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Agenda 09/23/2025 Item #11C (Execute a Category A Grant Agreement for the City of Naples Stormwater Outfall Pipe Removal and Water Quality Project)9/23/2025 Item # 11.C ID# 2025-3476 Executive Summary Recommendation to approve and authorize the Chair to execute a Category A Grant Agreement for the City of Naples Stormwater Outfall Pipe Removal and Water Quality Project as a reimbursable grant not to exceed $10,000,000, authorize any necessary Budget Amendments, and make a finding that this project promotes tourism. OBJECTIVE: To approve a reimbursable grant agreement for the City of Naples Stormwater Outfall Pipe Removal and Water Quality Project not to exceed the amount of $10,000,000. CONSIDERATIONS: The Tourist Development Council (TDC) provides recommendations on the usage of tourist development tax funds, including Beach Renourishment Projects (Fund 1105). The City of Naples proposed using tourist development taxes for its stormwater outfall pipe removal and water quality project. This type of project may be defined as a “public facility” as set forth in Section 125.0104(5)(a)6, Fla. Stat. This provision requires that “an independent professional analysis, performed at the expense of the county tourist development council, demonstrates the positive impact of the infrastructure project on tourist-related businesses in the county” prior to the expenditure of tourist development tax funds. At the May 21, 2024, TDC meeting (Agenda item 7.A.2.) the TDC approved a tourist development tax grant funding request from the City of Naples for professional services provided by Adept Public Relations, LLC., to conduct a “Tourism Impact Study for the Naples Gulf of Mexico Beach Stormwater Outfall Pipe Removal and Water Quality (Stormwater) Project” in the amount of $44,879. At the July 9, 2024, BCC meeting (Agenda item 16.B.5), the Board approved the reimbursement request of $44,879 for the study by Adept Public Relations, LLC. The study notes that the Stormwater Project has perceived economic, environmental, and tourism benefits by improving water quality, aesthetics of the beaches, and the area's drainage basin. These elements are important to the businesses in the area that rely on tourism traffic, as well as the rental properties and hotels in the vicinity. This project complements other projects in the area that will attract and support tourism, such as the Miracle Mile Project, Naples Pier Renovation, and the Naples Beach Club, a Four Seasons Resort redevelopment. This study was completed independently of the County and the Tourist Development Council. The Coastal Advisory Committee, Tourist Development Council, and Board of County Commissioners all voted to accept the results of this study. The City is presenting today to seek complete funding approval. The Stormwater Outfall Pipe Removal and Water Quality Project is designed to improve water quality, flood protection, and the City’s resiliency. As part of this project, the beach outfall portion will replace the existing gravity flow system at the north and south ends of the beach and include two pump stations that will pump treated stormwater 1,500 feet into the Gulf, eliminating the need for the existing beach outfall pipes. The Grant Application request provides for a total budget of $32,622,945 with a reimbursable grant request not to exceed $10 million. ADVISORY BOARD RECOMMENDATION: The Coastal Advisory Committee approved this item at the August 14, 2025, meeting. The Tourist Development Council approved this item unanimously (8-0) at their August 19, 2025, meeting. This item is consistent with the Collier County strategic plan objectives of promoting Collier County as an exceptional tourism destination. FISCAL IMPACT: FY 26 budget amendments are required to appropriate funding for this reimbursable grant in the amount of $10,000,000. Funding is available within the TDT Beach Renourishment Fund (Fund 1105) reserves. GROWTH MANAGEMENT IMPACT: Page 839 of 3896 9/23/2025 Item # 11.C ID# 2025-3476 LEGAL CONSIDERATIONS: Section 125.0104, Fla. Stat., provides the authority for this expenditure and includes the following stringent requirements: Section 125.0104(5)(a)6. To acquire, construct, extend, enlarge, remodel, repair, improve, maintain, operate, or finance public facilities within the boundaries of the county or subcounty special taxing district in which the tax is levied, if the public facilities are needed to increase tourist-related business activities in the county or subcounty special district and are recommended by the county tourist development council created pursuant to paragraph (4)(e). Tax revenues may be used for any related land acquisition, land improvement, design and engineering costs, and all other professional and related costs required to bring the public facilities into service. As used in this subparagraph, the term “public facilities” means major capital improvements that have a life expectancy of 5 or more years, including, but not limited to, transportation, sanitary sewer, solid waste, drainage, potable water, and pedestrian facilities. Tax revenues may be used for these purposes only if the following conditions are satisfied: a. In the county fiscal year immediately preceding the fiscal year in which the tax revenues were initially used for such purposes, at least $10 million in tourist development tax revenue was received; b. The county governing board approves the use for the proposed public facilities by a vote of at least two-thirds of its membership; c. No more than 70 percent of the cost of the proposed public facilities will be paid for with tourist development tax revenues, and sources of funding for the remaining cost are identified and confirmed by the county governing board; d. At least 40 percent of all tourist development tax revenues collected in the county are spent to promote and advertise tourism as provided by this subsection; and e. An independent professional analysis, performed at the expense of the county tourist development council, demonstrates the positive impact of the infrastructure project on tourist-related businesses in the county. This item is approved as to form and legality and requires super majority vote for approval. – CMG RECOMMENDATIONS: To approve and authorize the Chair to execute a Category A Grant Agreement for the City of Naples Stormwater Outfall Pipe Removal and Water Quality Project as a reimbursable grant not to exceed $10,000,000, authorize any necessary Budget Amendments, and make a finding that this project promotes tourism. PREPARED BY: John Melleky, Arts and Culture Manager, Tourism; Jay Tusa, Director, Tourism ATTACHMENTS: 1. City of Naples Grant Agreement Tourist Development Tax Grant A Stormwater10M 2. City of Naples TDC Funding Request Stormwater 2025 3. 1105 - BA County_City Stormwater Outfall Corrected Page 840 of 3896 Page 841 of 3896 Page 842 of 3896 Page 843 of 3896 Page 844 of 3896 Page 845 of 3896 Page 846 of 3896 Page 847 of 3896 Page 848 of 3896 Page 849 of 3896 Page 850 of 3896 Page 851 of 3896 Page 852 of 3896 Page 853 of 3896 Page 854 of 3896 Page 855 of 3896 Page 856 of 3896 Page 857 of 3896 Page 858 of 3896 Page 859 of 3896 Page 860 of 3896 Page 861 of 3896 Page 862 of 3896 Page 863 of 3896 Page 864 of 3896 Page 865 of 3896 Page 866 of 3896 Page 867 of 3896 Page 868 of 3896 Page 869 of 3896 Page 870 of 3896 Page 871 of 3896 Page 872 of 3896 Page 873 of 3896 Page 874 of 3896 Page 875 of 3896 Page 876 of 3896 Page 877 of 3896 Page 878 of 3896 Page 879 of 3896 Page 880 of 3896 Page 881 of 3896 Page 882 of 3896 Page 883 of 3896 Page 884 of 3896 Page 885 of 3896 Page 886 of 3896 Page 887 of 3896 Page 888 of 3896 Page 889 of 3896 Page 890 of 3896 Page 891 of 3896 Page 892 of 3896 Page 893 of 3896 Page 894 of 3896 Page 895 of 3896 Page 896 of 3896 Page 897 of 3896 Page 898 of 3896 Page 899 of 3896 Page 900 of 3896 Page 901 of 3896 Page 902 of 3896 Page 903 of 3896 Page 904 of 3896 Page 905 of 3896 Page 906 of 3896 Page 907 of 3896 Page 908 of 3896 Page 909 of 3896 Page 910 of 3896 Page 911 of 3896 Page 912 of 3896 Page 913 of 3896 Page 914 of 3896 Page 915 of 3896 Page 916 of 3896 City of Naples Naples Gulf of Mexico Beach Stormwater Outfall Pipe Removal & Water Quality Project Tourist Development Council Funding Request Page 917 of 3896 Stormwater Outfalls on Naples Beach Outfalls: North Basin #2, #3, #4, South Basin #6, #7, #8, #9, #10 (City-8) Page 918 of 3896 Page 919 of 3896 Stormwater Project Benefits/Tourism Impacts Include: ➢Removing all (8) unsafe and deteriorating Outfalls from the Naples Beaches (aesthetically pleasing) ➢Improve Water Quality that exceeds the State’s Minimum Standards (attract more beach goers) ➢Provide Flood Protection (increase foot traffic) ➢Increase the City’s Resiliency within the work area of GSBN ➢Increase the Storm Event level of Service from a 5- year storm event to a 25-year storm event (positive economic growth and stability) Page 920 of 3896 Positive Impacts on Tourist Activities ➢Attract more foot traffic to City beaches, parks, roads, and sidewalks within the project area. ➢Boost to the local Naples economy from additional tourism spending. ➢The removal of the outfalls will remedy the concern of many not knowing what is coming out of the outfalls and attract more beach goers/tourism within Naples. ➢Perception of clean, safe and aesthetically pleasing beaches will increase the marketability of Naples and Collier County. ➢Findings support that improving water quality, flood protection and increased resiliency will promote tourism in the Naples footprint. ➢Overall, this project will have a positive impact on tourism and tourism related business/activities. ➢On March 11, 2025, BBC approved the Tourism Study. Page 921 of 3896 In closing, the City’s Tourism Impact Study reveals that the project will not only improve Water Quality but boost tourism. The City of Naples respectfully requests the Coastal Advisory Council to approve funding in the amount of $10M for the Naples Gulf of Mexico Beach Stormwater Outfall Pipe Removal & Water Quality Project. Page 922 of 3896