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Agenda 04/25/2023 Item #11C (To implement the Developer Agreement in furtherance of the development of Essential Services Housing at the former Golden Gate Golf Course)04/25/2023 EXECUTIVE SUMMARY Recommendation to approve Collier County Standard Form Long-Term Ground Lease with Rural Neighborhoods, Inc., to develop Housing at the former Golden Gate Golf Course and authorize necessary budget amendments. (Companion to items 11B & 11D) OBJECTIVE: To implement the Developer Agreement in furtherance of the development of Essential Services Housing at the former Golden Gate Golf Course. CONSIDERATIONS: On December 13, 2019, the County publicly advertised ITN No. 20-7698. On June 9, 2020, the Board selected Rural Neighborhoods, Inc. (Rural Neighborhoods), and directed staff to begin negotiations. On November 10, 2020, the Board approved the negotiated Developer Agreement. A companion item to this item is an amendment to the Developer Agreement. The Collier County Standard Form Long-Term Ground Lease (“Lease”) is consistent with the developer agreement, as amended. Notable terms: 1) Nominal rent of $10, 99-year term lease of 23.36 acres at former Golden Gate Golf Course. 2) Development to be phased between the Essential Workers Housing and Senior Housing with Rural Neighborhoods required to submit plans, specifications and building design to County for approval. 3) Rural Neighborhoods to provide a timeline of anticipated schedule for each Phase to County. 4) County may terminate the Lease if Rural Neighborhoods cannot secure a financial commitment for the initial phase within 6 months from the latter of the effective date of Lease or the effective date of the PUD approval. 5) Rural Neighborhoods is required to diligently pursue construction and complete construction within 30 months from the commencement of construction. 6) Rural Neighborhoods may assign lease without written consent to a single purpose entity who is an affiliate with notice to County. Renaissance Hall at Old Course LLC is the new entity and Rural Neighborhoods grant funding is being pursued in that entity name. As originally provided, deadlines may be extended at the discretion of the County Manager or designee up to six months, without the necessity of obtaining approval of the Board of County Commissioners. Unit Breakdown in Exhibit “B” Rural Neighborhoods will build at least 350 units as originally set forth in the Developer Agr eement. The Essential Services Personnel units will continue to be rented as originally approved with priority given to two tiers of Essential Service Personnel. Tier 1 will include individuals who work in the Healthcare, Education, and Emergency Services sectors; Tier 2 will include Government employees. FISCAL IMPACT: The recommended long-term ground lease with Rural Neighborhoods involves 23.36 acres of the former Golden Gate Golf Course for a nominal annual rent of $10. The County's investment into the subject property is roughly $5.5 million considering the cost of the land and zoning work required for the property. As provided when the Developer Agreement was approved on November 10, 2020, funding for the acquisition of the land and/or debt service on same is planned to come from the Infrastructure Sales Surtax Fund. Once this project is validated by the Infrastructure Surtax Tax Committee, a budget amendment is needed in the Infrastructure Sales Tax Fund (318) to reimburse the Park’s Impact Fee F und (346) $855,684 for a portion of the initial cash outlay plus 4 years of debt service payments. Budget will be established in FY24 thru FY30 for annual debt service payments from the Infrastructure Sales Tax Fund (318), approximate amount is $4.1 million over 7 years. 11.C Packet Pg. 339 04/25/2023 GROWTH MANAGEMENT IMPACT: Providing land for the development of housing that is affordable assists the County in addressing some of the goals and objectives of the Housing Element in the Growth Management Plan. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and legality and requires a majority vote for Board action. -JAK RECOMMENDATION: To approve Collier County Standard Form Long-Term Ground Lease with Rural Neighborhoods, Inc., to develop housing at the former Golden Gate Golf Course and authorize the necessary budget amendments to move funding from Infrastructure Sales Tax Fund to Park’s Impact Fee Fund after the Infrastructure Sales Tax Committee validates the project. Prepared By: Cormac Giblin, Interim Director Economic Development and Housing Division ATTACHMENT(S) 1. GROUND LEASE RURAL NEIGHBORHOODS WITH EXHIBITS 4.18.23 (PDF) 11.C Packet Pg. 340 04/25/2023 COLLIER COUNTY Board of County Commissioners Item Number: 11.C Doc ID: 25115 Item Summary: *** This item to be heard no sooner than 2:30 PM. *** Recommendation to approve Collier County Standard Form Long-Term Ground Lease with Rural Neighborhoods, Inc., to develop Housing at the former Golden Gate Golf Course and authorize necessary budget amendments. (Companion to items 11B & 11D) (Cormac Giblin, Economic Development and Housing Division Director) Meeting Date: 04/25/2023 Prepared by: Title: – Facilities Management Name: Paula Brethauer 04/18/2023 5:40 PM Submitted by: Title: – Facilities Management Name: John McCormick 04/18/2023 5:40 PM Approved By: Review: Facilities Management Geoffrey Willig Director - Facilities Skipped 04/19/2023 11:37 AM Growth Management Development Review Cormac Giblin Additional Reviewer Completed 04/19/2023 11:53 AM Facilities Management Jennifer Belpedio Manager - Real Property Completed 04/19/2023 1:41 PM County Manager's Office Ed Finn Additional Reviewer Skipped 04/19/2023 12:44 PM Community & Human Services Maggie Lopez Additional Reviewer Completed 04/19/2023 1:52 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 04/19/2023 1:57 PM Office of Management and Budget Christopher Johnson Additional Reviewer Completed 04/19/2023 2:06 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 04/19/2023 2:24 PM County Manager's Office Ed Finn Level 4 County Manager Review Completed 04/19/2023 5:45 PM Board of County Commissioners Geoffrey Willig Meeting Pending 04/25/2023 9:00 AM 11.C Packet Pg. 341 11.C.1 Packet Pg. 342 Attachment: GROUND LEASE RURAL NEIGHBORHOODS WITH EXHIBITS 4.18.23 (25115 : Rural Neighborhoods - Lease Agreement) 11.C.1 Packet Pg. 343 Attachment: GROUND LEASE RURAL NEIGHBORHOODS WITH EXHIBITS 4.18.23 (25115 : Rural Neighborhoods - Lease Agreement) 11.C.1 Packet Pg. 344 Attachment: GROUND LEASE RURAL NEIGHBORHOODS WITH EXHIBITS 4.18.23 (25115 : Rural Neighborhoods - Lease Agreement) 11.C.1 Packet Pg. 345 Attachment: GROUND LEASE RURAL NEIGHBORHOODS WITH EXHIBITS 4.18.23 (25115 : Rural Neighborhoods - Lease Agreement) 11.C.1 Packet Pg. 346 Attachment: GROUND LEASE RURAL NEIGHBORHOODS WITH EXHIBITS 4.18.23 (25115 : Rural Neighborhoods - Lease Agreement) 11.C.1 Packet Pg. 347 Attachment: GROUND LEASE RURAL NEIGHBORHOODS WITH EXHIBITS 4.18.23 (25115 : Rural Neighborhoods - Lease Agreement) 11.C.1 Packet Pg. 348 Attachment: GROUND LEASE RURAL NEIGHBORHOODS WITH EXHIBITS 4.18.23 (25115 : Rural Neighborhoods - Lease Agreement) 11.C.1 Packet Pg. 349 Attachment: GROUND LEASE RURAL NEIGHBORHOODS WITH EXHIBITS 4.18.23 (25115 : Rural Neighborhoods - Lease Agreement) 11.C.1 Packet Pg. 350 Attachment: GROUND LEASE RURAL NEIGHBORHOODS WITH EXHIBITS 4.18.23 (25115 : Rural Neighborhoods - Lease Agreement) 11.C.1 Packet Pg. 351 Attachment: GROUND LEASE RURAL NEIGHBORHOODS WITH EXHIBITS 4.18.23 (25115 : Rural Neighborhoods - Lease Agreement) 11.C.1 Packet Pg. 352 Attachment: GROUND LEASE RURAL NEIGHBORHOODS WITH EXHIBITS 4.18.23 (25115 : Rural Neighborhoods - Lease Agreement) 11.C.1 Packet Pg. 353 Attachment: GROUND LEASE RURAL NEIGHBORHOODS WITH EXHIBITS 4.18.23 (25115 : Rural Neighborhoods - Lease Agreement) 11.C.1 Packet Pg. 354 Attachment: GROUND LEASE RURAL NEIGHBORHOODS WITH EXHIBITS 4.18.23 (25115 : Rural Neighborhoods - Lease Agreement) 11.C.1 Packet Pg. 355 Attachment: GROUND LEASE RURAL NEIGHBORHOODS WITH EXHIBITS 4.18.23 (25115 : Rural Neighborhoods - Lease Agreement) 11.C.1 Packet Pg. 356 Attachment: GROUND LEASE RURAL NEIGHBORHOODS WITH EXHIBITS 4.18.23 (25115 : Rural Neighborhoods - Lease Agreement) 11.C.1 Packet Pg. 357 Attachment: GROUND LEASE RURAL NEIGHBORHOODS WITH EXHIBITS 4.18.23 (25115 : Rural Neighborhoods - Lease Agreement) 11.C.1 Packet Pg. 358 Attachment: GROUND LEASE RURAL NEIGHBORHOODS WITH EXHIBITS 4.18.23 (25115 : Rural Neighborhoods - Lease Agreement) 11.C.1 Packet Pg. 359 Attachment: GROUND LEASE RURAL NEIGHBORHOODS WITH EXHIBITS 4.18.23 (25115 : Rural Neighborhoods - Lease Agreement)