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Agenda 05/27/2008 Item #17A Agenda Item No, 17A May 27, 2008 Page 1 of 7 ~, , EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners consider adopting an Ordinance to amend the Fee Payment Assistance Program to allow existing Collier County businesses that are expanding to include the wages of current employees in establishing their eligibility for the Fee Payment Assistance Program; the Ordinance has been prepared in accordance with the request by the Economic Development Council of Collier County and the prior direction of the Board of County Commissioners OBJECTIVE: That the Board of County Commissioners (Board) consider adopting an Ordinance to amend the Fee Payment Assistance Program to allow existing Collier County businesses that are expanding to include the wages of current employees in establishing their eligibility for the Fee Payment Assistance Program. The proposed Ordinance has been prepared in accordance with the request by the Economic Development Council of Collier County and the prior direction of the Board, ,-- CONSIDERATIONS: On November 18,2003, the Board adopted Ordinance No, 2003-61, as amended, which established a Fee Payment Assistance Program to mitigate the economic effects of increased impact fee rates, The Fee Payment Assistance Progran1 is intended to: (1) Provide a performance-based program offering financial relief for eligible targeted industry development or expansion projects in Collier County to mitigate the effects of rising impact fee rates; (2) Provide for the economic well being of Collier County residents by providing high- wage employment opportunities in Collier County; (3) Lessen the seasonal cycle of Collier County's economy; and (4) Encourage investment opportunities for new or existing companies thus increasing and diversifYing the county's tax base. Currently, in order for a business to be considered eligible for the Fee Payment Assistance Program it must meet one of the following specific eligibility requirements: I) Must be a targeted industry locating in Eastern Collier County; must create 10 new jobs of at least 115% of the Collier County's current average wage; or 2) Must be located within the boundaries of the Immokalee Rural Federal Enterprise Community and/or the Immokalee Community Redevelopment Area; must create a minimum of 5 new jobs at no less than 50% of the Collier County average wage; or 3) Must be a high impact project and a targeted industry locating in Western Collier County (outside of areas described above); must create 20 new jobs of at least 150% of the Collier County average wage. The wage requirements above are based strictly on the average wage of the new jobs, therefore, for existing businesses expanding in Collier County, the wages of the current employees are not included in the calculation to determine eligibility, This may be problematic for an expanding business that has a management structure in place and is expanding the company's general workforce. ,-- Agenda Item No, 17A May 27, 2008 Page 2 of 7 On April 23, 2008 during the discussions related to item 10D, the Board directed the County Manager (or his designee) and the County Attorney to prepare an Ordinance to amend the Fee Payment Assistance Program to allow the wages of the existing jobs and the newly created jobs to be utilized to calculate the average wage for the purpose of qualifying for the Program, This direction is consistent with the request by the Economic Development Council (EDC) of Collier County, Based on the Board's direction and guidance from EDC staff, the County Attorney's Office and staff have developed an Ordinance providing for the stipulated change which adds the following language to the Fee Payment Assistance Program provisions: "An existing targeted industry company expanding within Collier County may include the wages of the existing iobs and the newlv created iobs to calculate the average wage for the purpose of qualifying for the Fee Payment Assistance Program." This revision will increase the access to economic incentives for local businesses that are considering expanding or relocating in Collier County, FISCAL IMPACT: By adding another eligibility requirement option, additional companies may qualify for the incentive program, however, there is no direct fiscal impact related to this request. The total budget for the loca] Economic Incentive Programs for Fiscal Year 2008 is $1,147,]00 and this request does not constitute an increase to that amount. Additionally, the local Economic Incentive Programs are subject to the availability of funding, GROWTH MANAGEMENT IMPACT: This request is consistent with Objective 3 of the Economic Element of the Collier County Growth Management Plan which states: "Collier County will support programs which are designed to promote and encourage the recruitment of new industry as well as the expansion and retention of existing industries in order to diversify the County's economic base." LEGAL CONSIDERATIONS: The County Attorney participated in the preparation of this proposed Ordinance, which is legally sufficient for Board consideration and approvaL -JAK RECOMMENDATION: That the Board of County Commissioners (Board) adopt the Ordinance to amend the Fee Payment Assistance Program to allow existing Collier County businesses that are expanding to include the wages of current cmployees in establishing their eligibility for the Fee Payment Assistance Program. Prepared by: Amy Patterson, Impact Fee/Economic Development Manager Business Management and Budget Office, CDES Reviewed and Approved by: Tammie Nemecek, President & CEO Economic Development Council of Collier County Item Number: Item Summary: Meeting Date: COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS 17A Page 1 of2 Agenda Item No, 17A May 27, 2008 Page 3 of7 Recommendation that the Board of County Commissioners consider adopting an Ordinance to amend the Fee Payment Assistance Program to allow existing Collier County businesses that are expanding to Include the wages of current employees in establishing their eligibility for the Fee Payment Assistance Program: the Ordinance has been prepared in accordance with the request by the Economic Development Council of Collier County and the prior direction of the Board of County Commissioners 5/27/2008900.00 AM Prepared By Amy Patterson Community Development & Environmental Services Impact Fee Manager Financial Admin. & Housing Date Approved By 5/8/20081:14,30 PM Judy Puig Community Development & Environmental Services Operations Analyst Community Development & Environmental Services Admin. Date .-- Approved By 5/9/20089:16 AM Jeff Klatzkow County Attorney Assistant County Attorney County Attorney Office Date 5/9/2008 4:20 PM Approved By Joseph K. Schmitt Community Development & Environmental Services Community Development & Environmental Services Adminstrator Community Development & Environmental Services Admin. Date 5/14/20087:41 PM Approved By Garrett MuUee Community Development & Environmental Services Financial Operations Manager Financial Admin. & Housing Date 5/15/200811:01 AM Approved By OMS Coordinator County Manager's Office OMS Coordinator Office of Management & Budget Date 5/15/2008 3:07 PM Approved By Mark Isackson County Manager's Office Budget Analyst Office of Management & Budget Date 5/16/200811:41 AM ,___ Approved By Leo E. Ochs, Jr. Deputy County Manager Date file://C:\AgendaTest\Export\1 08-May%2027, %202008\ 17 .%20SUMMAR Y%20AGENDA \n. 5/21/2008 Page 2 of 2 Agenda Item No, 17 A May 27, 2008 Page 4 of 7 Board of County Commissioners County Manager's Office 5116/200811:48 AM file://C:\AgendaTest\Export\1 08-May%2027, %202008\17,%20SUMMAR Y%20AGENDA \,.. 5/21/2008 Agenda Item No. 17 A May 27,2008 Page 5 of 7 ORDINANCE NO. 2008 . AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AMENDING ORDINANCE NO, 2003-61, AS AMENDED, WHICH ESTABLISHED A FEE PAYMENT ASSISTANCE PROGRAM AND IS CODIFIED IN ARTICLE II OF CHAPTER 49 OF THE COLLIER COUNTY CODE OF LAWS AND ORDINANCES, IN ORDER TO ENLARGE PROGRAM ELIGIBILITY CRITERIA RELATING TO THOSE EXISTING TARGETED INDUSTRY BUSINESSES EXPANDING OR RELOCATING IN COLLIER COUNTY; PROVIDING FOR INCLUSION IN THE CODE OF LAWS AND ORDINANCES; PROVIDING FOR CONFLICT AND SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, on November 18, 2003, the Board of County Commissioners of Collier County, Florida adopted Ordinance No. 2003-61, as amended, which established a Fee Payment Assistance Program to mitigate the economic effects of increased impact fee rates; and WHEREAS, the Fee Payment Assistance Program is intended to: (1) provide a performance-based program offering financial relief for eligible targeted industry development or expansion projects in Collier County to mitigate the effects of rising impact fee rates; (2) provide for the economic well being of Collier County residents by providing highwwage /-', employment opportunities in Collier County; (3) lessen the seasonal cycle of Collier County's economy; and (4) encourage investment opportunities for new or existing companies thus increasing and diversifying the county's tax base; and WHEREAS, on April 22, 2008, the Board of County Commissioners, based on the recommendation of the Economic Development Council of Collier County, determined that those existing businesses expanding or relocating in Collier County should be able to '"include the wages of current employees in establishing their eligibility for the Fee Payment Assistance Program; and WHEREAS, this revision will increase the access to economic incentives for local businesses that are considering expanding or relocating in Collier County. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that SECTION ONE. Article II, Fee Payment Assistance Program, Section 49-25, Program eligibility criteria of the Collier County Code of Laws and Ordinances IS hereby amended to read as follows: ------ Page 1 of3 Underlined text is added; stmelc thfSHgh text is deleted. Section 49-25. Program eligibility criteria. To be considered eligible for approval under this program, a business or project must meet the criteria of one of the following categories: (1) Be located within Eastern Collier County and meet the following criteria: a. Type of business conducted is within the targeted industry list of the Economic Development Council of Collier County~ and b. Creates a minimum often new full-time jobs; and c. The newly created jobs pay an average wage of at least 115 percent of the County's current private-sector average wage. (2) Be located within the boundary of the ImmokaJee Rural Federal Enterprise Community and meet the following criteria: a. Create a minirmun of five new jobs; and b. The newly created jobs pay an average wage equal to or greater than 50% percent of the county's current private-sector average wage. (3) Be located within the boundary of the lmmokalee Community Redevelopment Area and meet the following criteria: a. Create a minimum of five new job; and b. The newly created jobs pay an average wage equal to or greater than 50 percent of the county's current private-sector average wage. (4) Be a high impact project and be located outside the enterprise community and Eastern Collier County and meet the following criteria: a. Type of business conducted is within the targeted industry list of the Economic Development Council of Collier County; and b. Creates a minimum of20 new full-time jobs; and c. The newly created jobs pay an average wage equal to or greater than 150 percent of the county's ClUTent private-sector average wage. d. Each application for program participation must have approval by the board of county commissioners. (5) An existing targeted industry companv expanding within Collier County may include the wages of the existing iobs and the newly created lobs to calculate the averae:e wage for the pUfODse of qualifvine for the Fee Pavm.ent Assistance Prolrrarn. SECTION TWO. CONFLICT AND SEVERABILITY. In the event this Ordinance conflicts with any other Ordinance of Collier County or any other 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 Ordinances may be re~numbered or Te-Iettered 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 be effective upon filing with the Florida Department of State. Page 2 on Underlined text is added; 5tru61~ thretlgfl text is deleted. Agenda Item No, 17 A May 27, 2008 Page 6 of7 PASSED AND DULY ADOPTED by lbe Board of County Commissioners of Collier County, Florida Ibis _ day of ,2008, ATTEST Dwight E. Brock, Clerk By: , Deputy Clerk ~ BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA By: TOM HENNING, CHAIRMAN Page 3 of3 Underlined text is added; strullit thfS\igh text is deleted. Agenda Item No. 17,1\. May 27,2008 Page 7 of 7