Agenda 06/14/2022 Item #16C3 (Contribution Agreement Amendment w/Citygate Naples, LLC)06/14/2022
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 CGNU for
the construction of improvements on real property to be dedicated to the County, by providing a
one-time 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 one-time 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 was the purchaser of 102.25+/- acres in
the City Gate Commerce Park PUD and Uline Corporation will be the end-user of the 936,000 square foot
distribution center under construction.
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 one-time 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 Agreement.
The value of those improvements is estimated to not exceed $575,000. The estimate to construct the
improvements was previously quoted by GCNU'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 CGNU 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. CGNU will receive reimbursement 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
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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
be required.
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: To approves the attached First Amendment to the Contribution Agreement,
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)
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06/14/2022
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.C.3
Doc ID: 21750
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 CGNU
for the construction of improvements on real property to be dedicated to the County, by providing a one -
time 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: 06/14/2022
Prepared by:
Title: – Facilities Management
Name: Paula Brethauer
03/31/2022 7:53 AM
Submitted by:
Title: Director - Facilities Maangement – Facilities Management
Name: Ed Finn
03/31/2022 7:53 AM
Approved By:
Review:
Facilities Management Drew Cody Additional Reviewer Skipped 03/31/2022 7:52 AM
Public Utilities Operations Support Drew Cody Additional Reviewer Skipped 03/31/2022 7:52 AM
Public Utilities Department Drew Cody Level 1 Division Reviewer Skipped 03/31/2022 7:52 AM
Facilities Management Jennifer Belpedio Additional Reviewer Completed 04/01/2022 12:37 PM
Facilities Management Ed Finn Director - Facilities Completed 05/15/2022 4:54 PM
County Attorney's Office Drew Cody Level 2 Attorney Review Skipped 03/31/2022 7:52 AM
Public Utilities Department Drew Cody Level 2 Division Administrator Review Skipped 03/31/2022 7:52 AM
County Attorney's Office Drew Cody Level 3 County Attorney's Office Review Skipped 03/31/2022 7:52 AM
Facilities Management Drew Cody Additional Reviewer Skipped 03/31/2022 7:52 AM
Growth Management Operations Support Drew Cody Additional Reviewer Skipped 03/31/2022 7:52 AM
Office of Management and Budget Drew Cody Level 3 OMB Gatekeeper Review Skipped 03/31/2022 7:52 AM
County Manager's Office Amy Patterson Level 4 County Manager Review Completed 06/08/2022 9:02 AM
Board of County Commissioners Geoffrey Willig Meeting Pending 06/14/2022 9:00 AM
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Packet Pg. 1197 Attachment: Exhibit A (21750 : Amendment to a Contribution Agreement with City Gate Naples, LLC)
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Packet Pg. 1198 Attachment: 2022-02-18-ULINE AGREEMENT AMENDMENT SIGNED (21750 : Amendment to a Contribution Agreement with City Gate Naples,
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Packet Pg. 1199 Attachment: 2022-02-18-ULINE AGREEMENT AMENDMENT SIGNED (21750 : Amendment to a Contribution Agreement with City Gate Naples,
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Packet Pg. 1200 Attachment: 2022-02-18-ULINE AGREEMENT AMENDMENT SIGNED (21750 : Amendment to a Contribution Agreement with City Gate Naples,
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Packet Pg. 1201 Attachment: Uline Contribution Agreement - Recorded (21750 : Amendment to a Contribution Agreement with City Gate Naples, LLC)
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Packet Pg. 1202 Attachment: Uline Contribution Agreement - Recorded (21750 : Amendment to a Contribution Agreement with City Gate Naples, LLC)
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Packet Pg. 1203 Attachment: Uline Contribution Agreement - Recorded (21750 : Amendment to a Contribution Agreement with City Gate Naples, LLC)
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Packet Pg. 1204 Attachment: Uline Contribution Agreement - Recorded (21750 : Amendment to a Contribution Agreement with City Gate Naples, LLC)
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Packet Pg. 1205 Attachment: Uline Contribution Agreement - Recorded (21750 : Amendment to a Contribution Agreement with City Gate Naples, LLC)
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16.C.3.cPacket Pg. 1213Attachment: Uline Contribution Agreement - Recorded (21750 : Amendment to a Contribution Agreement