Agenda 09/08/2020 Item #16F2 (Amendment to Kraft Lease Agreement)09/08/2020
EXECUTIVE SUMMARY
Recommendation to approve Lease Consolidation and First Amendment to Lease for the Naples
Accelerator with Kraft Office Center, LLC for dedicated office space for the program.
OBJECTIVE: To extend the lease at the Kraft Center for the Naples Accelerator.
CONSIDERATIONS: On March 10, 2015, as Item 11.E, the Board approved a five-year Lease
Agreement with Kraft Center, LLC for 9,097 square feet of dedicated office space to house the County’s
Business Accelerator program. Economic Incubators, Inc. (EII), the then-contract operator of the
Accelerator program later entered a lease for an additional 223 square feet of rentable space in the
building. In July 2019, the County ended its relationship with EII and assumed responsibility for
operating the Accelerator program.
On May 23, 2020, as Item 11.A, the County entered an agreement with Florida Gulf Coast University’s
(FGCU) School of Entrepreneurship (SOE) to provide entrepreneurial programming and mentorship for
the Naples Accelerator. The program formally began at the Accelerator on August 15, 2020. As part o
that agreement, FGCU and the County agreed to pursue a mutually acceptable location (new or existing)
to host these programs and activities.
Through the summer of 2020, staff researched comparable office spaces in Collier County, and found that
in the short-term it would be more economically feasible to extend the lease at the Naples Accelerator. In
addition to being priced competitively, the cost to remove installed lease improvements was quoted by
OFDC Commercial Interiors. The cost to break down, transport and reinstall leasehold improvements at a
new location is $80,400. There will also be costs associated with restoration of the leased space at the
Kraft Center once the leasehold improvements are removed.
In addition, there are near-horizon opportunities to house the Accelerator with other County operations
that lend support to a short-term extension of the lease. The County can terminate the lease with Kraft
Center by providing the landlord a 90-day written notice. When dates for opportunities to co-locate the
Naples Accelerator with other County operations become clear, the County will provide such notice to the
landlord and prepare for the move of leasehold improvements to a new location.
FISCAL IMPACT: The cost to renew the lease at the Naples Accelerator for Year 1 of the amendment is
$221,167.22, or $22.13 per square foot. Funding is available within Economic Development Fund (007),
which is comprised of proceeds from the local government share of revenue sharing from gaming
proceeds pursuant to the agreement between the State of Florida and the Seminole Tribe.
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 is approved in form and legality and requires a majority vote
for ratification - JAK
RECOMMENDATION: To approve Lease Consolidation and First Amendment to Lease for the Naples
Accelerator with Kraft Office Center, LLC for dedicated office space for the program.
Prepared By: Sean Callahan, Executive Director, Corporate Business Operations
16.F.2
Packet Pg. 2739
09/08/2020
ATTACHMENT(S)
1. LEASE 2015 03-10 KRAFT (PDF)
2. Quote 41168 - Naples Accelerator Storage - Reinstall (PDF)
3. cost breakdown (XLSX)
4. Accelerator Comparable Buildings (PDF)
5. Kraft Lease Extension 08.25.2020 (PDF)
16.F.2
Packet Pg. 2740
09/08/2020
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.F.2
Doc ID: 13353
Item Summary: Recommendation to approve Lease Consolidation and First Amendment to Lease
for the Naples Accelerator with Kraft Office Center, LLC for dedicated office space for the program.
Meeting Date: 09/08/2020
Prepared by:
Title: – Corporate Business Operations
Name: Sean Callahan
08/24/2020 9:47 AM
Submitted by:
Title: County Manager – County Manager's Office
Name: Leo E. Ochs
08/24/2020 9:47 AM
Approved By:
Review:
Public Services Department Jennifer Reynolds Additional Reviewer Completed 08/24/2020 10:11 AM
Corporate Business Operations Sean Callahan Additional Reviewer Completed 08/24/2020 10:17 AM
Grants Valerie Fleming Level 2 Grants Review Completed 08/25/2020 9:25 AM
Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 08/25/2020 9:31 AM
Budget and Management Office Ed Finn Additional Reviewer Completed 08/26/2020 10:42 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 08/26/2020 1:10 PM
County Manager's Office Sean Callahan Level 4 County Manager Review Completed 09/01/2020 12:46 PM
Board of County Commissioners MaryJo Brock Meeting Pending 09/08/2020 9:00 AM
16.F.2
Packet Pg. 2741
16.F.2.aPacket Pg. 2742Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2743Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2744Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2745Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2746Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2747Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2748Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2749Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2750Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2751Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2752Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2753Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2754Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2755Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2756Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2757Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2758Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2759Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2760Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2761Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2762Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2763Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2764Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2765Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2766Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2767Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2768Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2769Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2770Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2771Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2772Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2773Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2774Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2775Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2776Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2777Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2778Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2779Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2780Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2781Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2782Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
16.F.2.aPacket Pg. 2783Attachment: LEASE 2015 03-10 KRAFT (13353 : Naples Accelerator Lease Extension)
Quotation
Page 1 / 4
41168 08/03/20 BROOKE GABRIELSEN
Quote
Quote
Date Customer Order Customer
Account
Representative Project
COL003
Quote To Ship To
ATTN: FINANCE DEPARTMENT
COLLIER COUNTY BD OF CO COMM.
3301 TAMIAMI TRAIL EAST
Naples FL 34112-3969
ATTN: FINANCE DEPARTMENT
COLLIER COUNTY BD OF CO COMM.
3301 TAMIAMI TRAIL EAST
Naples FL 34112-3969
+1 (239) 774-8361Phone+1 (239) 774-8361Phone
+1 (239) 774-6179Fax+1 (239) 774-6179Fax
NET 30 DAYSTerms Tax 85-8015966531C-1
Line Quantity Catalog Number / Description Unit Price
Extended
Amount
PRODUCT SPECIFICATIONS INCLUDING SIZES, WOOD
FINISHES, SURFACE COLORS AND FABRICS HAVE BEEN
REVIEWED AND APPROVED.
THIS IS A CUSTOM ORDER AND CANNOT BE CANCELLED
OR RETURNED. CUSTOMER INITIALS:________
** PLEASE ASK ABOUT FABRIC PROTECTION! **
1 1 FURNITURE STORAGE OFFICEFURN 8,225.00 8,225.00
0.00 0.00%OFDC PROFESSIONAL FURNITURE INSTALLERS
WILL DISASSEMBLE FURNITURE WHERE
POSSIBLE, LOAD FURNITURE INTO OFDC
TRUCKS, DRIVE TO STORAGE FACILITY, AND
UNLOAD INTO STORAGE FACILITY.
PLEASE NOTE THAT SOME FURNITURE CANNOT
BE BROKEN DOWN, SUCH AS LOUNGE CHAIRS,
STORAGE, LARGE TABLES.
THIS ESTIMATE ASSUMES THAT THE STORAGE
FACILITY IS WITHIN A 30 MINUTE DRIVE FROM
THE NAPLES ACCELERATOR.
THIS LINE ITEM DOES NOT INCLUDE
DEMOUNTABLE WALLS. THOSE ARE LISTED
SEPARATELY.
16.F.2.b
Packet Pg. 2784 Attachment: Quote 41168 - Naples Accelerator Storage - Reinstall (13353 : Naples Accelerator Lease Extension)
Quotation
(cont'd)
Page 2 / 4
41168 08/03/20 BROOKE GABRIELSEN
Quote
Quote
Date Customer Order Customer
Account
Representative Project
COL003
Line Quantity Catalog Number / Description Unit Price
Extended
Amount
2 1 WALLS STORAGE WDESIGN 17,500.00 17,500.00
0.00 0.00%DISASSEMBLE DEMOUNTABLE WALLS
REMOVE/SEPARATE PARTS - BAG SCREWS AND
BRACKETS
LOAD ONTO TRUCK AND UNLOAD AT STORAGE
FACILITY
THIS QUOTE ASSUMES THAT STORAGE
FACILITY IS WITHIN A 30 MINUTE DRIVE FROM
ACCELERATOR
**NXTWALL DEMOUNTABLE WALL SYSTEMS
ARE SHIPPED WITHOUT GLASS, AND GLASS IS
INSTALLED ON SITE. OFDC WILL TAKE GREAT
CARE TO PROTECT GLASS, BUT WILL NOT BE
RESPONSIBLE IF GLASS IS BROKEN IN TRANSIT
OR IN STORAGE. IF/WHEN THE DEMOUNTABLE
WALL IS REINSTALLED, NEW GLASS CAN BE
ADDED BACK TO EXISTING FRAME.**
POWER AND DATA NEED TO BE TERMINATED
PRIOR TO OUR ARRIVAL.
QUOTE ASSUMES MON-FRI 8AM-5PM
3 1 INSTALL OFFICEFURN 13,125.00 13,125.00
0.00 0.00%*TO BE BILLED ACTUAL HOURS AT $65 PER
HOUR
SERVICES TO INCLUDE BUT NOT LIMITED TO:
LOAD FURNITURE AT STORAGE FACILITY
DELIVERY TO JOB SITE
STAGING OF PRODUCT
INSTALLATION AS PER FLOOR PLAN
ASSEMBLY AS NEEDED
REMOVAL AND RECYLING OF ALL PACKING
MATERIAL
LEVELING OF ALL CASEGOODS
ADMINISTRATIVE FEES
THIS LINE ITEM DOES NOT INCLUDE
DEMOUNTABLE WALLS.
16.F.2.b
Packet Pg. 2785 Attachment: Quote 41168 - Naples Accelerator Storage - Reinstall (13353 : Naples Accelerator Lease Extension)
Quotation
(cont'd)
Page 3 / 4
41168 08/03/20 BROOKE GABRIELSEN
Quote
Quote
Date Customer Order Customer
Account
Representative Project
COL003
Line Quantity Catalog Number / Description Unit Price
Extended
Amount
4 1 WALLS INSTALL WDESIGN 67,275.00 67,275.00
0.00 0.00%**DEMOUNTABLE WALLS MAY ONLY BE
REUSED IF THE CEILING HEIGHT IS THE SAME
AS THE EXISTING SPACE.
IN THIS CASE, THE WALLS WERE INSTALLED
WITHOUT A DROP CEILING AND MAY ONLY BE
REUSED IF THE CEILING IS 82" HIGH OR
HIGHER.
ADDITIONAL PARTS MAY BE REQUIRED
DEPENDING ON THE REDESIGN FOR THE NEW
SPACE.
SERVICES TO INCLUDE BUT NOT LIMITED TO:
LOAD WALLS AT STORAGE FACILITY
DELIVERY TO JOB SITE
STAGING OF PRODUCT
INSTALLATION AS PER FLOOR PLAN
ASSEMBLY AS NEEDED
REMOVAL AND RECYLING OF ALL PACKING
MATERIAL
LEVELING OF ALL WALLS
ADMINISTRATIVE FEES
QUOTATION TOTALS
106,125.00Sub Total
STATE OF FLA AGENCIES NON TAXABLE 0.00
Grand Total 106,125.00
Select Images are provided as a preliminary color and type representation and should not be used for final color and
product selection. Due to individual computer/monitor/printer settings: color, texture, pattern, size and feature
rendering may vary from the actual sample. For accuracy, order and view an actual sample.
End of Quotation
16.F.2.b
Packet Pg. 2786 Attachment: Quote 41168 - Naples Accelerator Storage - Reinstall (13353 : Naples Accelerator Lease Extension)
Quotation
(cont'd)
Page 4 / 4
41168 08/03/20 BROOKE GABRIELSEN
Quote
Quote
Date Customer Order Customer
Account
Representative Project
COL003
16.F.2.b
Packet Pg. 2787 Attachment: Quote 41168 - Naples Accelerator Storage - Reinstall (13353 : Naples Accelerator Lease Extension)
Naples Accelerator furniture breakdown
Disassemble furniture and bring to storage unit/facility $8,225.00
Disassemble demountable walls and bring to storage unit/facility $17,500.00
Total - funiture/walls from Accelerator to storage unit/facility $25,725.00
Remove furniture from Naples Accelerator, bring to new place, and reassemble $13,125.00
Remove walls from Naples Accelerator, bring to new place, and reassemble $67,275.00
Total - furniture & walls removed from Accelerator, brought to new place, and reassembled $80,400.00
16.F.2.c
Packet Pg. 2788 Attachment: cost breakdown (13353 : Naples Accelerator Lease Extension)
Location Cost per Square Foot
3510 Kraft Road 22.13$
Comparable Available Office Space
2150 Goodlette Road North, Iberia Bank Building 21.50$
5811 Pelican Bay Boulevard 26.52$
4001 Tamiami Trail North – North Trust Bank Building 28.00$
800 Laurel Oak Drive – FineMark Bank Building 24.00$
4850 Tamiami Trail North 39.00$
445 5th Avenue South 30.00$
Other Current Leases in Kraft Center
Tenant A - over 10,000 sq. ft.28.99$
Tenant B - over 10,000 sq. ft.27.87$
Tenant C - over 10,000 sq. ft.35.02$
Tenant D - over 10,000 sq. ft.36.31$
16.F.2.d
Packet Pg. 2789 Attachment: Accelerator Comparable Buildings (13353 : Naples Accelerator Lease Extension)
LEASE CONSOLIDATION AND FIRST AMENDMENT TO LEASE
This Lease Consolidation and First Amendment to Lease (“Amendment”) is made and entered into
this ____ day of ____________________, 2020, by and between KRAFT OFFICE CENTER, LLC, a
Florida limited liability company (“Landlord”), and the BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, AS THE GOVERNING BODY OF COLLIER COUNTY, a
political subdivision of the State of Florida (“Tenant”).
R E C I T A L S
A. Landlord and Tenant entered into a lease dated March 10, 2015, for approximately 9,771
rentable square feet of space located in Naples, Collier County, Florida, as more particularly described
therein (the “Accelerator Lease);
B. Landlord and the Economic Incubators, Inc., a Florida not-for-profit corporation, entered
into a lease dated October 27, 2016, for approximately 223 rentable square feet of space located in Naples,
Collier County, Florida, as more particularly described therein (the “Incubator Lease”);
C. Tenant is the successor of the Economic Incubators, Inc.
D. Tenant and Landlord have agreed to consolidate the Incubator Lease with the Accelerator
Lease and, except for the changes in the Accelerator Lease that are necessary to reflect the increased
rentable square footage of the Premises (9,771 + 223 rentable square feet), the terms and conditions of the
Accelerator Lease shall remain and control. The consolidated lease is hereinafter referred to as the “Lease”;
E. Further, Tenant exercised its option to extend the Lease Term for an additional five (5)
years (the “Extension Term”), as provided for in Section 16 of the Lease; and
F. The parties enter this Amendment to evidence the consolidation, the increase in the rentable
square footage of the Premises, the extension and to modify the Base Rent to be paid during the Extension
Term.
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties hereby agree, as follows:
1. The Accelerator Lease and the Incubator Lease are hereby consolidated and, except for the
increase in the rentable square footage of the Premises due to the consolidation, the terms of the Accelerator
Lease shall remain and control.
2. The Premises are revised to consist of approximately 9,994 (9,771 + 223) rentable square
feet of space.
3. The Lease is hereby extended an additional five (5) years, beginning October 1, 2020 and
ending at midnight on September 30, 2025.
4. Beginning October 1, 2020, Base Rent shall be as follows for each Lease Year of the
Extension Term (calculated at 3% increase per Lease Year):
16.F.2.e
Packet Pg. 2790 Attachment: Kraft Lease Extension 08.25.2020 (13353 : Naples Accelerator Lease Extension)
Page 2 of 3
Extension Lease Year Base Rent Monthly Payment Cost Per Sq. Ft.
Year – 1 $221,167.22/annually $18,430.60/month $22.13
Year – 2 $227,763.26/annually $18,980.27/month $22.79
Year – 3 $234,559.18/annually $19,546.60/month $23.47
Year – 4 $241,554.98/annually $20,129.58/month $24.17
Year – 5 $248,850.60/annually $20,737.55/month $24.90
The foregoing Base Rent shall be due, plus sales tax.
5. The parties warrant that there are no brokers with whom they dealt on this Amendment.
The party who breaches this warranty shall defend, hold harmless, and indemnify the non-breaching party
from any claims or liability arising from the breach.
6. All of the terms, provisions, covenants, conditions, and obligations of the Lease pertaining
to the initial Term, except as hereinafter specifically provided, shall automatically apply to the Extension
Term.
7. Tenant hereby acknowledges and warrants that it does not have any claims against
Landlord under the Lease or any defaults or offsets to the payment of any sums due under the Lease.
8. Capitalized terms not herein defined shall have the same meaning as provided for in the
Lease.
9. Except as hereby amended, all other terms and conditions of the Lease shall remain in full
force and effect.
10. This Agreement may be executed in any number of counterparts, each of which shall be
deemed an original, and all of which together shall constitute one and the same instrument. Signatures
provided by facsimile transmission or in Adobe Portable Document Format (PDF) sent by electronic mail
shall be deemed to be original signatures.
EXECUTED the date first above written.
REMAINDER OF PAGE LEFT INTENTIONALLY BLANK
SIGNATURE PAGE TO FOLLOW
16.F.2.e
Packet Pg. 2791 Attachment: Kraft Lease Extension 08.25.2020 (13353 : Naples Accelerator Lease Extension)
Page 3 of 3
AS TO COUNTY:
ATTEST: BOARD OF COUNTY COMMISSIONERS
CRYSTAL K. KINZEL, Clerk COLLIER COUNTY, FLORIDA
By: ___________________________ By: _____________________________
, Deputy Clerk Burt L. Saunders, Chairman
Approved as to form and legality:
_______________________________
Jeffrey A. Klatzkow, County Attorney
AS TO LANDLORD
Witnessed by:
Witness #1
Witness #2
KRAFT OFFICE CENTER, LLC,
a Florida limited liability company
By: ________________________________
F. Fred Pezeshkan, as President
16.F.2.e
Packet Pg. 2792 Attachment: Kraft Lease Extension 08.25.2020 (13353 : Naples Accelerator Lease Extension)