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Agenda 03/22/2022 Item #16C7 (Uline Corp. Contribution Agreement Amendment)    Proposed Agenda Changes Board of County Commissioners Meeting March 22, 2022 Continue item 9A to the April 12, 2022 BCC Meeting: *** This item is being continued to the April 12, 2022 BCC Meeting Agenda. *** A Resolution of the Board of County Commissioners proposing amendments to the Collier County Growth Management Plan, Ordinance 89-05, as amended, relating to the Rural Fringe Mixed Use District Restudy and specifically amending the Urban Mixed Use District, Urban Residential Fringe Subdistrict and the Rural Fringe Mixed Use District of the Future Land Use Element to require Transfer of Development Rights for Comprehensive Plan amendments for increased residential density; amending the Urban Mixed Use District, Urban Residential Fringe Subdistrict to remove the density bonus cap on residential in-fill and remove the requirement to use Transfer of Development Rights within one mile of the Urban boundary; and amending the Rural Fringe Mixed Use District of the Future Land Use Element to change development standards and requirements, to increase density on Receiving Lands located along Immokalee Road, increase density on Receiving Lands for affordable housing, add Transfer of Development Rights Credits, add uses in Receiving areas, and add a conditional use for recreation in Sending Lands, and to amend development standards for Rural Villages; and create the Belle Meade Hydrologic Enhancement Overlay; and furthermore directing transmittal of the amendments to the Florida Department of Economic Opportunity. [PL20200002234] (District 1, District 3, District 5) (Staff’s request) Continue Item 16C7 to the April 12, 2022 BCC Meeting: Recommendation to approve an amendment to a Contribution Agreement with City Gate Naples, LLC (“CGNU”), pertaining to the Uline Corporation regional distribution facility, by amending numbered paragraph four of the Agreement to reduce the County’s duty to reimburse City Gate for the construction of improvements on real property to be dedicated to the County, by providing a onetime reimbursement payment not to exceed $575,000, in lieu of a previously agreed upon Tax Increment Financing (“TIF”) credit, which is estimated to produce a net savings to the County of approximately $900,000, and approve necessary budget amendments. (District 3) (Commissioner McDaniel’s request) Note: Item 17F correction – the title errantly includes the following text, “and is further being continued to the March 22, 2022 BCC Meeting”, this text carried over from when the item was continued to this meeting. Time Certain Items: Item 11A to be heard at 10:30 AM or immediately following the Court Reporter Break – 2022 Florida Legislative Session update. 6/6/2022 11:41 AM 03/22/2022 EXECUTIVE SUMMARY Recommendation to approve an amendment to a Contribution Agreement with City Gate Naples, LLC (“CGNU”), pertaining to the Uline Corporation regional distribution facility, by amending numbered paragraph four of the Agreement to reduce the County’s duty to reimburse City Gate for the construction of improvements on real property to be dedicated to the County, by providing a onetime reimbursement payment not to exceed $575,000, in lieu of a previously agreed upon Tax Increment Financing (“TIF”) credit, which is estimated to produce a net savings to the County of approximately $900,000, and approve necessary budget amendments. OBJECTIVE: To amend the attached Agreement with CGNU pertaining to the Uline Corporation regional distribution facility being constructed adjacent to the Paradise Coast Sports Complex by eliminating the TIF reimbursement financing arrangement in favor of a onetime reimbursement payment. CONSIDERATIONS: On October 13, 2020 (Agenda Item 11B), the Board unanimously approved a contribution agreement (the “Agreement”) with CGNU to accept certain donations of land and improvements with an estimated value of approximately $6,600,000. In return, CGNU was expected to receive approximately $1,440,000 in TIF reimbursement. CGNU has consistently avoided the use of taxpayer incentives as it has developed its distribution centers throughout North America. In conversation with County staff, CGNU expressed a willingness to eliminate the TIF credit obligation, so long as the County is willing to fund the landscaping, conduit, and shade structure improvements on the future County owned portion of the improvements. To facilitate the installation, timing, and project completion for the benefit of both parties, CGNU has agreed to complete the improvements referenced herein, for which the County will reimburse CGNU subject to the satisfactory completion, inspection, receipt of invoicing, and following the dedication of the property to the County. The specific improvements involved in this onetime reimbursement payment include landscaping, conduit, and shade structures, which will be located in the grass parking area “K,” paved parking area “H,” and the amenity area “L” all of which can be found on attached Exhibit “A” from the Agreem ent. The value of those improvements is estimated to not exceed $575,000. The estimate to construct the improvements was previously quoted by City Gate’s contractor on November 4, 2021, in the amount of $525,484.50. The proposed amendment reduces the total obligation of the County by approximately $900,000, bringing the total value of the prior agreement and this amendment to approximately $7,500,000. Subject to the approval of this amendment, the County would not be under any further obligation to reimburse City Gate for any other improvements identified in the Agreement. Uline anticipates completing all improvements and turning them over to the County before the end of calendar year 2022. FISCAL IMPACT: Pursuant to the Agreement the County will receive approximately $6,600,000 in land and physical improvements. City gate will receive repayment of an amount not expected to exceed approximately $575,000 upon completion of the improvements and within 30 days following dedication of the subject land. Relative to the original agreement that called for TIF reimbursement of approximately $1,440,000 the amended Agreement generates a savings to the County of approximately $900,000. Funding for the reimbursement will be provided from Interchange Activity Center No. 9 Innovation Zone Fund (783). Sufficient funding for the estimated reimbursement is available in reserves. Depending on the timing of the reimbursement a budget amendment moving current fiscal year funding from reserves may 16.C.7 Packet Pg. 609 03/22/2022 be required. The amended Agreement generates a net savings to the County of approximately $900,000. GROWTH MANAGEMENT IMPACT: There are no Growth Management Plan impacts associated with the amended Agreement. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for Board approval. -SRT RECOMMENDATION: That the Board approves the attached First Amendment to Contribution Agreement, and authorize the Chairman to sign the amendment, and approve necessary budget amendments. Prepared by: Ayoub Al-Bahou, P.E., Principal Project Manager, Facilities Management Division ATTACHMENT(S) 1. Exhibit A (PDF) 2. 2022-02-18-ULINE AGREEMENT AMENDMENT SIGNED (PDF) 3. Uline Contribution Agreement - Recorded (PDF) 16.C.7 Packet Pg. 610 03/22/2022 COLLIER COUNTY Board of County Commissioners Item Number: 16.C.7 Doc ID: 21542 Item Summary: Recommendation to approve an amendment to a Contribution Agreement with City Gate Naples, LLC (“CGNU”), pertaining to the Uline Corporation regional distribution facility, by amending numbered paragraph four of the Agreement to reduce the County’s duty to reimburse City Gate for the construction of improvements on real property to be dedicated to the County, by providing a onetime reimbursement payment not to exceed $575,000, in lieu of a previously agreed upon Tax Increment Financing (“TIF”) credit, which is estimated to produce a net savings to the County of approximately $900,000, and approve necessary budget amendments. Meeting Date: 03/22/2022 Prepared by: Title: Principal Project Manager – Facilities Management Name: Ayoub Al-bahou 03/07/2022 9:26 AM Submitted by: Title: Director - Facilities Maangement – Facilities Management Name: Ed Finn 03/07/2022 9:26 AM Approved By: Review: Facilities Management Ayoub Al-bahou Additional Reviewer Completed 03/07/2022 9:55 AM Public Utilities Operations Support Jennifer Morse Additional Reviewer Completed 03/08/2022 2:14 PM Public Utilities Operations Support AmiaMarie Curry Additional Reviewer Completed 03/08/2022 3:41 PM Public Utilities Department Drew Cody Level 1 Division Reviewer Completed 03/08/2022 3:52 PM Facilities Management Ed Finn Director - Facilities Completed 03/15/2022 12:56 PM Public Utilities Department Joseph Bellone Level 2 Division Administrator Review Completed 03/08/2022 3:57 PM County Attorney's Office Scott Teach Additional Reviewer Completed 03/10/2022 10:21 AM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 03/10/2022 11:16 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 03/10/2022 4:41 PM Facilities Management Ed Finn Additional Reviewer Completed 03/14/2022 3:27 PM Growth Management Operations Support Christopher Johnson Additional Reviewer Completed 03/15/2022 9:04 AM County Manager's Office Amy Patterson Level 4 County Manager Review Completed 03/16/2022 2:12 PM Board of County Commissioners Geoffrey Willig Meeting Pending 03/22/2022 9:00 AM 16.C.7 Packet Pg. 611 16.C.7.a Packet Pg. 612 Attachment: Exhibit A (21542 : Amendment to a Contribution Agreement with City Gate Naples, LLC) 16.C.7.b Packet Pg. 613 Attachment: 2022-02-18-ULINE AGREEMENT AMENDMENT SIGNED (21542 : Amendment to a Contribution Agreement with City Gate Naples, 16.C.7.b Packet Pg. 614 Attachment: 2022-02-18-ULINE AGREEMENT AMENDMENT SIGNED (21542 : Amendment to a Contribution Agreement with City Gate Naples, 16.C.7.b Packet Pg. 615 Attachment: 2022-02-18-ULINE AGREEMENT AMENDMENT SIGNED (21542 : Amendment to a Contribution Agreement with City Gate Naples, 16.C.7.c Packet Pg. 616 Attachment: Uline Contribution Agreement - Recorded (21542 : Amendment to a Contribution Agreement with City Gate Naples, LLC) 16.C.7.c Packet Pg. 617 Attachment: Uline Contribution Agreement - Recorded (21542 : Amendment to a Contribution Agreement with City Gate Naples, LLC) 16.C.7.c Packet Pg. 618 Attachment: Uline Contribution Agreement - Recorded (21542 : Amendment to a Contribution Agreement with City Gate Naples, LLC) 16.C.7.c Packet Pg. 619 Attachment: Uline Contribution Agreement - Recorded (21542 : Amendment to a Contribution Agreement with City Gate Naples, LLC) 16.C.7.c Packet Pg. 620 Attachment: Uline Contribution Agreement - Recorded (21542 : Amendment to a Contribution Agreement with City Gate Naples, LLC) 16.C.7.cPacket Pg. 621Attachment: Uline Contribution Agreement - Recorded (21542 : Amendment to a Contribution Agreement 16.C.7.cPacket Pg. 622Attachment: Uline Contribution Agreement - Recorded (21542 : Amendment to a Contribution Agreement 16.C.7.cPacket Pg. 623Attachment: Uline Contribution Agreement - Recorded (21542 : Amendment to a Contribution Agreement 16.C.7.cPacket Pg. 624Attachment: Uline Contribution Agreement - Recorded (21542 : Amendment to a Contribution Agreement 16.C.7.cPacket Pg. 625Attachment: Uline Contribution Agreement - Recorded (21542 : Amendment to a Contribution Agreement 16.C.7.cPacket Pg. 626Attachment: Uline Contribution Agreement - Recorded (21542 : Amendment to a Contribution Agreement 16.C.7.cPacket Pg. 627Attachment: Uline Contribution Agreement - Recorded (21542 : Amendment to a Contribution Agreement 16.C.7.cPacket Pg. 628Attachment: Uline Contribution Agreement - Recorded (21542 : Amendment to a Contribution Agreement