Agenda 07/10/2018 Item #16B307/10/2018
EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners, acting as the Community
Redevelopment Agency Board (CRAB), approve the Agreement Regarding Cell Tower between
Crown Castle South LLC (Crown) and the CRAB, regarding the terms and co nditions to terminate
the Cell Tower lease located on CRA property within the Bayshore Gateway Triangle Community
Redevelopment Area and authorize necessary budget amendments.
OBJECTIVE: To decommission and remove the cell tower located at 2054 Davis Boulevard and
terminate the lease with Crown Castle South LLC which will further advance the sale of the Bayshore
Gateway Triangle property as outlined in the Purchase Agreement with Real Estate Partners International
(Purchaser).
CONSIDERATIONS: The current CRA lease with Crown Castle South LLC for the cell tower on 2054
Davis Boulevard (Bayshore Gateway Triangle property) expires in 2024.
On April 26, 2016, the Board of County Commissioners acting as the Collier County Community
Redevelopment Agency Board (Seller), approved a Real Estate Purchase Agreement (Agreement) with
Purchaser for the purchase the property located at 2054 Davis Boulevard. The purchase price is
$6,372,959.
The encumbrance of the cell tower is a restrictive development impediment that will remain on the
Bayshore Gateway Triangle property under the current lease until 2024 unless the parties agree to relocate
the tower.
The proposed Agreement Regarding Cell Tower outlines the terms and conditions to terminate the CRA
lease prior to the expiration with relocation of the tower. In accordance with the terms and conditions of
the agreement we anticipate receipt of a termination notice from Crown in March 2019.
The Real Estate Purchase Agreement was amended three times. The most re cent amendment, the third
amendment, recognizes the cell tower as an encumbrance on the property and approved a cost sharing
formula to relocate the tower between the Seller and Purchaser based on the following:
The first $250,000 will come from the Seller’s funds
The next $500,000 up to $750,000 will be shared equally between the Seller and the Purchaser
Funding above $750,000 will come from the Seller’s funds and be repaid from the Tax Increment
Rebate (TIR) after the project is developed.
Over the past year, the Seller and Purchaser have negotiated with the cell tower owner, Crown Castle
South LLC, to determine costs and timing of decommissioning and relocating the existing tower. The
amount negotiated to be paid to Crown is $1,000,000. The proposed Agreement Regarding Cell Tower
sets forth the terms and conditions for the decommissioning and removal of the tower located on the
BGTCRA property as well as the terms and conditions for replacing the existing Crown tower located at
2370 Kirkwood Avenue, Naples, FL (which is outside of the CRA boundary).
The Purchaser was included in the negotiations of the Agreement Regarding Cell Tower. The proposed
Fourth Amendment to the Real Estate Purchase Agreement, which is a separate item on this agenda, sets
forth the cost sharing between the Purchaser and the CRA. If the sale does not close, staff recommends
that the tower continue be relocated to maximize the property's future development potential.
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Accordingly this item may be considered separate from the Fourth Amendment item.
FISCAL IMPACT: The monthly cell tower lease payment being made to the CRA is presently
$5,022.12. The subject agreement regarding the Crown Castle South Cell Tower will ultimately result in
relocation of the cell tower and termination of the cell tower lease. The agreement calls for the CRA to
make payments of $1,000,000 to Crown Castle South based on Crown achieving relocation milestones
outlined in the agreement. As discussed above, upon successful closing with REPI on the Triangle
property the cell tower relocation costs will be shared by the Purchaser and the CRA.
Cash flow for the Cell Tower Agreement will partially be provided from $637,295.90 of Triangle sale
earnest/escrow monies with the balance of $362,704.10 provided from Bayshore CRA Fund (187)
reserves. Disbursements from the escrow will be administered by the escrow agent. The CRA budget will
be amended as required to establish appropriate budgets. At closing the Purchaser will be credited for the
expenditure of escrow funds against its share of cell tower lease relocation costs with the balance of the
escrow applied toward the purchase price of the property. If the closing does not take place the CRA is
obligated to refund the amount taken from escrow and be responsible for the entire $1,000,000 cost of
relocation.
GROWTH MANAGEMENT IMPACT: None
ADVISORY COMMITTEE RECOMMENDATIONS: none
LEGAL CONSIDERATIONS: This item is approved for form and legality and requires a majority vote
for Board approval. -JAB
RECOMMENDATION: Recommendation that the Board of County Commissioners, acting as the
Community Redevelopment Agency Board (CRAB), approve the Agreement Regarding Cell Tower
between Crown Castle South LLC (Crown) and the CRAB, regarding the terms and conditions to
terminate the Cell Tower lease located on CRA property within the Bayshore Gateway Triangle
Community Redevelopment Area and authorize necessary budget amendments.
Prepared by: Debrah Forester, CRA Director
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ATTACHMENT(S)
1. Agreement Regarding Cell Tower - CAO approved (PDF)
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COLLIER COUNTY
Board of County Commissioners
Item Number: 16.B.3
Doc ID: 6119
Item Summary: Recommendation that the Board of County Commissioners, acting as the
Community Redevelopment Agency Board (CRAB), approve the Agreement Regarding Cell Tower
between Crown Castle South LLC (Crown) and the CRAB, regarding the terms and conditions to
terminate the Cell Tower lease located on CRA property within the Bayshore Gateway Triangle
Community Redevelopment Area and authorize necessary budget amendments
Meeting Date: 07/10/2018
Prepared by:
Title: – County Manager's Office
Name: Debrah Forester
07/01/2018 10:43 PM
Submitted by:
Title: County Manager – County Manager's Office
Name: Leo E. Ochs
07/01/2018 10:43 PM
Approved By:
Review:
Budget and Management Office Ed Finn Additional Reviewer Completed 07/02/2018 5:09 PM
County Manager's Office Tim Durham Additional Reviewer Completed 07/03/2018 8:42 AM
County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 07/03/2018 12:23 PM
Office of Management and Budget MaryJo Brock Level 3 OMB Gatekeeper Review Skipped 07/03/2018 11:03 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 07/03/2018 1:33 PM
County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 07/03/2018 2:51 PM
Board of County Commissioners MaryJo Brock Meeting Pending 07/10/2018 9:00 AM
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Packet Pg. 966 Attachment: Agreement Regarding Cell Tower - CAO approved (6119 : Cell Tower Relocation)
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Packet Pg. 981 Attachment: Agreement Regarding Cell Tower - CAO approved (6119 : Cell Tower Relocation)