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Agenda 03/24/2009 Item # 8A Agenda Item No, SA March 24, 2009 Page 1 of 9 EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners adopt an Ordinance amending the Collier County Consolidated Impact Fee Ordinance, which is Chapter 74 of the Collier County Code of Laws and Ordinances, by incorporating directed ehanges to the requirements for the assessment of impact fees for changes of use in existing buildings through the implcmentation of the "Impact Fee Program for Existing Commercial Redevelopment" OBJECTIVE: That the Board of County Commissioners (Board) adopt an Ordinance amending the Collier County Consolidated Impact Fee Ordinance, which is Chapter 74 of the Collier County Code of Laws and Ordinances (Code), by incorporating directed changes to the requirements for the assessment of impact fees for changes of use in existing buildings through the implementation of the "Impact Fee Program for Existing Commercial Redeve]opment." CONSIDERATIONS: On Decemher 3, 2008, during thc regular meeting of the Board of County Commissioncrs, 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. Thc current regulations are set forth in Section 74-20 I (c) of the Collier County Code of Laws and Ordinances (Code), which is the Collier County Consolidated Impact Fee Ordinance, which states: (c) Change o/size or use. Impact fees shall he imposed and calculated for net increase, alteration. expansion, or replacement 0/ a use or a huilding, or part of a building (including dwelling unit), and each accessory or non- accessory huilding, provided such net increase, alteration, expansion or replacement 0/ the use, building, or part thereof or therein, hy app(ving this chapter results in .' (I) a net increase in the number of dwelling units; (2) a net increase in the size or square /iiOtaRe 0/ a building; (3) a net increase in the size 0/ the use; or (4) intensification of the use as to constitute an expansion 0./ the same use category or result in a change to a higher impact .lee land use category; or (5) otherwise create additional demand or additional impacts on any o/Ihe puhlicjilCilities. Staff reviews and assesses impact fees for changes of use via the review of all applications for Zoning Celiificates/Business Tax Receipts and Development Orders (Building Pel111its, 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 detcrmined. 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. -- Agenda Item No, 8A March 24, 2009 Page 2 of g The impact fees are then calculated for the proposed new use. ]f 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. 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 ]ndustrial to General Office General Industrial to Retail Genera] Office to Medical Office Retail to Medical Office Retail to High Turnover Restaurant $11. 77 per sq uare foot $11 . ] 8 per square foot $27 ,60 per square foot $29.49 per square foot $57.52 pcr squarc foot Based on the direction of the Board, staff and the County Attorney developed the following Program for the Board's consideration. The scope of the Program 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 publicfacilities. " PrOl!ram: Impact Fee Program for Existing Commercia] Redevelopment Elil!ibilitv: Commercial buildings that have had a Celiificate of Occupancy for a minimum of 5 years. The building must have been pern1itted and paid the then applicable impact fees. Limitations: Program is limited to changes within existing commercial buildings, for example tcnant build-outs, tenant improvements, ctc. Additions to existing buildings and demolition/replacement of buildings will not be eligible for this Program. ADDlicable Tvpes ofImpact Fees: Applicable to all impact fees (excluding water-sewer) assessed for commercial changes of use, based on land lIse. This typically consists of Transportation, EMS, (Jovernment Buildings, Law Enforcement and Jail. These provisions will not apply to assessments for Water and Sewer Impact Fees. ""..., Agenda Item No, SA March 24, 2009 Page 3 of g 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. On February 24, 2009, during the discussion of item lOA, the Board directed the County Manager, or his designee, and the County Attorney to implement the Program as detailed above. In addition the Board directed that a status report be prcsented to the Board in one year, including detailed information on the participation in the Program and the fiscal impact on each of the affected impact fee trust funds. The directed changes have been incorporated into the attached ordinance amendment being presented for the Board's consideration. FISCAL IMP ACT: The tiscal impact related to the implementation of this Program is the loss of the 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 toot, excluding any applicable water and sewer impact fees. This assessment for thc change of use is in addition to the impact fees that were paid when the building was 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 seeking out tenant spaces in which the impact fees have been paid for a usc 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 movc forward with the proposed use. Based on this trend, the fiscal impact for implemcnting this Program, except for Water and Sewer Impact Fees, is minimal. GROWTH MANAGEMENT IMPACT: Impact Fees generate funds to be expended for capital improvements to public facil ities 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 of facility 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 rcdevelopmcnt is consistent with Policy 3.12 of the Economic Element of the GMP which statcs: "Collier COUl1ly, in coordination with other appropriate entities, will support the establishment and retention oj'small businesses throughout the County. " Additionally, this Program 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 DepaJiment and the subsequent issuing of a Business Tax Receipt from the Co Ilier County Tax Co Ilector. Staff, through issuing the Agenda Item No. SA March 24, 2009 Page40fg 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. I l' 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. 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 Grov,cth 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 CONSIDERATIONS: The County Attorney worked with staff in the drafting of this Ordinance, 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 adopt an Ordinance amending thc Collier County Consolidated Impact Fee Ordinance, which is Chapter 74 of the Collier County Code of Laws and Ordinances, by incorporating directed changes to the requirements for the assessment of impact fees for changes of use in existing buildings through the implementation of the "Impact Fee Program for Existing Commercial Redevelopment." Prepared by: Amy Patterson, Impact Fee and Economic Development Manager Business Management and Budget Office, CDES Item Number: Item Summary: Meeting Date: Page] of 1 Agenda Item No. SA March 24, 2009 Page 5 of g COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS 8A Recommendation that the Board of County Commissioners adopt an Ordinance amending the Collier County Consolidated Impact Fee Ordinance. which is Chapter 74 of the Collier County Code of Laws and Ordinances, by incorporating directed changes to the requirements for the assessment of impact fees for changes of use in existing buildings thmugh the implementation of the Impact Fee Program for Existing Commercial Redevelopment 3/24/20099:0000 AM Prepared By Amy Patterson Community Development & Environmental Services Impact Fee Manager Date A pproved By Financial Admin. & Housing 3/9/2009 1U8:33 AM ~!udy Puig Community Development & Environmental Services Operations Analyst Community Development & Environmental Services Admin. Date 3/9/20094:41 PM Approved By Jeff Klatzkow County Attorney Assistant County Attorney Date County Attorney Office 3/11/20094:42 PM Approved By Joseph K. Schmitt Community Development & Environmental Services Community Development & Environmental Services Adminstrator Date Community Development & Environmental Services Admin. 3/11/2009 5:02 PM A pproved By OMS Coordinator County Manager's Office OMS Coordinator Date Office of Management & Budget 3/12/2009 2:28 PM Approved By Mark Isackson County Manager's Office Budget Analyst Date Office of Management & Budget 3113/2009 3:50 PM A pproved By James V. Mudd Board of County Commissioners County Manager Date County Manager's Office 3/17120098:46 AM Agenda Item No, 8A March 24, 2009 Page 6 of g ORDINANCE NO. 2009- AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AMENDING CHAPTER 74 OF THE COLLIER COUNTY CODE OF LAWS AND ORDINANCES, THAT ORDINANCE BEING THE COLLIER COUNTY CONSOLIDATED IMPACT FEE ORDINANCE, NO. 2001-13, AS AMENDED, PROVIDING FOR CHANGES TO THE REQUIREMENTS FOR THE ASSESSMENT OF IMPACT FEES FOR CHANGES OF USE IN EXISTING BUILDINGS THROUGH THE IMPLEMENTATION OF THE "IMPACT FEE PROGRAM FOR EXISTING COMMERCIAL REDEVELOPMENT"; ESTABLISHING A SUNSET DATE FOR THE PROGRAM UNLESS OFFICIALLY EXTENDED BY THE BOARD OF COUNTY COMMISSIONERS; PROVIDING FOR CONFLICT AND SEVERABILITY; PROVIDING FOR INCLUSION IN THE COLLIER COUNTY CODE OF LAWS AND ORDINANCES; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Collier County has used impact fees as a funding source for growth-related capital improvements for various facilities since 1978; and WHEREAS, on March 13, 2001, the Board of County Commissioners adopted Ordinance No. 200l-13, the Collier County Consolidated Impact Fee Ordinance, repealing and superseding all of the County's then existing impact fee regulations, and consolidating all of the County's impact fee regulations into that one Ordinance, codified in Chapter 74 of the Collier County Code of Laws and Ordinances (the "Code"); and WHEREAS, on February 24, 2009, the Board of County Commissioners directed that the provisions related to the requirements for the assessment of impact fees for "changes of use" in existing buildings be amended through the implementation of the "Impact Fee Program for Existing Commercial Redeve]opment;" and WHEREAS, the adoption of this Ordinance incorporates provisions that amend Section 74-201(c) of the Collier County Code of Laws and Ordinances related to change of size or use by establishing a program through which development shall not be assessed additional impact fees related to changes of use within an existing building, provided it meets the specified criteria; and WHEREAS, this Ordinance specifies that this program shall not apply to assessments for Water and Wastewater Impact Fees. Page 1 of 3 Underlined text is added; .struel~ tBrough text is deleted Agenda Item No, 8A March 24, 2009 Page 7 of g NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: SECTION ONE. Article II, Impact Fees, Section 74-201, Imposition of impact fees, subsection (c) of the Collier County Code of Laws and Ordinances is hereby amended to read as follows: Section 74-201. Imposition of impact fees. *** (c) Change of size or use. *** (5) Imvact Fee Prof!ram for Existinf! Commercial Redevelovment. Proposed developments which meet the criteria set forth below shall not be assessed additional impact fees related to changes of use within the existing buildings. exceDt for water and wastewater impact fee assessments which are exempt from this program. This program will officially sunset two years from the date of adoption unless continued bv a resolution of the Board of Count V Commissioners prior to this date. a. Development is proposed within a lawfully existing building which has had a Certificate of Occupancy issued for at least 5 years prior to the commencement of this program. ImDact fees for the existing building must have been Daid the then app1icab]e impact fees at time of construction: and b. Proposed development is solelv within the existing building and does not include the addition of any new square footagc. c. Dcmolition and reconstruction proiccts are not eligible for this program. *** SECTION TWO. CONFLICT AND SEVERABILITY. In the event this Ordinance conflicts with any other Ordinance of Collier County or othcr applicable law, the more restrictive shall apply. If any phrase or portion of this 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 portions, SECTION THREE. INCLUSION IN THE CODE OF LAWS AND ORDINANCES. The provisions of this Ordinance shall be made a part of the Code of Laws and Ordinances of Collier County, Florida. The sections of the Ordinance may be renumbered or re- Page 2 of3 Underlined text is added: Etru.elc through text is deleted Agenda Item No, SA March 24, 2009 Page S of g lettered and internal cross-references amended throughout 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 become effective upon filing with the Secretary of State. PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier County, Florida tills _ day of .2009. ATTEST Dwight E. Brock, Clerk BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA By: By: , Deputy Clerk DONNA FIALA. CHAIRMAN Approved as to form an e a S lency: Page 3 of 3 Underlined text is added; Struok tBrough text is deleted Agendf~g~ t.JSf gA March 24, 2009 Page g of g Patterson_a From: SheffieldMichael Sent: Thursday, March 12,200912:15 PM To: Patlerson_a Subject: FW: impact fees-change of use (vote no) From: jeb760@comcast.net (mailto:jeb760@comcast.net) Sent: Monday, March 09, 2009 10:25 PM To: ColettaJim Subject: Fwd: impact fees-change of use (vote no) Mr. Coletta, I strongly urge you to vote no for the change of use ordinance as I have stated in this email to my commissioner. ----- Forwarded Message ----- From: jeb760@comcast.net To: frankhalas@colliergov.net Sent: Monday, March 9, 200910:19:40 PM GMT -05:00 US/Canada Eastern Subject: impact fees-change of use (vote no) Dear Mr Halas: As a owner of commercial property in Collier County, I strongly urge you to vote no for the "change of use" ordinance at your 3/10/09 meeting. I designed my building for medical use and paid the higher impact fees in order to have a competitive advantage in a soft rental market such as we are presently facing. If you vote for this ordinance, you will eliminate my advantage, fuller reduce my property value and give others a property right they don't deserve and haven't paid for. I don't understand the commissions desire to approve this ordinance based on the testimony of a "real estate sales" special interest group. It is only logical to assume that there are adequate opportunities for medical tenants to find rental space in properly "licensed" space when the soft rental market has affected all uses across the board. It sounds to me like "feel good" legislation. If your objective is to promote jobs and meaningful growth that our local economy so desperately needs, I urge you to substantially lower impact fees which will at least maintain some equality by treating all commercial property owners the same. Jim Boughton 760 Clarendon Court Naples, FL 34109 3/1212009