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BCC Minutes 06/11/2003 W (Immokalee Economic Incentive Presentation)June 11, 2003 TRANSCRIPT OF THE MEETING OF THE BOARD OF COUNTY COMMISSIONERS Naples, Florida, June 11, 2003 LET IT BE REMEMBERED, that the Immokalee Economic Incentive & "TDR" Analysis/BCC Workshop in and for the County of Collier, having conducted business herein, met on this date at 9:00 AM in WORKSHOP SESSION in Building "F of the Government Complex, East Naples, Florida, with the following members present: CHAIRMAN: Commissioner Tom Henning Commissioner Donna Fiala Commissioner James Coletta Commissioner Frank Halas Commissioner Fred Coyle (absent) ALSO PRESENT: Jim Mudd, County Manager Joe Schmitt, Development & Environmental Serv. Stan Litsinger, Planning Services COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS WORKSHOP AGENDA June 11, 2003 9:00 a.m. Tom Henning, Chairman, District 3 Donna Fiala, Vice-Chair, District 1 Frank Halas, Commissioner, District 2 Fred W. Coyle, Commissioner, District 4 Jim Coletta, Commissioner, District 5 NOTICE: ALL PERSONS WISHING TO SPEAK ON ANY AGENDA ITEM MUST REGISTER PRIOR TO SPEAKING. SPEAKERS MUST REGISTER WITH THE COUNTY MANAGER PRIOR TO THE PRESENTATION OF THE AGENDA ITEM TO BE ADDRESSED. COLLIER COUNTY ORDINANCE NO. 99-22 REQUIRES THAT ALL LOBBYISTS SHALL, BEFORE ENGAGING IN ANY LOBBYING ACTIVITIES (INCLUDING, BUT NOT LIMITED TO, ADDRESSING THE BOARD OF COUNTY COMMISSIONERS), REGISTER WITH THE CLERK TO THE BOARD AT THE BOARD MINUTES AND RECORDS DEPARTMENT. REQUESTS TO ADDRESS THE BOARD ON SUBJECTS WHICH ARE NOT ON THIS AGENDA MUST BE SUBMITTED IN WRITING WITH EXPLANATION TO THE COUNTY MANAGER AT LEAST 13 DAYS PRIOR TO THE DATE OF THE MEETING AND WILL BE HEARD UNDER "PUBLIC PETITIONS". ANY PERSON WHO DECIDES TO APPEAL A DECISION OF THIS BOARD WILL NEED A RECORD OF THE PROCEEDINGS PERTAINING THERETO, AND THEREFORE MAY NEED TO ENSURE THAT A VERBATIM RECORD OF THE PROCEEDINGS IS MADE, WHICH RECORD INCLUDES THE TESTIMONY AND EVIDENCE UPON WHICH THE APPEAL IS TO BE BASED. ALL REGISTERED PUBLIC SPEAKERS WILL RECEIVE UP TO FIVE (5) MINUTES UNLESS THE TIME IS ADJUSTED BY THE CHAIRMAN. IF YOU ARE A PERSON WITH A DISABILITY WHO NEEDS ANY ACCOMMODATION IN ORDER TO PARTICIPATE IN THIS PROCEEDING, YOU ARE ENTITLED, AT NO COST TO YOU, TO THE PROVISION OF CERTAIN ASSISTANCE. PLEASE CONTACT THE COLLIER COUNTY FACILITIES MANAGEMENT DEPARTMENT LOCATED AT 3301 EAST 1 June 11, 2003 TAMIAMI TRAIL, NAPLES, FLORIDA, 34112, (239) 774-8380; ASSISTED LISTENING DEVICES FOR THE HEARING IMPAIRED ARE AVAILABLE IN THE COUNTY COMMISSIONERS' OFFICE. PLEDGE OF ALLEGIANCE IMMOKALEE ECONOMIC INCENTIVE PRESENTATION ADJOURN 2 June 11, 2003 Meeting was called to order by Vice Chairman Donna Fiala at 9:04 AM. Pledge of Allegiance was recited. Fred Thomas - Vice President of Immokalee Community Development Corp. Read Letter concerning past activities directing staff and residents creating an Economic Initiative Toolbox to meet the needs of the community and action taken to revitalize Immokalee. The Agenda for the first part of the morning will be a presentation from a study that was done for the Immokalee Community Development Corp on June 9th, and the second half will be on "TDC's. Mark McColey - Presentation - A brief study overview was given: Key objective - determine incentives Create economic development program - Tasks taken - Analysis of situation, incentives, fiscal impact & talking with others - Community Visioning - Define Immokalee - What can Immokalee Become? - Be Unique - Inclusive & open - Continue & Evolving - Long term perspective - Opportunities Identified - Creation of a Diverse Economy - Moving away from Agricultural dependence Sell Immokalee Target industries that prefer Collier County - not coastal area Utilize Airport Develop Commercial investment market Economic Opportunities - tourism, retirement, Ava Maria University Make Immokalee an Attractive Place to Work, Live & Play Attractive Town Serve pent-up housing demands Capture Immokalee Employees Allow money to recycle through communities Obstacles Stainable Economic Development Strategy- needs to be self-sustaining Diverse Economy - Local and County Level Economic Playing Field Impact Fees - barrier Create single dedicated economic development "Point of Contact" Community Vision Right fitting Regulations and Ordinances Changes in perceptions 2 - Workforce Development - Public Realm Investments Focus on Housing Needs - Recommendations Mitigate Impact Fees in Immokalee Commercial Impact Fee Fund Initially available to all commercial development activities Zoning regulations will be there Residential Impact Fees Deferral of Impact fees - Homeowners not bare cost of fees up front-later when equity Move Ahead with Economic Diversification Program - Create Dedicated Immokalee Economic Development Entity - Devise Community Vision - Master Planning - Overlay District - Invest in Public Realm - Code Enforcement - Rehabilitation Grants - Streetscape - Parks & Open Green Space - Public-Private Partnerships - Invest in Airport - Runway Extension & other improvements - Build off of Economic Development marketing study - Residential Infrastructure Bonds - Upfront Community Infrastructure Broader Community Amenities Bond paid back through additional tax on residential property taxes. - Other Recommendations - Fred Thomas: Staffto create Ordinances Support Efforts Emphasis on Airport - realign Hwy 75 OPEN DISCUSSION Commissioner Halas asked about the overlay study and how will they cap the rising land prices. Mr. Thomas said they are already seeing that because of the Ava Maria University. In Immokalee they only have a handful of landowners that are ready for developments. How will they protect themselves for incentives for industrial or housing keeping the tax dollars in Collier County. Need to keep the industrial and commercial residents in Immokalee. 3 How will they get goods in and out of Immokalee? Railroad, bypass, transportation needs, intermodle system with widening 29 - south to Interstate and north to State Road 27. Commissioner Coletta talked about the intermodle system and supporting it through the widening of 29. He discussed the impact fees and a master fee. Need to bring in the middle class people. They work in Immokalee but do not live there. Arrowhead will help being in Immokalee and will look at security. Mr. Thomas mentioned Immokalee is one of the safest communities in Collier County. Commissioner Halas asked about the deferred impact fees and what time frame are they looking to replenish them? Response was the average person sells typically between every 7-12 years. Two to three years it should appreciate enough to make-up the fees, and increase turnover. The impact fee concept was discussed at length. Commissioner Coletta suggested a one year window for sales to attract a certain clientele. (Homes for middle class) He would like staff bring back several different alternatives for them to look at; a limited window of opportunity to take advantage of. Jubilation sold out in two years. Commissioner Fiala felt this would give the nurses, teachers and others a reason to live there as there will be decent housing and it all begins with the homes. She can see a seed being planted, watered, and carefully watched over and will all turn into a beautiful field concept. Commissioner Halas asked about the plan for Commercial development. What kind of incentives etc. Incentives would be per employee, set wage requirements at 50% of Collier County. More discussion followed. Overlay study will have to be developed as part of the master plan and develop a boundary. A vision within that boundary will have to be established. Staff would work with the people in the Community. Increase industrial base needs to be done. County Manager Jim Mudd commented that staff needs to look at the economic impacts, the airport, what a 15 year tax deferral does, and what effect the CRA in the master plan process will mean. The 1% transfer real estate tax needs to be addressed to the legislature. There will be a September workshop concerning these issues. This is a good plan but need to know the financial impacts. There is a cost figure and need to know what it may be. Commissioner Coletta stated they need to forget the airport from any consideration, and if they are going to hang onto the 1% transfer tax and say they are going to go for it and achieve it, it will take 2 years, he wants incentives now. The transfer tax will not work. 4 County Manager Mudd stated everything in the plan costs money and is hard to get. Commissioner Coletta stated until they have choices in front of them they can't do a thing. Mr. Thomas said as soon as they have incentives in place, the quicker they increase their tax base and the more they contribute to the overall tax base of the County. SPEAKERS Ann Olesky - Lake Trafford Marina Airboats & Alligators - she feels this is a step in the right direction and Immokalee is a diamond in the rough. Need to go forward and the study is part of that hope. Immokalee is not a separate County but a hope. They can now take time to look into different things that scare them. Money isn't the object but the lack of, as Commissioner Coletta had stated. She is going to be an advocate of getting rid of impact fees. Edward Olesky - Lake Trafford Marina & Chairman of CDC Board - the lesser study reinforces things they are trying to do right now. Need to go forward with the study and they will try to find money for it. Mike Timmerman - did market study for Arrowhead which understood and analyzed the demand for residential product. Did the Jubilation product and very excited to see the project sold out. He knows there is a demand for residential product there. Arrowhead being a platted community where people can live in a community with a sense of other areas of Collier County is what is needed. He talked about Lehigh Acres. This is what Immokalee is moving towards. Lake Trafford will draw people to Immokalee. It is a jewel in Collier County. He sees a demand for a residential product. Bill McDaniel - President of Corkscrew Neighborhood Assoc. - this is a difficult job in front of them and the County Manager has made statements and need to be careful not to tear apart endeavors that are about to be taken for the greater good. Immokalee has been an oversight by many. Assist with the plan and allow the specificity to come with the actions and undertaking that are coming from the study. Eva Deyo - Executive Director of Immokalee Water & Sewer District - Board of Immokalee Community Development Corp., lmmokalee Chamber of Commerce and current Rotary Club President - lived in Immokalee for 20 years and has come a long way. Urged the Board of County Commissioners to consider the report and make the study work and find dollars to fund it. Wants to see Immokalee grow and progress. Tom Taylor - resident of Collier County for 20 years. Operates a business and does work in Immokalee. Agrees with the study and housing will be the driver. If people can move to Immokalee the rest will come with it. Commercial coming in will add value to the ad Valorem tax base of Collier County in Orange Tree and would like to see that in Immokalee. Need to make the plan a success and will have good growth. Would suggest simplifying. (Land Development Code). Make it simpler to cut the cost for doing work in Immokalee and they will see the long term benefits. Can always tighten up the Land Development Codes, but make it easier early on and will be less expensive. Commissioner Henning stated less government doesn't mean it is bad government and Immokalee does have an overlay and could develop their own Land Development Code. They would need the consensus of the community. He was unable to attend earlier and asked what the program is going to cost. County Manager Mndd reiterated again there is a cost figure to the study, and need direction from the Board to investigate it, and implement it with several options. Need to think about it further. Commissioner Henning said he would like to direct staff to bring back costs and options that can be done for the Immokalee Community. Once there are jobs, people will come to live there, and there will be retail. What are they trying to incentivize, jobs or housing market. A 10 MINUTE BREAK WAS TAKEN TDR's Presentation is on "TDR'S" - Stan Litsinger - Planning Manager - a notebook was given. The notebook showed the "sending" and "receiving" area maps. A power point presentation was given on the visualizer: (Dr. Nicholas report) - Overview - 27,000 acres of sending land of 1 unit per 5 acres - Value of $18,500 for a TDR in the sending area - Retail sales of properties (1998 & 9/01) - Value of a TDR unit within the sending land is approx. $23,000 - TDR program is viable in Collier County - $20-40,000 range - Land Economics Showed summarized report - Jan. '98 to Sept. '01. Showed the sales and values in the sending lands with incremental values More figures were shown in the report. TDR Economics in Collier County Rural Fringe receiving area Recommendations Keep it simple - Make the allocations formula fixed - Make increased density in receiving areas by right Do not allow rezoning in receiving areas Marty Chumbliar - update on legal status, deadlines and key decision points for Board to give direction on. 6 Rural Fringe Amendments were challenged - a recommended order finding the Plan Amendments in compliance was entered on April 29- exceptions filed by the petitioners, being the County and Department of Community Affairs and all interveners. It is now in the lap of Community Affairs for entering the final order. They have 90 days, end of July. Then the Rural Fringe Amendments go into effect. Petitioners could appeal but not affect the effectiveness of the Rural Fringe Amendments. They would still be a law at that point. The TDR regulations that implement the TDR program have to be completed within one year. Other things that need to be done in the next year are: Sight preservation in place in one year Definitions have to be developed or amended Buffering Standards developed Investigations at North Belle Meade Notification of all property owners - adjustment in boundaries ~ Items needed for direction: Does County want a TDR Bank - Process by which County could purchase TDR's, bank them and later sell to developers, or retire them. - Need to set up price - Decisions on staffing - how much staff assign to program to make it work. - Establish a variable rate or not. Bob Mulhere- - Need to continue to address key elements and do not lose something in the process. - Clarity of Purpose - defined goals and lands - Resources - staffing -Stan stated they do not anticipate additional staff is needed. - Evasion Proof- not to allow other means to increase the density in the receiving lands other than acquiring sending units. - Economic Feasibility - Seller and Buyer see it as profitable - Use by Right By right process Design standards used Don't have to change future land map Simplicity Transaction Cost Establish a Market Give it one year Make people aware of the TDR's He talked about Palm Beach County TDR's and covered several different pages of the report. Collier County has had a TDR program and one of the first in the state. Used by Deltona on the beach front properties on Marco Island. Hasn't been used because they went through the zoning process to achieve the development rights needed. 7 He talked about a Jamie Linzy report done on successes and failures. "Examples of other programs." Commissioner Itenning mentioned some units have less than 5 acres. Staff will need to get GIS mapping for every parcel less than 5 acres that has a right to one dwelling unit. County Manager Mudd wanted everyone to know the "Estates" are not part of the fringe. Marty talked about variable rates & TDR Values. County can set a minimum price. Then they need to draft supervisions for TDR Bank. She needs direction on these points. SPEAKERS David Ellis - Chairman Rural Fringe Committee - this is a good opportunity for many to restore what they lost in values of property rights in June 1999. This is creating opportunities in ways affordable housing developers can get ahead. Commissioner Coletta would like to propose the base price at $25,000, above the $18,000 suggested by Dr. Nicholas. He likes the idea of a bank but needs to hear more information. He would like two different tiers, one to have a price for x-number of dollars for the TDR's, the other where they register the TDR's at a set price they would like to sell them for. Doesn't want developers going to his constituents telling them they have to sell - deal through the safety of the County, but not have the County pay the bill. Have a small transition, handling charge go to the Buyer. Have to protect the integrity of the people. There is a trust out there now that the County is going to do the right thing. Now is the time to move forward. Marty mentioned they do have a brokering service, tracking, monitoring, holding and can set a price if wanted. Bob Mulhere is giving advice to see that the program works well and maybe set the value lower. Dr. Nicholas' suggestion is to establish a price below what the market price is at the present. Maybe in the middle of the $25,000 and $18,000 is a good price. If the Board chooses to go with a higher value, it increases the importance of funding some of the initial purchase. That will drive the process. Commissioner Coletta wondered if it could be done by a Bond issue. Commissioner Fiala mentioned they are creating villages, but wondered if anyone will be able to afford living in them unless they have a great deal of money and where are they going to get the people to service them. Marty responded they have made provisions for residential areas. Commissioner Fiala felt she needs to get a brain-storming committee together to finalize some points such as how to pay for it. 8 A lengthy discussion followed on restrictions, giving up rights, buying in good faith, and the right to build on properties. The Commissioners want to take the recommendation of the report and Dr. Nicholas, but would like another input - possibly a real estate appraiser. County Manager Mudd asked if the Board wanted to set a floor - answer was "yes". Marty asked if they are going to have a TDR Bank, Broker, and be careful of too high transaction fees. Discussion followed on brokering, paying for staff or outsource, in house monitoring, and budgeting. Summary - floor price - will go back to Dr. Nicholas and back to the Board. Broker, look at Banking at Budget time, and going with standard rate. There being no further business for he good of the County, the meeting was adjourned by order of the Chair at 12:30 P.M. .. 3--' ..... TOM HENNYNG, CHA'i-I~AN ~ /~d~¢~utes approved by the Board on ~-&~-~ ,as presented or ~kco~'Si~d ' BOARD OF COUNTY COMMISSIONERS BOARD OF ZONING APPEALS/EX OFFICIO GOVERNING BOARD(S) OF SPECIAL DISTRICTS UNDER ITS CONTROL