Agenda 02/11/2014 Item #16K2 2/11/2014 16.K.2.
EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners directs the County Attorney
to work with the County Manager, or his designee, to negotiate with the current owners
of 1250 Pine Ridge Road on the matter of the terms and obligations of the Fee Payment
Assistance Agreement executed between Collier County and Advanced Medical Center,
LLC, and in the event a mutually agreed upon solution cannot be reached, authorize the
Office of the County Attorney to initiate any and all legal action including, but not
limited to, lien foreclosure.
OBJECTIVE: To enforce a Fee Payment Assistance Agreement.
CONSIDERATIONS: On May 9, 2006, the Board approved an application by Advanced
Medical Center, LLC (Advanced Medical) to participate in the Fee Payment Assistance
Program, based on the company's intent to construct a new medical building, serving as the
company's headquarters, and create 20 high wage jobs. On July 12, 2006, a Fee Payment
Assistance Agreement was executed between Collier County and Advanced Medical for the
payment of impact fees totaling $412,146.00 on behalf of the company.
For some time Ms. Patterson and I have been in discussions with the Clerk's Internal Audit
Department on this matter. A copy of the Clerk's Audit Report is included as a supplement to
this item. The Report sets forth the underlying facts and issues in detail, which will not be
repeated here. Although there have been ongoing issues with this project for some time, it had
been the opinion of the County Attorney that as long as the required jobs were in place, the
matter was not yet ripe for legal action. That has recently changed.
In May of 2013, staff became aware of a pending foreclosure action on the subject property.
Notices were immediately sent to all parties advising them of the terms and obligations of the
Fee Payment Assistance Agreement, as directed by the County Attorney's Office. Arising
from the foreclosure, a Certificate of Title was issued on May 22. 2013 to Capital Bank, N.A.
Since that time the County Attorney has had informal meetings with counsel to the bank.
In September 2013. representatives, from Advanced Medical advised the County that the
company's business and assets had been transferred to Advance Medical of Naples, LLC.
Advance Medical of Naples continued to operate in the building, and provided information
stating that they employed 76 people as of October 2013. However, in January 2014 it was
reported that the property owners were considering evicting Advance Medical. On February 4,
2014 staff confirmed through a site visit that Advance Medical of Naples was no longer
conducting business at 1250 Pine Ridge Road, having relocated to another site in Collier
County.
The Fee Payment Assistance Agreement requires the creation of 20 high wage jobs, and their
retention until the conclusion of the 1 0-year Agreement, which ends October 1, 2017. With the
required jobs no longer at the site, this Fee Payment Assistance Agreement was substantially
breached.
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FISCAL IMPACT: Uncertain at this time.
GROWTH MANAGEMENT IMPACT: None.
RECOMMENDATION: That the Board of County Commissioners directs the County
Attorney to work with the County Manager, or his designee, to negotiate with the current
owners of 1250 Pine Ridge Road on the matter of the terms and obligations of the Fee Payment
Assistance Agreement executed between Collier County and Advanced Medical Center, LLC,
and in the event a mutually agreed upon solution cannot be reached, authorize the Office of the
County Attorney to initiate any and all legal action including, but not limited to, lien
foreclosure, if necessary.
PREPARED BY:
Amy Patterson, Impact Fee Manager, Office of Management and Budget, and
Jeffrey A. Klatzkow, County Attorney, with thanks to the Clerk's Internal Audit Department
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COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.K.16.K.2.
Item Summary: Recommendation that the Board of County Commissioners directs the
County Attorney to work with the County Manager, or his designee,to negotiate with the
current owners of 1250 Pine Ridge Road on the matter of the terms and obligations of the Fee
Payment Assistance Agreement executed between Collier County and Advanced Medical
Center, LLC, and in the event a mutually agreed upon solution cannot be reached, authorize the
Office of the County Attorney to initiate any and all legal action including, but not limited to,
lien foreclosure. This is a.companion to Item 16J4.
Meeting Date: 2/11/2014
Prepared By
Name:NeetVirginia
Title: Legal Assistant/Paralegal. CAO Office Administration
2/5/2014 9:25:19 AM
Submitted by
Title: County Attorney,
Name: KlatzkowJeff
2/5/2014 9:25:21 AM
Approved By
Name: KlatzkowJeff
Title: County Attorney,
Date: 2/5/2014 2:28:41 PM
Name: IsacksonMark
Title: Director-Corp Financial and Mngmt Svs, Office of Management&Budget
Date: 2/5/2014 3:01:45 PM
Name: KlatzkowJeff
Title: County Attorney,
Date: 2/5/2014 3:07:02 PM
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Name: IsacksonMark
Title: Director-Corp Financial and Mngmt Svs, Office of Management&Budget
Date: 2/5/2014 3:29:25 PM
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Prepared by:
Jeffrey A.Kiatzkow
Assistant County Attorney
3301 Tamiami Trail East
Naples,FL 34112
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AGREEMENT FOR FEE PAYMENT ASSISTANCE PROGRAM
This Agreement for Fee Payment Assistance for the payment of Impact Fees is entered
into this 12 ' day of -5.4 1�. , 2006, by and between Collier County, a political
subdivision of the State of Florida, through its Board of County Commissioners, hereinafter
referred to as "County," and Advanced Medical Center, LLC, hereinafter referred to as "Property o▪ ° __
Owner,"collectively stated as the"Partie , -_ c
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WHEREAS, Collier County ' rdxnariee-Nk 29,03-61 ythe"Collier County Fee Payment
no es
: &�" s�. • time codified in Chapter 49 of y o
Assistance Ordinance, as it may be -;�€n �(} \,/
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�( 1 \i'' I k \\ 1 ) ) V I au o "•J
the Code of Laws and OrdinaiceS of)Ciellt`er)County �oda ,hereinafter referred to as the o '"
"Ordinance," provides for Fee-Payment Asststance"• for payment- of impact fees to qualifying gs L?
/ aso
businesses; and �-� �, i i,� ' • o 10.--2 I q w
WHEREAS, on Apnl Prop viner submitted an application to be
considered for the Fee Payment Asststarrce Pr ograrn fora project involving the construction of a
0 oa
28,100 square-foot Regional Headquarters office, which application proposed to create 20 new y
Or
jobs in Collier County by June 30, 2009. at an average wage of$55,735.00, which is 163% of
Collier County's current average wage. A copy of this application is on file in the Impact Fee
Administration office of the Operations Support and Housing Department; and
WHEREAS, the County Manager, or his designee, reviewed the application and, based
on the representations therein, found that it complied with the requirements for fee assistance as
outlined and set forth in the Ordinance; and
WHEREAS, based on the Property Owner's representations set forth in the Application
and on recommendation from staff, the Board of County Commissioners approved Fee Payment
Assistance Funds in the sum of $412,146.00, and also approved a reimbursement of prepaid
Transportation Impact Fees in the sum of$126,742.68; and
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WHEREAS, the Ordinance requires that the Property Owner enter into an Agreement for
Fee Payment Assistance with the County, to be executed by the County Manager.
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 Parties agree as follows:
1. The foregoing Recitals are true and correct and are incorporated by reference
herein.
2. The legal description of the development (hereinafter referred to as the "Property")
is attached as Exhibit"A", and is incorporated by reference herein.
3. Property Owner represents and warrants that they are the owner of record of the
Property, and acknowledges that pursuant to the Impact Fee Ordinance owes impact fees for
Road, EMS, Correctional Facilities, Qveifr ~ Iertt,8uildings and Law Enforcement in the
total amount of$413,092.70, as rnore,specifically set forth nr-attached Exhibit "B", incorporated
by reference herein.
4. The amount of fthe Arn}z fepaitb ,t�i �rggrrn will in all events become due
and payable and shall be immedi to y\re paid to the County/ Itne Property Owner if the
Property is sold or transferreithout prior written 'pprovhl fro rtl:e County at any time after
the first certificate of occupancy)as been issued for th'e eVelepment and prior to the 10-year
obligation period, or prior to the,‘115.4ear„,obligation_periti,d.far a project within an enterprise
community, and the impact fees must lie -in tfii l o e County. Any outstanding(i.e., as yet
not repaid) impact fee amounts previously paid under this program will become due and payable
and must then be immediately repaid to the County in the event of sale or transfer prior to
expiration of the program obligation period. If not so repaid, the obligation will be a lien on the
Property as set forth below.
5. The payment of impact fees via the Fee Payment Assistance Program will constitute
a lien on the Property which lien may be foreclosed upon in the event of non-compliance with
the requirements of this Agreement, or should any of the representations set forth in the
Application be untrue or unfulfilled. The amount specified in this Agreement will serve as the
amount of a lien against the Property. Neither the payment of impact fees nor this Agreement
may be transferred, assigned, credited or otherwise conveyed without the prior written approval
from the County, which approval may be freely withheld.
2
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OR. 07i 2/11/2014 16.K.2.
6. On Property Owner's request, and at the County's sole option, the County's interest
may be subordinated to all first mortgages or other co-equal security interests. The County's
interest will automatically be subordinate to the Property Owner's previously recorded first
mortgage and/or any government funded affordable business loan such as the U.S. Small
Business Administration (SBA) or the U.S. Department of Agriculture (USDA) loan.
7. By way of example and not as a limitation, this Agreement will be in substantial
breach upon the following events: (I) any change in the status of the occupancy, type of business
conducted, or compliance with the requirements of the Program, as set forth in either the
Ordinance or this Agreement; (2) upon the County Manager being informed of a material
misrepresentation in the Application; or (3) at any time during the term of this Agreement
following June 30, 2009, in which the proposed development does not have 20 new jobs in
Collier County at an average wage of$55,735:00:----7—_,
8. Upon the County's requ.es -thh Property�{C vPnet will provide all documentation
required to verify compliance tivitl the terms of the Ordinance ortthis Agreement. In the event
the Property Owner is in default%under this Agreement! and the default is not cured within 30
days after written notice is provided'` o ie�fi"Pippenty pyner`ta'e county may bring a civil action
.t t t n= C,
to enforce this Agreement or dee az~e-tbai'-p : aymht f tbtrimpact fees not yet recouped
and previously paid under thzs.pro,gram are thence im t dia'telydue and payable. The County is
entitled to recover all fees and costs;\,including attorney's'fees and costs, incurred by the County
in enforcing this Agreement,plus ii erest at-the..then-nra`x n ttrn statutory rate for final judgments,
calculated on a calendar day basis until paid=-these-rights and remedies of the County are in
addition to any other rights and remedies that the County may have should the Property Owner
be in default or otherwise violate the terms of the Ordinance or this Agreement.
9. This Agreement will expire 10 years after the first certificate of occupancy has been
issued for the development. Following this expiration, and upon satisfactory completion of all
requirements of this Agreement, at Property Owner's request and sole expense, the County will
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.
10. This Agreement will be recorded in the official records of Collier County at
Property Owner's sole expense.
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OR; 4071 2/11/2014 16.K.2.
11. As a prerequisite to the issuance of the Building Permit(s) for the Development of
the Property, a copy of this Agreement may be required to be presented to the County in order
for the allocated Fee Payment Assistance funds to act as payment of impact fees, which would
otherwise be required to be paid by the Property Owner.
IN WITNESS WHEREOF, the Parties have executed this Agreement on the date and
year first above written.
WITNESS: ADVANCED MEDICAL CENTER, LLC:
,6„. „,./fey„,,,,, By. % •O
Signed r— RE 0 • . LEACH, MANAGER
& mAiLy eiA kk/itk:..--,,-' .-jv .-_'_,.------- ----_,-,y,....
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Print Name ` ` ,.,
WITNESS: _ M1 l ,
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Signed '.� ` ' ' : _
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Print Name \,----`� `-,' `'
ra -;
STATE OF FLORIDA)
COUNTY OF COLLIER)
The foregoing Agreement was acknowledged before me this Ian day of
„__i1 2006, by Gregory E. Leach, Manager of Advanced Medical Center, LLC,
is pers nally known to me or has produced as
proof of identity.
[NOTARIAL SEAL]
Signature of Person Taking Acknowledgment
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Page 4
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. . OR: 4071 r is ii/5
COLLIER CNTY, FLORIDA
COUNTY,
I
By:
J S V. MUDD, COUNTY MANAGER
STATE OF FLORIDA)
COUNTY OF COLLIER)
The foregoing Agreement was acknowledged before me this t day of
--S,—)\ ..-.1- , 2006, by James V. Mudd, County Manager, on behalf of the County, who is
personally own to me.
. .-.. -_---i-e--/-1- r- ib,
[NOTARIAL SEAL] Signature of Person Taking Ackno e�►I dgment
Pr1 `, °�
.... II► .. . �j {
AT),roved as to form and i i i I ,do's;mend€Appr•val:
leg•l su 'c y: r`,;�!,.....4``ti. ,/ f ,=.
Alifitgli ,, ..••• \
Jeffr.�A. K tz ow i,enttin�.,B-aker, Director
Assis1nt C• i ty Attorney II ' 1 Ckierations Support and Housing
Page 5
. ............
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OR: 4�� 2/11/2014 16.K.2.
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CU. J.Jry
EXHIBIT "A"
OWNERSHIP
• ADDRESS
LEGAL DESCRIPTION
Advanced Medical Center,LLC
1250 Pine Ridge Road, Naples Florida 34105
Begin at the Southwest corner of Lot 6 Presque Isle, according to plat thereof recorded in Plat
Book 4, Page 48, of the public records of Collier County, Florida; thence run North 00°06'54"
East along the West line of said Lot 6, for a distance of 301.58 feet to a point on the South right
of way of State Road 896; thence run North 89°47'28'" East, along the South Iine of said State
Road 896, for a distance of 330.00 feet; thence__run1South 00°06'54- West for a distance of
301.55 feet to a point on the North line zi nio'Gutiiens Unit No 1, as recorded in Plat Book
3, Page 71 of the public records of CQl i� r-county,-`P`h t a.aaiso being the South line of Lot l of
Presque Isle, according to a plat ereof recorded in Plat)3Qolt i,, Page 48, of the public records
of Collier County, Florida; thence t'un South 89 047'07" West `along said North line of said
Sorrento Gardens Unit No I; and th ''Soouth line Presque Isle, for a distance of 330.00
feet to the point of beginning
Containing 99,513.4 square feet or,2 2 ,mbr or les. L, 1
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*** OR: 4071 ru. 1JII
Advanced Medical Center, LLC
1250 Pine Ridge Road,Naples Florida 34105
EXHIBIT `B"
IMPACT FEE BREAKDOWN
Type of Impact Fee Amount Owed
A. EMS Impact Fee $3,455.85
B. Correctional Facilities Impact Fee $3,270.84
C. Road Impact Fee _____. $373,876.99
D. General Government Buikd v; tapa_E 7 S29,422.57
E. Law Enforcement Impacf Fee $3,066.45
TOTAL IMPACT FEES i If €( f 1 �,i \ vi $413,092.70
-'----f/
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TOTAL FEE PAYMENT DISTANCE 1 $412,146.00
DUE FROM ADVANCED MEDICAL CENTER,,,-LL-C 946.70
WATER,SEWER AND FIRE IMPACT FEES TO BE PAID BY ADVANCED MEDICAL CENTER,LLC
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