Productivity Minutes 07/19/2010
July 19,2010
MINUTES OF THE COLLIER COUNTY
PRODUCTIVITY COMMITTEE
Naples, Florida, July 19,2010
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 2:00 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, Jr.
Janet Vasey
Bradley Boaz (Excused)
Joseph Swaja
Douglas Fee
James Hoppensteadt
Vlad Ryziw
ALSO PRESENT: Mike Sheffield, Assistant to the County Manager
Crystal Kinzel, Clerk's Finance Department
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July 19,2010
1. Call to Order-Steve Harrison, Chairman
Chairman Harrison called the meeting to order at 2:00 PM
Mr. Swaja moved to approve the Agenda. Second by Mr. Hoppensteadt. Carried
unanimously 7-0.
2. Approve/Accept Subcommittee meeting minutes from July 7, 2010.
Mr. Swaja moved to approve the minutesfrom the July 7,2010 Finance
Subcommittee meeting. Second by Mr. Ryziw. Carried unanimously 7-0.
3. Approve/Accept Subcommittee meeting minutes from July 12,2010 meeting.
Ms. Vasey moved to approve the minutes from the July 7, 2010 Finance
Subcommittee meeting. Second by Mr. Hoppensteadt. Carried unanimously 7-0.
4. Continue to assess the potential economic impacts and sources of revenue for the
Jackson Labs project.
A. Review/consider economic vitality drafts prepared by Steve and Janet.
Ms. Vasey submitted the document "Economic Viability of Jax-Florida - Draft"
for review by the Committee. The following was recommended/discussed:
. Section AA, Page 2 - Addition of "Increased Opportunities for
Hospitality Demand due to Medical Conferences for Jax-F10rida and the
Health Care Industry" or similar language under the potential benefits.
· Section B, Page 2 - Addition of "States inability to fulfill their financial
obligations" or similar language under the potential risks.
. Section CA, Page 4, paragraph 5, line 5 - amend wording from "... to
share profits..." to "... to share revenue..."
· Section CA, Page 4, - Addition of statement recognizing the Jax-F10rida
Business Plan proposal to utilize Collier County funds to offset operating
expenses as necessary may not be fair to Collier County taxpayers.
· Section CA, Page 4, - Addition of statement referencing the necessity to
identify the parameters for the milestones proposed to access the
financing provided by Collier County.
The representatives of Washington Economic Group were available and the
Committee took up item 4.C.
B. Review spreadsheet on financial considerations prepared by Vlad
Mr. Ryziw submitted the document "Jackson Lab - Biomedical Research and
Education Village - Review by Collier County Productivity Committee" - Draft
for review. Discussion occurred on parameters of the analysis and potential
returns on investment.
C. Washington Economic Group (WEG)
(Teleconference with WEG representative Tony Villamil- approx. 3:00 p.m.)
The Committee reviewed the document submitted via the Economic Development
Council "A brief - Economic Impacts and Return on Investment to Collier
County, Florida from the Jackson Laboratory - Florida" prepared by The
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July 19,2010
Washington Economic Group, Inc., dated July 9,2010, (Revised on July 15,
2010.)
Mary Snow and Tony Villamil of WEG, Inc. were available via teleconferences
to answer Committee questions.
Russell Weyer, Fishkind Assoc., who contributed to the analysis, was present.
Discussion occurred on the parameters utilized for the analysis, multipliers,
potential rates of return, employment estimates, basis for the estimate of 3 M
square feet of construction, etc.
It was determined that Mr. Ryziw should meet with Russ Weyer of Fishkind &
Assoc. to complete a "sensitivity analysis" and report back to the full Committee
on the results.
Item 4.A continued
The Committee continued review of Ms. Vasey's draft document:
. Section C.6, Page 5, - Identify the existing land-uses allowed under the
current Growth Management Plan and/or Land Development Code to
ensure the proposed development site is in conformance with their
requirements. If not, what measures would need to be taken to obtain
conformance. Mr. Fee to investigate the issue.
· Section C.6 - Concern the 3M square feet of building area proposed to be
constructed may not be a realistic goal.
· Section DA, Page 8, paragraph 2, line 1 - amend from "It is difficu1t..."
to "It is impossible. . . "
· Section D.5, Page 8, line 2 - from"... based on gross sales..." to "based
on net sales. . ."
· Section D.5, line 3 - amend year cited from 2023 to 2032.
Ms. Vasey noted she would make any necessary changes and resubmit the
document via emai1 to the members in anticipation of its review at the July 21,
2010 meeting.
Break - 4:01 pm
Reconvened - 4:07 pm
Chairman Harrison noted in summary:
· $130M is a large investment and risk for the County; if less County
resources were involved the proposal would be more attractive.
· In economic terms, the data does not indicate a "positive return of any
size" for the County investment.
· The return on investment data does not take into account socio-economic
or other intangibles.
· There are still many unanswered questions, but the Committee must
proceed with the information at hand.
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July 19,2010
Chairman Harrison submitted the document "Jackson Laboratory Project
Review - Draft" for consideration. He prepared a Slideshow based on the
document. The Committee determined the following items should be added to the
Slideshow:
· Negotiation Ideas to Improve Viability - Linking funding provisions to
milestones such as employment created, the County holding title to the
building; and includes the concept on requesting payments in lieu of
property taxes by non-profits.
· Proiected Impact on Local Economy - include a statistic on the average
jobs per year created, highlighting some benefits outlined in Ms. Vasey's
Report.
. Options for Financing $130M - include the observation in Option 2 -
"Pay as You Go" minimizes exposure to County residents as it may be
ceased at any time; add projected costs per property owner.
Chairman Harrison noted the Slideshow would be presented to the Board of
County Commissioners under the Jax-F10rida/Productivity Committee Report
item at their July meeting. Other documents including the Reports prepared by
Ms. Vasey, WEG Report, and Jax-F10rida Business Plan, etc. will be provided as
backup documentation.
Mr. Hoppensteadt left at 4:54 pm
5. Next steps in the process
Mike Sheffield noted he would prepare a package as outlined above by Chairman
Harrison which would include the Financing Options, Economic Viability of the Jax-
Florida, the PowerPoint presentation and other necessary documents utilized by the
Committee in completing their directive from the BCC.
Mr. Swaja recommended the Board of County Commissioners authorize outside
consultants in the medical research field to review the Jackson Laboratory concept
and competitive obstacles they may face.
Ms. Vasey will provide a cover letter for the package
6. Public Comment
Speakers
Duane Billington noted there are also intangibles associated with not investing the
money. The $4.8M return outlined in the 30 year schedule will be less if inflation
were to be included in the statistic. He expressed concern the WEG Report relies
heavily on the estimated square footage of building area to be constructed; if this does
not come to fruition, it would totally change the basis of the study. Non-profits do
not pay property taxes but have a tendency to have large positive revenue streams.
He recommended Jackson Laboratory be subject to General Audit Requirements and
the community have a representative on the Jackson Laboratory Board of Directors.
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July 19,2010
Harold Hall expressed concern on the large cost involved in funding the project and
recommended the funding option be approved by the voters.
There being no further business for the good of the County, the meeting was
adjourned by order of the chair at 5:35 P.M.
COLLIER COUNTY PRODUCTIVITY
COMMITTEE
Steve Harrison, Chairman
These minutes approved by the Board/Committee on
as presented or as amended
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