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Agenda 12/12/2017 Item #16D 412/12/2017 EXECUTIVE SUMMARY Recommendation to approve a Lease Agreement with Kraft Office Center, LLC for a temporary office space for the University Extension Office that was deemed uninhabitable due to damage caused by Hurricane Irma. OBJECTIVE: A Lease Agreement (Lease) is required to secure a temporary office space for the University Extension Service (UES). CONSIDERATIONS: The UES building on Immokalee Road, adjacent to the Fairgrounds, was deemed uninhabitable due to damage caused by Hurricane Irma. The roof has been seriously damaged and compromised, and the fire suppression system was destroyed and is inoperable. At this time, staff has been relocated to a temporary office space at the Max Hasse Community Park and the Code Enforcement office in Immokalee. The Max Hasse location is only available for a short time as Parks and Recreation have had to alter their programming schedule of essential services offered to the community due to UES’s presence at this location. Storage pods were rented and placed at the Immokalee Road location to accommodate UES’s equipment and supplies that have been salvaged from the building. Programs, events, classes, and meetings that have been scheduled for the multipurpose room, classroom, and conference room at UES have been canceled. The event cancellations have led to a loss in program revenue as well as the Division not being able to deliver essential services to the residents of Collier County. Until the building can be repaired, which Facilities Management is estimating may take twelve months, a temporary space is required to accommodate UES staff. Staff has looked at several offices and has determined that the most suitable space is located in the Kraft Building along Pine Ridge Road and I-75. The proposed office space is located at 3530 Kraft Road. The immediate access to I-75 is a major benefit to UES. The office is 2,602 square feet and is furnished with desks and miscellaneous office furniture. The Lease term will be for one year with a provision for early termination by providing the landlord with sixty days’ notice. Staff will also seek an option to extend the lease on a month-by-month basis, if for any reason, additional time is needed at the leased property. The annual rent is Fifty-Two Thousand Forty Dollars ($52,040), with monthly common area maintenance (CAM) costs of Two Thousand One Hundred Forty-Four Dollars and Forty-Eight Cents ($2,144.48), which includes office furniture use, janitorial service and electricity. The funding for rent and CAM will be reimbursed through County property insurance funds. FISCAL IMPACT: The annual rent of $52,040 plus the common area maintenance fees of $25,733.78; a total of $77,773.78, is budgeted in the Countywide Capital Improvement Fund, project number 50154. The funding source will be a reimbursement from the County’s property insurance funds. GROWTH MANAGEMENT IMPACT: There is no Growth Management impact. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for Board action. - JAB RECOMMENDATION: To approve and authorize the Chairman to execute the Lease Agreement with Kraft Office Center, LLC. 12/12/2017 Prepared By: Michael Dowling, Sr. Property Management Specialist, Facilities Management Division ATTACHMENT(S) 1. Kraft Lease and Exhibit 11 15 17 (PDF) 2. Kraft Full Comparison of UES Rental Space (003) 2 (XLSX) 3. University Extension Office Roof Irma (JPG) 4. University Extension Office Roof South Irma (JPG) 5. University Extension Office Multipurpose Room Irma (JPG) 12/12/2017 COLLIER COUNTY Board of County Commissioners Item Number: 16.D.4 Doc ID: 4184 Item Summary: Recommendation to approve a Lease Agreement with Kraft Office Center, LLC for a temporary office space for the University Extension Office that was deemed uninhabitable due to damage caused by Hurricane Irma. Meeting Date: 12/12/2017 Prepared by: Title: Property Management Specialist, Senior – Facilities Management Name: Michael Dowling 11/07/2017 2:27 PM Submitted by: Title: Division Director - Facilities Mgmt – Facilities Management Name: Dennis Linguidi 11/07/2017 2:27 PM Approved By: Review: University Extension Services Twyla Leigh Additional Reviewer Completed 11/07/2017 3:03 PM Operations & Veteran Services Sean Callahan Additional Reviewer Completed 11/07/2017 3:04 PM Facilities Management Toni Mott Additional Reviewer Completed 11/07/2017 3:07 PM Facilities Management Dennis Linguidi Additional Reviewer Completed 11/07/2017 4:26 PM Public Services Department Todd Henry Level 1 Division Reviewer Completed 11/07/2017 4:30 PM Public Services Department Steve Carnell Level 2 Division Administrator Review Completed 11/08/2017 8:09 AM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 11/08/2017 8:45 AM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 11/08/2017 8:52 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 11/08/2017 11:36 AM Office of Management and Budget Susan Usher Additional Reviewer Completed 11/08/2017 2:28 PM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 11/30/2017 11:10 AM Board of County Commissioners MaryJo Brock Meeting Pending 12/12/2017 9:00 AM Lease # LEASE AGREEMENT THIS LEASE AGREEMENT entered into this 12th day of December, 2017, between KRAFT OFFICE CENTER, LLC, a Florida limited liability company, whose mailing address is 1500 5th Avenue South #117, Naples, Florida 34102, hereinafter referred to as "LESSOR", and COLLIER COUNTY, a political subdivision of the State of Florida, whose mailing address is 3335 East Tamiami Trail, Naples, Suite 101, Florida34Il2, hereinafter referred as "LESSEE". WITNESSETH In consideration of the mutual covenants contained herein, and other valuable consideration, the parties agree as follows: ARTICLE l. Demised Premises LESSOR hereby leases to LESSEE and LESSEE hereby leases from LESSOR approximately 2,602 square feet of office space located at 3530 Kraft Road, Naples, Florida 34105, Suite 201, as seen on Exhibit 'A' which is attached hereto and made apart of this Lease, for the sole purpose of operating a government office, together with employee parking, overnight parking for three County vehicles and parking for a twenty- foot-long trailer. LESSEE shall have card access or another form of entry to the building and to the Demised Premises at all times, seven days, twenty-four hours. 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 one (l) year ('Initial Term') commencing on December 15, 2017 and ending December 14,2018. LESSEE and LESSSOR reserve the right to terminate this Lease, at any time, with or without cause, by providing sixty-day (60) days prior written notice of such termination to the other party at the address set forth in ARTICLE 13 of this Lease. 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. LESSEE hereby covenants and agrees to pay as base rent for the Demised Premises the sum of Fifty- Two Thousand Forty Dollars ($52,040.00) for the first year's rent to be paid in equal monthly installments of Four Thousand Three Hundred Thirty-Six Dollars and Sixty-Seven Cents (54,336.67)- 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 Rent month, LESSEE shall pay rental equal !o one thirtieth (l/30th) of the mon&ly rental multiplied by the number of rental days ofsuch fractional month. ARTICLE 4. Left blank intenlionally. ARTICLE 5. Other Expenses and Charees In addition to the monthly rent, the LESSEE shall pay LESSOR an additional Two Thousand One Hundred Forty-Four Dollars and Forty-Eight Cents ($2,144.48) per month for Common Area Maintenance fees, which includes electricity, water, trash removal, and janitorial service. LESSEE shall pay all monthly costs associated with telephone and commulications charges. LESSOR shall be responsible for all elements of the maintenance and repair of the building, exterior landscaping and irrigation, exterior pest control, plumbing and electrical systems, air-conditioning repair, maintenance and replacement, and all items within the Demised Premises not stated above. LESSOR shall provide and pay for water/sewer monthly charges at 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, specif,ing 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 allerations, improvements, changes or additions proposed by LESSEE. lf after sixty (60) days there has been no written rejection delivered by LESSOR to LESSEE regardingsaid proposals or plans, then such silence shall be deemed as an APPROVAL to such request of LESSEE. 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 observ€ and comply with all then and future applicable laws, ordinances, rules, regulation, and requirements ofthe United States of America Stete 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 lreehold and to have become property of LESSOR. Prior to the termination of this Lease or any renewal term thereot or within tlirry (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 behalfofLESSEE, 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 orjanitorial service therein, and for the purposes of inspection for compliance with provisions of this Lease Agreement. ARTICLE 8. Assiqnment and Sublettine LESSEE covenants and agtees not to assign this Lease or to sublet the whole or any part of the Demised Premises, or to permit any other persons, oth€r than another County agency, to occupy same without the prior expressed wdtten consent of LESSOR. Any such assignrnent or suble$ing, even with the consent of iESSOn, shall not relieve LESSEE fiom 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. ih. u"".pt*.. ofrent 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 of this Lease or subletting of the Demised Premises. ARTICLE 9. Indemnitv and Insurance Subject ro the limitalions of Section 768.28, Florida Starues, LESSEE shall indemnifr and save harmless the LESSOR fiom and against any and all claims, actions and suits, and from and against aDy and all losses, damages, costs, charges, reasonable attomeys'fees, payments, expenses and liabilities which LESSOR *uy ru.tui, or incur to the extent arising from the negligent act or negligent omission ofLESSEE or its agents, contractors or employees. LESSOR shall indemnifu and save harmless the LESSEE from and against any and all claims, actions and suits, and from and against any and alt losses, damages, costs, charges, reasonable attomeys' fees, payments, expenses aud 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 "ou"ruga including owned automobiles, non-owned automobiles and hired automobiles and contractual Iiability coverage in an amount of no1 less than One Million and 00/100 Dollars ($1,000,000'00) combined single limits. If LESSEE falls gnder the State of Florida Workels 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. LESSOR and LESSEE on behalf of themselves and all others claiming under them, including any insurer, waive atl claims against each other, including all righls 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 inswed against in an "alt risk" oi physical loss policy, regardless of whether insurance against those perils is in effect with respect to such pariy's property and regardless ofthe negligence of either party. If either Party so requests, the other pany 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 Bullding or of defects therein or in the fixtures or equipment. LESSEE hereby acknowledges that LESSOR shall not be liable lbr any intem.rption to LESSEE's business for any cause whatsoever, and that LESSEE shall obtain business intem:ption insurance coverage should LESSEE desire to provide coverage for such risk. ARTiCLEI0. Maintenance LESSOR shall provide janitorial service to the Demised Premises on a weekly basis' ARTICLE I I. Default bv LESSEE F'ailure of LESSEE lo comply with any provision or covenant of this Lease shall constitute a default and LESSOR may, at I-ESSOnt 'option, rerminate.this Lease after thirry (30) days written notice to LESSEE, wrless the default be "*.d *ithin that notice period (or such additional time as is reasonably required to conect such default). ARTICLE 12, DtIbUil.bYlESSQB Failure of LESSOR to comply with any provision or covenant of ttris Lease shall constitute a default and LESSEE may, at LESSEE S'iptlon, t#inate this Lease after thirty (30) days written notice to LESSOR, unless the default be ,rrr"d *ithin that notice period (or such additional lime as is reasonably required to correct such default). ARTICLE 13. Notices Any notice which LESSOR or LESSEE may be required to givo to the other party shall be in writing to the other party at the following addresses: LESSEE: Board of COun,COmmiSSioners c/o Red Propc」けManagcmcnt 3335 Tantiatni Trall East Naplcs,Florida 34112 ARTICLE 14 Surendcr of Prcmiscs LESSOR: Kra■Ofrlce Ccnter,LLC 1500 5tll Avcnuc South,Suite lll Naplcs,FIorida 34114 LESSEE covenants and agrees tO deliver up and surrender to LESSOR possession of the DemiSed premises upon expiration oftni. ii*",o, 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 kase or may have been put by LESSOR ot LESSEE during the conlinuance 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 plotection provided by law enforcement agencies to the Demised Premises is limited to that provided to any other business or agency situated in Cotlier County, and LESSOR acknowledges that any special security. measures deemed necessary fot additional prolection of the oemised Premises'shal1 be the sole responsibility and cost of LESSEE and shall involve no cosl or expense to LESSOR.4 LESSEE expressly agrees for itseli its successor and assigns, to refrain from any use of the Demised Prernises which would interfere with or adversely affect the operation or maintenance of LESSOR'S standard operations. ARTICLE 16. Radon Gas ln 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 suflicient 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 Ftorida. 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. Govemine Law This Lease Agreement shall be govemed 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 THE LESSOR: DATED: KRAFT OFFICE CENTER,LLC BY: Signature WITNESS (signature) Titlc print naFne WITNESS (signature) print name LESSEE's signature appears on the following page.5 AS TO THE LESSEE: DATED: ATTEST: DWIGHT E.BROCK,Clerk BY: Deputy Clerk Approved as to form and legalitY: BOARD OF COUNTY COⅣIMISS10NERS, COLLIER COUNTY,FLORIDA PENNY TAYLOR, Chairman BY: 鰤bttBClpedi―m county Attomcy6 Exhibit`A' Suite 201 3530 Kratt Road Naples,Florida 34105 Potential Leasing Options for University Extension Office Space Rank Location Sq Ft Initial Buildout Costs Ongoing Annual Costs One Year Total Costs Meets criteria? Advantages Disadvantages 1 Kraft Building 2602 $ 10,000.00 $ 76,574.00 $ 86,574.00 Yes Move in ready; available November 1st; central location; parking for county vehicles; adequate parking for team members;has 7 offices, 2 cubicles,reception area; kitchen; copy work space; conference room; includes furniture, electric and custodial No classroom space 2 Mobile Office Space Rental 1440 $ 105,000.00 $ 22,048.00 $ 127,048.00 Limited Locate by Extension Office, convenient to storage pods, would order unit with office work space in place Mobile home, still in hurricane season; set up fees required (over $,9000); takes 4-5 weeks to deliver from time of order; set up time is additional to obtain permits and utility hook ups;would need 2 office and 1 classroom units; would be in construction zone, safety a concern for children/adults in classroom; additional funds for permitting and utility connections 3 Pebblebrook - Immokalee Rd and 951 1800 $ 30,000.00 $ 48,006.00 $ 78,006.00 Limited Newly built out, very attractive, great location Requires a 2 year lease; no classroom space; too small Courtyard Plaza III 2500 $ 30,000.00 $ 48,000.00 $ 78,000.00 No 1 year lease (no longer available) Not built out for office space; no classroom space; location is difficult Uptown Center - Immokalee Rd and Airport Rd 1740 $ 40,000.00 $ 49,189.80 $ 89,189.80 No Good parking Landlord is not willing to clean it up for a short term lease; not move in ready; water damaged; previous judo studio - heavy traffic at the intersection; no classroom space; too small Rank Location Sq Ft Initial Buildout Costs Ongoing Annual Costs One Year Total Costs Meets criteria? Advantages Disadvantages Preserve - Immokalee Rd, Across from Laurel Oaks Elementary 1838 $ 30,000.00 $ 55,636.00 $ 85,636.00 No Good location. Landlord is willing to clean it up and paint the walls, willing for 1 year lease Inadequate Parking; not built out for office space - not move in ready; former hair salon; no classroom; too small Pinegate Center - Pine Ridge Rd and 951 1300 $ 30,000.00 $ 23,725.00 $ 53,725.00 No Location Inadequate parking; build out not adequate; not move- in ready; water damaged; no classroom space; too small Naples Walk - Vanderbilt Beach Rd and Airport Rd 1400 30,000.00$ 45,178.00$ $ 75,178.00 No Good parking Not built out for office space - not move in ready; no classroom space; too small Naples Walk - Vanderbilt Beach Rd and Airport Rd 2600 40,000.00$ 83,902.00$ $ 123,902.00 No Good parking Not built our for office space - not move in ready; no classroom space Former Highway Patrol Building; 3205 Beck Blvd.3400 20,000.00$ 85,000.00$ $ 105,000.00 No Large Inconvient location; remote, security issues; no furniture; will be more expensive due to excess square footage Color Key:Green - Best location Yellow - Limited potential Pink - Not appropriate `u s k 1', IV i _ LA I� FLORIDA ® ' IFAS Collier County ExtensionOffice _ i4. cr ` zv�1 �st��.: ��' .� .. 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