Productivity Minutes 07/21/2010
July 21,2010
MINUTES OF THE COLLIER COUNTY
GOVERNMENT PRODUCTIVITY
COMMITTEE
Naples, Florida, July 21,2010
LET IT BE REMEMBERED, that the Collier County Productivity
Committee, having conducted business herein, met on this date at 2:00 PM
in REGULAR SESSION in Building D, Risk Management Training Room
located at 3301 Tamiami Trail E, Naples, Florida, with the following
members present:
CHAIRMAN:
Stephen Harrison
Bradley Boaz (Excused)
Doug Fee
James Gibson
James Hoppensteadt
Vladimir Ryziw
Joseph Swaja (Excused)
Janet Vasey
ALSO PRESENT: Commissioner Frank Halas - BCC Liaison
Mike Sheffield, Assistant to County Manager
Crystal Kinzel, Finance Director
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July 21,2010
1. Call to Order
Chairman Harrison called the meeting to order at 2:00 PM.
The following revisions were made to the Agenda.
Add: II A. Public Comments
Move: III A. to II B. Recommendationsfor appointment of new members to
the Productivity Committee
II A. to II C. Finalize analysis of potential economic impacts and
potential funding options for the Jackson Labs project
Mr. Gibson moved to approve the Agenda as amended. Second by Mr. Ryziw.
Motion carried unanimously 6-0.
II. Old Business
A. Public Comments
Noreen Murray asked if it makes sense to diversify and build our County
economy to tax-exempt entities. The entities utilizing space will not pay
property or corporate taxes. She voiced concern on depending on National
Institutes of Health (NIH) funds through the Federal Government. She also
pointed out Jackson Lab is not currently in the bio-medical field. She has
concern over deficit and the national debt and stated there are many other
companies experienced in the field that could provide more diversification and
benefits to the County.
Duane Billington stated there will be no cash return to the tax payers if the
County keeps bringing in entities that have to be supported by tax dollars. The
Washington Economic Group (WEG) report is bogus as questions go
unanswered or avoided. He expressed the need for an economic analysis on the
cost of bonding. He added the dollar has a time value to it and should be taken
into consideration.
Tony Pires expressed concern on funding issues on Option 1 and 6, which
would be a combination of franchise fees and ad valorem tax because Marco
Island, Everglades and Naples residents in the unincorporated areas would be
double taxed. The County should receive security in the form of a couple of
100 acres from the developer in Ave Maria. The Land Use and Zoning and the
Master Plan only provide for residential land use and the Ordinance would need
to be revised.
Jim Smith remarked the Press is making false analogies such as the project is
like a shopping center where a magnet store contracts and attracts other
industries. Collier County is going in with the State 50/50 on the project. The
split is actually 52/48 because Collier County currently pays 2 % of the State
revenues. WEG report is on based on assumptions. He does not want to see his
tax monies being spent in the highly contested field of biomedical research.
B. Recommendations for appointment of new members to the Productivity
Committee
John Kerns gave a brief history introduction to the Committee.
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July 21, 2010
The Staff distributed candidate applications and resumes as submitted. (See
attached) It was noted that candidates, Henry Struminger, is out of the country
and unable to attend today's meeting and Scott Lowe's application was marked
"not a registered voter" in error.
The Committee Members were directed to mark ballots by choosing 3
candidates. The top 3 candidate applications will be submitted to the Board of
County Commissioners for approval. The votes were publicly tallied.
Mr. Hoppensteadt moved to recommend John Kerns, Leslie Prizant and
Cheryl Pavlick's applications to be submitted to the Board of County
Commissioners for approval (for candidates to serve on the Committee.)
Second by Mr. Gibson. Motion carried unanimously 6-0.
C. Finalize analysis of potential economic impacts and potential funding
options for the Jackson Labs Project
The Economic Viability of Jax-Florida and Financingfor Jax-Florida - both
drafts were distributed to the Committee for review prior to submission to the
Board of County Commissioners.
Economic Viability of Jax-Florida
The following was discussed and recommended:
· Section B, Page 2 - Change of "the expenditure of $260 million."
· Section C, Page 4 - Incorporate "$50 million is contingent upon Federal
funding. "
· Section D, Page 10 - Addition of "Collier Enterprise to make a
contribution of a large parcel of land in Ave Maria."
Commissioner Halas recommended that the Committee request the Board of
County Commissioners to negotiate a land donation for property in the Ave
Maria area with Barron Collier.
Financing for Jax-Florida
The following was discussed and recommended:
· Preliminary Economic Viability - Possible Deal Killers
· Options for Financing $130M - Pages 6 & 7, change as follows:
· 1 - "about $3/month"
· 2 - "over 1 0 years cost $417 per $200k"
· 3 - "increases and costs $390 per $200k"
· 4 - "General Obligation Bonds"
· 5 - "total general government estimated debt ratio to 12.2%"
· 6 - Addition of "Prepared by County Budget Office"
· 7 - Clarify "112 % Sales Tax" and "qualification of Jackson
Building. "
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July 21,2010
Mr. Hoppensteadt moved to accept the two draft documents (Economic
Viability of Jax-Florida and Financing for Jax-Florida) with the addition of
verbiage covering DRI implications and the risks of viability on the 750,000
square feet dedicated to medical and educationalfacilities and the private
contribution of the Developer. Second by Mr. Ryziw.
Discussion continued on the motion and there was a recommendation to add the
announcement made today by Jackson Laboratory - "It's first medical partner
for the new research and educational village in Collier County will be the
University of South Florida." (See attached)
Mr. Hoppensteadt stated he supported the amendment. Motion carried
unanimously 6-0.
Chairman Harrison distributed and reviewed a Jackson Laboratory Project
Review - Draft. (See attached)
The Committee recommended revisions as follows:
Preliminary Economic Viability Possible Deal Killers - Page 2
· Add - County should get Letters of Intent prior to any disbursement
of funds
· Add - Funding coming from the State
· Add - Contributions from Developer and other parties benefiting
Negotiation Ideas to Improve Viability - Page 4
· Note first 2 points should state one or the other.
Commissioner Halas recommended inviting a representative from the
Washington Economic Group to attend the BCC meeting to determine what was
put in the model and ask further questions.
Estimated Impact on Citizens - Page 9
· Add Option numbers.
· Option I - Add (Unincorporated)
· Option 3 - Add "$52 per year"
· Option 4 - Add "$29 per year over 25 years"
· Option 5 - Add "$29 - $34 per year depending on revenue for 25
years"
· Option 6 - Remove "$36 for 2.5 % Franchise and reflect $48 per
year"
· Change title to "Financial Impact on the Public"
The Committee discussed the pros and cons of each Option and then voted for 2
Options. The winning Options were "General Revenue Bonds" and "112 %
Sales Tax plus."
Mr. Hoppensteadt moved to recommend Options 4 and 7 as the Committees'
preferable funding mechanisms; both options require voter approval and
noting Option 7 has some complicated legal issues. Second by Mr. Ryziw.
Motion carried 5-1. Doug Fee opposed.
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July 21,2010
Recess - 4:30 pm
Resume - 4:40 pm
Discussion continued on what position the Committee would take on the
Viability of Jax-Florida.
Mr. Hoppensteadt moved to accept Janet's verbiage to be included in a cover
letter "the Committee unanimously agreed the economic viability of the
proposed Jax-Florida biomedical complex cannot be validated, with certainty,
based on available information." Second by Ms. Vasey. Motion carried
unanimously 6-0.
Ms. Vasey read a transmittal letter she prepared to submit to the Board of
County Commissioners with Committee recommendations for the Jax-Florida
Project aloud. (See attached)
Discussion was made on the contents of the transmittal letter and the Committee
suggested including the level of risk involved, additional County money and the
Committee's recommendation for funding.
Ms. Vasey suggested adding "the Washington Economic Group report, which
quantified the potential economic impact in Collier County, appears optimistic."
Mr. Hoppensteadt moved to accept Janet's letter as amended. Second by Ms.
Vasey. Motion carried unanimously 6-0.
III. New Business - Discussed after V
IV. Committee Member/Staff Comments - None
V. Public Comment
Pam Brown, a life long Immokalee resident expressed land donation. She asked
how jobs (employees) will be paid; stating half the property in Immokalee is not
taxed.
Noreen Murray stated the project is all plugged in numbers. Collaboration does
not mean jobs. If the County and the State pay, they should own the patents and
royalty. Scientist should lease the patent from County.
Duane Billington agreed with Noreen Murray. Jackson is not recession proof. He
would like to see guarantees that revenues will not be diverted and would stay local.
III. New Business -
A. Discussion regarding the annual summer recess
Mr. Hoppensteadt moved to take annual summer recess and not hold a meeting in
August. Second by Mr. Gibson. Motion carried unanimously 6-0.
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July 21,2010
There being no further business to come before the Committee it was moved
and seconded to adjourn. The meeting was adjourned by the Chair at 5:15
PM.
COLLIER COUNTY GOVERNMENT
PRODUCTIVITY COMMITTEE
Stephen Harrison, Chairman
These Minutes were approved by the Board/Committee on
presented or as amended
, as
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