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Agenda 12/10/2024 Item #11B (Approve a Naming Rights Agreement with the David Lawrence Mental Health Center, Inc., (Companion to Item 11A))12/10/2024 Item # 11.B ID# 2024-1071 Executive Summary *** This item is to be heard no sooner than 1 PM. *** Recommendation to approve a Naming Rights Agreement with the David Lawrence Mental Health Center, Inc., relative to the Collier County Behavioral Health Center to generate donations to be restricted specifically for use within the Behavioral Health Center. (Companion to item 11A) OBJECTIVE: To approve a revised Naming Rights Agreement with the David Lawrence Mental Health Center, Inc. (“David Lawrence”) for the Collier County Behavioral Health Center (“Behavioral Health Center”). CONSIDERATIONS: On February 26, 2021, the Collier County Board of County Commissioners (“Board”) directed staff to pursue acquisition of a vacant five-acre parcel of land held by the David Lawrence Center (DLC) in order to construct a Behavioral Health Center. Staff subsequently entered into negotiations with DLC for the purchase of the land and for a lease and operating agreement of the Behavioral Health Center. On May 25, 2021, the Board approved a Vacant Land Contract with DLC for the County to acquire the vacant five-acre parcel of land upon which it would construct the Collier County Behavioral Health Center (the “Facility”), along with a Long-Term Lease and Operating Agreement (“Lease”), under which DLC would lease back the land from the County and operate the Facility. Closing for the property, which shall include the transfer of land to the County and leaseback to DLC, is expected to take place within the next 6-12 months to allow for final site related permitting to be completed. Currently, David Lawrence holds ownership of the Property. On April 23, 2024, Agenda Item 11.B., the Board considered the Naming Rights Agreement for the Behavioral Health Center. It was discussed that the naming terms would be incorporated into the lease between the parties. However, since the lease will not be effective until after closing takes place in 6-12 months, David Lawrence informed us that placing naming rights in the lease is problematic as they intend to solicit donations for the Behavioral Center as soon as possible, prior to closing. Staff met with David Lawrence to discuss how to proceed and David Lawrence requested proceeding with a revised Naming Rights Agreement. Accordingly, the Board-directed modifications have been integrated into the revised Naming Rights Agreement instead of being addressed through a lease modification. The County's obligation to approve the Charitable Pledge Agreement has been eliminated, and the Agreement has been revised to indicate that naming rights shall last as long as DLC operates the CCBHC, and that the Agreement shall automatically terminate if the Lease is terminated by either Party. The Agreement further clarifies that any funds donated in consideration for naming rights, and any furniture, fixtures or other assets acquired in consideration for naming rights, shall be transferred to the successor operator of the CCBHC. The following information was previously presented to the Board on April 23, 2024, and is being included again for background purposes. On June 27, 2023, and again on March 12, 2024, staff provided a project update on the Collier County Behavioral Health Center project. In addition to updating construction cost estimates, the project update also advised that the surtax cannot fund the estimated $4.4 to $5 million requirement for furniture, fixtures, and equipment, nor estimated net incremental annual operating costs estimated to be $4 million by DLC. Recognizing this, David Lawrence Center leadership has met with key community stakeholders to address these unfunded aspects of the program and developed the “Hope for Collier: Building Stronger Minds Together” campaign. Through this campaign, David Lawrence Center (DLC) intends to raise critical funding for furniture, fixtures, and equipment, as well as funding for operations/maintenance of the new Collier County Behavioral Health Center (CCBHC) and earmarked raised funds for such. In order to assist with some level of gap funding for the annual operations of the CCBHC, DLC has developed the concept of allowing donors to name various spaces within the CCBHC in order to generate funds. Donations acquired in consideration for naming a space within the Behavioral Health Center will be restricted specifically for use within the Behavioral Health Center. Naming rights donations will be deposited into a segregated account owned by DLC; the Collier County Clerk of Courts and Comptroller is authorized to inspect, review, or audit the accounts, books, records, and activities of DLC as it relates to these donations. Naming rights shall be valid for as long as David Lawrence operates the CCBHC. Page 3382 of 10663 12/10/2024 Item # 11.B ID# 2024-1071 Donors will be required to execute a Charitable Pledge Agreement, identifying the payment amount, the space being named, and the proposed name of the space. Staff, therefore, recommends that the Board approve the attached Naming Rights Agreement. FISCAL IMPACT: The estimate for required furniture, fixtures, and equipment is between $4.4 and $5 million. Additionally, net incremental annual operating costs are estimated to be $4 million per year. DLC estimates the naming campaign will generate substantial funds to be used to support costs of the CCBHC. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this action. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires a majority vote for approval. -SAA RECOMMENDATIONS: To approve a Naming Rights Agreement with the David Lawrence Mental Health Center, Inc., relative to the Collier County Behavioral Health Center to generate donations to be restricted specifically for use within the Behavioral Health Center. PREPARED BY: Ed Finn, Deputy County Manager ATTACHMENTS: 1. {Linked} CCBHC Naming Rights Agreement DLC and County Nov 2024 Page 3383 of 10663 Page 3384 of 10663 Page 3385 of 10663 Page 3386 of 10663 Page 3387 of 10663 Page 3388 of 10663 Page 3389 of 10663