Agenda 06/22/2021 Item #11E (Economic Development Agreement - GWR Naples, LLC)06/22/2021
EXECUTIVE SUMMARY
Recommendation to approve an economic development agreement for a proposed development
project involving GWR Naples, LLC, at the City Gate Commerce Park adjacent to the Paradise
Coast Sports Complex, in the amount of $15,000,000.
OBJECTIVE: To approve an economic development agreement with Great Wolf Resorts, Inc.
CONSIDERATIONS: Great Wolf Resorts, Inc. (“Great Wolf”) operates the largest family of indoor
water park resorts, with 17 locations across North America, the closest one to Collier County being in La
Grange, Georgia. In addition to the water park, each resort features many other amenities. Over the past
year, Great Wolf has been exploring an additional location in Florida, and has identified Collier County as
a prime location, specifically collocated at the City Gate Commerce Park adjacent to the Paradise Coast
Sports Complex (“PCSC”).
Great Wolf is currently exploring locating a 550-room resort on an existing 20-acre site adjacent to the
PCSC in the City Gate Commerce Park. The potential investment of the project is approximately $234
million in construction and development costs.
Activity Center No. 9, which includes the City Gate Commerce Park, is a Mixed-Use Activity Center
concept, designed to concentrate new commercial zoning in locations where traffic impacts can readily be
accommodated, to avoid strip and disorganized patterns of commercial development, and to create focal
points within the community. The Board established the Interchange Activity No. 9 Innovation Zone in
2018, involving several hundred vacant and undeveloped acres in East Naples, around the commercial
and industrial areas near the Interstate 75 and Collier Boulevard intersection.
Recently, Activity Center No. 9 has seen increased development activity, driven by the creation of the
PCSC and other strategic land acquisitions of the County. This includes the acquisition and
redevelopment of the former Golden Gate Golf Course, a one million square-foot Uline Corporation
distribution center, the addition of a last-mile Amazon fulfillment center, and other prospective initiatives
in development. The addition of a Great Wolf Resort in the area would continue the creation of a
community focal point, enhance the offerings of the PCSC, and add a substantial number of jobs and new
revenues to the County while diversifying our tourism offerings.
At the October 13, 2020 meeting, the Board entered a contract with Hunden Strategic Partners (HSP) for
a Market and Financial Feasibility Study. Hunden completed this work and presented a study, which was
accepted by the Board, at their February 26, 2021 meeting. The HSP study found through the
development of a 30-year proforma, that this development project would cost approximately $234
million. Based on the assumptions in this model, the net operating income in the pro forma would be able
to support developer equity of $57 million and an additional $157.5 million in private debt. This leaves a
funding gap of $19.5 million, including land costs, for the development of the hotel.
In addition, according to the HSP study, locating this project in Collier County is expected to generate
more than $5 billion in net new spending, $2.4 billion in net new earnings and more than 1,400 new full-
time equivalent jobs over a 30-year project horizon. Project-driven, increased Tourist Development, sales
and County property tax collections are expected to total approximately $150 million over the same 30-
year period. Based on the developer’s required internal rate of return the HSP study acknowledges that
some level of County investment would be necessary.
Staff and the HSP report examined likewise properties in other counties and municipalities that have
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included similar development investments for the company, as well as the annual sales and revenues
generated by likewise projects that received public investment. These properties have performed
consistently with the initial projections for revenues that were contained in the submitted proformas upon
development of an economic agreement. Following Board direction at the February 26, 2021 meeting,
County staff entered negotiations with Great Wolf - the goal was to develop an investment incentive that
is financed by fee deferrals with a fund advance that will be paid back over time by use of proceeds from
the Activity Center No. 9 Innovation Zone trust fund. Great Wolf Lodge is requesting funds from the
County to cover land, impact, and permit fees.
Great Wolf has agreed to backload the timing of the deferrals and economic incentive payments to later in
the project deadlines, which will allow time for a more mature Innovation Zone to develop, and also
decrease the net present value of funds to the County. In addition, the restructuring of payments to post -
opening of the facility will result in Great Wolf generating a projected $17 million in fees and revenues
prior to the County making its final payment on the economic incentive.
The agreement is a combination of fee deferrals and investment payments based upon distinct milestones:
1) Commencement of mass earthwork ($2 million); and,
2) 50% completion of the project ($3 million); and,
3) Certificate of Occupancy ($4 million); and,
4) Three years of grants following the opening of the facility (totaling $6 million).
The agreement provides protections against nonperformance by Great Wolf by placing a lien on the
property. The project will be in breach of contract and subject to funding clawback if at any point during
the course of the project, Great Wolf:
1) Submits a building permit application with drawings that do not substantially conform to the
specifications of the Facility as described in Exhibit A of the agreement; or
2) Fails to open the Facility by February 28, 2026; or
3) Closes the facility for 12 or more consecutive months within 10 years from the issuance of the
final Certificate of Occupancy.
FISCAL IMPACT: The proposed incentive is $15,000,000. Based on the project schedule provided by
Great Wolf the incentive could be paid out over approximately six years if project completion mileston es
are met. In the long-term funding for the incentive will be provided by Tax Increment Financing (TIF)
generated from Interchange Activity Center No. 9. In the short-term the scheduled incentive payments
will necessitate an internal loan of General Fund (001) monies to Interchange Activity Center No. 9 Fund
(783) through which incentive payments to Great Wolf will be made.
The TIF generated from Activity Center No. 9, estimated to be $4,459,495 over the next six years, will be
used cover a portion of the incentive payments leaving an estimated $10,540,505 to be advanced from the
General Fund. Estimates of the TIF generated in Interchange Activity Center No. 9 suggests the advance
could be retired in fifteen years. It should be noted that if project exec ution differs from the project
schedule provided by Great Wolf the timing of payments, the amount of available pay -go TIF funding
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and the amount of internal borrowing will vary from the figures provided here. A similar caveat applies to
tax value growth and TIF generated in Interchange Activity Center No. 9.
The execution of incentive payments to Great Wolf will be based on achieving specific milestones. When
earthwork for the project commences the County will become responsible for payment of permit and
impact fees of $2,000,000. When the project is certified to be 50% complete the County will become
responsible for a payment of $3,000,000 (net of the remaining balance of permit and impact fees). When
the certificate of occupancy is issued a payment of $4,000,000 will be due. In addition, at CO a cash
payment for project impact fees will also be due. The remaining payments to Great Wolf will be made in
three annual payments of $2,000,000 following opening of the facility. The table below illustrates the
proposed incentive payments and the sources of funding for those payments as well as the estimated
repayment of internal funds advanced to cash flow the payments.
By restructuring $6,000,000 (40%) of incentive payments to occur after the facility open s the economic
benefit of the $234,000,000 (+/-) million spent to construct the Great Wolf Resort will have already had a
positive impact on the Collier County economy. Additionally, the tax value of the Great Wolf facility
will have been added to the tax roll and be generating a TIF increment before the final incentive payments
are made. The same timing benefit applies to incremental sales tax and tourist tax collections as well as
employment impacts and net new spending. It is estimated that the restructuring of cash payments to post-
opening of the facility will result in Great Wolf generating a projected $17 million fiscal impact prior to
the County making its final payment on the economic incentive.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with
adoption of the strategic plan.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as
to form and legality, and requires a majority vote for approval. -JAK
RECOMMENDATION: The Board approve an economic development agreement for a proposed
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development project involving GWR Naples, LLC, at the City Gate Commerce Park adjacent to the
Paradise Coast Sports Complex, in the amount of $15,000,000.
Prepared by: Sean Callahan, Deputy County Manager
ATTACHMENT(S)
1. Collier County - GWR EDA Final (PDF)
2. Hunden Strategic Parnters Final Presentation 2-23-21 (PDF)
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COLLIER COUNTY
Board of County Commissioners
Item Number: 11.E
Doc ID: 16235
Item Summary: Recommendation to approve an economic development agreement for a
proposed development project involving GWR Naples, LLC, at the City Gate Commerce Park adjacent to
the Paradise Coast Sports Complex, in the amount of $15,000,000 (Sean Callahan, Deputy County
Manager).
Meeting Date: 06/22/2021
Prepared by:
Title: Sr. Operations Analyst – County Manager's Office
Name: Geoffrey Willig
06/15/2021 9:18 AM
Submitted by:
Title: – County Manager's Office
Name: Sean Callahan
06/15/2021 9:18 AM
Approved By:
Review:
Corporate Business Operations Jennifer Reynolds Additional Reviewer Completed 06/15/2021 9:45 AM
County Manager's Office Sean Callahan Additional Reviewer Completed 06/15/2021 9:46 AM
Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 06/15/2021 11:01 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/15/2021 11:51 AM
Budget and Management Office Ed Finn Additional Reviewer Completed 06/15/2021 1:50 PM
County Manager's Office Sean Callahan Level 4 County Manager Review Completed 06/16/2021 2:25 PM
Board of County Commissioners Geoffrey Willig Meeting Pending 06/22/2021 9:00 AM
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Prepared by: This space for recording
Jeffrey A. Klatzkow
County Attorney
3299 Tamiami Trail East, Suite 800
Naples, FL 34112
ECONOMIC DEVELOPMENT AGREEMENT
This Economic Development Agreement (hereinafter referred to as “Agreement”) is
entered into this ___ day of ________, 2021, by and between Collier County, a political
subdivision of the State of Florida, through its Board of County Commissioners (hereinafter
referred to as the "County"), and GWR Naples LLC, a Delaware limited liability company
(hereinafter referred to as “Great Wolf”), whose address is c/o Great Wolf Resorts, Inc., 350 N.
Orleans St., Suite 10000B, Chicago, IL 60654.
RECITALS:
WHEREAS, Collier County enjoys broad Home Rule Powers, which include the authority
to enter into agreements to enhance economic development within the County; and
WHEREAS, Florida Statute Sec. 125.045 expressly provides that “The governing body of
a county may expend public funds to attract and retain business enterprises, and the use of public
funds toward the achievement of such economic development goals constitutes a public purpose.
The provisions of this chapter which confer powers and duties on the governing body of a county,
including any powers not specifically prohibited by law which can be exercised by the governing
body of a county, must be liberally construed in order to effectively carry out the purposes of this
section;” and further that “it constitutes a public purpose to expend public funds for economic
development activities, including, but not limited to, developing or improving local infrastructure,
issuing bonds to finance or refinance the cost of capital projects for industrial or manufa cturing
plants, leasing or conveying real property, and making grants to private enterprises for the
expansion of businesses existing in the community or the attraction of new businesses to the
community;” and
WHEREAS, Great Wolf is in the process of acquiring property to build a Great Wolf Lodge
(hereinafter the “Facility”) within the Interchange Activity Center No. 9 Innovation Zone , which
Facility and parcel is identified in Exhibit A . The Interchange Activity Center 9 Innovation Zone
11.E.1
Packet Pg. 535 Attachment: Collier County - GWR EDA Final (16235 : Great Wolf Lodge)
Page 2
is comprised of Activity Center No. 9, as defined in the Future Land Use Element of the Collier
County Growth Management Plan, together with additional adjacent vacant industrial land, as
graphically described in Exhibit A of Ordinance 2018-39; and
WHEREAS, it is anticipated that Great Wolf will be hiring hundreds of employees for this
facility; and
WHEREAS, the Board expressly finds that the development and opening of this Facility
(the “Project”) will result in substantial economic benefits to the County, including but not limited
to the creation of hundreds of jobs and a net increase to the County’s tax base.
NOW, THEREFORE, in consideration of the foregoing Recitals, and other good and
valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged, the
Parties agree as follows:
1. The foregoing Recitals are true and correct and are incorporated by reference
herein.
2. In recognition of the mutual desire of Great Wolf and the County to continually
enhance the capabilities and success of area hospitality training and education to create long-term
benefits for the local hospitality industry, Great Wolf will fund a program that delivers grants to
area universities, colleges, and/or schools to enhance and benefit hospitality job training or
education programs specifically in the areas of culinary arts, maintenance/engineering, and/or
guest services. Great Wolf’s funding commitment for the program will be $500,000 in the
aggregate within a ten-year period, which period may begin in Great Wolf’s discretion, provided
Great Wolf shall have delivered at least $50,000 of the funding commitment no later than the one
year anniversary of opening the Facility to the public. Great Wolf may satisfy all or any portion
of the funding commitment by either delivering funds directly to one or more area universities,
colleges, and/or schools, or by delivering the grant funds described herein to the County for further
distribution to area universities, colleges and/or schools, which distribution and allocation shall be
determined by the County so long as consistent with the use of funds described in this Section 2.
3. The Board hereby agrees to assist Great Wolf with this Project with grants during
the construction phase of the Facility totaling $9 million as follows:
11.E.1
Packet Pg. 536 Attachment: Collier County - GWR EDA Final (16235 : Great Wolf Lodge)
Page 3
A. $2.0 million paid to Great Wolf upon commencement of mass earthwork on the parcel,
which commencement must occur no later than August 31, 2023 for Great Wolf to
receive full payment of this portion of the grant except in the event of an Excused
Delay. Should mass earthwork commence after August 31, 2023 (as such date may be
extended by an Excused Delay), the County will reduce this portion of the Grant by
$50,000 for each full calendar month by which commencement of mass earthwork is
delayed beyond such date. Payment of the $2.0 million may be in the form of an offset
against permit, impact or other fees that would otherwise be charged by Collier County
to Great Wolf in the ordinary course and at the ordinary rates as part of the Project;
provided, however, to the extent the aggregate total of all such offset fees incurred as
of the commencement of mass earthwork or that are finalized and to be incurred within
six months thereafter is less than $2.0 million as of the commencement of mass
earthwork, Collier County shall make payment of such difference to Great Wolf no
later than commencement of mass earthwork.
B. $3.0 million paid to Great Wolf upon the Project’s Architect of Record certifying that
the Project’s schedule is at least 50% completed (the “Architect Certification”).
Payment of all or a portion of the $3.0 million may be in the form of an offset against
permit, impact or other fees that would otherwise be charged by Collier County to Great
Wolf in the ordinary course and at the ordinary rates as part of the Project; provided,
however, to the extent the aggregate total of all such offset fees incurred as of the
Architect Certification that have not previously been offset against payment owed by
the County under Section 3.A. herein is less than $3.0 million as of the Architect
Certification, Collier County shall make payment of such difference to Great Wolf no
later than thirty days following its receipt of the Architect Certification.
C. $4.0 million paid to Great Wolf upon issuance of a Certificate of Occupancy (either
temporary or final shall vest Great Wolf’s right to the payment). A Certificate of
Occupancy must be issued no later than February 28, 2026 except in the event of an
Excused Delay. Should a Certificate of Occupancy not be issued on or before February
28, 2026 (as such date may be extended by an Excused Delay), the County will reduce
this portion of the Grant by $50,000 for each full calendar month by which issuance of
a Certificate of Occupancy is delayed beyond such date.
11.E.1
Packet Pg. 537 Attachment: Collier County - GWR EDA Final (16235 : Great Wolf Lodge)
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Time is of the essence with respect to the above payment schedule. All payments are
conditioned on Great Wolf remaining current on all local taxes.
As used herein, “Excused Delay” shall mean a delay or closure related to or arising out of
any war, terrorism or the imminent threat thereof, insurrection, civil commotion, riots, labor
disputes, the inability to secure adequate financing on commercial terms acceptable to Great Wolf,
strikes, lockouts, embargoes, hurricanes or named windstorms, unusual weather, fire, casualty,
pandemic, epidemic, quarantine, any other public health restrictions or public health advisories,
disruption to local, national or international transport services, governmental restrictions, any
rationing of public services or utilities, or litigation brought on by a third party (but only to the
extent performance is enjoined by a court of competent jurisdiction as a result of such litigation),
unavoidable casualties, other causes beyond the reasonable control of Great Wolf, or any
unreasonable condition or delay by the County in providing any required approval or permit
necessary for the Project, including, without limitation, authorization for commencement of mass
earthwork or issuance of a Certificate of Occupancy.
4. The Board hereby agrees to assist Great Wolf with this Project during the
operational phase with grants totaling $2.0 million per year for a total of three years, with the first
installment due upon the first anniversary of the opening of the Facility to the public and the next
two installments due on each anniversary thereof for the subsequent two years.
5. This Agreement is personal to Great Wolf, shall constitute a lien on the property
(provided such lien shall be subordinate to any and all other security interests placed on the
property), and cannot be assigned or transferred by Great Wolf without the prior written consent
from the County other than as provided in this Section 3. Great Wolf may transfer its rights and
obligations pursuant to this Agreement without the consent of the County to: (A) any affiliate of
Great Wolf; (B) any lender as part of a collateral assignment thereto; and (C) upon prior written
notice to County (so long as such notice is not prohibited under any applicable confidentiality
obligations of Great Wolf), any assignee of Great Wolf’s interest in this Agreement that agrees to
assume all rights and obligations of Great Wolf hereunder. Any change of control of Great Wolf
that does not cause Great Wolf to transfer its direct ownership rights in the Project shall not require
consent of the County.
6. Unless extended by the County, this Agreement will be in substantial breach upon:
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Packet Pg. 538 Attachment: Collier County - GWR EDA Final (16235 : Great Wolf Lodge)
Page 5
(a) Great Wolf’s submission for a building permit application with drawings that do not
substantially conform to the specifications of the Facility as described herein. Upon the County’s
determination that the submitted drawings do not substantially conform to the specifications of the
Facility as described herein, Great Wolf shall have 90 days from the County’s written demand to
submit revised drawings that substantially conform to the specifications of the Facility as described
herein following the County’s reasonable determination that the drawings do not so conform, and
upon Great Wolf’s failure to do so as reasonably determined by the County, this Agreement shall
terminate unless Great Wolf is actively contesting the County’s determination that the drawings
are non-conforming; or
(b) the failure by Great Wolf to open the Facility by February 28, 2026, as such date may
be extended to the extent of an Excused Delay. Upon such a breach, all prior payments must be
repaid to the County within 180 days from the County’s written demand, and any future payments
will become void; or
(c) the closure of the Facility for 12 or more consecutive months within 10 years from the
issuance of the final Certificate of Occupancy except in the case of a closure attributable to an
Excused Delay. Upon such a closure, all grants paid under this Agreement must be repaid to the
County within 30 days from the County’s written demand, which amount will reduced by 10% for
each and every full year the Facility is open following the issuance of the final Certificate of
Occupancy; or
(d) the failure of Great Wolf to fully fund the grant program described herein at Section 2
by the expiration of the ten-year period described therein; provided, however, Great Wolf shall not
be in substantial breach of this Agreement for such failure unless and until its aggregate
commitment remains less than fully funded for more than ninety days following the County’s
written notice of its determination that Great Wolf has failed to timely fund its aggregate
commitment.
Legal Matters
7. Except as otherwise provided herein, this Agreement shall only be amended by
mutual written consent of the parties hereto or by their successors in interest. All notices and other
communications required or permitted hereunder shall be in writing and shall be sent by Certified
Mail, return receipt requested, or by a nationally recognized overnight delivery service, and addressed
as follows:
11.E.1
Packet Pg. 539 Attachment: Collier County - GWR EDA Final (16235 : Great Wolf Lodge)
Page 6
To County:
Collier County
Harmon Turner Building
3299 Tamiami Trail E., Suite 200
Naples, Florida 34112
Attn: County Manager
Phone: (239) 252-8383
Facsimile: (239) 252-4010
To Great Wolf:
c/o Great Wolf Resorts, Inc.
350 N. Orleans St., Suite 10000B
Chicago, IL 60654
Attn: Development Department
Phone: (708) 967-3300
Notice shall be deemed to have been given on the next successive business day to the date of
the courier waybill if sent by nationally recognized overnight delivery service.
8. This Agreement constitutes the entire agreement between the parties with respect
to the activities noted herein and supersedes and takes the place of any and all previous agreements
entered into between the parties hereto relating to the transactions contemplated herein. All prior
representations, undertakings, and agreements by or between the parties hereto with respect to the
subject matter of this Agreement are merged into, and expressed in, this Agreement, and any and
all prior representations, undertakings, and agreements by and between such parties with respect
thereto hereby are canceled.
9. Nothing contained herein shall be deemed or construed to create between or among
any of the parties any joint venture or partnership nor otherwise grant to one another the right,
authority or power to bind any other party hereto to any agreement whatsoever.
10. This Agreement shall be governed by the laws of Florida. In the event state or
federal laws are enacted after the execution of this Agreement, which are applicable to and
preclude in whole or in part the parties’ compliance with the terms of this Agreement, then in such
event this Agreement shall be modified or revoked as is necessary to comply with such laws, in a
manner which best reflects the intent of this Agreement.
11. Great Wolf shall execute this Agreement prior to it being submitted for approval
by the Board of County Commissioners. This Agreement shall be recorded by the County in the
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Packet Pg. 540 Attachment: Collier County - GWR EDA Final (16235 : Great Wolf Lodge)
Page 7
Official Records of Collier County, Florida, within fourteen (14) days after the County enters into
this Agreement. The County shall pay all costs of recording this Agreement. The County shall
provide a copy of the recorded document to Great Wolf upon request.
12. In the event of a dispute under this Agreement, either party may file an action for
relief in the Circuit Court of Collier County as the sole and exclusive venue for any dispute arising
under this Agreement to enforce the terms of this Agreement, said remedy being cumulative with
any and all other remedies available to the parties for the enforcement of this Agreement, with the
prevailing party entitled to all costs and expenses associated with such suit, including reasonable
attorney’s fees.
[Signature Page Follows]
11.E.1
Packet Pg. 541 Attachment: Collier County - GWR EDA Final (16235 : Great Wolf Lodge)
Page 8
IN WITNESS WHEREOF, the Parties have executed this Agreement on the date and
year first above written.
ATTEST:
Crystal K. Kinzel, Clerk of Courts BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
By: ______________________________ By: ______________________________
, Deputy Clerk Penny Taylor, Chairman
Approved as to form and legality:
______________________________
Jeffrey A. Klatzkow, County Attorney
AS TO GWR NAPLES LLC
Signed, sealed and Delivered:
By: Steven J Jacobsen
Signature
Steven J Jacobsen
Printed Name
Vice President of Domestic Development
Title
STATE OF ______________
COUNTY OF ________________
The foregoing Agreement was acknowledged before me by means of □ physical presence
or □ online notarization this _____ day of ______________, 2021, by
_______________________(name), _______________ (title) on behalf of GWR Naples LLC,
who is □ personally known to me or □ has produced ______________________ as proof of
identity.
[NOTARIAL SEAL] ____________________________________
Signature of Person Taking Acknowledgment
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Packet Pg. 542 Attachment: Collier County - GWR EDA Final (16235 : Great Wolf Lodge)
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EXHIBIT A
DESCRIPTION OF FACILITY AND PARCEL
FACILITY:
A Great Wolf Lodge branded resort including 500 rooms with an indoor water park, outdoor
pool, entertainment, restaurants, arcades, attractions, and meeting space, which amenities may be
open to use for both hotel guests and daily visitors (provided, County acknowledges that space
and amenities within the Facility may be repurposed from time to time based upon market
conditions and changes in guest profile at the discretion of Great Wolf).
PARCEL:
Lot 10 as shown on the Plat of CITY GATE COMMERCE PARK, PHASE THREE REPLAT
NO. 5 PLAT, recorded in Plat Book ____, Page ___ through ___, Public Records, Collier County,
Florida.
ALL THAT PART OF LOT 10 OF CITY GATE COMMERCE PARK PHASE THREE REPLAT
NO. 4 AS RECORDED IN PLAT BOOK 68, PAGES 69 THROUGH 73 OF THE PUBLIC
RECORDS OF COLLIER COUNTY, FLORIDA, BEING DESCRIBED A S FOLLOWS:
BEGINNING AT THE NORTHWEST CORNER OF SAID LOT 10 RUN N89°13'00"E ALONG
THE NORTHERLY LINE OF SAID LOT 10 FOR A DISTANCE OF 276.16 FEET TO A POINT
OF CURVATURE;
THENCE 486.04 FEET ALONG THE ARC OF A CURVE TO THE RIGHT, HAVING A
RADIUS OF 4,915.00 FEET, A CENTRAL ANGLE OF 05°39'57" AND A CHORD DISTANCE
OF 485.84 FEET, BEARING S87°57’00”E TO A POINT OF REVERSE CURVATURE;
THENCE 510.46 FEET ALONG THE ARC OF A CURVE TO THE LEFT HAVING A RADIUS
OF 5,162.00 FEET, A CENTRAL ANGLE OF 05°39'57" AND A CHORD DISTANCE OF
510.25 FEET, BEARING S87°57’00”E TO A POINT OF TANGENCY;
THENCE N89°13’01”E FOR A DISTANCE OF 56.70 FEET;
THENCE LEAVING SAID LINE S00°47’00”E FOR A DISTANCE OF 633.98 FEET;
THENCE S89°13’01”W FOR A DISTANCE OF 1326.18 FEET TO THE WEST LINE OF SAID
LOT 10;
THENCE ALONG SAID LINE N00°54'49"W FOR A DISTANCE OF 683.20 FEET TO THE
POINT OF BEGINNING;
THE ABOVE DESCRIBES AN AREA OF APPROXIMATELY 879,099 SQUARE FEET OR
20.18 ACRES OF LAND.
11.E.1
Packet Pg. 543 Attachment: Collier County - GWR EDA Final (16235 : Great Wolf Lodge)
Collier County
Great Wolf Lodge
Market Study &
Impact Analysis
Final Presentation
February 23, 2021
1
11.E.2
Packet Pg. 544 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
KEY QUESTIONS
What value of incentives
from Collier County is
needed to make this
Project successful?
How do the key factors in
Collier County affect a
Great Wolf
development?
What is the value of a
Great Wolf being
developed in Collier
County?
PROJECT OVERVIEW
How will this Great Wolf
development perform
and what will its impact
be?
2
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Packet Pg. 545 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
Project Profile
3
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Packet Pg. 546 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
Great Wolf Lodge
4
Great Wolf Lodge is a subsidiary of the
Blackstone Group.Great Wolf opened
its first resort in 1997 in Wisconsin Dells,
Wisconsin and currently has 18 fully-
operational resorts around the country.
The company is well-known for selling
guests on their destination experience.
This experience includes an array of on-
site offerings such as a large indoor
waterpark,family entertainment
offerings,ballroom and meeting space,
food and beverage outlets and a variety
of suite designs that can accommodate
up to 12 guests in one suite.
11.E.2
Packet Pg. 547 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
Project Orientation
5
HSP was retained by to conduct a third-
party market and financial feasibility
study they will determine the viability,
financial gap and fiscal impacts of the
proposed Great Wolf Lodge
development adjacent to the new
Paradise Coast Sports Complex in
Collier County,Florida.
Great Wolf Lodge is requesting Collier
County to incentivize the Project
through mitigation of certain costs and
fees.
11.E.2
Packet Pg. 548 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
Proposed Plan
6
The Project is proposed to include the
following elements:
§20-acre site
§500 guest rooms
§Indoor waterpark
§Family entertainment center
§Conference center
§Outdoor pool area
§800+parking spaces
The Project is expected to cost $234
million total,with roughly $8-10 million for
land costs,$115 million for the
construction costs with the remainder
coming from soft costs.The indoor
waterpark is expected to account for
roughly $40 million of the hard
construction costs.
11.E.2
Packet Pg. 549 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
Site Overview
The Great Wolf Lodge Naples is currently proposed to be located on a 20-
acre site along City Gate Boulevard North,north of Interstate 75 and east
of Collier Boulevard next to the newly developed Paradise Coast Sports
Complex.
There are multiple hotels,restaurants,stores and RV park resorts located
on both sides of I-75 near the Collier Boulevard exit.The Project site is
approximately ten miles from downtown Naples and eight miles Naples
Airport.
11.E.2
Packet Pg. 550 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
Paradise Coast
Sports Complex
8
The Paradise Coast Sports Complex,located
adjacent to the proposed Great Wolf Lodge
Naples,is a $110 million youth sports
complex with nine soccer fields,ten baseball
diamonds,and a 3,500-seat stadium.The
complex also has an outdoor bar,great lawn
with a capacity of 1,000 people for events,
and aa outdoor workout space.Phase one of
the complex is currently open and the entire
complex is expected to be fully operational
by 2023.The complex already has several of
its available weekends booked for sporting
tournaments.
The Paradise Coast Sports Complex is
planning to drive significant economic
impact for Collier County by targeting
major,regional events.The synergies
between Paradise Coast and the proposed
Great Wolf Lodge Naples will present
opportunity for both projects to induce
economic impact in the area.
GWL
Projec
t
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Packet Pg. 551 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
Demographic Strength
9
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Packet Pg. 552 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
GWL/Paradise
Coast Synergy
10
The synergy between the Great Wolf
Lodge development and the recently
developed Paradise Coast Sports
Complex will be beneficial for both
properties and create a unique,family
entertainment complex.
HSP analyzed the 2-,4-,and 6-hour
drive time populations from Collier
County to better understand the
potential population base that these
properties can separately and jointly
attract visitation and spending from.
Within a 6-hour drive time from Collier
County,there is a population base of
more than 20 million people.
11.E.2
Packet Pg. 553 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
Drive Time Markets
The adjacent table details the two-,
four-,and six-hour drive time
demographics of various GWL
locations across the county.
HSP compared these highly
populated,high-income areas in the
Seattle,Dallas-Fort Worth and
Orange County (CA)metro areas
where other GWL’s have been
developed.
As shown,despite the fact that
Collier County is located at the far
end of the state and therefore has
limited radii to capture people on
land,the 4-hour total household
income is $50 billion higher than in
the average of the other major
markets.11
11.E.2
Packet Pg. 554 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
SWOT Analysis
12
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Packet Pg. 555 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
13KEY FACTORS
THE LOCAL MARKET SITE THE INDUSTRY
Diversifies Tourism Product
The local market relies on tourism to
support the community.The area is
well-known for its beaches,natural
attractions and climate.The
Southwest Florida market has
experienced significant population
growth in the last decade and related
development has followed this
growth.
The retirement community is robust
and growing,however all
demographics are growing.
Unique Project Synergies
The site will play a significant role in
the success of this development.
The adjacency of this development
to the Paradise Coast Sports
Complex,the newly developed
$100 million youth sports and
entertainment complex,will be
extremely beneficial for this
development.
Struggling,but Positive O utlook.
The lodging industry has struggled
tremendously through the COVID-
19 pandemic.TDT Taxes were down
~15%in 2020.However,this
performance compares favorably to
the nation as a whole,which
declined by 50%in hotel revenue.
The industry reached in all-time
high,in terms of performance,in
2019 and is projected to bounce
back to those standards within the
next 2-3 years.
In order to assess the viability of any project and make informed decisions,there are six key factors that were
considered.
13
11.E.2
Packet Pg. 556 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
14KEY FACTORS
THE DEMAND THE SUPPLY THE CASE STUDIES
Family Entertainment Options.
There is latent demand for family
entertainment in the community,
especially something that is not
reliant on favorable weather.Local
families also seek alternative
recreation and entertainment
activities.
The adjacency of the Project to the
Paradise Coast Sports Complex will
induce additional demand for both
properties.
Local Resorts.Regional Competition.
The local lodging market is highlighted
by several large,upscale resort
properties that are the rate leaders in
the market.The ability to mitigate the
seasonality of the area will be a key
differentiator for this Project.
Outside of the family entertainment that
the large resorts offer their guests,the
area is lacking an indoor family
entertainment facility.
Destination Development.
Destination developments rely on
their ability to keep guests onsite by
offering guests an array of
entertainment,dining,and meeting
options.
These developments attract
visitation from an array of drive-
times ranging from local areas to
across the country.
The following slides summarize the key factors.In order to assess the viability of any project and make informed
recommendations,there are six key factors that must be considered.
14
11.E.2
Packet Pg. 557 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
15GREAT WOLF LODGE DEVELOPMENT SWOT ANALYSIS
INTERNAL FACTORS EXTERNAL FACTORS
POSITIVENEGATIVE§Adjacency to Sports Complex
§GWL Reputation
§Existing Tourism Base
§South Florida Demographics
STRENGTHS
WEAKNESSES
§Lack of Local Competition
§Paradise Coast Sports Complex
§Growing Local/Regional Population
OPPORTUNITIES
§Competition from Regional Resorts
§Other uses would not be the highest and
best use
THREATS
How External and Internal Factors Affect Potential Development
15
11.E.2
Packet Pg. 558 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
Comparable Situations
16
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Packet Pg. 559 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
Great Wolf Lodge Waterpark
LaGrange, GA
#of Hotel Rooms:456
Total Project Cost:$170 million
Total Reported Incentives:N/A
Primary Incentive Structure:Bond Issuance,Hotel/Motel Tax Rebate
Key Takeaways :
§The LaGrange Great Wolf Lodge opened in 2017.
§The Resort attracts most of its local visitation from the Atlanta metro area
and attracts regional visitation from the Southeastern U.S.
§Other than the waterpark,The LaGrange Great Wolf Lodge has an array of
family entertainment activities including a rock climbing wall,mini putt-
putt course,Build-A-Bear workshop,arcade,small bowling alley,and
many other attractions.
17
11.E.2
Packet Pg. 560 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
18
HSP,using data from Placer.ai,
analyzed 2019 visitation to the
Great Wolf Lodge Resort in
LaGrange,GA to better
understand the demand of the
facility.
This regional/national map shows
that the Resort generates most of
its visitation from Georgia and
Alabama,but pulls notable
visitation from many major
southeastern metro areas
Roughly 16%of the visitors to the
Resort,that visited in 2019,came
from more than 250 miles away.
Regional
Presence
Visitor Origin Legend Est. Number
of Visits
Percent of
Total Visits
Avg Visits /
Customer
Local/Regional - Within 125 miles 800,100 67.2%2.98
Regional - 125 to 250 miles 201,300 16.9%2.56
Regional/National - Over 250 miles 188,600 15.8%2.90
Total Visits 1,190,000 100.0%--
Source: Placer.ai
Great Wolf Resorts, LaGrange, GA - Visitation Statistics (2019)
11.E.2
Packet Pg. 561 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
Current
Visitation
19
The following figures detail the
local,regional,and national
visitation to the Great Wolf
Lodge Resort in LaGrange,GA.
The top graphic details strong
visitation from visitors within 125
miles and spikes in all visitation
during school breaks and
summer months.
The middle graphic highlights
how consistent visitation is
throughout the week,with a
slight increase in visitation on the
weekends.
11.E.2
Packet Pg. 562 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
Case Studies Implications
HSP examined other Great Wolf Lodge projects and comparable lodging destination developments around the
country to better understand how the Project will be built and perform.
§Public Sector Support is key to pushing these projects into the development stage.While the most common
way to incentivize these projects is through a bond issuance,municipalities can get creative and structure
these deals many ways.
§Local/Regional/National Destination.These major destination lodging projects attract visitors from local areas
to areas across the country,due to their ability to offer guests a destination experience.
§On-site Critical Mass.The key ingredient to the success of these developments is the ability to keep guests
engaged around the clock with an array of entertainment,event,food and beverage,retail,and lodging
offerings.
§Drive-Time Synergies.These destination developments typically capture the majority of their visitation within a
6-hour drive time.Having nearby additional major tourism developments (sports complex,convention center,
etc.)greatly enhance this capture.
20
11.E.2
Packet Pg. 563 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
GWL Comparable
Developments
Based on information provided by GWL, HSP compiled specific data points on similar
projects to inform the County regarding potential levels of incentives for the Project.
The three Great Wolf Resorts, one Kalahari Resort, and one Gaylord Texan
Resort, exhibit a range of project sizes, costs and level of incentives
received/requested. The average project has a cost of $375,000 per guest room
when including all project elements. The project incentives reported averaged
$55 million, which represents 23 percent of total project costs. The primary
incentive structures provided to the projects were bond issuances and/or
transient occupancy tax rebates.
Great Wolf Lodge Naples - Comparable Projects & Incentives
Project
Great Wolf Resorts
Water Park Hotel
Kalahari Resort
Hotel and
Convention Center
Gaylord Texan
Resort and
Convention Center
Great Wolf Resorts
Water Park Hotel
Great Wolf Resorts
Water Park Hotel Average
Great Wolf
Resorts Water
Park Hotel*
Location Garden Grove, CA Round Rock, TX Grapevine, TX Manteca, CA Jackson, TN --Naples, FL
Hotel Guest Rooms 600 975 1,020 500 450 709 500
Total Project Cost (millions)$300 $350 $330 $180 $150 $262 $234
Cost per Guest Room (000s)$500 $359 $324 $360 $333 $375 $468
Total Reported Incentives (millions)$69 $70 $37 $40 $60 $55 $15 - $20
Incentives per Guest Room (000s)$115 $72 $36 $80 $133 $87 $30 - $40
Incentive % of Total 23%20%11%22%40%23%7% - 9%
Primary Incentive Structure
Bond issuance,
TOT rebate
Bond issuance,
Land Discount TOT rebate, TIF TOT rebate
Property Tax
Abatement, Land
Discount
--TBD
*Based on estimated project costs and incentives
Source: Great Wolf Resorts
11.E.2
Packet Pg. 564 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
Financial & Tax Projections
22
11.E.2
Packet Pg. 565 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
Hotel Pro Forma The 500-room Great Wolf Lodge is projected to achieve a total revenue of
$65.7 million in Year 1 and $141.3 million in Year 30.By Year 3,the Great
Wolf Lodge is projected to achieve an occupancy rate of 84 percent and an
average daily rate of $317 per night.
Proforma - Collier County Great Wolf Lodge
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 20 Yr 30
Rooms 500 500 500 500 500 500 500 500 500 500 500 500
Occupancy Rate 72%77%84%84%84%84%84%84%84%84%84%84%
Average Daily Rate 299$ 305$ 317$ 337$ 343$ 350$ 357$ 364$ 372$ 379$ 462$ 563$
Occupied Room Nights 131,400 140,525 153,300 153,300 153,300 153,300 153,300 153,300 153,300 153,300 153,300 153,300
Revenue (000s)
Total 65,764$ 71,737$ 80,792$ 84,442$ 86,131$ 87,854$ 89,611$ 91,403$ 93,231$ 95,096$ 115,921$ 141,308$
Source: Hunden Strategic Partners
11.E.2
Packet Pg. 566 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
Supportable
Value & Gap
The hotel is expected to cost $234 million.
Based on the assumptions in this model,
the NOI would be able to support
developer equity of $57 million and an
additional $157.5 million in private debt.
This leaves a funding gap of $19.5 million,
including land costs,for the development
of the hotel,which will need to be
subsidized by public funds.
Great Wolf Lodge requires a leveraged IRR
of 17-19 percent in Year 3.
24
Supportable Financing (000s) - Hotel
Debt Assumptions
Loan Amount 157,500$
Amortization Period (Years)25$
Loan Interest Rate 8.0%
Annual Debt Service Payment (14,754)$
Financing
Developer's Equity 57,000$ 27%
Private Debt 157,500$ 73%
Total Supportable Private Financing 214,500$ 100%
Gap 19,500$ 8%
Project Amount 234,000$ 100%
Source: Hunden Strategic Partners
11.E.2
Packet Pg. 567 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
Summary of
30-Year Impacts
The Project is expected to generate more
than $5 billion in net new spending,$2.4
billion in net new earnings and more than
1,400 new full-time equivalent jobs at
stabilization.
Capturable fiscal impact accruing to the
County is expected to total approximately
$150 million in taxes during the 30-year
period.
25
11.E.2
Packet Pg. 568 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
Incentive Payback Periods
HSP identified the projected full payback periods,based on fiscal impact
from the project,related to a range of requested incentives from Collier
County.
Great Wolf Lodge is requesting $15 to $20 million of incentives from the
County to cover land,impact,and permit fees.These requested incentives
would take 4 to 5 years to pay back in full.
11.E.2
Packet Pg. 569 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
Headlines
§Unique,Valuable Development.Great Wolf Lodge developments provide communities with a unique lodging
destination that is found in very few communities around the country.Communities around the country would love to
attract a Great Wolf Lodge development.These developments induce a tremendous amount of visitation and impact
for communities.
§Reasonable Incentive Package request from Great Wolf when compared to comparable developments around the
country.The requested incentive package that Great Wolf Lodge is asking for from the is considerably lower than
other requested packages around the country.The strength of the market makes this deal achievable for both
involved parties.
§Synergy.The location of the Great Wolf Lodge will induce immediate synergies between the Lodge and the Paradise
Coast Sports Complex.These developments will aim to attract families locally and regionally by creating a destination
experience that is unique from any other Great Wolf Lodge or youth sports complex around the country.
§Not Competing with Other Local Projects.Great Wolf Lodge adds an asset to Collier County that currently does not
exist,but its uniqueness makes it not directly competitive with other local tourism developments.
§GWL Interest in South Florida.Great Wolf Lodge has expressed extreme interest in developing one of their properties
in South Florida and if not in Collier County,then they will find another municipality in South Florida to pursue.
27
11.E.2
Packet Pg. 570 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)
28
Hunden Strategic Partners is a full-service real estate
development advisory practice specializing in destination assets.
With professionals in Chicago, San Diego, Indianapolis and
Minneapolis, HSP provides a variety of services for all stages of
destination development in:
-Real Estate Market & Financial Feasibility
-Economic, Fiscal & Employment Impact Analysis (Cost/Benefit)
-Organizational Development
-Public Incentive Analysis
-Economic and Tourism Policy/Legislation Consulting
-Research & Statistical Analysis
-Developer Solicitation & Selection
The firm and its principal have performed more than 800 studies
over the past 20 years, with more than $6 billion in built,
successful projects.
28
For further information about Hunden Strategic
Partners, please contact:
Hunden Strategic Partners
213 W. Institute Place, Suite 707
Chicago, Illinois 60610
312.643.2500
www.hundenpartners.com
11.E.2
Packet Pg. 571 Attachment: Hunden Strategic Parnters Final Presentation 2-23-21 (16235 : Great Wolf Lodge)