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Agenda 03/14/2017 Item #16B103/14/2017 EXECUTIVE SUMMARY Recommendation to approve a Short Term at Will Lease Agreement between the Board, acting as the CRA Board, and T.T of Naples Inc., for property located at 1991 Tamiami Trail East for vehicle storage. OBJECTIVE: To allow property owned by the Community Redevelopment Agency (CRA), located at 1991 Tamiami Trail East, to be leased on a month-to-month basis. CONSIDERATIONS: The Bayshore CRA was contacted by T.T. of Naples, Inc. regarding the potential to lease temporary space at 1991 Tamiami Trail East. T.T. of Naples, Inc. currently operates a high-end vehicle dealership at 900 9th Street North in the City of Naples and is in need of overflow vehicle storage space while their new facility is under construction. The new location will be at 3147 Davis Boulevard (within the Bayshore CRA district). This parcel is currently part of the property being offered for sale to Real Estate Partners International, Inc. (REPI). After gaining approval from REPI representatives, staff moved forward with a month-to- month lease with T.T. of Naples, Inc. T.T of Naples, Inc. (Lessee) is a licensed, insured, and bonded auto dealer. The Lessee desires to lease open space at 1991 Tamiami Trail East (Property) in order to store vehicles. The Short Term At Will Lease Agreement (Lease) provides the following conditions: a. monthly rent will be $2,500 or $30,000 per year; b. no other use than vehicle storage will be allowed; c. all required permits will be obtained by Lessee in order to conduct the approved use; d. only authorized employees of the Lessee are permitted on the Property; e. no hazardous materials shall be discharged in the air, ground, or sewer; f. maintenance of landscaping and fencing will be the sole responsibility and cost of the Lessee; g. the Property shall remain clean and free from rubbish, dirt, and other debris at all times; h. no temporary or permanent structures are allowed to be placed upon the Property; i. Lessee shall be advised by the CRA to vacate the Property with thirty days advance notice j. police and law enforcement security protection provided by law enforcement agencies to the Property are limited to those provided to any other business or agency situated in Collier County, and Lessee acknowledges that any special security measures deemed necessary for additional protection of the Property and of Lessee’s operation shall be the sole responsibility and cost of Lessee and shall involve no cost or expense to the CRA or County; k. will vacate in thirty (30) days once notice is given by the CRA or County. Pursuant to Florida Statute 73.013, this Lease was advertised in the Naples Daily News on February 10, 2017. A copy of the Legal Notice and Affidavit of Publication are filed in Real Property Management for review. FISCAL IMPACT: The cost to advertise this lease and any associated fees are available in the Bayshore Gateway CRA Fund (187) budget. Net proceeds from the lease will be applied to the prepayment of the principal outstanding under the Collier County Community Redevelopment Agency Taxable Note, (Fifth Third Bank), Series 2013. LEGAL CONSIDERATIONS: This item is approved for form and legality and requires a majority vote for Board approval. -JAB GROWTH MANAGEMENT IMPACT: The Short Term At Will Lease will support the goals, 16.B.1 Packet Pg. 567 03/14/2017 objectives and policies outlined in the Future Land Use Element - Bayshore Gateway Triangle Redevelopment Overlay. RECOMMENDATION: To execute a Short Term at Will Lease Agreement between the CRA and T.T of Naples Inc. on property located at 1991 Tamiami Trail East for vehicle storage. Prepared By: Michael Dowling, Sr. Property Management Specialist, Facilities Management Division ATTACHMENT(S) 1. CRA TT of Naples Short term At Will Lease (PDF) 16.B.1 Packet Pg. 568 03/14/2017 COLLIER COUNTY Board of County Commissioners Item Number: 16.B.1 Doc ID: 2801 Item Summary: Recommendation to approve a Short Term at Will Lease Agreement between the Board, acting as the CRA Board, and T.T of Naples Inc., for property located at 1991 Tamiami Trail East for vehicle storage. Meeting Date: 03/14/2017 Prepared by: Title: Property Management Specialist, Senior – Facilities Management Name: Michael Dowling 02/24/2017 4:29 PM Submitted by: Title: Division Director - Facilities Mgmt – Facilities Management Name: Dennis Linguidi 02/24/2017 4:29 PM Approved By: Review: Public Transit & Neighborhood Enhancement Michelle Arnold Additional Reviewer Completed 02/24/2017 4:49 PM Capital Project Planning, Impact Fees, and Program Management Elly McKuen Additional Reviewer Completed 02/25/2017 8:16 AM Public Services Department Hailey Margarita Alonso Level 1 Division Reviewer Completed 02/27/2017 1:14 PM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 02/27/2017 4:56 PM Public Services Department Steve Carnell Level 2 Division Administrator Review Completed 02/28/2017 7:58 AM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 02/28/2017 8:17 AM Budget and Management Office Ed Finn Additional Reviewer Completed 02/28/2017 2:48 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 03/01/2017 11:32 AM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 03/05/2017 11:31 AM Board of County Commissioners MaryJo Brock Meeting Pending 03/14/2017 9:00 AM 16.B.1 Packet Pg. 569 Lease # SHORT TERM AT WILL LEASE AGREEMENT THIS SHORT TERM AT WILL LEASE AGREEMENT ('Lease') entered into this _day of 2017, between TT of Naples Inc., a Florida for profit corporation, whose mailing address is 1742 Commercial Drive, Naples, Florida 34112, hereinafter refened to as "LESSEE," and COLLIER COTINTY COMMTINITY REDEVELOPMENT AGENCY, also known as the CRA, a political subdivision of the State of Florida, whose mailing address is in care of Real Property Management, 3335 East Tamiami Trail, Suite 101, Naples, Florida 34112, hereinafter referred to as ''LESSOR.'' WITNESSETH WHEREAS, the properly that is the subject of this Lease is presently under contract to be sold to a developer to construct a mixed use land development project that will benefit the citizens of the Bayshore Gateway Triangle Community Redevelopment Area as well as the community of Collier County; WHEREAS, it serves a valid public purpose for the properly to be used without modification to generate revenue while the contract is pending; WHEREAS, this Lease was publically noticed in accordance with Section 163.380, Florida Statutes on February 10,2017; In consideration of the mutual covenants contained herein. and other valuable consideration, the parties agree as follows: ARTICLE l. Demised Premises and Use LESSOR hereby leases to LESSEE and LESSEE hereby leases from LESSOR the property located at l99l Tamiami Trail East, Naples, Florida 34112, as shown on Exhibit "A," which is attached hereto and made a part hereof this Lease, hereinafter called the "Demised Premises," situated in the County of Collier and the State of Florida, for the sole purpose of vehicle storage. The Demised Premises is accepted by the LESSEE in 'as is' condition, no other use than the use stated above shall be conducted at the Properfy. LESSEE shall comply with all statutes, ordinances, rules, orders, regulations and the requirements of the federal, state, and city government applicable to its use of the Demised Premises. ARTICLE 2. Term of Lease The term shall begin on March 15,2017 and shall continue on a month-to-month basis. LESSOR and LESSEE reserve the right to terminate this Lease, with or without cause, by providing the other party with thirty (30) days written notice to the address set forth in Article 13 of this Lease. Said notice shall be effective upon placement of the notice in an official depository of the United States Post Office, Registered or Certified Mail, Postage Prepaid. If LESSEE does not vacate the Demised Premises upon the expiration or earlier termination of this Lease, LESSEE shall be a tenant at sufferance for the holdover period and all of the terms and provisions of this Lease shall be applicable during that period, except that LESSEE shall pay LESSOR (in addition to any other sums payable under this Lease) as rent for the period of such holdover an amount equal to 16.B.1.a Packet Pg. 570 Attachment: CRA TT of Naples Short term At Will Lease (2801 : Short Term at Will Lease Agreement between the Board, acting as the CRA two times the base rent which would have been payable by LESSEE had the holdover period been a part of the original terms of the Lease without waiver of Landlord's right to remove LESSEE from the Demised Premises and recover money damages and attorney's fees as permitted by law. ARTICLE 3.Rent LESSEE hereby covenants and agrees to pay as rent for the Demised Premises the sum of $30,000 Dollars per annum to be paid in equal monthly installments of $2,500 each, all in advance on the first day of every calendar month during the term hereof. If the terms of this Lease commence or end on a day other than the first day of the month, LESSEE shall pay rent equal to one thirtieth (V30th) of the monthly base rent multiplied by the number of rental days of such fractional month. LESSEE will also be responsible for the payment of additional rent as provided for in ARTICLE 4 of this Lease. Following the first year of occupancy, the annual rent shall be increased each year thereafter by 3o% compounded annually. ARTICLE 4. Other Expenses and Charges LESSEE shall pay monthly costs associated with its use of the Demised Premises to include electric, water and sewer services used during the tenure of the lease. LESSEE shall connect utilities into its name beginning the first day of the Lease. LESSEE shall acquire all government approvals in connection with its use and occupancy of the Demised Premised and provide copies of such approvals to the LESSOR beginning the first day of the Lease. ARTICLE 5. Modifications to Demised Premises Changes, alterations, additions or improvements to the Demised Premises are not authorized. LESSEE covenants and agrees not to use, occupy, suffer or permit said Demised Premises or any part thereof to be used or occupied for any purpose contrary to law or the rules or regulations of any public authority. The Demised Premises shall only be used for vehicle storage. No buildings or structures shall be utilized in this Lease. Repair and sales are prohibited. ARTICLE 6. Access to Demised Premises Only authorized employees of LESSEE are permitted on the Demised Premises. LESSOR, its duly authorized agents, representatives and employees, shall have the right after reasonable notice to LESSEE, to enter into and upon the Demised Premises or any part thereof at all reasonable hours for the purpose of examining the same and making repairs or providing services therein, and for the purposes of inspection for compliance with the provisions of this Lease. ARTICLE 7. Assignment and Subletting LESSEE covenants and agrees not to assign this Lease or to sublet the whole or any part of the Demised Premises, or to permit any other persons to occupy same. ; "';7' 16.B.1.a Packet Pg. 571 Attachment: CRA TT of Naples Short term At Will Lease (2801 : Short Term at Will Lease Agreement between the Board, acting as the CRA ARTICLE 8. Indemnitv LESSEE, in consideration of Ten Dollars ($10,00), the receipt and sufficiency of which is hereby acknowledged, shall indemnif', defend and hold harmless LESSOR, its agents and employees from and against any and all liability (statutory or otherwise), damages, claims, suits, demands, judgments, costs, interest and expenses (including, but not limited to, attorneys' fees and disbursements both at trial and appellate levels) arising, directly or indirectly, from any injury to, or death of, any person or persons or damage to property (including loss of use thereof) related to (A) LESSEE'S use of the Demised Premises, (B) any work or thing whatsoever done, or any conditions created (other than by LESSOR, its employees, agents or contractors) by or on behalf of LESSEE in or about the Demised Premises, (C) any conditions of the Demised Premises due to or resulting from any default by LESSEE in the performance of LESSEE'S obligations under this Lease, or (D) any act, omission or negligence of LESSEE or its agents, contractors, employees, subtenants, licensee or invitees. In case any action or proceeding is brought against LESSOR by reasons of any one or more thereof, LESSEE shall pay all costs, attorneys' fees, expenses and liabilities resulting therefrom and shall defend such action or proceeding if LESSOR shall so request, at LESSEE'S expense, by counsel reasonably satisfactory to LESSOR. The LESSOR shall not be liable for any injury or damage to person or property caused by the elements or by other persons in the Demised Premises, or from the street or sub-surface, or from any other place, or for any interference caused by operations by or for a governmental authority in construction of any public or quasi-public works. Police and law enforcement security protection provided by law enforcement agencies to the Propefi are limited to those provided to any other business or agency situated in Collier County, and LESSEE acknowledges that any special security measures deemed necessary for additional protection of the Demised Premises and of LESSEE'S operation shall be the sole responsibility and cost of LESSEE and shall involve no cost or expense to LESSOR. The LESSOR shall not be liable for any damages to or loss of, including loss due to petty theft, any property, occurring on the Demised Premises or any part thereof, and the LESSEE agrees to hold the LESSOR harmless from any claims for damages, except where such damage or injury is the result of the gross negligence or willful misconduct of the LESSOR or its employees. ARTICLE 9. Insurance LESSEE shall provide and maintain General Liability and Business Automobile insurance policy(ies), approved by the Collier County Risk Management Division, for not less than One Million Dollars ($1,000,000.00) combined single limits during the term of this Agreement. LESSOR (Collier County) shall be named as an additional insured on the General Liability policy. Evidence of such insurance shall be provided annually to the Bayshore Gateway Community Redevelopment Agency, 3570 Bayshore Drive, Suite 102, Naples, Florida, 34112, for approval, and shall include a provision requiring ten (10) days prior written notice to Collier County Risk Management Department Director with a copy to the Bayshore Gateway Community Redevelopment Agency, in the event of cancellation. The LESSEE acknowledges and agrees that no changes or cancellations to the insurance coverage will occur without thirty (30) days prior written notice to LESSOR. LESSEE shall ensure that LESSEE'S insurance provider will be responsible for notiffing the LESSOR directly of any changes related to insurance coverage. LESSOR reserves the right to reasonably amend the insurance requirements by issuance of notice in writing to LESSEE, whereupon receipt of such notice, LESSEE shall have thirty (30) days in which to obtain such additional insurance. i l:tr I i, :::, j':''-'..: 16.B.1.a Packet Pg. 572 Attachment: CRA TT of Naples Short term At Will Lease (2801 : Short Term at Will Lease Agreement between the Board, acting as the CRA ARTICLE 10. Maintenance LESSEE shall keep the Demised Premises clean and free from weeds, rubbish, dirt, other debris, ARTICLE 11 Default by LESSEE Failure of LESSEE to comply with any provision or covenant of this Lease shall constitute a default and LESSOR may, at its option, terminate this Lease after providing written notice to LESSEE, as specified in Article 2 of this Lease, unless the default be cured within the notice period (or such additional time as is reasonably required to correct such default). ARTICLE 12. Default by LESSOR LESSOR shall in no event be charged with default in the performance of any of its obligations hereunder unless and until LESSOR shall have failed to perform such obligations within thirry (30) days (or such additional time as is reasonably required to correct such default) after notice to LESSOR by LESSEE properly specifoing wherein LESSOR has failed to perform any such obligations. ARTICLE 13. Notices Any notice which LESSOR or LESSEE may be required to give to the other parry shall be in writing to the other pafty at the following addresses: LESSOR: Board of County Commissioners c/o Real Property Management 3335 East Tamiami Trail, Suite 101 Naples, Florida 34112 cc: Office of the Countv Attornev ARTICLE 14. Surrender of Premises LESSEE: TT of Naples, Inc. c/o Terry Taylor, President 505 S. Flagler Drive., Suite 700 West Palm Beach, FL 33401 LESSEE shall deliver up and surrender to LESSOR possession of the Demised Premises at the termination of this Lease, or its earlier termination as herein provided, broom clean and in as good condition and repair as the same shall be at the commencement of the term of this Lease or may have been put by LESSOR or LESSEE during the continuance thereof, ordinary wear and tear and damage by fire or the elements beyond LESSEE'S control excepted. ARTICLE 15. General Provisions LESSEE expressly agrees to refrain from any use of the Demised Premises which would interfere with or adversely affect the operation or maintenance of LESSOR'S standard operations where other operations share common facilities. (a) Rights not specifically granted the LESSEE by this Lease are hereby reserved to the LESSOR. imposed on the rental of the Demised Premises whereLESSEE agrees to pay all sales tax applicable under law. (b) 16.B.1.a Packet Pg. 573 Attachment: CRA TT of Naples Short term At Will Lease (2801 : Short Term at Will Lease Agreement between the Board, acting as the CRA (c)LESSEE agrees to pay all intangible personal properly taxes that may be imposed due to the creation, by this Lease, of a leasehold interest in the Demised Premises or LESSEE'S possession of said leasehold interest in the Demised Premises. ARTICLE 16. Environmental Concerns No hazardous materials shall be discharged in the air, ground, or sewer. LESSEE represents, warrants and agrees to indemnif, reimburse, defend and hold harmless LESSOR, from and against all costs (including attorneys fees) asserted against, imposed on or incurred by LESSOR directly or indirectly pursuant to or in connection with the application of any federal, state, local or common law relating to pollution or protection of the environment. ARTICLE 17. Radon Gas In compliance with Section 404.056, Florida Statutes, all parties are hereby made aware of the following: Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of radon that exceed federal and state guidelines have been found in buildings in Florida. Additional information regarding radon and radon testing may be obtained from your County Public Health Department. ARTICLE 18. Extentof Liens All persons to whom these presents may come are put upon notice of the fact that the interest of the LESSOR in the Demised Premises shall not be subject to liens for improvements made by the LESSEE, and liens for improvements made by the LESSEE are specifically prohibited from attaching to or becoming a lien on the interest of the LESSOR in the Demised Premises or any part of either. This notice is given pursuant to the provisions of and in compliance with Section 713.10, Florida Statutes. ARTICLE 19. Effective Date This Lease shall become effective upon execution by both LESSOR and LESSEE. 16.B.1.a Packet Pg. 574 Attachment: CRA TT of Naples Short term At Will Lease (2801 : Short Term at Will Lease Agreement between the Board, acting as the CRA ARTICLE 20. Governing Law This Lease shall be governed and construed in accordance with the laws of the State of Florida. IN WITNESS WHEREOF, the parties hereto have hereunder set forth their hands and seals. AS TO LESSEE: DATED: BY: WITNESS (signature)TERRY TAYLO& President (print name) WITNESS (signature) (print name) AS TO TFIE LESSOR: DATED: ATTEST: DWIGHT E. BROCK. Clerk , Deputy Clerk Approved as to form and legality: COLLIER COUNTY COMMUNITY REDEVELOPMENT AGENCY COLLIER COUNTY, FLORIDA BY: DONNA FIALA, Chairman Jennifer A. Belpedio, Assistant County Attorney 16.B.1.a Packet Pg. 575 Attachment: CRA TT of Naples Short term At Will Lease (2801 : Short Term at Will Lease Agreement between the Board, acting as the CRA