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Agenda 12/09/2025 Item #16B22 (Ratify the Third Addendum to Agreement for Sale and Purchase with Bigi & Bigi LLC for Court Plaza III)12/9/2025 Item # 16.B.22 ID# 2025-4882 Executive Summary Recommendation to: 1) ratify the Third Addendum to Agreement for Sale and Purchase with Bigi & Bigi LLC for Court Plaza III, a commercial condominium, located at 2671 Airport Road South, 2) acknowledge Collier County’s status as majority owner and, by operation of the condominium declaration and bylaws, its rights to assume control of the Association board of directors, 3) authorize actions related to association governance, the organizational meeting, and interim property management, and 4) authorize dismissal of the lawsuit filed against Bigi & Bigi, LLC, related to the acquisition. OBJECTIVE: To ratify the Third Addendum to Agreement for Sale and Purchase executed by the County Manager and to obtain direction so that Collier County, as majority owner, complies with Chapter 718, Florida Statutes and other applicable condominium law in managing the Court Plaza III Association to include maintaining the common elements and common areas, and administering Association funds in accordance with its fiduciary obligations. CONSIDERATIONS: On February 25, 2025 (Agenda Item 16B3), the Board of County Commissioners (“Board”) approved the purchase of fourteen commercial condominium units within Court Plaza III from Bigi and Bigi, LLC and authorized execution of the Agreement for Sale and Purchase. On that same day, the Board also approved the purchase of one commercial condominium unit from Joseph Stewart, PA. At the County Manager’s direction, the County Attorney’s Office filed legal action to compel Bigi & Bigi to close under the agreement, and the Board of County Commissioners later ratified that action. Third Addendum for Ratification: As the closing approached, a Third Addendum was needed to resolve several key points. The County Manager executed the Addendum due to the tight closing timeline. The Third Addendum addresses: 1. Association funds. Court Plaza III Association funds were maintained in multiple Wells Fargo accounts. Although the sale contract requires transfer to a County-controlled account, the funds, in the approximate amount of $159,000, have been consolidated into a single operating account at First Citizens Bank in the name of Court Plaza III Condominium Association, Inc., administered by May Management Services, Inc., the property management company. This structure complies with applicable condominium law, which prohibits commingling of association funds. The County, now as the majority owner, controls these funds. 2. Accessible parking. Exhibit B to the sales contract requires Bigi and Bigi, LLC to construct three additional accessible parking spaces. Plans were submitted to the Growth Management Division, and work began, but modifications are needed, and the spaces could not be completed before closing. In lieu of that obligation, the Third Addendum provides the County with a five-thousand-dollar credit from the Seller at closing. Even without the additional accessible spaces, the existing number of parking and accessible spaces meets LDC requirements. The three extra spaces were intended solely to provide added convenience. 3. Extension of closing deadline. The closing deadline was extended to November 26, 2025. Collier County’s Status as the Majority Owner and Association Governance Collier County, as the owner of fifteen of the eighteen commercial condominium units, holds a majority of the membership and voting interests in the Court Plaza III Condominium Association. Under Chapter 718, Florida Statutes, and the applicable declaration and bylaws, this majority ownership entitles the County to exercise voting control over the Association, including the election of the Board of Directors and the approval of budgets and assessments. It is recommended that the Board authorize the County Manager, or designee, to exercise the County’s voting rights as unit owner, to convene and conduct the Association organizational meeting, and to appoint three-members to the Association Board of Directors. At this organizational meeting, the new Board of Directors will address initial governance and operational priorities, Page 4669 of 9661 12/9/2025 Item # 16.B.22 ID# 2025-4882 including budget, management, and utilities. The Association currently has a property management contract with May Management Services, Inc., which the County Manager recommends continuing on an interim basis, and potentially through the current contract term, to ensure continuity of day-to-day operations while the new Board of Directors is seated. The Board of Directors will also provide direction on transferring the Association’s operating account to the County’s banking institution, First Foundation Bank, to facilitate oversight by the Collier County Clerk of the Circuit Court. Prior to closing, it was confirmed that the Association does not have its own water and sewer utility account and is instead receiving water service through a neighboring association’s account, without a written agreement. The Board of Directors will be asked to evaluate the situation and determine appropriate solutions to address the shared utility arrangement. The Association funds, subject to Board of Directors approval, may be used for the operation of the condominium, the maintenance, repair, and replacement of the common elements, utilities serving the common property, parking and access modifications, other lawful common-element improvements, reserves and capital projects, and any additional expenditures authorized by the governing documents. Acting through these directors, the County will manage Association governance and day-to-day decisions in accordance with Chapter 718 and the governing documents. The Association will continue to operate as a separate condominium association unless and until the County acquires the remaining office comprised of three units. When the County entered into the current purchase contracts, the owner of the sixteenth unit, Joseph Stewart, declined to sell it or grant the County an option or right of first refusal. Staff will continue to engage with Joseph Stewart, PA, to explore a sales contract that could meet both parties’ needs, such as a purchase with a lease-back to him. If the County acquires the final unit, the Association may be dissolved, and we will return to the Board with recommendations. Dismissal of the lawsuit filed against Bigi & Bigi, LLC The County previously filed a lawsuit against Bigi & Bigi, LLC to enforce its obligations under the sales contract for the Court Plaza III units. With the Board’s ratification of the Third Addendum and completion of closing on the units, staff and the County Attorney’s Office believe that Bigi & Bigi, LLC has now satisfied its contractual obligations to the County, including delivery of title and association funds. Remaining issues relate primarily to Association matters, including turnover of contracts, financial records, and other association documents, which are governed by Chapter 718, Florida Statutes. Staff will continue to work through May Management and the prior board of directors to obtain any outstanding documents. Accordingly, it is recommended that the Board of County Commissioners authorize dismissal of the lawsuit against Bigi & Bigi, LLC without prejudice. Dismissal without prejudice will resolve the current sales contract enforcement action while preserving the ability to pursue future legal remedies against the former Association representatives, including refiling an action if significant noncompliance with association obligations is later identified and cannot be resolved cooperatively. This item is consistent with the Collier County strategic plan objective to support access to health, wellness, and human services. FISCAL IMPACT: Ratification of the Third Addendum results in the County receiving a $5,000 credit applied to the purchase price of the units being acquired from Bigi & Bigi, LLC, which reduced the total purchase cost and cash due at closing by that amount. As acknowledged in the Addendum, approximately $159,000 in Association funds were transferred to the Association’s operating account; these funds will be maintained separately from County funds and used by the Association Board of Directors for operation, maintenance, and improvements to the building and common elements. Page 4670 of 9661 12/9/2025 Item # 16.B.22 ID# 2025-4882 Following the closing, tenants in the units acquired by the County were notified that all future rent payments are to be made to Collier County. Rental income from these units will be deposited within the General Fund. Each unit owner remains responsible for payment of its share of Association assessments. Association assessments attributable to the County-owned units will be the County's responsibility and paid from appropriate funding sources. All assessments collected will be deposited into the Association’s operating account at First Citizens Bank and used for Association purposes, consistent with Chapter 718, Florida Statutes, and the governing documents. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this action. LEGAL CONSIDERATIONS: This item has been reviewed for form and legality and requires a majority vote for Board action - SAA RECOMMENDATION(S): That the Board: 1) ratify the Third Addendum to Agreement for Sale and Purchase with Bigi & Bigi LLC for Court Plaza III, a commercial condominium, 2) acknowledge Collier County’s status as majority owner and, by operation of the condominium declaration and bylaws, its rights to assume control of the Association board of directors, 3) authorize actions related to association governance, the organizational meeting, and interim property management, and 4) authorize dismissal of the lawsuit filed against Bigi & Bigi, LLC, related to the acquisition, all as more fully described in the Consideration portion of this Executive Summary. PREPARED BY: Jennifer A. Belpedio, Manager, Operations & Performance Management Division, Transportation Management Services Department ATTACHMENTS: 1. Seller & County Manager Signed Third Addendum To Agreement For Sale And Purchase Page 4671 of 9661 Page 4672 of 9661 Page 4673 of 9661