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Agenda 04/12/2022 Item #16C 6 (Amendment #1 to Agreement w/David Lawrence Mental Health Center, Inc.)04/12/2022 EXECUTIVE SUMMARY Recommendation to approve a First Amendment to Vacant Land Contract that: 1) terminates and releases the recorded Collier County Standard Form Long-Term Lease and Operating Agreement between Collier County and David Lawrence Mental Health Center, Inc., and provides that the Standard Form Lease be executed after closing on the real property, and 2) extends the deadline to acquire entitlements and site development plan approvals and shifts such responsibility to the County. OBJECTIVE: To approve a First Amendment to Vacant Land Contract and a Termination and Release of Collier County Standard Form Long-Term Lease and Operating Agreement dated June 22, 2021, pertaining to David Lawrence Mental Health Center, Inc. CONSIDERATIONS: On February 23, 2021 (Agenda Item 11.C.), the Board directed staff to negotiate with the David Lawrence Mental Health Center, Inc. (“DLC”) a purchase and sale agreement for the County to acquire a vacant five-acre parcel of land upon which it would construct a Collier County Mental Health Facility (the “Facility”), along with a long-term lease and operating agreement under which DLC would operate the Facility. On May 25, 2021 (Agenda Item 11. J), the Board approved an agreement with the DLC to operate and lease the Facility to be constructed and approved a Collier County Standard Form Long-Term Lease and Operating Agreement (the “Lease”) for the land where the Facility will be constructed. On June 2, 2021, the Parties recorded the Lease, in Collier County, Florida’s Official Records at Book 5957, Page 2110. Because the Parties did not intend the Lease to become effective until after the closing on the real property, staff is attaching for the Board’s approval a proposed Termination and Release of Collier County Standard Form Long-Term Lease and Operating Agreement, which terminates the Lease as a matter of the public record, and releases and forever discharges the real property from the Lease. The Parties agree that the Lease was recorded in error and that they will execute and record the agreed upon form Lease reflecting the correct effective date contemporaneously with the Closing and conveyance of the Property. The proposed replacement Collier County Standard Form Long-Term Lease and Operating Agreement is substantially identical to the Lease the Board approved on May 25, 2021. The attached proposed First Amendment to Vacant Land Contract has been revised to state that the Buyer (and not the Seller) shall obtain non-appealable entitlement and site development plan approval necessary to permit use and development of the Property and extends the time allowable to obtain the non- appealable entitlement and site development plan approval necessary to permit the use and development of the property from twelve months to twenty-four months. FISCAL IMPACT: $25,000,000 is available in the Infrastructure Sales Surtax Capital Fund (318) for design and construction of the mental health facility. The cost of establishing land entitlements is estimated to be $90,000 and will be borne by the County through the surtax funded Mental Health Facility Project budget. DLC will pay the County the sum of $1 annually for use of the facility during the initial lease term. The value of the five-acre parcel being donated was appraised at $340,000 in 2019, and $430,000 in 2018, according to documents supplied by DLC. The recording cost of the Termination and Release of Collier County Standard Form Long-Term Lease and Operating Agreement will not exceed $50. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with adoption of the strategic plan. 16.C.6 Packet Pg. 1188 04/12/2022 LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for Board approval. -SRT RECOMMENDATION: That the Board approves a First Amendment to Vacant Land Contract that: 1) terminates and releases the recorded Collier County Standard Form Long-Term Lease and Operating Agreement between Collier County and David Lawrence Mental Health Center, Inc., and provides that the Standard Form Lease be executed after closing on the real property, and 2) extends the deadline to acquire entitlements and site development plan approvals and shifts such responsibility to the County, and authorize the Chairman to sign the attached documents. Prepared by: Sonja Stephenson, Senior Property Acquisition Specialist, Facilities Management Division ATTACHMENT(S) 1. First Amendment to Vacant Land Contract (PDF) 2. Termination and Release of Collier County Standard Form Long-Term Lease and Operating Agreement (PDF) 3. Vacant Land Contract (PDF) 4. Recorded Collier County Standard Form Long-Term Lease and Operating Agreement (PDF) 16.C.6 Packet Pg. 1189 04/12/2022 COLLIER COUNTY Board of County Commissioners Item Number: 16.C.6 Doc ID: 21759 Item Summary: Recommendation to approve a First Amendment to Vacant Land Contract that: 1) terminates and releases the recorded Collier County Standard Form Long-Term Lease and Operating Agreement between Collier County and David Lawrence Mental Health Center, Inc., and provides that the Standard Form Lease be executed after closing on the real property, and 2) extends the deadline to acquire entitlements and site development plan approvals and shifts such responsibility to the County. Meeting Date: 04/12/2022 Prepared by: Title: Property Acquisition Specialist – Facilities Management Name: Sonja Stephenson 03/24/2022 11:32 AM Submitted by: Title: Director - Facilities Maangement – Facilities Management Name: Ed Finn 03/24/2022 11:32 AM Approved By: Review: Facilities Management Claudia Roncoroni Additional Reviewer Completed 03/24/2022 1:25 PM Facilities Management Ayoub Al-bahou Additional Reviewer Completed 03/24/2022 1:37 PM Facilities Management Ed Finn Director - Facilities Completed 03/24/2022 7:37 PM Facilities Management Jennifer Belpedio Additional Reviewer Completed 03/28/2022 10:01 AM Public Utilities Department Drew Cody Level 1 Division Reviewer Completed 03/28/2022 3:08 PM Public Utilities Department Joseph Bellone Level 2 Division Administrator Review Completed 03/28/2022 3:14 PM County Attorney's Office Scott Teach Level 2 Attorney Review Completed 03/29/2022 4:05 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 03/30/2022 8:39 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 03/30/2022 8:56 AM Facilities Management Ed Finn Additional Reviewer Completed 03/30/2022 7:07 PM Office of Management and Budget Susan Usher Additional Reviewer Completed 04/03/2022 11:21 AM County Manager's Office Dan Rodriguez Level 4 County Manager Review Completed 04/06/2022 12:39 PM Board of County Commissioners Geoffrey Willig Meeting Pending 04/12/2022 9:00 AM 16.C.6 Packet Pg. 1190 16.C.6.a Packet Pg. 1191 Attachment: First Amendment to Vacant Land Contract (21759 : David Lawrence Center) 16.C.6.a Packet Pg. 1192 Attachment: First Amendment to Vacant Land Contract (21759 : David Lawrence Center) 16.C.6.a Packet Pg. 1193 Attachment: First Amendment to Vacant Land Contract (21759 : David Lawrence Center) 16.C.6.a Packet Pg. 1194 Attachment: First Amendment to Vacant Land Contract (21759 : David Lawrence Center) 16.C.6.a Packet Pg. 1195 Attachment: First Amendment to Vacant Land Contract (21759 : David Lawrence Center) 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1205 Attachment: First Amendment to Vacant Land Contract (21759 : David Lawrence Center) 16.C.6.a Packet Pg. 1206 Attachment: First Amendment to Vacant Land Contract (21759 : David Lawrence Center) 16.C.6.a Packet Pg. 1207 Attachment: First Amendment to Vacant Land Contract (21759 : David Lawrence Center) 16.C.6.a Packet Pg. 1208 Attachment: First Amendment to Vacant Land Contract (21759 : David Lawrence Center) 16.C.6.a Packet Pg. 1209 Attachment: First Amendment to Vacant Land Contract (21759 : David Lawrence Center) 16.C.6.a Packet Pg. 1210 Attachment: First Amendment to Vacant Land Contract (21759 : David Lawrence Center) 16.C.6.a Packet Pg. 1211 Attachment: First Amendment to Vacant Land Contract (21759 : David Lawrence Center) 16.C.6.b Packet Pg. 1212 Attachment: Termination and Release of Collier County Standard Form Long-Term Lease and Operating Agreement (21759 : David Lawrence 16.C.6.b Packet Pg. 1213 Attachment: Termination and Release of Collier County Standard Form Long-Term Lease and Operating Agreement (21759 : David Lawrence 16.C.6.b Packet Pg. 1214 Attachment: Termination and Release of Collier County Standard Form Long-Term Lease and Operating Agreement (21759 : David Lawrence 16.C.6.cPacket Pg. 1215Attachment: Vacant Land Contract (21759 : David Lawrence Center) 16.C.6.cPacket Pg. 1216Attachment: Vacant Land Contract (21759 : David Lawrence Center) 16.C.6.cPacket Pg. 1217Attachment: Vacant Land Contract (21759 : David Lawrence Center) 16.C.6.cPacket Pg. 1218Attachment: Vacant Land Contract (21759 : David Lawrence Center) 16.C.6.cPacket Pg. 1219Attachment: Vacant Land Contract (21759 : David Lawrence Center) 16.C.6.cPacket Pg. 1220Attachment: Vacant Land Contract (21759 : David Lawrence Center) 16.C.6.cPacket Pg. 1221Attachment: Vacant Land Contract (21759 : David Lawrence Center) 16.C.6.d Packet Pg. 1222 Attachment: Recorded Collier County Standard Form Long-Term Lease and Operating Agreement (21759 : David Lawrence Center) 16.C.6.d Packet Pg. 1223 Attachment: Recorded Collier County Standard Form Long-Term Lease and Operating Agreement (21759 : David Lawrence Center) 16.C.6.d Packet Pg. 1224 Attachment: Recorded Collier County Standard Form Long-Term Lease and Operating Agreement (21759 : David Lawrence Center) 16.C.6.d Packet Pg. 1225 Attachment: Recorded Collier County Standard Form Long-Term Lease and Operating Agreement (21759 : David Lawrence Center) 16.C.6.d Packet Pg. 1226 Attachment: Recorded Collier County Standard Form Long-Term Lease and Operating Agreement (21759 : David Lawrence Center) 16.C.6.d Packet Pg. 1227 Attachment: Recorded Collier County Standard Form Long-Term Lease and Operating Agreement (21759 : David Lawrence Center) 16.C.6.d Packet Pg. 1228 Attachment: Recorded Collier County Standard Form Long-Term Lease and Operating Agreement (21759 : David Lawrence Center) 16.C.6.d Packet Pg. 1229 Attachment: Recorded Collier County Standard Form Long-Term Lease and Operating Agreement (21759 : David 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Operating Agreement (21759 : David Lawrence Center) 16.C.6.d Packet Pg. 1237 Attachment: Recorded Collier County Standard Form Long-Term Lease and Operating Agreement (21759 : David Lawrence Center)