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Agenda 06/25/2013 Item #11C6/25/2013 11.C. � EXECUTIVE SUMMARY Recommendation to approve a resolution extending the "Impact Fee Program for Existing Commercial Redevelopment" to July 1., 2014, based on the continuing interest in the Program and the ongoing discussions related to commercial impact fees. OBJECTIVE: That the Board of County Commissioners (Board) approves a resolution extending the "Impact Fee Program for Existing Commercial Redevelopment" to July 1, 2014, based on the continuing interest in the Program and the ongoing discussions related to commercial impact fees. 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 that 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. On March 23, 2010, the Board reviewed the 1st Annual Report on the "Impact Fee Program for Existing Commercial Redevelopment," (Item 10B) which, in accordance with Board direction, provided detailed information on the participation in the Program and the fiscal impact on each of the affected impact fee trust funds. During the Program's first year, 40 applicants participated with 20 of the applicants being new businesses. The majority of the applicants were referred to the Impact Fee Administration Office through the Zoning Certificate process. During the discussion the Board directed that additional information be provided, as a future agenda item, related to potential improvements to the Program based on the input of various members of the industry, including the Economic Development Council of Collier County, the Collier County Productivity Committee, the Development Services Advisory Committee (DSAC) and leadership of the Collier Building Industry Association (CBIA). On April 27, 2010, staff presented the input provided by the groups above, for consideration by the Board (Item 10A). The Board directed that the changes, supported by the DSAC, Productivity Committee and staff, be implemented, and on May 25, 2010, the Board adopted Ordinance No. 2010 -22 incorporating those Program revisions (Item 17D). The adopted program provisions are as follows: Collier County Code of Laws and Ordinances - Chapter 74 74 -201. Imposition of Fees Packet Page -303- 6/25/2013 11. C. (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. On March 22, 2011, the Board accepted the 2nd Annual Report for the Program, detailing the 21 businesses assisted (Item 16A8). The Board also approved Resolution No. 2011 -54 extending the sunset date of the Program to March 24, 2012. The Board accepted the 3rd Annual Report for the Program on March 13, 2012, including the detail of 10 businesses that participated (Item 11 Q. The Board also approved Resolution No. 2012- 45 which extended the Program to March 24, 2013. On March 12, 2013 the Board accepted the fourth annual report on the "Impact Fee Program for Existing Commercial Redevelopment" and approved a resolution extending the program to July 1, 2013, due to the Program having been identified as a potential topic for an upcoming discussion/workshop (May /June 2013). This action allowed the program to remain during the discussion period. The Board heard a presentation on impact fees, including information on the "Impact Fee Program for Existing Commercial Redevelopment" on May 28, 2013 (Item 11 C) and held a workshop on June 4, 2013 to discuss impact fees and economic development. During the workshop, many of the concerns raised by speakers related to impact fees for commercial development. Based on the information presented at the workshop and the continuing conversations related to commercial impact fees, staff recommends that the "Impact Fee Program for Existing Commercial Redevelopment" be extended to allow for its continued use. Since the Board approved the extension in March, interested in the program has remained steady, with 5 businesses qualifying to participate, and several other businesses moving through the initial phases of the planning process with the intent to utilize the Program. The 6 new applicants bring the total participants, over the history of the Program, to 98 businesses assisted, and as noted above, interest in the Program continues. Accompanying this item is a Resolution, for Board, consideration, to extend the sunset of the Program to July 1, 2014. However, if the Board does not desire to extend the Program will sunset on July 1, 2013. Packet Page -304- 6/25/2013 11.C. 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 Year 1 Year 2 Year 3 Year 4 Extension Fee Type Period — to date Correctional $26,174.52 $29,395.10 $32,042.88 $55,111.77 $2,558.64 Facilities (Jail) Emergency $11,398.70 $13,787.52 $8,588.64 $14,741.58 $671.57 Medical Services Government $59,786.64 $74,214.86 $49,852.52 $84,878.87 $3,937.93 Buildings Law $21,065.73 $26,744.34 $3,696.30 $5,624.24 $2,166.72 Enforcement Road $1,147,851.95 $958,874.17 $587,663.04 $972,591.38 $106,831.34 Cumulative $1,266,277.54 $1,103,015.99 $681,843.38 $1,132,947.84 $116,166.20 Total 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. Packet Page -305- 6/25/2013 1 1.C. 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 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 with the Comprehensive Plan, the applicant would have to seek an amendment to the GMP. LEGAL CONSIDERATIONS: The proposed Resolution was reviewed by the County Attorney, is approved as to form and legality, and requires majority support for approval. -JAK RECOMMENDATION: That the Board of County Commissioners approves a resolution extending the "Impact Fee Program for Existing Commercial Redevelopment' ' to July 1, 2014, based on the continuing interest in the Program and the ongoing discussions related to commercial impact fees. Prepared by: Amy Patterson, Impact Fee Manager Office of Management and Budget Attachments: 1) Proposed Resolution Packet Page -306- COLLIER COUNTY Board of County Commissioners Item Number: 11.11.C. 6/25/2013 1 1.C. Item Summary: Recommendation to approve a resolution extending the "Impact Fee Program for Existing Commercial Redevelopment" to July 1, 2014, based on the continuing interest in the Program and the ongoing discussions related to commercial impact fees. Meeting Date: 6/25/2013 Prepared By Name: PattersonAmy Title: Manager - Impact Fees & EDC,Business Management & 6/13/2013 3:14:09 PM Approved By Name: KlatzkowJeff Title: County Attorney Date: 6/17/2013 3:26:00 PM Name: UsherSusan Title: Management/Budget Analyst, Senior,Office of Manage Date: 6/18/2013 3:50:09 PM Name: OchsLeo Title: County Manager Date: 6/18/2013 6:04:22 PM Packet Page -307- 6/25/2013 1 1.C. RESOLUTION NO. 2013- A RESOLUTION OF THE 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, 2013 TO JULY 1, 2014. WHEREAS, On March 24, 2009, the Board adopted Ordinance No. 2009 -14, which established the "Impact Fee Program for Existing Commercial Redevelopment" (hereinafter "Program "); and WHEREAS, Ordinance No. 2009 -14 provides that "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 "; and WHEREAS, on March 22, 2011 the Board of County Commissioners extended the sunset date of the Program 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 Program to March 24, 2013 by way of Resolution 2012 -45; and WHEREAS, on March 12, 2013, the Board of County Commissioners approved a temporary extension of the Program to July 1, 2013, by way of Resolution 2013 -62, due to the Program having been identified a potential topic for discussion and/or workshop; and WHEREAS, on May 28, 2013 and June 4, 2013, the Board of County Commissioners heard presentations and discussed impact fees and economic development; and WHEREAS, the Program has assisted 98 businesses over a four -year period and based on its overall benefit to the community, County staff recommends extending the sunset date to July 1, 2014; and staff. WHEREAS, the Board of County Commissioners accepts the recommendations from NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: The sunset date of the "Impact Fee Program for Existing Commercial Redevelopment" shall be extended to July 1, 2014, at which time the Program shall sunset unless further extended Packet Page -308- by a Resolution of the Board of County Commissioners. This Resolution is adopted after motion, second, and majority vote this , 2013. ATTEST Dwight E. Brock, Clerk , Deputy Clerk 6/25/2013 11.C. BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA GEORGIA A. HILLER, ESQ. Chair Packet Page -309- day of