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Subcommittee Minutes 07/07/2010 July 7,2010 MINUTES OF THE COLLIER COUNTY GOVERNMENT PRODUCTIVITY FINANCE SUB-COMMITTEE Naples, Florida, July 7, 2010 LET IT BE REMEMBERED, that the Collier County Productivity Finance Sub-Committee Council in and for the County of Collier, having conducted business herein, met on this date at 10:00 AM 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 (Excused) Janet Vasey James Gibson ALSO PRESENT: Mike Sheffield, Assistant to the County Manager Crystal Kinzel, Clerk of Courts Finance Director Derek Johnson, Clerk of Courts Finance Office Mark Isackson, Office of Management and Budget July 7, 2010 1. Call to Order Mr. Gibson called the meeting to order at 10:03 A.M. 2. Assessments/Analysis of Possible Financing Options Mr. Gibson noted the purpose of the meeting was to continue updating the draft document on the options for funding the $130M required by the County in the Jackson Laboratory proposal. Discussion occurred on the following topics: · Tenns and ramifications (affects on the County Bond Policy, etc.) of any proposed bonding rcquired to fund the proposal. · The possibility of negotiating with the Office of Trade, Tourism and Economic Development (OTTED). The timing on the distribution of their $130M of funds required for the proposal as funds may be expended first as opposed to a real time match of funds by the County. · An email from JeffKlatzkow, County Attorney, to Janet Vasey dated June 24,2010 indicates utilizing the sales tax for economic development is not permitted by the Legislature. The concept, if proposed, may be subject to litigation. It was noted that the report should identify the following funding options (positive or negative): I. Franchise Fee 2. Property Tax - "pay as you go" - State and County contributing 3. Property Tax - "pay as you go" - utilizing the States $130M up front (ls' 3 years) 4. Property Tax - as a pledge for a general revenue bond 5. Non Ad-valorem - as a pledge for a general revenue bond 6. Combination of Franchise Fee and Property Taxes 7. Sales Tax Discussion occurred noting other areas in the State (Orlando, Palm Beach, etc.) that have developed similar facilities, and are larger in population, have utilized less County funding in their projects. Other funding sources such as private donations were counted as local matches. Ms. Vasey noted she asked Jackson Laboratory if private donations (i.e. the proposed Barron Collier Companies $1 OM donation) could be utilized to offset the required County funding') Jackson Laboratory stated this was not an option for this proposal. The value of a land donation may be counted up to $5M and the County is required to provide $125M in "cash" funds. It was noted it should be determined if infrastructure expenditures can be counted in the local match. Discussion occurred noting there are other beneficiaries to the proposal that should be considered for donations (Lee County, area hospitals, etc.) 2 July 7, 2010 Ms. Vasey will amend the draft to include the above funding options and other issues identified today, including encouraging Jackson Laboratory to seek local grant funding for developing the facility which may be available. 3. Public Comment Speakers Duane Billington thanked the Subcommittee for their hard work in exploring all issues associated with the proposal. There being no further business for the good of the County, the meeting was adjourned at 11 :05 A.M. COLLIER COUNTY PRODUCTIVITY COMMITTEE SUBCOMMITTEE James Gibson These minutes approved by the Board/Committee on as presented or as amended 3