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Backup Documents 03/25/2014 Item #16G1 ORIGINAL DOCUMENTS CHECKLIST & ROUTING SLIP 16 G TO ACCOMPANY ALL ORIGINAL DOCUMENTS SENT TO THE BOARD OF COUNTY COMMISSIONERS OFFICE FOR SIGNATURE Print on pink paper. Attach to original document. The completed routing slip and original documents are to be forwarded to the County Attorney Office at the time the item is placed on the agenda. All completed routing slips and original documents must be received in the County Attorney Office no later than Monday preceding the Board meeting. **NEW** ROUTING SLIP Complete routing lines#1 through#2 as appropriate for additional signatures,dates,and/or information needed. If the document is already complete with the exception of the Chairman's signature,draw a line through routing lines#1 through#2,complete the checklist,and forward to the County Attorney Office. Route to Addressee(s) (List in routing order) Office Initials Date 1. 2. 3. County Attorney Office County Attorney Office KN 4/11/14 4. BCC Office Board of County 'r b Commissioners v'.f / `4\z \Y--\\ 5. Minutes and Records Clerk of Court's Office caml�►„` I 1�r� (� p.��,0t PRIMARY CONTACT INFORMATION � Normally the primary contact is the person who created/prepared the Executive Summary. Primary contact information is needed in the event one of the addressees above,may need to contact staff for additional or missing information. Name of Primary Staff Ge ue,Operations Director,Growth Phone Number 252-5169 Contact/ Department anage t Division Agenda Date Item w s 3/25/14 ' Agenda Item Number 16-G-1 v Approved by the BC Type of Document Agreement to Pay Past Due Rent Number of Original 1 Attached Documents Attached PO number or account number if document is N/A to be recorded INSTRUCTIONS & CHECKLIST Initial the Yes column or mark"N/A" in the Not Applicable column,whichever is Yes N/A(Not appropriate. (Initial) Applicable) 1. Does the document require the chairman's original signature? KN 2. Does the document need to be sent to another agency for additional signatures? If yes, KN provide the Contact Information(Name;Agency;Address;Phone)on an attached sheet. 3. Original document has been signed/initialed for legal sufficiency. (All documents to be KN signed by the Chairman,with the exception of most letters,must be reviewed and signed by the Office of the County Attorney. 4. All handwritten strike-through and revisions have been initialed by the County Attorney's KN Office and all other parties except the BCC Chairman and the Clerk to the Board 5. The Chairman's signature line date has been entered as the date of BCC approval of the KN document or the final negotiated contract date whichever is applicable. 6. "Sign here"tabs are placed on the appropriate pages indicating where the Chairman's KN signature and initials are required. 7. In most cases(some contracts are an exception),the original document and this routing slip KN should be provided to the County Attorney Office at the time the item is input into SIRE. Some documents are time sensitive and require forwarding to Tallahassee within a certain time frame or the BCC's actions are nullified. Be aware of your deadlines! 8. The document was approved by the BCC on 4/8/14 and all changes made during the KN meeting have been incorporated in the attached document. The County Attorney's Office has reviewed the changes,if applicable. 9. Initials of attorney verifying that the attached document is the version approved by the K BCC, all changes directed by the BCC have been made, and the document is ready for he Chairman's signature. AUTHORIZED BY BOARD—COPY OF EXECUTIVE SUMMARY ATT I.Forms/County Forms/BCC Forms/Original Documents Routing Slip WWS Original 9.03.04,Revised 1.26.05,Revised 2.24.05;Revised 11/30/12 166 . EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners, in its capacity as the Collier County Airport Authority, authorize staff to accept a payment plan that was proposed during discussions with Gulf Coast Design Products,Inc. OBJECTIVE: To obtain the Board of County Commissioners approval for staff to accept the payment plan offered by Gulf Coast Design Products, Inc. This plan requests a waiver of the interest charges associated with past due rent. CONSIDERATIONS: On February 25, 2014 under item 11B the Board directed staff to work with the tenants of the Airport Authority to achieve compliance with all lease requirements. During staff's review of Airport leases it was noted that Gulf Coast Design Products, Inc. was $22,864.60 (eleven months total) behind in payments on its sub-lease with the Immokalee Regional Airport. Based on an analysis of account activity, staff determined that $3,003.43 in interest charges (15% per year on the past due rent) were owed as well. It was also determined that only$421.09 of interest charges had been recorded in the financial records. In mid-February 2014 staff began communications with the tenant with the goal of bringing them current on their rent payments as soon as possible. The tenant immediately paid two of the back rent payments, and entered into a dialogue aimed at resolving the remaining nine months due. As a result of these discussions, staff agreed to support and bring to the Board a payment plan that would provide for waiver of the interest charges if all the remaining back rent was paid by the end of 2014 in strict accordance with the agreed upon payment schedule (Exhibit A). Staff believes that an interest charge waiver is reasonable in light of the fact that the Airport had not computed and included these charges on the tenant's invoices. Failure to invoice the tenant does not obligate the Airport to waive the interest charges, but is being requested in order to incentivize prompt payment. If the Board authorizes this payment plan, the County Attorney's Office will draft the formal agreement for execution. Once the tenant fulfills its obligations under this agreement (current on rent payment by the end of calendar year 2014) the Airport will write off the interest. Between now and that point however the interest will continue to accrue. If the conditions of the agreement are not fulfilled, the accumulated interest amount will also be due upon demand at the end of 2014. Note that the sub-lease agreement with Gulf Coast Design Products, Inc. expired in January 2007. As a result, the tenant has effectively been on a month to month tenancy for the past 7 years. Furthermore, rent reductions that were granted in February 2009, but not formalized in an executed sublease, reduced the rental rate to $2.04 per square foot. Staff's intent is to give the tenant an opportunity to get current, within a reasonable period of time, while simultaneously working to negotiate and execute a fair market based sublease to take effect January 1St 2015, when the payment plan period expires. FISCAL IMPACT: There is no fiscal impact associated with this Executive Summary. GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact associated with this Executive Summary. 16G . 1 LEGAL CONSIDERATIONS: The County Attorney's Office has reviewed this item and approved it as to form and legality. Majority support is required for approval. -KN RECOMMENDATION: That the Board of County Commissioners, in its capacity as the Collier County Airport Authority, authorize staff to the accept Gulf Coast Design Products, Inc. proposed payment plan and write-off the interest charges once the tenant fulfills their obligations under the proposed payment plan and authorize the Chairman to execute updated lease & payment plan. Prepared by: Gene Shue, Operations Director, Growth Management Division Attachment: 1)Exhibit A, Gulf Coast Design Products Payment Plan 16G 1 • AGREEMENT TO PAY PAST DUE RENT THIS AGREEMEMNT is made this `L day of Arm 1— , 2014, by and between the BOARD OF COUNTY COMMISSIONERS, COLLIER COUNTY, FLORIDA, in its capacity as the COLLIER COUNTY AIRPORT AUTHORITY (hereinafter "COUNTY"), and GULF COAST DESIGN PRODUCTS, INC. a Florida Corporation(hereinafter "GCD"). WITNESSETH: WHEREAS, GCD is and has been a sublessor of a certain premises located at the Immokalee Regional Airport located in Collier County, Florida; and WHEREAS, GCD is in arrears for rental payments due from June 2012 through October 2012, inclusive, in the amount of$2,078.60 for each month, and, in addition, for rental payments due for November and December of 2013 and for January and February of 2014, in the amount of$2,078.60 for each said month; and WHEREAS, GCD wishes to pay all amounts of rent due in arrears and the County wishes to be paid the rental due; and WHEREAS, the parties hereto have come to an understanding for the payment of the rental arrearage to be memorialized in this Agreement; and WHEREAS, GCD wishes to remain on the premises and continue to timely pay monthly rental payments as due on the first of each month. NOW THEREFORE, in consideration of the preambles set forth hereinabove, the mutual promises set forth herein below, and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows: 1. The preambles set forth hereinabove are incorporated herein as though set forth verbatim and are expressly made part of this Agreement. Page 1 of 3 , . 16G 1 2. The County agrees that should GCD pay all arrearages of rent set forth herein prior to January 1, 2015, the County will forego and waive all interest due on the unpaid rental payments of fifteen(15%) percent per annum. 3. GCD agrees to pay the rental arrearage according to the following schedule: a) $2,078.60 before April 30, 2014. b) $2,078.60 on or before May 1, 2014. c) $2,078.60 on or before September 1, 2014. d) $4,157.20 on or before October 1, 2014. e) $4,157.20 on or before November 1, 2014. f) $4,157.20 on or before December 1, 2014. 4. GCD further agrees to maintain current rental payments of$2,078.60 per month from April 2014 through December 2014 pursuant to the rental due date currently in place. 5. Should GCD not strictly comply with the payment schedules set forth in paragraphs 3 and 4 hereinabove, the County, at its sole discretion, may accelerate all payments due hereunder, including interest of fifteen (15%) percent per annum on any amounts not paid, upon Notice given to GCD by posting same on the entry way of the premises, and pursue all its legal remedies; should the County deem it necessary to pursue its legal remedies because of a breach of this Agreement by GCD, then GCD agrees to pay all attorneys' fees and costs of collection, including litigation costs and attorneys' fees, incurred by the County. 6. This Agreement may be signed in counterparts. 7. This Agreement shall be governed by the laws of the State of Florida. 8. The parties hereto agree that this Agreement shall be deemed to be performed in Collier County, Florida, and that should litigation become necessary to enforce this Agreement, the venue for such litigation shall be in Collier County, Florida. Page 2 of 3 16G 1 9. The parties agree that this Agreement represents the full terms of the Agreement between the parties. No modifications to this Agreement shall be binding on any party unless the modification is in writing and executed by both parties. WHEREFORE WE have placed our hands and seals on the date first above-written. BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA In its capacity as the COLLIER COUNTY AIRPORT AUTHORITY By fi TOM HENNING A CHAIRMAN ti-.� .zt& \,._\ - A-2-s\ L\ATTEST: DWIGHT E.'. (?.6I rJ" CLERK . , Y B� sr DEIP 1a • i.,-' an s Approved a§i99 i legality: Kevin L. Noell, Esq. Assistant County Attorney GULF COAST DESIGN PRODUCTS, INC. By Oatti 9 71t4( si"r7o , , c4vs 4 i A-z 744Si b Pirleft,0 Print Name and Title Page 3 of 3