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Agenda 04/23/2024 Item #11D (Long-Term Lease and Operating Agreement w/the Gate Golf Club, Inc.)SEE REVERSE SIDE  Proposed Agenda Changes Board of County Commissioners Meeting April 23, 2024 Move item 16D4 to 11E: Recommendation to terminate for convenience Agreement No. 17-7152, “Parks and Recreation Pickleball Concessionaire,” with Pickleball Enterprises, LLC, d/b/a Naples Pickleball Center. (Commissioner Kowal’s request) Notes: The Executive Summary for item 10A has been updated to note that the proposed Resolution is from United Sovereign Americans rather than the election integrity committee of the Collier County Republican Executive Committee. TIME CERTAIN ITEMS: Item 10B to be heard at 1 PM: Update on the State Veterans’ Nursing Home project from the Florida Department of Veterans’ Affairs. Item 11D to be heard no sooner than 1:30 PM: Long-Term Lease and Operating Agreement with The Gate Golf Club, Inc., (“The Gate”). 4/24/2024 3:35 PM 04/23/2024 EXECUTIVE SUMMARY Recommendation to approve a Long-Term Lease and Operating Agreement with The Gate Golf Club, Inc., (“The Gate”) for the construction, renovation, and operation of a 9-hole public golf course, driving range, short game area, clubhouse with a restaurant, a First Tee Learning Center (“Golf Complex") with a discounted fee structure for County residents, and a rental fee to be paid to the County. _________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ OBJECTIVE: To approve the Long-Term Lease and Operating Agreement with The Gate Golf Club, Inc., for the Golf Complex at the former Golden Gate Golf Course. CONSIDERATIONS: On June 25, 2019, the Board made the decision to acquire the Golden Gate Golf Course located at 4100 Golden Gate Blvd. (Agenda Item 11.C). This was followed by the County taking ownership of the former Golden Gate Golf Course on July 31, 2019. On December 12, 2023, the Board directed staff to develop and solicit an Invitation to Negotiate for the Golden Gate Golf Course's design, construction, and operation. On December 18, 2023, the Procurement Services Division released Invitation to Negotiate (“ITN”) No. 24-8223 for the Golf and Entertainment Complex at the former Golden Gate Golf Course. The County received two (2) submittals by the January 8, 2024, deadline. The Selection Committee met on January 22, 2024, and again on January 29, 2024, for presentations and final ranking, with The Gate Golf Club, Inc. (“The Gate”) selected as the top-ranked firm. On February 13, 2024, the Board approved the selection committee’s ranking and authorized staff to begin contract negotiations with The Gate Golf Club, Inc., a Not-for-Profit Corporation, to prepare a proposed agreement for developing the Golf Complex. The proposed Lease provides for The Gate's construction, maintenance, and operation of the Golf Complex. The golf course, driving range/practice area, and related golf course amenities comprising the Golf Complex will be continuously operated and maintained by The Gate. Key Contract Terms: • The Gate will design, permit and construct the nine-hole golf course, driving range/practice area, and related golf course amenities comprising the “Golf Complex.” • The lease has an initial term of 40 years with the option for four (4) five-year renewals. • The Gate will pay the County a phased-in rent with annual CPI increases. • The County will invest $6 million for redevelopment of the golf course, and any investment above that amount will be the responsibility of The Gate. • If it is determined by the Gate that any required environmental remediation will exceed $250,000 (“Remediation Cap”), The Gate may elect to terminate this agreement, or the County has the option to either pay the difference between the remediation estimate and the Remediation Cap or terminate the Lease at no cost or penalty. • Construction shall be completed within twenty-four (24) months from issuance of final site-related permitting. • The Gate is permitted to retain a third-party operator. The Gate has selected Affiniti Golf Partners, LLC, d/b/a Bobby Jones Links, a private club management company, to manage its operations. According to the Lease, the County is responsible for approving third-party operators. Therefore, as part of the Lease approval process, you will be approving Bobby Jones' management of the course. • County Residents will be provided with year-round golf discounts. Bobby Jones will set the greens fees using a dynamic pricing algorithm. The Gate and Bobby Jones estimate the annual value of discounts to be $600,000. • The Gate will sublease land to First Tee for the purposes of building a clubhouse with classrooms, offices, conference rooms, and storage. 11.D Packet Pg. 182 04/23/2024 The Gate must construct a 9-hole golf course, driving range, practice area, pro shop, cart barn, and maintenance building. The Golf Complex also includes a building with 150+ full-service dining seats, food and beverage areas, private event space, and a patio. Before the commencement of work, the County must approve the plans and specifications for the improvements in writing. The Gate is solely responsible for designing, permitting, and constructing the Golf Complex. This includes any environmental testing, stormwater management, and related mitigation or remediation that may be necessary. The Golf Complex project is estimated to cost at least $21 million. The County will provide $6 million to support the Project as part of the agreement. The payment from the County will be made upon issuance of the last final site acceptance for the Golf Complex. The Gate is solely responsible for the amount beyond that $6 million contribution. If the Gate determines that any required environmental remediation will exceed $250,000 (“Remediation Cap”), The Gate may elect to terminate this agreement, or the County has the option to either pay the difference between the remediation estimate and the Remediation Cap or terminate the Lease at no cost or penalty. The Gate will provide a professionally managed, properly staffed, and operated golf course, including on -site staff responsible for the required agronomic practices of the golf course in accordance with industry best maintenance practices. It will also provide a pro shop, restaurant clubhouse, and preferred golf course rates for First Tee and Collier County residents. The golf course is initially proposed to be open Monday through Sunday, 365 days a year, from dawn to dusk. The driving range and practice area are proposed to be open Monday through Thursday, 7:00 a.m. to 11:00 p.m. and 7:00 a.m. to 12:00 a.m. Friday through Sunday, with adjustments made for holidays and golf course maintenance. Under the proposed Lease, The Gate will provide a resident discount of 40% on seasonal rates and 20% on off - season rates. The Gate will also pay an annual base rent of $130,000 per year. The annual base rent is subject to an annual CPI adjustment. The rent will apply after the construction period and be phased in over the initial three years of operation. The Gate will sublease land to First Tee for the purposes of building a clubhouse with classrooms, offices, conference rooms, and storage. The Gate has approval rights on location and design of any improvements. The annual lease expense is contemplated to be a nominal $1.00 per year, with the terms and conditions running commensurate with the lease between the County and The Gate. Collier County shall have the right to review and approve any lease with First Tee. First Tee staff and volunteer coaches play for free during First Tee supervised programming periods. FISCAL IMPACT: Under Board direction and ITN 24-8223, the County will provide a one-time funding of $6 million toward the project's development. Those funds are available in County Wide Capital Fund (3001), Project No. 80412, Golden Gate Golf Course and are payable upon issuance of the last final site acceptance for the Golf Complex. The annual base rent of $130,000 will be subject to an annual CPI adjustment. Rental revenue from this agreement will be deposited in the General Fund. GROWTH MANAGEMENT IMPACT: This action has no immediate impact on the Growth Management Plan. LEGAL CONSIDERATIONS: This item has been approved as to form and legality and requires a majority vote for approval. -SAA RECOMMENDATION: To approve and authorize the Chairman to execute a Long-Term Lease and Operating Agreement with The Gate Golf Club, Inc., for the construction, renovation, and operation of a 9-hole public golf course, driving range, short game area, clubhouse with a restaurant, a First Tee Learning Center with a discounted fee structure for County residents, and a rental fee to be paid to the County. Prepared by: Ed Finn, Deputy County Manager ATTACHMENT(S) 1. The Gate Lease FINAL (PDF) 11.D Packet Pg. 183 04/23/2024 2. 20240412_23395_NC_FIRST_TEE_ARTHREX (PDF) 3. The Gate_Conceptual Routing Study_4-4-24 (PDF) 11.D Packet Pg. 184 04/23/2024 COLLIER COUNTY Board of County Commissioners Item Number: 11.D Doc ID: 28608 Item Summary: *** This Item to be heard no Sooner than 1:30 PM. *** Recommendation to approve a Long- Term Lease and Operating Agreement with The Gate Golf Club, Inc., (“The Gate”) for the construction, renovation, and operation of a 9-hole public golf course, driving range, short game area, clubhouse with a restaurant, a First Tee Learning Center (“Golf Complex") with a discounted fee structure for County residents, and a rental fee to be paid to the County. (Ed Finn, Deputy County Manager) Meeting Date: 04/23/2024 Prepared by: Title: Management Analyst II – County Manager's Office Name: Geoffrey Willig 04/17/2024 8:34 AM Submitted by: Title: Director - Facilities Maangement – County Manager's Office Name: Ed Finn 04/17/2024 8:34 AM Approved By: Review: Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 04/17/2024 8:37 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 04/17/2024 9:53 AM Community & Human Services Maggie Lopez OMB Reviewer Completed 04/17/2024 3:15 PM County Attorney's Office Sally Ashkar CAO Reviewer Completed 04/17/2024 4:45 PM County Manager's Office Amy Patterson Level 4 County Manager Review Completed 04/17/2024 6:03 PM Board of County Commissioners Geoffrey Willig Meeting Pending 04/23/2024 9:00 AM 11.D Packet Pg. 185 11.D.a Packet Pg. 186 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 187 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 188 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 189 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 190 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 191 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 192 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 193 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 194 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 195 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 196 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 197 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 198 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 199 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 200 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 201 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 202 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 203 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 204 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 205 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 206 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 207 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 208 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 209 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 210 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 211 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 212 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 213 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 214 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.a Packet Pg. 215 Attachment: The Gate Lease FINAL (28608 : The Gate Golf Club, Inc. Operating Agreement) LOADING ZONELOADING ZONEPLAZAFOUNTAINSPLASHPADLAP POOLOUTDOORACTIVE AREAAMENITIESLOBBYFUTURE ELDERLY HOME UNITSPOOLC3C2C1C4A1A3B1A2B2BUS STOPBBQAREABBQAREAAMENITY 6,000 SFU.S. MAILDELIVERY +MAINTENANCEEX. LAKEMDN DN MHK ARCHITECTURE COPYRIGHT © 2024SK304/12/24 NC First Tee Arthrex SCALE: 1/64" = 1'-0" THE VILLAGE SITE PLAN1 The Gate / FIRST TEE LEARNING CENTER FIRST TEE OFFICES EVENT PAVILLION CONCESSIONS RESTAURANT PRO SHOP CART BARN DRIVING RANGE PUTTING COURSE PLAYGROUND KITCHEN LAKE 9TH GREEN 11.D.b Packet Pg. 216 Attachment: 20240412_23395_NC_FIRST_TEE_ARTHREX (28608 : The Gate Golf Club, Inc. Operating Agreement) 11.D.c Packet Pg. 217 Attachment: The Gate_Conceptual Routing Study_4-4-24 (28608 : The Gate Golf Club, Inc. Operating Agreement)