Agenda 03/24/2009 Item #10G
Agenda Item No. 10G
March 24, 2009
Page 1 of 4
EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners (BCC) review various
alternatives regarding the US4I Consortium Developers Contribution Agreement (DCA)
proposal and provide direction to staff.
OBJECTIVE: To have the BCC review the various alternatives regarding the US4I
Consortium DCA proposal and direct staff to terminate the process until adequate funding is
available.
CONSIDERATION: The BCC approved the initial agreement on November 13, 2007. In this
fIrst agreement, the Developers had agreed to design, pennit, acquire land, construct and provide
construction engineering inspection for the complete intersection construction consistent with the
PD&E at the intersection ofUS4I1SR-CR95I and to construct a four lane road in the footprint of
a six lane road from this intersection heading east on US41 for approximately two miles, also
consistent with the PD&E study. The Developers were to post a bond for the full estimated
amount of $52,938,385. The initial bond was based on the estimate provided by the firm that
conducted the PD&E.
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Due to the economic and real estate downturn, the Consortium was unable to post the bond
within the 270 day period as required in the original DCA. On July 22, 2008, the BCC approved
an extension until October 3 I, 2008 to post the bond. The county and the Consortium worked
aggressively to identify funding and improvement options which would satisfy the traffic
demands at this intersection and the sUlTounding area based upon the study performed by Stanley
Consultants.
On November 18,2008 an amended and restated Consortium DCA was approved and provided
for an initial cash payment of $3,000,000 and surety for $19,522,003.65 totaling $22,522,003.65
in committed funds through 2013. These funds were to be used to proceed with a PD&E update,
design, right of way acquisition and construction of at-grade improvements at the intersection of
US4I and SR-CR95I. These improvements would acquire all the right of way and water
management for the ultimate grade separated improvements for the intersection ofUS4I and SR-
CR95 I.
The Developers were unable to meet the February 18, 2009 deadline for the complete funding of
the $3,000,000 cash payment and surety of $19,522,003.65. Several of the Developers were
unable to secure bonds or letters of credits due to the economic dO\\'Ilturn.
On February 24, 2009 the BCC terminated the amended and restated DCA due to non payment
and directed staff to work with the County Attorney to review a proposal provided by the
remaining developers to determine if a viable solution could be reached. Staff has considered the
following alternatives:
· Standard Developers Contribution Agreement
--- Staff reviewed a scaled back version of the second agreement which provided sufficient funds
for a study update, design and right of way acquisition. There were insufficient funds for
Agenda Item NO.1 OG
March 24, 2009
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construction. Without a construction phase guaranteed by the developers or the county, the
standard DCA process would not satisfy the requirements in our grow1h management plan or
land development code. Additionally, already vested development could challenge the DCA on
the basis that additional congestion would damage their ability to develop their projects. The
county would have to budget funds annually to this project to establish a committed construction
phase in order for this approach to be legally sufficient.
. Mid-Year AUIR update
Staff reviewed traffic counts and the trip bank to consider if capacity was available based on the
reduction of actual vehieles impacting the adjacent roadways. While there has been a reduction
in traffic and development has slowed, the adjacent roadways would still not have enough
available capacity when measured traffic and the trip bank are combined, to accommodate the
new impacts without a physical improvcment completed. It should be noted that a significant
amount of capacity is reserved in the trip bank for already approved development.
. Economic Emergency Ordinance
Staff considered the impacts of pursuing an ordinance that would suspend concurrency on case
by case basis. The ordinance would be based on the premise that there is a dire need to support
the local economy and that the BCC would review proposals on case by case basis under the
following criteria; that the affected roadway had a significant amount of banked trips as opposed
to actual trips which prohibited development. That the proposed development(s) were providing
a significant public benefit by accelerating an improvement through construction or a significant
phase leading to construction. That allowing the development(s) to move forward would not
jeopardize health, safety and welfare of the traveling public.
. Concurrency back log authority
Florida Statute 163.3 I 82 provides the ability for a local jurisdiction to establish a concurrency
backlog authority to address deficiencies. "Acting as the transportation concurrency backlog
authority within the authority's jurisdictional boundary, the governing body of a county or
municipality shall adopt and implement a plan to eliminate all identified transportation
concurrency backlogs within the authority's jurisdiction using funds provided pursuant to
subsection (5) and as otherwise provided pursuant to this section." Subsection (5) requires it to
be funded by levying taxes within the geographic boundary of the identified deficiency.
Without the county or the developer committing additional funds to a construction phase, the
funds proposed by the developers would not be sufficient to create a physical improvement.
FISCAL IMPACT: There is no fiscal impact associated with this Executive Summary.
GROWTH MANAGEMENT IMP ACT: There is no Growth Management Impact associated
with this Executive Summary.
LEGAL CONSIDERATIONS: The entire point of putting the consortium together was to
create sufficient road capacity to allow the development(s) to proceed. After considerable
review, the bottom line is that without actual construction taking place, or at least the relative
Agenda Item No. 10G
March 24, 2009
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certainty to commence construction at a later date, we can not bring the Board a legally sufficient
proposal. -JAK
RECOMMENDATION: That the Board of County Commissioners review the various staff
alternatives and direct staff to terminate the process until the Florida Department of
Transportation, the county, and/or the developers can provide sufficient funds to complete a
physical improvement.
Prepared By: Nick Casalanguida, Transportation Planning Director
Page 1 of I
Agenda Item No.1 OG
March 24, 2009
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COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
Item Summary:
10G
Recommendation that the Board of County Commissioners (BeG) review various alternatives
regarding the US41 Consortium Developers Contribution Agreement (DCA) proposal and
provide direction to staff.
Meeti n9 Date:
3/24/2009 9:0000 AM
A pproved By
Nick Casalanguida
MPQ Director
Date
Transportation Services
Transportation Planning
3/18/2009 1 :30 PM
Approved By
Jeff Klatzkow
Assistant County Attorney
Date
County Attorney
County Attorney Office
3/18/20092:13 PM
Approved By
Mark Isackson
Budget Analyst
Date
County Manager's Office
Office of Management & Budget
3/18/20094:14 PM
Approved By
Norm E. Feder, Alep
Transportation Division Administrator
Date
Transportation Services
Transportation Services Admin.
3/18/2009 4:20 PM
Approved By
James V. Mudd
County Manager
Date
Board of County
Commissioners
County Manager's Office
3/18/20094:48 PM