Agenda 02/11/2014 Item #16E7 2/11/2014 16.E.7.
EXECUTIVE SUMMARY
Recommendation to approve a Second Amendment to Lease Agreement with LG
Mercantile Holdings, LLC, for the continued use of warehouse/office space used
by the Sheriffs Office.
OBJECTIVE: The current Lease Agreement, through a First Amendment to Lease Agreement,
between Collier County and LB Mercantile Holdings, LLC, formerly Domenico and Maria
LaGrasta, is scheduled to expire on February 14, 2014 and requires renewal.
CONSIDERATIONS: Since February 2007, the Sheriff's Office has leased property on
Mercantile Avenue for its radio shop, mobile data, telephone, records storage, and purchasing
operations. The subject property is located at 4373 Mercantile Avenue and totals 7,000 square
feet. The space includes 1,200 square feet of air-conditioned warehouse space, approximately
4,800 square feet of non-air-conditioned warehouse space, two (2) restrooms, and four (4)
offices.
The attached Second Amendment to Lease Agreement is extending the lease to February 14,
2015, with five additional one-year renewals. The County maintains the right to terminate the
lease, with or without cause, by providing sixty days prior written notice to the landlord.
The landlord originally charged $84,000.00 per year for rent in 2007, which included Common
Area Maintenance (CAM) charges, but has agreed to reduce the rent due to the economic
climate to $54,384 annually, including CAM, and will not increase the rent or CAM throughout
the life of this Amendment.
The County will be responsible for all monthly communications and electricity costs pertaining to
its operation at this location. The landlord will be responsible for all costs related to water
consumption, sewer fees, building maintenance, landscaping, irrigation, air-conditioning, and
plumbing systems.
FISCAL IMPACT: The first year's total rent, which includes common area maintenance fees, of
$54,384, to be paid in equal monthly installments of $4,532, as well as all subsequent annual
rent, will be withdrawn from the General Fund (001), BCC for Sheriff (106010), Rent Building
(644100).
GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management Plan.
LEGAL CONSIDERATION: 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 approves and authorizes the Chairman to execute the
attached Second Amendment to Lease Agreement.
PREPARED BY: Michael Dowling, Sr. Property Management Specialist, Real Estate Services,
Facilities Management Department
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2/11/2014 16.E.7.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.E.16.E.7.
Item Summary: Recommendation to approve a Second Amendment to Lease Agreement
with LG Mercantile Holdings, LLC,for the continued use of warehouse/office space used by the
Sheriff's Office.
Meeting Date: 2/11/2014
Prepared By
Name: DowlingMichael
Title:Property Management Specialist, Senior,Facilities
1/23/2014 3:43:44 PM
Submitted by
Title: Property Management Specialist, Senior,Facilities
Name: DowlingMichael
1/23/2014 3:43:46 PM
Approved By
Name: pochopinpat
Title: Administrative Assistant,Facilities Management
Date: 1/23/2014 4:48:04 PM
Name: CampSkip
Title: Director-Facilities Management,Facilities Manage
Date: 1/23/2014 4:53:11 PM
Name: MottToni
Title: Manager-Property Acquisition&Const M,Facilitie
Date: 1/23/2014 5:15:06 PM
Name: PriceLen
Title: Administrator, Administrative Services
Date: 1/27/2014 4:20:35 PM
• Packet Page-826-
2/11/2014 16.E.7.
Name: KlatzkowJeff
Title: County Attorney
Date: 1/29/2014 1:04:49 PM
Name: KlatzkowJeff
Title: County Attorney
Date: 1/30/2014 8:16:29 AM
Name: GreenwaldRandy
Title:Management/Budget Analyst,Office of Management&B
Date: 1/30/2014 9:07:16 AM
Name: DurhamTim
Title: Executive Manager of Corp Business Ops,
Date: 2/4/2014 8:57:03 AM
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License#928
SECOND AMENDMENT TO LEASE AGREEMENT
THIS SECOND AMENDMENT TO LEASE AGREEMENT entered into this day
of , 2014, at Naples, Collier County,Florida,by and between Collier
County, a political subdivision of the State of Florida, whose mailing address is 3335 East
Tamiami Trail, Suite 101, Naples, Florida 34112, hereinafter referred to as "LESSEE," and LG
Mercantile Holdings, LLC, a Florida limited liability company established on August 3, 2009,
formerly known as Domenico and Maria LaGrasta, whose mailing address is 434 Conners
Avenue,Naples,Florida 34108,hereinafter referred to as "LESSOR."
WITNES SETH
WHEREAS, LESSEE and LESSOR have previously entered into a Lease Agreement dated
February 13,2007 and a First Amendment to Lease Agreement dated February 10,2009, attached
hereto as Exhibit A,and hereinafter collectively referred to as the"Lease Agreement;"and
WHEREAS, pursuant to Article 2 of the Lease Agreement, the lease term expires on
February 14,2014; and
WHEREAS, the LESSOR and LESSEE are desirous of amending the Lease Agreement
in order to extend the lease term as set forth below.
NOW THEREFORE, in consideration of the covenants and agreements provided within
said Lease Agreement and Ten Dollars ($10.00), and other valuable consideration, said Lease
Agreement is hereby amended as follows:
1. The following provision shall be added to Article 2 of the Lease Agreement:
This Lease is hereby extended until February 14, 2015, hereinafter referred to as the
"Extended Lease Term," and LESSEE is granted the option, provided it is not then in
default of any of the terms of this Lease, to renew same automatically for five (5)
additional one (1) year terms, hereinafter referred to as the "Renewal Terms," under the
terms and conditions as provided herein.
LESSEE, however, reserves the right to terminate this Lease, with or without cause, by
providing LESSOR with at least sixty days prior written notice of such termination to
LESSOR at the address set forth in ARTICLE 13 of the Lease Agreement. Said notice
shall be effective upon the date of LESSEE'S notice to LESSOR.
2. The following provision shall be added to Article 3 of the Lease Agreement:
The base rent for the period of February 15, 2014 to February 14, 2015, shall be
$4,532.00 per month for the Extended Lease Term and throughout the Renewal Terms.
3. Except as expressly provided herein, the Lease Agreement between Collier County, a
political subdivision of the State of Florida,and LG Mercantile Holdings,LLC,for the utilization
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License#928
I
of the Demised Premises described in said Lease Agreement dated February 13, 2007, and as
amended in the First Amendment to Lease Agreement dated February 10, 2009, remains in full
force and effect according to the terms and conditions contained therein, and said terms and
conditions are applicable hereto except as expressly provided otherwise herein.
IN WITNESS WHEREOF, the LESSOR and LESSEE have hereto executed this Second
Amendment to Lease Agreement the day and year first above written.
AS TO THE LESSOR: LG MERCANTILE HOLDINGS,LLC
a Florida Limited Liability Company
WITNESSES AS TO BOTH:
BY:
Witness (Signature) DOMENICO LAGRASTA, Manager
I
(Print Name) BY:
I
MARIA LAGRASTA, Manager
Witness(Signature)
(Print Name)
AS TO THE LESSEE:
DATED: BOARD OF COUNTY COMMISSIONERS,
COLLIER COUNTY,FLORIDA
I ATTEST:
DWIGHT E. BROCK, Clerk
BY:
TOM HENNING, CHAIRMAN
BY:
,Deputy Clerk
Appro d . . .AI,1 •• - legality:
! Ip7A %.
Jeffrey • ' 7,.
County • , . i -y
2
(2)
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EXHIBIT A 2/11/2014 16.E.7.
• Lease# g ea-
LEASE AGREEMENT
`3
day of Feb 2007, between Domenico
THIS LEASE AGREEMENT entered into this y may,
and Maria LaGrasta whose mailing address is 506 106th Avenue North, Naples,Florida 34108,hereinafter
referred to as "LESSOR", and COI.i.TER COUNTY, a political subdivision of the State of Florida,whose
mailing address is 3301 East Tamiami Trail,Naples,Florida 34112,hereinafter referred as"LESSEE".
WITNESSETH
In consideration of the mutual covenants contained herein, and other valuable consideration, the
panics agree as follows:
ARTICLE 1. Demised Premises
LESSOR hereby leases to LESSEE and LESSEE hereby leases from LESSOR approximately 7,000
square feet of warehouse and offices space located at 4373 Mercantile Avenue,Naples,Florida,for the sole
purpose of operating a government office.
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 2. Term of Lease
LESSEE shall have and hold the Demised Premises for a term of two (2) years commencing on
February 15,2007 and ending February 14, 2009. LESSEE is granted the option,provided it is not then in
default of any of the terms of this Lease,to renew same for one(1)additional term of one(1)year,under the
terms and conditions as provided herein, by giving written notice of LESSEE'S intention to do so to the
LESSOR not less than thirty (30) days prior to the expiration of the leasehold estate hereby created. Said
notice shall become effective upon actual receipt by LESSOR.
LESSEE,however,reserves the right to terminate this Lease,with or without cause,upon sixty days
prior written notice of such termination to LESSOR at the address set forth in ARTICLE 13 of this Lease.
Said notice shall be effective upon actual receipt by LESSOR.
LESSEE shall not be required to provide LESSOR with any advanced rent such as security deposit or
holding rent.LESSEE is tax exempt and shall provide LESSOR with its Tax Certificate showing its exempt
status.
ARTICLE 3. Rent
LESSEE hereby covenants and agrees to pay as base rent for the Demised Premises the sum of
Eighty-four Thousand Dollars ($84,000.00) for the first two(2)years of the Lease term to be paid in equal
monthly installments of Seven Thousand Dollars($7,000.00). The annual rent for all renewals thereto shall
be calculated as described in Article 4 below.
All rental payments shall be due and 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
The annual rent for the third year of the Lease and any renewals thereto, the rent set forth in this
ARTICLE shall be increased annually for the ensuing one year renewal terms in the same proportion that the
Consumer Price Index for Urban Wage Earners and Clerical Workers-United States City Average, all
Item-Series A(1982—84= 100), United States Department of Labor had increased for the preceding year.
However,in no event shall the annual minimum rent be less than Eighty-four Thousand Dollars($84,000.00)
nor shall any yearly increase be greater than five(5)percent. In the event that the Consumer Price Index
ceases to incorporate a significant number of items, or if a substantial change is made in the method of
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establishing such Consumer Price Index,then the Consumer Price Index shall be adjusted to the figure that
would have resulted had no change occurred in the manner of computing such Consumer Price Index. In the
event that such Consumer Price Index (or a successor or substitute index) is not available, a reliable
governmental or other nonpartisan publication,evaluating the information thereto for use in determining the
Consumer Price Index,shall be used in lieu of such Consumer Price Index. Said increase shall be provided
by LESSOR in writing to LESSEE no later than thirty(30)days following the renewal term.
ARTICLE 5. Other Expenses and Charges
LESSEE shall pay all interior janitorial, electricity and telephone charges pertaining to the Demised
Premises.LESSEE shall maintain the air-conditioning filters within the Demised Premises.
LESSOR shall be responsible for all elements of the maintenance and repair of the building and the
Demised Premises not stated above, including but not limited to,plumbing, electrical and air-conditioning
. systems, landscaping enhancements and/or replacement and irrigation, as well as waste removal, water,
sewer,pest control and lawn maintenance.
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 prior 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 written rejection delivered by
LESSOR to LESSEE regarding 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 having jurisdiction over the Demised Premises.
All alterations, improvements,and additions to said Demised Premises shall at once,when made or
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 thirty(30) days thereafter, if LESSOR so
directs, LESSEE shall promptly remove all such additions, improvements, alterations, fixtures and
installations which were placed in,on or upon the Demised Premises by or on behalf of 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.
ARTICLE 7. Access to Demised Premises
•
LESSOR, its duly authorized agents, representatives and employees, shall have the right after
reasonable oral 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 provisions of this Lease Agreement.
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, or to permit any other persons, other than another County agency, to occupy same
without the prior expressed 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.
•
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ARTICLE 9. Indemnity and Insurance
To the extent legally possible, the parties will continue the insurance arrangements in effect at the
time of the commencement of this Lease, adjusted only so far as necessary to account for their change in
legal position vis-à-vis.
ARTICLE 10. 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 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 the
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 11. 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 thirty (30) days written notice to
LESSEE, unless the default be cured within that notice period (or such additional time as is reasonably
required to correct such default).
ARTICLE 12. 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 written notice from LESSEE to
LESSOR properly specifying wherein LESSOR has failed to perform any such obligations.
ARTICLE 13. 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:
Board of County Commissioners Domenico and Maria LaGrasta
do Real Estate Services 506 106th Avenue North
3301 Tamiami Trail East Naples,Florida 34108
Administration Building
Naples,Florida 34112
cc: Office of the County Attorney
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, 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 LESSEES
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 LESSEE.
3
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2/11/2014 16.E.7.
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.
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 Agreement shall become effective upon execution by both LESSOR and LESSEE.
ARTICLE 19. Governing Law
This Lease Agreement shall be governed and construed in accordance with the laws of the State of Florida.
IN WITNESS WHEREOF,the parties hereto have hereunder set forth their hands and seals.
AS TO THE LESSEE:
DATEDI .�L• `u a 7 BOARD OF COUNTY COMMISSIONERS,
COLLIER COUNTY,FLORIDA
ATTEST:
DWIGHT E:BROC K,Clerk.
BY: . i A BY:
Dcouty u i .r411 rue JAMES OLETTA,Chairman
signature o1•
AS TO THE LESSOR:
DATED: /— JO- a o O 7
WITNESSES AS TO BOTH:
BY: LA, -�
a. D•MENICO l'l19GRAS
WITNESS(signatu
CP--SCe 't o `( -2 O
print name
MARIA bGRASTA
/WITNESS(signature)
V (
VC Ni %,�i'f,lJ
print name
Approved as to form and 1 al sufficiency:
.c vv. ithav------Th
Thomas C.Pal er,Assis t County Attorney
4
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License#
FIRST AMENDMENT TO LEASE AGREEMENT
THIS FIRST AMENDMENT TO LEASE AGREEMENT entered into this /0 'day of
2009 at Naples,Collier County,Florida by and between Collier County,a political
subdivision of th State of Florida,whose mailing address is 3301 East Tamiami Trail,Naples,Florida 34112,
hereinafter referred to as"LESSEE," and Domenico and Maria LaGrasta whose mailing address is 506 106th
Avenue North,Naples,Florida 34108,hereinafter referred to as"LESSOR."
WITNESSETH
WHEREAS, Collier County and Domenico and Maria LaGrasta have previously entered into a Lease
Agreement dated February 15,2007;
WHEREAS,the LESSOR and LESSEE are desirous of amending the Lease Agreement;
NOW THEREFORE,in consideration of the covenants and agreements provided within said Lease Agreement
dated February 15,2007,and Ten Dollars($10.00)and other valuable consideration, said Lease Agreement is
hereby amended as follows:
1. The following provision shall be added to Article 2 of the Lease Agreement:
This Lease is hereby extended until February 14,2012,hereinafter referred to as the"Extended Lease
Term,"and LESSEE is granted the option,provided it is not then in default of any of the terms of this Lease,to
renew same for two (2) additional one (1)year terms,under the terms and conditions as provided herein,by
giving written notice of LESSEE'S intention to do so to the LESSOR not less than thirty(30)days prior to the
expiration of the leasehold estate hereby created. Said notice shall become effective upon actual receipt by
j LESSOR.
LESSEE, however, reserves the right to terminate this Lease, with or without cause,upon sixty days
prior written notice of such termination to LESSOR at the address set forth in ARTICLE 13 of the Lease
Agreement. Said notice shall be effective upon actual receipt by LESSOR.
2. The following provision shall be added to Article 3 of the Lease Agreement:
The base rent for the period of February 15,2009 to February 14,2012,shall be$4,400.00 per month.If
LESSEE elects to renew this Lease as provided for herein, the annual rent shall be increased by mutual
II agreement by both parties for each renewal term following the Extended Lease Term, in which no single
increase shall exceed five(5)percent.
3. Except as expressly provided herein, the Lease Agreement between Collier County, a political
subdivision of the State of Florida, and Domenico and Maria LaGrasta for the utilization of the Demised
Premises described in said Lease Agreement dated February 15,2007,remains in full force and effect according
to the terms and conditions contained therein, and said terms and conditions are applicable hereto except as
expressly provided otherwise herein.
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:
DATED: rM.). /0, p.009
WITNES/ S A O H:
���• BY: a
Witness(Signature) DOMENICO LAGRASTA
G'u /he r2-�4
(Prifit Name) BY: :... 6 ,4(1.4o/1:...--
MARIA LAGRASTA
•
Witness(Signature)
STEUEnI 1A. SL DC 1k
(Print Name) 7
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AS TO THE LESSEE:
DATED:o7 G 9
Al' 11r , BOARD OF COUNTY COMMISSIONERS,
`` COLLIER COUNTY,FLORIDA
PWIf iT E:BRaCIC,Clerk
pep*Cletle3 DONNA
itaiest
its t0oaef FIALA,Chairman
bT3tnD`
.k.
Approved as to form and legal sufficiency:
I i
Jennifer 'Belpedio,As% t County Attorney
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