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Agenda 07/11/2017 Item #16F407/11/2017 EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners approve, and authorize the Chairman to sign an Assumption Agreement with Staffordshire Properties, Inc., replacing Training and Manufacturing Institute (TMI), Inc., consistent with the provisions of the (former) Fee Payment Assistance Program, which is Article II of Chapter 49 of the Collier County Code of Laws and Ordinances and authorizing the County Manager to rescind the Agreement if the contemplated purchase of the property by Staffordshire Properties, Inc. does not occur in a timely fashion. OBJECTIVE: To assign an existing Fee Payment Assistance Agreement to the prospective purchaser of the property. CONSIDERATIONS: On February 7, 2006, the County entered into an agreement for Fee Payment Assistance with TMI for the construction of a new multi-tenant commercial facility at 2050 Commerce Avenue, at the Tradeport Technology Park in Immokalee, Florida. The owners of the property conceived the idea to construct a building offering tenant space to "businesses and agencies that could bring about a positive change and provide sustainable employment in Immokalee" and made an initial private construction investment of over $2.8 million. The building received a Certificate of Occupancy in April of 2007. The requirement for the Fee Payment Assistance Program in Immokalee, where the project is located, is to provide 5 jobs at 50% of the average wage. The 2006 average wage was $32,734; therefore, the 50% requirement equals $16,367. Due to the personal circumstances of the Training Manufacturing Institute, Inc. partners, the building is being sold. The prospective purchaser, Staffordshire Properties, Inc., has agreed to assume the Fee Payment Assistance Agreement and adhere to the ongoing monitoring requirements. The term of the Agreement is 15 years from the date of the Agreement, which was executed on February 7, 2006. Therefore, five years remain of the Agreement term. The obligation to find qualified jobs for annual verification purposes is the responsibility of Staffordshire Properties, Inc. FISCAL IMPACT: There is no fiscal impact related to the approval of the Assumption Agreement. The original amount of impact fees paid on behalf of the Training Manufacturing Institute, Inc. totals $185,684.40. The company has been in compliance with the Agreement for 10 years, with a calculated credit of $123,789.60, based on the 15-year term. Therefore, the remaining impact fee obligation totals $61,894.80. Job Verification will continue through the original fee payment assistance terms of fifteen years with five years remaining. The Fee Payment Agreement is secured with a lien on the subject property for the amount of the remaining impact fee obligation. GROWTH MANAGEMENT IMPACT: This request is consistent with Objective 3 of the Economic Element of the Collier County Growth Management Plan which states: "Collier County will support programs which are designed to promote and encourage the recruitment of new industry as well as the expansion and retention of existing industries in order to diversify the County's economic base." 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: Recommendation that the Board of County Commissioners approve, and authorize the Chairman to sign an Assumption Agreement with Staffordshire Properties, Inc., replacing Training and Manufacturing Institute, Inc., consistent with the provisions of the (former) Fee Payment 07/11/2017 Assistance Program, which is Article II of Chapter 49 of the Collier County Code of Laws and Ordinances, and authorizing the County Manager to rescind the Agreement if the contemplated purchase of the property by Staffordshire Properties, Inc. does not occur in a timely fashion. Prepared by: Jace Kentner, Director, Office of Business and Economic Development ATTACHMENT(S) 1. TMI AGREEMENT FOR FEE PAYMENT ASSISTANCE (PDF) 2. ASSUMPTION AGREEMENT STAFFORDSHIRE TMI ver 3 (PDF) 07/11/2017 COLLIER COUNTY Board of County Commissioners Item Number: 16.F.4 Doc ID: 3471 Item Summary: Recommendation that the Board of County Commissioners approve, and authorize the Chairman to sign an Assumption Agreement with Staffordshire Properties, Inc., replacing Training and Manufacturing Institute (TMI), Inc., consistent with the provisions of the (former) Fee Payment Assistance Program, which is Article II of Chapter 49 of the Collier County Code of Laws and Ordinances and authorizing the County Manager to rescind the Agreement if the contemplated purchase of the property by Staffordshire Properties, Inc. does not occur in a timely fashion. Meeting Date: 07/11/2017 Prepared by: Title: Operations Analyst, Senior – Administrative Services Department Name: Bendisa Marku 07/03/2017 12:01 PM Submitted by: Title: Economic Research Analyst – Business and Economic Development Name: Jace Kentner 07/03/2017 12:01 PM Approved By: Review: Business and Economic Development Bendisa Marku Additional Reviewer Skipped 07/03/2017 3:32 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 07/03/2017 4:38 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 07/03/2017 4:55 PM Budget and Management Office Ed Finn Additional Reviewer Completed 07/05/2017 8:37 AM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 07/05/2017 2:11 PM Board of County Commissioners MaryJo Brock Meeting Pending 07/11/2017 9:00 AM Prepared by: Jeffrey A. luatzkow Ault Collier County An'y. 3301 Tamiami Tull East Naples, FL 31112 783748 OR; 3981 PG; 010 RECORDED in OFFICIAL RECORDS of COLLIER COIETF, IL 02/10/2006 at 01:37PR DWIGHT E. BROCE, CLIAE RIC FII 61.00 COPIES 7.00 Rata: CDB$ IMPACT FEES IETIR OFFICE (v AGREEMENT FOR FEE PAYMENT ASSISTANCE V PROGRAM This Agreement for Fee Payment Assistance for the payment of Impact Fees is entered into this 9hday of 2006 by and between Collier County, a political subdivision of the State of Florida, through its Board of County ommissioners, hereinafter referred to as "COUNTY," and Training and Manufacturing Institute, Inc, hereinafter referred to as "BUSINESS WHEREAS, Collier Cou fy O diaa�C� 003-6 the Ordinance, as it may be further en ed from fl yt me, co lftc Ordinances of Collier County Flo ida, er ma ntie; v I f d provides for Fee Payment Assistant P'f a ot e to qu as the "Parties." aunty Fee Payment Assistance n 49 of the Code of Laws and Payment Assistance Ordinance," iesses; and WHEREAS, the BUSINI as applied 6ee a wjji ' ssistance as allowed by the Fee Payment Assistance Ordinance, and Prof said application is e i h mpact Fee Administration office of the Financial Administration and Housi ® ent; and WHEREAS, the County Manager, or I&news ewed the BUSINESS OWNER'S application and has found that it complies with the requirements for fee assistance as outlined and set forth in the Fee Payment Assistance Ordinance; and WHEREAS, a Fee Payment Assistance Agreement must be presented in order for the requisite impact fees to be paid by the allocated funds of the Fee Payment Assistance Program, subject to satisfaction of all criteria in the Fee Payment Assistance Ordinance qualifying the project as eligible for fee payment assistance; and WHEREAS, pursuant to Section 74-202 of the Impact Fee Ordinance, as codified in the County's Code of Laws and Ordinances (Code of Laws), the County Manager is authorized to execute certain Impact Fee Payment Assistance agreements; and WHEREAS, the Impact Fee Ordinance requires that the BUSINESS OWNER enter into an Agreement with the COUNTY, and WHEREAS, by signing this Agreement, the County Manager will approve impact fees payment assistance for the BUSINESS OWNER in support of financial relief for eligible industry development, high wage employment Page 1 OR: 3981 PG: 0103 opportunities, lessening the seasonal economic cycle, and encouraging investment opportunities in the specified areas. 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 Parries covenant and agree as -follows: RECITALS INCORPORATED. The foregoing Recitals are hue and correct and are incorporated by reference herein. LEGAL DESCRIPTION, ADDRESS AND OWNERSHIP. The name of the BUSINESS OWNER (S), the address of the subject property, hereafter the Property, and the legal description of same is attached as Exhibit "A", and is incorporated by reference herein, PAYMENT OF IMPACT FEES. As a prerequisite to the issuance of the Building Permit(s) for the Development of the Property, a certified copy of this recorded Agreement must be presented to the COUNTY in order for the allocated Fee Payment Assistance funds to ac t er es, which would otherwise be required to be paid by the BUSINESS OWNER under ws Section 74- TERM. The term of this Agreeme is fr � ears from the datePgf th recording of this Agreement and at the conclusion of the term of the A eenYent t e ie %pn Ihe�subject roperty will a released, provided all terms and conditions of the Agreement are REPRESENTATION AND W and warrants the following: The BUSINESS OWNER is er of record or the au) z ent for the BUSINESS OWNER of the project, and pursuant to the � rdinance w V fees in the total amount of $185,684.40 as set forth in attached Exhibit "Binc l y.�e�'r and The BUSINESS OWNER has filed a program application which has been accepted by the COUNTY as sufficient; and The type of business proposed is classified under North American Industrial Classification System (NAICS) Code 6244; and A minimum of five new jobs will be created and retained as a result of the project; and The newly created jobs pay an average wage equal to or greater than 50% of the County's current private - sector average wage; and The estimated total capital investment related to the project is $2,800,000.00; and The date (month and year) when the project will be substantially complete is December of 2007; and In return for the COUNTY paying 100% of the impact fees owed by BUSINESS OWNER by use of specified Program funds, the BUSINESS OWNER further covenants and agrees to comply with the provisions of this Agreement and the Fee Payment Assistance Program detailed in the Fee Payment Page 2 OR; 3981 PG; 0104 Assistance Ordinance, during the term of this Agreement. Any change in the status of the occupancy, type of business conducted, or compliance with the requirements of the Program, set forth in the Fee Payment Assistance Ordinance and this Agreement, will be considered to be a breach of the Agreement and therefore in default and immediately due and payable, including any applicable interest, in accordance with the provisions set forth by Code of Laws Section 49-24 (b)(6) of the Fee Payment Assistance Program and this Agreement. SUBSEQUENT SALE OR TRANSFER. That the amount of the Impact Fees paid by the COUNTY under the Program will become due and payable and shall be Immediately re -paid to the COUNTY by the BUSINESS OWNER if the property is sold or transferred without prior written approval from the COUNTY at any time after the first certificate of occupancy has been issued for the Property and prior to the 15 -year term of the Agreement, and in the event the paid Impact Fee amounts must be re -paid in full to the COUNTY. Any outstanding (i.e., as yet not repaid) Impact Fee amounts previously paid under this Program that become due and payable must then be immediately repaid to the COUNTY and if not so repaid, the outstanding obligation willsen a liey-ojythe Property under the terms of the Agreement. LIEN. The payment of Impac 8 e COUNTY Agreement will constitute a ien the BUSINESS( upon in the name of the B S SS R i he et Agreement. The amount pec I and neither the obligation for p e t o d e; q assigned, credited, or othi written approval from the it Assistance Program under this r, which lien may be foreclosed ace with the requirements of this ve as a lien against the Property ;ement itself may be transferred, from the Property without prior SUBORDINATE. The Courltsj� rest may be subordin ted V fill first mortgages or other co -equal security interests, and will auto�it�llhrrtVVat—uboFdi `i BUSINESS' previously recorded first mortgage and/or any government r �o smess loan, such as the U.S. Small Business Administration (SBA) or the U.S. Department of Agriculture (USDA) loan. RELEASE OF LIEN. Upon satisfactory completion of all requirements of the Agreement, the COUNTY may record any necessary documentation evidencing same, including, but not limited to, a release of lien, The lien will not terminate except upon the recording of a release or satisfaction of lien in the public records of Collier County. Such release will only be recorded upon payment in full or satisfaction under the terns of this Agreement. REMEDIES. In the event the BUSINESS OWNER is in default under this Agreement, and the default is not cured within thirty (30) days after written notice is provided to the BUSINESS OWNER, the COUNTY may bring a civil action to enforce the Agreement or declare that COUNTY'S payment of the Impact Fees not yet recouped and previously paid under this Program are thence immediately due and payable. The COUNTY will be entitled to recover all fees and costs, including attorney's fees and costs incurred by the COUNTY in enforcing the Agreement, plus interest at the then maximum statutory rate for final judgments, calculated on a calendar day basis until paid. Page 3 i OR: 3981 PG: 0105 RECORDING. This Agreement will be recorded in the Official Records of Collier County at no cost to the County. IN WITNESS WHEREOF, the Parties have executed this Agreement on the date and year fust above written. WITNESS: OWNER Training and Manufachuing Institute, Inc. Signed Signed STATE OF FLORIDA) COUNTY OF COLLIER) r CJ «� Wdent and er The foregoing A at was acknowledged before me this _Z day of 2006, by He/She/They is/are personal known to or have produced as proof of identity. [NOTARIAL SEAL] •0 �E B0.3""ON�•••»•�••� F;rw taa� Flaw !!°e!Y,w"...:.!n j gipat of Person Taking Acknowledgment Page 4 COLLIER COUNTY, FLORIDA STATE OF FLORIDA) COUNTY OF COLLIER) The foregoing Agreement Mudd, County Manager, on [NOTARIAL SEAL] LOATS E. ROGERS MY COMMISSION N DD427962 EXPIRES: May 10 09 [t4:[F nNo yOimnlMoeCa OR: 3981 PG: 0106 B. JAMES V. MUDD, COUNTY MANAGER co before me this T aay of u�GR006, by James V. CM -1 Recommend Approval; Denton Baker, Director Operations Support and Housing Department Page 5 OR: 3981 PG: 0107 EXHIBIT "A" LEGAL DESCRIPTION OWNERSHIP ADDRESS Training and Manufacturing Institute, Inc. 2050 Commerce Avenue, Immokalee Florida 34142 Lot 7, IMMOKALEE AGRICOM PARK PHASE ONE, in accordance with and subject to the plat thereof, as recorded in Plat Book 17, Pages 55 through 57, inclusive, of the Public Records of Collier County, Florida. Page 6 EXHIBIT `B" IMPACT Type of Impact Fee A. EMS Impact Fee (� B. Correctional Facili C. Road Impact Fee D. General Government E. Law Enforcement Impact Fee TOTAL IMPACT FEES V Fee Page 7 *** OR; 3981 PG; 0108 *** :$13,973.70 $ 1.592.70 $185,684.40 ASSUMPTION AGREEMENT This ASSUMPTION AGREEMENT is made and entered into as of July 11, 2017, by and between Staffordshire Properties, Inc., a Massachusetts domestic profit corporation, and Collier County, a political subdivision of the State of Florida (“County”), collectively stated as the “Parties.” WHEREAS, on February 7, 2006, the County entered into an Agreement for Fee Payment Assistance Program with Training and Manufacturing Institute, Inc., attached hereto as Exhibit A, and hereinafter referred to as “Agreement”; and WHEREAS, Staffordshire Properties, Inc. hereby represents to the County that it is the successor in interest to Training Manufacturing Institute, Inc., in relation to the Agreement; and WHEREAS, Staffordshire Properties, Inc. represents to the County that it is eligible to remain in the fee Payment Assistance Program (Immokalee) pursuant to criteria set forth in Ordinance No. 2003 -61, as amended, which required the creation of a minimum of 5 new full -time jobs at an average wage of at least 50% of Collier County’s then current private sector average wage ($16,367); and WHEREAS, the parties wish to formalize Staffordshire Properties, Inc.’s assumption of rights and obligations under the Agreement, which is effective as of the date of closing on the subject property by Staffordshire Properties, Inc., which is scheduled to occur on or about July 31, 2017. NOW THEREFORE, IN CONSIDERATION of the mutual promises in this Assumption Agreement, and for other good and valuable consideration, the receipt and sufficiency of which are acknowledged by the parties, it is agreed as follows; 1. The foregoing Recitals are true and correct and are incorporated by reference herein. 2. Except as provided herein, Staffordshire Properties, Inc. accepts and assumes all rights, duties, benefits, and obligations under the Agreement, including but not limited to the lien recorded on February 10, 2006, in the Official Records of Collier County, FL at OR book:3981 Page: 0102 and including all existing and future obligations to pay and perform under the Agreement. 3. Except as expressly stated, no further supplements to, or modifications of, the Agreement are contemplated by the Parties. 4. The County hereby consents to Staffordshire Properties, Inc.’s assumption of the Agreement. No waivers of performance or extensions of time to perform are granted or authorized. Except as provided herein, all other terms and conditions of the Agreement remain in full force and effect. 5. Should the scheduled closing on the subject property not occur by August 31, 2017, the County may by written notice terminate this agreement. 6. Staffordshire Properties, Inc. shall register to do business in the State of Florida through the Florida Department of State, Division of Corporations and shall maintain its eligibility to do business in Florida throughout the term of this agreement. IN WITNESS WHEREOF, the undersigned have executed and delivered this Assumption Agreement effective as of the date of closing on the subject property by Staffordshire Properties, Inc., which is scheduled to occur on or about July 31, 2017. COLLIER COUNTY: ATTEST: DWIGHT E. BROCK, Clerk By: ______________________ Deputy Clerk STAFFORDSHIRE PROPERTIES, Inc. By: ______________________ Richard Robert, President Date:_____________________ BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA By: ___________________________ PENNY TAYLOR, CHAIRMAN STATE OF COUNTY OF The foregoing instrument was acknowledged before me this ____ day of _______, 2017 by ___________________ as _____________________ and on behalf of Staffordshire Properties, Inc., a Florida Limited Liability Company. Such person is personally known to me or has produced _________________ as identification and did (did not) take an oath. ________________________________ NOTARY PUBLIC (STAMP OR SEAL) Approved as to form and legality: ________________________________ Jeffrey A. Klatzkow, County Attorney