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Backup Documents 11/10/2025 Item #11EHousing Policy & Economic Development Division Item 11.E. Economic Development Agreement with ‘Project Bones’, in the amount of $6 million Board of County Commissioners November 10, 2025 •The Bay College of Osteopathic Medicine, LLC, based in Tampa, proposes to build a sister school to complement its recently completed Orlando College of Osteopathic Medicine. •Projected cost to construct the school is at a $170 million investment •Proposed 108,000-square-foot facility •400 students on campus; expected to graduate 180 medical students each year by 2029 •Employ 325 construction workers •Create over 100 target industry jobs •Bay College will offer at least 20 scholarships to Collier County residents Overall economic impact estimated at over 20 years close to $2 billion 2 Economic Development Agreement with ‘Project Bones’, in the amount of $6 million •Proposed EDA to provide $6 million to the Bay College of Osteopathic Medicine, LLC: •$1 million upon issuance of the Certificate of Occupancy (CO) •$500,000 per year of operation for up to ten (10) years •$6 million represents 3.5% of the total project cost and projected the Return on Investment (ROI) to Collier County is positive •Payments will be made upon verification of the certificate of occupancy, business tax receipts, and property taxes being current in Collier County. •Bay College shall not convert, reorganize, or otherwise become a nonprofit or tax- exempt entity until it has paid at least $6,000,000 in ad valorem property taxes. 3 Economic Development Agreement with ‘Project Bones’, in the amount of $6 million 4 Orlando College of Osteopathic Medicine 144,000sqft 145 Students/ Graduating Class Opened in Aug 2024 5 Hacienda Lakes MPUD Rattlesnake Hammock Rd & Cadenza Rd 5.08ac 6 Proposed Site Plan 7 Naples College of Osteopathic Medicine- Proposed Rendering 8 Naples College of Osteopathic Medicine- Proposed Rendering Approve and authorize the Chair to execute an Economic Development Agreement with Bay College of Osteopathic Medicine, LLC, in the amount of $6 million. 9 RECOMMENDATION 10 Backup Slides “Return on Investment” (ROI) is synonymous with economic benefit. It is most often used when a project is to be evaluated strictly on a monetary basis, and externalities and social costs and benefits—to the extent they exist—are excluded from the evaluation. The basic formula is: (Increase in Government Revenue – Government Investment) /Government Investment. If ROI > 1, the return to the Government produces more revenues than the total cost of the investment and vice versa. If positive ROI < 1, the program does not break even but generates enough revenues to recover a portion of the cost of the investment. If negative ROI the program does not recover any portion of the investment cost. Government revenues are less than they would have been in the absence of the program. This typically occurs because taxable activity is shifted to non-taxable activity. The Lightcast Impact scenario module provided estimates for the change in taxes as the estimate for increase in county revenue for the ROI calculation, and the county investment is total value of the incentive award. Over the first 13 years of the Baycollege project, ROI is expected to be +0.82 as the Government is projected to pay out $6 mn in EDA payments, and receive $10.9 mn in cumulative Government revenue. ($10.9M-$6M)/$6M = +0.82 ROI By year 33 the ROI is projected to increase to +2.6. ($21.4M-$6M)/$6M = +2.6 ROI Growth in Cumulative Gov rev decelerates after CO because during construction on top of property taxes the County receives permit/building fees which cease after CO- IRS receives employment taxes. In the OPEX stage the government revenues are mainly from property taxes and employment taxes). 11 ROI Explained 12 ROI Explained Timeline EDA Payment ($)Cumulative Gov Rev Construction 2026 0 2,523,598 Construction 2027 0 5,047,196 CO 1,000,000 5,576,093 Anniversary 1 500,000 6,104,990 Anniversary 2 500,000 6,633,887 Anniversary 3 500,000 7,162,784 Anniversary 4 500,000 7,691,681 Anniversary 5 500,000 8,220,578 Anniversary 6 500,000 8,749,475 Anniversary 7 500,000 9,278,372 Anniversary 8 500,000 9,807,269 Anniversary 9 500,000 10,336,166 Anniversary 10 500,000 10,865,063 Anniversary 11 0 11,393,960 Anniversary 12 0 11,922,857 Anniversary 13 0 12,451,754 Anniversary 14 0 12,980,651 Anniversary 15 0 13,509,548 Anniversary 16 0 14,038,445 Anniversary 17 0 14,567,342 Anniversary 18 0 15,096,239 Anniversary 19 0 15,625,136 Anniversary 20 0 16,154,033 Anniversary 21 0 16,682,930 Anniversary 22 0 17,211,827 Anniversary 23 0 17,740,724 Anniversary 24 0 18,269,621 Anniversary 25 0 18,798,518 Anniversary 26 0 19,327,415 Anniversary 27 0 19,856,312 Anniversary 28 0 20,385,209 Anniversary 29 0 20,914,106 Anniversary 30 0 21,443,003 6,000,000 Cumulative Gov Revenue- Payment Cashflow ROI = +0.82 ROI = +2.6 NCHCOM - County Commissioners Meeting 11 .10.2025 Dr Robert Hasty DO, MACOI, FACP Phil Zaveri Matthew Holliday Richard D. Yovanovich Site Location NCHCOM Overview NCHCOM is a proposed four-year Doctor of Osteopathic Medicine (DO) program to be located in Naples, Florida , in affiliation with the NCH Healthcare System. The school will scale to 180 students per class, reaching ~720 students total across all four years. The college is being established to expand the physician workforce in Southwest Florida , with a focus on primary care, community- based specialties, and compassion-centered, whole-person care aligned with osteopathic philosophy. Operations will be supported by a state-of-the-art , 110,000-square-foot academic facility, purpose-built to foster innovation in medical education and community engagement . Construction For Medical School Begins May 2026 Achieve Candidate Status Fall 2026 Achieve Pre-Accreditation Status / Start Student Interviews Fall 2027 Building Complete December 2027 Inaugural Class Begins Instruction August 2028 Inaugural Cohort Graduates. Full Programmatic Accreditation May 2032 Timeline Economic Impact Projected Impact over the next 25 Years Construction $65.0 M Annual Operation Impacts $128M Work Force Impacts $1 .4B Private Spin-off Impacts $200M $1 .7B Total Impact ~9,000 Jobs Created Over 25 Years & ~$87M In Regional Government Revenue PROJECTIONS From 2026-2028 ~$2.6M in taxes and ~338 Jobs from Construction Activities By 2035 ~$100M From Research Activity When Fully Operational (2032) ~345 Jobs & ~$3M in Taxes From Operations Economic Impact 2026-2027 2028 2032 2035 2050 Renderings Concept Drawings Site Plan ORIGINAL DOCUMENTS CHECKLIST & ROUTING SLIP 1 E TO ACCOMPANY ALL ORIGINAL DOCUMENTS SENT TO THE BOARD OF COUNTY COMMISSIONERS OFFICE FOR SIGNATURE Print on pink paper. Attach to original document. The completed routing slip and original documents are to be forwarded to the County Attorney Office at the time the item is placed on the agenda. All completed routing slips and original documents must be received in the County Attorney Office no later than Monday preceding the Board meeting. **NEW** ROUTING SLIP Complete routing lines#1 through#2 as appropriate for additional signatures,dates,and/or information needed. If the document is already complete with the exception of the Chairman's signature,draw a line through routing lines#1 through#2,complete the checklist,and forward to the County Attorney Office. Route to Addressee(s) (List in routing order) Office Initials Date 1. 2. Priscilla Doria Housing Policy & Economic PD 11/10/25 Development 3 County Attorney Office County Attorney Office (061 In , 13i -')/(C/ 4. BCC Office Board of County Commissioners iv qv 5. Minutes and Records Clerk of Court's Office ////f7015 PRIMARY CONTACT INFORMATION Normally the primary contact is the person who created/prepared the Executive Summary. Primary contact information is needed in the event one of the addressees above,may need to contact staff for additional or missing inormation. 239-252-2413 Name of Primary Staff Priscilla Doria I Phone Number Contact/Department Agenda Date Item was November 10,2025 Agenda Item Number 11.E. Approved by the BCC Type of Document Economic Development Agreement_Bay Number of Original 1 Attached College of Osteopathic Medicine, LLC Documents Attached PO number or account Email Fully executed copy to: number if document is Priscilla.DoriaAcolliercountvfl.gov to be recorded INSTRUCTIONS & CHECKLIST Initial the Yes column or mark"N/A" in the Not Applicable column,whichever is Yes N/A(Not appropriate. (Initial) Applicable) 1. Does the document require the chairman's original signature? N/A 2. Does the document need to be sent to another agency for additional signatures? If yes, N/A provide the Contact Information(Name;Agency; Address; Phone)on an attached sheet. 3. Original document has been signed/initialed for legal sufficiency. (All documents to be PD signed by the Chairman,with the exception of most letters,must be reviewed and signed by the Office of the County Attorney. 4. All handwritten strike-through and revisions have been initialed by the County Attorney's PD Office and all other parties except the BCC Chairman and the Clerk to the Board - 5. The Chairman's signature line date has been entered as the date of BCC approval of the PD document or the final negotiated contract date whichever is applicable. 6. "Sign here"tabs are placed on the appropriate pages indicating where the Chairman's PD signature and initials are required. 7. In most cases(some contracts are an exception),the original document and this routing slip N/A should be provided to the County Attorney Office at the time the item is input into SIRE. Some documents are time sensitive and require forwarding to Tallahassee within a certain time frame or the BCC's actions are nullified. Be aware of your deadlines! 8. The document was approved by the BCC on 11/10/2025 and all changes made during pp N/A is not the meeting have been incorporated in the attached document. The County an option for Attorney's Office has reviewed the changes,if applicable. this line. 9. Initials of attorney verifying that the attached document is the version approved by the N/A is not BCC,all changes directed by the BCC have been made, and the document is ready for th an option for Chairman's signature. this line, I:Forms/County Forms/BCC Forms/Original Documents Routing Slip WWS Original 9.03.04,Revised 1.26.05,Revised 2.24.05;Revised 11/30/12 1 1 E ECONOMIC DEVELOPMENT AGREEMENT This Economic Development Agreement (hereinafter referred to as "Agreement") is entered into this 10 ' day of(,vend, 2025, by and between Collier County, a political subdivision of the State of Florida, through its Board of County Commissioners (hereinafter referred to as the"County"), and Bay College of Osteopathic Medicine,LLC,a Limited Liability Corporation (hereinafter referred to as "Bay College"),whose address is 5600 Mariner Street, Suite 227, Tampa Florida 33609. RECITALS: WHEREAS, Collier County enjoys broad Home Rule Powers, which include the authority to enter into agreements to enhance economic development within the County; and WHEREAS,Florida Statute Sec. 125.045 expressly provides that"The governing body of a county may expend public funds to attract and retain business enterprises, and the use of public funds toward the achievement of such economic development goals constitutes a public purpose. The provisions of this chapter which confer powers and duties on the governing body of a county, including any powers not specifically prohibited by law which can be exercised by the governing body of a county,must be liberally construed in order to effectively carry out the purposes of this section;"and further that"it constitutes a public purpose to expend public funds for economic development activities,including,but not limited to,developing or improving local infrastructure, issuing bonds to finance or refinance the cost of capital projects for industrial or manufacturing plants, leasing or conveying real property, and making grants to private enterprises for the expansion of businesses existing in the community or the attraction of new businesses to the community;" and WHEREAS,Bay Cdlege is in the process of acquiring property to build a medical school j' within the Hacienda Lakes PUD (hereinafter the"Facility"); and. WHEREAS, Bay College anticipates this Facility will generate over 100 jobs; and [23-M0R-00383/1 8 1 1 433/1J Page 1 CA 0 Page 2116 of 6525 1 1 E WHEREAS, Bay College will offer at least 20 scholarships to Collier County residents on a needs basis; and WHEREAS, the Board expressly finds that the development and opening of this Facility will result in substantial economic benefits to the County, NOW, THEREFORE, in consideration of the foregoing Recitals, and other good and valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged, the Parties agree as follows: 1. The foregoing Recitals are true and correct and are incorporated by reference herein, 2. The Board finds that this Facility will strengthen the local economy of Collier County by expanding job opportunities related to the health industry with the goal of diversifying our employment and tax base to be more sustainable and resilient. Bay College has represented(1) that the Facility will require$170 million in capital commitments; (2)that they are partnered with a local healthcare system; (3) that they would construct the building to house the College of Medicine which would open for students by 2028.They anticipate that the first student class would be in clerkship at local healthcare facilities by 2030 and graduating in 2032. 3. The Board hereby agrees to assist Bay College with this Facility with a grant after the construction phase of the Facility totaling$6 million as follows: A. $1,000,000 paid to Bay College upon 1)completion of construction; 2)issuance of a final certificate of occupancy of the Facility; and 3) verification that the Facility is operational and licensed for its intended use as a medical school;and B. $500,000 payable on the first anniversary of the issuance of the final certificate of occupancy and annually thereafter for a total of ten years, 4. All payments are conditioned on the Facility remaining open, operational, being utilized for its intended use as a medical school, and remaining current on all local taxes, if any. Additionally, Bay College shall not convert, reorganize, or otherwise become a nonprofit or tax- exempt entity until it has paid at least $6,000,000 in ad valorem property taxes for the property 123•MGR-003 8 3/1 8 1 143 3/1] Page 2 Page 2117 ofi 525 1 1 E where the Facility is located, If Bay College seeks to convert to a nonprofit or tax-exempt entity before reaching the $6,000,000 property tax threshold, it must first repay to the County all funds previously disbursed under this Agreement. Failure to meet these conditions shall result in the suspension of future payments and may require repayment of any funds previously disbursed, Legal Matters 5. Except as otherwise provided herein,this Agreement shall only be amended by mutual written consent of the parties hereto or by their successors in interest. All notices and other communications required or permitted hereunder shall be in writing and shall be sent by Certified Mail, return receipt requested, or by a nationally recognized overnight delivery service, and addressed as follows: To County: To: Bay College of Osteopathic Medicine,LLC Collier County Harmon Turner Building c/o Aureate Group LLC 5600 Mariner Street 3299 Tamiami Trail E., Suite 200 Suite 227 Tampa,FL 33609 Naples, Florida 34112 Attn: County Manager Attn: Chad Toujague ( Notice shall be deemed to have been given on the next successive business day to the date of the courier waybill if sent by nationally recognized overnight delivery service. 6. This Agreement constitutes the entire agreement between the parties with respect to the activities noted herein and supersedes and takes the place of any and all previous agreements entered into between the parties hereto relating to the transactions contemplated herein. All prior representations, undertakings, and agreements by or between the parties hereto with respect to the subject matter of this Agreement are merged into, and expressed in, this Agreement, and any and all prior representations, undertakings, and agreements by and between such parties with respect thereto hereby are canceled, (23-MGR-00383/1811433/1j Ange 3 0 1 Page 2118 of 6525 1 1 E 7, Nothing contained herein shall be deemed or construed to create between or among any of the parties any joint venture or partnership nor otherwise grant to one another the right, authority or power to bind any other party hereto to any agreement whatsoever. 8. This Agreement shall be governed by the laws of Florida. In the event state or federal laws are enacted after the execution of this Agreement, which are applicable to and preclude in whole or in part the parties' compliance with the terms of this Agreement, then in such event this Agreement shall be modified or revoked as is necessary to comply with such laws, in a manner which best reflects the intent of this Agreement. 9. Bay College shall execute this Agreement prior to it being submitted for approval by the Board of County Commissioners. This Agreement shall be recorded by the County in the Official Records of Collier County, Florida, within fourteen (14) days after the County enters into this Agreement. The County shall pay all costs of recording this Agreement. The County shall provide a copy of the recorded document to Bay College upon request. 10. In the event of a dispute under this Agreement, either party may file an action for relief in the Circuit Court of Collier County as the sole and exclusive venue for any dispute arising under this Agreement to enforce the terms of this Agreement, said remedy being cumulative with any and all other remedies available to the parties for the enforcement of this Agreement,with the prevailing party entitled to all costs and expenses associated with such suit, including reasonable attorney's fees. Remainder of Page Intentionally Left Blank Signature Page to Follow II [23-MGR-00383/I811433/1J Page 4 Page 211C4f'525 1 1 E IN WITNESS WHEREOF, the Parties have executed this Agreement on the date and year first above written. 9i).4 90 ATTE �\ P• .. 0� S, ' Crystal'K °%inzel,ct rk of Courts BOARD OF COUNTY COMMISSIONERS COLLIE OUNTY, FLORIDA B � ,� By: , "Or419/10°"" - ; Deputy Clerk urt L. Saunders, Chairman Attestas to airman's signature only Approved a OP•rm . legality: Jeffrey A. 7 kow, County At...,0. Niro j \ As to Bay College of steopathic Medicine, LLC, By: Signa e P1,1! /.(' Printed Name Title: • STATE OF FLORIDA COUNTY OF 4 VARoi- t A The foregoing Agreement was acknowledged before me by.r9eans ofphysical presence or o online notarization this y day of , 2025, by 'ZA-✓ (name),MA+ c te... (title) on behalf of Bay College of Osteopathic Medicine, LLC, who isa personally known to me or ❑ has produced as proof o identity. [NOTARIAL SEAL] Signature of Persong Acknowledgment .• — — 1 ;toter/Public State of Florida I A Chad 7quJague 1 tul6,9 MyNH 237068 Exp. 3/7/2026 '" • [23•MGR-00383/1811433/1J Page 5 0 Page 212d° f 6525 1 1 E DESCRIPTION OF FACILITY AND PARCEL FACILITY; A medical school of approximately 108,000 square feet initially located within the Hacienda Lakes PUD PARCEL: An approximate 5-acre lot at the Cadenza at Hacienda Lakes Tract A and Tract B as shown below Morerrr +iuwaat M'rn.,W.lutk HAteme•cot*GAD 4a'( 'tt 1., I * : » 9 > emei u. •' «tee wwr 4 E ocuu ttadosF <3' '� �' t �• 1+ 1.y+ ..--M9.H- ?f vl+ �,i t V1 1 J j ail I * 1 / A•� uun».a I M�Y� u•I MMH r i"..� *,�:.�`.f..}: rw ti,,•u ARa+mtcruw►s aIl'e ruw 123-MGR-0038311811433/11 Page 6