During the September 24 BCC Meeting, three agenda items relating to Pickleball in Collier County were discussed. Agenda item 11.E called for the Third Extension and Amendment to the Sponsorship Agreement between Collier County and Spirit Promotions for the 2026-2032 U.S. Open Pickleball Championships for a total of $1,050,000. The agreement was initially signed in February 2019 for the 2019-2021 U.S. Open Pickleball Championships, followed by the First Amendment in October 2019 for an extension until 2024, and a Second Amendment in January 2024 for a one-year extension through the 2025 U.S. Open Pickleball Championships.
With an estimate of $2,000,000 for the project by Spirit Promotions, they will commit an amount of up to $1,000,000 toward the cost of capital improvements and the remaining not to exceed $1,000,000 will come from Collier County. Spirit Promotions also proposed a 7-year plan to continue the county’s promotion subsidies totaling $1,050,000 in declining amounts, as follows:
- $300,000 in 2026
- $250,000 in 2027
- $200,000 in 2028
- $150,000 in 2029
- $100,000 in 2030
- $50,000 in 2031
In addition, a case study not exceeding $40,000 will be conducted to analyze the impact of the infrastructure project on tourist-related businesses in the County. It should be noted that the county has already funded over $3M million for Pickleball facilities since the first agreement, and this new amendment requires another million for facilities without solicitation of services. Without re-soliciting it is difficult to determine these amounts are reasonable.
Item 11.F pertains to a Lease Agreement between Collier County and Spirit Promotions, LLC for the East Naples Community Park and Sugden Park for hosting the U.S. Open Pickleball Championships. Spirit Promotions proposes to lease a minimum of six and up to twelve covered courts annually to operate the U.S. Open Pickleball Academy, which aims to attract visitors and residents. The proposed rent is $21,000 annually, with a 2.5% annual rent escalation. Spirit Promotions will share the gross revenue of the Academy with Collier County with 95% of the gross revenue to Spirit Promotions and 5% of the revenue provided to Collier County. The 95%-5% split appears minimal, when the county has provided millions of dollars in construction improvements and park use. Continued negotiation vs solicitation may not provide the maximum return on investment to the benefit of taxpayers.
It is unclear how the 2.5% annual rent escalation was determined. Typically, rent escalation would be tied to a cost-of-living index rather than an arbitrary 2.5% amount.
The last item, 11.G requests for a Fourth Extension and Amendment to Agreement No. 17-7152 “Parks and Recreation Pickleball Concessionaire,” with Pickleball Enterprises LLC, d/b/a Naples Pickleball Center to provide a five-year extension through 2032.
All Commissioners voted in favor of approving Items 11.E, 11.F, and 11.G.