Agenda 09/24/2024 Item #11F (Lease Agreement between Collier County and Spirit Promotions, LLC, for the East Naples Community Park and Sugden Park for hosting the U.S. Open Pickleball Championships and the U.S. Open Pickleball Academy)9/24/2024
Item # 11.F.
ID#: 2024-1171
Executive Summary
Recommendation to approve and authorize the Chairman to execute a Lease Agreement between Collier County and
Spirit Promotions, LLC, for the East Naples Community Park and Sugden Park for hosting the U.S. Open Pickleball
Championships and the U.S. Open Pickleball Academy.
OBJECTIVE: To obtain approval of a Lease Agreement between Collier County and Spirit Promotions, LLC, for the
East Naples Community Park and Sugden Park for hosting the U.S. Open Pickleball Championships and the U.S. Open
Pickleball Academy.
CONSIDERATIONS: Spirit Promotions has hosted the U.S. Open Pickleball Championships (the “Championships”) at
the East Naples Community Park (“ENCP”) each spring since 2019, attracting over 50,000 visitors and guests annually,
with an estimated economic impact of over $12 million and intends to continue hosting this event in Collier County for
the long term. To provide overflow event parking, Spirit Promotions has leased Sugden Regional Park to accommodate
the large numbers of visitors and residents.
Spirit Promotions plans to host the U.S. Open Pickleball Academy (the “Academy”) at ENCP which will attract visitors
and residents to what has been called the Pickleball Capital of the World, and Collier County is interested and invested
in developing the Academy and supporting the creation of a state-of-the-art national pickleball teaching facility in
Naples.
Spirit Promotions has requested a Lease Agreement for ENCP and Sugden Regional Park for the U.S. Open Pickleball
Championships and the newly established U.S. Open Pickleball Academy. The Agreement will be in effect through the
proposed U.S. Open Pickleball Championships contract term in 2032.
The Lease Agreement provides:
Spirit Promotions proposes to lease ENCP for hosting the U.S. Open Pickleball Championships. During the U.S.
Pickleball Championships event, Spirit Promotions will lease the entire park, including (1) the Welcome Center; (2) all
open spaces; (3) all indoor spaces of Community Center; (4) all pickleball courts; and (5) all designated parking areas.
During the event, there will not be any pickleball courts open to the public; limited public space will be available in the
Community Center. In addition, Spirit Promotions shall have year-round access to designated space within the
Welcome Center, specifically one small office and a storage area. The proposed rent is $56,000 annually with a 2.5%
annual rent escalation. Spirit Promotions is responsible for all costs associated with hosting this event.
Spirit Promotions also proposes to lease a minimum of six and up to twelve covered courts annually to operate the U.S.
Open Pickleball Academy. Spirit Promotions will designate the Academy courts, starting first with the courts under the
existing pickleball canopy and then relocating to the new waterproof canopy once constructed. The proposed rent is
$21,000 annually, with a 2.5% annual rent escalation. Spirit Promotions will share the gross revenue of the Academy
with Collier County with 95% of the gross revenue to Spirit Promotions and 5% of the revenue provided to Collier
County.
Spirit Promotions has also agreed to assist with the maintenance of ENCP including the pickleball courts, nets,
windscreens, fencing, resurfacing, etc., and general custodial services of the Welcome Center. Collier County will
continue to maintain the public restrooms at the County’s expense except during the U.S. Open Pickleball
Championships, when Spirit Promotions will provide this service.
Spirit Promotions proposes to lease Sugden Park (open space) for event parking during the U.S. Pickleball
Championships, provided, however, that the park shall remain open for public use. Spirit Promotions may charge U.S.
Pickleball Championships attendees for parking. However, members of the public visiting the park for other purposes
shall not be charged for parking at the public park. The proposed rent is $8,400 annually, with 2.5% annual rent
escalation.
FISCAL IMPACT: Annual combined rent for the ENCP and Sugden Regional Park for the U.S. Open Pickleball
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Championships and the newly established U.S. Open Pickleball Academy is $86,000. The rents shall be increased by
2.5% each year throughout the term of the Agreement following the first year. Rent and the County's 5% share of
Academy revenue will be deposited in the ENCP Cost Center within Unincorporated Area General Fund (1011) upon
collection.
GROWTH MANAGEMENT IMPACT: This item is consistent with Section B: Intermodal & Multi-modal
Transportation, Subsection 2: Aviation of the Transportation Element of the Growth Management Plan.
LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for approval. –
CMG
RECOMMENDATIONS: To approve and authorize the Chairman to execute a Lease Agreement between Collier
County and Spirit Promotions, LLC, for the East Naples Community Park and Sugden Park for hosting the U.S. Open
Pickleball Championships and the U.S. Open Pickleball Academy.
PREPARED BY: James Hanrahan, Assistant Division Director Parks and Recreation Division
ATTACHMENTS:
1. Lease Agreement Spirit Promotions rev MD signed
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