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Agenda 12/01/2009 Item #16E 1 Agenda Item No. 16E1 December 1, 2009 Page 1 of 9 ,.'.', EXECUTIVE SUMMARY Recommendation to approve First Amendment to Lease Agreement, aka the cattle lease, for the Pepper Ranch Preserve under the Conservation Collier Land Acquisition Program. OBJECTIVE: To obtain approval from the Board of County Commissioners (Board) of the attached First Amendment to Lease Agreement, aka the cattle lease, for the Pepper Ranch Preserve under the Conservation Collier Program. CONSIDERATIONS: The Pepper Ranch Preserve was purchased by Collier County on February 6, 2009. It is located north and west of Lake Trafford, and west of Immokalee, Florida. The Preserve consists of ten parcels totaling 2,511.9 acres located within Sections 22, 26, 27, 28,33 & 35, Township 46 South, Range 28 East, Collier County. ,- At the time the ranch was acquired, Collier County entered into a lease agreement with Lake Trafford Ranch LLLP for 2.012.1 acres of property for the sole purpose of cattle grazing and incidental activities that are directly related to beef cattle production. Approximately 200 head of cattle are pastured on the Pepper Ranch Preserve. Having cattle present assists Preserve land managers to more smoothly transition uses of the ranch from agricultural to preservation over time. The original lease agreement involved an annual rent to be paid to Conservation Collier of $2,012, or $1 per acre, per year, a locally standard lease fee for cattle grazing. This lease also required the lessee to mow the improved pastures at least one time per year and to erect and maintain internal cattle fencing. Shortly after the lease went into effect, it was determined that the acreage amounts and locations identified in the agreement were not entirely accurate. Additionally, it was determined that two electric service accounts existed which primarily served the lessee in cattle management areas (well pump and cattle pen lighting). As a result, an amendment to the original lease was drafted and additional terms were negotiated, including: . Leased acreage was increased by 281 acres, from 2,012 acres to 2,293 acres, to reflect existing pasture areas that are being used for cattle grazing. . Additional mowing was negotiated in lieu of rent payment, to include an additional 9 acres of open pasture adjacent to the lodge, to be mowed a minimum of six times per year, an additional 1.3 mile long hiking trail and 1.1 mile long firebreak, both to be mowed at a minimum of 2 times per year. . Language requiring all expenses related to utilities used solely by the Lessee to be paid for by the lessee. . Additional lease termination language was developed to provide for a smooth transition when the cattle lease ended. Additional certainty was built into time frames to protect both parties at lease termination. Notably, the County can no longer terminate the cattle lease without cause during the initial term of the lease. This amendment is at the request of the Lessee who has over the past seven months demonstrated that its presence is advantageous to the County. .-- '_', ._,__~,..._<n"._,....'" ,- .,.,. ..... "".,-,"""..".",..'" ,.,.<,~,_._d._ Agenda Item No. 16E 1 December 1, 2009 Page 2 of 9 FISCAL IMPACT: The original lease provided for the payment of rent from the lessee to the Conservation Collier Program in the amount of $2,012 per year. The amount of the additional acreage would have increased that payment to $2,293 per year. Staff calculated the cost of mowing an additional 9 acres, where visitor use would be most frequent, a 1.3 mile trail and 1.1 mile firebreak at $4,257 ($3,000 for the pasture and $1,257 for the trail and fire lines) and negotiated an exchange with the lessee for mowing services in lieu of annual rent, saving the Conservation Collier Program $1,964 per year. GROWTH MANAGEMENT IMPACT: Management of Conservation Collier lands to support appropriate public access is consistent with and supports Policy 1.1.6 and Objective 1.3 in the Recreation and Open Space Element of the Collier County Growth Management Plan. LEGAL CONSIDERATIONS: This item has been reviewed and approved by the County Attorney's Office and is legally sufficient. Once signed by the Lessee, it will be forwarded to the Board chair for signature JBW. RECOMMENDATION: That the Board of County Commissioners approves the attached First Amendment to Lease Agreement negotiated with Lake Trafford Ranch LLLP and directs the County Manager, or his designee, to implement it for the Pepper Ranch Preserve. PREPARED BY: Melissa Hennig, Manager, Conservation Collier Program, Department of Facilities Management Agenda Item No. 16E1 December 1, 2009 Page 3 of 9 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: Item Summary: 16E1 Meeting Date: Recommendation to approve First Amendment to Lease Agreement, aka the cattle lease, for the Pepper Ranch Preserve under the Conservation Collier Land Acquisition Program. 1211/2009 9:00:00 AM Approved By Skip Camp, C.F.M. Director - Facilities Management Date Administrative Services Division Facilities Management 11/21200912:21 PM Approved By Len Golden Price Administrator ~ Administrative Services Date Administrative Services Division Administrative Services Division 11119120091 :S4 PM Approved By Jennifer White Assistant County Attorney Date County Attorney County Attorney 11/24120098:59 AM - Approved By Jeff Klatzkow County Attorney Date 11/24/20099:56 AM - .~.~ ..."~.. "" _.,.~"- Agenda Item No. 16E 1 December 1, 2009 Page 4 of 9 Lease #CC - 102 FIRST AMENDME:'IJT TO LEASE AGREEMENT THIS FIRST AMENDMENT TO LEASE AGREEME1\:T entercd into this _ _ day of - .... 2009, at l'\aplcs, Collier County, Florida by and between LAKE TRAFFORD RANCH, LLLP, a Florida limited liability limited partnership, whosc mailing address is 48] Cariea Road, Naples, Florida 34108, hereinafter referred to as "LESSEE," and COLLIER COUNTY, a political subdivision of the State of Florida, whose mailing address is 3301 East Tamiami Trail, Naples, Florida 34112, hcreinaflcr referred to as "LESSOR." WITNESSETH WHEREAS, the LESSEE and LESSOR have previously entered into a Lcase Agrecment ("Lease Agreement") datcd February 2, 2009; WHEREAS, the LESSEE and LESSOR are desirous o[ amending that Lease Agrecment; and NOW, THEREFORE, in consideration o[ the covenants and ab'Tcements provided within the said Lease Agreement dated Febru~ry 2, ~0()9, and Ten Dollars ($ 10,(10) and other valuable consider~tion, the Lease Agreement is hereby amended as follows: 1. Alticle I, Demised Premises and Use, first paragraph of the Lease Agreement is hereby deleted in its cntirety and the following provision is substituted in its place: LESSOR hereby leases to LESSEE and LESSEE hereby leases from LESSOR Two Thollsand Two Hundred Ninety Three (7,293) acres of property dcscribed in Exhibit "A," whieh is attaehed hereto and made a pan of this Lease, hereinafter called the "Demised Premises," situated in the County of Collier and the State of Florida, for the sole purpose of eattle grazing and incidental activities that are directly related to beef cattle production. 2. The Exhibit A contained in the Lease Ab'Tecment is replaced with the Exhibit A attached to this Amendment. 3. Atticlc 2, Tenn of Lease. of the Lease Agreement is hcreby deleted in its entirety and the following provision is substituted in its place: LESSEE shall have and hold the Demised Premises for a tcrm of three (3) years, commencing on the date LESSOR exccutes this Lease, hereinafter referred to as the "Initial Term." LESSEE is granted the option, provided LESSEE is not in default of any o[the terms of this Lease, to renew same for two (2) additionalteffi1S of onc (]) year each, under the same tenus and conditions, as provided hercin, by giving written notice of LESSEE'S intention to do so to the LESSOR not Jess than thiny (30) days prior to the expiration of ule Initial Tcnn. Said two additional one year tenns are hereinafter referred to as the "First Extended Tenn." '-.-0 Agenda Item No. 16E1 December 1, 2009 Page 5 of 9 If this Lease Agreement is not temlinated Plior to the expiration of the First Extended Telm, the LESSEF is granted the option, provided LESSEE is not in default uf any of the terms of this Lease, to renew same for five (5) addltiona] telms of one (1) year, under the same tenns and conditions, as provided herein, by giving written notice of LESSEE'S intention to do &0 to the LESSOR not less than thirty (30) days prior to the expiration of each additional tenn of one (1) year. Said five additional one year tcrms are hereinafter referred 10 as the "Second Extended Tenn." LESSOR reserves the right to deny LESSEE, in \\Tltmg, of any r~newalterm during the Second Extendcd Tenn. During the Initial Term, First Extcnded Term, and Second Extcnded Term, LESSEE reserves the light to tcrminate this lease, without cause, by providing LESSOR "1th at least thirty (30) days written notice to the addrcss set forth in ARTICLE ]4 of this Lease. Upon termination of this Lease, LESSEE will have nincty (90) days to make arrangements to rcmove thc existing cattle, during which ninety (90) days the callIe must rcmain. During the Initial Tenn and First Extcndcd Tcrm, LESSOR shall not temlinate this lease without cause. During the Second Extended Term, LESSOR may temlinate this Lcase or deny rcnewal of this lease, without cause, by providing LESSEE with thiliy (30) days written notice to thc address set forth in ARTICLE 14 of this Lcase, Upon termination or non-renewal of this Lease, existing callIe must be rcmoved within three hundred sixty five (365) days of the date of said termination, but within no less than ninety (90) days thcrcafter. During the period of time that LESSEE remains in possession after such termination, LESSEE shall continue to have said mowing obligations as described in Article 3 or may pay rent proratcd at the amount descrihed in Article 12, however, LESSEE shall not be liable for any interest thereon as dcscribed in said }\rticle 12. Such mowing or rent obligations shall cease when LESSEE vacates the Demiscd Premiscs, LESSEE and LESSOR reserve the right to tcrminate this Lcasc, with cause, upon default by the other party as described in Article 12 and in Article 13, after any cure or grace pcriod during the entirc tcrm of this Lease, by providing the othcr party with thirty (30) days written notice to the address sct forth in ARTICLE 14 of this Lease. Upon termination of this Lcase, LESSEE will have nincty (90) days aftcr termination to make arrangemcnts to remove the cxisting cattle, during which ninety (90) days the caltlc must remain. All notices shall be effective upon placement of the noticc in an official depository of the United States Post Office, Registcred or Certificd Mail, Postagc Prepaid. 4. Article 3, Rent, of the Lease Agreement is hereby deleted in its entircty and the following provision is substitutcd in its place: In lieu of rcnt for the Demised Premises, LESSEE, at its sole cost and cxpense, shall mow the approximately 9 acrcs of opcn pasture adjaccnt to the lodgc near Lake Trafford at a minimum of six (6) mowing times pcr ycar, designatcd by the LESSOR, within the Demiscd Premises, and a one point three (1.3) mile-long hiking trail and a one point one (1.1) mile-long firebreak, designated by the LESSOR, within the Demised Prcmises at a minimum of two (2) mowing times per year, .- --"-~_._- '....- Agenda Item No. 16E1 December 1 , 2009 Page 6 of9 5. Article 4, Renewal Term Rent, of the Lease Agreement is hereby deleted in its entirety. 6. Article II, Maintenance, the following provision is added: Any expense related to utilities used solely by The LESSEE shall be paid for by the LESSEE. 7. l\..rticle l2, Defaull by LESSEE, fourth paragraph of the Lease Agreement is hereby deleted in its entirety and the following provision is substituted in its place: If LESSEE fails to perform the covenants, tern1s and conditions required of LESSEE, as specified in Article 3 of this Lease, LESSEE shall pay LESSOR the sum of Two Thousand Two Hundred 1\inety Three Dollars and No Cents (P .2(3) per year. In the event LESSEE elects to renew this Lease, as provided for in ARTICLE 2, mHl if LESSEE fails to perform the covcnants, terms and conditions required of LESSEE, as specified in Article 3 of this Lease, the rent of Two Thousand Two Hundred Ninety Three Dollars anJ 1\0 Cents (S2,293) per year shall be increased for each ensuing one (J) year rencwal tem1 by Jive (5) percent from tbe previous year. Any amount not paid promptly when due shall also "ecme interest at the rate of onc and one-half p~rcent per month or the highest interest ratc then allowed by Florida law, if lower, which interest shall be paid by LESSEE to LESSOR. 8. lu-tiele 19, Quiet Enjoyment Subject to LESSOR'S rights provided in this Lease, LESSOR covenants that LESSEE, on perfornling the covenants, tel1l1S and conditions required of LESSEE contained herein, shall peaceably and quietly bave, hold and enjoy the Demised Premises and the leasehold estate granted to LESSEE by virtue ofthis Lease Agreemcnt. 9. Except as expressly provided herein, the Lease Agreement remains in full force and effect according to the terms and conditions contained therein, mld said tenns and conditions are applicable hereto except as expressly provided otherwise herein. IN WITNESS WlIEREOF. the LESSEE and LESSOR have hereto executed this First Amendment to Lease Agrecmcnt the day and year iirst above written. AS TO THE LESSOR: DATED: ATTEST: DWIGHT E. BROCK, Clerk BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA '-'''''-- BY: __ ___m_ DONNA FIALA, Chairman ~--- Deputy Clerk __ _.,_'",..._.._"...._.~ '"'" ....,.,." '_'_"""""_.._,_0._' " - ,,'-"--~"., - --,. -- ,",,' ----""",",.,._",..."~".." ''''-,-'-~-'_.'~'''~'-' . Agenda Item No. 16E1 December 1. 2009 Page 70f9 Approvcd as to form and legal sufficiency: ^, ')"\~" , \ -' ,\. --t-- \, 1 ) 1\___/ I. ".H".~.~".. Jennifer B. White, Assistant County Attorney AS TO LESSEE: DATED: WITNESSES: (Signature) LAKE TRAFFORD RANCH, LLLP, a Florida limited liability Iimitcd partnership .-._.~. (print Name) BY: -~-,-- THOMAS M. TAYLOR, as General Partner ,'+', .-.'..--.-- (Signature) -.--. (Print Name) ---~ -- LAKE TRAFFORD RANCH, LLLP, a Florida limited liability limited partnership (S ignature) --- (print Name) BY: ----~ ---..-- CHRISTOPHER L. ALLEN, as General Partncr (Signature) ~"- -".~ (Print Name) -. ._--~_. -_.,,-..,-, .. ~~-_..._., --'-"---.. .,.-.,..... Agenda Item No. 16E 1 December 1. 2009 Page 8 of 9 Exhibit "A" (Legal Descriprion of Demised Premises) Property Tax Identification Number: 00052360002 A parcel ofland lying in the Southcast Quarter (SE'Io) of the Southwest QUaJter (SW~) and the West Half (WY;) of the Southwest Quarter (SW~!,) of the Southeast Quarter (SE'Io) of Section 22, Township 46 South, Range 28 Fast, Collicr County, Florida, being more particularly described as follows: Commence at the Southeast corner of Section 22. Township 46 South, Range 28 Fast, Collier County, FIOlida; thence run S 88'57'47" W, along the south line of the Southeast Quarter (SE'.!') of said Section 22 for a distancc of 1980.56 to the Point of Beginning of thc parcel of land herein deserioed; thence continue S 88057'47" W, along the south line of the Southeast Quarter (SE'/,) of said Section 22, for a distance of 660.19 fcet to the South Quarter comer of said Section )); thence run S 88057'47" W along the south linc oftbe southwest quarter of said Section 22, for a distance of ] 32] .SO fect; thence rim N 00038'44" W for a distancc of 1347.51 fcet; thencc run " 88059' 17" E, for a distance of 1324.63 feet; thence run " 88"59'31" E, for a distance of 660.24 feet; thence run S 00031 '22" E for a distaJlce of] 342.58 feet to the Point of Beginning; containing 61.13 acres, morc or less. AND Property Tax Identification Number: 00053000002 All of Section 28, Township 46 South, Rmlge 28 East, Collier County, Florida; containing 645.4 7 acres more or less. AND Property Tax Identification Number; 00052960004 All of Section 27, Township 46 South, Range 28 East, Collier County, Florida; containing 643.59 acrcs more or less. AND Property Tax Identification Number: 00053200006 All of Section 33, Township 46 South, Range 28 East, Collier County, Florida: contaiuing 706.33 acres more or less. .-,"',_ .." "~_"'.."',,."" r 1 ,",~."",.."".",,..., '~"'"'"'_'""_.'.''''''''7' ' .. -",.",- ,'.,,'" ".,"0'''''''' ".. """_~"____O""""'_"_' Agenda Item No. 16E1 December 1, 2009 Page 9 of 9 .,...._, A."ID the 'Additional Acreage' Property Tax Identification Number: 00052640007 A parcel of land located in a portion of Section 26, Township 46 South, Range 28 East, Collier County, Florida, being more particularly dcscribed as follows: The West Half (WY;) of Section 26, Township 46 South, Range 28 East, Collier County, FIOlida, less the North 1452.35 feet thereof and less tbc Southeast Quarter (SE ,.~) of the Soutbwest Quarter (SWY~) of said Section 26, and less that parcel of land, as describcd and recorded in Official Records Book 2585 at Page 2735 through 2737, owned by South FloriJa Water Managemcnt District with Tax Folio Numbcr 00052640007; containing 185.91 acres, more or less, AND Property Tax Identification Number: 00052680009 The Southeast Quarter (SP!') of the Southwest Quarter (SWV.) of Section 26, Township 46 South, Range 28 East, Collier County, Florida; containing 40.38 acres more or less. AND ~._, Property Tax Identification Number: 00052440003 A parcel of land lying in the East Half (E~Io) of the East Half (Hi) of thc Southwest QuarteT (SWV.) of the Southeast Quarter (SE\J4) of Section 22, Township 46 South, Range 28 East, Collier County, Florida, being more particularly described as follows: Commence at the Southeast corner of Section 22, Township 46 South, Rangc 28 East, Collier County, FloriJa; thence mn S 88057' 4 7" W, along the south line of the Southeast Quarter (SEV.) of said Section 22 for a distance of 1320.38 feet to the Point of Beginning ofthc parcel ofland herein deseribcd; thence continue S 88057'47" W, along the south line of the Southeast Quarter (SE \'4) of said Section 22, for a distance of 330J)9 feet; thence run N 00031' 18" W for a distancc of 1342.51 feet; thence run N 88"58'31" E for a distance of330.12 feet; thence run S 00031' 14" E, for a distance of 1342.44 feet to the Point of Beginning; containing 10.1 7 acres, morc or less. END Legal Description -- -,~_._-_.~_.._- '" --.,~,-..".,--~_.- -- -.' ,---~,,-_.,_....- --'~-"--'-