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Agenda 10/08/2013 Item #16E2 10/8/2013 16.E.2. EXECUTIVE SUMMARY Recommendation to approve a Second Amendment to Lease Agreement with Goodwill Industries of Southwest Florida, Inc. for the Senior Nutrition Program. OBJECTIVE: An Amendment to the existing Lease Agreement is required to secure an extended lease term and to address utility charges. CONSIDERATIONS: The attached Second Amendment to Lease Agreement (Amendment') has been prepared on behalf of Housing, Human and Veterans Services for leased space in Immokalee with Goodwill Industries of Southwest Florida, Inc. ("Goodwill"). This space has been leased since 2008 for the Senior Nutrition program and is paid for completely by grant funding. The purpose of the Amendment is twofold; to extend the term of the Lease to secure the space in order to continue the program at this desirable location, and to address the utility costs for use of the space now that the County is the sole occupant of the building. The current rent for the leased space is $4.08 per square foot, which is substantially below fair market value for similar spaces in the area which rent for $12 per square foot. Goodwill has not charged the County Common Area Maintenance (CAM) costs since the inception of the Lease, which could equal an additional $3 or more per square foot. With the County as the sole occupant of the building, Goodwill is now requesting assistance with the utility charges and has calculated the County's share of monthly charges for electric and basic telephone service. Goodwill has agreed to maintain the rent as originally agreed upon in the original Lease. The current rent is $1,123.82 monthly, and the Lease provides for annual 4% increases from the prior year's rent. Goodwill has also agreed to continue to refrain from charging CAM costs. The attached Amendment has been reviewed by Housing. Human and Veterans Services and by the Office of the County Attorney for legal sufficiency. FISCAL IMPACT: The monthly rent of $1,123.82 and the monthly utility costs shall be charged against the OAA Title MCI grant revenue, Project 33248, which resides in Fund 707 155970. GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management Plan. LEGAL CONSIDERATIONS: The attached Amendment is approved as to form and legality and requires majority vote for approval. -JAK RECOMMENDATION: That the Board of County Commissioners approves the attached Second Amendment to Lease Agreement with Goodwill Industries of Southwest Florida, Inc., and authorizes its Chairwoman to execute same. PREPARED BY: Michael Dowling, Sr. Property Management Specialist, Real Property Management, Facilities Management Department Packet Page -2410- 10/8/2013 16.E.2. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.E.16.E.2. Item Summary: Recommendation to approve a Second Amendment to Lease Agreement with Goodwill Industries of Southwest Florida, Inc. Meeting Date: 10/8/2013 Prepared By Name: DowlingMichael Title: Property Management Specialist, Senior,Facilities 9/23/2013 10:40:46 AM Approved By Name: pochopinpat Title: Administrative Assistant,Facilities Management Date: 9/23/2013 10:53:21 AM Name: Mott Toni Title: Manager-Property Acquisition &Const M,Facilitie Date: 9/23/2013 11:54:31 AM Name: JonesHank Title: Project Manager,Principal,Facilities Management Date: 9/23/2013 12:3 5:06 PM Name: CarrLisa Title: SHIP Program Coordinator Date: 9/23/2013 2:35:31 PM Name: SonntagKristi Date: 9/23/2013 5:00:56 PM Name: GrantKimberley Title:Interim Director Date: 9/25/2013 3:34:16 PM Packet Page-2411- 10/8/2013 16.E.2. Name: KlatzkowJeff Title:County Attorney Date: 9/26/2013 8:18:36 AM Name: RobinsonErica Date: 9/26/2013 8:51:34 AM Name: PriceLen Title: Administrator, Administrative Services Date: 9/26/2013 11:55:03 AM Name: KlatzkowJeff Title: County Attorney Date: 9/26/2013 2:24:07 PM Name: PryorCheryl Title:Management/Budget Analyst, Senior,Office of Manag Date: 9/26/2013 3:30:28 PM Name: IsacksonMark Title:Director-Corp Financial and Mgmt Svs,CMO Date: 9/27/2013 9:30:16 AM Ao Packet Page -2412- 10/8/2013 16.E.2. License#947 SECOND AMENDMENT TO LEASE AGREEMENT THIS SECOND AMENDMENT TO LEASE AGREEMENT entered into this day of , 2013, by and between Collier County, a political subdivision of the State of Florida, whose mailing address is 3335 East Tamiami Trail, Suite 101, Naples, Florida 34112, hereinafter referred to as "LESSEE," and Goodwill Industries of Southwest Florida, Inc., a not for profit Florida corporation, whose mailing address is 4940 Bayline Drive, North Fort Myers, Florida 33917, hereinafter referred to as "LESSOR." WITNESSETH WHEREAS, Collier County and Goodwill Industries of Southwest Florida, Inc. have previously entered into a Lease Agreement dated April 22,2008,hereinafter referred to as `Lease Agreement,' and a First Amendment to Lease Agreement dated November 14,2011,hereinafter referred to as the `Amendment' WHEREAS,the LESSOR and LESSEE are desirous of amending the Lease Agreement; NOW THEREFORE, in consideration of the covenants and agreements provided within said Lease Agreement and said Amendment, which are attached herein and made a part hereof, and Ten Dollars ($10.00) and other valuable consideration, said Lease Agreement is hereby amended as follows: 1. The following provision shall be added to Article 2 of the Lease Agreement: This Lease is hereby extended until December 31, 2015, hereinafter referred to as the"Extended Lease Term,"and LESSEE is granted the option,provided it is not then in default of any of the terms of this Lease,to renew same for two (2) additional one (1) year terms, under the terms and conditions as provided herein, by giving written notice of LESSEE'S intention to do so to the LESSOR not less than thirty (30)days prior to the expiration of the leasehold estate hereby created. Said notice shall become effective upon actual receipt by LESSOR. LESSEE, however, reserves the right to terminate this Lease, with or without cause, upon sixty days prior written notice of such termination to LESSOR at the address set forth in ARTICLE 10 of the Lease Agreement. Said notice shall be effective upon actual receipt by LESSOR. 2. Article 3 shall be deleted and replaced with the following provision: Article 3. Rent and Other Charges LESSEE hereby covenants and agrees to pay, as base rent for the Demised Premises, the sum of One Thousand One Hundred Twenty-three Dollars and Eighty-two Cents ($1,123.82) monthly as of May 1, 2013. Following the end of the first full year of tenancy, the annual rental amount shall increase by four (4) percent for each ensuing year thereafter and any renewal terms thereof. LESSEE shall pay charges pertaining to its use for basic telephone service and electricity at the Demised Premises,which shall commence as of July 1, 2013. The LESSOR shall invoice the LESSEE with an accounting of the its actual cost for basic telephone service and electric charges, on a quarterly basis, which shall begin as of July 1,2013 and running through to September 30,2013. The LESSOR shall provide LESSEE with copies of the actual utility companies' invoices as back-up to the invoices. If LESSOR should sublease the Demised Premises to another party during off-hours, at times when LESSEE is not in use of the Demised Premises, the LESSOR shall make the appropriate allowance in the quarterly billing charges to LESSEE. The LESSOR shall provide water to the LESSEE at no cost to LESSEE. Packet Page-2413- 10/8/2013 16.E.2. The LESSOR shall provide, maintain, repair or replace, at LESSOR'S sole cost and expense, all air- conditioning systems,plumbing systems,janitorial services, and pest control. 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 (1/30th) of the monthly rental multiplied by the number of rental days of such fractional month. 3. The following provision shall be added to Article 6 of the Lease Agreement: LESSOR shall be named as an additional insured on the General Liability Insurance policy in the amount of One Million Dollars as Goodwill Industries of Southwest Florida,Inc. 4. Except as expressly provided herein, the Lease Agreement between Collier County, a political subdivision of the State of Florida, and Goodwill Industries of Southwest Florida, Inc., for the utilization of the Demised Premises described in said Lease Agreement dated April 22, 2008, and the Amendment dated November 14, 2011, remain in full force and effect according to the terms and conditions contained therein, and said terms and conditions are applicable hereto except as expressly provided otherwise herein. IN WITNESS WHEREOF, the LESSOR and LESSEE have hereto executed this Second Amendment to Lease Agreement the day and year first above written. AS TO THE LESSOR: DATED: GOODWILL INDUSTRIES OF SOUTHWEST FLORIDA,INC.,a not for profit Florida Corporation WITNESSES: BY: Witness(Signature) (Signature) (Print Name) (Print name and title) Witness(Signature) (Print Name) AS TO THE LESSEE: DATED: BOARD OF COUNTY COMMISSIONERS, ATTEST: COLLIER COUNTY,FLORIDA DWIGHT E. BROCK, Clerk BY: BY: Deputy Clerk GEORGIA A. HILLER,ESQ.,Chairwoman Approve•'I'•- , I an. legality: 441 i ri Jeffrey A. ow,County Attorney,, I Packet Page-2414-