Agenda 01/26/2016 Item #16E 5 1/26/2016 16.E.S.
EXECUTIVE SUMMARY
Recommendation to approve a Lease Agreement with Horseshoe Drive Development, LC for space
to be utilized by the Growth Management Department.
OBJECTIVE: To accommodate staff space requirements for the Growth Management Department
(GMD).
CONSIDERATION: Over the past two years, the Board of County Commissioners approved several
agenda items adding approximately 68 expanded positions within GMD. Since 2012, GMD has provided
space for the Hearing Examiner's Office, Pollution Control, and Coastal Zone Management staff, and
despite reconfiguring conference rooms and converting larger offices/cubicles into smaller
offices/cubicles, with the addition of these expanded positions over the past two years, the GMD North
Horseshoe building has limited space for growth.
Located within walking distance from the GMD building on Horseshoe Drive North is an office building
known as Horseshoe Square. At one time, the County leased spaced within this same building for
Transportation,Utility Billing, IT, Stormwater, and EMS.
The subject office, totaling 7,203 square feet, is located on the first floor of the two-story building located
at 2685 Horseshoe Drive South. The landlord has agreed to provide new carpeting, new paint, and a new
air-conditioning system at his cost. The rent, which includes Common Area Maintenance fees (CAM), is
$14 per square foot, with an annual rent increase of four percent. The rent is below market value for this
type of space and, with the inclusion of CAM, offers a good value to the County. The only additional
expenses incurred by the County are for telephone/communications, electric, and general janitorial; all
other charges are included in the rent. The lease is for an initial period of three(3)years with an option to
automatically renew annually thereafter. Due to the extent of the improvements and the below market
rent, the Lessor requires a minimum three year commitment with termination allowed, upon 90 days'
notice, any time after the initial term of the lease.
FISCAL IMPACT: The annual rent of$100,842, to be paid in equal monthly installments of$8,403.50,
and monthly utility charges to the appropriate companies, shall be withdrawn from (113) Community
Development, (131)Planning Services.
GROWTH MANAGEMENT: There is no Growth Management Impacts associated with this Executive
Summary.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to
form and legality, and requires majority vote for approval. -JAK
RECOMMENDATION: That the Board of County Commissioners approves the attached Lease
Agreement and authorizes its Chairman to execute same.
PREPARED BY: Michael Dowling, Senior Property Management Specialist
Division of Facilities Management
Attachments:
1. Lease Agreement
2. Business Case
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COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.E.16.E.5.
Item Summary: Recommendation to approve a Lease Agreement with Horseshoe
Development, LC for space to be utilized by the Growth Management Department.
Meeting Date: 1/26/2016
Prepared By
Name: DowlingMichael
Title: Property Management Specialist, Senior, Administrative Services Department
10/5/2015 1:51:26 PM
Submitted by
Title: Property Management Specialist, Senior, Administrative Services Department
Name: DowlingMichael
10/5/2015 1:51:27 PM
Approved By
Name: JonesHank
Title: Project Manager,Principal, Administrative Services Department
Date: 10/5/2015 5:19:45 PM
Name: Mott Toni
Title: Manager-Property Acquisition&Const M, Administrative Services Department
Date: 10/6/2015 8:19:19 AM
Name: pochopinpat
Title: Operations Coordinator, Administrative Services Department
Date: 10/6/2015 8:58:49 AM
Name: KovenskyKenneth
Title: Division Director-Operations Support, Growth Management Department
Date: 10/6/2015 9:04:08 AM
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1/26/2016 16.E.5.
Name: FrenchJames
Title: Deputy Department Head-GMD, Growth Management Department
Date: 1/12/2016 11:07:44 AM
Name: PriceLen
Title: Department Head -Administrative Svc, Administrative Services Department
Date: 1/15/2016 9:28:20 AM
Name: KlatzkowJeff
Title: County Attorney,
Date: 1/15/2016 11:01:42 AM
Name: KlatzkowJeff
Title: County Attorney,
Date: 1/15/2016 11:27:08 AM
Name: WellsLaura
Title: Management/Budget Analyst, Senior, Office of Management&Budget
Date: 1/15/2016 1:3 9:42 PM
Name: IsacksonMark
Title: Division Director-Corp Fin &Mgmt Svc. Office of Management&Budget
Date: 1/15/2016 2:14:22 PM
Name: CasalanguidaNick
Title: Deputy County Manager, County Managers Office
Date: 1/15/2016 3:05:58 PM
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Lease #
LEASE AGREEMENT
THIS LEASE AGREEMENT entered into this day of
2016, between Horseshoe Development, L.C., c/o Pelconcepts, Inc., whose mailing address is 650 15t'
Avenue South,Naples, Florida 34102,hereinafter referred to as "LESSOR", and COLLIER COUNTY, a
political subdivision of the State of Florida, whose mailing address is 3335 East Tamiami Trail, Naples,
Florida 34112,hereinafter referred as "LESSEE".
WITNES SETH
In consideration of the mutual covenants contained herein, and other valuable consideration, the
parties agree as follows:
ARTICLE 1. Demised Premises
LESSOR hereby leases to LESSEE and LESSEE hereby leases from LESSOR the property
described as 2685 Horseshoe Square, Units 103, 104 and 105,Naples Florida,totaling 7,203 square feet,
hereinafter referred to as the "Demised Premises," as shown on Exhibit `A' which is attached hereto and
made a part hereof this Lease Agreement ("Lease"), for the sole purpose of operating a government
office.
ARTICLE 2. Term of Lease
LESSEE shall have and hold the Demised Premises for a term of three (3)years, commencing on
February 1, 2016 and ending January 31,2019,hereinafter referred to as the "Initial Term".
LESSEE is granted the option, provided it is not in default of any of the terms of this Lease, to
automatically renew this Lease annually following the Initial Term, under the terms and conditions as
provided herein.
LESSEE reserves the right to terminate this Lease, at any time following the Initial Term, by
providing the LESSOR with ninety (90) days prior written notice of such termination to the address set
forth in ARTICLE 14 of this Lease. Said notice period shall be effective upon placement of the written
notice in an official depository of the United States Post Office, Registered or Certified Mail, Postage
Prepaid.
ARTICLE 3. Rent
LESSEE hereby covenants and agrees to pay as rent, which includes Common Area Maintenance
("CAM") charges, for the Demised Premises, the sum of One Hundred Thousand Eight Hundred Forty-
Two Dollars and No Cents ($100,842.00) per annum in equal monthly installments of Eight Thousand
Four Hundred Three Dollars and Fifty Cents ($8,403.50) each. LESSOR acknowledges that LESSEE
shall not provide LESSOR with any security deposit.
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All rental payments shall be due payable in advance on the first day of every calendar month
during the term hereof. If the terms of this Lease shall commence on a day other than the first day of the
month, LESSEE shall pay rental equal to one thirtieth (1/30th) of the monthly rental multiplied by the
number of rental days of such fractional month.
ARTICLE 4. Renewal Term Rent
Following the first full year of tenancy, the annual rental amount shall increase by four (4)
percent, compounded,for each ensuing year thereafter and any renewal terms thereof.
ARTICLE 5. Other Expenses and Charges
LESSOR shall be responsible for all costs associated with the operation and maintenance of the
air-conditioning/heating, electrical and lighting systems, plumbing system, and pest control at the
Demised Premises.
LESSEE shall be responsible for the procurement and the payment of electric and
communications utilities and those monthly charges, and janitorial services used, rendered or supplied
thereupon or in connection with the Demised Premises.
LESSEE shall be responsible for any minor plumbing and electrical maintenance issues,
including light bulbs and light ballasts, at the Demised Premises caused by LESSEE'S occupancy and
use thereto, as well as the cost of the installation, repair and maintenance of any additional electrical
outlets or power poles, other than those provided by LESSOR in the existing space, needed by LESSEE
for its office configuration and operation.
ARTICLE 6. Modifications to Demised Premises
Prior to making any changes, alterations, additions or improvements to the Demised Premises,
LESSEE will provide to LESSOR all proposals and plans for alterations, improvements, changes or
additions to the Demised Premises for LESSOR'S written approval, specifying in writing the nature and
extent of the desired alteration, improvement, change, or addition, along with the contemplated starting
and completion time for such project. LESSOR or its designee will then have sixty (60) days within
which to approve or deny in writing said request for changes, improvements, alterations or additions.
LESSOR shall not unreasonably withhold its consent to required or appropriate alterations,
improvements, changes or additions proposed by LESSEE. If after sixty (60) days there has been no
response from LESSOR or its designee to said proposals or plans, then such silence shall be deemed as
an approval to such request of LESSEE.
LESSEE covenants and agrees in connection with any maintenance, repair work, erection,
construction, improvement, addition or alteration of any authorized modifications, additions or
improvements to the Demised Premises,to observe and comply with all then and future applicable laws,
ordinances,rules, regulation, and requirements of the United States of America, State of Florida, County
of Collier, and any and all governmental agencies.
All alterations, improvements, and additions made to the Demised Premises shall at once, when
installed, be deemed as attached to the freehold and to have become property of LESSOR. Prior to the
termination of this Lease or any renewal term thereof, or within ten (10) days thereafter, if LESSOR so
directs, LESSEE shall promptly remove the additions, improvements, alterations, fixtures and
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installations which were placed in, on or upon the Demised Premises by LESSEE and which are
designated in said notice, and repair any damage occasioned to the Demised Premises by such removal
and in default thereof,LESSOR may complete said removals and repairs at LESSEE'S expense.
LESSEE covenants and agrees not to use, occupy, suffer or permit said Demised Premises or an
�' � PY� P any
part thereof to be used or occupied for any purpose contrary to law or the rules or regulations of any
public authority.
ARTICLE 7. Access to Demised Premises
LESSOR, its duly authorized agents, representatives and employees, shall have the right after
reasonable notice to LESSEE, to enter into and upon the Demised Premises or any part thereof at all
reasonable hours for the purpose of examining same and making repairs or janitorial service therein,and
for the purposes of inspection for compliance with the provisions of this Lease.
ARTICLE 8. Assignment and Subletting
LESSEE covenants and agrees not to assign this Lease or to sublet the whole or any part of the
Demised Premises to any entity other than a County agency, or to permit any other persons to occupy
same without the written consent of LESSOR. Any such assignment or subletting,even with the consent
of LESSOR, shall not relieve LESSEE from liability for payment of rent or other sums herein provided
or from the obligation to keep and be bound by the terms, conditions and covenants of this Lease. The
acceptance of rent from any other person shall not be deemed to be a waiver of any of the provisions of
this Lease or to be a consent to the assignment of this Lease or subletting of the Demised Premises. The
LESSOR reserves the right to assign this Lease subject to the term of the Lease.
ARTICLE 9. Insurance
The LESSEE will at all times carry comprehensive general liability insurance to include bodily
injury in an amount not less than the sum of One Million Dollars and 00/100 Cents ($1,000,000.00)
single occurrence. The cost of all such premiums on all such policies shall be paid and borne by the
LESSEE insuring LESSOR and LESSEE against any liability arising out of the use, occupancy or
maintenance of the Demised Premises, including loss of income. The insurance policy or policies shall
contain provisions prohibiting the modification or cancellation of insurance without at least thirty (30)
days prior written notice to LESSOR. LESSEE shall deliver said policies or certificates thereof to
LESSOR prior to LESSEE'S occupancy of the Demised Premises, and thereafter, renewal policies or
certificates shall be delivered to LESSOR not less than thirty (30) days prior to expiration. The limit of
any such insurance shall not limit the liability of LESSEE hereunder. LESSEE may provide this
insurance under a blanket policy provided said insurance shall have a LESSOR'S protective liability
endorsement attached thereto.
ARTICLE 10. Claims Arising from LESSEE'S Use of Premises
To the extent permitted in Florida Statute, 768.28, LESSEE shall indemnify and hold LESSOR
harmless against and from any and all claims arising from LESSEE'S use of the Premises, or from the
conduct of its business, or from any activity, or work done, permitted or suffered in or about the
Demised Premises, and LESSEE shall further indemnify and hold LESSOR harmless against and from
any and all claims arising from any act or negligence of LESSEE, its officers, agents, employees, guest
or invitees. If any action or proceeding is brought against LESSOR by reason of such claim, LESSEE,
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upon notice from LESSOR, shall defend the same at LESSEE'S expense by counsel reasonably
satisfactory to LESSOR. LESSEE shall give prompt notice to LESSOR in case of casualty or accidents
in or about the Demised Premises.
LESSOR shall indemnify and hold LESSEE harmless against and from any and all claims arising
from LESSOR'S use of the Premises, or from the conduct of its business, or from any activity, or work
done,permitted or suffered in or about the Demised Premises, and LESSOR shall further indemnify and
hold LESSEE harmless against and from any and all claims arising from any act or negligence of
LESSOR, its officers, agents, employees, guest or invitees. If any action or proceeding is brought
against LESSEE by reason of such claim,LESSEE,upon notice from LESSOR, shall defend the same at
LESSOR'S expense by counsel reasonably satisfactory to LESSEE.
ARTICLE 11. Maintenance
LESSEE shall, at its sole cost and expense,keep the Demised Premises clean at all times. If said
Demised Premises are not kept clean in the opinion of LESSOR, LESSEE'S manager will be so advised
in writing. If corrective action is not taken within thirty(30) days of the receipt of such notice, LESSOR
will cause same to be cleaned and corrected and LESSEE shall assume and pay all necessary cleaning
costs and such costs shall constitute additional rent which shall be paid by LESSEE within thirty (30)
days of receipt of written notice of costs incurred by LESSOR.
ARTICLE 12. Default by Lessee
Failure of LESSEE to comply with any provision or covenant of this Lease shall constitute a
default, and LESSOR may, at LESSOR'S option,terminate this Lease after sixty(60) days written notice
to LESSEE, unless the default be cured within the notice period(or such additional time as is reasonably
required to correct such default). Subject to LESSEE'S good faith effort to correct such default.
ARTICLE 13. Default by Lessor
LESSOR shall in no event be charged with default in the performance of any of its obligations
hereunder unless and until LESSOR shall have failed to perform such obligations within ninety (90)
days (or such additional time as is reasonably required to correct such default) after notice to LESSOR
by LESSEE properly specifying wherein LESSOR has failed to perform any such obligations.
ARTICLE 14. Notices
Any notice which LESSOR or LESSEE may be required to give to the other party shall be in
writing to the other party at the following addresses:
LESSEE: LESSOR:
Property Management Specialist Horseshoe Square Development,L.C.
Real Property Management c/o Pelconcepts, Inc.
3335 East Tamiami Trail, Suite 101 650 15th Avenue South
Naples,Florida 34112 Naples,Florida 34102
cc: Administrator, Growth Management
Department
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ARTICLE 15. Surrender of Premises
LESSEE covenants and agrees to deliver up and surrender to LESSOR possession of the
Demised Premises upon expiration of this Lease, or its earlier termination as herein provided, broom
clean and in as good condition and repair as the same shall be at the commencement of the term of this
Lease or may have been put by LESSOR or LESSEE during the continuance thereof, ordinary wear and
tear and damage by fire or the elements beyond LESSEE'S control excepted.
ARTICLE 16. General Provisions
LESSEE fully understands that the police and law enforcement security protection provided by
law enforcement agencies to the Demised Premises is limited to that provided to any other business or
agency situated in Collier County, and LESSOR acknowledges that any special security measures
deemed necessary for additional protection of the Demised Premises shall be the sole responsibility and
cost of LESSEE and shall involve no cost or expense to LESSOR
LESSEE expressly agrees for itself, its successor and assigns, to refrain from any use of the
Demised Premises which would interfere with or adversely affect the operation or maintenance of
LESSOR'S standard operations where other operations share common facilities.
ARTICLE 17. Radon Gas
In compliance with Section 404.056, Florida Statutes, all parties are hereby made aware of the
following:
Radon is a naturally occurring radioactive gas that, when it has accumulated in a building in
sufficient quantities, may present health risks to persons who are exposed to it over time. Levels of
radon that exceed federal and state guidelines have been found in buildings in Florida Additional
information regarding radon and radon testing may be obtained from your County Public Health
Department.
ARTICLE 18. Effective Date
This Lease shall become effective upon execution by both LESSOR and LESSEE.
ARTICLE 19. Governing Law
This Lease shall be governed and construed in accordance with the laws of the State of Florida.
(Signatures appear of the following page.)
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IN WITNESS WHEREOF,the parties hereto have hereunder set forth their hands and seals.
AS TO THE LESSOR:
DATED: HORSESHOE SQUARE DEVELOPMENT,L.C.
By: Pelconcepts,Inc.,its managing member
ATTEST:
BY:
Antoinette Pelc, Secretary W.VINCE PELC,President
AS TO THE LESSEE:
DATED: BOARD OF COUNTY COMMISSIONERS,
COLLIER COUNTY,FLORIDA
ATTEST:
DWIGHT E. BROCK, Clerk
BY: BY:
Deputy Clerk DONNA FIALA, CHAIRMAN
Approved as to form and legality:
Jeffrey A. Klatzkow, County Attorney
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•
Exhibit `A'
2685 Horseshoe Drive South
Units 103,104 and 105
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Co er COUntY
Growth Management Department
Operations & Regulatory Management Division
Business Case
Objective:
To lease additional office space for the Growth Management Department, North Horseshoe Drive
building (GMD), at Horseshoe Square, 2685 South Horseshoe Drive, Naples, Collier Park of Commerce.
The lease consists of a 5-year term with an option to cancel after 3 years, and will have a first year fiscal
impact of$100,842.
Considerations:
Over the past two years, the Board of County Commissioners approved several agenda items approving
68 expanded positions within the GMD. GMD has provided space for the Hearing Examiner's Office,
Pollution Control, and the Coastal Zone Management staff since 2012 and even though an effort has
been made to reconfigure conference rooms and larger offices/cubicles into smaller offices/cubicle,
with the addition of expanded positions over the past two years the GMD North building has limited
space for growth. There are a total number of 286 workspaces at GMD North and fewer than 10
workspaces are vacant. Approximately 20 FTE and job bank positions are currently in the process of
being filled.
The subject office, totaling 7,203 square feet, is located on the first floor of the two-story building
located at 2685 Horseshoe Drive South. The landlord has agreed to provide new carpeting, new paint,
and a new air-conditioning system at his cost. The rent,which includes Common Area Maintenance fees
(CAM), is $14 per square foot, with an annual rent increase of four percent. The rent is below market
value for this type of space, and with the inclusion of CAM, it is a very good opportunity for the County.
The only expenses the County will be required to pay will be for telephone/communications, electric,
and general janitorial; all other charges are paid for by the landlord. The lease includes an early
termination provision allowing the County to terminate the lease, at any time, following the third year
of occupancy, by providing 90 days written notice to the landlord. The reasoning for termination after
the third year is to secure the landlord with his improvement costs and below market rent amount.
Location:
The lease space is located within walking distance from the GMD building on North Horseshoe Drive,
and includes parking in the front and rear of the building. The County previously leased spaced within
this same building for Transportation, Utility Billing, IT, Stormwater, and EMS.
Interior:
Potential configuration may include a minimum of eight offices, 15-20 cubicles depending on size,
reception area, conference room(s),storage, rest rooms, and break rooms.
Relocation of Staff:
Currently, the recommended staff to be relocated to the new office space consists of the following
business sections: Coastal Zone, Pollution Control, Stormwater, and Transportation Planning.
Operations&Regulatory Management Division•2800 North Horseshoe Drive•Naples.Ronda 34104.239-252-2400 •www.colliergov.net
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1/26/2016 16.E.5.
It is anticipated that this will be a temporary move, not to exceed 5 years; however, the lease can be
terminated after 3 years. The Growth Management Department will work with Facilities Management
to determine the costs and space requirements involved in expanding the current office space located at
2800 North Horseshoe Drive, Naples, FL 34104. Other options currently under consideration are to
renovate the existing building at 2800 N. Horseshoe Drive to include a second floor, or constructing an
alternative location for a satellite campus location. Funds have already been budgeted in FY16 for
capital expansion in Funds 113 and 131.
Fiscal Impact:
The first year's annual rent of$100,842 is to be paid in equal monthly installments of$8,403.50.
Payments will be required for electrical and communications utilities, minor plumbing maintenance,
janitorial services, and the like.
The purchasing of office furniture and other associated costs are anticipated to be $75,000. This would
encompass the interior space requirements: reception area, conference room(s), a minimum of 8
offices, 15-20 cubicles, storage, rest rooms and break room(s).
With Coastal Zone and Pollution Control being two of the occupants of the new space, the rent they
currently pay towards Fund 113 would cover 25%of the total annual rent:
Coastal Zone $10,000
Pollution Control $16,300
The remaining amount will be covered by Fund 131 for FY16. For the FY17 budget, funds would be
appropriated according to where the occupants are funded.
Timin :
1. Executive Summary presented to the Board of County Commissioners:January 2016.
2. Lease Start Date: February 2016.
3. Staff Relocation Date: approximately 2-3 months following BCC approval.
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See below for floor plan for Horseshoe Square, 2685 South Horseshoe Drive, Naples,and Collier Park
of Commerce:
Floor plan for Horseshoe Square, 2685 South Horseshoe Drive, Naples,
Collier Park of Commerce.
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