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Agenda 06/13/2017 Item #10A06/13/2017 EXECUTIVE SUMMARY Recommendation to direct the County Attorney to advertise an ordinance for future Board consideration that would establish a pilot program in Immokalee to ascertain whether allowing the payment of impact fees by an installment program, as a voluntary alternative to paying the fees in a single, up-front payment, will have a positive effect on both the costs of housing and economic growth. OBJECTIVE: To both stimulate the economy of Immokalee, Florida, by allowing the payment of impact fees by installments, and to ascertain whether doing so has a positive effect on both the costs of housing and economic growth. CONSIDERATIONS: Immokalee is Collier County’s largest inland community. With its unique geographic, social, and economic characteristics, Immokalee has long been recognized as a distinct community, and a community that operated under separate zoning and subdivision regulations until 1982. Immokalee is now regulated through the county-wide Land Development Code and the Immokalee Area Master Plan. It is also one of the two Redevelopment Areas established by the Collier County Community Redevelopment Agency (CRA) in March 2000 to eliminate slum and blight. Immokalee also participates in several government-funded programs intended to improve housing and stimulate job growth for its citizens. The purpose of this ordinance is to establish an impact fee installment payment pilot program which is intended to provide the Board of County Commissioners of Collier County, Florida, with the opportunity to study whether paying impact fees through installments result in lower initial costs and value in housing and greater economic development, as well as to provide an additional incentive for Immokalee’s economic growth and development. Installments would be paid once a year as an assessment. The proposed ordinance provides that as an alternative to paying impact fees in full, a feepayer could pay their impact fees in installments by entering into an agreement with Collier County. The form of the agreement would be approved by the Board, and the agreement would at a minimum provide: (1) An acknowledgement by the feepayer that the subject property is specially benefited by the improvements to the property and the installment payments shall be special assessments levied as non-ad valorem assessments against the subject property pursuant to the Uniform Assessment Collection Act. (2) The term of the agreement and the interest rate to be charged, which terms are set by the Board of County Commissioners. Although it is my recommendation that the installments be paid over thirty years, I structured the ordinance to allow this term as well as the interest rate to be easily changed by the Board, which will give the Board maximum flexibility in making this a successful program (3) That the obligation runs with the land, meaning that as owners of the property change, the obligation will continue. In this manner, everyone who owns the property that is being benefitted by the improvements made by the impact fees will share in the cost of the impact fees. To ensure this, the agreement will be recorded by the County. (4) Prior to May 1 of each fiscal year, the feepayer of a parcel assessed would have the right to pay the outstanding balance owed without penalty. 10.A Packet Pg. 33 06/13/2017 (5) To prevent unintended consequences, the Board will annually review this Pilot Program, with staff preparing regular updated reports that any Commissioner can review FISCAL IMPACT: The approximate cost to advertise the proposed ordinance is $500. Other fiscal impacts, both positive and negative, are presently unknown. GROWTH MANAGEMENT IMPACT: There is no Growth Management Impact associated with this Executive Summary. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and legality, and requires majority vote for approval. -JAK RECOMMENDATION: That the Board of County Commissioners directs the County Attorney to advertise the proposed ordinance for future consideration. PREPARED BY: William L. McDaniel, Jr., Commissioner District 5 ATTACHMENT(S) 1. Proposed Impact Fee Ordinance (PDF) 10.A Packet Pg. 34 06/13/2017 COLLIER COUNTY Board of County Commissioners Item Number: 10.A Doc ID: 3299 Item Summary: Recommendation to direct the County Attorney to advertise an ordi nance for future Board consideration that would establish a pilot program in Immokalee to ascertain whether allowing the payment of impact fees by an installment program, as a voluntary alternative to paying the fees in a single, up-front payment, will have a positive effect on both the costs of housing and economic growth. Meeting Date: 06/13/2017 Prepared by: Title: Legal Assistant/Paralegal – County Attorney's Office Name: Virginia Neet 05/31/2017 2:57 PM Submitted by: Title: County Attorney – County Attorney's Office Name: Jeffrey A. Klatzkow 05/31/2017 2:57 PM Approved By: Review: Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 05/31/2017 5:03 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/01/2017 1:00 PM Budget and Management Office Mark Isackson Additional Reviewer Completed 06/01/2017 6:21 PM County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 06/04/2017 10:35 AM Board of County Commissioners MaryJo Brock Meeting Pending 06/13/2017 9:00 AM 10.A Packet Pg. 35 10.A.1 Packet Pg. 36 Attachment: Proposed Impact Fee Ordinance (3299 : Authorization to advertise Ordinance - Impact Fee Pilot Program) 10.A.1 Packet Pg. 37 Attachment: Proposed Impact Fee Ordinance (3299 : Authorization to advertise Ordinance - Impact Fee Pilot Program) 10.A.1 Packet Pg. 38 Attachment: Proposed Impact Fee Ordinance (3299 : Authorization to advertise Ordinance - Impact Fee Pilot Program) 10.A.1 Packet Pg. 39 Attachment: Proposed Impact Fee Ordinance (3299 : Authorization to advertise Ordinance - Impact Fee Pilot Program)