-Clearwater International Airport
Bill Greer, Director, Construction and Property Management
Partners:
St. Pete-Clearwater International Airport
Attachments:
Amendments to MOUs (for signature):
(1) (MOU #1980-0525) Amendment to MOU
(Criminal Justice Center Complex & Jail Facilities)
(2) (MOU #1992-0036) Amendment to MOU
(Criminal Justice Center Complex Parking Areas)
(3) (MOU #1990-0209) Amendment to MOU
(Sheriff’s Technical Services Building)
(4) (MOU #1993-0053) Amendment to MOU
(Boot Camp & Juvenile Assessment Center)
(5) (MOU #2004-0239) Amendment to MOU
(Fleet 46th Street Substation)
MOUs being amended:
(1) (MOU #1980-0525) Memorandum of Understanding
(Criminal Justice Center Complex & Jail Facilities)
(2) (MOU #1992-0036) Memorandum of Understanding
(Criminal Justice Center Complex Parking Areas)
(3) (MOU #1990-0209) Memorandum of Understanding
(Sheriff’s Technical Services Building)
(4) (MOU #1993-0053) Memorandum of Understanding
(Boot Camp & Juvenile Assessment Center)
(5) (MOU #2004-0239) Memorandum of Understanding
(Fleet 46th Street Substation)