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Agenda 04/13/2010 Item #16K 3 1-- Agenda Item No. 16K3 April 13,2010 Page 1 of 10 EXECUTIVE SUMMARY Authorize the County Attorney to advertise an ordinance for future Board consideration which would establish a mechanism 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 unincorporated Collier 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. OBJECTIVE: To promote economic growth which results in high wage jobs and to help diversify the economy of Collier County by creating public-private partnerships funded in part by utilizing tax increment revenues within economic development areas to be called Innovation Zones. CONSIDERATIONS: The proposed ordinance is an enabling ordinance. It is designed for maximum flexibility under the statutes, and to allow the Board a quick response to economic opportunities as they become available to the County. The proposed ordinance empowers the Board to create Innovation Zones ("Zones") by adopting a resolution defining the geographic area comprising the zone. At the same time as the creation of the Zone, the Board would also adopt by resolution, an Economic Development Plan for the Zone, The Economic Development Plan would create a public-private partnership, which would among other things define various commitments in the form of financial funding, infrastructure improvements, land donations or other contributions, designed to promote the success of the Zone. The Zone would be funded, in part, through Tax Increment financing derived within the boundaries of the Zone. The Tax Increments would be depositcd into an Economic Development Trust Fund to be created for each Zone. Revenue bonds could then be secured from available funds maintained in the separate Economic Development Trust Fund created for each Zone or from available funds jointly available in multiple Economic Development Trust Funds for multiple Zones as determined in such subsequent resolution or agreement. The proposed ordinance also authorizes the Board to establish, from time to time, rules and regulations to implement and govern the administrative procedures that will be necessary for staff to implement this Ordinance, including minimum application requirements. These rules and regulations would be published and made readily available to the public. LEGAL CONSIDERATIONS: The proposed ordinance is legally sufficient. - JAK FISCAL IMPACT: The estimated cost to advertise this ordinance is approximately $400 which will be paid by the County Attorncy Office. GROWTH MANAGEMENT IMPACT: None, RECOMMENDATION: To direct the County Attorney to advertise the proposed ordinance and to bring it back for consideration by the Board. Prepared by: Jeffrey A. K1atzkow, County Attorney Item Number: Item Summary: Meeting Date: Agenda Item No. 16K3 April 13, 2010 Page 2 of 10 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS 16K3 Recommendation to authorize the County Attorney to advertise an ordinance for future Board consideration which would establish a mechanism 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 unincorporated Collier 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. 4/13/2010 9:00:00 AM Date Prepared By Jeff Klatzkow County Attorney 4/6/201012:08:47 PM Date Approved By Jeff Klatzkow County Attorney 4/6/20103:26 PM Date Approved By Leo E. Ochs, Jr. County Managers Office County Manager County Managers Office 4/6/20105:34 PM Agenda Item No. 16K3 April 13, 2010 Pa'l)r~ftf 10 April 13, 2010 ORDINANCE NO. 2010-_ AN ORDINANCE OF COLLIER COUNTY PROVIDING FOR THE CREATION OF INNOVATION ZONES BY THE BOARD BY SUBSEQUENT RESOLUTION; PROVIDING FOR THE CALCULATION OF AN ANNUAL TAX INCREMENT AMOUNT WITHIN THE GEOGRAPHIC BOUNDARIES OF EACH INNOVATION ZONE; CREATING AN ECONOMIC DEVELOPMENT TRUST FUND FOR EACH INNOVATION ZONE FOR THE TRANSFER AND MAINTENANCE OF SUCH TAX INCREMENT AMOUNTS; AUTHORIZING THE PLEDGE AND APPROPRIATION OF ECONOMIC DEVELOPMENT TRUST FUNDS; AUTHORIZING THE PREPARATION OF AN ECONOMIC DEVELOPMENT PLAN FOR EACH INNOVATION ZONE BY SUBSEQUENT RESOLUTION OF THE BOARD; PROVIDING DEFINITIONS; AND PROVIDING AN EFFECTIVE DATE. BE IT ENACTED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA: SECTION ONE. 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, 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. SECTION TWO. FINDINGS. It is hereby ascertained, determined and declared that; (A) The use of available Tax Increment revenues within an Innovation Zone as a dedicated economic development tool and funding source enhances the general welfare of the Agenda Item No. 16K3 April 13, 2010 Pa~ifff 10 April 13, 2010 County through the advancement of new employment opportunities, the implementation of redevelopment initiatives, the creation of new economic development opportunities and locations and the expansion of existing employment centers. (B) Each Innovation Zone is intended to encompass a defined geographic area used to determine the Tax Increment paid and applied pursuant to ordinance, resolution or agreement within the meaning of the term "dedicated increment value" defined in section 200.001(8)(h), Florida Statutes. (C) Commencing in the Initial Tax Increment Year for each Innovation Zone, the Tax Increment calculated pursuant to Section 4 of this Ordinance is intended to be a dedicated increment value referenced in the calculation of the "rolled back rate" under the method established in section 200.065(1), Florida Statutes. SECTION THREE. DEFINITIONS. As used in this Ordinance, the following words and terms have the following meanings, unless the context otherwise requires a different definition: "Aggregate Ad Valorem Millage Rate" means that millage rate obtained from the quotient of the sum of ad valorem taxes levied by the Board for countywide programs and within a municipal service taxing unit plus the ad valorem tax levied for all districts dependent to the Board divided by the total taxable value of the County, excluding Voted Millage. "Aggregate Ad Valorem Taxes" means ad valorem revenue generated by a levy of the Aggregate Ad Valorem Millage Rate against the total taxable value of the County considered for any of the discrete Collier County real property assessment rolls referenced in Section 4 of this Ordinance. 2 Agenda Item No. 16K3 April 13, 2010 Pa[j5~tff 10 April 13, 2010 "Base Year Assessment Roll" means the last Collier County Real Property Assessment Roll certified by the Property Appraiser prior to the date of adoption of the Tax Increment Resolution. "Board" means the Board of County Commissioners of the County. "County" means Collier County, Florida. "County Manager" means the chief administrative officer of the County or such person's designee. "Economic Development Plan" means the economic development program referred to in Section 8 of this Ordinance established by resolution of the Board for each Zone. "Economic Development Trust Fund" or "Trust Fund" means that Trust Fund created by resolution in Section 6 of this Ordinance for each Zone for the deposit, maintenance and accounting of the Tax Increment revenues annually generated within each Zone. "Initial Tax Increment Year" means the tax year commencing October 1,2010 or such subsequent tax year as established in the Tax Increment Resolution for the initial determination of a Tax Increment for the annual funding by the County of an Economic Development Trust Fund for a Zone. "Innovation Zone" or "Zone" means a geographic area created by resolution pursuant to Section 4 of this Ordinance used to determine a Tax Increment to be paid into an Economic Development Trust Fund to fund the Economic Development Plan approved for each Zone. "Property Appraiser" means the Property Appraiser of the County. "Tax Increment" means the annual determination for each Zone of the tax increment revenues calculated for each Zone pursuant to the formula adopted in Section 4 of this Ordinance. Agenda Item No. 16K3 April 13, 2010 Paqjr8tff 10 April 13, 2010 "Tax Increment Resolution". means the resolution adopted by the Board pursuant to Section 9 of this Ordinance. "Voted Millage" means ad valorem taxes levied in excess of maximum millage amounts authorized by law approved for periods not longer than two years by vote of the electors pursuant to Article VII, section 9(b), Florida Constitution, or ad valorem taxes approved by the electors and levied as provided in Article VII, section 12, Florida Constitution, whether required and authorized by law, ordinance or the Florida Constitution. SECTION FOUR. CREATION OF INNOVATION ZONES AND THE CALCULATION OF ANNUAL TAX INCREMENT AMOUNT. (A) The Board shall create Innovation Zones by adopting a resolution defining the geographic area comprising the Zone, (B) The Tax Increment amount for each Zone shall be determined annually by the application of the following formula within the geographic area defined for each Zone and shall be that amount equal to the percentage rate set in the Tax Increment Resolution applied to the difference between: (I) the amount of Aggregate Ad Valorem Taxes received each year by the County from ad valorem taxes levied on taxable real property contained within the geographic boundaries of a Zone; and (2) the amount of Aggregate Ad Valorem Taxes which would have been produced by a levy of the Aggregate Ad Valorem Millage Rate each year by the County upon the taxable real property within the geographic boundaries of a Zone as shown on the Base Year Assessment Roll. (C) The amount to be funded by the County for each Zone shall not be less than the percentage applied to the difference between subparagraphs (A)(I) and (A)(2) of this Section as set in the Tax Increment Resolution adopted for each Innovation Zone. 4 Agenda Item No. 16K3 April 13, 2010 Pa~riifff 10 April 13, 2010 (D) The County Manager shall certify to the Property Appraiser by May I of the year prior to the Initial Tax Increment Year, the boundaries of the designated geographic areas of each Zone, the reference to the Base Year Assessment Roll to be applied, and the specific proportion of the cumulative increase in taxable value to be applied in determining the Tax Increment. Any change in geographic boundaries, the Base Year Assessment Roll or percentage of the specific proportion of the cumulative increase in taxable value shall be certified to the Property Appraiser prior to May 1 of the year in which the change is to occur. SECTION FIVE. ANNUAL FUNDING OF ECONOMIC DEVELOPMENT TRUST FUND. Prior to January 1 of each County Fiscal Year and subsequent to any certification of the County Manager to the Property Appraiser required pursuant to Section 4(D), the Board shall appropriate and transfer to the Economic Development Trust Fund created for each Zone the Tax Increment for such defined geographic area, in an amount not less than that calculated pursuant to the formula provided in Section 4 of this Ordinance. SECTION SIX. CREATION OF ECONOMIC DEVELOPMENT TRUST FUND FOR EACH ZONE. There is hereby created an Economic Development Trust Fund for each Zone created by this Ordinance. The Tax Increment determined annually for each Zone shall be deposited in the Trust Fund prior to January 1 of each year as provided in Section 5 of this Ordinance and maintained for such Zone until paid or pledged for the implementation of the Economic Development Plan created for the Zone. By resolution of the Board, available funds maintained in one Economic Development Trust Fund can be paid or applied for a joint project or program with available funds maintained in a separate Economic Development Trust Fund or a percentage of future Tax Increment revenues can be pledged and applied for two or more Agenda Item No. 16K3 April 13, 2010 Pa'b'~ft'f 10 April 13, 2010 Economic Development Trust Funds to jointly fund a program or project affecting multiple Zones. SECTION SEVEN. PLEDGE OR APPROPRIATION OF TRUST FUNDS. By subsequent resolution or agreement, the Board shall have the authority to issue revenue bonds secured by a pledge of available funds maintained in an Economic Development Trust Fund or to authorize lease purchase obligations subject to annual appropriation from such available funds. Such bonds can be secured from available funds maintained in the separate Economic Development Trust Fund created for each Zone or from available funds jointly available in multiple Economic Development Trust Funds for multiple Zones as determined in such subsequent resolution or agreement. SECTION EIGHT. PREP ARA TION OF ECONOMIC DEVELOPMENT PLAN. The Board shall adopt, and revise as necessary, by resolution, an Economic Development Plan for each Zone created by Ordinance, to provide for: (A) The appropriation or pledge of trust funds deposited or maintained in the Economic Development Trust Fund created for those Zones. (B) An economic development program identifYing the public benefit to be derived, infrastructure necessary and required to implement and support such program, any incentives, regulatory or procedural changes, donations or contributions as may be deemed necessary to further economic development and/or redevelopment within the respective Innovation Zone and a fiscal and/or economic analysis as and to the extent deemed appropriate by the Board. (C) A partnership agreement, from one or more private entities, detailing a commitment to provide support in the form of financial funding, infrastructure improvements, 6 Agenda Item No. 16K3 April 13, 2010 Pa~ft'f10 April 13, 2010 land donations or other contributions, which in the discretion of the Board, promotes the viability and success of the Innovation Zone. SECTION NINE. INITIAL DETERMINATION OF A TAX INCREMENT. The Board shall adopt for each Zone a Tax Increment Resolution: (I) designating the Base Year Assessment Roll; (2) setting the percentage to be applied to the formula set forth in Section 4(B) of this Ordinance for the calculation of the Tax Increment; (3) specifying the number of County fiscal years to be utilized in determining the annual Tax Increment; and (4) setting the Initial Tax Increment Year. At the discretion of the Board, the resolution adopting and revising the Economic Development Plan and the initial Tax Increment Resolution can be combined into a single resolution serving both functions. SECTION TEN. IMPLEMENTATION. The Board may establish, from time to time, rules and regulations to implement and govern the administrative procedures that will be necessary for staff to implement this Ordinance, including minimum application requirements. These rules and regulations will be published and made readily available to the public. SECTION ELEVEN: 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 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. Agenda Item No. 16K3 April 13, 2010 Pag'b}Qn>f 10 April 13, 2010 SECTION TWELVE: 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 THIRTEEN: 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 ,2010. ATTEST: DWIGHT E. BROCK, CLERK BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA By: , Deputy Clerk By: FRED W. COYLE, CHAIRMAN Approved as to form and legal sufficiency: Jeffrey A. Klatzkow County Attorney