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Agenda 10/12/2021 Item #16C1 (Lease Agreement w/23-81 LNT, LLC)10/12/2021 EXECUTIVE SUMMARY Recommendation to approve a Lease Agreement with 23-81 LNT, LLC, for warehouse storage space to be used by Facilities Management. OBJECTIVE: To approve a Lease Agreement with 23-81 LNT, LLC, for warehouse space to be used by Facilities Management. CONSIDERATIONS: For the past several years Facilities Management has utilized a 3500 square foot storage building located at 790 21st Street NW to provide equipment and material storage. The Property was purchased by Transportation for the Vanderbilt Beach Road Expansion Project. The structures on the Property are scheduled for demolition in November to prepare for the road project. The stored contents must be relocated and the County does not have any warehouse space to accommodate this storage requirement. Accordingly staff has located a smaller 2200 square foot warehouse in the Industrial Park off Airport Road located at 1429 Don Street. The new facility is 37% smaller so the move has required eliminating all non-critical files and disposal of obsolete equipment and spares. The new facility will provide for secure and protected storage of maintenance, emergency and spare equipment including man lifts, pressure washing trailers, air conditioning parts, jail maintenance spares, and generators. Some capacity will be reserved for seasonal emergency supplies. Additionally, the facility includes a paint booth that will be utilized by staff for maintenance purposes. The facility is located close to the main campus and will be more efficie nt than the 21st street NW location. A Lease Agreement (Agreement) has been prepared to include an initial three -year term with a three-year renewal term. The County will be allowed to terminate the Agreement, at any time, by providing the landlord with at least sixty-days’ written notice. The space, as mentioned above is 2,200 square feet and is air-conditioned, has two overhead doors, a paint booth, and a restroom. The square foot rate is $13, which calculates to $28,600 annually, plus Common Area Maintenance (CAM) fees of $529.83 monthly and both will increase by three percent annually. The County will be responsible for costs associated with electricity, communications, and water/sewer service costs. Collier County shall procure an annual HVAC maintenance agreement for the air-conditioning system. Both parties shall equally share the cost of any repairs or replacement of the HVAC unit. The County will maintain the required insurance coverage outlined in the Lease. FISCAL IMPACT: The annual rent of $28,600 shall be paid in equal monthly installments of $2,383.33 plus monthly CAM of $529.83 and shall be withdrawn from 001-122255-644100. GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management Plan. LEGAL CONSIDERATION: This item has been reviewed for form and legality and requires a majority vote for Board action. - JAB RECOMMENDATION: That the Board approves the Lease Agreement with 23-81 LNT, LLC, and authorizes the Chairman to execute the document. Prepared by: Michael Dowling, Sr. Property Management Specialist, Facilities Management Division 16.C.1 Packet Pg. 704 10/12/2021 ATTACHMENT(S) 1. Don Street Warehouse Lease Agreement (PDF) 16.C.1 Packet Pg. 705 10/12/2021 COLLIER COUNTY Board of County Commissioners Item Number: 16.C.1 Doc ID: 17596 Item Summary: Recommendation to approve a Lease Agreement with 23-81 LNT, LLC, for warehouse storage space to be used by Facilities Management. Meeting Date: 10/12/2021 Prepared by: Title: Property Management Specialist, Senior – Facilities Management Name: Michael Dowling 09/10/2021 12:50 PM Submitted by: Title: Director - Facilities Maangement – Facilities Management Name: Ed Finn 09/10/2021 12:50 PM Approved By: Review: Procurement Services Michael Dowling Level 1 Purchasing Gatekeeper Skipped 09/10/2021 1:44 PM Facilities Management Toni Mott Additional Reviewer Completed 09/13/2021 3:01 PM Facilities Management Sandi Felke Additional Reviewer Completed 09/13/2021 4:14 PM Facilities Management Ed Finn Director - Facilities Completed 09/14/2021 7:14 PM Public Utilities Operations Support Jennifer Morse Additional Reviewer Completed 09/15/2021 10:21 AM Public Utilities Operations Support AmiaMarie Curry Additional Reviewer Completed 09/15/2021 3:42 PM Facilities Management Drew Cody Additional Reviewer Skipped 09/16/2021 2:56 PM Public Utilities Department Drew Cody Level 1 Division Reviewer Completed 09/17/2021 2:07 PM Public Utilities Department George Yilmaz Level 2 Division Administrator Review Completed 09/17/2021 2:53 PM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 09/20/2021 1:35 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 09/20/2021 1:37 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 09/20/2021 4:42 PM Growth Management Operations Support Christopher Johnson Additional Reviewer Completed 09/27/2021 11:24 AM County Manager's Office Amy Patterson Level 4 County Manager Review Completed 10/04/2021 9:45 AM Board of County Commissioners Geoffrey Willig Meeting Pending 10/12/2021 9:00 AM 16.C.1 Packet Pg. 706 THIS LEASE AGREEMENT entered into this l51h day of September 2021, between 23-81 LNT LLC. a foreign limited liability company, whose post office address is 2888 Tiburon Boulevard East, Naples. FL 34109, 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, Florida 34112. 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 2.200 square feet of warehouse located at 1429 Don Street, Unit D, Naples, Florida, for the sole purpose of warehouse storage. 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 commencing on October 15, 2021, and ending October 14.2024. LESSEE is granted the option, provided it is not then in default of any of the terms of this Lease, to renew same for one (l) additional term of three (3) years ("Renewal Term"), under the terms and conditions as provided herein, by giving written notice ofLESSEE'S intention to do so to the LESSOR not less than thirty (30) days prior to the expiration ofthe leasehold estate hereby created. Said notice shall become elfective upon actual receipt by LESSOR. LESSEE. however, reserves the right to terminate this [-ease, with or without cause, upon sixty days prior written notice of such termination to I-ESSOR at the address set forth in AR'flCLE 13 of this l,ease. Said notice shall be eff'ective 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 Cenificate showing its exempt status. ARTICLE 3. Rent LESSEE hereby covenants and agrees to pay as base rent for the Demised Premises the sum of Twenty-eighty Thousand Six Hundred Dollars ($28,600.00) for the first year ofthe Lease term to be paid in equal monthly installments of Two Thousand Three Hundred Eighty-tkee Dollars and Thirty-three Cents ($2,383.33). Following the first year, the annual rent shall be increased by three percent for the second year and each year throughout the life of the Lease and Renewal Term, ifapplicable. ovJ Lease # LEASE AGREEMENT 16.C.1.a Packet Pg. 707 Attachment: Don Street Warehouse Lease Agreement (17596 : Lease Agreement with 23-81 LNT, LLC, for warehouse storage) All rental pavments shall be due and payable in advance on the first day of every calendar month during the term hereof. lf the terms of this Lease shall commence on a day other than the first da;, of the month, LESSEE shall pay' rental equal 1o one lhirtieth (l/3Oth) of the monthly rental mulriplied by the number ofrental days of such fractional month. In addition to thc monthly rent, the LESSEE shall pay LESSOR an additional Five Hundred Twenty- nine Dollars and Eighrthree Cents ($529.83) per month for Common Area Maintenance (CAM) fees. Thrs amount shall be increased annually by three (3) percent compounded lbr each ).ear throughout the life ofthe Lease and Renewal Term. if applicable. CAN4 includes any common elements used by all tenants for the maintenance and opcration of the building and property, such as. but not limited to, exterior building maintenance, exterior lighting, irrigation. landscaping, property management fees. real estate taxes. and propertv insurance. ARTICLE 5. Other Exn enses and Charses LESSEE shall pay all interior janitorial, electricity and telephone charges pertaining to the Demised Premises. LESSEE shall maintain the air-conditioning filters *,ithin rhe Demised Premises. LESSOR shall be responsible for all elements of the maintenance and repair ol'the building and the Demised Premises not stated above, including but not limited to. plumbing, eleclrical, landscaping enhancements and/or replacement and inigation, as well as wasle removal, water, sewer, pest control and lawn maintenancc. LESSOR shall deliver the HVAC systems servicing the Premises (the 'HVAC"). in good working order. LESSEE shall pay for the cost ofan annual HVAC maintenance agreemenl for the HVAC systems on or servicing the Prcmises. LESSEE and LESSOR shall equally share the cost and expense of repair or replacement of the HVAC. LESSOR shall make all determinations of repair or replacement of the HVAC in LESSOR's reasonable discretion. Prior to making anv changes, altcrations. additions or improvements to the Demised Premises, LESSEE will provide to LESSOR all proposals and plans lor alterations. improvements, changes or additions to the Demised Premises for LESSOR'S prior written approval, spccifling in writing the nature and extent of the desired alteration, improvement, change, or addition. along with the contemplated starting and complelion time for such project. LESSOR or its designee will then have sixty (60) daf s within which to approve or deny in writing said requesl lor changes, improvernents. 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) da."'.s there has been no uritten rejection delivered by LESSOR to LESSEE regarding-said proposals or plans. then such silence shall be deemed as an APPROVAL to such request of LESSEE. LESSEE covenants and agrees in conneclion with any maintenance, repair i.l,ork, erection, construction. improvement, addition or alteration of any authorized modifications, additions or improvements to the Demised Premises, 1o obsen'e and comply with all then and luture applicable laws. ordinances, rules. regulation, and requirements of the United States of America. Stale of Florida, County of collier, and any and all govemmental agencies having jurisdiction over the Demised premises. 2 ARTICLE 4. Common Area Maintenance ARTICLE 6. Modifications to Demised Premises ov3 16.C.1.a Packet Pg. 708 Attachment: Don Street Warehouse Lease Agreement (17596 : Lease Agreement with 23-81 LNT, LLC, for warehouse storage) All alterations, improrements. and additions to said Demised Premises shall at once, whcn made or installed, be deemed as attached to the I'reehold and to have become property of LESSOR. Prior to the termination of this Lease or any renewal term thereof. or wrthin thirty (30) days thereafter, if LESSOR so directs, LESSEE shall promptly remove all such additions. improvements, alterations, fixtures and installations '*'hich were placed in, on or upon the Demised Premises by or on behalf of LESSEE, and whrch 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 I,ESSEE'S expense. ARTICLE 7. Access to Demised Premises LESSOR. its duly authorized agents. representalives and employees, shall have the right after reasonable oral notice to LESSEE. to enter into and upon the Demised Premises or any pan thereof at all reasonable hours for the purpose of examining same and making repairs or janitorial service thercin, and for the purposes of inspection fbr compliance with pror,isions of this Lease Agreement. LESSDE shall be permitted use of no more than three (3) non-exclusive parking spaces at any giren time. LESSEE shall not keep or store anv material. machinery. or equipment in the parking without LESSOR'S written consent. rvhich consent mav be with.held in LESSOR'S sole discretion. ARTICLE 8. Assienment and Su lert lrlg 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 occup)' same without the prior expressed writlen consent of LESSOR. Any such assignment or subletting, even with the consent of LESSOR, shall not relieve LESSEE from liabilitl' for payment ol'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 front an) other person shall not be deemed to be a waiver of any of the provisions of this Lease orto be aconsenl 10 the assignment of this I-ease or subletting ofthe Demised Premiscs. To the extent legally possible, the parties will continue the insurance arrangements in effec1 at the time of the commencement of this Lease, adjusted only so far as necessary to account for their change in legal position vis-d-vis. LESSEE shall. at its sole cosl and expense. keep the l)emised Premises clean al 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 u'ithin thirry (30) days of the receipt of such nolice. LESSOR will cause the same to be cleaned and corrected and LESSEE shall assume and pay all necessary cleaning costs and such costs shall constilute additional rent which shall be pard bI LESSEE within thirq' (30) days of receipt of written notice ofcosts incurred bv LESSOR. Failure of LESSEE to comply with any provision or covenant of this Lease shall constitute a default and LESSOR may, al LESSOR'S option. terminate this Lease afler rhirty (30) days $rittcn norice to LESSEE, unless the default be cured *'ithin that nolice period (or such additional time as is reasonablv required to correct such default). 3 ovo ARTICLE 9. [ndemnitv and Insurance ARTICLEI0. Maintenancc ARTICLE I l. Default bv LESSEE 16.C.1.a Packet Pg. 709 Attachment: Don Street Warehouse Lease Agreement (17596 : Lease Agreement with 23-81 LNT, LLC, for warehouse storage) AR'|ICLE 12. Delaultby LESSOR LESSOR shall in no cvcnl be charged with default in the performance of any of its obligations hereunder unless and until LESSOR shall have f'ailed to perfonn such obligations r,rithin ninety (90) days (or such additional time as is reasonably required to correct such def'ault) after written notice from LESSEE to LESSOR properly specirying wherein LESSOR has failed to perform any such obligations. ARTICLE 13. Notices Any notice u,hich LESSOR or LESSEE may bc requircd to give to the other party shall be in writing to the other party at the follou'ing addresses: LESSEE: Board of County Commissioners c/o Real Estate Services 3 301 Tamiami Trail East Administration Building Naples, Florida 341 l2 LESSOR: 23-81 I,NT LLC c/o KOVA Property Management. LLC 9130 Galleria Court. Suite 100 \aples. I;lorida 34 i 09 LESSEE covenants and agrees to deliver up and surrender to LESSOR posscssion 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 thereoi ordinary wear and tear and damage by fire or the elements beyond LESSEE'S control excepted. LESSEE full.v understands that the police and law entbrcement security protection provided by la.rv 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 cosl of LESSEE and shall involve no cost or expense to LESSEE. ARTICLE 17. Radon Gas In compliance with Section 404.056. Florida Statutes, all panies are hereby made aware ofthe following: Radon is a naturally occurring radioactive gas that. lr'hen it has accumulated in a building in sufllcient quantities, may present health risks to persons *'ho 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 bc obtained from your County Public Health Department. oU-. cc: Office of the Count_t- Atlome,v ARTICLE 15. Surrender of Premises ARTICLE 16. General Pror rsions LESSEE expressly agrees ibr itsell. its successor and assigns. to refrain from any use of the Demised Premises which would interfere with or adverselv allect the operation or maintenance of LESSOR'S standard operations. 16.C.1.a Packet Pg. 710 Attachment: Don Street Warehouse Lease Agreement (17596 : Lease Agreement with 23-81 LNT, LLC, for warehouse storage) ARTICLE I 8. Effcctive Date This Lease Agreement shall become eflective upon execution by borh LESSOR and LESSEE. ARTICLE 19. Governins Law This Lease Agreement shall be governed and construed in accordance with the laws ofthe Statc of Florida. N WITNESS WHEREOF. the parties hereto have hereunder set forth their hands and seals. AS TO THE LESSEE: DATED: ATTEST: Crystal K. Kinzel. Clerk BY:BY: Deputy Clerk AS TO THE I,ESSOR: DA'I'BD: BY: Approved as to form and legalit-v: BOARD OF COLTNTY COMMISSIONERS. COLLIER COL]NTY. FLORIDA Penny Taylor, Chair 2l-81 LNT LLC, a foreign limited liability company (Signature) Print name and Title \.6h o.\Ya' 5 Jennifer A. Belpedio, Assistant County Atlomey c4a 16.C.1.a Packet Pg. 711 Attachment: Don Street Warehouse Lease Agreement (17596 : Lease Agreement with 23-81 LNT, LLC, for warehouse storage)