Agenda 09/13/2016 R Item #11D 11.D
09/13/2016
EXECUTIVE SUMMARY
Recommendation to authorize the County Manager to make an offer to purchase the Courthouse
Shadows Consolidated Holding, Inc. office building located at 3375 Tamiami Trail East. (Toni
Mott,Real Property Manager)
OBJECTIVE: To facilitate future space planning requirements that will reduce the County's
expenditures for off-site leaseholds.
CONSIDERATION: In May 2016, staff contracted for an update to the County's Master Space Plan to
ensure adequate space is available to meet service requirements in the near and long-term future. Staff
recently learned that the office building located immediately east of the Government Center's south
entrance has become available for sale. A location map is attached for reference. The asking price is
$1,495,000. Real Property Management's staff appraiser has prepared a market valuation in the amount of
$1,290,000. Per Florida Statute, one state certified independent appraisal will be required at a cost of
$1,000.
The site is zoned C-3 and consists of.45 acres with a one-story,4,797 square foot building that is divided
into four separate office suites. There are fifteen parking spaces. The building is fully occupied with lease
expiration dates that range from March 2018 to March 2019. However, one lease includes a provision for
a five-year renewal with rent to be negotiated at market rate. If negotiations are successful, the new
termination date for this unit would be October 31, 2023. All leases are triple net (Lessee pays taxes,
insurances, common area maintenance, and utilities) and the total annual gross rent income at the property
is currently$116,495.76. There is no early termination clause provided for the existing tenants to vacate
their leased spaces prior to the termination dates. Upon termination of existing leases and any required
renovations or remodeling, occupancy is projected in 2024. Rental income during that timeframe is
estimated at $815,465 which includes Common Area Maintenance(CAM.)
The purchase is subject to a building inspection and any other necessary inspections to ensure that the
Property can be utilized for its intended purposes; that the Property is in compliance with all applicable
State and Federal environmental laws and free from any pollution or contamination; and that all structures
and improvements on the Property are sound, and all systems, fixtures, and appliances are in good and
safe operating condition.
Approval of the following request by the County Manager is subject to formal ratification by the Board of
County Commissioners. If the decision by the County Manager is not ratified by the Board, the request
shall be enforceable against Collier County only to the extent authorized by law in the absence of such
ratification by the Board.
Staff will submit a future agenda item outlining the appraisal results and the total cost of acquisition for
Board action.
FISCAL IMPACT: At this time, there is no fiscal impact associated with this agenda item. Purchase of
the property, if approved by the Board at a later date, could be funded through a combination of existing
FY 2017 budgeted appropriations and reserves. Revenues generated from the existing rental agreements
would be recognized in the fund ultimately used for the purchase.
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11.D
09/13/2016
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 authorizes the County Manager to
make an offer to purchase the Courthouse Shadows Consolidated Holding, Inc. office building located at
3375 Tamiami Trail East and directs the County Manager to bring back the appraisal results and the total
cost of acquisition for future consideration.
PREPARED BY: Toni A. Mott,Manager-Real Property Section,Division of Facilities Management
ATTACHMENT(S)
1. Bail Bonds Building Exhibit (DOCX)
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11.D
09/13/2016
COLLIER COUNTY
Board of County Commissioners
Item Number: 11.D
Item Summary: Recommendation to authorize the County Manager to make an offer to purchase
the Courthouse Shadows Consolidated Holding, Inc. office building located at 3375 Tamiami Trail East.
(Toni Mott, Real Property Manager)
Meeting Date: 09/13/2016
Prepared by:
Title: Executive Secretary to County Manager—County Manager's Office
Name: MaryJo Brock
08/29/2016 10:43 AM
Submitted by:
Title: County Manager—County Manager's Office
Name: Leo E. Ochs
08/29/2016 10:43 AM
Approved By:
Review:
Budget and Management Office Mark Isackson Level 3 OMB 2nd Reviewer Completed 08/29/2016 11:01 AM
County Attorneys Office Jeffrey A.Klatzkow Level 3 CAO Final 2nd Review Completed 08/29/2016 1:49 PM
County Manager's Office Nick Casalanguida County Manager Review Completed 08/30/2016 8:22 AM
Board of County Commissioners MaryJo Brock Meeting Pending 09/13/2016 9:00 AM
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11.D.a
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