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Agenda 05/24/2016 Item #16E 6 5/24/2016 16.E.6. EXECUTIVE SUMMARY Recommendation to approve a First Amendment to Lease Agreement with Horseshoe Drive Development,L.C.for office space to be utilized by the Growth Management Division. OBJECTIVE: To revise the commencement date of a previously approved Lease Agreement. CONSIDERATION: At its January 26, 2016 regular meeting (Item 16-E-5), the Board of County Commissioners approved a Lease Agreement with Horseshoe Square Development, L.C. (Landlord), for office space to accommodate approximately 36 expanded positions within the Growth Management Division. The leased space is located within walking distance of the GMD building on Horseshoe Drive North in the building known as Horseshoe Square. The original commencement date of the Lease was February 1,2016,which was later delayed to March 1, 2016, by mutual consent of the Landlord and the County. The County, however, has been unable to occupy the leased space due to delays in completing certain improvements promised by the Landlord. The purpose of this First Amendment is to revise the commencement date and term of the Lease. The new lease term will run for thirty-four months beginning on May 1, 2016 and expiring on February 28, 2019 (Initial Term). All other terms and condition of the Lease Agreement will remain the same. The Lease includes a provision for the Lease to automatically renew annually. The Lease also allows the County to terminate the Lease any time following the Initial Term by providing 90-day written notice. FISCAL IMPACT: As stated in the January 26th Executive Summary, the annual rent of$100,842 will be paid in equal monthly installments of $8,403.50, and monthly utility charges to the appropriate companies,shall be withdrawn from(113) Community Development, (131)Planning Services.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: The County Attorney has reviewed this item and approved it as to form and legality. Majority support of the Board is required for approval. -JAK RECOMMENDATION: That the Board of County Commissioners approves and authorizes its Chairman to sign the attached First Amendment to Lease Agreement. PREPARED BY: Michael Dowling, Senior Property Management Specialist Division of Facilities Management Attachments: 1) First Amendment to Lease Agreement [16-RPR-02829/1253561/11 Packet Page-1210- 5/24/2016 16.E.6. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.E.16.E.6. Item Summary: Recommendation to approve a First Amendment to Lease Agreement with Horseshoe Drive Development, L.C., for office space to be utilized by the Growth Management Division. Meeting Date: 5/24/2016 Prepared By Name: DowlingMichael Title:Property Management Specialist, Senior,Facilities Management 5/2/2016 9:13:25 AM Approved By Name:AmannStephanie Title:Manager-Financial&Operational Support,Operations &Regulatory Management Date: 5/2/2016 10:28:17 AM Name: MottToni Title:Manager-Property Acquisition&Const M,Facilities Management Date: 5/2/2016 10:51:48 AM Name: KovenskyKenneth Title: Division Director-Operations Support,Operations &Regulatory Management Date: 5/2/2016 3:52:46 PM Name: LinguidiDennis Title:Division Director-Facilities Mgmt,Facilities Management Date: 5/2/2016 3:59:01 PM Name: FrenchJames Title:Deputy Department Head-GMD,Growth Management Department Date: 5/4/2016 2:06:51 PM Name: KlatzkowJeff Title: County Attorney, Packet Page -1211- 5/24/2016 16.E.6. Date: 5/9/2016 11:11:40 AM Name: PriceLen Title: Department Head-Administrative Svc,Administrative Services Department Date: 5/11/2016 10:39:07 AM Name: KlatzkowJeff Title: County Attorney, Date: 5/11/2016 1:14:58 PM Name: IsacksonMark Title: Division Director-Corp Fin&Mgmt Svc, Office of Management&Budget Date: 5/13/2016 9:14:47 AM Name: WellsLaura Title: Management/Budget Analyst, Senior,Office of Management&Budget Date: 5/13/2016 4:30:48 PM Name: CasalanguidaNick Title:Deputy County Manager, County Managers Office Date: 5/15/2016 10:34:05 PM Packet Page -1212- 5/24/2016 16.E.6. Lease#GMD- 102 FIRST AMENDMENT TO LEASE AGREEMENT THIS FIRST AMENDMENT TO LEASE AGREEMENT entered into this day of , 2016, by and between Horseshoe Square Development, L.C., c/o Pelconcepts, Inc., whose mailing address is 650 15th 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 c/o Real Property Management, 3335 East Tamiami Trail, Suite 101, Naples, Florida 34112,hereinafter referred to as"LESSEE." WITNESSETH WHEREAS, the LESSOR and LESSEE have previously entered into a Lease Agreement dated January 26, 2016, a copy of which is attached hereto and hereinafter referred to as"Lease Agreement;" and WHEREAS, the LESSOR and LESSEE are desirous of amending the Lease Agreement to revise the commencement date of the Lease Agreement; and NOW THEREFORE, in consideration of the covenants and agreements provided within said Lease Agreement, which is attached herein and made a part hereof, and Ten Dollars ($10.00) and other valuable consideration, said Lease Agreement is hereby amended as follows: 1. ARTICLE 2. (Term of Lease), is hereby amended to read as follows: LESSEE shall have and hold the Demised Premises for a term of three(3)years, commencing on February 1, 2016 May 1, 2016 and ending January 31, 2019 February 28, 2019, hereinafter referred to as the"Initial Term." * * * * * 2. Except as expressly provided herein, the Lease Agreement remains in full force and effect according to the terms and conditions contained therein. If there is a conflict between the terms of this First Amendment and the Lease Agreement,the terms of this Amendment shall prevail. Signatures appear on the following page. Packet Page -1213- 5/24/2016 16.E.6. IN WITNESS WHEREOF, the LESSOR and LESSEE have hereto executed this First Amendment to Lease Agreement the day and year first above written. AS TO THE LESSOR: HORSESHOE SQUARE DEVELOPMENT, L.C., ATTEST: By: Pelconcepts,Inc.,its managing member BY: Antoinette Pelc, Secretary W. VINCE PELC,President AS TO THE LESSEE: BOARD OF COUNTY COMMISSIONERS, ATTEST: COLLIER COUNTY,FLORIDA DWIGHT E. BROCK,Clerk BY: BY: ,Deputy Clerk DONNA FIALA, Chairman Approved s ; f • legality: 11111111 Jeffrey A. 4 . .kow County Atte Packet Page -1214- [16-RPR-02829/t LJ 1 I44/l j 2 5/24/2016 16.E.6. Lease # 447 j 6 LEASE AGREEMENT 1/ _ THIS LEASE AGREEMENT entered into this y 0 day of J4d --4 A , 2016, between Horseshoe Development, L.C., cio Pelconcepts, Inc., whose mailing addres is 650 1511' 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". WITNESSETH 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 \�� FQ ) 1, 2016 and endingJa"xuei -3-1-,2019, here n'afler referred to as the"Initial Term". i,4 Lei- J%CAxu.�2re.j .2 'F V LESSEE is granted the option, provided 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. Packet Page -1215- 09 5/24/2016 16.E.6. 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 Packet Page-1216- 5/24/2016 16.E.6. 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 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;ants, employees, guest or invitees. If any action or proceeding is brought against LESSOR by reason of such claim, LESSEE, 3 Packet Page -1217- C� • 5/24/2016 16.E.6. 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 4 Packet Page-1218- 5/24/2016 16.E.6. 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.) Packet Page-1219- 5/24/2016 16.E.6. IN WITNESS WHEREOF, the parties hereto have hereunder set forth their hands and seals. AS TO THE LESSOR: DATED: 2 0 HORSESHOE SQUARE DEVELOPMENT,L.C. By: Pelconcepts, Inc.,its managing member ATTEST: 14i" 4.'e Pe& BY: 6'%i 4 Antoinette Pelc, Secretary W.VINCE PELC, President AS TO THE LESSEE: DATED: /-- 26, /c," BOARD OF COUNTY COMMISSIONERS, r � = COLLIER COUNTY, FLORIDA ATTEST DWIGHT.BRICK, Clerk _ r „ BY: 944-77710-- - eti y Glerlc k=ttest as;t Chairma r s .....6U,r'/t4 6=/4Lel-, L- 1A .0 1" A ^/ A signature'On .: Approved a.toV and-legality: ' f Jeffrey A. K4 r atz <' 'w, County Attorney i 6 11:) ?: F Packet Page-1220- 5/24/2016 16.E.6. Exhibit 'A' 2685 Horseshoe Drive South Units 103,104 and 105 COWDEN= ORRN CM= CFR= OGEE ORME: OPRCE O ME ` l.O O 6 -@-- O O OPP CE +.+„ G OPEN STACEY=sgt TOTAL AREA 7,276^q h FOR RENT 7203 SO FT O - ilf---)---'\, to Er.f. N t9 ... _ �. e v sMICHp Pil sio a COVERED i Ze YA'IhYR�i jS 1 A�POEN, j Np1 ci PacketPage -1221-