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Agenda 02/24/2009 Item #10B Agenda Item No, 10B February 24, 2009 Page 1 of 7 EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners provide direction to the County Attorney and the County Manager, or his designee, related to the option to change the requirements for the assessment of impact fees for changes of use in existing buildings ORJECTIVE: Recommendation that the Board of County Commissioners (Board) provide direction to the County Attorney and the County Manager, or his designee, related to the option to change the requirements for the assessment of impact fees for changes of use in existing buildings, CONSIDERATIONS: On December 3,2008, during the regular meeting of the Board of County Commissioners, the Board directed staff to develop an option, for consideration by the Board, for a change in the current requirements for the assessment of impact fees for changes of use within existing buildings. The current regulations are set forth in Section 74-201 (c) of the Collier County Code of Laws and Ordinances (Code), which is the Collier County Consolidated Impact Fee Ordinance, which states: (c) Change of size or use, Impactfees shall be imposed and calculated for net increase, alteration. expansion, or replacement of a use or a building, or part of a building (including dwelling unit), and each accessory or non- accessmy building, provided such net increase, alteration, expansion or replacement of the use, building, or part thereof or therein, by applying this chapter results in : (I) a net increase in the number of dwelling units; (2) a net increase in the size or square jootage of a building; (3) a net increase in the size of the use; or (4) intensification of the use as to constitute an expansion of the same use category or result in a change to a higher impact fee land use category; or (5) otherwise create additional demand or additional impacts on any of the public facilities, Staff reviews and assesses impact fees for changes of use via the review of all applications for Zoning Certificates/Business Tax Receipts and Development Orders (Building Permits, Site Plans, Site Plan Amendments, etc,) In order to assess impact fees for a change of use. first the lawfully existing land use must be determined. Staff researches information provided by applicant, site plans, building permits, Property Appraiser's records, etc, in order to make this determination, The impact fees are then calculated for the existing use based on current rates, - The impact fees are then calculated for the proposed new use, If the development contemplates a land use that is of a higher intensity use and therefore creates additional impacts on public facilities, impact fees are required to be assessed for the net increase in demand. Therefore, the impact fees are assessed by applying the impact fees that are calculated for the existing use against the impact fees that are calculated for the new use, Agenda Item No, 10B February 24, 2009 Page 2 of 7 The additional impact fees assessed for some of the most common changes of use, calculated using current rates are as follows below, This amount does not include water and sewer impact fees, as those assessments are calculated based on information that is location and demand specific, General Industrial to General Office General Industrial to Retail General Office to Medical Office Retail to Medical Office Retail to High Turnover Restaurant $11. 77 per square foot $11,1 8 per square foot $27 ,60 per square foot $29.49 per square foot $57,52 per square foot Based on the direction of the Board, the scope of the recommendation is limited to commercial uses and the requirements for assessment for "intensification of the use" or changes that "otherwise create additional demand or additional impacts on any of the public facilities," Staff has reviewed this matter with the County Attorney and has developed the following for consideration: PrOl!ram: Elil!ibilitv: Limitations: Applicable Types ofImpact Fees: Impact Fee Program for Existing Commercial Redevelopment Commercial buildings that have had a Certificate of Occupancy for a minimum of 5 years, The building must have been permitted and paid the then applicable impact fees, Program is limited to changes within existing commercial buildings, for example tenant build-outs, tenant improvements, etc, Additions to existing buildings and demolition/replacement of buildings will not be eligible for this Program. Applicable to all impact fees (excluding water-sewer) assessed for commercial changes of use, based on land use, This typically consists of Transportation, EMS. Government Buildings, Law Enforcement and Jail. These provisions will not apply to assessments for Water and Sewer Impact Fees as those assessments are based on both the review of available capacity for the existing building as well as the demand generated by the change of use, The exemption of the Water and Sewer Impact from this Program is discussed further in the Fiscal Impact section, Agenda Item No, 10B February 24, 2009 Page 3 of 7 Lenl!th of Prol!ram: Initial term of Program two (2) years from adoption date, with a report to the Board on the usage of the Program prior to the sunset date, The Board could then elect to extend the Program or allow it to sunset. The above represents the consensus opinion of staff and the County Attorney for the development of this Program; however, staff will modify the Program in accordance with the Board's direction, Upon such direction being provided, staff will work with the County Attorney to prepare the necessary amendments to the Code for consideration by the Board, as an advertised public hearing, at a future, regularly scheduled meeting of the Board of County Commissioners. The following is an example of the language that could be added to the Code in order to facilitate the creation of this Program: Section 74-201. Imposition of impact fees, *** (c) Change of size or use, *** (5) [moact Fee Prol!ram for Existinl! Commercial Redevelooment, Prooosed develooments which meet the criteria set forth below shall not be assessed additional imoact fees related to chanf!es of use within the existim! buildinl!s, excent for water and wastewater imoact fee assessments which are exemvt from this orozram, 771is orozram will officially sunset two years (i"om the date of adoTJ!ion unless continued by a resolution of the Board of County Commissioners orior to this date, a, Develooment is orooosed within a lawfidly existinl! buildinz which has had a Certificate of Occuoancy issued fi)r at least 5 years or/or to the commencement of this orozram, [moact fees fi:Jr the existinz buildinl! must have been paid the then apolicable imoact fees at time of construction; and b, Provosed deyelooment is solely within the existin? buildinz and does not include the addition of any new square footaze, c, Demolition and reconstruction oroiects are not elizible for this nrOf!ram. FISCAL IMPACT: If the Board of County Commissioners elects to implement this Program, the fiscal impact to the County would be the loss of this prospective income to the impact fee trust funds for the change of use where there is a net increase in use, As described above, this amount ranges from approximately an additional $11-$57 per square foot, excluding any applicable water and sewer impact fees, This assessment for the change of use is in addition to the impact fees that were paid when the building was Agenda Item No, 106 February 24, 2009 Page 4 of 7 originally constructed. It should be noted, however, that the majority of the customer inquiries related to changes of use that have been handled by staff over the past year have resulted in the prospective tenant secking out tenant spaces in which the impact fees have been paid for a use similar to the type they are proposing, and therefore the payment of additional impact fees is not required, or the tenant has elected not to move forward with the proposed use, Based on this trend, the fiscal impact for implementing this Program, except for Water and Sewer Impact Fees, is minimal. Related to Water and Sewer Impact Fees, The County Attorney's Office has previously opined that Water and Sewer Impact Fees should be precluded from unfunded waivers, deferrals, exemptions, etc, due to the nature and limitations of the funding sources available to the Collier County Water and Sewer District (District), In order for the District to remove the requirement to assess impact fees, the revenue loss must be covered by the rate payers within the District, as the District does not receive additional ad valorem funding, This policy creates a disproportionate burden on the rate payers of the District. Based on these circumstances, staff recommends that the Board exempt the District from participation in the proposed "Impact Fee Program for Existing Commercial Redevelopment." GROWTH MANAGEMENT IMPACT: Impact Fees generate funds to be expended for capital improvements to public facilities necessitated by growth which is consistent with Policy 2 of the Capital Improvement Element (CIE) of the Collier County Growth Management Plan (GMP), which states: "Future development will bear a proportionate cost offacility improvements necessitated by growth," Although the proposed Program limits the additional impact fees that will be assessed for changes of use, despite the intensification of use and demand on public facilities, this type of program for redevelopment is consistent with Policy 3.12 of the Economic Element of the GMP which states: "Collier County, in coordination v.ith other appropriate entities, will support the establishment and retentioll of small businesses throughout the County, .. Additionally, this proposal 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 inspects the proposed business location to ensure that the site provides the required number of parking spaces and meets the minimum landscape code requirements, 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, Agenda Item No, 1 DB February 24, 2009 Page 5 of 7 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 CONSIDERA nONS: The County Attorney worked with statf in the design of this proposal, which is legally suffIcient for Board action, This is a regular item requiring simple majority vote, -JAK RECOMMENDATION: Recommendation that the Board of County Commissioners provide direction to the County Attorney and the County Manager, or his designee, related to the option to change the requirements for the assessment of impact fees for changes of use in existing buildings and in accordance with that guidance, direct that the County Attorney and the County Manager, or his designee, prepare the necessary amendments to Chapter 74 of the Collier County Code of Laws and Ordinances (The Collier County Consolidated Impact Fee Ordinance) for consideration by the Board of County Commissioners at a future regular meeting, Prepared by: Amy Patterson, Impact Fee and Economic Development Manager Business Management and Budget OffIce, CDES Item Number: Item Summary: Meeting Date: Page 1 of2 Agenda Item No, 106 February 24, 2009 Page 6 of7 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS 10B This item to be heard at 10:30 a.m. Recommendation that the Board of County Commissioners provide direction to the County Attorney and the County Manager. or his designee, related to the option to change the requirements for the assessment of impact fees for changes of use In existing buildings. (Amy Patterson, Impact Fee and Economic Development Manager, Business Management and Budget Office, CDES) 2/24/2009900,00 AM Prepared By Amy Patterson Community Development & Environmental Services Impact Fee Manager Date Financial Admin. & Housing 2/6/200910;53;37 AM Approved By Joseph K. Schmitt Community Development & Environmental Services Community Development & Environmental Services Adminstrator Date Community Development & Environmental Services Admin. 2/6/2009 1 :44 PM Approved By Nick Casaianguida Transportation Services MPO Director Date Transportation Planning 2/6/20093;06 PM Approved By Judy Puig Community Development & Environmental Services Operations Analyst Community Development & Environmental Services Admin. Date Approved By 2/6/20093:45 PM Norm E. Feder, AICP Transportation Services Transportation Division Administrator Date Transportation Services Admin. 2/9/2009 9:09 AM Approved By Thomas Wides Public Utilities Operations Director Public Utilities Operations Date 2/9/2009 11 :49 AM Approved By James W. Delany Public Utilities Public Utilities Administrator Date Public Utilities Administration 2/9/2009 12;22 PM Approved By Garrett Mullee Community Development & Environmental Services Financial Operations Manager Date Financial Admin. & Housing 2/9/2009 3:21 PM Approved By Jeff Klatzkow County Attorney Assistant County Attorney County Attorney Office Date 2/912009 4:07 PM Approved By file://C:IAgendaTestIExportl I 24-February%2024,%20200911 0, %20COUNTY%20MANAG.., 2/] 8/2009 Page 2 of2 Agenda Item No, 108 February 24,2009 Page 7 of 7 OMS Coordinator County Manager's Office OMS Coordinator Date Office of Management & Budget 2/10/20092:32 PM Approved By Mark Isackson County Manager's Office Budget Analyst Office of Management & Budget Date 2/17/200910:34 AM Approved By James V. Mudd County Manager Date Board of County Commissioners County Manager's Office 2/17/200912:59 PM file://C:\AgendaTest\Export\ 124-February%2024,%202009\ 1 O,%20COUNTYO/020MANAG.., 2/18/2009