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Agenda 07/11/2017 Item #16F107/11/2017 EXECUTIVE SUMMARY Recommendation to approve the Sherriff's Office vacation of tenancy at the Carnestown Substation and to approve a Lease Agreement with Patriot Place Trust for space to be utilized by the Sheriff’s Office for its District 5 Substation. OBJECTIVE: To secure office space for the Sheriff’s Office District 5 Substation. CONSIDERATIONS: Since 1988, the Sheriff’s Office has occupied a building that was constructed by the State at the intersection of U.S. 41 and S.R. 29, known as the Carnestown Substation. The original owner of the property was the Collier family, but in 1996 the property was later deeded to the United States Department of the Interior National Park Services (NPS). The fifty-year lease expired in 2015; however, for the past two years, the NPS has provided Collier County with annual Permits to extend the term. A Permit was not issued for 2016/2017 and, therefore, the County is occupying the Carnestown Substation on a month-to-month basis. The NPS is requesting the County enter into a long-term lease and to make considerable alterations to the building including, but not limited to, removing the above -ground fuel tanks, replacing plate glass windows in the lobby, repairing the septic system, and upgrading the electrical sys tem in addition to paying an annual rent, which the County has paid $10.00 annually in the past. The NPS would require the County to make all necessary repairs to the building at the County’s sole expense and would credit those repairs against the rent. In light of the aforementioned developments pertaining to entering into a lease for the existing location, and taking into consideration the population growth over the past several years along the Collier Boulevard and U.S. 41 corridor, the Sheriff’s Office has determined that it would better serve the community by establishing a substation within this corridor for a more efficient use of manpower coverage. The Sheriff’s Office and Real Property Management staff explored sites along Collier Boulevard and U.S. 41 and found one at Manatee School, which would require funds in excess of $350,000 to grade the property, lime rock and stone the parking area, hook-up utilities, and place a trailer on the site. The second location is a never-before-occupied warehouse/office space located to the east of Collier Boulevard on U.S. 41 at 13245 Tamiami Trail East, Suite 100, whereby the landlord is agreeable to make all interior improvements according to the Sheriff’s specifications and at no cost to the County. The location seems most appropriate for the Sheriff’s Office use because of the swift access to both main arteries to serve the ever-growing population in that area. This location would temporarily satisfy the Sheriff’s Office needs until such time that a permanent location could be developed. The initial lease term would be for three years with three automatic one -year renewals. The annual rent for the first year will be $31,200.00 with the rent increased by 3 percent each year following the first year of occupancy. The common area maintenance charges (CAM) are $98.00 per month for the first year of occupancy and will also increase by 3 percent annually. The County will be responsible for all costs associated with electricity, communications, interior janitorial, air-conditioning maintenance, repairs, system replacement, and filters, as is customary in commercial leases. The landlord will pay for monthly water and sewer charges, but if water usage exceeds $300.00 per month, the County will be invoiced for any overage. The Lease provides for the County to terminate the Lease after the initial lease term by providing the landlord with a 180-day termination notice. The NPS states that once the County vacates the leased property, the building will not be leased to any 07/11/2017 other party and the building will be demolished. The NPS has advised that pursuant to the terms of the Permit, the County is required to demolish the subject building at its expense. However, that requirement is not set forth in the Permit. Staff has asked the NPS to provide its legal support. Depending on the information provided, staff may return with an item advising of the requirement to demolish the building and approval for the expenditure of those funds. Staff estimates demolition costs to be $50,000. Taking into consideration the age of the building, and the requirement for the County to make the repairs at its expense at the direction of NPS, as well as the Sheriff’s Office determination that this location is obsolete for its operation, it would behoove the County to no longer invest in a non-County owned property that needs constant repairs, and move to a temporary leased space until such time that a permanent location can be acquired for the District 5 Substation. Immediate repairs at the current Substation are estimated between $38,000 and $43,000. If this item is approved, staff will timely notify NPS of the County’s intent to vacate the Carnestown Substation. FISCAL IMPACT: The first year’s rent of $31,200.00 to be paid in equal monthly installments of $2,600.00, and the monthly CAM of $98.00, as well as all subsequent annual rent and CAM, will be withdrawn from the General Fund (001), BCC for Sheriff (106010), Rent Building (644100). GROWTH MANAGEMENT IMPACT: None. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for Board action. - JAB RECOMMENDATION: To approve vacating the Carnestown Substation, and approve and authorize the Chairman to execute the Lease Agreement with Patriot Place Trust. Prepared By: Michael Dowling, Sr. Property Management Specialist, Facilities Management Division ATTACHMENT(S) 1. Patriot Place Trust SO Lease 6-30-2017 FINAL (PDF) 07/11/2017 COLLIER COUNTY Board of County Commissioners Item Number: 16.F.1 Doc ID: 3437 Item Summary: Recommendation to approve the Sheriff’s Office vacation of tenancy at the Carnestown Substation and to approve a Lease Agreement with Patriot Place Trust for space to be utilized by the Sheriff’s Office for its District 5 Substation. Meeting Date: 07/11/2017 Prepared by: Title: Property Management Specialist, Senior – Facilities Management Name: Michael Dowling 06/26/2017 5:31 PM Submitted by: Title: Division Director - Facilities Mgmt – Facilities Management Name: Dennis Linguidi 06/26/2017 5:31 PM Approved By: Review: Facilities Management Dennis Linguidi Additional Reviewer Completed 06/26/2017 6:12 PM Public Utilities Operations Support Joseph Bellone Additional Reviewer Completed 06/27/2017 7:53 AM Facilities Management Toni Mott Additional Reviewer Completed 06/27/2017 8:42 AM Solid and Hazardous Waste Dan Rodriguez Additional Reviewer Completed 06/27/2017 10:40 AM Public Utilities Department Margie Hapke Additional Reviewer Completed 06/27/2017 11:04 AM Public Utilities Department Heather Bustos Level 1 Division Reviewer Completed 06/27/2017 3:21 PM Public Utilities Department Heather Bustos Level 2 Division Administrator Review Skipped 06/27/2017 10:50 AM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 06/29/2017 11:59 AM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 06/29/2017 3:05 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/30/2017 10:24 AM Budget and Management Office Ed Finn Additional Reviewer Completed 07/02/2017 3:11 PM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 07/03/2017 8:59 AM Board of County Commissioners MaryJo Brock Meeting Pending 07/11/2017 9:00 AM Lease # LEASE AGREEMENT THIS LEASE AGREEMENT entcrcd into this llth day ofJuly,2017,bctwcen PATRIOT PLACE TRUST,whose mailing address is 13245 Tatniatni Trail East,Suitc 101,Naplcs,FloHda 34114,hereina■cr referred to as∥LESSOR",and COLLIER COUNTY,a political subdivision Of the State of FloHda,whose mailing address is 3335 East Tmiani Trail, Naplcs, Suite 101, FloHda 34112, hcrcina■cr refcrrcd as∥LESSEE" WITNESSETH In considcration of thc mutual covenants contained herein, and other valuable consideration, the panies agrcc as follows: ARTICLE l Demised Premises LESSOR hereby leases to LESSEE and LESSEE hereby leases from LESSOR approximately 2,500 square feet of office space, indoor storage area, and outdoor vehicle parking located at 13245 East Tamiami Trail, Naples, Florida 34114, as seen on Exhibit 'A' which is attached hereto and made a part of this Lease, for the sole purpose ofoperating a government office. 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. ARTICLE 2. Term of Lease LESSEE shall have and hold the Demised Premises for a term of three (3) years ('lnitial Term') commencing on September 15,2017 and ending September 14,2020. LESSEE is granted the option, provided it is not then in delault of any ofthe terms of this Lease, to automatically renew same for three (3) additional terms ofone (l) year each, under the terms and conditions as provided herein. LESSEE, however, reserves the right to terminate this Lease, any time after the Initial Term, with or without cause, upon one hundred and eighty days (180) days prior written notice of such termination to LESSOR at the address set forth in ARTICLE 13 of this Lease. Said notice shall be effective upon actual receipt by LESSOR. LESSEE shall not be required to provide LESSOR with any advanced rent such as security deposit or holding rent. LESSEE is tax exempt and shall provide LESSOR with its Tax Certificate showing its exempt status. ARTICLE 3 Rcnt LESSEE hereby covenants and agrees to pay as base rent for the Demised Premises the sum of Thirty-one Thousand Two Hundred Dollars ($31,200.00) for the first year's rent to be paid in equal monthly installments of Two Thousand Six Hundred Dollars ($2,600.00). ③ All rental payments shall be due and payable in advance on the first day of every calendar month during the term hereof. If the terms of this Lease shall commence on a day other than the first day of the month, LESSEE shall pay rental equal to one thirtieth (l/30th) of the monthly rental multiplied by the number olrental days ofsuch fractional month. The annual rent for all renewals thereto shall be calculated as described in Article 4 below. ARTICLE 4. Renewal Term Rent Following the first full year of occupancy, the annual rent shall be increased by three percent (3%) compounded for each year throughout the lile ofthe lease. ARTICLE 5. Other Expenses and Charses In addition to the monthly rent, the LESSEE shall pay LESSOR an additional Ninety-eight Dollars ($98) per month for Common Area Maintenance fees. This amount shall be increased annually by three percent (3%) compounded for each year throughout the life ofthe lease. LESSEE shall pay all costs associated with electricity, telephone and communications charges, interior janitorial, trash removal, interior pest control, air-conditioning maintenance, replacement, and filters. LESSOR shall be responsible for alt elements of the maintenance and repair ofthe building, exterior landscaping and irrigation, exterior pest control, and those items within the Demised Premises not stated above, including but not limited to electrical systems. LESSOR shall provide and pay for water/sewer monthly charges at the Demised Premises, however, if LESSEE should exceed normal water usage, which has been established by LESSOR at the commencement of this Lease to be $300.00 per month, LESSOR may invoice LESSEE on a monthly basis for LESSEE'S overage of the established amount for water use and those invoices shall be provided to LESSEE showing the consumption for the Demised Premises. ARTICLE 6. Modifications to Demised Premises Prior to making any changes, alterations, additions or improvements to the Demised Premises, LESSEE will provide to LESSOR all proposals and plans for alterations, improvements, changes or additions to the Demised Premises for LESSOR'S prior written approval, specifuing in writing the nature and extent of the desired alteration, improvement, change, or addition, along with the contemplated starting and completion time for such project. LESSOR or its designee will then have sixty (60) days within which to approve or deny in writing said request for changes, improvements, alterations or additions. LESSOR shall not unreasonably withhold its consent to required or appropriate alterations, improvements, changes or additions proposed by LESSEE. If after sixty (60) days there has been no written rejection delivered by LESSOR to LESSEE regarding-said proposals or plans, then such silence shall be deemed as an APPROVAL to such request ofLESSEE. LESSEE covenants and agrees in connection with any maintenance, repair work, erection, construction, improvement, addition or alteration of any authorized modifications, additions or improvements to the Demised Premises, to observe and comply with all then and future applicable [aws, ordinances, rules, regulation, and requirements of the United States of America, State of Florida, County of Collier, and any and all govemmental agencies having jurisdiction over the Demised Premises. All alterations, improvements, and additions to the Demised Premises shall at once, when made or installed, be deemed as attached to the freehold and to have become property of LESSOR. Prior to the termination of this Lease or any renewal term thereof, or within thirty (30) days thereafter, if LESSOR so directs, LESSEE shall promptly remove all such additions, improvements, alterations, fixtures and installations which were placed in, on or upon the Demised Premises by or on behalf of LESSEE, and which are designated in said notice, and repair any damage occasioned to the Demised Premises by such removal and in default thereof, LESSOR may complete said removals and repairs at LESSEE'S expense. ARTICLE 7. Access to Demised Premises LESSOR, its duly authorized agents, representatives and employees, shall have the right after reasonable oral notice to LESSEE, to enter into and upon the Demised Premises or any part thereof at all reasonable hours for the purpose of examining same and making repairs or janitorial service therein, and for the purposes of inspection for compliance with provisions of this Lease Agreement. ARTICLE 8. Assisnment and Suble$ing 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, other than another County agency, to occupy same without the prior expressed written consent ofLESSOR. Any such assignment or subletting, even with the consent of LESSOR, shall not relieve LESSEE from liability for payment of rent or other sums herein provided or from the obligation to keep and be bound by the terms, conditions and covenants of this Lease. The acceptance of rent from any other person shall not be deemed to be a waiver of any ofthe provisions of this Lease or to be a consent to the assignment ofthis Lease or subletting ofthe Demised Premises. ARTICLE 9. Indemnity and Insurance Subject to the limitations of Section 768.28, Florida Statues, LESSEE shall indemniff and save harmless the LESSOR from and against any and all claims, actions and suits, and from and against any and all losses, damages, costs, charges, reasonable attomeys' fees, pal,rnents, expenses and liabilities which LESSOR may sustain or incur to the extent arising from the negligent act or negligent omission ofLESSEE or its agents, contractors or employees. LESSOR shall indemnifr and save harmless the LESSEE from and against any and all claims, actions and suits, and from and against any and all losses, damages, costs, charges, reasonable attorneys' fees, payments, expenses and liabilities which LESSEE may sustain or incur due to the sole negligent act or negligent omission of LESSOR. LESSEE shall maintain during the course of this Lease, or any renewal thereof, comprehensive general liability coverage including bodily injury and property damage, premises and operations coverage, products and completed operations coverage, broad form property damage coverage, automobile liability coverage including owned automobiles, non-owned automobiles and hired automobiles and contractual liability coverage in an amount of not less than One Million and 00/100 Dollars ($1,000,000.00) combined single limits. If LESSEE falls under the State of Florida Worker's Compensation Law, coverage shall be provided for all employees. The coverage shall be for statutory limits in compliance with the applicable State and Federal laws. The policy must include Employer's Liability with a limit of One Hundred Thousand and 00/100 Dollars ($ 100,000.00) each accident. ③ LESSOR and LESSEE on behalf of themselves and all others claiming under them, including any insurer, waive all claims against each other, including all rights of subrogation, for loss or damage to their respective property (including, but not limited to, the Demised Premises) arising from fire, smoke damage, windstorm, hail, vandalism, theft, malicious mischief and any of the other perils normally insured against in an "all risk" of physical loss policy, regardless of whether insurance against those perils is in effect with respect to such party's property and regardless of the negligence of either party. If either party so requests, the other party shall obtain from its insurer a written waiver of all rights of subrogation that it may have against the other party. LESSEE shall give prompt notice to LESSOR in case of fire or accidents in the Premises or in the Building or of defects therein or in the fixtures or equipment. LESSEE hereby acknowledges that LESSOR shall not be liable for any intemrption to LESSEE's business for any cause whatsoever, and that LESSEE shall obtain business intemrption insurance coverage should LESSEE desire to provide coverage for such risk. ARTICLE 10. Maintenance LESSEE shall, at its sole cost and expense, keep the Demised Premises clean at all times. If said Demised Premises are not kept clean in the opinion of LESSOR, LESSEE will be so advised in writing. If corrective action is not taken within thirty (30) days of the receipt of such notice, LESSOR will cause the same to be cleaned and corrected and LESSEE shall assume and pay all necessary cleaning costs and such costs shall constitute additional rent which shall be paid by LESSEE within thirty (30) days of receipt of written notice of costs incurred by LESSOR. ARTICLE I l. Default by LESSEE Failure of LESSEE to comply with any provision or covenant of this Lease shall constitute a default and LESSOR may, at LESSOR'S option, terminate this Lease after thirty (30) days written notice to LESSEE, unless the default be cured within that notice period (or such additional time as is reasonably required to correct such default). ARTICLE 12. Default by LESSOR Failure of LESSOR to comply with any provision or covenant of this Lease shall constitute a default and LESSEE may, at LESSEE'S option, terminate this Lease after thirty (30) days written notice to LESSOR, unless the default be cured within that notice period (or such additional time as is reasonably required to correct such default). ARTICLE 13. Notices Any notice which LESSOR or LESSEE may be required to give to the other party shall be in writing to the other party at the following addresses: LESSEE: Board of County Commissioners c/o Real Property Management 3335 Tamiami Trail East Naples, Florida 34112 LESSOR: Mr. Christopher Morra Patriot Place Trust 13245 Tamiami Trail East, Suite l0l Naples, Florida 34114 ① ARTICLE 14. Surrender of Premises LESSEE covenants and agrees to deliver up and surrender to LESSOR possession of the Demised Premises upon expiration of this Lease, or its earlier termination, 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 fully understands that the police and law enforcement security protection provided by law enforcement agencies to the Demised Premises is limited to that provided to any other business or agency situated in Collier County, and LESSOR acknowledges that any special security measures deemed necessary for additional protection of the Demised Premises shall be the sole responsibility and cost of LESSEE and shall involve no cost or expense to LESSOR. LESSEE expressly agrees for itself, its successor and assigns, to relrain from any use of the Demised Premises which would interfere with or adversely affect the operation or maintenance of LESSOR'S standard operations. ARTICLE 16. 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 17. Effective Date This Lease Agreement shall become effective upon execution by both LESSOR and LESSEE. ARTICLE 18. Goveming Law This Lease Agreement shall be govemed and construed in accordance with the laws of the State of Florida. Signatures appear on the following page. IN WIttESS WHER130F,the parties hereto have hereundcr set fbrth their hands and scals. AS TO THE LESSOR: PATRIOT PLACE TRUST DATED: WITNESSES: BY: CHRISTOPER P.MORRA,as Trustec WITNESS (signature) print name WITNESS (signature) print name AS TO THE LESSEE: DATED:BOARD OF COUNTY COMヽ 41SSIONERS, COLLIER COUNTY,FLORIDA ATTEST: DWIGHT E.BROCK,Clcrk BY:BY: Deputy Clerk PENNY TAYLOR,Chaillllan Approved as to form and legality: Exhibit`A' 1 3245 Talniallli Trail East Naples,FloHda 34114 Suitc llXl ③