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Productivity Minutes 06/07/2010 S June 7, 2010 MINUTES OF THE COLLIER COUNTY GOVERNMENT PRODUCTIVITY COMMITTEE Naples, Florida, June 7, 2010 LET IT BE REMEMBERED that the Collier County Government Productivity Committee, having conducted business herein, met on this date at 3:00 PM in SPECIAL SESSION in Building "F" of the Government Complex, in the County Manager's Conference Room, 2nd Floor, Naples, Florida, with the following members present: Chairman: Stephen Harrison James Gibson Janet Vasey Joseph Swaja Douglas Fee James Hoppensteadt Vladimir Ryziw ALSO PRESENT: Commissioner Coyle-BCC Liaison Mike Sheffield-Assistant to County Manager Crystal Kinzel-Clerk's Finance Office Tammie Nemecek-Economic Development Council Robert St. Cyr-Dir. Community Outreach, Clerk's Office Collier County Government Productivity Committee Special Meeting Agenda County Manager's Conference Room June 7, 2010 1. Call to Order-Steve Harrison 2. Continue to assess the potential economic impacts and sources of revenue for the Jackson Labs project 3. Next steps in the process 4. Public Comment 5. Adjourn June 7, 2010 1. Call to Order - Steve Harrison The Special Meeting was cal/ed to order by Chairman Steve Harrison at 3:00 PM. A quorum was present. Others present were thejol/owing: Leslie Norins, MD, Rainey Norins, Eric Watler, Chuck Moh1ke, Tim Wallen, Duane Billington, Ron Maglothin, Michele McKenney, Robert D. Jim Pilon, Brenda Fioretti, Harold Hall, Ellie Krier, Michele Klinowski, Leslie Prizant, Russ Gowland, Cheryl Pavlick and Georgia Hiller. 3. Continue to Assess the Potential Economic Impacts and Sources of Revenue for the Jackson Labs Project Mr. Harrison summarized the sources of revenue and options for investments to be discussed for feasibility. . Millage Rate (Property Taxes) . Incremental Real Estate (Sales) Taxes . Excise Tax . Franchise - Utilities etc. . Change in Sales Tax Janet Vasey gave a summary on the OPPAGA Report. The report showed different State areas that have had biotech research information for funding. She spokc with Richard Bookmen Executive Dean for Research from University of Miami Miami/Dade County. He offered information of his experience that could be shared with the Commissioners if they were interested. She has made calls to the other Counties and hopes to hear back soon. As the options were discussed, different figures were given for Franchise fees with government entities, such as a Franchise Agreement with FP&L and any other provider of electrical service in the County. More information needs to be rcsearched. ^ surcharge on Property Tax such as 10% was also discussed, along with the millage rate. A handout of the Washington Economic Group was reviewed, with the earnings and output tables given in the report. Commissioner Coyle stated they need something specifically derived for Collier County. They also need to look at an estimate ofrevenues that will be generated, what organizations are likely to locate in the County and when, what jobs will be brought into the County and when, and what salaries will be paid and the benefits to Collier County. There are particular figures they know that are generated in the County, such as gas tax per capita, property tax revenues per capita and the sales tax. When taking the gross income, it is common knowledge some portion will be spent in the County and they will derive specific benefits from those figures. 2 June 7, 2010 Commission Coyle stated the complication they are facing now is they do not have a business plan from Jackson Labs. Jackson Labs is making sure they answer all the questions OTAD has before signing an agreement with the State and feels that will be accomplished at the end of the week. Commissioner Coyle was not too certain it will be accomplished in that time span. He would like Jackson Labs to specify the number of jobs, when they will have them and what the salary levels will be. How much of their money will be put into the projeet and for how many years is an important pieee of information needed. What other Organizations will10eate in the County would be another piece of information needed. He would like to see a letter of intent. He will work on receiving all the above information, as it is very difficult to work further without a business plan. There are others expressing interest in leasing space or building on the campus. There are also other sources of funding such as philanthropy, Federal grants, sale of products and services. The Stimulus program was also discussed in which they need further information for that option. The County is always looking for Federal Stimulus monies whenever possible. A question was asked if they decided on a Franchise Tax is a Bond possible. The answer was "yes" with Commissioner Coyle favoring the long-term investment of bonding. It is an acceptable accounting principle. Janet Vasey mentioned the whole area benefits so the whole area should pay for those benefits. The City of Naples and Marco Island have a Franchise Tax. Being Homesteaded, Non-Homesteaded, and commercial could get complicated. A Sales Tax (gasoline taxes) was discussed knowing some of the figures generated could be verified. Janet mentioned she did a study on a discretionary sales surtax. It would have to be Y, or 1 percent - nothing in between. A half cent would generate $22.5M per year and could start January 2011. It would need to go to a vote - but rolled into Jan 1st and end on Dec 31 st. According to the Florida Statutes, there are only eight reasons it can be done. Local Government infrastructure surtax - but only for something the County would own. This can be discussed further with the County Attorney's office. It was mentioned that not all of the information flowing through the community is necessarily accurate or credible until they receive a business plan from Jackson Labs. The County needs to provide credible information to the public. Too many issues are being raised. The unknowns could be removed if there was a Business Plan. Many funding options were discussed knowing more work needs to be done on the financing aspect. The Committee can work on the options until they get a Business Plan with more numbers that are accurate in all aspects of the project. (Jim Hoppensteadt arrived at 4:06 PM) 3 June 7, 2010 The County would not get revenues from Jackson Labs on impact fees unless there is construction for homes etc. A summary was given by Chairman Harrison: . Surcharge (County wide property taxes) . Franchise Tax (Could be Bondable) . Obtaining a Multiplier and Data from CIBA (Employment, sales tax and property tax on construction) . Sales & Use Tax . Y2 or I cent Sales Surtax A template will be provided later in the week for economic analysis, etc. Mr. Harrison stated they need to look at protecting the taxpayer so that any funding will not be commingled into other County funds. Going through a legal Authority was suggested for "protected money." 4. Next Steps in the process Committee members will look further into the different funding options. The Finance Subcommittee will meet to go over details of each. It was suggested to ask someonc from Jackson Labs to attend one of their meetings to quiz them on financials. their business plan, and data. 2. Approval of Minutes from the June 2, 2010 meeting Joseph Swaja moved to approved the June 2,2010 minutes. Second by Mr. Ryziw. Carried unanimously 8-0. 5. Public Comment Speakers: Leslie Norins - this was his first meeting and was impressed. He is in favor of bringing Jackson Labs to Collier County. Michelle McKenney -- can see benefits of Jackson Labs coming to Collier County. It is an immense opportunity and will have a great payback. Rainey Norins - has seen many economic changes in Collier County over the years and need to change the economic focus. In favor of Jackson Labs coming to Collier County and will see the benefits. Eric Waiter - he hears the number of$130M and didn't feel that it was that much. The County should just do it. Ron Maglothin - stated everything sounds great, but it would be a burden put on the taxpayers. It is a great project, but do not ask the taxpayers to pay for it. Brenda Fioretti - President of the Naples arca Board of Realtors representing 3,800 realtors that fully supports bringing Jackson Labs to Collier County. The Board of Directors did take a vote and recognize it will have to be supported by tax dollars. 4 June 7, 2010 Harold Hall - will need analysis for real numbers to present to the BCC and taxpayers. Need to come up with economical justification and will Collier County benefit. Duane Billington - would like to see Jackson Labs come to Collier County but questioned impact fees. Timothy Wallen - questioned the construction end of it - will it be local residents? Too much lack of information and still uncertain as to whether they should come to Collier County or not. Next Meeting- Joe Swaja moved to hold the next meeting on Monday, June 14 at 1 :00 PM if Jackson Labs has their Business Plan in by Friday morning otherwise it will be canceled. Second by James Gibson. Carried unanimously 8-0. Joe Swaja moved to hold a Finance Subcommittee meeting on Friday, June 11th at 10 AM. Second by Janet Vasey. Carried unanimously 8-0. It was noted that the $ 130M from the State is contingent on Congress passing another Medicaid bill. (FMAP matching fund) They would like Mr. Hewitt (Jackson Labs) to attend one of their meetings. Doug Fee will ask Mr. Fishkind to attend their June 16th meeting if possible. 6. Adjourn There being no further business to come before the Committee, Mr. Swaja moved and Mr. Ryziw seconded to adjourn. The meeting was adjourned by the Chairman at 4:55 PM. COLLIER COUNTY GOVERNMENT PRODUCTIVITY COMMITTEE Stephen Harrison, Chairman The minutes were approved by the Board/Committee Chairman on . as presented , or as amended_. 5