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Item P7BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY Meeting Date: October 17, 2012 Bulk Item: Yes No X Division: County Attorney Staff Contact Person: Natileene Cassel Contract # 292-3470 AGENDA ITEM WORDING: Discussion and possible vote on the recommendation of the selection committee regarding two proposals received on September 12, 2012, regarding the latest Hickory House RFP. The selection committee ranked the two proposals and recommended that neither proposal be accepted. ITEM BACKGROUND: The bid opening for the latest RFP on the Hickory House was held on September 12, 2012. A proposal was received from Florida Yacht Charters and Richard Buckheim. These are the same two proposers who responded to the prior RFP. On September 27, 2012, the selection committee met and determined that both of the submittals contained irregularities and moved forward with evaluating the proposals. The committee reviewed the proposals individually, held detailed discussion and ranked Florida Yacht Charter's proposal first. However, the committee felt that it was not in the best interest of the county for the BOCC to accept either proposal and recommended that the BOCC reject both proposals and not advertise for another RFP. Following the meeting the representatives of the proposers and the committee held frank conversations regarding any future offerings. These discussions will be brought to the BOCC for consideration and information. PREVIOUS RELEVANT BOCC ACTION: In August 2006, the County purchased the property located at 5948 Peninsula Avenue, Stock Island, Florida. A bid from King's Pointe Marina LLC (KPM) was initially accepted, and then canceled in August 27, 2008. Subsequent RFPs were rejected by the BOCC on August 19, 2009, November 19, 2009, October 20, 2010 and September 21, 2011. CONTRACT/AGREEMENT CHANGES: N/A STAFF RECOMMENDATIONS: Reject both proposals TOTAL COST: -0- BUDGETED: Yes N/A No _ DIFFERENTIAL OF LOCAL PREFERENCE: both proposals contained a local preference COST TO COUNTY: see above SOURCE OF FUNDS: REVENUE PRODUCING: Yes _ No AMOUNT PER MONTH Year C�- APPROVED BY: County Atty A-U) OMB/Purchasing Risk Management _ DOCUMENTATION: Included X Not Required (Included are the pertinent portions of each proposal, the financial records are confidential and are not attached.) DISPOSITION: AGENDA ITEM # Response to Request for Sale/Purchase/Lease of the "Hickory House" Property Proposer: Florida Yacht Charters & Sales, Inc. D.B.A. Florida Yacht Group 1177 Avenue C West Palm Beach, FL 33404 Phone: (561) 844-1100 David P. Sell lab I U8r 5 L Executive Summary Florida Yacht Charters & Sales, Inc. D.B.A. Florida Yacht Group (FYG) has operated a bareboat charter fleet of sailing and power boats since 1983. FYG was purchased by David P. Sell in 2007. The company currently operates bases in Key West, Miami, St. Petersburg and Marsh Harbour, Bahamas. In addition to its charter fleet, FYG sells new and used boats as well as providing service for vessels. FYG currently represents the world's two largest sailboat manufacturers (Beneteau and Jeanneau) and the world's second largest catamaran manufacturer (Fountaine Pajot). The current office of Florida Yacht Group is located across the street from the Hickory House at 5950 Peninsular Avenue in Oceanside Marina. The office has been managed by Laura Kirby and Vanessa Linsley for over twelve years now. Florida Yacht Group's proposal is to lease, then purchase the Hickory House Property in order to own a permanent base in Key West. Although section 1.01 B. 6. instructs proposers not to include use of the bay bottom adjacent to the property, section 1.01 E. and 1.04 B. do indicate that the county desires a "Detailed and Complete Proposal". FYG believes open and full disclosure is the best policy. FYG phone calls and emails to/from the state indicate their willingness to renew the Bay Bottom Lease and willingness to permit repair of the existing docks. Therefore, FYG must disclose if it obtains permission to do so from the state, it will immediately repair or replace the docks to permit dockage of 6 to 9 catamarans which will operate in the FYG charter fleet. If FYG is unable to obtain permission to do so, it will leave the fleet at Oceanside Marina and utilize the property solely for it its commercial/retail and residential value. It also intends to eventually tear down and rebuild the premises according to local building codes. The first floor will be allocated to commercial, office and retail space while the second floor will be assigned to affordable housing rental properties. rV fl-e Relevant Experience Florida Yacht Group has 30 years of experience operating a marine dealership and charter fleet and over 15 years in Key West. We operate our bareboat charter fleet 365 days a year in our current location, which also serves as a yacht sales location. Our staff can provide best advice, guidance and support whether purchasing a new or used boat or selling one. Laura Kirby and Vanessa Linsley have both been residents of Key West since 1997. They have tremendous experience in the boating industry. David P. Sell, the owner of FYG has vast experience in the corporate sector. He began his career working for Proctor & Gamble. He retired as President of Burger King France & Germany at the age of 37. Following his retirement, he has started his own consulting business, export company, land development and residential construction companies. Most recently he purchased the yacht dealerships of Eastern Yachts and Yacht Sales Florida along with Florida Yacht Charters & Sales, Inc. to form the Florida Yacht Group. David P. Sell is also the owner of BEEN Construction Company LLC which has vast experience in small and large construction projects. REEN has been in business since 1999. Since his construction company is based in Pennsylvania, he will act as a General Contractor and use local construction companies to perform the demolition and new construction on the property. More information about REEN Construction Company LLC can be found at www.reenhomes.com �u1 -S Services 1. Bareboat chartering: Vessels consist of two (2) to five (5) cabins allowing families and friends of parties up to ten (10) to experience Key West and the surrounding areas. In addition to provisioning, each charter group of 8 typically spends about $4,200.00/week on souvenirs, dining out, other supplies and other purchases. Assuming 20 weeks/year x 8 boats, this amounts to $672,000.00 additional annual benefit to the local economy. 2. Local provisioning: FYG provides provisioning as a service to our charter clients, but they also do their own shopping at local grocery stores and marine outlets. Typical provisioning costs for an 8 person charter week averages $2,800.00. Assuming 20 weeks/year x 8 boats, this totals $448,000.00 to the local economy. 3. Marine repair services: We provide service repairs for our charter owners and also for retail customers as needed. 4. Sailing School: Florida Yacht Group is licensed by the American Sailing Association to provide sailing instruction and certification for students. 5. Sales: We offer professional licensed brokers to handle new and used vessel sales. 6. Boat cleaning: Our staff provides cleaning services to our charter owners in addition to performing retail work. 7. Commercial and retail office space: FYG proposes to develop 4 to 7 pads (depending on zoning codes) of approximately 1,600 sq. ft. /pad for commercial and retail office space. 8. Affordable housing: FYG proposes a second floor of 8 to 12 affordable housing for local workers to rent. These would be small 1 bedroom units of approximately 800 sq. ft. each. 9. Small Tiki bar/restaurant: FYG proposes a bar/restaurant by the water with a limited menu and operating hours. 1 O.Pool: FYG proposes to build a small 8' x 12' shallow (4' deep) sport pool for residents, charter clients and guests to use. Purchase Alternative 1. Florida Yacht Group intends to purchase the property for $1,020,000.00 at the end of a ten (10) year lease. 2. Lease payments totaling $202,200.00 shall be considered as down payment. 3. FYG agrees to accept a quitclaim deed pursuant to Florida Statute Section 125.411. 4. FYG will pay for a property survey, dock stamps and insurance. 5. FYG estimates to close on the property October 2022. 6. Prior to purchase FYG shall put 20-30 percent down as required by market rates. Financing approval shall be obtained ninety (90) days prior to the closing. 7. FYG will obtain private financing. 8. There are no other persons of interest in addition to the names listed below in item 9. 9. Florida Yacht Charters & Sales, Inc. D.B.A. Florida Yacht Group is a corporation with FEI number: 59-2372118. The persons with an interest in the firm are the following: - David P. Sell - Per Huffeldt - Bob Everhard - Rudy Amelio - Bob Cauley - Joe Paranee 10. Proposer shall immediately commence repair of docks if permission is granted from the state. This is estimated to take twelve months. Proposer shall commence demolition of structures within twelve months of completion of dock repairs. Within thirty six months proposer expects to construct two to three new two-story buildings as shown in "Other Information" section. 11. Exterior of building will be consistent with adjacent townhomes in neighborhood. 12. To be provided upon notification FYG proposal is accepted. Approximated 6,400 to 9,600 sq. ft. of commercial/retail space plus same amount of residential space on second floor. Improvements estimated between $1,250,000.00 and $1,850,000.00. 13. FYG has no suggested clauses for the purchase and sale agreement of the property. 14. We propose no use of adjacent road or ramp. However, we would be willing to cooperate and work with County to make the ramp accessible and useable, and collect usage fees for County if desired. Lease Alternative Florida Yacht Group proposes to lease the property for ten (10) years at a total rental of $202,200.00 and then purchase the property at the end of the lease for $1,020,000.00. Total lease payments and purchase price shall amount to $1,2221200.00. 1. Total amount of the lease over ten (10) years is $202,200.00 2. Year Monthly Rent Annual Rent 1 $1,500.00 $182000.00 2 $1,500.00 $182000.00 3 $1,500.00 $18,000.00 4 $1,650.00 $19,800.00 5 $100.00 $192800.00 6 $1,650.00 $19,800.00 7 $1,800.00 $21,600.00 8 $1,800.00 $21,600.00 9 $1.1800.00 $215600.00 10 1$2,000.00 1$24,000.00 3. FYG will provide first, second, and security deposit at the execution of the lease. 4. Proposer shall immediately commence repair of docks if permission is granted from the state. This is estimated to take twelve (12) months. Proposer shall commence demolition of structures within twelve (12) months of completion of dock repairs. Within thirty six (36) months proposer expects to construct new two (2) to three (3) two (2) story buildings. 5. First floor of structure will be used for commercial/retail office suites. Second floor anticipated use is affordable housing units for local workers. 6. To be provided upon notification FYG proposal is accepted. Approximated 6,400 to 9,600 sq. ft. of commercial/retail space plus same amount of residential space on second floor. Improvements estimated between $1,250,000.00 and $1,850,000.00. 7. Exterior of building will be consistent with adjacent townhomes in neighborhood. 8. We propose no use of adjacent road or ramp. However, we would be willing to cooperate and work with County to make the ramp accessible and useable, and collect usage fees for County if desired. 9. Lease term is ten (10) years after which FYG shall purchase the property for $150201000.00 1 O.Insurance requirements will be complied with. 11.Florida Yacht Charters & Sales, Inc. D.B.A. Florida Yacht Group is a corporation with FEI number: 59-2372118. The persons with an interest in the firm are the following: - David P. Sell - Per Huffeldt - Bob Everhard - Rudy Amelio - Bob Cauley - Joe Paranee See attached documentation demonstrating entity is legal. 12.Proposed contractors shall be selected from the local labor pool and will be dependent upon availability at the time of approval. 13.Prior to purchase FYG shall put 20-30 percent down as required by market rates. Financing approval shall be obtained ninety (90) days prior to the closing. 14.FYG will obtain private financing. 15.Proposer hereby includes an option to purchase the property at the end of the lease for $1,020,000.00. t Z ml s z oyc oC � z kN("Iva Z i NI L .v ai Z L G, S' s Y Y sl s t-UAI lD bRIJMY, l_(-a1N Broker / Associate o Certified Commercial Investment Member COLDWELL BANKER COMMERCIAL SCHMITT REAL ESTATE, CO. 1442 Kennedy Drive KEY WEST, FL 33040 WEBSITE www.KeyWestCommercial.com 100430 Overseas Hwy. KEY LARGO, FL 33037 WEBSITEwww. FloridaKeysCommercial.com BUS. (305) 292-7441 FAX: (305) 296-6770 TOLL FREE (800) 598-7727 4-0084 Response o equest for MaKeysCOBILE inmerc305) al.com EMAILCurtisna FloridaKevsCommen:ial com Sale/Purchase/Lease of the "Hickory House" Property Monroe County, Florida Richard Buckheim 900 Johnson St. Key West, FL 33040 305-745-4775 Contact Person: Curtis Skomp, CCIM Coldwell Banker Commercial Schmitt Real Estate Co. 305-292-7441- Office Curtis(-,FloridaKeysCommercial com - email Richard Buckheim Bom Detroit, Michigan 4n143 Attended San Diego State University Graduate of Eastern Michigan University On the faculty of both Eastern Michigan University and the University of Michigan. 1966 Moved to San Francisco Cali£ Worked in advertising and marketing 1968 Moved back to Ann Arbor, Michigan and accepted a position as creative director with Stacy Vandergift & Wolson Advertising. 1971 Formed Buckheim & Rowland / Advertising and marketing. Grew the company to offices in Ann Arbor, Detroit, New York City and Melboume, Florida - Clients included: 6 Michigan Banks Hatteras Yachts - High Point, N.C. Metropolitan Detroit Conference and Visitors Bureau Harris Corp. / Melbourne, FL Several Art Galleries and museums in New York City 1980 Sold the business and moved to Florida Keys. Bought Hopkins Island (12 am island - Newfound Harbor Keys ) Built a house, married Susan Bailey and had 2 Children. 1986 Bought the Bagatelle building on Duval Street and opened the Bagatelle restaurant. 1993 Bought Swinging Doors bar Building on Grinell St and opened the Ballyhoo restaurant (now Finig a s Wake.) 1995 Founding director Marine Bank - as Chairman grew bank to 6 branches - merged it into HocneBancsha= - (Centennial Bank) Currently serves on the board of HBI and is C airman of Centennial Banks Florida West Coast Region. Strengths in this market: 30 year resident of the Keys Strong marketing / management and finance background Has been a licenced lobster, stone crab and blue crab fisherman as well as owning a charter fishing business out of Little Palm Island. Currently is an owner of an LLC with multiple fishing licences in Florida waters. The corporation also owns and runs a Oft. Commercial vessel. L d e9E: L L L L Z L Inf I Richard Buckheim Born Detroit, Michigan 4/7/43 Attended San Diego State University Graduate of Eastem Michigan University On the faculty of both Eastern Michigan University and the University of Michigan. 1966 Moved to San Francisco Cali£ Worked in advertising and marketing 1969 Moved back to Ann Arbor, Michigan and accepted a position as creative director with Stacy Vandergiti & Wolson Advertising. 1971 Formed Bacldleim & Rowland / Advertising and ma&eting: Grew the company to offices in Ann Arbor, Detroit; New York City and Melbourne, Florida - Clients included: 6 Michigan Banks Hatteras Yachts - High Point, N.C. Metropolitan Detroit Conference and Visitors Bureau Hams Corp. / Melbourne, FL Several Art Galleries and museum in New York City 1980 Sold the business and moved to Florida Keys, Bought Hopkins Island (12 ar:re island - Newfound Harbor Keys ) Built a house, married Susan Bailey and had 2 Children. 1986 Boughrt the Bagatelle building on Duval Street and opened the Bagatelle restaurant. 1993 Bought Swinging Doors bar Building on Grinell St. and opened the Ballyhoo restaurant (now Finigans Wake.) 1995 Founding director Marine Bank - as Chairman grew bank to 6 branches - merged it into HOmeBancdmm (Centennial Bank) Currently serves on the board of HBI and is Chairman of Centennial Banks Florida West Coast Region' Immanuhmmaida POP Strengths in this market: 30 year resident of the Keys Strong marketing / management and finance background. Has been a licenced lobster, stone crab and blue crab fisherman as well as owning a charter fishing business out of Little palm Island. Currently is an owner of all LLC with multiple fishing licences in Florida waters. The corporation also owns and runs a 43ft. Commercial vessel. L•d en:LL LLZLInf Services Fish House and Marina Related Services The Business Plan is to provide wholesale dockage to Commercial Fishing Vessels, allowing them to unload their fish into refrigerated tractor trailers for transport to end users. Profits will result by wholesaling from vessels to distributors as well as over the counter sales to local businesses (restaurants, markets, special events). If the desired results occur, the Proposer will add a small restaurant operation, offering fresh fish products (sandwiches/meals/etc). This Proposer has 25 years of experience in the restaurant business in Key West. He knows how to deal with construction, appointment, staffing and public expectations regarding food sales. He is financially capable of planning and implementing his plans at this location. Mr. Buckheim also understands the needs to the working waterfront in Key West/Stock Island. He has been a commercial fisherman and knows their issues in doing business with the public. He will be extremely effective in helping them sell their cargos for a profit. Sep 10 12 *1 2:37p PA �Q (v , C � s � ��E ^�-ai Memo regarding -the lease or purchase of the Hickory House Property on Stock Island. From Dick Buckheim MY Johnson St. Key West Over a year i ar ago I submitted 'a bid *to lease the Hickory House property with an option to buy t believe it was a fair offer but it was rejected"by the county, at that time. My intention was and OR is to convert thi's property to a working waterfront for local' independentfin fisherman. In the oommerciatfthing world:an independent fisherman is notalignedwith a fish -house and --has the option to seff-his-fish to the tii4hW bidder. RrT Fmherman target main'l'ysnapperand-grouper byway -of hook- and line. They -do not require ft storage of traps or nets associated with most- local. fishing docim. Basically, we won't be, stinidng- up- the neighborhood I We. - Freamy-have a Call 111 d -group of 45 hangyoung, hhg men on five boats; all in their &s who were bom and,raised in the Keys and -hope- to remain In the Keys. My-26-yearolct sort is one ofthem. Jhey _are all' licensed -and *appmved fbr the type of :fishing they do, which can take them as far as 156 miles from lKey-West art trips that -may lastup-to 4 or6'days. buetonew unloading - laws they can only unload their* catch at . SPeCftNMlk licensect'docks.This 'has hinderect, tinetrability tD sWp amurxtfbrtop dbilarfortheir catch. Currerrtly, OWhave to pay - hundreds of dollars per month to keep #iei boats; at'a marina and, additionally, tftey also have to pay -to offload' theircatcl , at a separate thint party-facifty. My plan fbr the Hickory House property is to provide a home base for this category of local fisherman. It would provide a location where they -can . 7ey-can keep theirvessels- and load and offload their catch at -a single licensed facility A ficility which can also provide bat im and the equipmenUttakes to b& and unload theircatch. Becausetherearena traps to be stored*- and those boats go out -everyday- if is a clean non-invasive operddorr and- would be rurr as a fin fisherman's I's co:..W. The- unloading at UK= large quantities offish could'even be a touristattiactlom In addition to the loading- and unloading we are licensed to have a- wholesale fish house. We wN provide fresh fish daffy to focal stones and restaurants and Ultfiately open a retail* store for truly-frestT local- fistr. We are cur=Mylicensed to accomplisft this goad*. Also, a smali*seaf6od -restaurant-ts part of 'our plan. As was with my- first- offer, a contingency periodat-fte would be required to be able to get the permits to build the docks and -boat, slips. This, process could take as much as a year to complete. My- suggestion is that (ease the property for a year at $2,Doilper month as a due - diligence period. If ait goes weltme could extend the period of the lease or t would- be willing to purchase the property at the appraised- value afarry time the two pates could' agree to CURTIS SKOMP, CC'IM Broker / Associate Certifies{ Commercial Investment Member COLDWELL BANKER COMMERCIAL SCHMITT REAL ESTATE, CO. September 12, 2012 County of Monroe 1100 Simonton St. Key West, FL 33040 Re: Letter of Intent to Lease 5948 Peninsular Ave., K.W., FL Aka: Hickory House property 1. TENANT: Richard A. Buckheim 2. LOCATION: 5948 Peninsular Ave, Key West, FL 33040 Luani Plaza 1442 Kennedy Drive KEY WEST, FL 33040 www.FloridaKeysCommercial.com BUS. (305) 292-7441 FAX: (305) 296-6770 TOLL FREE (800) 598-7727 MOBILE (305) 304-0084 EMAIL Curtis@FloridaKeysCommercial.com 3. PREMISES: Landlord shall deliver to Tenant a detailed description of the leased property and the building. 4. USE OF Tenant's intended use is for a commercial/marina property PREMISES: serving local commercial fishermen as a wholesale & potentially retail fish house, as currently zoned per Monroe county Land Use Regulations. 5. TERM: Base term of two (2) years. Tenant has the right to terminate after year 1 with no further obligation at Tenant's sole discretion. 6. OPTION: Option to Renew Four (4) Two (2) year terms. 7. RENT: $2,000/mos. plus sales tax. 8. ESCALATIONS: Each two (2) year option period rent to be increased by Three (3)%. 9. TOTAL VALUE OF LEASE: Two years plus 4 — Two year options plus 3% increases every 2 years equals Total Lease Value to County of $254,838. 10. SECURITY AND ADVANCED RENT DEPOSIT: 1" mos., 2nd mos. and security in the amount of 2 mos. rent. 11. INSURANCE: Tenant to provide, at Tenants expense, Certificate of Insurance & certified copy of actual policy. 12. LEASE COMMENCEMENT: January 1", 2013 13. DELIVERY: "As Is" 14. RENT COMMENCEMENT: January I'`, 2013 15. TENANT IMPROVEMENTS: Tenant shall make all improvements to property at Tenants sole cost & expense. Tenant shall retain the right at Tenants sole & absolute discretion to demolish the building and replace with other buildings per Monroe County Land Use Regulations. 16. PERMITS: Tenant shall obtain, at Tenants expense, all required Permits and approvals for the construction of the Premises and Tenants use thereof, including any required variances, certificates of occupancy, and other use and occupancy permits. 17. EARLY TERMINATION: See #5. 18. SIGNAGE: Tenant shall have the right to place a sign as per Monroe County regulations, at Tenants sole cost & expense. 19. ASSIGNMENT AND SUBLETTING: Landlord shall not unreasonably withhold or delay its consent to Tenants request for an assignment or sublease providing replacement tenant has equal or greater net worth and is a tenant of similar quality. 20. HAZARDOUS MATERIALS: Landlord shall indemnify, protect, defend, and hold harmless Tenant against all cost and liability resulting from the presence of Hazardous Materials in and around the Premises. 21. UTILITIES: Tenant will be responsible for all utilities. 22. BROKERAGE COMMISSION: Coldwell Banker Commercial Schmitt Real Estate Co. is representing the Tenant. Tenant shall compensate Broker Leasing fee per separate agreement. Landlord shall be responsible for a Six (6) % Commission should Tenant exercise option to purchase per proposed Option Purchase Agreement. 23. EXCLUSIVE AGREEMENT: Landlord further agrees not to accept any other offers, Letters of Intent or Letters of Interests on the subject property during the period that this Letter of Intent is binding on the parties. The Landlord agrees to cooperate with the Tenant in all phases of Tenant's due diligence. 24. PURCHASE OPTION: At any time during the first three years of the lease, Lessee shall have option to purchase at agreed upon price. Price shall be determined by appraised value & shall appraise land value only, not improvements made by Tenant. Parties jointly split cost of I" appraisal. If that price is not acceptable to both parties, a second appraisal shall be ordered, again splitting the cost of 2nd appraisal. Those two appraisals will be averaged for the agreed upon sales price. If Lessee does not purchase by end of year 3, the lease continues in full force and effect. 25. LEASE: This LOI is considered non -binding and no enforceable Contract between the parties exists until the lease/ option agreement has been fully executed by both parties. This LOI is valid for a period of ninety (90) days. Tenant to deliver the draft lease to Landlord for Landlord's review and approval within 10 days from acceptance of this LOI. Parties agree to negotiate in good faith and have an executed contract, or not, within 60 days of Landlord's receipt of said contract. 26. INDEMNIFICATION CLAUSE: The Proposer to whom a contract is awarded shall defend, indemnify and hold harmless the County. The Proposer covenants and agrees to indemnify, hold harmless and defend Monroe County, its commissioners, officers, employees, agents and servants from any and all claims bodily injury, including death, personal injury, and damage, including damage to property owned by Monroe County, and any other losses, damages, and expenses of Agreed; any land, including attorneys fees, court costs and expemc% which arise out of, in conzwtion With, or by the neglrgenoe, errors, or other wrongful act or omission of the Proposer, its offerers, employees, servants or agents, Invitees, heirs or assigns. In the event that the agreement is delayed or suspended as a result of the Proposces failure to purchase or maintain the required insurance, the Proposer shall indemnify the County from any and all increased expenses resulting from such delay. r: w�`�ri•r fill 1 1 *,1 1 1 1 1 1 eZZ: L L Z L L L deS