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Agenda 11/10/2020 Item #11B (Staff's progress update for Golden Gate Golf Course )11/10/2020 EXECUTIVE SUMMARY Recommendation to accept staff s progress update for the Golden Gate Golf Course development project and provide direction, as appropriate. (Geoff Willig, Senior Operations Analyst, County Manager's Office) OBJECTIVE: To bring the Board up to date on the progress that has been made regarding the fit plans for the redevelopment of the property, Intent to Convert process, site development agreements, and address options for the portions of the property resulting from C1ubCorp USA's withdrawal from the project. CONSIDERATIONS: On July 31, 2019, the County took ownership of the former Golden Gate Golf Course property. Following the direction of the Board, the County initially maintained the property through a partnership with the First Tee of Collier County. The County has since taken on the maintenance of the course through the Parks and Recreation Division. In November 2019, the County selected an engineering and planning firm to lead the County through the required Intent to Convert ("ITC") process. The ITC was intended to allow the County to develop the property with an essential services housing project, a State Veterans' Nursing Home, a regional government service center and a public golf & entertainment component. The current fit plan developed by the engineering firm is attached with this executive summary. The fit plan developed for the property includes an allocation of space on the northern portion of the property for a potential State Veterans' Nursing Home. Staff will continue to engage the County lobbying teams in pursuit of the development of a State Veterans' Nursing Home, along with facilitation of an FDVA site visit as soon as possible. On June 9, 2020, the Board selected Rural Neighborhoods, Inc., through an Invitation to Negotiate ("ITN") process, to develop an essential services housing component. The proposed development agreement for this project will be presented as a separate item on the November 10t1i BCC meeting agenda. On January 14, 2020, the Board selected C1ubCorp USA, Inc., through an ITN process, to develop a golf & entertainment component at the property. A year -long due diligence agreement was signed on April 10, 2020, to allow the County and C1ubCorp to finalize a lease agreement and provide the engineering firm with the necessary information for the site redevelopment and ITC. On October 22, 2020, the County Manager received a disengagement letter from the BigShots CEO Tony Wehner. The letter cited several factors that contributed to C1ubCorp/BigShots withdrawal, such as discovered irrigation and golf infrastructure investments and development requirements that were more than what was anticipated. He indicated that the increased investment cost and difficulties financing the project could not be resolved to proceed further. In order for the County to proceed with the submission of the ITC, staff is seeking the Board's direction regarding the development that was identified for the C1ubCorp/BigShots development. The Board has several options available to consider. The following options have been identified as potential uses or combination thereof for this part of the property. Negotiate with the second -place vendor, Bonura Hospitality Group, to develop a golf and entertainment component Packet Pg. 339 11/10/2020 • Resolicit for another partner to develop a golf component on the property • Reconsider a partnership with the First Tee of Collier • Develop a portion of the property as a passive park with multimodal pathways • Establish a corridor within the property along Collier Blvd for future commercial development Any development of a passive park space would require an investment by the County towards the necessary infrastructure required to maintain the park. The irrigation system as noted in the letter received from C1ubCorp would require a capital investment up to approximately $1.5 million. Without a programmed use such as a golf course staff believes that the investment into the irrigation system could be spread out over several years, whereas any golf course would target this replacement prior to opening. The County would need to build a maintenance shed to store equipment required to maintain the property. If the County handles the maintenance of the property the County would need to make equipment investments, these investments could be reduced if the County contract out the mowing of the property. However, there would be a fiscal need for potentially up to approximately $1 million in the first year for maintenance expenses and potentially up to $6 thousand for equipment to maintain the site. FISCAL IMPACT: The Board purchased the Golden Gate Golf Course for $29 million on July 31, 2019. The County selected the engineering firm to head the ITC and rezone required to develop the property at a lump sum cost of $684,666.50 plus reimbursable expenditures. Should the County develop a portion of the property as a passive park the County would require an investment of a couple million dollars to refurbish and develop the necessary infrastructure with up to approximately one million in operating expenses in the first year. GROWTH MANAGEMENT IMPACT: Staff is working with the engineering firm to engage in the ITC process to address growth management impacts of this project. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, raises no legal issues at this time, and requires majority vote for direction. -JAK RECOMMENDATION: To accept staffs progress update for the Golden Gate Golf Course development project and provide direction as appropriate. Prepared by: Geoff Willig, Senior Operations Analyst, County Manager's Office ATTACHMENT(S) 1. C1ubCorp Letter October 7 2020(PDF) 2. BSG Naples Disengage Memo v10.21.20 (PDF) 3.2020-11-4 CC GGGC CONCEPTUAL DEVELOPMENT PLANS 1 - 3 flattend (PDF) Packet Pg. 340 11.B 11/10/2020 COLLIER COUNTY Board of County Commissioners Item Number: I LB Doc ID: 13916 Item Summary: Recommendation to accept staffs progress update for the Golden Gate Golf Course development project and provide direction, as appropriate. (Geoff Willig, Senior Operations Analyst, County Manager's Office) Meeting Date: 11/10/2020 Prepared by: Title: Director - Operations Support — Administrative Services Department Name: Michael Cox 11/02/2020 2:54 PM Submitted by: Title: County Manager — County Manager's Office Name: Leo E. Ochs 11/02/2020 2:54 PM Approved By: Review: Office of Management and Budget County Attorney's Office Budget and Management Office County Manager's Office Board of County Commissioners Debra Windsor Level 3 OMB Gatekeeper Review Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Mark Isackson Additional Reviewer Leo E. Ochs Level 4 County Manager Review MaryJo Brock Meeting Pending Completed 11/02/2020 3:18 PM Completed 11/02/2020 3:34 PM Completed 11/03/2020 8:48 AM Completed 11/04/2020 11:41 AM 11/10/2020 9:00 AM Packet Pg. 341 11.B.a BIGSHOTS October 7, 2020 Collier County Board of County Commissioners 3299 Tamiami Trail East, Suite 303 Naples, FL 34112-5746 RE: BIGSHOTS NAPLES AND GOLDEN GATE GOLF COURSE Honorable Commissioners, As you know, BigShots Golf is a high tech golf and "eatertainment" concept powered by proprietary technology and owned by ClubCorp. The exciting BigShots Golf project at Golden Gate will feature a scratch kitchen, indoor and outdoor lounge seating, bar areas and private event spaces making it the ideal atmosphere to host games, gatherings and neighborhood outings. In addition to the 60 bay, two story BigShots Golf we have also proposed a complete redesign of the golf course. The redesign will feature 12 regulation holes and incorporate parts of the original Golden Gate Golf Course. The new 12-hole course will be made available to Collier County residents at a reduced rate and to the First Tee on a complimentary and preferred basis. We have conducted significant due diligence to evaluate the current conditions as well as the needed improvements required to redesign and reopen of the course. As part of our efforts we interviewed several golf course architects and inspected the existing infrastructure. During our review we discovered the existing irrigation systems will need to be completely replaced and the scope of work required to redesign the course is significant. ClubCorp has been building, upgrading, and managing golf clubs for more than 60 years. We understand both the necessity of having strong, modern course infrastructure as well as the benefits of partnering with reputable course designers who will elevate the experience at Golden Gate Golf Course. To accomplish these goals we request Collier County contribute $7,000,000 to the project. We look forward to discussing the exciting progress with BigShots Golf at Golden Gate Golf Course and appreciate your continued support. Resp ully, fi 1 DAVID PILLSBURY CEO- CLUBCORP TONY WEHNER CEO- BIGSHOTS GOLF Packet Pg. 342 11.B.b BIGSHOTS October 22, 2020 County Manager's Office 3299 Tamiami Trail East, Suite 202 Naples, FL 34112-5746 RE: BIGSHOTS NAPLES AND GOLDEN GATE GOLF COURSE Mr. Leo E. Ochs, Jr., We have completed our due diligence and feasibility analyses exploring the opportunity to bring BigShots Golf to Collier County. Over the last six months we have productively engaged in due diligence with your team at the County Manager's Office, local Collier County professionals and the Naples market at large. As a result of these diligence efforts we regretfully decline to continue negotiations of a definitive lease agreement for a portion of Golden Gate Golf Course. Several factors contribute to our decision to disengage from pursuit of this opportunity. Inspection of Golden Gate Golf Course's irrigation and golf infrastructure revealed investment and development requirements far in excess of what was originally anticipated. Additionally, engaging the local lending community revealed difficulties in financing the project given the increased scope of investment required by both BigShots Golf and ClubCorp. Unfortunately these discoveries cannot be resolved under any agreeable terms. While we are all disappointed with the outcome, we wish Collier County the very best. Thank you to you and your team for the courteous and professional efforts to complete this evaluation. Please accept this letter as notice of termination of our diligence efforts as outlined in the agreement between CC BSG, LLC and Collier County Board of County Commissioners for Collier County, Florida dated April 10, 2020. Respectfully, i0mcAvy-," TONY WEHNER CEO- BIGSHOTS GOLF Packet Pg. 343 W U �Q Q T H Lo Z T W +I a O W W 0 W F— I LL e xe r l'R 4, �r -.a M W fn fn W W D U w O a Q(.)CD H LL O Z J T C) +I a O W W 0 W D H D Z W W C/) U �Da a = Ln ~ W LO W J +I � m aQ O� J 0 W LU LL LL W Q 0 W Ix LL C 1111� �1111 ame W Q in 0 v 29.3' ILcjc� OWa aw IL C '4� C/) *mow w (L L) ti w D +1 E 13- a. 0 _j w w C) w w D LL ame 0 z cn CD w cn (D 00 U' 29.3' (L cn 0 W w M M Em 6 '4� 101 ame 0 z cn CD w cn (D 00 U' 29.3' (L cn 0 W w M M Em