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Productivity Minutes 06/16/2010 June 16, 2010 MINUTES OF THE COLLIER COUNTY PRODUCTIVITY COMMITTEE Naples, Florida, June 16,2010 LET IT BE REMEMBERED, that the Collier County Productivity Committee in and for the County of Collier, having conducted business herein, met on this date at 1 :00 PM in REGULAR SESSION in Building "F" of the Government Complex, in the County Manager's Conference room, Naples, Florida with the following members present: Chairman: Steve Harrison Vice Chairman: James Gibson, JI. Janet Vasey Bradley Boaz (Excused) Joseph Swaja Douglas Fee James Hoppensteadt VI ad Ryziw ALSO PRESENT: Mike Sheffield, Assistant to the County Manager Crystal Kinzel, Clerk's Finance Department Commissioner Halas, BCC Liaison Commissioner Coyle, BCC Chairman Tammie Nemecek, Economic Development Council Collier County Government Productivity Committee Meeting Agenda County Manager's Conference Room June 16, 2010 1;00 P.M. I. Introduction A. Call to Order-Steve Harrison, Chairman B. Approval of the Meeting Agenda C. Approval of the May 19, 2010 Productivity Committee meeting minutes D. Approval of the June 7, 2010 Productivity Committee meeting minutes E. Approval/acceptance of the June 11, 2010 Jackson Labs Finance Subcommittee meeting minutes II. Old Business A. Continue assessment of the potential sources of revenue for the Jackson Labs project B. Update on the FY 2011 Proposed Budget-Mark Isackson C. Update on collaboration with the Collier School District (letter from Superintendent Thompson attached) III. New Business A. Discussion regarding the annual summer recess (August) IV. Committee Member/Staff Comments V. Public Comment VI. Adiourn-The next meeting is scheduled for July 21, 2010 at 2pm in the County Manager's Conference Room June 16,2010 I. Introduction A. Call to Order-Steve Harrison, Chairman Chairman Harrison called the meeting to order at 1:00 P.M. B. Approval of the Meeting Agenda Mr. Gibson noted Objective A for the committee was "To determine the eeonomic viability of Jaekson Labs for Collier County" and Objeetive B is "lfthe eenter is in the best interest of the eounty, make recommendations." He expressed concern item II.A does not address the economic viability of the proposal. He suggested the committee should determine if the objeetives have changed. Commissioner Coyle provided an update noting the State of Florida Office of Tourism, Trade and Economic Development (OTTED) has notified the eounty they will not work on the Jaekson Laboratory's contract until they can confirm the status of Federal funding. The BCC should be in the position before July 27 when the millage rate will be set, to determine if it is viable to proceed with the project (should the State and Federal funding be made available.) He recommended that the Productivity Committee determine if the proposed project is cconomically feasible; if so; identify the most effective financing mcthods. Due to the notification by OTTED, thc recommendations do not need be completed by June 22, 2010. The public hearing for the BCC scheduled for that day will continue with public speakers. Mr. Hoppensteadt moved to approve the Agenda subject to the following change. Item ILA include determining the economic viability of the proposed project. Second by Ms. Vasey. Carried unanimously 7-0. Commissioner Coyle noted the business plan was submitted by Jackson Laboratory. He outlined the following funding timing for the proposal. $720M of funds are required over a 1 O-year period and anticipated as follows: . $100M - Endowments. . $260M - State and Local Government . $340M - Jackson Labs (in the form of grants, etc.) . $ 20M - Barron Collier The breakdown for the State and County Commitment is: . State: FY11 - $50M; FY12 - $40M; FY13 -- $40M . Collier County: FY1l - $45M; FY12 - $40M; FYI3 - $40M . Barron Collier: FYIl - $5M (Land Donation) . The estimated cost of construction is approximately $500 sq/ft. Commissioner Halas expressed concern on the misinformation being disseminated to the public that the funding is to create 200 jobs proposed by Jackson Laboratory. The concept is to create an overall economic benefit by 2 June 16,2010 developing a "Research Campus" with spin off businesses and related research facilities. Discussion occurred on the ramifications of the funding timetable on the county, and how the Barron Collier contributions may be applied under the funding categories (count toward Collier County source, treated as endowment, etc.) Commissioner Coyle noted several spinoff businesses have expressed interest in occupying the campus including a University of South Florida Satellite Campus, Edison Community College Charter School, and a Biotech Research Company. Various parties are in the process of attempting to obtain letters of intent from any interested organizations. Ms. Vasey outlined the 4 revenue options identified by the Finanee Subeommittee: . Option 2 - Eleetrie Franchise Tax . Option 7 - Sales Tax Increase . Option 2 - Propertv Tax Increase . Option 2a - Propertv Tax Increase - Pay as yOU gO Commissioner Coyle left at 1:50pm C. Approval of the May 19,2010 Productivity Committee Meeting Minutes Mr. Swaja moved to approve the minutes of the May 19, 2010 meeting subject to the following change: Public Speakers - last name from "Evans" to "Fletcher" Second by Mr. Ryziw. Carried unanimously 7-0. D. Approval of the June 7, 2010 Productivity Committee Meeting Minutes Mr. Swaja moved to approve the minutes of the June 7,2010 meeting. Second by Mr. Ryziw. Carried unanimously 7-0. E. Approval of the June 11, 2010 Jackson Labs Finance Subcommittee Meeting Minutes Mr. Fee moved to approve the minutes of the June 11, 2010 Jackson Labs Finance Subcommittee meeting minutes subject to the following change: · Page 2, paragraph 2, line 2 - from "requirement of$130M over 30 years for construction of Jackson Labs..." to "requirement of$130Mfor Jackson Labs..." . Page 2, paragraph 2, line 5 from "to match the $130M appropriated by the State of Florida..." to "to match the $130M to be made available by the State of Florida..." Second by Mr. Swaja. Carried unanimously 7-0. 3 June 16,2010 11. Old Business A. Continue assessment of the potential sources of revenue for the Jackson Labs project Ms. Vasey submitted the draft document "Jackson Laboratory Financing -lfwe decide to spend $130 million on Jackson Laboratory, how would we pay for it? for review. Committee diseussion oceurred on the following topies: · Funding ramifieations if the State of Florida does not appropriate the additional $80M offunds in FYI2 and FY13. · The feasibility of ensuring a Risk Management Plan is in place for the proposal. · The committee may need to develop an avenue for the eollection of additional data (from Jackson Labs, etc.) in order to render recommendations. · Concern the related spinoff businesses or related facilities may not re- locate to the area as antieipated (i.e. technology advances allow work to be completed remotely). · Should the county's economic viability analysis of the proposal be limited to the Jackson Laboratory Facility or the entire research eampus that may be created · Ensuring any analysis includes a majority of the businesses related to the campus may be SOl e non-profit eorporations who would not be required to pay property taxes. · A committee is being formed to approaeh organizations that may have an interest in relocating to the research eampus. Discussion occurred noting there are many questions which need to be answered before recommendation ean be made. It was determined committee members should submit individual questions to Mike Sheffield who will categorize them and attempt to ohtain responses from the necessary parties. Tammie Nemecek left at 2:50pm Mike Sheffield recommended and the Committee agreed the item "Update from the Productivity Committee" should be removed from the JUlie 22 BCC Agenda. Discussion occurred noting: . The proposal may want to be identified as "Jackson Laboratory Research Development Area," "Personalized Medical Campus" "Medieal Research Campus/Village," ete. as opposed to "Jackson Laboratory." · The original scope of task assigned to the Produetivity Committee may have been to identify financing options for the proposal, however according to Commissioner Coyle it should be expanded to include the economic viability of the proposal. 4 June 16,2010 Speaker Duane Billington addressed the committee noting many of the related businesses may be non-profits not paying property taxes. In relation, to the Sanford/Burnham Medical Research Institute in Orlando they did not commit until the other major facilities (V A Hospital, etc.) committed to the area. The Researeh Institute was not the incubator for the economic development in the area. He has raised the same questions as the committee, but has had difficulty in obtaining answers to any of them. Break 3:15pm Reconvened: 3:25pm Item IlA was to be continued after Item lIB B. Update on the FY 2011 Proposed Budget - Mark Isackson Leo Ochs, County Manager and Mark Isackson submitted a copy of a memorandum to the BCC dated June 14, 2010 - FY 2011 Budget" and provided an updated on the budget highlighting the following: . The County Property Appraiser has determined the taxable value of properties deereased 12.1 % for FY11 over FY10. . A millage neutral budget proposed was accomplished with a 5 percent reduction in operating expenses, a decrease in capital expenditures and restructuring of commercial paper debt, ete. · The county is primarily funded by residential development as the commercial taxable values are 10% of overall taxable values. · The county continues to aetively pursue grant funding. · Current county debt service levels are $77M annually (total debt outstanding $765M end ofFY09) ineluding principal and interest with an antieipated reduction to approximately $73M by FY13. It was noted the millage rate may be set by the Bee on July 27,2010 including any proposed Jackson Laboratory financing and reduced if necessary. Commissioner Halas left at 4:00 PM Discussion continued on item Il.A Ms. Vasey reviewed the draft document provided which outlined the options and ramifications of the proposed financing sources. The doeument will be updated based on the new information whieh continues to be acquired. Diseussion oecurred on how the eommittee can provide recommendations on the additional request outlined by Commissioner Coyle today - determine the economic viability of the proposed project. More information is needed to make the determinations. 5 June 16,2010 Mr. Ryziw noted he has eompleted a preliminary eeonomic impaet study and submitted a document "Collier County Productivity Committee - Proposed Jackson Laboratory Institute of Personalized Medicine (700 Acre Research and Development Village, Ava Maria, Florida) - Conceptual and Preliminary Community Economic Benefits Associated with Construction" - First draft dated June 14, 2010. He noted the report needs to be supported by additional information which could be provided by organizations sueh as WEG (Washington Eeonomic Group) or Fishkind and Assoe., etc. Mr. Swaja moved to authorize the Committee's Chairman to direct a letter to Commissioner Coyle notifYing him the Committee has identifiedfunding options for the Jackson Laboratory Project. The options need to be refined, but meet the objectives required by the County for funding project. In addition, there is a preliminary study developed to assist in identifYing the economic impacts to the County. In order to finalize the study, the Committee request the BCC authorize expenditures to any necessary parties who may assist in providing data to complete the study. Second by Ms. Vasey. Carried unanimously 7-0. The Committee determined the following preliminary meeting dates to complete the tasks assigned: . July 7, 2010 . July /4, 2010 The Regular Meeting will be held on July 21,2010. C. Update on collaboration with the Collier School District (letter from Superintendent Thompson attached) This item was heard immediately after approval of the Agenda. Mike Sheffield noted a letter was included in the packet from Superintendant Thompson whieh indicated if the Productivity Committee has a specific item to be addressed, they will send a representative to the meeting. 111. New Business A. Discussion regarding the annual summer recess (August) None IV. Committee Member/Staff Comments None V. Public Comment None The next meeting is scheduled for July 21, 2010 at 2 P.M. in the County Manager's Conference Room. 6 ^'~"""-"----"'-'-'-*- ~--,._"-".._~~'"._.,_.....,.,,"- """-'~'~-'~~--"'''''--"'-- June 16,2010 There being no further business for the good of the County, the meeting was adjourned by order of the chair at 5:16 P.M. COLLIER COUNTY PRODUCTIVITY COMMITTEE Steve Harrison, Chairman These minutes approved by the Board/Committee on as presented or as amended 7