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Agenda 04/22-23/2008 Item #17I Agenda Item No. 171 April 22, 2008 Page 1 of 8 EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners consider adopting 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 the directed changes to the Charitable Organization Impact Fee Deferral Program OBJECTIVE: That the Board of County Commissioners (Board) consider adopting 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 the directed changes to the Charitable Organization Impact Fee Deferral Program. CONSIDERATIONS: On October 9,2001, the Board adopted Ordinance No. 2001-54, amending Chapter 74 of the Collier County Code of Laws and Ordinances (Code), to establish a program authorizing waivers from payments of impact fees for specified tax exempted, not-for-profit, charitable entities that provide specified services of substantial benefit to low income residents of Collier County (Charitable Organization Waiver Program), On June 28, 2005, the Board adopted Ordinance No. 2005-31, amending Section 74- 203(i) of the Code, to provide an increase in the ma"imum waiver for which an applicant is eligible as well as the annual budget for the program, These provisions allowed for an impact fee waiver for qualifying applicants of an amount not-to-exceed $100,000 per applicant. The cumulative total of waivers that may be granted per fiscal year is limited to $200,000. On April 10, 2007, the Board considered a request by Collier Health Services, Incorporated to participate in the Charitable Organization Waiver Program (Item lOA), During the discussion related to the item, the Board directed the County Manager (or his designee) in coordination with the County Attorney's Office to revise Section 74-203(i) of the Code, changing the waiver progranl to a deferral program for specified charitable organizations. The directed changes would allow the applicable impact fees to be deferred so long as the Charitable Entity utilizes the subject premises in the manner set forth in the application. Should the stated use end or should the Charitable Entity lose its status which qualified it for eligibility under the Charitable Organization Impact Fee Deferral Program, then the deferral period would end, and the full impact fees would be due and owing, - In accordance with the direction above, the Board adopted Ordinance No. 2007-57 on June 26, 2007, which incorporated the specified changes to the program. The Ordinance has a delayed effective date of January I, 2008, however, each Charitable Organization that applies for the program is advised that their applicable impact fees will be deferred, if approved by the Board, rather than waived, The agreement prepared by the County Agenda Item No. 171 April 22, 2008 Page 2 of 8 Attorney's Office also reflects a deferral of impact fees as well as the terms required to maintain the deferral. On September 25, 2007 during the consideration of item lOG, which was a request for a Charitable Organization Impact Fee Deferral by Fun Time Early Childhood Academy, Incorporated, the Board discussed developing a strategy for repayment of the deferrals. The Board specified that options developed for the repayment should not adversely effect the organization and directed the County Manager to have staff prepare alternatives for the Board's future consideration. This direction was further reiterated on October 9, 2007 during the discussions on item 6C related to the St Matthew's House Wolfe Apartments. During the regular Board of County Commissioners meeting on November 11, 2007, the Board directed that the proposed changes to the Charitable Organization Impact Fee Deferral Program be reviewed by the Productivity Committee and their recommendations be provided to the Board. The Productivity Committee assigned a sub-committee to review this matter which met on December 6, 2007. This issue was also discussed by the full Productivity Committee at their regular meeting on December 12, 2007. - On February 26, 2008, the Board directed the County Manager (or his designee) and the County Attorney to amend the provisions of the Charitable Organization Impact Fee Deferral Program to incorporate the following changes: 1. E1igibi1itv: The deferral program will continue with the original intent to provide services of substantial benefit to very low and low income residents of Collier County at no charge or at reasonable, reduced rates. However, religiously-affiliated organizations will be allowed to participate provided that the services are provided in a non-discriminatory manner. 2. Impact Fee Tvpes Eligible for Deferral: Impact fee deferrals will not be granted for Water or Sewer Impact Fees. 3. Repavment: A straight deferral will be provided to the qualifying entity for a specified period of time with the total impact fees due at the conclusion of the term, without interest A lien will be placed on the subject property, in the amount of the impact fees due, as security. 4. Residencv: Deferrals are available only to entities that solely provide services to citizens of the United States or legal aliens that pernlanent1y reside in the United States. - The directed changes have been incorporated into the attached Ordinance amendment being presented for the Board's consideration. With respect to the provisions for repayment (#3 above), staff and the County Attorney's Office are recommending a tenn of 10 years for the deferral, which is consistent with the term for the Community Workforce Housing Innovation Program (CWHIP) and Affordable Rental Deferral Program. Agenda Item ~~o. 171 April 22, 2008 Page 3 of 8 FISCAL IMPACT: The tisca1 impact of this program is the loss of this prospective income to the impact fee trust funds for the term of the deferral agreement. The Program is limited to a total of $200,000 in deferrals per fiscal year. GROWTH MANAGEMENT IMPACT: The proposed changes to the Charitable Organization Impact Fee Deferral Program are consistent with Objective 4 (Nonprofit and Civic Organizations and Local Groups/Programs) of the Economic Element of Collier County's Growth Management Plan which states: "Collier County will support the economic development goals, efforts and community involvement of nonprofit organizations, civic associations and local groups and programs." LEGAL CONSIDERA nONS: The proposed changes to the Charitable Organization Impact Fee Deferral Program are legally sufficient for Board consideration and approval. RECOMMENDATION: That the Board of County Commissioners consider adopting an Ordinance amending the Collier County Consolidated Impact Fee Ordinance, which is Chapter 74 of the Collier County C.ode of Laws and Ordinances, by incorporating the directed changes to the Charitable Organization Impact Fee Deferral Program. Prepared by: Amy Patterson, Impact Fee and Economic Development Manager Business Management and Budget Office, CDES Item Number: Item Summary: Meeting Date: Page 1 of 2 ,l"genda Item No. 171 April 22, 2008 Page 4 of 8 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS 171 Recommendation that the Board of County Commissioners consider adopting 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 the directed changes to the Charitable Organization Impact Fee Deferral Program. 4/22/200890000 AM Prepared By Amy Patterson Community Development & Environmental Services Impact Fee Manager Date Financial Admin. & Housing 3/28/200811 :08:02 AM Approved By Jeff Klatzkow County Attorney Assistant County Attorney Date County Attorney Office 3/31/200810:18 AM Approved By Judy Puig Community Development & Environmental Services Operations Analyst Community Development & Environmental Services Admin. Date 4/1/20081 :52 PM Approved By James W. Delony Public Utilities Public Utilities Administrator Date Public Utilities Administration 4/2/200810:21 AM Approved By Joseph K. Schmitt Community Development & Environmental Services Community Development & Environmental Services Adminstrator Date Community Development & Environmental Services Admin. 4/9120088:43 PM Approved By Garrett Mullee Community Development & Environmental Services Financial Operations Manager Date Financial Admin. & Housing 4/10/20088:02 AM Approved By OMS Coordinator County Manager's Office OMS Coordinator Date Office. of Management & Budget 4110/200610:27 AM Approved By John A, Yonkosky County Manager's Office Director of the Office of Management Date Office of Management & Budget 4iiOt2008 11:29 AM file:IIC:\AQ'endaTest\Fxnort\ 1 05-Anril%20n. o;,,20?OOR\ 17.%20S1IMMA RY%?OAGFNDA 411/ii?OOR Page 2 of 2 Agenda Item No. 171 April 22. 2008 Page 5 of 8 Approved By Susan Usher Senior Management/Budget Analyst Date County Manager's Office Office of Management & Budget 411112008 7:51 AM Approved By Leo E. Ochs, Jr. Board of County Commissioners Deputy County Manager Date County Manager's Office 4/13/20089:20 PM fi1e://C:IAgendaTestIFxnm-tl 1 O~-Anril%:W77.%)0700RI 17%70S1 IMM AR Y%70AnFNnA 4111i1700R Agenda Item No. 171 April 22, 2008 Page 6 of 8 ORDINANCE NO. 2008- AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AMENDING ORDINANCE NO. 2001-13, AS AMENDED, KNOWN AS THE COLLIER COUNTY CONSOLIDATED IMPACT FEE ORDINANCE; PROVIDING FOR CHANGES TO THE PROVISIONS RELATED TO IMPACT FEE DEFERRALS FOR SPECIFIED CHARITABLE ORGANIZATIONS; 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 C01.mty 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. 2001-13, 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 26, 2008 the Board of County Commissioners directed that the provisions related to applicability, eligibility and repayment of impact fee deferrals for specified charitable organizations be amended; and WHEREAS, the adoption of this Ordinance incorporates provisions that amend Section 74-203(i) of the CoIlier County Code of Laws and Ordinances related to charitable organizations by providing impact fee deferrals to qualified entities that (l) provide services to indigent and low income residents of Collier County; (2) provide for a deferral tenn of 10 years, Wlless otherwise extended by the Board of County Commissioners; (3) provide services to only citizens and legal residents of the United States; and (4) this Ordinance specifies the types of impact fees that are not eligible for deferral. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: SECTION ONE. Article II, Impact Fees, Section 74-203, Use of funds, subsection (i) of the Collier County Code of Laws and Ordinances is hereby amended to read as follows: Secrion 74-203, Use of funds. ... (i) Impact fee deferrals available to charitable organizations and charitable trusts. These impact fees deferrals are available only to eligible te not-for-profit, charitable entities as specified herein. The cumulative total of all not-far-profit deferrals in each of the county's fiscal years shall not exceed $200,000.00. If the tetal amal-ffit sf i~aet fees aefeFfea f1li:f'SI:lB:Bt ta these fife .isisES m a f1seal year is less than $:2G-G-,999.Q9 (E1r is less thae tfie RigBer tetal m the funeling aeeelffit fer that fisea! year I.=H~eaH6e sf prier eash earrying fe:r:;;ar-a) seme at all af the sum sf mene) Flst ElefSFfea eaR he eameEl fSl'\.ard 8:Rel1:h.erehy be aaElea to the $299,999.99, 18 a maJdmum balaRee sf tSgg,OOO.gQ fundiflg fSf f:Re E~mt Fiseal year. Impact fees collected by the ~Iextisadded;~textisdelcll:d county for water. wastewater. educational facilities and fire impact fees shall not be deferred under these provisions. (I) Entities eligible for deferrals. These deferrals are available only to charitable, not- for-profit entities that provide services of substantial benefit to low income or very low income residents of the county at no charge or at reasonable, reduced rates, and no part of the net earnings of the entity shall inure to the benefit of any private shareholder or individual, WIg tHe emit)' €SHlfllies with at least eIle ef the fells'? in!;;: with croof of the entitv's not-for-croftt status and elil1:ibilitv established to the County's sole satisfaction. Deferrals are available onlv to entities that solelv orovide services to citizens of the United States or legal aliens that oermaTIcntl" reside in the United States. Proof of such must be established to the County's sole satisfaction. a. The eHtity is ao,.sbea "' ,.bseotieR 5Ql(C)(3) sf Chapter 1. ef the URitea ~tates IBteFBw Re',caue Ceee as a eelflemtisR, a 6SRlffiWlity eassi, a fund, er a fl::JUHaatisB, srgElBizea and epemtea tm:.elLisi :el) f-€lr eharit&l31e J9llFJ18ses, Elr far flFS"SBtisB sf 6F1.:1elty t8 ehile.Ft'fl, Me. is then 0neffil3t Ham tau.sa lifideF Seeaen 59] (.) there",; sr b. The entit:. is aesoriBea iH S..sseetieHS 59](C)(1l(,'.) ena (Ill sfCB'p"'r 2. sf the l_TAitea Statss Internal Revenue Ceae as either a Civ-ie Lt!aglle SF 8B erganiz:atien Bat srgan-ize3 fer flraR!, is apemtea sneiltsi"ely fsr the JlFElmeti88 ef saeia! ..,eifert!, aml is e,.emflt ITem tW(8S \::lRaer SeetieB 501(19.), therein; er e. The eHut)' is aeseribea in S..sseetieH 591(C)(29) efGhepter 2. efthe Unitea States IBtemaJ RcvEloue Cede as aR ergan.iwisn or trust, the eJEelusiv8 funetien €If .<,hieh is t6 r8M flart sf a EJ:1:laliaee1 grsl:.ij9 legal servises fllaR aF J31ans ?.itkia the meEl:fJffig efSsf:1tisR 129 as rsfer8B88BYll:Jrein; af a. The emit:.' is a Respite!, a ees}3erati"'e BesfJitai serviee erganizatieFl, a msliieal researeh organicatien, sr similar arganii'iltisR BBaer an:; flFOyisisR mithiR (ar refereneea) iR SeetisB 501 sf Chapter 26 sf the T_1Bited States Intema] RevsBue Celle aRB the 8Btitj' is e;;emflt from feaeral meeme t&JEati8B; sr e. The eRtitj' is tHeft 8J(elDf't frem Fleriaa'g ar.H1:Jal ana ReAfeel:lIt'ing intaRgisle t!:m8S flHfsuantte f.S, S 199.185 (1), as a "CharitaBle TRist" ana at le85t ~5 f1ereeRt of it] ineeme is paid to ORe or more sf the above listea fsaeral. tw'r snempt entities, (2) Amount of deferrals available to applicants. Subject to not exceeding the amount of impact fees paid (or to be paid) by the applicant to the county, the applicant may request deferrals of all impact fees that are eligible for deferral under these provisions, but no applicant shall be granted more than $100,000.00, sr 59 pereent ofilia av.'ailable fl:lHaing, whish e":er is less, of not-for. profit deferrals. Aqenda Item No. 171 " April 22. 2008 Page 7 of 8 ... (5) Not.for~profit deferrals are discretionary and the board's decisions are fmal. Imoact fee deferrals r!:ranted under this nrol!ram will be secured as a lien on the subiect orooertv for the tenn of the deferral. The tenn of the deferral shall in all events be due and oavable not later than ten vears after the execution of the imnact fee deferral alrrccment bv the county. unlcss otherwise extended bv the Board of County Commissioners, Such lJ.!lJ!...r1inedtextisaddcd;~o\lgAte:l.1isdclelcd Page2of3 ,<".^".....,-,...~--..."'"""--""...."-"'-".,.~~._-, fees shall be accelerated and automaticallv be due and Davable nrier to that time oenod if there is any breach of the subiect imoact fee deferral aQ;reement bv the non-county nartv. At the conclusion of the deferral period the subject impact fees for the then-current use are due and payable and upon payment in full of the impact fees the lien will then be satisfied. Agenda Item No. 171 April 22, 2008 Page 8 of 8 ... SECTION TWO. 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 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~ lettered and internal cross-references amended throughout to accomplish such, and the word "ordinance" may be changed to "section," "article," aT 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 this _ day of , 2008. ATTEST Dwight E. Brock, Clerk BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA By: By: , Deputy Clerk TOM HENNING, Chairman Appj,oved and gal .,.--- llnderlinedtext is added; Stm,klhrallgfl text is deleted Page3of3