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Agenda 06/26/2018 Item #11D06/26/2018 EXECUTIVE SUMMARY Recommendation to direct the County Attorney to advertise and bring back for public hearing an ordinance which would create the Interchange Activity Center No. 9 Innovation Zone, to be located at the intersection of I-75 and Collier Blvd., to facilitate economic development by establishing an Economic Development Plan and Trust Fund, setting a base tax year for the Fund, and reimbursing eligible expenditures as authorized in advance by the Board for use in encouraging economic growth. OBJECTIVE: To establish the Interchange Activity Center No. 9 Innovation Zone to further facilitate economic development in Collier County. CONSIDERATIONS: In 2010 the Board adopted Innovation Zones as a strategy to promote economic development and diversify the local economy. Innovation Zones function in a manner similar to Community Redevelopment Areas, with a geographical area and base tax year established by the Board, and are funded by future increases in the tax revenues within the Innovation Zone. The tax revenues are deposited into a segregated Trust Fund, which are then used after Board approval for projects intended to spur economic development with the Innovation Zone. On March 27, 2018, the Board provided direction to staff for the establishment of the Interchange Activity Center No. 9 Innovation Zone (Item 10.A), which as set forth in the proposed ordinance is comprised of Activity Center No. 9, as defined in the Future Land Use Element of the Collier County Growth Management Plan, together with additional adjacent vacant industrial land, as graphically described in Exhibit A. For many years, development has unduly lagged within the industrial and commercial areas near the Interstate 75 and Collier Boulevard intersection. The proposed Interchange Activity Center No. 9 Innovation Zones is intended to spur economic development in Collier County by attracting developers to the specific area, with a potential outcome of adding high wage employment opportunities within Collier County. The Board will approve all economic development proposals before trust funds are expended. FISCAL IMPACT: Revenue to be deposited in the Interchange Activity Center No. 9 Innovation Zone Trust Fund (fund number to be determined) is estimated at $120,000 with a base tax year of 2016 (county fiscal year 2017). If approved prior to December 31, 2018, tax data will be prepared by the Property Appraisers office in time for distribution of funds in FY 2020. The amount to be deposited into the Trust Fund in any year is dependent upon final taxable values for parcels specifically contained in the Interchange Activity Center No. 9 Innovation Zone and their tax increment as compared to the established base year of the zone. Pursuant to Ordinance 2010-20, at no such time will more than $1,000,000 be deposited into the Fund for any single tax year, and annually, 5% of the revenues will be retained by the General Fund for an administrative fee, pursuant to Ordinance 2010-20. Approval by the Board is required before any expenditures are made from the Trust Fund. GROWTH MANAGEMENT IMPACT: The adoption of the Interchange Activity Center No. 9 Innovation Zone will have no effect upon the Growth Management Plan. It should be noted that the Zoning Division will be developing an Interchange Activity Center No. 9 Innovation Zone sub-district within the Future Land Use Element to allow for the full utilization of the Innovation Zone’s Economic Development Plan, including evaluating additional design criteria. Creation of this sub-district will require an amendment to the GMP. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as 11.D Packet Pg. 359 06/26/2018 to form and legality, and requires a majority vote for approval. -JAK RECOMMENDATION: To direct the County Attorney to advertise and bring back for public hearing an ordinance which would create the Interchange Activity Center No. 9 Innovation Zone, to be located at the intersection of I-75 and Collier Blvd., to facilitate economic development by establishing an Economic Development Plan and Trust Fund, setting a base tax year for the Fund, and reimbursing eligible expenditures as authorized in advance by the Board for use in encouraging economic growth. Prepared by: Allison Kearns, Senior Management & Budget Analyst, Office of Management & Budget ATTACHMENT(S) 1. IAC9 Innovation Zone Ordinance (PDF) 2. IAC9 Innovation Zone Map (PDF) 11.D Packet Pg. 360 06/26/2018 COLLIER COUNTY Board of County Commissioners Item Number: 11.D Doc ID: 5879 Item Summary: Recommendation to direct the County Attorney to advertise and bring back for public hearing an ordinance which would create the Interchange Activity Center No. 9 Innovation Zone, to be located at the intersection of I-75 and Collier Blvd., to facilitate economic development by establishing an Economic Development Plan and Trust Fund, setting a base tax year for the Fund, and reimbursing eligible expenditures as authorized in advance by the Board for use in encouraging economic growth. (Jace Kentner, Business and Economic Development Division Director) Meeting Date: 06/26/2018 Prepared by: Title: Financial & Operational Support Manager – Office of Management and Budget Name: Allison Kearns 06/05/2018 9:56 AM Submitted by: Title: Operations Coordinator – Office of Management and Budget Name: Valerie Fleming 06/05/2018 9:56 AM Approved By: Review: County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 06/05/2018 1:47 PM Business and Economic Development Jace Kentner Additional Reviewer Completed 06/05/2018 3:27 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 06/13/2018 1:02 PM Budget and Management Office Mark Isackson Additional Reviewer Completed 06/15/2018 10:27 AM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 06/15/2018 4:19 PM Board of County Commissioners MaryJo Brock Meeting Pending 06/26/2018 9:00 AM 11.D Packet Pg. 361 1 ORDINANCE NO. 2018-_____ AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, ESTABLISHING THE INTERCHANGE ACTIVITY CENTER NO. 9 INNOVATION ZONE; PROVIDING FOR THE CALCULATION OF AN ANNUAL TAX INCREMENT AMOUNT WITHIN THIS INNOVATION ZONE; CREATING AN INNOVATION ZONE TRUST FUND FOR THE TRANSFER AND MAINTENANCE OF SUCH TAX INCREMENT AMOUNTS; SETTING FORTH THE ECONOMIC DEVELOPMENT PLAN FOR THIS INNOVATION ZONE; PROVIDING FOR CONFLICT, SEVERABILITY, AND INCLUSION IN THE CODE OF LAWS AND ORDINANCES; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, in addition to its broad home rule powers, Collier County is expressly authorized under Section 125.045, Florida Statutes to “expend public funds for economic development activities, including, but not limited to, developing or improving local infrastructure, issuing bonds to finance or refinance the cost of capital projects for industrial or manufacturing plants, leasing or conveying real property, and making grants to private enterprises for the expansion of businesses existing in the community or the attraction of new businesses to the community;” and WHEREAS, Collier County previously adopted Ordinance No. 2010-20 providing for the creation of Innovation Zones, specifically finding as follows: “It is the policy of the Board to promote economic growth which results in high wage jobs and helps diversify the economy of Collier County. To further this policy, it is the intent of the Board to create a dedicated source of revenue to fund an economic development program and to advance economic development initiatives in zones of geographic concentration within the unincorporated areas of the County. These zones, to be called Innovation Zones, will be designated by the Board from time to time through the implementation of Economic Development Plans adopted by resolution for each Innovation Zone;” and WHEREAS, for many years development has unduly lagged within the industrial and commercial areas near the Interstate 75 and Collier Boulevard intersection; and WHEREAS, the Board believes that Innovation Zones spur economic development in Collier County by targeting specific industries with the potential to add high wage employment opportunities; and WHEREAS, the Board believes that it is in the substantial public interest to create an Innovation Zone around the industrial and commercial areas near the Interstate 75 and Collier Boulevard intersection to help accelerate this area’s development, thereby creating both high wage jobs as well as a healthy tax base for the citizens of Collier County. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY 11.D.1 Packet Pg. 362 Attachment: IAC9 Innovation Zone Ordinance (5879 : IAC9 Innovation Zone) 2 COMMISSIONERS OF COLLIER OUNTY, FLORIDA, that: Section One: Definitions and Findings This Ordinance is intended to be a companion ordinance to Ordinance No. 2010-20, known as the Collier County Innovation Zone Ordinance. Accordingly, the Board of County Commissioners hereby adopts in full the definitions and findings set forth in Ordinance 2010-20, except for the Base Year Assessment Roll, which is defined below, and as modified hereby incorporates such definitions and findings as if specifically set forth below. Section Two. Establishment of the Interchange Activity Center No. 9 Innovation Zone. The Board of County Commissioners hereby creates the Interchange Activity Center No. 9 Innovation Zone. The Interchange Activity Center 9 Innovation Zone shall be comprised of Activity Center No. 9, as defined in the Future Land Use Element of the Collier County Growth Management Plan, together with additional adjacent vacant industrial land, as graphically described in Exhibit A. Section Three. Initial Tax Increment Year and Percentage. For purposes of establishing the Base Year Assessment Roll, the base year shall be the last Collier County Real Property Assessment Roll certified by the Property Appraiser for the County Fiscal Year beginning October 1, 2016. Tax increments shall commence to be deposited into the Trust Fund with the County fiscal year commencing on October 1, 2018, and funding shall continue through September 30, 2028, unless extended by majority vote of the Board by Resolution. The amount of the tax increment to be deposited into the Trust Fund shall be equal to 100% of the amount based on the formula set forth in Section 4(B) of Collier County Ordinance No. 2010-20. Section Four: Creation of an Economic Trust Fund. The County hereby creates the Interchange Activity Center No. 9 Innovation Zone Trust Fund. The tax increment shall be deposited into the trust fund and the trust fund proceeds shall be utilized to implement the Economic Development Plan set forth in Section Four. The Trust Fund corpus will not exceed One Million Dollars ($1,000,000) in any single fiscal year, and is subject to annual appropriation by the County. Up to 5% of the Trust Corpus shall be reserved as an annual administrative fee for the County. Upon termination of the Trust Fund, any unspent and unencumbered proceeds shall revert to the County’s General Fund. Section Five: Adoption of the Economic Development Plan. The primary purpose of the Interchange Activity Center No. 9 Innovation Zone is to attract and retain qualified targeted industry business as defined by Florida Statute 288.106. Trust funds may be utilized in any lawful manner, including infrastructure required to serve new target businesses or the expansion of an existing target business; payment of County Impact Fees to be 11.D.1 Packet Pg. 363 Attachment: IAC9 Innovation Zone Ordinance (5879 : IAC9 Innovation Zone) 3 paid by the new target business or the expansion of an existing target business; and payment of building permit fees or other County fees related to the construction of structures to serve the target business. In addition to this primary purpose, trust funds may be utilized in any lawful manner which the Board of County Commissioners determines fosters economic development. Payment of funds are purely discretionary, and must be approved in advance by the Board of County Commissioners. All expenses must be fully documented in a manner acceptable to the County. Priority of funding will be for the development within the Interchange Activity Center No. 9 Innovation Zone, as graphically represented by Exhibit A. Section Six: Conflict and Severability. In the event this Ordinance conflicts with any other Ordinance of Collier County or other applicable law, the more restrictive shall apply. If any court of competent jurisdiction holds any phrase or portion of the Ordinance invalid or unconstitutional, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion. Section Seven: Inclusion in the Code of Laws and Ordinances. The provisions of this Ordinance shall become and may be made a part of the Code of Laws and Ordinances of Collier County, Florida. The section of the Ordinance may be renumbered or re-lettered to accomplish such, and the word “Ordinance" may be changed to "Section," "Article," or any other appropriate word. Section Eight: Effective Date. This Ordinance shall take effect upon filing with the Florida Department of State. PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier County, Florida, this ___ day of June, 2018. ATTEST: BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, Clerk COLLIER COUNTY, FLORIDA By: ________________________ By: _____________________________ ANDY SOLIS, CHAIRMAN Approved as to form and legality: ______________________________ Jeffrey A. Klatzkow, County Attorney 11.D.1 Packet Pg. 364 Attachment: IAC9 Innovation Zone Ordinance (5879 : IAC9 Innovation Zone) I-75 S I-75 NCollier BLVDBeck BLVD White Lake BLVD Davis BLVD Le Buffs RDBenfield RDPlover AVE City Gate BLVD N Barot DRMagnol ia Pond D R Forest Glen BLVD 31st PL S W Radio LN Market STMadrid CIRBrennan DRRadio RD Weir DRJayNoahs WAYShearwater STPalm Springs BLVDBusiness CIR 32nd AVE SW Shaw BLVD Periwinkle WAYCity Gate BLVD SNoahs CI RJungle Plu m D R EPine Vale DRSunrise BLVDButtonwood WAYBush BLVDTollhouse DR Bedzel CIR Safe Harbor DR Robin Hood CIRCity Gate DR Wheat LNHadley PL E Titan W AY Eagle Kingfisher CIRPalm Lake DR Saddlebrook CIRIncome LN31st PL S W 32nd AVE SW Legend Proposed Innovation Zone Outside Activity Center 9 ¯ 0 1,100 2,200550 FeetFile: Innovation Zone Map.mxd 11.D.2 Packet Pg. 365 Attachment: IAC9 Innovation Zone Map (5879 : IAC9 Innovation Zone)