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Agenda 11/10/2020 Item #11E (Consider an offer to purchase the Riviera Golf Club Property)11/10/2020 EXECUTIVE SUMMARY Recommendation to consider an offer to purchase the Riviera Golf Club Property and fulfill the Land Development Code requirement for applicants filing an Intent to Convert application in accordance with LDC section 5.05.15 C.2. OBJECTIVE: To satisfy the Land Development Code (LDC) requirements for an applicant that has filed an Intent to Convert Application. CONSIDERATIONS: In 2017, the Board of County Commissioners (Board) adopted procedures related to the conversion of golf courses to non -golf course -related uses. Adopted LDC section 5.05.15 requires a robust public vetting process prior to the submittal of a zoning action called an "Intent to Convert" application. One element of the Intent to Convert process is the requirement to submit a "Developer's Alternatives Statement" that identifies several conversion or purchase options for the project, including the potential for the County to purchase the property. In 2018, the Riviera Golf Course (see attached location map) was listed for sale at an asking price of $3 million. At that time, the Riviera Golf Estates Board of Directors proposed borrowing up to $3.3 million As an owner of two parcels within Riviera Golf Estates, the Board cast two votes in favor of the proposal at the December 11, 2018 Board meeting (see attached agenda item I U). However, the proposal did not achieve the required votes to authorize the purchase and no further action was taken. On September 17, 2020, Zoning Division staff held a Pre -Application meeting for an Intent to Convert and companion rezone request related to the conversion of the Riviera Golf Club Property to a residential development. At that meeting, staff instructed the applicant of the need to "coordinate with the County to determine if there is any interest to donate, purchase, or maintain a portion or all of the property for a public use, such as a public park, open space, civic use, or other public facilities." The attached letter satisfies that requirement and allows the applicant to continue the Intent to Convert application process. This same offer to purchase was extended to the Riviera Golf Estates Homeowners Association (HOA). Staff reached out to the HOA Board President on November 2nd to determine interest in the offer to purchase and representatives for the HOA have expressed interest in addressing the Board on November 1 Od'. The Intent to Convert process only requires coordination between the Applicant and the County and does not require the County to purchase the property or otherwise engage with the Applicant. FISCAL IMPACT: The offer to purchase totals $6,500,000. This purchase if contemplated has not been planned for and thus funds are not earmarked as part of the adopted FY 21 budget. If the Board chooses to engage in discussions regarding the purchase of the property, under the premise that this is a strategic acquisition, the short timeline to closing as stated in the offer letter would likely require certain existing capital project deferrals to raise the necessary capital followed by future reimbursement through either existing FY 21 or FY 22 budgeted funds and/or short term financing. GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this action. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and legality, and requires majority vote for approval. -JAK RECOMMENDATION: To consider the offer to purchase the Riviera Golf Club Property and direct staff as to how to respond. Prepared by: Jeremy Frantz, AICP, Land Development Code Manager, Zoning Division Packet Pg. 776 11/10/2020 ATTACHMENT(S) 1.2020.10.29 Letter to L. Ochs re Riviera Acquisition (PDF) 2. Location Map (PDF) 3. 12-11-18 BCC Agenda Item 1 U (PDF) Packet Pg. 777 11.E 11/10/2020 COLLIER COUNTY Board of County Commissioners Item Number: 11.E Doe ID: 14072 Item Summary: Recommendation to consider an offer to purchase the Riviera Golf Club Property and fulfill the Land Development Code requirement for applicants filing an Intent to Convert application in accordance with LDC section 5.05.15 C.2. (Jeremy Frantz, Land Development Code Manager, Zoning Division) Meeting Date: 11/10/2020 Prepared by: Title: Planner, Senior — Zoning Name: Jeremy Frantz 11/02/2020 9:07 PM Submitted by: Title: Manager - Planning — Zoning Name: Ray Bellows 11/02/2020 9:07 PM Approved By: Review: Growth Management Department Facilities Management Zoning Growth Management Department Growth Management Department Office of Management and Budget Budget and Management Office County Attorney's Office County Manager's Office Board of County Commissioners Judy Puig Level 1 Reviewer Roosevelt Leonard Additional Reviewer Anita Jenkins Additional Reviewer James C French Deputy Department Head Review Thaddeus Cohen Department Head Review Laura Wells Level 3 OMB Gatekeeper Review Mark Isackson Additional Reviewer Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Leo E. Ochs Level 4 County Manager Review MaryJo Brock Meeting Pending Completed 11/03/2020 8:12 AM Completed 11/03/2020 9:06 AM Completed 11/03/2020 9:53 AM Completed 11/03/2020 1:41 PM Completed 11/03/2020 4:35 PM Completed 11/03/2020 4:39 PM Completed 11/04/2020 10:40 AM Completed 11/04/2020 11:01 AM Completed 11/04/2020 11:44 AM 11/10/2020 9:00 AM Packet Pg. 778 11.E.1 CYI< COLEMAN I YOVANOVICH I KOESTER October 29, 2020 Via Electronic Mail Mr. Leo E. Ochs, Jr., County Manager Collier County Manager's Office 3299 Tamiami Trail East, Suite 202 Naples, FL 34112-5746 RE: Riviera Golf Club Acquisition Dear Mr. Ochs, 4001 Tamiarni Trail North, Suite 300 Naples, Florida 34103 T:239.435.3535 1 F:239.435.1218 Email: ryovanovich(a�,cyklawfrm.com Our firm represents La Mimnesota Riviera LLC ("La Minnesota"). La Minnesota is the owner of the Riviera Golf Club property. La Minnesota intends to re -develop the property as a residential community. As part of the Collier County process, La Minnesota is required to determine if either the Association or Collier County is interested in acquiring the property. La Minnesota is willing to sell the property to either the Association or Collier County for the sum of six million five hundred thousand dollars. If either the Association or Collier County is interested in acquiring the property, a contract to purchase the property must be entered into by 5:00pm on November 13, 2020. There must be no contingencies for the acquisition. However, a due diligence period of thirty (30) days will be provided. Closing is to occur sixty (60) days after the expiration of the due diligence period. If you have any questions regarding this matter, please feel free to contact me. Sincerely, Richard D. Yovanovich7Esq. cyklawfirm.com Packet Pg. 779 Riviera Golf Club Property 11.E.2 10/30/2020, 8:07:54 AM 1:9,028 0 0.05 0.1 0.2 mi 0 0.1 0.2 0.4 km Source: Esri, Maxar, GeoEye, Earthstar Geographies, CNES/Airbus DS, USDA, USGS, AeroGRID, IGN, and the GIS User Community, GIS/ Addressing 11.E.3 12/11/2018 EXECUTIVE SUMMARY Recommendation to authorize the County Manager to cast two affirmative votes for the Riviera Golf Estates Homeowners Association Board of Directors, to negotiate a contract for the acquisition of the 93-acre golf course and to borrow up to $3.3 million for the land purchase and maintenance equipment for use as a private community park. Collier County owns two (2) lots at 767 and 771 Charlemagne Court in Riviera Golf Estates and thus has two (2) votes it can cast. OBJECTIVE: To cast affirmative votes for the Riviera Golf Estates HOA to purchase the Riviera Golf Estates Golf Course. CONSIDERATIONS: In late 2016, the Riviera Golf Estates Board of Directors learned that the 93-acre Riviera Golf Course was for sale at an asking price of $3 million. The Golf Course Advisory Committee (GCAC) was created in early 2017 and asked to research the situation and to develop alternatives and recommendations. The GCAC comprised of volunteers that included full-time and seasonal homeowners of all ages that live on and away from the golf course. The GCAC also included residents that do similar type work in their professional lives. The GCAC spent more than a year to research, analyze and compile a comprehensive report that determined purchasing the golf course was in the best interest of protecting the community from development. The Riviera Golf Estates Board of Directors supports the GCAC recommendation to purchase the golf course and authorize borrowing up to $3.3 million, which includes a maximum purchase price of $3 million, plus a 10% reserve for purchase -related closing costs, due diligence costs, and maintenance equipment for use as a private community park. A positive vote doesn't assure purchase of the 93-acre golf course. Should the vote to purchase the land be positive, the Riviera Golf Course Board of Directors would select a committee to negotiate pricing and ensure due diligence is completed before any purchase takes place. Collier County owns two (2) lots at 767 and 771 Charlemagne Court in Riviera Golf Estates and thus has two (2) votes it can cast. If the County abstains from voting, it counts as two (2) no votes and a super majority yes vote is required to purchase the golf course. A location map for the golf course and the land acquisition ballot are attached for reference. FISCAL IMPACT: If the golf course is purchased with a bank loan of $3.3million, the County would be responsible to pay approximately $4,768 per lot, plus an additional $12/month for operating expenses. GROWTH MANAGEMENT IMPACT: There is no impact to the Growth Management Plan. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and legality, and requires majority vote for approval. -JAK RECOMMENDATION: To authorize the County Manager to cast affirmative votes for the Riviera Golf Estates HOA Board of Directors, to negotiate a contract for the acquisition of the 93-acre golf course and to borrow up to $3.3 million for the land purchase and maintenance equipment for use as a private community park. Prepared By: Toni A. Mott, Manager, Facilities Management Division Packet Pg. 781 11.E.3 12/11/2018 ATTACHMENT(S) 1. Location Map (PDF) 2. Land Acquisition Ballot (PDF) a� a 0 L CL U /0 V L .N; LIB d N t V L IL 0 L W O L d .N C 0 U N ti O r 7 r r E d C N al Q U U CO 00 r r r N r r C d E t V R a+ a Packet Pg. 782 11.E.3 12/11/2018 COLLIER COUNTY Board of County Commissioners Item Number: 16.17.6 Doe ID: 7496 Item Summary: Recommendation to authorize the County Manager to cast two affirmative votes for the Riviera Golf Estates Homeowners Association Board of Directors, to negotiate a contract for the acquisition of the 93-acre golf course and to borrow up to $3.3 million for the land purchase and maintenance equipment for use as a private community park. Collier County owns two (2) lots at 767 and 771 Charlemagne Court in Riviera Golf Estates and thus has two (2) votes it can cast. Meeting Date: 12/11/2018 Prepared by: Title: Manager - Property Acquisition & Const M — Facilities Management Name: Toni Mott 12/04/2018 2:07 PM Submitted by: Title: Director - Facilities Management — Facilities Management Name: Damon Grant 12/04/2018 2:07 PM Approved By: Review: Public Utilities Department Facilities Management County Attorney's Office County Attorney's Office Office of Management and Budget Budget and Management Office County Attorney's Office County Manager's Office Board of County Commissioners Dan Rodriguez Additional Reviewer Damon Grant Director - Facilities Jeffrey A. Klatzkow Level 2 Attorney Review Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Valerie Fleming Level 3 OMB Gatekeeper Review Mark Isackson Additional Reviewer Emily Pepin CAO Preview Leo E. Ochs Level 4 County Manager Review MaryJo Brock Meeting Pending Completed 12/04/2018 3:11 PM Completed 12/04/2018 3:14 PM Completed 12/05/2018 7:49 AM E Completed 12/05/2018 7:51 AM +% ca Completed 12/05/2018 8:03 AM a� Completed 12/05/2018 9:24 AM Q U Completed 12/05/2018 10:53 AM m 00 Completed 12/05/2018 11:04 AM r 12/11/2018 9:00 AM N r c m E t v tv .r r a Packet Pg. 783