Agenda 07/13/2021 Item #10A (Immokalee Impact Fee Installment Payment Pilot Program)07/13/2021
EXECUTIVE SUMMARY
Recommendation to extend the Immokalee Impact Fee Installment Payment Pilot Program, which
provides for installment payments of impact fees for new construction located within the
Immokalee Community Redevelopment Area, for one year and modify the payment terms and
related program fees in order to determine if such changes improve program participation.
OBJECTIVE: To extend the Immokalee Impact Fee Installment Payment Pilot Program (Program) for
an additional year and modify program p ayment terms and fees.
CONSIDERATIONS: On July 11, 2017, the Board adopted Ordinance No. 2017-34, which established
the Program for the Immokalee Community Redevelopment Area (CRA) with an effective date of
October 1, 2017.
The ordinance provides that as an alternative to paying impact fees in full as a prerequisite to the
issuance of a Certificate of Occupancy, a feepayer may pay their impact fees in installments rather than
a lump sum by entering into an impact fee installment payment program agreeme nt with Collier County
which provides that the installment payments shall be by special assessment levied as non -ad valorem
assessments against the subject property.
The intent of the Program is to determine whether allowing the payment of impact fees by an installment
program, as a voluntary alternative to paying the fees in a single, up -front payment, will have a positive
effect on both the costs of housing and economic growth. To prevent unintended consequences, the
Board requested the program be reviewed annually.
In year one, calendar year 2018, there were no program participants. In year two, calendar year 2019,
one owner applied and was approved for program participation for the construction of a new mobile
home. In calendar year 2020 there were no program participants, and there have not been any additional
applications received to date.
As provided by the Collier County Code of Laws and Ordinances (Code), prior to the third anniversary
of the Program (Program), in October of 2020, a report will be prepared and presented detailing what
effect, if any, this program has had on housing costs and economic development with a recommendation
on whether to amend, expand, or discontinue this pilot program. This report was prepared and provided
to the County Manager on September 21, 2020 with the following recommendation:
While participation has been limited, staff recommends that the Program be allowed to continue
for an additional year, due to the extraordinary circumstances created by COVID-19. This will
allow staff the opportunity to better analyze the performance of the Program and make
recommendations on any potential improvements to the accessibility and structure.
By way of this Executive Summary the following changes are requested and will be i ncorporated into
future Program Agreements, as applicable, if approved:
1. Extend the Program for an additional year to October 2022.
2. Extend the term of payments from 20 years to 30 years to allow for a longer payment period and
lower annual assessment for the applicant.
3. Continue with the indexed interest rate based on the LIBOR Rate (or its replacement) plus two
hundred (200) basis points (2.00%). The current LIBOR is 0.24%; therefore, the current Program
interest rate would be 2.24%, which is lower than the current national average 30-year fixed rate
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mortgage APR of 3.28%. The request is that Program interest be capped at 5% (maximum),
consistent with the interest rate utilized for the Countywide Impact Fee Deferral Program.
4. Eliminate the $500/$1,000 application fees for new residential and commercial development.
FISCAL IMPACT: Fiscal impacts, both positive and negative, are presently unknown; however, the
pilot program will continue to be tracked for future reports to the Board. Under this Program, impact fees
will be paid in full, over time.
Participation in this Program is limited to properties within the Immokalee CRA and Program activity has
not been notable to this point. However, in the event of a significant increase in Program a pplications,
staff will provide the Board an update on associated staffing needs as well as impacts on the respective
Impact Fee Trust Funds and capital projects.
GROWTH MANAGEMENT IMPACT: Objective 2 of the Capital Improvement Element (CIE) of the
Collier County Growth Management Plan (GMP) states: “Future development will bear a proportionate
cost of facility improvements necessitated by growth” which is accomplished, in part by the payment of
impact fees. The pilot program provides for the payment of impact fees in installments.
Additionally, Policy 1.9 of the Economic Element of the GMP provides: “Collier County, in response to
the current and projected needs of its residents, will encourage a diverse mix of housing types, sizes,
prices, and rents” and Objective 3 of the Economic Element 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.”
The continuing intent of the pilot program is to determine whether allowing the payment of impact fees
by an installment program, as a voluntary alternative to paying the fees in a single, up -front payment,
will have a positive effect on both the costs of housing and economic growth, and is consistent with the
goals and objectives of the Economic Element of the GMP as listed above.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, raises no legal
issues, and requires majority vote for approval. -JAK
RECOMMENDATION: To extend the Immokalee Impact Fee Installment Payment Pilot Program,
which provides for installment payments of impact fees for new construction located within the
Immokalee Community Redevelopment Area, for one year and modify the payments terms and related
program fees in order to determine if such changes improve program participation.
Prepared by: Commissioner William L. McDaniel, Jr., District 5
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COLLIER COUNTY
Board of County Commissioners
Item Number: 10.A
Doc ID: 17484
Item Summary: Recommendation to extend the Immokalee Impact Fee Installment Payment Pilot
Program, which provides for installment payments of impact fees for new construction located within the
Immokalee Community Redevelopment Area, for one year and modify the payment terms and related
program fees in order to determine if such changes improve program participation. (Commissioner
McDaniel's Request)
Meeting Date: 07/13/2021
Prepared by:
Title: Sr. Operations Analyst – County Manager's Office
Name: Geoffrey Willig
07/07/2021 11:19 AM
Submitted by:
Title: Division Director - IF, CPP & PM – County Manager's Office
Name: Amy Patterson
07/07/2021 11:19 AM
Approved By:
Review:
Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 07/07/2021 11:23 AM
Budget and Management Office Ed Finn Additional Reviewer Completed 07/07/2021 2:09 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 07/07/2021 3:02 PM
County Manager's Office Mark Isackson Level 4 County Manager Review Completed 07/07/2021 3:28 PM
Board of County Commissioners Geoffrey Willig Meeting Pending 07/13/2021 9:00 AM
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