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Agenda 05/24/2011 Item #11A5/24/2011 Item 11.A. EXECUTIVE SUMMARY Request for authorization to advertise and bring back for future consideration an amendment to Chapter 49 of the Collier County Code of Laws and Ordinances, relating to economic development, which will establish additional criteria to be evaluated (1) when there is a request to lessen or waive certain requirements in existing economic development ordinances and programs, and (2) when there is an application seeking grants and /or other incentives which fall outside existing economic development ordinances and programs. OBJECTIVE: To obtain the Board of County Commissioners' (Board's) authorization to advertise and bring back for future consideration an ordinance amending Chapter 49 of the Code of Laws and Ordinances in order to establish additional criteria and provide flexibility in awarding grants and other economic incentives in addition to the eligibility criteria set forth in each incentive program. CONSIDERATIONS, Chapter 49 of the Code of Laws and Ordinances is a "toolbox" of economic incentive programs intended to promote and foster economic diversification through the retention of high wage jobs in targeted industry clusters. The first of these programs was the Job Creation Investment Program. Subsequently, the Board established the Fee Payment Assistance Program, the Property Tax Stimulus Program, an Advanced Broadband Infrastructure Investment Program, a Job Retention Investment Program, and a mechanism to create Innovation Zones. Some of these programs have been amended from time -to -time. At its May 10, 2011 regular meeting (Item 10 -C), the Board considered an Economic Development Council request to waive the minimum job creation and wage requirement for a business locating in western Collier County (Collier Scrap Metal Recycling, Inc.). At the end of this discussion, the Board directed the County Attorney to draft an amending ordinance to allow the Board, upon the finding of good cause shown, to waive some or all of the requirements set forth in the programs codified in Chapter 49. It is the opinion of the County Attorney that established criteria would help the Board in making such a determination, and lessen the risk that the Board's decision could be challenged as arbitrary or capricious. When drafting this amendment, it became clear that the same criteria that could be utilized when the Board is asked to lessen or waive requirements in existing economic development programs could also be utilized if the Board is asked to consider awarding a grant or other incentives which fall outside existing programs. The proposed amendment creates new Sections 49 -10, 49 -11 and 49 -12 to the Code of Laws and Ordinances of Collier County which would read as follows: ARTICLE I. IN GENERAL Section 49 -10 Economic Development — Purpose. 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, the Board from time -to -time will enact ordinances designed to encourage private sector investing within Collier County which results in Packet Page -235- 5/24/2011 Item 11.A. increased employment opportunities for Collier County residents. Such ordinances are in addition to all powers the Board enjoys under its Home Rule powers and as set forth in Florida Statutes Sec. 125.045 (County economic development powers), as may be amended from time -to -time by the State Legislature. Section 49 -11 Criteria in Awarding Grants and other Incentives In addition to the Eligibility Criteria set forth in each program, the Board may also consider the following criteria in its review: a. The type of business that is proposed; b. The total number of net jobs to be created and retained by the project; c. The expected number of employees who will reside in the County; d. The average wage of the jobs to be created and retained, both considering executive compensation and excluding executive compensation; e. The health, retirement and other benefit package offered to the prospective employees; f. The projected capital investment of the project, including land, building and equipment; g. The projected completion date for the project. If the project is to be completed in phases, then the dates of such phases and the number of jobs projected to commence with each phase; h. The environmental impact of the proposed business; i. The impact that the proposed business would have on existed businesses and employment within Collier County; j. Whether the proposed business will utilize local sources of supply; k. Whether the proposed business is expected to employ current County residents; 1. Whether the proposed business is expected to attract other employers to Collier County; m. The current economic climate of the County, including the unemployment rate and housing vacancy rate; n. Whether the proposed relocation or expansion would occur without the award; o. Whether the proposed business can be serviced by existing mass transit; p. The impact to County Government revenues projected by the business and by the increase in employment; q. The impact to County Government costs in providing services and infrastructure to the proposed business and projected employment; and r. Other such factors that the Board may deem relevant in evaluating the merits of the application. Applications for grants and other incentives that do not fall within existing programs will be evaluated utilizing the criteria set forth above. Section 49 -12 Waiver. With respect to all economic development ordinances previously enacted by the Board of County Commissioners, which are codified in Chapter 49 of the 2 Packet Page -236- 5/24/2011 Item 11.A. Collier County Code of Laws and Ordinances, and unless otherwise set forth to the contrary, with respect to all economic development ordinances to be enacted hereafter, such ordinances and the programs set forth therein are to be liberally construed, and that upon the finding of good cause show, utilizing the criteria set forth in Section 49 -11, the Board may lessen or waive any requirements set forth in such ordinances and the programs set forth therein. FISCAL IMPACT: Advertising costs are approximately $400.00. GROWTH MANAGEMENT IMPACT: None. RECOMMENDATION: That the Board of County Commissioners authorizes the County Attorney to advertise and bring back for future consideration an ordinance amending Chapter 49 of the Code of Laws and Ordinances which establishes additional criteria and provides flexibility in awarding grants and other economic incentives in addition to the eligibility criteria set forth in each incentive program. PREPARED BY: Jeffrey A. Klatzkow, County Attorney Packet Page -237- COLLIER COUNTY Board of County Commissioners Item Number: 11.A. 5/24/2011 Item 11.A. Item Summary: Request for authorization to advertise and bring back for future consideration an amendment to Chapter 49 of the Collier County Code of Laws and Ordinances, relating to economic development, which will establish additional criteria to be evaluated (1) when there is a request to lessen or waive certain requirements in existing economic development ordinances and programs, and (2) when there is an application seeking grants and /or other incentives which fall outside existing economic development ordinances and programs. Meeting Date: 5/24/2011 Prepared By Name: CrotteauKathynell Title: Legal Secretary,County Attorney 5/18/2011 12:31:28 PM Approved By Name: KlatzkowJeff Title: County Attorney, Date: 5/18/2011 1:30:05 PM Name: GreenwaldRandy Title: Management /Budget Analyst,Office of Management & B Date: 5/18/20112:28:42 PM Name: IsacksonMark Title: Director -Corp Financial and Mgmt Svs,CMO Date: 5/18/2011 3:02:06 PM Packet Page -238- 5/24/2011 Item 11.A. ORDINANCE NO. 2011- AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AMENDING ARTICLE I OF CHAPTER 49 OF THE COLLIER COUNTY CODE OF LAWS AND ORDINANCES, BY PROVIDING FOR AN OVERALL PURPOSE FOR ECONOMIC DEVELOPMENT ORDINANCES ENACTED BY THE BOARD; PROVIDING THAT SUCH ORDINANCES ARE IN ADDITION TO ANY AND ALL ECONOMIC DEVELOPMENT POWERS THE BOARD MAY OTHERWISE EXERCISE UNDER LAW; PROVIDING THAT SUCH ORDINNACES ARE TO BE LIBERALLY CONSTRUED, AND UPON A FINDING OF GOOD CAUSE SHOWN FOR A WAIVER OF ANY AND ALL REQUIREMENTS SET FORTH IN ECONOMIC DEVELOPMENT ORDINANCES AND THE PROGRAMS SET FORTH THEREIN; PROVIDING FOR CONFLICT AND SEVERABILITY; PROVIDING FOR INCLUSION IN THE CODE OF LAWS AND ORDINANCES; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, based upon a legislative finding that the Collier County's historical dependence upon tourism, agriculture and construction are susceptible to economic cycles and downturns in the economy, on March 12, 2003, the Board of County Commissioners directed staff to move forward with proposals for a "toolbox" economic diversification to promote and foster economic diversification through the retention of high wage jobs in targeted industry clusters; and WHEREAS, in keeping with this direction, staff brought forward various proposals, and the Board enacted Ordinance 2003 -63, which amended the Collier County Code of Laws and Ordinances by creating new Chapter 49 — Economic Development, with the first of these programs, the Job Creation Investment Program; and WHEREAS, the Board added additional programs to this Chapter 49 "toolbox," which include the Fee Payment Assistance Program enacted by Ordinance 2003 -61; a Property Tax Stimulus Program enacted by Ordinance 2003 -62; an Advanced Broadband Infrastructure Investment Program enacted by Ordinance No. 2005 -56; a Job Retention Investment Program enacted by Ordinance 2008 -16; and establishing a mechanism to create Innovation Zones as set forth in Ordinance 2010 -20, some of which programs have been amended from time -to -time; and WHEREAS, the Board wishes to make clear that these programs are in addition to all powers the Board enjoys under its Home Rule powers and as set forth in Florida Statutes Sec. 125.045 (County economic development powers), as may be amended from time -to -time by the State Legislature; that these programs are to be liberally construed, and that the Board, upon the Packet Page -239- 5/24/2011 Item 11.A. finding of good cause shown, may waive some or all of the requirements set forth in the Ordinances and the Programs codified in Chapter 49 of the Collier County Code of Laws and Ordinances. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: SECTION ONE: Collier County hereby adopts an Ordinance that amends Chapter 49 of the Collier County Code of Laws and Ordinances as follows: ARTICLE I. IN GENERAL Section 49 -10 Economic Development — Purpose. 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, the Board from time - to- time will enact ordinances designed to encourage private sector investing within Collier County which results in increased employment opportunities for Collier County residents. Such ordinances are in addition to all powers the Board enjoys under its Home Rule powers and as set forth in Florida Statutes Sec. 125.045 (County economic development powers), as may be amended from time -to -time by the State Legislature. Section 49 -11 Criteria in Awarding Grants and other Incentives In addition to the Eligibility Criteria set forth in each program, the Board may also consider the following criteria in its review: a. The type of business that is proposed; b. The total number of net jobs to be created and retained by the project; c. The expected number of employees who will reside in the County; d. The average wage of the jobs to be created and retained, both considering executive compensation and excluding executive compensation; e. The health, retirement and other benefit package offered to the prospective employees; f. The projected capital investment of the project, including land, building and equipment; g. The projected completion date for the project. If the project is to be completed in phases, then the dates of such phases and the number of jobs projected to commence with each phase; Packet Page -240- 5/24/2011 Item 11.A. h. The environmental impact of the proposed business; i. The impact that the proposed business would have on existed businesses and employment within Collier County; j. Whether the proposed business will utilize local sources of supply; k. Whether the proposed business is expected to employ current County residents; 1. Whether the proposed business is expected to attract other employers to Collier County; m. The current economic climate of the County, including the unemployment rate and housing vacancy rate; n. Whether the proposed relocation or expansion would occur without the award; o. Whether the proposed business can be serviced by existing mass transit; p. The impact to County Government revenues projected by the business and by the increase in employment; q. The impact to County Government costs in providing services and infrastructure to the proposed business and projected employment; and r. Other such factors that the Board may deem relevant in evaluating the merits of the application. Applications for grants and other incentives that do not fall within existing programs will be evaluated utilizing the criteria set forth above. Section 49 -12 Waiver With respect to all economic development ordinances previously enacted by the Board of County Commissioners, which are codified in Chapter 49 of the Collier County Code of Laws and Ordinances, and unless otherwise set forth to the contrary, with respect to all economic development ordinances to be enacted hereafter, such ordinances and the programs set forth therein are to be liberally construed, and that upon the finding of good cause show, utilizing the criteria set forth in Section 49 -11, the Board may lessen or waive any requirements set forth in such ordinances and the programs set forth therein. SECTION TWO: 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 phrase or portion of the Ordinance is held Packet Page -241- 5/24/2011 Item 11.A. invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion. SECTION THREE: INCLUSION IN THE CODE OF LAWS AND ORDINANCES. The provisions of this Ordinance shall become and be made a part of the Code of Laws and Ordinances of Collier County, Florida. The sections of the Ordinances may be renumbered or relettered to accomplish such, and the word "ordinance" may be changed to "section," "article," or any other appropriate word. SECTION FOUR: EFFECTIVE DATE. This Ordinance shall be effective upon filing with the Department of State. PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier County, Florida, this day of , 2011. ATTEST: DWIGHT E. BROCK, CLERK , Deputy Clerk Approved as to form and legal sufficiency: Jeffrey A. Klatzkow County Attorney BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA is FRED W. COYLE, CHAIRMAN Packet Page -242-