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Agenda 03/28/2023 Item #11F (Workforce Housing Land Acquisition portion of the voter-approved Local Government Infrastructure One-Cent Sales Surtax)03/28/2023 EXECUTIVE SUMMARY Recommendation to adopt a policy for the use of the Workforce Housing Land Acquisition portion of the voter-approved Local Government Infrastructure One-Cent Sales Surtax. OBJECTIVE: To provide housing that is affordable in Collier County and to further the goals set forth in the Housing Element of the Growth Management Plan by adopting a policy to guide future workforce housing land acquisitions using the Collier County Infrastructure One-Cent Surtax CONSIDERATIONS: On November 6, 2018, the voters of Collier County approved a one percent (1%) local government infrastructure surtax upon all taxable transactions occurring within the County. Twenty million dollars ($20,000,000) of this surtax is earmarked to be used for land acquisition in accordance with Section 212.055(2), Florida Statutes. Growth Management Community Development leadership staff developed the attached proposed policy for consideration by the Board to guide future land acquisitions using these funds for the development of future workforce housing projects. The Affordable Housing Advisory Committee (AHAC) has reviewed the proposed policy, whereas their specially formed subcommittee regarding this matter provided unanimous support. The full AHAC supported this approach and recommended including development team and project financing criteria within the policy to ensure that property is not only acquired but is developed in the most expedient, efficient, and cost-effective manner. These suggestions have been incorporated into the recommended policy. Approving this policy will enable staff to bring the policy to the Infrastructure Surtax Citizens Oversight Committee (ISCOC) for consideration and then to seek properties for acquisition in accordance with the voter- approved initiative. FISCAL IMPACT: Approval of this policy has no fiscal impact on the General Fund. Future property acquisitions will be brought to the ISCOC and the Board of County Commissioners for approval. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney. Irrespective of any policy, the Board may utilize funds generated by the infrastructure sales tax to purchase land for affordable housing provided that it complies with the minimum statutory requirements: Florida Statutes Sec. 212.055 (2) LOCAL GOVERNMENT INFRASTRUCTURE SURTAX. (e) Any land acquisition expenditure for a residential housing project in which at least 30 percent of the units are affordable to individuals or families whose total annual household income does not exceed 120 percent of the area median income adjusted for household size, if the land is owned by a local government or by a special district that enters into a written agreement with the local government to provide such housing. The local government or special district may enter into a ground lease with a public or private person or entity for nominal or other consideration for the construction of the residential housing project on land acquired pursuant to this sub-subparagraph. Note that the Board may waive, in whole or in part, any portion of this proposed policy when reviewing a proposed acquisition of land for affordable housing. With that noted, this item is approved as to form and legality, and requires simple majority vote. -JAK GROWTH MANAGEMENT IMPACT: The acquisition of property for affordable housing development furthers the Goals, Objectives, and Policies of the Growth Management Plan and specifically the Housing Element. RECOMMENDATION: Recommendation to adopt a policy for the use of the Workforce Housing portion of the 11.F Packet Pg. 404 03/28/2023 voter-approved Local Government Infrastructure One-Cent Sales Surtax. Prepared by: Cormac Giblin, Interim Director, Economic Development and Housing Division Jaime Cook, Director, Development Review Mike Bosi, Director, Zoning Services James French, Department Head, Growth Management Community Development ATTACHMENT(S) 1. Land Aquisistion Policy Guidance 032123-1400 (DOCX) 2. Ordinance 2018-21 (PDF) 3. Suxtax Statute Summary (PDF) 11.F Packet Pg. 405 03/28/2023 COLLIER COUNTY Board of County Commissioners Item Number: 11.F Doc ID: 24959 Item Summary: Recommendation to adopt a policy for the use of the Workforce Housing Land Acquisition portion of the voter-approved Local Government Infrastructure One-Cent Sales Surtax. (Cormac Giblin, Interim Director, Economic Development and Housing Division) Meeting Date: 03/28/2023 Prepared by: Title: Operations Analyst – Planning Commission Name: Diane Lynch 03/14/2023 11:27 AM Submitted by: Title: Department Head - GMD – Growth Management Department Name: James C French 03/14/2023 11:27 AM Approved By: Review: Growth Management Operations & Regulatory Management James C French Additional Reviewer Skipped 03/14/2023 2:47 PM Facilities Management James C French Additional Reviewer Skipped 03/14/2023 2:47 PM Growth Management Development Review Cormac Giblin Additional Reviewer Completed 03/20/2023 11:15 AM Facilities Management John McCormick Additional Reviewer Completed 03/21/2023 8:23 AM Zoning Mike Bosi Additional Reviewer Completed 03/21/2023 9:04 AM Growth Management Department Diane Lynch Growth Management Department Completed 03/21/2023 11:42 AM Growth Management Department Jaime Cook Additional Reviewer Completed 03/21/2023 11:51 AM Growth Management Department James C French Growth Management Completed 03/21/2023 2:20 PM County Attorney's Office Derek D. Perry Level 2 Attorney Review Completed 03/21/2023 5:25 PM Corporate Compliance and Continuous Improvement Megan Gaillard Additional Reviewer Completed 03/21/2023 6:40 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 03/22/2023 8:40 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 03/22/2023 9:43 AM Office of Management and Budget Susan Usher Additional Reviewer Completed 03/22/2023 10:35 AM Community & Human Services Maggie Lopez Additional Reviewer Completed 03/22/2023 2:31 PM County Manager's Office Ed Finn CMO Completed 03/22/2023 3:45 PM County Manager's Office Amy Patterson Level 4 County Manager Review Completed 03/22/2023 3:48 PM Board of County Commissioners Geoffrey Willig Meeting Pending 03/28/2023 9:00 AM 11.F Packet Pg. 406 Page 1 of 4 DRAFT WORKFORCE HOUSING LAND ACQUISITION POLICY SURTAX FUNDING EVALUATION CRITERIA For the development of a shortlist, this evaluation criterion will be utilized by a COUNTY Selection Committee to score each proposal. Proposers are encouraged to keep their submittals concise and to include a minimum of marketing materials. Proposals must address the following criteria: Evaluation Criteria Maximum Points (point allocations subject to change) 1. Cover Letter / Management Summary 0 Points 2. Property and Business Plan 45 Points 3. Financing & Cost of Services to the County 20 Points 4. Experience and Capacity of the Firm 15 Points 5. Specialized Expertise of Team Members 10 Points 6. Certified Minority Business Enterprise 5 Points 7. Local Vendor Preference 5 Points TOTAL POSSIBLE POINTS 100 Points Each criterion and methodology for scoring is further described below: EVALUATION CRITERIA NO. 1: COVER LETTER/MANAGEMENT SUMMARY (0 Total Points) Provide a cover letter, signed by an authorized officer of the firm, indicating the underlying philosophy of the firm in providing the services stated herein. Include the name(s), telephone number(s), and email(s) of the authorized contact person(s) concerning the proposal. EVALUATION CRITERIA NO. 2: PROPERTY AND BUSINESS PLAN (45 Total Points) In this tab, including but not limited to: 1. Project Scope The proposal should provide a written description of the project, accompanied by a conceptual site plan showing proposed building(s), parking areas, and how the development will interface with the surrounding areas. In addition, the proposed unit type (single family, multi-family, rental, or for purchase) and dwelling size (1, 2, 3, or more bedrooms) should be provided along with any planned amenities. 2. Community Impact The proposal must describe how the proposed project fits with the adjacent parcels, meets the intent of the Board of County Commissioners expectations, as detailed in this ITN, and would generally benefit the community, surrounding areas, and the County as a whole. Include as many conceptual visuals as possible such as site plans, renderings, and elevations, as applicable. In addition, please provide a description of how the proposed project meets the housing affordability needs per the Collier County Community Housing Plan. 11.F.a Packet Pg. 407 Attachment: Land Aquisistion Policy Guidance 032123-1400 (24959 : Surtax Workforce Housing Land Acquisition Policy) Page 2 of 4 3. Zoning The proposal must identify if the property’s zoning or a specific rezoning will be required to assist in the development of the proposal. If applicable, identify if the rezoning will require a comprehensive plan amendment or other special zoning relief. Be as specific as possible and provide documentation as needed to substantiate the request. Identify the timing of zoning and if the property should be zoned prior to the project. 4. Timeline The proposal must clearly identify approximate milestones that will be included in the land acquisition and development agreement such as the due diligence period, zoning process, if required, site development, building permits, construction, and through to the Certificate of Occupancy. 5. Site-Specific Criteria Upon approval of moving forward with this ITN the Board of County Commissioners agreed the following criteria should be mandated in the development of the property. In preparation of this proposal, it is important the following criteria are included for consideration: x Quantify desired density. The BCC is seeking proposals that will provide a moderate to high density of units. x Identify all dwelling types and if more than one type is proposed provide unit type ratios. x Define project set-asides of more than 10% for seniors, veterans, and/or special needs populations. x Define the targeted income mix proposed and how it correlates with the Community Housing Plan. x A preference that 100% of the units built be affordable and not at market rate (subject to change based on Board approval). x Target greatest units and income needs (currently rental housing at the lower income levels). x Cost of Property: Must not exceed the appraised value. x Disaster Evacuation Zone: Greater Consideration if NOT in Zone A, lesser consideration if in Zone A. x Utilities: Greater Consideration if utilities are available, lesser consideration if not available. x Wetlands: Must be less than 20% wetlands, with greater consideration for lower percentages. x Environmental: Must pass Phase I Standards, with greater consideration if passes Phase II standards as well. x Transportation: Greater Consideration if on an Arterial Road, lesser consideration on a Collector Road. x Shovel Ready: Greater consideration for fully zoned properties. x Density: Greater consideration for higher densities, lesser consideration for lower densities. x Proximity/Locational: Greater consideration closer to schools, Transit Stops, and Activity Centers. x Topography: Greater consideration for flood zones (AH and X). Lower consideration will be given to AE Zone properties (an area inundated by 1% annual chance flooding with velocity hazard (wave action) for which the Base Flood Elevation (BFE) has been 11.F.a Packet Pg. 408 Attachment: Land Aquisistion Policy Guidance 032123-1400 (24959 : Surtax Workforce Housing Land Acquisition Policy) Page 3 of 4 determined) and properties in a VE Zone (where wave heights are expected to be 3 feet or more for which the BFE has been determined) will be eliminated from any consideration. 6. Any Additional Information Include other relevant information about the project that has not been addressed in the previous questions that the proposer would like the present to the Board in support of the proposal. The intent of this phase of the screening process is to identify a project that a majority of the Board can support moving forward to a detailed purchase and development agreement. Should your proposal be selected, the purchase and development agreement will incorporate specific milestones in the development process. The Board’s acceptance of a proposal shall not constitute approval of future zoning if needed for the project to be developed. EVALUATION CRITERIA NO. 3: FINANCING & COST OF SERVICES TO THE COUNTY (20 Total Points) In this tab, including but not limited to: 1. Financing The proposal must provide a general financing plan. The proposal must identify if the project will be a straight purchase (if so, what is the purchase price?), partial purchase, require financing (if so, is the expectation that the County defer the purchase price until the completion of construction and/or contribute to the financing package?), or any other potential financing configuration needed for the project. In addition, the Financing information provided should include at the minimum the following: x Per unit construction costs x Proformas for rental and proposed rates (if applicable) x Per unit market costs and sales price (if applicable) x Detailed soft funding incentives required from the County x Proposed funding sources with contingencies x Address any potential Land Trust contribution (if applicable) x Detailed affordability restrictions The proposer should submit a financing plan that demonstrates the proposer’s financial ability to successfully purchase and complete the development of the parcel. Limited pro-forma would be acceptable based on the conceptual plan submitted for review. 2. Total Project Value Include an approximate construction value and ending taxable value. Please state if your entity holds tax-exempt status or if the project is eligible for tax exemption. Also, include a detailed description of how the project is committed long-term to address housing affordability in Collier County. EVALUATION CRITERIA NO. 4: EXPERIENCE AND CAPACITY OF THE TEAM (15 Total Points) In this tab, including but not limited to: 11.F.a Packet Pg. 409 Attachment: Land Aquisistion Policy Guidance 032123-1400 (24959 : Surtax Workforce Housing Land Acquisition Policy) Page 4 of 4 x Provide information that documents your firm’s qualifications to produce the required deliverables, including abilities, capacity, skill, financial strength, and the number of years of experience in providing the required services. x Describe the various team members’ successful experience in working with one another on previous projects. x Teams including a not-for-profit partner will be given greater consideration. The County requires that the vendor submits no fewer than five (5) completed reference forms from clients from the past ten (10) years whose projects are of a similar nature to this solicitation as a part of their proposal. Provide information on the projects completed by the vendor that best represent projects of similar size, scope, and complexity of this project using the Reference Form provided. Vendors may include two (2) additional pages for each project to illustrate aspects of the completed project that provides the information to assess the experience of the Proposer on relevant project work. EVALUATION CRITERIA NO. 5: SPECIALIZED EXPERTISE OF TEAM MEMBERS (10 Total Points) The proposal must include a description of the firm/team, including locations of offices, the person responsible for contracting services, and the location of the contracting authority. Include a list of the qualified professional team members and qualifications of associates proposed to perform and/or assist with the work to oversee the project. Identify the names and provide resumes of proposed management members that will supervise the project, including an organizational flow chart, if available, showing the working relationship of the management structure. The proposal shall submit a portfolio of projects of similar size and scope completed and or managed by the firm or team. EVALUATION CRITERIA NO. 6: CERTIFIED MINORITY BUSINESS ENTERPRISE (5 Total Points) Submit certification with the Florida Department of Management Service, Office of Supplier Diversity as a Certified Minority Business Enterprise. EVALUATION CRITERIA NO. 7: LOCAL VENDOR PREFERENCE (5 Total Points) Local business is defined as the vendor having a current Business Tax Receipt issued by the Collier or Lee County Tax Collector prior to proposal submission to do business within Collier County, and that identifies the business with a permanent physical business address located within the limits of Collier or Lee County from which the vendor’s staff operates and performs business in an area zoned for the conduct of such business. The Board may waive, in whole or in part, any portion of this policy when reviewing a proposed acquisition of land for affordable housing 11.F.a Packet Pg. 410 Attachment: Land Aquisistion Policy Guidance 032123-1400 (24959 : Surtax Workforce Housing Land Acquisition Policy) 11.F.b Packet Pg. 411 Attachment: Ordinance 2018-21 (24959 : Surtax Workforce Housing Land Acquisition Policy) 11.F.b Packet Pg. 412 Attachment: Ordinance 2018-21 (24959 : Surtax Workforce Housing Land Acquisition Policy) 11.F.b Packet Pg. 413 Attachment: Ordinance 2018-21 (24959 : Surtax Workforce Housing Land Acquisition Policy) 11.F.b Packet Pg. 414 Attachment: Ordinance 2018-21 (24959 : Surtax Workforce Housing Land Acquisition Policy) 11.F.b Packet Pg. 415 Attachment: Ordinance 2018-21 (24959 : Surtax Workforce Housing Land Acquisition Policy) 11.F.b Packet Pg. 416 Attachment: Ordinance 2018-21 (24959 : Surtax Workforce Housing Land Acquisition Policy) 11.F.b Packet Pg. 417 Attachment: Ordinance 2018-21 (24959 : Surtax Workforce Housing Land Acquisition Policy) 11.F.b Packet Pg. 418 Attachment: Ordinance 2018-21 (24959 : Surtax Workforce Housing Land Acquisition Policy) 11.F.b Packet Pg. 419 Attachment: Ordinance 2018-21 (24959 : Surtax Workforce Housing Land Acquisition Policy) 11.F.b Packet Pg. 420 Attachment: Ordinance 2018-21 (24959 : Surtax Workforce Housing Land Acquisition Policy) 11.F.c Packet Pg. 421 Attachment: Suxtax Statute Summary (24959 : Surtax Workforce Housing Land Acquisition Policy) 11.F.c Packet Pg. 422 Attachment: Suxtax Statute Summary (24959 : Surtax Workforce Housing Land Acquisition Policy) 11.F.c Packet Pg. 423 Attachment: Suxtax Statute Summary (24959 : Surtax Workforce Housing Land Acquisition Policy) 11.F.c Packet Pg. 424 Attachment: Suxtax Statute Summary (24959 : Surtax Workforce Housing Land Acquisition Policy) 11.F.c Packet Pg. 425 Attachment: Suxtax Statute Summary (24959 : Surtax Workforce Housing Land Acquisition Policy)