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BCC Minutes 09/17/2002 W (Impact Fees)September 17, 2002 TRANSCRIPT OF THE MEETING OF THE IMPACT FEE WORKSHOP Naples, Florida, September 17, 2002 LET IT BE REMEMBERED, that the Board of County Commissioners, in and for the County of Collier, having conducted business herein, met on this date at 9:07 AM in WORKSHOP SESSION in Building "F" of the Government Complex, East Naples, Florida, with the following members present: CHAIRMAN: Commissioner James Colletta Commissioner Tom Henning Commissioner Donna Fiala Commissioner James Carter Commissioner Fred Coyle (via telephone) ALSO PRESENT: Jim Mudd, County Manager Norman Feder, Dept. of Transportation Joe Schmitt, Community Development Steve Tindale, Tindale & Oliver Leo Ochs, Deputy County Manager Abe Skinner Cormac Giblin Helene Caseltine Phil Tindall NOTICE: COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS WORKSHOP AGENDA Tuesday, September 17, 2002 9:00 A.M. ALL PERSONS WISHING TO SPEAK ON ANY AGENDA ITEM MUST REGISTER PRIOR TO SPEAKING. ANY PERSON WHO DECIDES TO APPEAL A DECISION OF THIS BOARD WILL NEED A RECORD OF THE PROCEDINGS PERTAINING THERETO, AND THEREFORE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. ALL REGISTERED PUBLIC SPEAKERS WILL BE LIMITED TO FIVE (5) MINUTES UNLESS PERMISSION FOR ADDITIONAL TIME IS GRANTED BY THE CHAIRMAN. 9:00 A.M. - 9:45 A.M. 9:45 A.M.- 10:00 A.M. 10:00 A.M. - 10:15 A.M. 10:15 A.M. - 11:30 A.M. 1. Overview of Road Impact Fee calculations. (Norman Feder) 2. Overview of August 20, 2002 Public Listening Session. (Joe Schmitt) Break 3. Review of Proposals from the Public Listening Session. Denny Baker - Overview. Cormac Giblin - Workforce Housing Helene Caseltine - Economic Development Phil Tindall - Alternative Revenue Sources 11:30 A.M. - 12:00 P.M. 4. Public Comments September 17, 2002 CALL TO ORDER Meeting was called to order by Commissioner Coletta. Pledge of Allegiance was recited. Mr. Jim Mudd gave an overview of the Workshop. Two items will be discussed- 1) The overview of the Road Impact Fee Calculations, conducted by Mr. Norman Feder. Public comment will be taken on the Impact Fees. 2) Then a discussion on the feedback back to the Commissioners on the Listening Session That was held on August 20, 2002 with the Community, directed by Mr. Joe Schmitt. Public comments will be taken. Commissioner Coletta informed everyone that Commissioner Coyle is in attendance via telephone hook-up and will be interjecting his comments from time to time. Mr. Mudd asked that Mr. Skinner give his comments before proceeding. SPEAKER: Mr. Abe Skinner (Property Appraiser) - he wanted the Commissioners to know that he is not for or against Impact Fees, whether they are right or wrong, good or bad. He stated, as everyone knows, the Property Appraiser appraises all the property in Collier County every year with Jan. 1st being the magic date. A cost study is done every year with a record every year of what those costs are in replacing new homes. That is the part of the reappraisal process. If they find that building costs, from builders, and also from the model homes, have increased from the past January to the next January, then that is part of what they reflect in the reappraisal of the entire County. They are taking all homes in Collier County as a replacement "new". What it costs from one January to the next January. Then they take into consideration the age of the home and appreciate it. The market has to be taken into consideration as well. The public realizes it is going to cost them more when they move into a new home. For tax purposes they are figuring all homes "new" - not only the ones coming on line, but all of the properties to be appraised equitable and fair. Commissioner Carter asked if he was a Homestead property owner and that property is sold, immediately the next owner is going to go to the new value, which could double that tax rate. There is an enormous amount of monies that could flow from the transactions because of the difference. He is not sure that is in the formula base, but need to be aware. Mr. Skinner answered that when ownership changes on a piece of property they start with a new base. Commissioner Coletta mentioned there is a 3% cap on "Save our Homes for Homestead" a year. Mr. Skinner said it is 3% of the CPI whichever is less. This year the CPI is 1.6% or less. He stated - quote "If the market indicates that a bunch of properties in a given neighborhood should go up 10% the ones with Homestead they would all go up 10%, but the ones with the Homestead, for tax purposes, wouldn't be greater than 1.6O/o." unquote. They encourage people to take out a Homestead. Mr. Coletta stated they are having their final budget hearings tomorrow and would like to invite him to attend. The meeting was turned over to Mr. Norman Feder. Mr. Feder gave an overview for the Commissioners. They stated they started out with a draft that was distributed and before they could review it had an assumption of about 1.7 million a lane mile for right-a-way based on taking recent closings and projects & trying to pull those out. He found there were some issues they wanted to change in which resulted in a presentation in July about 2.5 times on September 17, 2002 the impact fee as a proposal to the Commissioners. It was based on taking the old right-a- way figure and utilizing an indexing that will be discussed today. This will arrive at a bit less than 1.2 million lane mile for right-a-way. The major change today is the result of doubling the impact fee and not into the new fiscal year and providing a gas tax credit for the 257 Million that they are bonding for transportation that will be paid back by increased assessments and ad valorem. He stated that is a quick overview of what they are proposing today which is a doubling of the impact fees. He then introduced Mr. Steve Tindale of Tindale-Oliver & Associates, Inc. Mr. Steve Tindale: He stated he will briefly go through some graphics in his presentation. He mentioned Collier County has the highest growth rate in the State of Florida. The fee was adopted in 1985, updated 7 years later and again 7 years later and now is the first time it has been updated in three years. The major issues to deal with are a revenue credit and the index. He covered the impact fee formula takes demand from development and providing a facility minus tax credits. He went through some of the components in his presentation of the graphics shown. (Lodging, Recreational and Institutions). Going back to the basics he highlighted the fact that there is new data out based on impact fees on home sizes. He covered the age and income restrictions. The cost component reviews were done in detail and twice as much effort put forth in the right-of-way than the construction. He showed 10 year trends in his graphics. Under the current cost evaluation he covered the design related costs. He showed one of the graphics with the changes in Just Value in Collier County. Land values have changed significantly in the County. He showed other areas in Florida and showed Collier County has the highest value assessment per population than anybody in the state of Florida. Cost for the right-of-way has changed to $1,250,000. According to the report the recommendations for the total cost per Additional Lane Mile is $3.1 million. He then summarized appendix "C" with discussion on "Revenue Credits". They have to be revenues that add capacity to taxes that are generated over time and brought back to the present value. Local 8,: state revenues that add capacity. He wanted to mention that the gas tax is not 1%, it is one cent per gallon - it is fixed. He covered the growth revenues and the value of a Penny in Collier County. He came up with a number of 24.3 cents as a revenue credit. He stated one is the money the County spends on their gas taxes. The bond and state programs was discussed with a total of 24.3 cents. The next point he discussed is the actual Capacity, capital improvement plan, the long range plan, distance times the capacity added and came up with the average capacity that is added every time a lane is built. He felt this shouldn't be changed. The same types of projects that are being built now are the same type as 3 years ago. He discussed the fuel consumption and fuel mix that was taken into consideration. He also covered the Interstate Mileage Credit and information on the Indexing. He summarized his report and the graphics stating: No changes in demand components-they are as solid as any County he has worked in. The Revenue Credits, Gas Tax Credits and a Credit to the Bond Program were all updated. Same factors were used to create the value of revenue projections from the gas tax. Updated the Fuel efficiency. Proposing no changes to the Interstate travel credit and suggest it is left where it was. Recommending an Index - Construction of an Index of numbers that were covered earlier. Proposing a Land Value Index based on the property appraisal value and capping that number. A small single family home would be at $3,800, a mid-sized home $5,100 and the largest home about $6,000. That's the impact of all the things they are recommending. September 17, 2002 He summarized the figures according to the tables he displayed. Commissioner Henning questioned the High Rise vs. Low Rise. Norm Feder said the bottom line is about the vehicle miles traveled, the trips generated, demand created, nature service trips, impact fee by unit and number of trips generated. Discussion followed between Commissioner Henning and Commissioner Carter who has the High rises mixed in with the Low rises in his District. Mr. Feder discussed the repayment of the bond, and payback credit for the gas tax to a person that moves into a dwelling in the future. The current resident would not be paying the impact fee. Commissioner Henning stated what he is asking is about new development getting a break for the bonding efforts that were done this year. Mr. Feder answered that they are getting a credit for what they will spend in property tax over the next 25 years in payment back of that bonding effort. They will not be charged twice. Commissioner Coyle expressed his concern that he didn't receive his packet in a timely manner by staff. He didn't think it gave the Board sufficient time to review the data. He had a question to fight-of-way costs - he wanted to know why they were buying 185 feet rather than 150 feet. Mr. Feder stated it was an average of 180 feet as every corridor is looked at. It is designed to make it fit. Several studies had been done and the cross sections done were 150 feet resulting in the six lanes with turn lanes such as on Airport Road today. Discussion followed on the different fight-of-way costs, past and recent projects that were done and cost section analysis. The different size lanes, drainage, sidewalks and bike paths provided was debated between Commissioner Coyle and Mr. Feder. Commissioner Coyle asked about the Bond Program Credit and wondered if it was in the packet. It was pointed out that Page 5 of the Summary would explain the results and the total pennies which is $.243. Mr. Tindale did the calculations for Commissioner Coyle. Commissioner Coyle also asked about the Utility relocation Expenses - he wondered if they are recommending they charge the full fee until they deduct the Utility Relocation Cost or charge the full fee without subtracting the Utility Relocation Cost. Mr. Feder answered "the latter". They are proposing to adopt the full fee, then apply the fee without the utilities and have it accounted for through Joe Schmitt's offices until Utilities removes the relocation fees from their fees. They are then to pay back Transportation for that accounting of reduction in the Transportation fee during that period of time- then instituting the full fee with Utility Relocation in it. An owner of single family home would be paying a reduced transportation fee but paying the current fee for Utilities which includes relocation. In the future it will be paid as part of the Transportation fee because it will be removed from the Utilities. Discussion followed concerning the relocation issues being recovered now or later in transportation but not in both. Discussion continued on appendix A - Table 1 - Design Costs. Commissioner Coyle thought Mr.Feder stated earlier that the cost for sidewalks had been removed from the cost of design and construction. Mr. Feder remarked they were told to keep sidewalks in for part of the cost section. He was also told, as part of Board policy until changed, that they should buy the fight-of-way for future sidewalks even though they may not be constructed. Non-capacity cost has been figured in the calculation. Commissioner Coyle did not recall the Board issuing any instructions that they include Non-Capacity costs in the Capacity calculation. Commissioner Carter stated that historically they have done that, maybe protecting more than they may have needed because of the cost of right-of-way acquisition. He suggested that there is State Legislation that allows counties to pass ordinances where they can freeze right- of-way cost and have not been taken as a Board action. Commissioner Coyle did not want any misunderstanding of Table 1 and Mr. Feder stated that it includes the Design Costs for the full cost section which is needed, so paying the design costs for the full cost section and 4 September 17, 2002 then purchasing the right-of-way consistent with the above information. Commissioner Coyle stated it made no sense to him. Commission Coyle discussed the Revenue Projections with Mr. Tindale on page 10 of the report. He hoped that what they had discussed was an annual indexing of the fee components so they don't have to go through this process every few years. He also hoped that this proposal they are considering today will include guidance to apply the annual indexing figure so the impact fees can be adjusted to their proper values. Commissioner Fiala wanted to include small homes with restricted income and add another category. SPEAKERS: Beverly Kronquest - she stated she couldn't understand that the Commissioners could vote and the regular taxpayers absorb part of the builders cost. Ethically she felt this was very wrong. She lives off Goodlette and noticed those drilling very deep wells in certain areas and found years back the water was not adequate, so drilling more wells. The impact fees are being talked about are for roads and not water and sewer. It was noted that the water and sewer impact fees will be discussed later on in the year. She knows it is passed along to the consumer, as everything is, but she is concerned that they are trying to slip out from the initial cost and pass it along to the consumer or taxpayer. She feels the developer or contractors have a choice, but the taxpayers don't have a choice. Tom Conrecode - He feels there are some areas of disagreement in the right-of way costs and agrees they are difficult to pin down. He feels the cost of right of way is an inflated cost number. It is overstated by between $170- 180,000 per lane mile. He quoted some examples of overcharging of an average home and combining with the Utility relocation number in the Utility and road impact fees results in a 484 per home overcharge and asked the staff to review their numbers again and tighten them up a bit. He felt some of the areas that could be taken into consideration is the Livingston and Radio Road projects. Mr. Feder stated he wanted to make it clear that the Utility portion will not be double charged. Mr. Mudd will review figures to make sure they are correct and get information to the Board members on any points raised. Todd Gates - He feels that the impact fees need to be fair and equitable for every citizen in the County and in every district. Before 1986 impact fees did not exist. People building new homes now that can afford the houses the least are paying the highest impact fees in the state. Those that can afford them the most are paying zero. He stated there is something noticeably backwards with this situation. For every $1,000 that is raised in impact fees, 311 families are being eliminated from purchasing a home. That decreases the amount of building permits. His concern is an affordability concept. He feels they have to address permanent funding. He is concerned with the economic liability of Collier County and the hardships that are going to be created on affordable housing. The #1 concern by many of the Leaders in the County is affordable housing. Ann Olesky - She stated that if you take the impact fees right now people are moving to Lee and Hendry County. She feels they are taking their money to Lee and Hendry County, living in those counties, but working in Collier County. The other idea she wants them to think about is the transfer fees. She states we need the builders. Smart Growth and Conservation are very important. She has experienced the environment in Pelican Bay which has Smart Growth and feels we can achieve this balance. September 17, 2002 Dwight Nadeau - Planning Mgr/RWA-He touched on the Land Use category and the way Impact Fees are calculated. The impact fees are calculated and based on trip generated fees. In 1,000 square feet of retail you are paying impact fees of 1,000 square feet of retail. The ITE Manuel does not provide for discussion of functional space. He used an example of golf courses for public and private and semi-private and that they should be treated differently. Alternative methodology should be calculated for the fees. Rich Yovanovich - He stated there are errors in the numbers study. He compared numbers in the report in comparison to his numbers and the differences. He feels the acquisition right- of-way numbers should be looked at a lot closer. He talked about the Utility relocations and felt they could leave the utilities and save the property owner money. CIE- roughly -10% of construction - $140,000 per lane mile - staff needs to hire more people to look into this instead of hiring consultants. If staff can sharpen their pencils and bring costs down it would make housing more affordable. More and more clients will be going to Lee County for services. Bob Krasowski - 23 year resident of Collier County. He's speaking as a property owner. He stated that new residents should pay for new roads but also their gas taxes should go to maintain the existing roads. If workers can't afford to live here then the people who use their services should pay those workers more, so they can live here. He talked about subsidies and people competing for jobs. He touched on the Rural Urban areas and consideration for those persons possibly paying less. Reed Jarvi - resident of Collier County and Professional Engineer in Collier & Lee Counties. He covered 3 main points. 1) Right-of-way issues on the sidewalks and bike paths. He felt they should be striped out of the construction & right-of-way costs. He doesn't feel they shouldn't plan for them, but for a capacity level they need to be taken out for discussion on impact fees. 2) Trip Generation- the trip generations have remained the same but 4 items seemed strange to him and would like an explanation. They are Specialty Retail, Land Use, Pharmacy Drug Stores, Quick Lube and Business Park. They are not using ITE rates. 3) Right-of-Way Costs - he questioned page B7 about attorneys costs acquiring right- of ways. Also Page B5- the percentages litigated and particular costs. They need to be looked at and recalculated. Janet Vasey - She wanted to cover the big picture. Page 10 - Impact Fee Revenue Projections. Shows total estimated revenues are very close to the estimated needs. All funding sources relate to roads. Bonding makes up for deficiencies for the past. She wants the Board to beware of chasing new revenue sources. Do we really need it? Real Estate Transfer taxes - she feels selling existing property doesn't create any additional needs for roads. Don't need another big revenue source. If permits drop off it means the demand for new roads is dropping off. The need then drops off and you won't need new roads. Rebalance the program and'build the roads you need to support the traffic you currently have. Don't lose focus of "Growth pays for Growth". Barb Cacchione - She would like the Board to look at a tiered system for the Immokalee Community. Reasons for doing it are poverty levels; County has already designed the area as a community redevelopment agency promoting growth, economic development and affordable housing. It should be a different level of impact fees for that community. In regard to additional revenue services, other revenue sources are needed. If the Transfer Tax is looked into, it could be split between affordable housing and roads and that way meeting both issues at the same time. 6 September 17, 2002 Break 11:05 AM Meeting reconvened at 11:26 AM Mr. Mudd summarized the morning's discussions. 1) First was a suggestion by Commissioner Fiala to add a category for Small Home Restricted Income to the categories presented for Impact Fees. He wanted to know if he had a consensus of the Board. Commissioner Coletta stated they will cover this later in the workshop and wait until they hear the information. 2) Proposal to the Board first week of October to include indexing the fees for the next couple of years until a restudy is done for the 3rd year. 3) Based on what he has heard so far from speakers and Board - they will go over all the right-of- way calculations and fees to make sure they haven't missed or overlooked anything in the process. Mr. Feder stated they will also look into not only right-of-way costs but also what is included, and also the subject of Utilities and how costs can be contained and also Land Development Code issues. Commissioner Carter wanted to explore an Ordinance to freeze the right-of-way property rights. Commissioner Henning agreed with Commissioner Coletta in his feeling of being in violation of property rights. Commissioner Coyle expressed his opinion of having more confidence now than previously. He doesn't feel they should waste taxpayer money for buying right-of-way that they don't think they will ever need, and ask the staff to provide a typical cross-section for a 6-lane road with median and sidewalk. He heard something about changes in Land Development Code and feels that is an option to pursue and deal with the issues. Joe Schmitt - Administrator Community Development and Environmental Services - He stated he is going to go over some numbers of a forum was that held earlier. They are trying to evaluate the commitment of the social and economic impacts of implementing thc impact fees. Also set a tone for recommending solutions. There were over 60 participants from the Public with suggestions and ideas. These will be presented. The forum wasn't a Public Hearing or a debate on Impact fees. It was a forum to develop alternatives that can be discussed and he pointed out that transportation improvements were needed. They broke down into small groups that discussed work force housing, economic development, and impact on the building industry and impact fee categories. Growth for Collier County was discussed. There may have been some misinformation so will review it. He spoke of the permits that have been issued- stating they are still on a steady track of permits issued for the permitting process. The "approved" residential units are on a decline. The PUD, Rezoning & all the activities associated with the planning arc at a point where they rc beginning to no longer plan for developments within the urban boundaries. The capacity to support the construction is still out there. He did not want any misunderstandings. The Commercial and Industrial permits are on a downturn. In conclusion he stated they recommend increasing the road impact fees to justifiable limits. He then introduced Cormac Giblin. Cormac Giblin- Housing Development Manager - A handout was distributed that he used in his presentation. He talked about the different programs and helping low income first-time home buyers pay their impact fees with the SHIP monies. Last year they spent $1 Million of the SHIP money to pay the impact fees on the low and very low income home buyers. That helped 107 households. There are several (6 scheduled) update impact fees to be discussed in the next quarter. Page 4.2.1 outlined the Local Matching Funds for the County's Workforces Housing Efforts. Commissioner Fiala mentioned much of the SHIP monies go toward the habitat program- if there are new monies going into the program will there be other programs 7 September 17, 2002 it will be used for than just the habitat? Cormac stated the money can be used for multiple programs. He mentioned that approx. $2,000,000 would be required from the General Fund to provide a match for the SHIP Funds. Page 4.3.1. - to implement the General Fund money would take an amendment to be adopted in the Budget. It would be up to the Commissioners as to the timeframe for such an amendment. Mr. Mudd mentioned that they provide $3.5 Million to the SHIP program that goes to the State and only get 2 Million back. Commissioner Coyle wanted to let everyone know he is opposed to any ad valorum Taxes to do this. To give Commissioner Coyle an explanation of the SHIP Program Mr. Mudd spoke of earlier, Cormac said Collier County has a high volume of Real Estate Transfers, as other Counties do in the state, the SHIP funds are collected as a documentary stamp tax. This is a Donor County to the SHIP program of which $3.5 million is sent in and get 2 million back. Cormac then covered the Inclusionary Zoning according to the handout. Priorities need to be addressed, how it will work, and the Smart Growth program. Commissioner Fiala stated that what they re trying to do with the Inclusionary Zoning is to create an equitable geographical distribution of affordable housing and continue to add to the housing "stock" because it is more and more difficult for anyone to build affordable housing. The impact fees will be difficult to overcome when people are trying to buy homes. She stated the Inclusionary Zoning has a lot of good aspects and will help pay for the impact fees on others. Cormac mentioned that studies are done and what is looked at is census dated incomes, sales prices, what's available, and MLS data which is the best they can get for assessed and future needs. Commissioner Coletta also mentioned that people are doubling up in their housing needs just to maintain their presence in Collier County. 6,000 new jobs are created each year according to Cormac. 83% of the jobs in Collier County are in the lowest job sector of employment. Discussion followed about persons being closer to the job place thus putting less strain on the roadways. Cormac said to implement Inclusionary Zoning would be an approval by the BCC and included into the Growth Management Plan and the county's Land Development Code. Linkage Fees (Page 4.4.1) was discussed. The objective covered in the handout points out linking new commercial, industrial, and non-affordable residential construction to the workforce housing demand that they create. The Fiscal Impact in Collier County would be $1 per square foot fee assessed on only the non-targeted industry that would generate $2,500,000 each year for use of supplying the workforce housing. Cormac covered (Page 4.5.1) Tourist Impact Tax. The County would have to be identified as an area of critical state concern. That would require an act of the Governor and State Legislature to approve an additional 1% existing tax. It would bring in around $3 Million a year. This would also need a local referendum. Page 4.7.1 covered the Analysis of the Land Use Categories. Commissioner Henning stated that if the Board wanted to incentivize certain developments is to incentivize them with less government. He discussed the PUD process and incentives and how to apply in Collier county. He stressed people like less Government. He talks about comprehensive amendments to incentivize to make things more of a permitted requirement and not a land use requirement. This would mean what ever development it would be in Collier county whether Workforce housing or economic development. Cormac said they are looking at many options. September 17, 2002 Page 6.2.1 -Real Estate Transfer Surtax, opting out of the SHIP Funds and levying own Surtax. He discussed how Dade County levies a discretionary surtax on deeds and others relating to real property (doc stamps) at 45 cents per $100 of value. What would this mean to Collier County? The 45 cents per $100 value would raise about $25 million a year. This would require approval from the State Legislature to expand only Dade County to Collier County also. Dade County opted out of the SHIP Program. Mr. Mudd will get more information for the Board. Break 12:30 PM Meeting reconvened at 1:33 PM Mr. Mudd said they will move onto the Economic ideas that were communicated during the listening session. Helene Caseltine - Economic Development Manager - Page 5.1.1 of the handout talks about the Analysis of what could happen when the Road Impact Fees increase. She mentioned there are several companies they are working with - looking to expand in Collier County and having second thoughts because of the increases. They are also looking at property in Lee County. Road Impact fees would double or triple for some of them. Commissioner Fiala stated that the businesses also keep the rest of our taxes down and not many realize that if we don't have these businesses to pay our tax base, our own taxes go up. Helene gave an example; a company from Michigan is looking to relocate their facilities in Collier County. She is looking to develop a Research & Technology Research Park in North Naples. Would create 45 new jobs, pay average wage of $54,570 per job and $3.2 million capital investment. Direct impact is $5.6 million. Estimated $197,000 in road impact fees paid under the current rate vs. over $600,000 under the proposed fee schedule. The rate used is from several weeks ago. Page 5.2.1 - Deferral of Transportation Impact Fees. Program could be implemented quickly with Board approval. She gave the example from the handbook again of what would be paid in impact fees and the direct economic impact. Discussion followed on deferring impact fees, which ones can be deferred and not, Mr. Mudd will look into the situation further. Helene mentioned that she was told by her Impact Fee Coordinator that residential fees are the only type of development that is assessed. Commissioner Carter stated that 80% of the ad valorum taxes come from residential and are trying to get that reduced bY bringing up the industrial business base. This is an opportunity to accomplish goals through a mechanism of impact fee deferral or other incentives. They are eventually paid but they have a longer period because of what it does for the economic enhancements of the community. He said they are going to be in trouble if they don't start doing these things because people will go to other Counties. Page 5.4.1 - Establish Geographic Overlays - These would pay either a lesser or possibly no road impact fees over a period of years. Norman Feder understands that some zones can be set up with reduced or modified impact fee with a geographical overlay dominious and doesn't change the overall population. He gave the example that exists today according to the handbook. Need to take some cautions - it needs to be very small of the overall population. Commissioner Coletta discussed situations in Immokalee. He thinks this would be a benefit for the Immokalee area. Commissioner Fiala said that as business comes in it helps our tax base, and if they could encourage business to be located in Immokalee where 9 September 17, 2002 there is already a workforce, 1) it would keep them offthe roads, 2) establish County wide Tax Base or at least improve the county wide tax base building up their economy in Immokalee. She would consider this. Funds are not taken from one area and used in another. Commissioner Carter was concemed about assumptions - he wants to know about road capacity, and what would impact it. How much is being collected in other areas for impact fees. He is not ready to say that they take an area and don't assess impact fees. He is willing to listen to a combination of things, but not an area being frozen out for a 3 year period because of assumptions. Commissioner Coletta said the situation in Immokalee is dramatically different than the rest of coastal Collier County. It is two different worlds and need a balance. Commissioner Henning needs information on what the needs of Immokalee are so an educated decision can be made. Phil Tindall - He gave information on Immokalee and said they looked at some of the numbers of building permits and the focus on roads. Year to date is $760,000 Revenues, $54,000 Expenditures and $300,000 in a growth project being carried into the next fiscal year. Charts were given and discussed. Commissioner Coletta mentioned he wished he would have had the information sooner than he did so he could discuss this intelligently. He also wished the people from Immokalee would have had it sooner. They could analysis it and make some logical decisions. He has a lot of questions concerning the state funding and oil well road. He is asking - I75 to Oil well Road - 4-6 lanes - $18 million - how much of that would be written offwith the rest of the impact fees and paid out through Golden Gate Estates. He had a lot of questions concerning the report. Decisions need to be made. Commissioner Carter feels the leadership from Immokalee need to attend the meeting on Sept. 25th regarding State Road 29. He feels they need community support. Perhaps the date and time can be put on Channel 11. Commissioner Coyle summarized his position on several of the issues stated today. Indexing of gas tax isn't going to produce enough revenue to worry about. Geographical Overlay as described is far too broad. Deferral of Impact Fees is a good way to go. Have to treat the problem and that is low wages. He believes they should develop a flexible package of impact fee deferrals, or complete offsets of impact fees for targeted industries, but not for just any commercial or industrial development. Focus on attracting specific kinds of high paying jobs. Recommend developing a list of high paying jobs to attract. Then we have people that can afford to live here and that will improve the economic base. Best way to handle the issue is to determine where the development is needed the most and what kind of development is needed for incentives. Mr. Mudd stated they will come back to the Board with more direction, information and get it to them as soon as they can. Page 5.5.1. - Index the Local Option Gas Tax to the Consumer Price Index. The State of Florida does that now - local option taxes are not indexed to the CPI. It could potentially bring in about another $300,000. Commissioner Carter was in favor of keeping it in the package. Phil Tindall - Alternative Means of Raising Revenues -recommendation of 1% Real Estate Transfer Surtax. This was discussed earlier. A slide was shown. Page 6.2.2 gave an example of a typical closing cost for a $130,000 home. SPEAKERS: Jerry Reger - Robust System Inc., They are located in Hollywood, FI. They have special technology they use to build hurricane and earthquake resistant housing and termite and 10 September 17, 2002 fireproof. Cost effective - build with local forces. They build simple but very durable and safe housing for other countries. They have now decided to apply their technology to affordable housing in Florida. ($100-105,000 homes.) They have some acreage offered to them in Immokalee and the impact fee could be a very severe problem. Things he heard today are encouraging to make them go forward with projects. The impact fees can kill a project without some sort of subsidy. Lynn Solomon - She is also encouraged since they are looking at other altemative. Once the impact fees are increased it will impact the affordability of homes. Economic Alternatives are needed. Patrick McCnic - He outlined a few issues: 1) Timing of Impact Fees 2) Supports Inclusionary Zoning 3) Fairness-no forms of Taxation 4) No Federal Incentives received for Arrowhead 5) Re-think square footage basis for fees 6) Route 29 - no monies in Immokalee 7) If no work force you have no economical development. 8) Plan to build 130 sq foot Retail Center. Impact fees will be $1.5 million. That's more than they paid for the land - it will not get built if that is charged in impact fees. Look at the economic impact in Immokalee. 9) What would Collier County be without the eastern portion including Immokalee? What would happen in Collier County if they decided to separate? Joe Schmitt - Wants a detailed analysis of what the Board would like them to pursue. Commissioner Henning felt he did not get the package in time to study fully. A summary is given: 4.3.1 - Inclusionary Housing - bring back. 4.4. ! Linkage Fees - Drop 4.5.1 Tourist Impact Fees - Drop (Just the 1 cent) 4.6.1 Food & Beverage - Drop 4.7.1 Analysis of Land Use - Yes 5.2.1 Impact Fee Deferrals - Yes (include low cost housing) 5.3.1 Millage - Drop 5.4.1 Geographic Overlays - Yes (Just Immokalee) 5.5.1 Local Option Gas Tax - Yes 6.2.1 Real Estate Transfer Tax - Yes Doc Stamp - Yes Ship Funds - Yes Workshop meeting was adjourned at 3:15 PM. There being no further business for the good of the County, the meeting was adjourned by order of the Chair- Time: 3:15 p.m. BOARD OF COUNTY COMMISSIONERS BOARD OF ZONING APPEALS/EX OFFICIO GOVERNING BOARD(S) OF SPECIAL DISTRICTS UNDER ITS CONTROL JAM~3"N. COLETfA, CHP~AN 11 '" DWIGtt'~f',, E .BROCK, CLERK These minutes were approved by the Board on as presented ~//or as corrected September 17, 2002 12