Agenda 03/25/2014 Item #16G1 3/25/2014 16.G.1 .
EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners, in its capacity as the Collier
County Airport Authority, authorize staff to accept a payment plan that was proposed during
discussions with Gulf Coast Design Products,Inc.
OBJECTIVE: To obtain the Board of County Commissioners approval for staff to accept the
payment plan offered by Gulf Coast Design Products, Inc. This plan requests a waiver of the interest
charges associated with past due rent.
CONSIDERATIONS: On February 25, 2014 under item 1IB the Board directed staff to work
with the tenants of the Airport Authority to achieve compliance with all lease requirements.
During staffs review of Airport leases it was noted that Gulf Coast Design Products, Inc. was
$22.864.60 (eleven months total) behind in payments on its sub-lease with the Immokalee
Regional Airport. Based on an analysis of account activity, staff determined that $3,003.43 in
interest charges (15% per year on the past due rent) were owed as well. It was also determined
that only$421.09 of interest charges had been recorded in the financial records.
In mid-February 2014 staff began communications with the tenant with the goal of bringing them
current on their rent payments as soon as possible. The tenant immediately paid two of the back
rent payments, and entered into a dialogue aimed at resolving the remaining nine months due. As
a result of these discussions, staff agreed to support and bring to the Board a payment plan that
would provide for waiver of the interest charges if all the remaining back rent was paid by the
end of 2014 in strict accordance with the agreed upon payment schedule (Exhibit A). Staff
believes that an interest charge waiver is reasonable in light of the fact that the Airport had not
computed and included these charges on the tenant's invoices. Failure to invoice the tenant does
not obligate the Airport to waive the interest charges, but is being requested in order to
incentivize prompt payment.
If the Board authorizes this payment plan, the County Attorney's Office will draft the formal
agreement for execution. Once the tenant fulfills its obligations under this agreement (current or
rent payment by the end of calendar year 2014) the Airport will write off the interest. Between
now and that point however the interest will continue to accrue. If the conditions of the
agreement are not fulfilled, the accumulated interest amount will also be due upon demand at the
end of 2014.
•
Note that the sub-lease agreement with Gulf Coast Design Products, Inc. expired in January
2007. As a result, the tenant has effectively been on a month to month tenancy for the past 7
years. Furthermore, rent reductions that were granted in February 2009. but not formalized in an
executed sublease, reduced the rental rate to $2.04 per square foot. Staffs intent is to give the
tenant an opportunity to get current. within a reasonable period of time. while simultaneously
working to negotiate and execute a fair market based sublease to take effect January 1st 2015.
when the payment plan period expires.
FISCAL IMPACT: There is no fiscal impact associated with this Executive Summary.
GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact associated with
this Executive Summary.
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3/25/2014 16.G.1 .
LEGAL CONSIDERATIONS: The County Attorney's Office has reviewed this item and
approved it as to form and legality. Majority support is required for approval. - KN
RECOMMENDATION: That the Board of County Commissioners, in its capacity as the Collier
County Airport Authority, authorize staff to the accept Gulf Coast Design Products, Inc.
proposed payment plan and write-off the interest charges once the tenant fulfills their obligations
under the proposed payment plan and authorize the Chairman to execute updated lease &
payment plan.
Prepared by: Gene Shue, Operations Director, Growth Management Division
Attachment: 1)Exhibit A, Gulf Coast Design Products Payment Plan
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3/25/2014 16.G.1.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.G.1
Item Summary: Recommendation that the Board of County Commissioners, in its capacity as the
Collier County Airport Authority, authorize staff to accept a payment plan that was proposed during
discussions with Gulf Coast Design Products,Inc.
Meeting Date: 3/25/2014
Prepared By
Name: dianelynch
Title: Supervisor-Operations,Road Maintenance
Approved By
Name: geneshue
Title:Director-Operations Support, Transportation Administration
Date: 03/06/2014 09:02:57 AM
Name: dianelynch
Title: Supervisor-Operations, Road Maintenance
Date: 03/07/2014 08:47:39 AM
Name: AllisonKearns
Title: Manager Financial &Operational Support, Transportation Administration
Date: 03/07/2014 03:47:35 PM
Name: kevinnoell
Title:Assistant County Attorney, CAO General Services
Date: 03/07/2014 04:22:55 PM
Name: marcellajeanne
Title:Executive Secretary. Transportation Planning
Date: 03/11/2014 01:02:15 PM
Name: markisackson
Title: Director-Corp Financial and Mngmt Svs, Office of Management&Budget
Date:03/13/2014 11:27:58 AM
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3/25/2014 16.G.1 .
Name: klatzkowjeff
Title: County Attorney,
Date: 03/14/2014 10:17:00 AM
Name: ochs_l
Title: County Manager, County Managers Office
Date: 03/14/2014 04:26:48 PM
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3/25/2014 16.G.1 .
Exhibit A
Gulf Coast Design Products, Inc - Payment Plan
Regular Extra Extra Rent Payment
Rent Rent Total Due Related to:
March 2014 $ 2,078.60 $ - $ 2,078.60
April 2014 $ 2,078.60 $ 2,078.60 $ 4,157.20 June 2012
May 2014 $ 2,078.60 $ 2,078.60 $ 4,157.20 July 2012
June 2014 $ 2,078.60 $ - $ 2,078.60
July 2014 $ 2,078.60 $ - $ 2,078.60
August 2014 $ 2,078.60 $ - $ 2,078.60
September 2014 $ 2,078.60 $ 2,078.60 $ 4,157.20 August 2012
October 2014 $ 2,078.60 $ 4,157.20 $ 6,235.80 September&October 2012
November 2014 $ 2,078.60 $ 4,157.20 $ 6,235.80 November&December 2013
December 2014 $ 2,078.60 $ 4,157.20 $ 6,235.80 January&February 2014
Past Due Related Total ----- ------1 $ 18,707.40 )
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