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Agenda 03/12/2019 Item #16B303/12/2019 EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners, acting as the Community Redevelopment Agency Board (CRAB), authorize the termination of the lease with Chrishelle III, LLC regarding the future Bayshore Gateway Triangle CRA office at 2348 Pineland Avenue and authorize the CRA Director to continue to work with County staff to find suitable CRA office space for the CRAB to consider in the future. OBJECTIVE: To terminate the lease with Chrishelle III, LLC as allowed in the lease. CONSIDERATIONS: On September 11, the CRAB approved the relocation of the Bayshore Gateway Triangle CRA office to 2348 Pineland Avenue, and approved a new long-term (5 year) office lease agreement with Chrishelle III (Lessor). Staff worked with the owner’s representative to finalize the layout of the office space to accommodate the CRA needs. During the design review of the final layout, changes to the floor plan were needed. On January 22, 2019, the CRAB approved an amendment that corrected the total square footage from 3,300 to 3,427; adjusted the improvements to be completed by the owner; extended the right to terminate the lease from January 31, 2019 to February 15, 2019 if the Certificate of Occupancy is not received. The CRA approved a lease modification on October 9, 2018 for its present office space at 3750 Bayshore Drive to assure that the existing office space would be available until April 30, 2019. Due to the Lessor’s inability to receive a building permit in a timely manner, staff is requesting termination of the Lease Agreement to allow staff to move forward with other options. The CRA staff is currently evaluating other options for office space to bring back to the CRAB for consideration. LEGAL CONSIDERATIONS: This item is approved for legality and requires a majority vote for Board action. - JAB FISCAL IMPACT: Sufficient funds are available in the FY19 Bayshore Gateway Triangle CRA Fund (187) to cover current lease payments. GROWTH MANAGEMENT IMPACT: None. RECOMMENDATION: Recommendation that the Board of County Commissioners, acting as the Community Redevelopment Agency Board (CRAB), authorize the termination of the lease with Chrishelle III, LLC regarding the future Bayshore Gateway Triangle CRA office at 2348 Pineland Avenue and authorize the CRA Director to continue to work with County staff to find suitable CRA office space for the CRAB to consider in the future. Prepared by: Debrah Forester, CRA Director ATTACHMENT(S) 1. Approved Lease and Amendment (PDF) 2. Letter to Terminate Lease 03.04.19 (PDF) 3. Draft Letter Termination Notice Chrishelle 03.12.19 (PDF) 16.B.3 Packet Pg. 762 03/12/2019 COLLIER COUNTY Board of County Commissioners Item Number: 16.B.3 Doc ID: 8241 Item Summary: Recommendation that the Board of County Commissioners, acting as the Community Redevelopment Agency Board (CRAB), authorize the termination of the lease with Chrishelle III, LLC regarding the future Bayshore Gateway Triangle CRA office at 2348 Pineland Avenue and authorize the CRA Director to continue to work with County staff to find suitable CRA office space for the CRAB to consider in the future. Meeting Date: 03/12/2019 Prepared by: Title: – County Manager's Office Name: Debrah Forester 03/04/2019 1:57 PM Submitted by: Title: County Manager – County Manager's Office Name: Leo E. Ochs 03/04/2019 1:57 PM Approved By: Review: County Manager's Office Sean Callahan Additional Reviewer Completed 03/04/2019 2:08 PM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 03/05/2019 11:09 AM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 03/05/2019 11:19 AM Budget and Management Office Ed Finn Additional Reviewer Completed 03/05/2019 11:39 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 03/06/2019 9:35 AM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 03/06/2019 10:36 AM Board of County Commissioners MaryJo Brock Meeting Pending 03/12/2019 9:00 AM 16.B.3 Packet Pg. 763 16.B.3.aPacket Pg. 764Attachment: Approved Lease and Amendment (8241 : Bayshore CRA Office Space) 16.B.3.aPacket Pg. 765Attachment: Approved Lease and Amendment (8241 : Bayshore CRA Office Space) 16.B.3.aPacket Pg. 766Attachment: Approved Lease and Amendment (8241 : Bayshore CRA Office Space) 16.B.3.aPacket Pg. 767Attachment: Approved Lease and Amendment (8241 : Bayshore CRA Office Space) 16.B.3.aPacket Pg. 768Attachment: Approved Lease and Amendment (8241 : Bayshore CRA Office Space) 16.B.3.aPacket Pg. 769Attachment: Approved Lease and Amendment (8241 : Bayshore CRA Office Space) 16.B.3.aPacket Pg. 770Attachment: Approved Lease and Amendment (8241 : Bayshore CRA Office Space) 16.B.3.aPacket Pg. 771Attachment: Approved Lease and Amendment (8241 : Bayshore CRA Office Space) 16.B.3.aPacket Pg. 772Attachment: Approved Lease and Amendment (8241 : Bayshore CRA Office Space) 16.B.3.aPacket Pg. 773Attachment: Approved Lease and Amendment (8241 : Bayshore CRA Office Space) 16.B.3.aPacket Pg. 774Attachment: Approved Lease and Amendment (8241 : Bayshore CRA Office Space) 16.B.3.aPacket Pg. 775Attachment: Approved Lease and Amendment (8241 : Bayshore CRA Office Space) 16.B.3.aPacket Pg. 776Attachment: Approved Lease and Amendment (8241 : Bayshore CRA Office Space) 16.B.3.bPacket Pg. 777Attachment: Letter to Terminate Lease 03.04.19 (8241 : Bayshore CRA Office Space) Bayshore CRA Offices: 3570 Bayshore Drive, Unit 102, Naples, Florida 34112 Phone: 239-643-1115 Online: www.bayshorecra.com March 12, 2019 Via US Certified Mail to: Chrishelle III, LLC c/o Marco Island Real Estate, LLC 1095 Bald Eagle Drive Marco Island, FL 34145 RE: 2348 Pineland Ave Lease Termination Dear Ms. Massimi: This letter is to notify you that on March 12, 2019 the Community Redevelopment Agency Board approved termination of the Lease Agreement, dated September 11, 2018, as amended by First Amendment to Lease Agreement, dated January 22, 2019, as allowed under Article 17 which states: This Lease Agreement shall become effective upon seven days from the issuance of the Certificate of Occupancy for the Demised Premises Should the Improvements not be completed at the Demised Premised, the Certificate of Occupancy not issued by January 31, 2019 February 15, 2019 the LESSEE shall have the right to terminate this Lease by providing immediate written notice to the LESSOR and the LESSEE shall have no further obligations in this Lease and the Lease shall become null and void. (Emphasis Added.) The termination is effective immediately due to Chrishelle III, LLC’s failure to timely receive a Certificate of Occupancy. Thank you. Sincerely, Debrah Forester, AICP Collier County CRA Director 16.B.3.c Packet Pg. 778 Attachment: Draft Letter Termination Notice Chrishelle 03.12.19 (8241 : Bayshore CRA Office Space)