Agenda 04/13/2010 Item #16K 3
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Agenda Item No. 16K3
April 13,2010
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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
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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
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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
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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.
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"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.
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"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.
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(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
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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,
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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.
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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