Agenda 12/12/2023 Item #16D12 (Second Amendment to the Lease Agreement with the owner of Naples Grande Beach Hotel)12/12/2023
EXECUTIVE SUMMARY
Recommendation to approve a Second Amendment to the Lease Agreement with the owner of Naples
Grande Beach Resort, HP-SSP Naples Hotel LLC, to extend the lease term for an additional twenty (20)
years plus two (2) 10-year renewals and amend certain other provisions to enhance Clam Pass Beach Park
operations and its facilities.
OBJECTIVE: To extend the lease term and amend certain terms to enhance Clam Pass Beach Park operations and
its facilities.
CONSIDERATIONS: On April 13, 1982, and recorded in the Official Records of Collier County, Florida in O.R.
Book 966, Pages 1841-1863, the current Class Pass Beach Park property was deeded to Collier County by
Westinghouse Communities of Naples, Inc.
On November 15, 1983, the County entered into a Beach Access Facilities Agreement with Can-American Sea
Gate Corporation (Can-Am) whereby the County granted Can-Am the right to design and construct “Beachside
Facilities” consisting of a snack bar, restrooms, and showers. Can-Am also designed and constructed at its own cost
and expense an improved, paved, well-landscaped parking lot; a gatehouse for the security of the parking lot;
improved common accessway from Seagate Drive to constructed parking lot and hotel (Registry Resort & Club);
and improved accessway from the parking lot to Outer Clam Bay. The County would then own and operate, either
through its own staff or its selected concessionaire, the parking lot including the Gatehouse and Beachside
Facilities. The County agreed to also operate and maintain any boardwalk that may be constructed by the County.
On October 23, 2007, under Agenda Item #10.N., the County entered into a Lease Agreement (Agreement) with the
owner of the Naples Grande Beach Resort (“Naples Grande”) to provide food, bevera ge, beach equipment, and
water recreational concession services to the patrons of Clam Pass Beach Park.
Collier County and Naples Grande have nurtured a lasting relationship spanning several decades, dedicated to
enhancing customer service and beach-related amenities, while also enriching the community through the provision
of special events.
On September 26, 2017, under Agenda Item #16.D.1., the Board of County Commissioners (Board) approved a
First Amendment to the Lease Agreement. Naples Grande introduced additional modifications to the First
Amendment, and that revised version was approved on December 12, 2017, as Agenda Item #16.D.2. The First
Amendment expanded the tram operation by Naples Grande from two (2) to three (3) tram. It also granted Naple s
Grande the first right of refusal to operate any facilities associated with the second boardwalk construction.
Additionally, the First Amendment provided a procedure for the concession’s early closer during inclement
weather.
The original lease term was ten (10) years and concluded on October 23, 2017. The lease can be extended for two
(2) more five-year terms. Currently, we are operating within the second and final renewal term which will expire on
October 23, 2027.
Naples Grande initiated discussions with County staff to explore the possibility of extending the term. In exchange,
they have proposed to enhance both the operations and the facilities at Clam Beach Park.
The following notable terms are presented as a Second Amendment to Lease Agreement:
• Following the expiration of October 23, 2027, the terms will extend for an additional twenty (20) years to
October 23, 2047. Naples Grande has the option to further extend the term for two (2) additional periods of
ten (10) years each, subject to the same terms and conditions, as long as it is not in default at that time.
• Reduction of the percentage of the gross sale of alcoholic beverages due from Naples Grande from twelve
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percent (12%) to ten percent (10%).
• Naples Grande to complete capital improvements and repairs to the Clam Pass decking area (Concession
and Restroom amenities) at its sole cost and expense within 180 days of approval of the Second
Amendment to Lease Agreement.
• Naples Grande will be able to host 52 events, doubling the previous limit of 26. Naples Grande will still be
required to pay a $200 per hour usage fee to the County for each event.
• Naples Grande to add a Fire Alarm and Fire Extinguisher, Sprinkler, Hood Suppression System,
Emergency Lights, and Backflow to its maintenance responsibilities of Beachside Facilities.
• Allow Naples Grande certain exceptions from Park hours. Hours of operations on Fridays, Saturdays,
Sundays, and holidays may be extended to 11:00 p.m. with the permission of the Director of Parks and
Recreation.
• Naples Grande to make reasonable non-structural improvements and modifications as necessary to enhance
premises, improve the life safety of the premises (including without limitation the addition, repair, or
replacement of handrails on all staircases), and bring the premises in compliance with all applicable
building codes and the requirements of the Americans with Disabilities Act, without County’s prior written
approval. Other improvements and modifications require the County’s approval.
• The general maintenance and upkeep of the County Public Parking Area, including related landscaping will
be the responsibility of Naples Grande. Parking revenue will be retained by the County.
Based on calendar 2022 actuals and 2023 year-to-date commission remitted for alcohol sales, the two percent (2%)
reduction in commission will result in an estimated $17,000 loss in revenue per year to the County.
Under the current agreement, 26 Special Events per year are permitted. Based on the current Parks Fee Schedu le of
$200 per hour and an average of two (2) hours per event, revenue of $10,400 would be generated annually. By
increasing the Special Event allowance to 52 events per year, the potential revenue to the County increases to
$20,800 annually.
County Staff and Naples Grande will develop and implement an agreed upon management plan to ensure
compliance with executed Lease Agreement.
PARKS ADVISORY BOARD RECOMMENDATION: At the November 15, 2023, Parks and Recreation
Advisory Board (PARAB) Meeting, the Advisory Board voiced several concerns regarding the structure and future
management of the amended agreement as presented and chose not to make a recommendation until their concerns
were answered.
FISCAL IMPACT: Approval of the second amendment to the lease agreement will result in an estimated annual
capital and maintenance savings of $42,000 and a potential increase in park fee revenues related to special events of
$10,400. These savings will be partially offset by a 2% reduction in the county’s share of a lcoholic beverage sales
estimated at $17,000 annually. Revenue from this agreement is deposited within the General Fund (0001) Beach &
Water Park Operation Cost Center 156363.
GROWTH MANAGEMENT IMPACT: There is no Growth Management impact.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and
legality and requires majority vote for approval. -JAK
RECOMMENDATION: To approve a Second Amendment to the Lease Agreement with the owner of Naples
Grande Beach Resort, HP-SSP Naples Hotel LLC, to extend the lease term and amend certain other provisions to
enhance Clam Pass Beach Park operations and its improvements and facilities.
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Prepared By: Tanya Williams, Public Services Department Head
ATTACHMENT(S)
1. Naples Grande First Am with Original Lease attached (002) (PDF)
2. Lease Agreement Amendment No. 2 (rev.2 - formatted) (DOC)
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COLLIER COUNTY
Board of County Commissioners
Item Number: 16.D.12
Doc ID: 27003
Item Summary: Recommendation to approve a Second Amendment to the Lease Agreement with the owner of
Naples Grande Beach Resort, HP-SSP Naples Hotel LLC, to extend the lease term for an additional twenty (20)
years plus two (2) 10-year renewals and amend certain other provisions to enhance Clam Pass Beach Park
operations and its facilities.
Meeting Date: 12/12/2023
Prepared by:
Title: Management Analyst II – County Manager's Office
Name: Geoffrey Willig
12/05/2023 5:03 PM
Submitted by:
Title: Department Head – Public Services Department
Name: Tanya Williams
12/05/2023 5:03 PM
Approved By:
Review:
Operations & Veteran Services Jeff Weir OVS Director Review Completed 12/05/2023 5:18 PM
Public Services Department Todd Henry PSD Level 1 Reviewer Completed 12/06/2023 7:22 AM
Public Services Department Tanya Williams PSD Department Head Review Completed 12/06/2023 8:22 AM
Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 12/06/2023 8:46 AM
Office of Management and Budget Blanca Aquino Luque Additional Reviewer Completed 12/06/2023 1:48 PM
County Attorney's Office Geoffrey Willig Level 3 County Attorney's Office Review Skipped 12/06/2023 5:14 PM
County Manager's Office Dan Rodriguez Level 4 County Manager Review Completed 12/06/2023 5:31 PM
Board of County Commissioners Geoffrey Willig Meeting Pending 12/12/2023 9:00 AM
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Packet Pg. 2175 Attachment: Naples Grande First Am with Original Lease attached (002) (27003 : Naples Grande Second Amendment to Lease)
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Lease #PS-133
SECOND AMENDMENT TO LEASE AGREEMENT
THIS SECOND AMENDMENT TO LEASE AGREEMENT (“Amendment”), entered into this
______ day of ______________, 2023, by and between Collier County, a political subdivision of the
State of Florida, on behalf of Parks and Recreation, whose mailing address is c/o Real Property
Management, 3335 East Tamiami Trail, Suite 101, Naples, Florida 34112, hereinafter referred to as
“LESSOR,” and HP-SSP Naples Hotel LLC, a Delaware limited partnership, whose post office address is
c/o Henderson Park, 4 Radnor Corporate Center, 100 Matsonford Road, Suite 220, Radnor, PA, successor
to NWNG LLC, a Delaware limited liability company, hereinafter referred to as “LESSEE.”
W I T N E S S E T H
WHEREAS, the LESSOR and LESSEE have previously entered into a Lease Agreement dated
October 23, 2007, and a First Amendment to Lease Agreement dated December 12, 2017, hereinafter
referred to collectively as the ‘Lease,’ which are attached hereto and made a part hereof this Amendment;
and
WHEREAS, LESSEE and LESSOR are currently operating under the second additional renewal
term allowed by the Lease Agreement, as amended, which expires October 23, 2027.
WHEREAS, the LESSEE and LESSOR are desirous of entering into this Amendment to extend
the Lease Term and amend certain other provisions of the Lease in an effort to demonstrate their
commitment to an ongoing strategic public-private partnership to enhance the entirety of the beach
operations including the general enhancement of all improvements and facilities thereon, the
improvement of the boardwalk and LESSEE’s improvement and operation of the parking lot.
WHEREAS, the LESSEE and LESSOR intend to enter into future amendments as necessary to
facilitate future strategic initiatives to accomplish the items set forth above, which may include LESSEE’s
enhanced management of the beach and tram operations including but not limited to the parking lot.
NOW, THEREFORE, in consideration of the covenants and agreements provided within the
Lease, and Ten Dollars ($10.00) and other valuable consideration, the Lease is hereby further amended as
follows:
1. Demised Premises: Lease Agreement is hereby amended to replace Exhibit “A” with updated
Exhibit “A”, attached hereto.
2. Article 2. Term of Lease:
Following the renewal expiration date of October 23, 2027, the Lease term shall extend as
follows:
***
LESSEE shall have and hold the Demised Premise for an additional term of twenty (20) year(s),
commencing on October 24, 2027 and ending October 23, 2047 (the “Extended Term”). LESSEE
is granted the option, provided it is not then in default of any provisions of this Lease, to extend
the term for two additional terms of ten (10) year(s) each under the same terms and conditions as
provided herein, by delivering written notice of LESSEE’S unconditional intention to do so to the
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LESSOR not less than thirty (30) days prior to the expiration of the Extended Term. Said notice
shall be effective upon actual receipt by the County.
***
3. Article 4. Section (D) 2. Other Expenses, Charges and Considerations:
LESSOR AND LESSEE agree to reduce the percentage of the gross sale of alcohol beverage due
from LESSEE to LESSOR from twelve percent (12%) to ten percent (10%). As such, Article 4
Section (D)(2) is hereby amended as follows:
***
2. Alcohol sales will be permitted on the inside seated area and the outside deck area and will not
be permitted on the beach except for private party events as permitted in Article 16 herein, and
said events shall be restricted to occurring in the area bounded by the mangroves on the east to
the water line on the west and from the northern beach access ramp connecting the concession
deck and the beach and proceeding one-thousand feet north. See Article 16 herein. LESSEE shall
remit 12% 10% of gross sales of all alcoholic beverages, excluding private party events, will be
paid directly to Collier County Parks and Recreation Department each month with a statement
showing gross sales for the period and shall be received without any taxes due. Payments will be
due by the 20th of the following month.; any payment received late may be subject to a $100 per
day charge.
***
4. Article 3. Rent:
Article 3 of the Lease is hereby amended as follows:
***
LESSOR agrees to Lease the Demised Premises to the LESSEE without cost to the LESSEE.
LESSEE agrees to complete capital improvements and repairs to the Clam Pass Decking area at
LESSEE’s sole cost and expense within one-hundred eighty (180) days of Board approval of this
amendment.
5. Article 16. Section (A), Special Events:
The number of private events LESSEE is permitted to hold is hereby amended from twenty-six
(26) to fifty-two (52). As such, Article 16 of the Lease is hereby amended as follows:
The Demised Premises may be used during and after normal operating hours as further described
below:
***
The LESSEE shall have the express right to hold no more than twenty-six (26) fifty-two (52)
private events per calendar year such as barbeques and similar functions at the Demised Premises.
Private event may not occur prior to two hours before sunset. All such private events shall be
subject to receipt of a Naples Grande Event Permit issued by LESSOR upon approval of a
complete a completed Rental Permit Agreement form and pay LESSEE’s payment of a usage fee
in the amount of two-hundred ($200.00) dollars per hour to County LESSOR for the use of the
Premises. This usage fee shall be subject to modification upon mutual agreement between the
County LESSOR and Lessee.
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6. Article 19. Services and Duties:
The LESSEE shall have the ability to extend hours to 11:00 PM on Fridays, Saturdays, Sundays
and holidays. In addition, LESSEE shall have certain additional responsibilities. As such, Article
19 of the Lease is hereby amended as follows:
The LESSEE agrees that the operation and Maintenance of the Park and concession stand(s) is to
be handled by trained personnel, with emphasis on safety and maintaining the Beachside
Facilities and immediately adjacent beach in a neat and orderly fashion. The LESSEE hereby
agrees to perform the following duties:
(A) Maintain the bathroom facilities in a clean and sanitary condition at all times.
(B) Qualify customers and give instructions on the operation of the various rental
equipment.
(C) Oversee the general use of the Boardwalk, Beachside Facilities, and the immediately
adjacent beach, and shall report all misuse, damage and violations to the authorities
and notify the Director of Parks and Recreation as appropriate. Nothing herein shall
be construed or interpreted as imposing any obligation or duty on the LESSEE for
the public's safety in their use of the ocean.
(D) Furnish all soap and other consumable supplies for the restroom facilities.
(E) Collect, bag and place the garbage in containers, and have the containers removed
from the Premises.
(F) Remove trash daily and provide litter pickup for all trash and debris not in
containers for the immediately adjacent beach, Beachside Facilities, Boardwalk, and
surrounding areas, excluding the County Public Parking Area.
(G) (Reserved) Fire Alarm and Fire Extinguisher, Sprinkler, Hood Suppression System,
Emergency Lights, and Backflow.
(H) (Reserved)
(I) Open and close the Park according to the established Park hours with exceptions of
Friday, Saturday, Sundays and holidays in which hours may be extended to 11:00
PM.
(J) Clean up debris/trash from the sand beach area in and around the demised area.
***
7. Article 23. Hours of Operation:
The LESSEE shall have the ability to extend the hours of operation to 11:00 PM on Fridays,
Saturdays, Sundays and holidays. As such, Article 23 of the Lease is hereby amended as follows:
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HOURS OF OPERATION. LESSEE shall open the concession stand(s) no later than 9:00 a.m.,
and close not earlier than 6:00 p.m., seven (7) days a week, unless otherwise agreed with the
Director of Parks and Recreation. The LESSEE also agrees to open and close the public Park
from dawn to dusk unless specifically authorized in writing by the Director of Parks and
Recreation to do otherwise or the premises are in use in accordance with Section 8 above. During
inclement weather, the LESSEE shall use its own best Judgement regarding closing the
concession. Prior to closing early during such times of inclement weather, or during any times in
which the Lessee may be required to close earlier then scheduled as contained in this Lease , the
Lessee shall notify the LESSOR by telephone or by email at a minimum of thirty minutes prior to
such closing and shall obtain approval from the LESSOR prior to closing. LESSOR
acknowledges that weather conditions change quickly, and if LESSEE is unable to provide the
required notice as mentioned previously, LESSEE shall, in its best efforts notify LESSOR as
quickly as possible, The LESSOR shall have the right to request LESSEE to extend its normal
operating hours to accommodate County-sponsored events for up to 15 hours of such extended
operations per year, to require a written guarantee from County of revenue to be generated during
such extended hours, in amount(s) to mutually agreed up on by the parties.
***
8. Article 5. Modifications to Demised Premises:
The LESSEE shall have the ability to make certain improvements and modifications to
the Demised Premises. As such, Article 5 of the Lease is hereby amended as follows:
Prior to making any changes, alterations, additions or improvements to the Demised
Premises, LESSEE must provide to LESSOR all proposals and plans for alterations,
improvements, changes or additions to the Demised Premises for LESSOR’S written approval,
specifying in writing and in meaningful detail, the nature and extent of the desired alteration,
improvement, change, or addition, along with the contemplated starting and completion time for
such project. LESSOR or its designee will then have sixty (60) days within which to approve or
deny in writing said request for changes, improvements, 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) days there has been no response
from LESSOR or its designee to said proposals or plans, then such silence shall be deemed as a
DENIAL an APPROVAL to such request to LESSEE.
Notwithstanding the immediately preceding sentence, LESSEE intends to make capital
improvements and modifications to the Demised Premises in an effort to enhance the overall
experience for Collier County residents and guests of the LESSEE’s resort, however LESSEE
shall not make any major structural or capital improvements or modifications to the Demised
Premises without LESSOR’s prior written approval in accordance with the immediately
preceding paragraph. LESSEE shall have the right to make reasonable non-structural
improvements and modifications to the Demised Premises as necessary to enhance the Demised
Premises, improve the life safety of the Demised Premises (including without limitation the
addition, repair or replacement of handrails on all staircases) and bring the Demised Premises in
compliance with all applicable building codes and the requirements of the Americans with
Disabilities Act, without LESSORs prior written approval.
LESSEE covenants and agrees in connections with any maintenance, repair work,
erection, construction, improvement, addition or alteration of any authorized modifications,
additions or improvements to the Demised Premises, to observe and comply with all then and
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future applicable laws, ordinance, rules, regulations, and requirements of the United Sales of
America, State of Florida, County of Collier, and any and all other governmental agencies,
however nothing contained herein shall be construed as the LESSEE covenanting or warranting
the work of third-party contractors retained to do any of the aforementioned work.
All alterations, improvements and additions to said Demised Premises shall at once, when
made or installed, be deemed as attached to the freehold and to have become property of
LESSOR.
***
9. Article 20. County Public Parking Area.
The Demised Premises has been revised to include the area commonly known as 465 Seagate
Drive, Naples, Florida (the “County Public Parking Area”) as set forth in Section 1 of this
Amendment. As such Article 20 of the Lease is hereby amended as follows:
Any maintenance or and supervision of the County Public Parking Area including related
landscaping shall be the sole responsibility of County LESSEE. Lessee LESSOR shall have no
duties whatsoever with respect to the County Public Parking Area, and shall incur no expense or
liability with respect thereto. The Lessee will ensure that no employees will park cars in the
public lot during their working hours, unless previously approved in writing by the Director of
Parks and Recreation.
***
IN WITNESS WHEREOF, the LESSEE and LESSOR have hereto executed this Second
Amendment the day and year first above written.
AS TO THE LESSEE:
HP-SSP Naples Hotel LLC
By: ___________________________________
Printed Name: ___________________________
Title: _________________________________
AS TO THE LESSOR:
ATTEST: BOARD OF COUNTY COMMISSIONERS
Crystal K. Kinzel, Clerk of Courts COLLIER COUNTY, FLORIDA
By: ___________________________ By: _____________________________
, Deputy Clerk Rick LoCastro, Chairman
Approved as to form and legality:
______________________________
Jeffrey A. Klatzkow, County Attorney
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Packet Pg. 2194 Attachment: Lease Agreement Amendment No. 2 (rev.2 - formatted) (27003 : Naples Grande Second Amendment to Lease)