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Agenda 05/25/2021 Item #11K (BigShots Long Term Lease & Operating Agreement)05/25/2021 EXECUTIVE SUMMARY Recommendation to approve a Long-Term Lease And Operating Agreement with CC BSG Naples, LLC (“BigShots”) to operate and manage a twelve-hole public golf course on the former Golden Gate Golf Course property, to lease land for the construction and operation of a BigShots golf/entertainment facility on the property to benefit the residents of Collier County, support the overall redevelopment plan for the property, and to approve all necessary budget amendments. OBJECTIVE: To approve a long-term lease and operating agreement for a twelve-hole public golf course at the former Golden Gate Golf Course, a Golf Entertainment facility, and to support the redevelopment of the property. CONSIDERATIONS: At the April 27, 2021 Board Meeting, the Board authorized staff to begin negotiations with BigShots to bring back a proposed agreement for the May 25, 2021 meeting. The County and BigShots provided draft agreements for review ahead of a May 14, 2021 meeting to discuss business points for a long-term lease and operating agreement. Discussions revolved around the following five business points. Business Points Conditions Business Point 1 The lease and operation agreement are conditional upon the operation and maintenance of both the golf course and driving range facility Business Point 2 BigShots will pay the County a percentage of the reported monthly Florida sales tax of Gross Receipts Business Point 3 The County will redevelop and construct the twelve-hole golf course with coordination from Bigshots Business Point 4 The County will invest up-to $7 million to redevelop the golf course, and any investment above that amount will be the responsibility of BigShots Business Point 5 BigShots will provide discounts to County Residents year-round The proposed long-term lease provides for the operation and continuing maintenance of the redeveloped golf course by BigShots and also requires BigShots to construct a golf entertainment facility on a portion of the property. The lease would have an initial term of 20 years with the option for four (4) five-year extensions. Both components, the golf course and entertainment portion of the property, would comprise a “golf complex,” and both would need to be continuously operated by BigShots to comply with the terms of the lease. Under the proposed lease agreement, BigShots is required to pay the County a percentage of its reported monthly State sales taxes on a quarterly payment basis. BigShots’ payment is based upon a sliding scale as shown in Exhibit D to the lease agreement, as follows: January 1 through December 31, 2024 - one (1%) percent, January 1 through December 31, 2025 - two (2%) percent, January 1 through December 31, 2026, and thereafter - three (3%) percent. As part of the agreement, the County will provide up to $7 million to design and construct the twelve-hole golf course on the property. Any amount that may be required for the golf course beyond that $7 million dollar contribution is the responsibility of BigShots. The proposed investment to redevelop the golf course by the County is similar to investments the County has made for other County recreation amenities. In the past six years, East Naples Community Park, the home of the US Open Pickleball Championship, has received approximately $6.5 million dollars in capital improvements to refurbish an aged facility. These improvements support the US Open Pickleball Championship, and also provide a year around community amenity for use by residents and visitors alike. For the County to redevelop the golf course, the County would need to issue a solicitation for a reputable 11.K Packet Pg. 462 05/25/2021 and recognized golf architect and design firm, and would pursue the most expedient method to design and construct the golf course. Staff recommends that a representative from BigShots serve in an advisory capacity and as a non-voting member of any selection committee organized to sit on any such solicitation to help insure that the selected firm does not exceed BigShots capacity to operate and maintain the course. As the golf course component of the redevelopment will be a County asset, County residents will have access and receive a forty (40%) discount on posted green fees at the golf course year-round. The process of identifying and applying a resident discount may use a mechanism like that of the Resident Beach Parking pass process. This would allow BigShots to apply resident discounts easily and effectively at the time tee times are made or when fees are paid. Staff expects a signed copy of the agreement by BigShots to be received Thursday May 20, 2021. FISCAL IMPACT: Funding for land development activities at the Golden Gate Golf Course is appropriated within County Wide General Governmental Capital Fund (301). Budget for improvements to the Golf Course will be sourced from a combination of existing general governmental capital appropriations within this Fund and general governmental reserves. The County's budget is always extremely flexible to accommodate various capital, operational, or other policy initiatives which arise. Any reserves appropriated mid-year via budget amendment will be replenished at the start of the fiscal year as a matter of good fiscal policy. Budget Planning for FY 2022 anticipated certain funding for Golden Gate Golf Course improvements and cash flow flexibility exists within County Wide General Governmental Capital Fund (301) to make periodic payments as golf course improvement draws are made. Budget amendments are necessary to set up the initial mid-year appropriation from general governmental reserves. GROWTH MANAGEMENT IMPACT: There are no Growth Management Impacts associated with this Executive Summary. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for Board approval. -SRT RECOMMENDATION: That the Board approve a long-term lease and operating agreement for a twelve-hole public golf course at the former Golden Gate Golf Course and a Golf Entertainment facility, to benefit the residents of Collier County and support the redevelopment of the property, and to approve all necessary budget amendments. Prepared by: Geoff Willig, Senior Operations Analyst in the County Manager’s Office ATTACHMENT(S) 1. Golf and Entertainment agreement (PDF) 11.K Packet Pg. 463 05/25/2021 COLLIER COUNTY Board of County Commissioners Item Number: 11.K Doc ID: 15957 Item Summary: *** This Item to be heard at 10:00 a.m. *** Recommendation to approve a Long- Term Lease And Operating Agreement with CC BSG Naples, LLC (“BigShots”) to operate and manage a twelve-hole public golf course on the former Golden Gate Golf Course property, to lease land for the construction and operation of a BigShots golf/entertainment facility on the property to benefit the residents of Collier County, support the overall redevelopment plan for the property, and to approve all necessary budget amendments. (Geoff Willig, Senior Operations Analyst in the County Manager’s Office) Meeting Date: 05/25/2021 Prepared by: Title: Sr. Operations Analyst – County Manager's Office Name: Geoffrey Willig 05/19/2021 8:20 AM Submitted by: Title: Division Director - Corp Fin & Mgmt Svc – County Manager's Office Name: Mark Isackson 05/19/2021 8:20 AM Approved By: Review: Procurement Services Ana Reynoso Level 1 Purchasing Gatekeeper Completed 05/19/2021 9:09 AM Procurement Services Sandra Herrera Additional Reviewer Completed 05/19/2021 9:38 AM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 05/19/2021 9:52 AM Office of Management and Budget Susan Usher Additional Reviewer Completed 05/19/2021 10:49 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 05/19/2021 4:38 PM County Manager's Office Mark Isackson Level 4 County Manager Review Completed 05/19/2021 4:41 PM Board of County Commissioners Geoffrey Willig Meeting Pending 05/25/2021 9:00 AM 11.K Packet Pg. 464 11.K.1Packet Pg. 465Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 466Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 467Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 468Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 469Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 470Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 471Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 472Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 473Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 474Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 475Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 476Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 477Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 478Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 479Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 480Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 481Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 482Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 483Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 484Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 485Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 486Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 487Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 488Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 489Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 490Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 491Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 492Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update) 11.K.1Packet Pg. 493Attachment: Golf and Entertainment agreement (15957 : BigShots Agreement update)