Agenda 06/28/2016 Item #16F1 6/28/2016 16.F.1 .
EXECUTIVE SUMMARY
Recommendation to accept the seventh annual report on the "Impact Fee Program for Existing
Commercial Redevelopment";to direct the County Attorney to advertise and bring back to the Board an
Ordinance Amendment making the Program permanent by removing the Program's sunset language;
and to approve a Resolution extending the Program until such time that the Ordinance Amendment is
approved by the Board.
OBJECTIVE: That the Board of County Commissioners (Board) accepts the seventh annual report on the
"Impact Fee Program for Existing Commercial Redevelopment" (Program) and to make this a permanent
Program.
CONSIDERATIONS: On March 24, 2009,the Board adopted Ordinance No. 2009-14, which established the
"Impact Fee Program for Existing Commercial Redevelopment." The development of this Program arose from
two basic problems: 1) a large number of older buildings throughout Collier County were unable to attract
tenants due to the economic downturn combined with the required payment of additional impact fees related to
changes of use; and 2) tenants were unable to find space in existing buildings due to the required payment of
additional impact fees related to changes of use. The "Impact Fee Program for Existing Commercial
Redevelopment"provided a solution to both of these issues. Similar to other economic incentive programs,this
Program provides economic relief to a targeted problem.
Since the initial program adoption, the Board has implemented changes to the Program based on the input of
various members of the building industry, including the (former) Economic Development Council of Collier
County, the (former) Collier County Productivity Committee, the Development Services Advisory Committee
(DSAC) and leadership of the Collier Building Industry Association(May 2010). The Board also expanded the
Program to include impact fee assessments for Water and Wastewater, meeting specified criteria (November
2013).
The adopted Program provisions are as follows:
Collier County Code of Laws and Ordinances-Chapter 74
74-201. Imposition of Fees
(5) Impact Fee Program for Existing Commercial Redevelopment. Proposed developments which meet the
criteria set forth below shall not be assessed additional impact fees related to changes of use within the
existing buildings, except for water and wastewater impact fee assessments which are exempt from this
program. This program will officially sunset two years from the date of adoption unless continued
by a resolution of the Board of County Commissioners prior to this date.
a. Development is proposed within a lawfully existing building which has had a Certificate of
Occupancy issued for at least 3 years. Impact fees for the existing building must have been paid
the then applicable impact fees at time of construction;and
b. Proposed development is solely within the existing building and does not include the addition of
any new square footage.
c. Demolition and reconstruction projects are not eligible for this program.
d. For the purposes of water and wastewater impact fees,projects that require an existing meter to
be upsized are not eligible for this program.
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Beginning in 2010, and annually thereafter, the Board has reviewed the Annual Report on the "Impact Fee
Program for Existing Commercial Redevelopment" which, in accordance with Board direction, provides
detailed information on the participation in the Program and the fiscal impact on each of the affected impact fee
trust funds. The Board reviewed the most recent annual report on June 23, 2015, and approved a Resolution
extending the Program to July 1,2016.
The 7 new applicants for July 1, 2015 through July 1, 2016 bring the total number of participants assisted over
the history of the Program to 142,and interest in the Program continues.
The following chart provides a list of the types, and amounts by type,of changes of use that are participating in
this Program in Year 7. The land uses indicated correspond to the closest applicable land use for establishing
the impact fee rates to be applied. These categories do not dictate the land use classifications for zoning
purposes.
Change of Use Number of Applicants in Program
Year 7
Warehouse to Retail 1
Warehouse to Office 1
Retail to Medical Office 1
Retail to General Office 1
General Industrial to Office 1
Restaurant—Seat Increase 1 t.'1
Retail to Tire Store 1
Total 7
Some of the decline in number of applicants this year can be attributed to a change in methodology in 2015 for
Water and Sewer Impact Fees when assessment of the fees changed from being based on ERC values to meter
size. The new methodology requires additional fees to be assessed only if the meter size is increased.
Additionally, the decline in applicants may also be related to commercial development lagging residential
development. As strong residential development activity continues,the number of participants in the Program is
likely to increase as the trend for commercial development intensifies. Staff does not believe the decline
represents a lack of need for the Program.
Staff recommends making the Program permanent by removing the sunset language from Section 74-401 of
Chapter 74 of the Code of Laws and Ordinances. From all accounts,the Program has been beneficial and is an
effective tool for incentivizing commercial redevelopment. This will also provide more certainty that current
policy will not change while a project is proceeding through the permitting process. Staff will continue to
monitor the Program and notify the Board of any program changes that they may want to consider.
Accompanying this item is a Resolution, for Board consideration,to extend the Program until such time that an
Ordinance Amendment removing the sunset provision is approved by the Board. If the Board does not desire to
extend the Program it will sunset on July 1,2016.
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FISCAL IMPACT: The following is a breakdown, by impact fee type, of the total impact fees that were not
assessed for the qualifying changes of use.
Impact
Fee Type Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7
Correctional Facilities
(Jail) $26,175 $29,395 $32,043 $57,670 $8,396 $6,949 $2,321
Emergency Medical
Services $11,399 $13,788 $8,589 $15,413 $2,203 $1,509 $587
Government Buildings
$59,787 $74,215 $49,852 $88,818 $12,996 $8,853 $3,451
Law Enforcement $21,066 $26,744 $3,696 $7,791 $7,113 $4,868 $1,894
Road $1,147,852 $958,874 $587,663 $1,079,423 $165,435 $359,268 $84,270
Water $0.00 $0.00 $0.00 $0.00 $113,457 $37,498 $78
Sewer $0.00 $0.00 $0.00 $0.00 $113,988 $37,674 $75
Cumulative Total $1,266,279 $1,103,016 $681,843 $1,249,115 $423,588 $456,619 $92,676
The benefits of the Program include encouraging new business within Collier County, retention and expansion
of existing businesses in Collier County, and absorption of a portion of the supply of vacant commercial lease
space in older buildings. If this program was not available,the alternate option for such customers would be to
continue seeking out tenant spaces in which the impact fees had been paid for a use similar to the type they were
proposing or abandon plans to relocate/expand. In either case, the County would not collect any additional
impact fees.
GROWTH MANAGEMENT IMPACT: This Program is consistent with Policy 3.12 of the Economic
Element of the GMP which states: "Collier County, in coordination with other appropriate entities, will support
the establishment and retention of small businesses throughout the County."
Additionally,this Program does not in any way negate or waive existing zoning laws. Any relocation of a new
or existing business into an existing facility generates the need for a Zoning Certificate from the Zoning
Department and the subsequent issuing of a Business Tax Receipt from the Collier County Tax Collector. Staff,
through issuing the Zoning Certificate,verifies that the new business location is properly zoned to allow for the
business to legally operate at a new location.Additionally,prior to issuing a Zoning Certificate, staff reviews the
proposed business location to ensure that the site provides the required number of parking spaces and meets the
minimum landscape code requirements.
If the new business location is not located within a zoning district that permits the proposed use, the Zoning
Certificate is denied and the business owner is directed to consider other areas within the County that are
appropriately zoned for the proposed use. In the alternative, the applicant is advised of the option to seek to
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rezone the property to a zoning district that would allow the proposed commercial use. All rezoning
applications first have to be found consistent with the applicable elements of the Collier County Growth
Management Plan(GMP)as well as found to be compatible with the adjacent land uses. If deemed inconsistent n,
with the Comprehensive Plan,the applicant would have to seek an amendment to the GMP.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form
and legality,and requires majority support for approval. -JAK
RECOMMENDATION: To accept the seventh annual report on the "Impact Fee Program for Existing
Commercial Redevelopment"; direct the County Attorney to advertise and bring back to the Board an Ordinance
Amendment making the Program permanent by removing the Program's sunset language; and to approve a
Resolution extending the Program until such time that the Ordinance Amendment is approved by the Board.
Prepared by: Paula Fleishman, Senior Operations Analyst,
Capital Project Planning,Impact Fees and Program Management Division,
Growth Management Department
Attachment:
1) Proposed Resolution
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6/28/2016 16.F.1.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.F.16.F.1.
Item Summary: Recommendation to accept the seventh annual report on the "Impact
Fee Program for Existing Commercial Redevelopment";to direct the County Attorney to
advertise and bring back to the Board an Ordinance Amendment making the Program
permanent by removing the Program's sunset language; and to approve a Resolution extending
the Program until such time that the Ordinance Amendment is approved by the Board.
Meeting Date: 6/28/2016
Prepared By
Approved By
Name: PattersonAmy
Title:Division Director-IF,CPP&PM, Capital Project Planning,Impact Fees and Program
Management
Date: 5/31/2016 10:19:25 AM
Name: MarcellaJeanne
Title: Executive Secretary,Transportation Administration
Date: 6/7/2016 10:16:19 AM
Name: KlatzkowJeff
Title: County Attorney,
Date: 6/8/2016 9:02:57 AM
Name: IsacksonMark
Title:Division Director-Corp Fin&Mgmt Svc, Office of Management&Budget
Date: 6/15/2016 10:55:35 AM
Name: CasalanguidaNick
Title:Deputy County Manager,County Managers Office
Date: 6/16/2016 11:20:12 AM
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RESOLUTION NO.2016-
A RESOLUTION OF IRE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA PROVIDING FOR THE EXTENSION OF THE
SUNSET DATE OF THE "IMPACT FEE PROGRAM FOR EXISTING
COMMERCIAL REDEVELOPMENT," AS PROVIDED IN CHAPTER 74,
SECTION 74-201(c)(5) OF THE COLLIER COUNTY CODE OF LAWS AND
ORDINANCES, FROM JULY 1, 2016, UNTIL SUCH TIME THAT AN
ORDINANCE AMENDMENT IS APPROVED BY THE BOARD REMOVING
THE SUNSET PROVISIONS OF HIE PROGRAM.
WHEREAS, on March 24, 2009, the Board adopted Ordinance No. 2009-14,
which established the "Impact Fee Program for Existing Commercial Redevelopment;"
and
WHEREAS, on March 24, 2011, the "Impact Fee Program for Existing
Commercial Redevelopment" was scheduled to sunset in accordance with Chapter 74,
Section 74-201(c)(5) of the Collier County Code of Laws and Ordinances, unless
otherwise extended by a Resolution of the Board of County Commissioners;and
WHEREAS, on March 22, 2011,the Board of County Commissioners extended
the sunset date of the"Impact Fee Program for Existing Commercial Redevelopment"to
March 24,2012 by way of Resolution 2011-54;and
WHEREAS,on March 13,2012,the Board of County Commissioners extended
the sunset date of the "Impact Fee Program for Existing Commercial Redevelopment"to
March 24,2013,by way of Resolution 2012-45;and
WHEREAS, this Program was identified as a potential topic for discussion
and/or workshop in May of 2013;and
WHEREAS,on March 12,2013,the Board of County Commissioners approved
a temporary extension of the Program, to July 1, 2013, due to the Program having been
identified as a potential topic for discussion and/or workshop, and that the temporary
extension of the Program allowed businesses to utilize the Program until the Board of
County Commissioners provided further direction;and
WHEREAS, on May 28, 2013, and June 4, 2013, the Board of County
Commissioners heard presentations and discussed impact fees and economic
development. During the workshop, many of the concerns raised by speakers related to
impact fees for commercial development; and
WHEREAS, on June 25, 2013, the Board of County Commissioners extended
the sunset date of the"Impact Fee Program for Existing Commercial Redevelopment"to
July 1,2014,by way of Resolution 2013-149;and
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WHEREAS, on June 24, 2014, the Board of County Commissioners extended
the sunset date of the"Impact Fee Program for Existing Commercial Redevelopment"to
July 1,2015,by way of Resolution 2014-132;and
WHEREAS, on June 23, 2015, the Board of County Commissioners extended
the sunset date of the "Impact Fee Program for Existing Commercial Redevelopment"to
July 1,2016,by way of Resolution 2015-128;and
WHEREAS, the "Impact Fee Program for Existing Commercial
Redevelopment"has assisted 142 businesses over a seven-year period;and
WHEREAS, staff recommends that in order to allow businesses to continue to
utilize the Program,the sunset date of the"Impact Fee Program for Existing Commercial
Redevelopment" be extended until such time that an Ordinance Amendment removing
the sunset provisions is approved the Board; and
WHEREAS, the Board of County Commissioners accepts the recommendations
from staff.
NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that the Board of County
Commissioners hereby declares that the "Impact Fee Program for Existing Commercial
Redevelopment"be extended until such time that an Ordinance Amendment is approved
removing the sunset provisions of the Program.
This Resolution is adopted after motion; second and majority vote favoring
adoption this day of June,2016.
ATTEST BOARD OF COUNTY COMMISSIONERS
Dwight E.Brock,Clerk OF COLLIER COUNTY,FLORIDA
By: By:
,Deputy Clerk DONNA FIALA,Chairman
Approve41a; 6 .:' a legality:
,iegeritt
Jeffrey A. la ow,County Attorney
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