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BCC Minutes 02/03/2017 S (Urban Land Institute (ULI) Advisory Services Panel Preliminary Report) - Public Meeting February 3, 2017 TRANSCRIPT OF THE MEETING OF THE BOARD OF COUNTY COMMISSIONERS Naples, Florida, February 3, 2017 LET IT BE REMEMBERED, that the Board of County Commissioners, in and for the County of Collier, and also acting as the Board of Zoning Appeals and as the governing board(s) of such special districts as have been created according to law and having conducted business herein, met on this date at 9:00 a.m., in SPECIAL SESSION in Building "F" of the Government Complex, East Naples, Florida, with the following members present: CHAIRMAN: Penny Taylor Andrew Solis William L. McDaniel, Jr. Burt L. Saunders Donna Fiala ALSO PRESENT: Leo Ochs, County Manager Nick Casalanguida, Deputy County Manager Jeffrey A. Klatzkow, County Attorney Troy Miller, Communications & Customer Relations Page 1 COLLIER COUNTY Board of County Commissioners x-71 1.i L �4 • I N N PUBLIC MEETING AGENDA Board of County Commission Chambers Collier County Government Center 3299 Tamiami Trail East,3rd Floor Naples,FL 34112 February 3,2017 9:00 AM Commissioner Penny Taylor,District 4-BCC Chair Commissioner Andy Solis,District 2-BCC Vice-Chair Commissioner Donna Fiala,District 1;CRAB Co-Chair Commissioner Burt Saunders,District 3 Commissioner William L.McDaniel,Jr.,District 5;CRAB Co-Chair 1. Pledge of Allegiance 2. Opening Remarks Kim Grant,Community and Human Services Division Director 3. 9:05-10:00 Urban Land Institute Advisory Services Panel Preliminary Report Presentation*,Philip Payne,ULI Panel Chair 4. 10:00-10:30 Question and Answer Session with ULI Panel 5. As needed Public Comments 6. Adjourn *ULI Panel members presenting: Philip Payne,Panel Chair,Principal and CEO Ian Colgan,Assistant Executive Director Cassie Wright,Project Manager Ginkgo Residential Oklahoma City Housing Authority Urban Ventures,LLC Charlotte,North Carolina Oklahoma City,OK Denver,Colorado Hilary Chapman,Housing Program Manager JoAnne Fiebe,Florida Center for Community Design and John R.Orfield,LEED AP,Principal Metropolitan Washington Council of Governments Research;School of Architecture and Community Design, BOKA Powell Washington,D.C. USF,Tampa,Florida Dallas,Texas Lacy McManus,M.B.A.,Director of Program Dev. Greater New Orleans,Inc. New Orleans,LA NOTICE:All persons wishing to speak on Public Meeting items must register prior to presentation of the item to be addressed.All registered speakers will receive up to three(3) minutes unless the time is adjusted by the chairman. February 3, 2017 Page 2 MR. OCHS: Ladies and gentlemen, please take your seats. Please take your seats. Thank you. Madam Chair, you have a live mike. Item #1 PLEDGE OF ALLEGIANCE CHAIRMAN TAYLOR: Thank you very much. Good morning, everyone. I'd like to stand and say the Pledge of Allegiance. And, Mr. Commissioner Solis, would you please lead us in that. (The Pledge of Allegiance was recited in unison.) CHAIRMAN TAYLOR: Thank you very much. This is a workshop and a public meeting, and we're so pleased to see everyone here. This is about housing; housing in Collier County. And before we begin, I'm going to briefly identify some of the folks here. If I miss someone, please let me know; it's not going to be everyone. But we're going to start with Rick Medwedeff, who's is the General Manager of the JW Marriott in Marco Island. That company employs 750 folks. We have Reg Buxton, Linda Panaman, and Michelle McCloud, from the City of Naples. The City of Naples employs 435 employees; we have Nick Kouloheras, who is the Executive Director for Habitat for Humanity; we have Frank Rodriguez, who is the CRA Officer from First Florida Integrity Bank; we have Michael Puchalla, Executive Director of House -- of HELP, which is Housing Education and Lending Programs; we have Harold Weeks, the second Vice President of the NAACP; we have Dr. Patton who's the Superintendent of Collier County Schools. Collier County Schools employs 7,000 people that serve our children. We have Jace Kentner, the Director of Collier County Business February 3, 2017 Page 3 and Economic Development; we have Frank Halas, Former Commissioner of the Second District; we have Norm Feeder, Commissioner, North Collier Fire Control District; we've Michael Dalby, who is the Chairman of the Greater Naples Chamber of Commerce; and we have Steve Sanderson, President of the United Way. And as you can see by the people that I mentioned, and certainly by all of you, this a lot more than just a problem of the Commission. This is an Economic Development Community/Countywide problem challenge that we are delighted to have the Urban Land Institute here to give us some ideas. Thank you very much. Item #2 OPENING REMARKS – KIM GRANT, COMMUNITY AND HUMAN SERVICES DIVISION DIRECTOR MR. OCHS: Madam Chair, let's proceed with this morning's agenda. We're pleased this morning to introduce Kim Grant, our Division Director for Community and Human Services. Kim and her staff, as you know, under your direction and guidance, are working this entire year towards the completion of a Community Housing Plan for Collier County. Today's obviously an important milestone in that effort, and Kim will begin the presentation. MS. GRANT: Good morning, Commissioners, members of the public. Again, I'm Kim Grant, Division Director for Community and Human Services. This is a public meeting to hear the results of a week-long Urban Land Institute Advisory Services Panel. These are the preliminary February 3, 2017 Page 4 recommendations, and they're going to talk to us about housing and affordable housing and their recommendations for our community to consider to address the needs that have been identified. This is, as has been mentioned, a continuation of approximately a two-year process headed towards development of a housing plan for our community. The goal of the engagement with the ULI panel has been to obtain an unbiased view of the current situation and for them to provide us unbiased recommendations on strategies, policies, or other directions the county may consider taking. The panel week has consisted of tours of the entire county, one very well attended public reception on Monday evening. Approximately 90 individuals were interviewed throughout the week by the panel, and then the panel went off to their deliberations, and they're here this morning to give us their recommendations. The people who were selected for interviews were selected by the Affordable Housing Advisory Committee and the Stakeholder Committee, both committees this board has appointed to assist us in this project. This morning the ULI group -- the ULI panel will present their findings. Following that will be a question-and-answer period that will be moderated by the ULI team. At this time I would like to introduce to you the chair of the ULI advisory team that's been here this week, and he will then lead on with the presentation. Item #3 URBAN LAND INSTITUTE ADVISORY SERVICES PANEL PRELIMINARY REPORT PRESENTATION BY PHILIP PAYNE, ULI PANEL CHAIR February 3, 2017 Page 5 The Chair of the panel this week is Philip Payne. He is the Principal and CEO of Ginkgo Residential in Charlotte, North Carolina, and for over 25 years, Mr. Payne's primary focus has been on the development, acquisition, rehabilitation, and management of middle-market or workforce multifamily housing. With that, Mr. Payne. MR. PAYNE: Thank you. Don't you love this when your computer shuts down when you're waiting to talk? Okay. On behalf of the Urban Land Institute and this panel, I want to thank our sponsor, the Board of County Commissioners for Collier County, Penny Taylor, Donna Fiala, Andy Solis, Burt Saunders, and William McDaniel, as well the City of Naples, the City of Marco Island, Everglades City, the Collier County Affordable Housing Advisory Committee, and the Community Housing Plan Stakeholders Committee for inviting us and for the community at large for being so warm and welcoming. While it has been a bit colder than any of us expected this week, we have -- and we have essentially been locked in a conference room for much of the week -- we did get to tour the whole county, the whole community, and we also managed to sample some of your finest restaurants. We will all go home from this trip with fond memories of the week and, unfortunately, a few extra pounds. In short, we've had a wonderful time, and we want to thank you for having us. I especially want to thank and praise Kim Grant, Cormac Giblin, and the rest of the county staff for the time and effort they have put in devoted to helping us with this project. The briefing book they supplied us with was one of the best I've ever seen. In addition, I want to express our appreciation to Steve Hruby and Nick Kouleharis for their assistance and support throughout our February 3, 2017 Page 6 engagement. And, lastly, I want to especially thank Beth Silverman, who is the Senior Director for the Education Advisory Services Group at ULI who served as our Project Manager for this engagement, and Steven Gu, an associate for the Advisory Services Group at ULI, who provided research and logistical support throughout the week. Without them, we would not have been capable of getting this done in the time frame that we were on. The Urban Land Institute is an 80-year-old institution dedicated to providing leadership in the responsible use of land and creating and sustaining thriving communities worldwide. At present we have approximately 40,000 members that represent every single possible discipline you can think of related to the use of land and development. Our culture is one of sharing knowledge and expertise with the goal of improving the overall performance of our members and the quality of the projects and communities in which they work. Our services include original research, publications, educational meetings and seminars, and national advisory service panels, such as the one we're doing here. We were invited to conduct this advisory service panel to study housing affordability needs in Collier County. The panelists have spent the last week exploring how the county can best address its housing affordability needs with a strategy that considers -- no, back one. I'm sorry, Steven. I can't see that far. The importance of having a balanced supply of housing, major obstacles to producing and sustaining affordable and workforce housing and measures to mitigate those obstacles, stakeholders' perceptions of affordable and workforce housing and the existing tools and programs that are in place to address these issues, how public policy can encourage redevelopment of underutilized areas, and what policies and best practices will apply in Collier County. February 3, 2017 Page 7 At this time I want to reduce (sic) the other panelists. It is important to note that the panelists have donated their time to this project. They were chosen to serve on this panel because their background and expertise matched the needs of the panel. None of them have done work in this area. None of them are currently doing work in this area. And, in fact, they are prohibited from working in this area for a year after the completion of this panel all with the goal of making sure they're completely unbiased in the work they're doing. Their willingness to spend a week away from their jobs and their families and to work around the clock is simply a sign of their commitment to giving back to the community and is the essence of ULI's mission of sharing knowledge and expertise for the betterment of the community. All right. John, why don't you start. MR. ORFIELD: John Orfield, BOKAPowell Architects, Dallas, Texas. MS. McMANUS: Lacy McManus, Greater New Orleans, Inc. We're the Economic Alliance for the 10-parish Greater New Orleans region. MS. CHAPMAN: I'm Hilary Chapman. I'm the housing Program Manager for the Metropolitan Washington Council of Government. It's in Washington, D.C. MS. WRIGHT: I'm Cassie Wright with Urban Ventures, a Real Estate Developer from Denver, Colorado, that specializes in mixed income housing developments. MR. COLGAN: Ian Colgan with the Oklahoma City Housing Authority. MS. FIEBE: Joanne Fiebe with the -- sorry, Tampa, Florida, and I work for USF, and I'm a Community Revitalization Planner. MR. PAYNE: The process by which this panel worked has followed a method that's been developed by ULI over the last 47 years. February 3, 2017 Page 8 During that period, ULI's conducted approximately 600 of these panels and has really developed a procedure that ensures that we can get through the week and end up with something to say this morning. We began on Sunday with a tour of the more urban areas of the city, and then on Monday we spent most of the day touring the more rural parts of the county. On both Sunday and Monday we had dinners, and then a reception on Tuesday with members of the local community which were for us, actually, working events where we tried to -- attempted to learn the thoughts and attitudes of the community toward this issue. On Tuesday we interviewed approximately 90 people on the issue. Wednesday and Thursday we discussed, debated, eventually reached a consensus, and then wrote the presentation you're about to hear. The typical workday for these panelists started at eight in the morning and ran to somewhere around 11 at night. I'm proud to say we did not have a single night over midnight, which is unusual, so we did well this week. As panel chair, I am both thankful for and amazed at the dedication, energy, and endurance displayed by our panelists. Throughout the week, we repeatedly heard how unique Naples and Collier County are, and the truth is, we agree. This is clearly one of the most beautiful places in the world. It is one of the few places I have ever been where the word "paradise" is an appropriate description. But while the community is unique, the issue of housing and affordability is not. In fact, virtually every community in the nation is, to some degree, struggling with this issue. This is especially true in retirement and resort communities which have significant numbers of service-level jobs and very high real estate values. A vibrant -- a variety of housing options that are affordable to all segments of the market is critical for creating a vibrant and sustainable February 3, 2017 Page 9 community. A few years ago I was privileged to serve on a ULI panel in Northern Colorado. The impetus for the panel was a thousand-year flood that occurred in 2013 which profoundly impacted the neighborhoods -- communities of Estes Park, Loveland, and Fort Collins. This was a flood of truly Biblical proportions where a storm system settled over the area, and it rained literally for seven days and seven nights. The result was an erosive flood that wiped out substantial portions of the only road between Estes Park, which sits at the entrance of Rocky Mountains National Park, and Loveland, which is located at the bottom of the mountain. Much like Naples, Estes Park over the past 30 years has evolved from a small mountain town to a high-end resort and retirement community characterized by a significant number of service jobs and extremely high real estate values. When the road was washed out by the flood, Estes Park discovered, to its surprise, that due to the lack of affordable housing, virtually all of their emergency responders, policemen, firemen, nurses, young doctors, teachers, service and hospitality workers were unable to make their detail trek from Loveland, where they lived, to Estes Park. As a result, they were required (sic) a great expense to establish a helicopter service that shuttled people back and forth from Loveland to Estes Park for approximately a year while the road was rebuilt. This served as their wake-up call for the need to address the issue of housing affordability. To its credit, Collier County is not in the same situation as Estes Park. The issue of housing affordability has been a subject of conversation and study here for years. The panel is quite impressed with the time, effort, and quality of work that has been invested in this subject. Many of the February 3, 2017 Page 10 recommendations we will have today will mirror and, in fact, ratify the work that has already been done. The real need, in the opinion of the panel, in Collier County is for action and implementation. This will require political will and leadership. Not all of our recommendations will be universally popular with the community at large, but they are, in our opinion, essential for the long-term viability and sustainability of Naples and Collier County. This will also require the understanding and commitment of the community at large. Naples and Collier County are, indeed, paradise, but to keep it so will require adapting and preparing for the growth that is certain to occur. An integral part of this will be developing a plan and working to ensure housing that is affordable to all of your citizens. There are five sort of core strategies that we're going to explore with you today: Regulation in growth -- regulation in governance, increased supply, to maintain and restore existing supply, enhance transportation options, and the issue of wages. At this point I'm going to turn the session over to our panelists to address both the issue of housing affordability and possible solutions. Following the completion of their presentations, we'll open this up for questions and comments. MR. COLGAN: So during the panel's discussions with the community, we found what we think was consensus around the problems of housing affordability, namely that there was an issue regarding this topic; however, we also found that the various definitions and perceptions of affordable housing created a scenario where it was difficult to communicate and effectively understand this problem, leaving confusing and misaligned goals as to what the problem is and how to address it. Considering this, the panel recommends that we reframe the problem of affordable housing or housing affordability around a February 3, 2017 Page 11 concept called "cost burden," which we think is a more appropriate term to reference this topic. Cost burden is effective because it doesn't focus on one's income. It focuses on one's ability to afford housing in a local market regardless of their income. It's a long-established term that can be modified based on local circumstances but, essentially, if a household pays more than 30 percent of its gross income towards housing, it is considered cost burdened. If it pays more than 50 percent, it's considered severely cost burdened. Typically, policy should -- from a policy standpoint to create a sustainable community, that community should look -- examine ways to mitigate cost burden, understanding that some people choose to pay more for their home but then many are involuntarily cost burdened, and to prevent severe cost burden. Locally, in Collier County, two out of five households are cost burdened, and one out of every five households is severely cost burdened. But who exactly is cost burdened? It's people from across the community in many different sectors and circumstances. In particular, we grouped five core areas of workers that we think are of particular note. Those are clustered in public safety, healthcare, education, service workers, and entry/middle level professionals. Together these job sectors make up more than 50 percent of the county's labor force. And while there are variances in terms of the income ranges and household sizes that define people who work in these trades, generally, they make, collectively, up to about 150 percent of area median income and have cost-burden issues attributed to those sectors. They represent first responders, educators of children, healthcare providers but, just as importantly, people in these groups are responsible for the high-quality lifestyle that makes Collier County such a special place. February 3, 2017 Page 12 We took a representative sample of jobs within these sectors. Hopefully you can read that, or just know that they considered nurses, teachers, firefighters, service workers, et cetera, and we compared their typical entry and median-level incomes as a representative example against the median gross rent and the median sales price in 2015. And by the chart, even if you can't read it, you can look at the colors; green means not cost burdened, orange is middle cost burdened, and red is severely cost burdened and just, with our representative analysis, see that a substantial amount of just the sample we took will be cost burdened, especially when -- the ability to afford a home. But there's still a substantial amount of cost burden when you take the median sales price and cut it in half for about $200,000. Importantly -- it's also important to mention another sector which included low to moderate income seniors, mental health and support services, households that require those, and very low income residents. These residents are in the community, and there is almost -- there is virtually no effective housing supply to serve these residents, forcing many of them to leave the county or, essentially, live without good access to housing and services. It's important to consider a wraparound holistic approach particularly focusing on the sectors that we pull out, but also these residents as well. We want to go beyond the surface of cost burden because it's not just about one's income compared to housing price or rent. Cost burden implies much more, and there are local factors that make Collier County -- that exacerbate the issue of cost burdened locally. These include homeowners insurance, which is among the highest in Florida; flood insurance that covers a substantial part of the county; typical HOA fees; all things that, when added on to an opportunity to own a home, reduce the purchasing power of a given household or individual. February 3, 2017 Page 13 Additionally, in many ways, Collier County is more expensive than neighboring communities with more -- groceries being 11 percent and restaurants generally being 22 percent more expensive than Fort Myers. Even more crucially important is the issue of transportation. To properly address housing affordability and, therefore, cost burden, one must also consider the topic of transportation, because it is those two factors combined that make up a household -- the majority of a household's expenditures. For a household making 90 to 100 percent of area median income, the housing and transportation costs are estimated by the Center for Neighborhood Technology to be 75 percent of gross income. And based on that amount, they estimate that only 15 percent of residential neighborhoods within the county are accessible to people who make that amount. That 90 to 100 percent of AMI is pretty much that middle ground of the workforce that we showed earlier. Given your location near employment centers, transportation costs can go up 5 to 10 percent of your gross income depending how far you go. We know that one-third of commuters already travel 30 or more minutes to work. Together, these come together to show an issue not only of cost burden and affordability, but also recruitment and retention of labor force in all these sectors. What's also important to consider is -- beyond affordability is availability and quality. Homes and rental units at the lower end of the price span may be affordable but they're also indicative of potential quality and maintenance issues that provide situations that are not ideal for many people trying to just afford housing within the community. But when you consider availability, that's even more important, because one can quantify the total number of units possibly available to certain income levels, but what's just as important is what is available in the market at any given time. February 3, 2017 Page 14 We took a snapshot of what was on the market at any given time for those who make 80 to 100 percent of area median income. It's not a perfect example. It's representative of what we could find easily on the Internet just as researching for homes. We found that single-family homes available, there are 125; less than 4 percent of the total inventory of homes on the market. Between 65 and 250 condominiums, most of which were one and two bedrooms, which the supply may be reduced because we did not consider HOA fees in this analysis. But, more importantly, we found that for single-family and condominium rentals there were zero below $1,500 a month, and only 23 units, all of which were one-bedroom apartments, that were available to this income. We would recommend that any housing plan look at data from the past to determine these issues of availability on top of just raw cost burden and affordability. Taken together, we get what we're -- we used the term the Hodge's University example. This example has been mentioned to us many, many times during our time here where police officers, sheriff's deputies live in Lee County, can take their car home, but because they live in Lee County, park at Hodge's University, and then continue on in their own personal car. This anecdote matches up with data to show that it's an indicative issue relative not just to the lower income tiers of the community but to the very people who are responsible for delivering services within the community and the fact that it's a combination of housing and transportation costs that create this issue. So when we consider the future, we must consider that the county population growth is anticipated at 58,000 households by 2040. It's unknown whether the proportion cost burden, the percentage, will change over that time. But if it stays the same, 11,000 more households will exist in Collier County that are severely cost burdened, not just cost burdened. February 3, 2017 Page 15 Median home sales prices and rental rates are at peak or beyond peak prerecession levels, and there's no indication that growth will abate or that the demand for high-tier households and rental units will slow, creating an issue for many. There are also additional threats to consider. Interest rates are on the rise. Just a 1 percent rise in the interest rate can impact 5 percent or more of one's affordability for a home. Gas prices have been significantly low. The impact of a dollar or two dollars in gas prices, and so many people, so many residents already live farther out from the community, could be substantial. So the challenge we hope to address is how does Collier County address both its existing problem and the future need. MS. McMANUS: So with that, what we tried to assess this week was the vision: Who does Collier County want to be when you grow up? What's the future look like? So I think Ian did a really good job of showing you and illustrating some of the raw numbers around that, but we wanted to go a little bit of a level deeper and try to understand what do you want in your community moving forward. With these various households and individuals moving in, this influx of change coming upon you, what do you want to be and what do you want to look like? And although we heard a wide consensus on the issue of housing affordability, what we didn't hear a firm consensus around was that vision; who you want to be and what you want to be. We did, however, hear some key themes, some issues that folks are concerned with, some aspects and qualities that folks clearly love and want to continue to grow and thrive. And we wanted to make you aware of those, because these were all things that we took into very careful consideration as we were thinking through our recommendations for affordable housing. So those themes included maintaining Collier County's reputation as a premiere tourist destination. That's clearly a huge source of your February 3, 2017 Page 16 economy currently and a source of pride as well for the community. Growing and maintaining your strong real estate base and particularly retaining steady values in that sector. Also retaining a safe and healthy community. We heard often about the Blue Zones and how thrilled folks were with the growing push towards healthier lifestyles and more mobility options. Enhancing and sustaining a visually attractive and aesthetically pleasing community was a clear priority as well. We know you love your medians and beautiful landscape lawns, honestly, we were pretty stunned by on our morning jogs. Ensuring an efficient transportation system was not only a goal moving forward, but also a concern. We heard a lot of concerns and a lot of fears over the current traffic congestion problems that the county's already facing and those concerns continuing to grow as well as the county grows. Diversifying the local economy was a theme that we heard folks talk about often but, frankly, we didn't hear a lot of deep detail from a wide number of people around how that was going to happen or what that was going to look like. And given the current workforce issues that are facing the county in regards to affordability of housing, lifestyle, and cost of living, this is something that needs to be very carefully considered moving forward. So given that there is potentially some questions around what the vision of Collier County is moving forward, we did want to give a few snapshots of what we thought might be inevitable outcomes or scenarios given a future with action on housing affordability and a future without action. So these scenarios are certainly not prescriptive and, obviously, it just sets sort of two bookends of the spectrum. There's a variety of interventions and a variety of pathways that can be taken between these two bookends, but we did want to paint a picture of what we February 3, 2017 Page 17 thought could happen with specific interventions around housing affordability and what would likely not happen as a result of continued inaction on the subject. So in a future without action what we really see is a continued loss of workforce and talent, a "brain drain," if you will, out of the county, and I use this phrase specifically because it's one we heard often when we were talking with the over 90 stakeholders or so that we interviewed and discussed. As a result, you'll have just exacerbation of the Hodges University example with folks maybe not leaving their cars in university parking lots, but certainly experiencing longer commutes, greater distances, incurring greater costs to their households as a result of those commutes, and also greater stress upon your traffic systems, greater congestion as well. As a result, your transportation costs and costs of maintaining that infrastructure are going to rise. Also, you're going to have a decreased tax revenue base. If you have a middle class that's working in the county but actually living outside the county, they're going to be going to the grocery stores where they live near their neighborhoods. They're going to be picking up their dry-cleaning probably in those neighborhoods, going to the barber in those neighborhoods, ordering pizza and going to the local restaurants in the areas near where they live, and Collier County will be missing out on all those tax revenues and returns while bearing the brunt and the burden of the stress on the transportation systems. As a result, the diminished attraction potential for labor and industry will come online. If employers don't believe that they can get the appropriate qualified talent and workforce base here in Collier County, they will be less likely to move to Collier County and move, instead, to the areas where workforce is plentiful and there is a labor supply pipeline for them to access. However, there's also the future with action. Again, not February 3, 2017 Page 18 prescriptive, but we do feel that with appropriate interventions and thought and consideration around affordability issues, Collier County is really poised to continue to sustain an employment base that actually lives here within the county. As a result, they will be spending their money and time in the county. Not only their tax dollars going to the grocery stores, pharmacies, et cetera, but also actually spending their time in county areas where they work and play, increasing the overall sense of civic engagement. You'll have a stronger middle class and labor pool as a result, with greater attraction potential for business and industry and reduce stress on transportation systems as well. So, again, those are just two ends of the spectrum as the panel sees them, but we wanted you to be aware of the potential areas that you could be growing into and could be evolving into, depending on what actions are taken in the near future. So a vision for Collier County: As we said, we know growth is certainly on the horizon. So why is it important now to really lock in who you want to be and what you want to do and how you want to get there? Well, there's a number of reasons, and I think it really goes back to what Ian just illustrated and exemplified a few slides ago when he talked about the workforce base that is currently cost burdened here in the county. These are the people who are educating your children, who are making your streets safer, who are making your boulevards more beautiful, the folks who make Collier County so special and so magical, who give you that perfect blend of Mayberry and Rodeo Drive. They're the folks who can no longer live here in Collier County. CHAIRMAN TAYLOR: I like that. That's great. MS. McMANUS: And it's going to continue. And it's difficult to gauge, however, how you create the appropriate policies, how you create the appropriate priorities and incentives when you don't understand what those people need and want February 3, 2017 Page 19 as well as the rest of the folks who are living here in the county. There needs to be a widespread consensus and understanding of that vision so that you, as commissioners and stakeholders here in this room, understand where to act, where to invest, what to do in the events and circumstances of the growth that is certainly coming your way. As we feel -- the panel sees the status quo in Collier County is only going to serve a limited number of people for a limited amount of time and that you have an option here before you where you can either lead this growth or this growth can lead you. You can either take the future by the reins now and begin implementing, proactively, the solutions and interventions that are needed to manage what could be a crisis, cutting it off at the quick or evolve with it, and then have to deal with the results and ramifications later on in the future in a reactive capacity. So how do you get there? How do you get to this vision creation? How do you get to this point? Well, frankly, the panel doesn't feel that it is our job to lock this vision in for you. This should be a self-directed exercise. And, frankly, looking at the people in this room today, looking at the folks who were joining us on Sunday night at the community reception, you have so much incredible stakeholder engagement. You have a number of steering committees, you have a number of task forces, you have really incredible homeowners associations, you have a really fantastic network and platform already in place to start harnessing what the vision of the future looks like, what folks in this community actually want their future to be. Therefore, we feel that it should very much be a self-directed exercise inclusive of all stakeholders, all segments of your very diverse county, and really reflective of their needs and concerns moving forward. We do, however, have a few recommendations on what that February 3, 2017 Page 20 vision should include. Obviously, key considerations around quality of life. The healthy community aspects, again, were something that we heard very often ensuring that those specific qualities are uplifted into a vision we think is really critical. A wide range of housing options across the county is vital as well, and we think any vision that the county creates should be inclusive of that. A thriving economy, whatever that means to you. Whether it's a more diversified tourism base that brings in both the high end and the middle end, whether it's bringing in clean tech and new advanced manufacturing opportunities; all of these are options that you can pursue in the future. Driving that home and really diving into what that means and looks like should be explored in a visioning process. Accessible transportation options: I think as we've mentioned several times, the stress and congestion within your traffic systems are a clear concern; addressing that through a vision, what that looks like. Whether it's increased public transit, whether it's potential bus rapid transit, increased mobility options, those things should be explored and identified. What does Collier County want to look like in terms of how it moves people across the county? Also clear directives to governing entities. Give the folks who've been doing so much legwork and so much extraordinary research and data diving on a regular basis, give them a little bit of a directive; where should they be going in their work, in their policies, investments and implementations. So with that, we have some recommendations for you. MS. CHAPMAN: Okay. Thank you, Lacy. So how can Collier County meet its current and future housing needs? One component of achieving that goal is adding to the existing supply of housing available to households at a greater variety of incomes than currently exists. I have good news to share, and that is that several strategies February 3, 2017 Page 21 include simply making improvements to existing procedures and vehicles rather than creating new programs from whole cloth. There is no need to invent -- reinvent the wheel when there are existing structures that support the development of more affordable housing. A housing trust fund is an example of a national best practice that Collier County currently has at its disposal but is not currently using. There are more than 700 housing trust funds nationwide, and they are often a critical element of a jurisdiction's overall housing policy. Collier County's Housing Trust Fund should be sustainable and predictable given the long planning process involved in housing development. Finding revenue for a housing trust fund is what can make them challenging. Other jurisdictions have funded their trust funds through sales tax, real estate transfer taxes, linkage fees as part of a zoning ordinance, inclusionary zoning-in-lieu fees, condominium conversion fees, demolition fees, and hotel and motel taxes. The rest and most common revenue source for a county housing trust fund is a document recording fee paid, a fee paid upon filing various types of official documents with the state or local government. This is one of the few revenue sources that most counties can commit. Existing developer incentives have clearly failed to change existing development patterns and allow for greater production of housing affordable to a broad range of low- and moderate-income households. These incentives should be reasonable, flexible, and allow for creative partnerships to produce new affordable homes. The ULI panel recommends that bonus density should be reassessed to allow for more mixed-use development and greater efficiency of land use throughout the county. The issue will be discussed in greater length by my colleague, Joanne, but this program needs revision to allow for higher densities to ensure that additional mixed income, mixed tenure, meaning rental as well as February 3, 2017 Page 22 homeownership developments, are financially feasible. Examples of this type of increased density includes Bayfront and Naples Square at more than 20 units an acre rather than the average two-and-a-half in other residential communities. The density can also be flexible to allow for complementary adjacent uses and to reflect difference preferences in the urban and rural areas. Impact fees are an often cited source of frustration to those creating both market rate and affordable housing products. The high fee structure, however, reflects the limited sources available to Collier County to support development of all types. The ULI panel recommends a review of the impact fee structure to incentivize a spectrum of housing types and sizes in light of overall square footage. Further, the ULI panel recommends that the current impact fee deferral program cover all types of income-restricted housing regardless of whether it is single-family, multifamily, senior, or special-needs housing. Expedited permitting is already also currently in place for affordable housing developments. It could be improved to ensure that it includes multifamily as well as single-family. In addition to making enhancements to existing tools to create affordable housing, ULI panel recommends tailoring several national best practices to Collier County's unique characteristics in order to supplement your ability to meet your current and future housing needs. Inclusionary zoning is a really critical tool used successfully to add the supply of affordable housing options by linking to the creation of market-rate housing. Inclusionary housing programs have been used across the country since 1972 and vary greatly in terms of their structure and requirements. And given the underutilization of the density bonus program currently in place, the county needs to consider a more proactive February 3, 2017 Page 23 means by which to increase the supply of housing for all of its residents. And while these programs may not produce a great volume of units, it has the unique ability to provide choices for residents to live in communities with better access to transit jobs and schools. One example that may be worth examining in greater depth for its applicability to Collier County include Montgomery County, Maryland's, ordinance, which is widely recognized as one of the most successful of its kind. The moderately priced dwelling unit program, or MPDU program, has produced more than 10,000 affordable housing units just during its first 25 years in existence. The program also provided a means for its housing authority and other non-profit housing groups to purchase additional units as well. The MPDU program includes an innovative sliding scale density program from 12-and-a-half percent to 22 percent for bonus density depending on the number of affordable units produced. Units remain affordable for 30 years for homeownership and 99 for rental. When the control period expires, housing authority and other qualified nonprofits has the opportunity to purchase these units to set aside for rentals that will always remain in the county's affordable housing stock. It's important to note that IZ programs can be flexible in implementation to fit the needs of the county and different project types. For example, Collier County may want to allow for the provision of inclusionary units to be produced offsite, payment for units via fee in lieu to the housing trust fund, or by allowing partnerships between for-profit and nonprofit developers to create units that best fit their respective business models and expertise. Mitigating the cost of land, something that is fixed, limited, and a significant challenge to all developers in Collier County, can be addressed through vehicles such as a community land trust as well as a February 3, 2017 Page 24 program to designate public land for public good, such as affordable housing. Community land trusts operate throughout the country. They're usually a non-profit community-based organization whose mission is to provide affordable housing in perpetuity by owning land and leasing it to those who live in the houses built on that land. Community land trusts allow for successful homeownership opportunities for generations of lower-income families. A related structure -- approach to the community land trust to consider a ground lease is -- both dramatically reduces land cost to the developer, ensures long-term affordability for the housing on that site. And the City of Naples has used this approach successfully in at least two instances that we're aware of, as Jasmine Cay and the Carver Apartments. Another strategy the county could implement immediately is to undertake a review of the currently land inventory to identify parcels that may be available for housing development opportunities. Through a cross-agency strategy, we should seek to find ways to engage with community stakeholders to identify possible sites and building intensities. A related part of using public land for public good is to co-locate affordable housing with the renovation or creation of new public facilities. One successful example includes building affordable housing for seniors adjacent to a new public library; if you can see that little tiny picture up there, this development is called the Bonifant in Silver Spring. And last, but not least, it's important to note that it's not the sole responsibility of either the government or the private sector to provide for the housing needs of all residents. The best way to produce housing effectively that meets a broad rather than narrow range of housing needs is through effective public/private partnerships. And some of February 3, 2017 Page 25 the key elements of that include a shared vision, clear roles and responsibilities, consistent and coordinated leadership, and frequent communication. Just mention one other -- one potential opportunity for Collier County to add to its supply of affordable housing is to take advantage of vacant underutilized retail sites along major transportation corridors through conversion to multifamily residential buildings. This could possibly accomplish several goals simultaneously, including returning underperforming buildings to tax rolls and generating revenue for the county, providing an option for rental-unit apartments along existing transportation corridors without the need to create new infrastructure. The county's rental -- regular rental housing surveys have found vacancy rates in multifamily rental buildings to be extremely low, at 1 to 2 percent, indicating a significant unmet demand for rental housing options. Next slide. One of the most cost effective and efficient means of providing affordable housing is to maintain the existing supply. The National Housing Trust finds that renovating the existing property can be one-third to one-half as expensive as new construction. Renovating older properties does not require new land for development, takes advantage of existing infrastructure, and reduces construction waste. There's an existing renovation code available to developers looking to refurbish existing properties. The county should encourage the use of this code through incentives mentioned previously such as expedited permitting and inspections and by reducing or deferring the associated fees. The county can identify opportunities proactively by tracking properties with expiring affordability covenants, such as -- using such resources as the National Housing Preservation Database to ensure that existing rental properties remain affordable for the long term. February 3, 2017 Page 26 The county should also explore implementing a right of first refusal to purchase, either by the county or by a qualified nonprofit partner, expiring used properties to prevent the loss of any housing that is currently affordable to low- and moderate-income residents, and that may also mitigate the potential effects of displacement. With that, I'm going to hand it over to my next colleague. MS. FIEBE: So another set of implementation recommendations relates to changes to existing regulations and the way the county is governed. A lot of quality planning work is taking place in Collier County; however, the panel recognizes that there are inherent difficulties, unnecessary costs, and a lack of predictability in developing affordable housing projects under the current county system. While external market forces play a large role, the county could reduce approval times and costs while increasing predictability. This can be achieved in three parts: First, updating regulations to encourage affordable housing in desired areas; second, permitting higher densities within certain activity centers for projects that include affordable housing; and, third, revising the governance structure to streamline the process. Good codes are the foundation upon which great communities are built; however, current land development codes in Collier do not consistently support growth in existing urbanized areas, those generally west of Collier Parkway (sic). Much of the Land Development Code is geared towards large-scale planned unit developments. Conversely, small-scale redevelopment, and infill sites in already developed areas are challenging to consolidate, may need to address adjacent uses and neighborhood concerns, and often require additional density to make financially feasible. While difficult to develop, these projects can yield great benefits February 3, 2017 Page 27 by placing residents in close proximity to existing transit, employment, and shopping. So the first recommendation is to perform a comprehensive rewrite of the Land Development Code to differentiate between urban and rural areas. While Collier County routinely amends portions of its Land Development Code, consideration should be given to implementing a smart code system to, in part, encourage the development of affordable and mixed-income housing. Smart codes are designed to differentiate between urban and rural conditions, reflecting different characteristics and priorities found across the county. One focus should be to stimulate and accommodate infill growth while encouraging affordable housing. This can be accomplished through residential density bonuses, mixed-use height bonuses, reductions in parking requirements, modifications to buffers, and other incentive-based measures. In addition to creating a smart code, there are a number of revisions to existing codes that can make it easier to develop affordable units, specifically in the urban areas, such as reducing parking standards. Consider establishing a standard percentage reduction in minimum parking requirements for the urban portions of the county where transit services, opportunities to walk to shopping and employment, or where shared parking opportunities exist. The second is to create well-defined compatibility, building massing, and buffer standards. The panel heard about a number of recent development applications where compatibility issues with adjacent neighborhoods feel distrust between the community and developers. These conflicts are, in part, due to a lack of clear expectations as to what should be required. For infill projects that include affordable housing, this lack of certainty causes concerns for homeowners about property values and February 3, 2017 Page 28 existing views while also unduly burdening developers. Another is to permit guesthouses as accessory dwelling units. There are a number of existing guest homes, predominately in the eastern portions of the county that, if permitted to be used as rentals, could have an immediate impact on the supply of affordable rental housing. Additional rental income could also have a positive impact for those families who rent the units. And lastly in this section is to encourage efficient site infrastructure requirements. There are a number of onerous land development expectations that we heard about through our interviews that add unnecessary expense to projects. These requirements further exacerbate the challenges to providing affordable units. Examples include certain streetscape requirements, right-of-way commitments, and others that sometimes are even more burdensome than regulations in Lee County. So the second set of recommendations relate to targeting certain activity centers for significantly higher density with the provision of affordable housing. Collier currently has high concentrations of housing in particularly low-density areas of the county. A healthy mixed-income community should have higher densities to promote a walkable environment but not high concentrations of low-income housing in one place. Mixed-income communities are a market-based approach that include diverse housing for people at a range of income levels. Mixed-income communities are healthier than homogenous low-income neighborhoods because they prevent blight, support upward mobility, and help retain property values. So the first of these is to strengthen the affordable housing density bonus program. Current maximum residential densities permitted in the county is generally 16 units to the acre and only within specified activity centers and when affordable housing is provided. February 3, 2017 Page 29 While maximum buildout density is frequently not achieved in large planned unit developments, these smaller infill sites in the western portions of the county will need additional density to be financially feasible. For example, 30 units to the acre may be a more realistic maximum density to provide incentive market-rate developers to provide affordable housing. The second is to identify strategic opportunity sites, consider further density increases in limited areas -- urban areas such as the Bayshore/Gateway Triangle CRA where high-quality transit facilities along transportation corridors could be provided. And I just want to briefly explain the transportation corridors. That map is very -- is definitely too small, but the purple lines are what -- we sort of went through an exercise of looking at a framework for the county and where you might want to look at transportation corridors as they relate to where the activity centers are in the county. So there could be a broader exercise that looks at land use, densities, transportation corridors, and affordable housing altogether. Finally, the third set of -- the third set of recommendations is to streamline the project approval process when affordable housing is provided. And the first of these is to expedite plan review and increase administrative approval for select cases. While there is expedited construction permit review process, this should be expanded to include Comprehensive Plan amendments and zoning approvals. Comprehensive Plan amendments could also be reviewed concurrently with zoning changes for projects that include affordable housing. Consideration should also be given to increasing the number of administrative approvals that do not require Board of County Commission approval to streamline the process and provide greater certainty. And, finally, land use decisions are largely decided in Collier, by February 3, 2017 Page 30 the five-member Board of County Commissioners here in front of us, by supermajority rule. According to developers, there is a great deal of uncertainty in knowing whether or not a zoning application will be approved due to the ability for only two board members to veto a project. For projects that include affordable housing, this lack of certainty is a key impediment to project viability. Additionally, while all board members are charged at looking at the county as a whole in general, there is no at-large board members who specifically are charged with overseeing countywide issues. The panel recommends to change to a seven-member board and reducing the supermajority to a five-of-seven approval process. If adding new board members is not feasible, reducing the supermajority requirement to a simple majority is also recommended. Thank you. MR. ORFIELD: So the first we showed you, Ian talked about the analysis of your need, and we think that there is that, and then we've talked about, the panel has, both Hilary and Joanne have talked about what are some of the methodical and the procedural things that we can do to make the county more encouraging of affordable housing, and we've also talked about the vision that we need to do. But the good question might be is what does all that mean? What does that actually look like? So we thought the next section might dedicate just a little bit of time to understanding what the face of housing might be, what the face of affordable housing might be in your county in the future. So we've got together seven case studies. There's a range of different ownership options. Some of them are for sale, some of them ownership, some of them are rental. There's a variety of scales as well. Some of them are quite large, and then some are very small and single focused. We also, then, have a variety of aesthetics, and these are a series February 3, 2017 Page 31 of examples from around the country. So part of the aesthetic variation relates to where they are in the country and the traditions and the architectural heritage of those places, but they also relate to where they are in the city. And so even within the city of Collier -- or the county, we would expect that there would be a range of different expressions. What's appropriate closer to the beach or to the City of Naples is not necessarily appropriate for the eastern side of the county. So with that, though, it's also important to realize that these examples share some common values, values that we think would make a rich environment for Collier County, and some of those is that the units all have a residential scale. They feel like places where people live, and there's a sense of action and variety to the masses. They have an inclusion of meaningful detail, and I think that's really an important thing. That's part of what makes Collier County so wonderful is when you walk down the street, the variety and interest in the houses that they have, the variety in the landscaping. So all of those things you'll see in these examples. They also have kind of a rich tradition, and there's different in each slide of what the transitional space is. Is there a porch? Is there an arcade? Is there a balcony? How do those transitions from inside to outside help establish the public community as well as the private community? There's also a variety of forms that you'll see in all of these. They're not single-minded in terms of a repetitious element. There's a lot of activity going on, and it helps people identify with their place where they live, their unique experience. And then, finally, perhaps the most important thing is these projects are all interested in making a public space. So in addition to the residential unit, which is very important where people live, these projects all sense the obligation that they have to the community where February 3, 2017 Page 32 there -- it's not just the residence, but how these residences all go to make the public forum. So the first one you see is Cassidy Ridge in Telluride. And Cassidy Ridge -- Telluride, in general, is a much, much smaller place, but it does share some common functions or common attributes with Collier County. It is an indescribably beautiful place which, by virtue of its geography, is landlocked. That, in itself, drives real estate values to a very high level. There, typically sales are between $1,000 and $1,500 a square foot. That, obviously, then makes affordable housing very much in demand, and typically the city of Telluride and Mountain Village, which are sister cities, have inclusionary zoning. This is a project that had that inclusionary zoning, and the developer in this case chose to build the required units within the project in the same vocabulary that the rest of their project was built in. The next two projects you'll see are in Indianapolis, and they're single-family. They're not inclusionary zoning. This is partial. They're mixed-use neighborhoods. And one of the things that's particularly interesting about the Martindale is the customizable nature of this development. So there is a base condition for these homes that then could be augmented in terms of both area and amenities depending on the income level and the ability to qualify for the functions. Fall Creek Place and, I should say, the Martindale project as well, both of these have a great kind of variety of forms that really give a lot of character to the space. One of the things that we found most attractive about when -- the panel, when we were reviewing these projects, was kind of a sense of creation of the street, a creation of great transitional spaces so that you'll see kind of porches where people can meet the public, and the public can be greeted by them, but also then the fact that there's a lot of variety. There's not all the same color. February 3, 2017 Page 33 There's a difference in a variety of forms. And we think that within the context of creating a homogenous community, that also creates variety. One of the things that's intriguing about Legends Parks -- and you can see that it's got quite a variety of unit sizes and acreages -- is that the masses here are broken up into a variety of different forms. So we have larger buildings and smaller buildings, townhome units. This helps give a sense of variety and richness to the neighborhood, and there's also some significant elevated outdoor living spaces in this, which I think adds variety as well. Lennox Chase in Raleigh is a slightly different condition; whereas, in the previous projects we're looking at creating a near-town urban context, Lennox Chase is in a bit more suburban location. Because of that, there's an availability of more land. And so one of the things that was a focus on this was creating an overall project -- and it's not very large; it's 37 units. But, actually, that functions as essentially an estate home. So there's -- a different approach is taken to creating a meaningful vocabulary. And because the land is available in this case, there's also an emphasis on exterior spaces and exterior amenities and covered outside spaces. Westlawn Gardens is more dense. It's a very interesting project in the sense that it's a mixed use, but all of the affordable housing in this case is senior housing, and it's created in Milwaukee. One of the things that is really nice is that there's a series of different types of massing units. In this case it feels like the neighborhood was built over time, and it has richness of not being homogenous and yet a series of materials and vocabulary that tie it all together. And the last example, Columbia Park in New Orleans, is a very large and very rich project. It, in two ways, really ties itself neatly to the City of New Orleans. In the first case, it takes the planning principles that have made New Orleans quite rich. Buildings are February 3, 2017 Page 34 brought to the street side, making a vibrant sidewalk and street experience, creating courtyards inside. And, now, one of the benefits to that organization was that the parking was shielded, and you also had kind of a private, secured interior courtyard which helped mitigate the conditions of the neighborhood when it was built. The other great thing that it does is develop a really rich vocabulary that really emphasizes indoor/outdoor living and engages the public as you walk by. And, finally, one of the great benefits to this project is that it's heavily amenitized, and so there's a complete array of retail, theater experiences, public function spaces, and plans for schools. MS. McMANUS: So because the panel is looking at the issue of housing affordability through the lens of cost burden, we wanted to address two issues that we think are really critical to enhancing affordability options here in the county. One of those is transportation. So the Federal Highway Administration recommends or actually has analyzed that the average American household spends about 19 percent of its income on transportation. If that household is in a completely auto-dependent or suburban context where they're taking a car to and from everything, that actually increases to 25 percent of its household budget on transportation. If that household is located near transit corridors, however, and/or a walkable or bikeable environment, that number goes down to 11 percent. So if you're thinking of housing affordability, having a range of transportation options and, as Joanne was saying earlier, really linking those housing options to transit corridors and to transportation options can really increase the affordability and lighten the overall cost burden for a household. So with that in mind, we had a few recommendations around your February 3, 2017 Page 35 transportation systems. The first is really, as Joanne was speaking, looking at how to best locate and target certain areas and pockets of development along transit and transportation corridors. But in addition to that, really looking at some innovative approaches especially given the size of this county, which is huge, for some of your areas like Immokalee and some of the farther more suburban areas, looking at park-and-ride systems, for instance, where folks can go and park their car at a parking lot, at, perhaps, Super Walmart or a dedicated parking lot, leave it there for the day, and either car pool, van pool, or take a bus into a job center or city center. To that end, potentially down the line, exploring bus rapid transit or express lane service. This builds upon a lot of the great work CAT is already doing, trying to really target workforce centers with job centers but in a more direct, expedited fashion. Las Vegas actually has a really great example of bus rapid transit, given that they also have a pretty significant geographic footprint but, obviously, have a very strong tourism economy as well with folks really traveling to the strip and downtown. They have established a BRT service that connects folks in outlying neighborhoods directly into the strip which has minimized their traffic congestion and transportation stress while also really efficiently and cost effectively bringing folks from outlying areas into their job centers. We also recommend that you look at your -- enhancing your bicycle and pedestrian systems. And we were really pleased to see the great planning efforts that have already been undertaken at the MPO and county level and the City of Naples as well really looking at how to ensure greater bicycle and pedestrian safety. Obviously, we discussed already the Blue Zones and the great work and community advocacy going on around those. Figuring out the best ways to ensure that those crash corridors and collision sites that have been identified in some of your safety plans or addressed and prioritizing addressing February 3, 2017 Page 36 those quickly and efficiently is really critical. To that end, we really think that hiring a bicycle and pedestrian coordinator would go a long way in actually drilling down and actually implementing the great recommendations and those plans that you already have, ensuring that there's better signage, potentially some public awareness campaigns, greater education and outreach to law enforcement officials, engineers, et cetera, to ensure the design and implementation of laws and policies goes a little bit further. Lastly, we really think that establishing a secure recurring revenue source for transit is really important to making sure that CAT can continue to meet the needs of Collier County and its residents as the growing need for transit service is likely in the future with the growth projections that we've already discussed. And, finally, promoting a ride-share option. Today with the apps that folks have on their smart phones with online social media connectivity, ride share is easier then ever before to do car pools and van pools safely and efficiently. New Orleans has a great model with a green ride system. Our regional planning commission actually implements -- uses a social media Facebook platform, a really simple way to see if somebody that you already know and are already friends with is headed to Baton Rouge for the day or Lafayette for the weekend, and bum a ride with them. So there's very easy, very cost-effective platforms that are already out there that we would recommend the county explore and look into. So the second of these, I guess you could say, existential issues, if you will, that we looked at around housing affordability from that cost-burden lens was wages. When we looked at some of the jobs that Ian described earlier in the presentation, really, that 50 percent of workforce here in Collier County, a lot of those jobs from the economic development February 3, 2017 Page 37 perspective don't have what we would necessarily describe as career ladders. So, for instance, when you start at an entry-level position in some of those jobs, there isn't necessarily -- there aren't necessarily various rungs that you can move up to a very high-paying, high-wage position. A lot of those cap out relatively midway, shall we say, up the career ladder, to use that analogy. So because the ceiling is relatively low, we feel that the floor needs to be relatively high if you're going to increase affordability here in the county. And as a result, we would really recommend the county explore looking at creating an enhanced minimum wage. This can be done incrementally over time to get to a 13- to $15 an hour standpoint potentially, allowing folks who live and -- who work in the county to live in the county as well. You have here on the screen a number of cities who have already implemented this. We think there's a few ways that you can do this. The first is really looking at how the county can raise that internally for its staff, potentially also then extending that to anyone who contracts with the county and then, lastly, figuring out a way for passing policies to push that upon the private sector potentially as well. MS. WRIGHT: Thanks, Lacy. So you haven't heard a lot of new news, have you? We've said a lot of things that probably you've talked about for many, many years regarding housing affordability in the county. And so what I want to talk about is how you can continue to bolster the programs that are existing here to really communicate your message, to continue conversations both within this room and outside of this room. We believe that the county has done so much work, people in this room have done so much work around housing affordability, but the message is not getting out. So we have a few recommendations around communication and community engagement that we think are critical to really move the February 3, 2017 Page 38 needle. First, the county has already developed an affordable housing database that tracks for-sale and rental units throughout the county; however, we recommend that that be expanded to track units coming online, to track their sunset dates so that the county has a clear understanding of how many affordable units are available at any given time. We recommend that they include specific addresses, bedroom sizes, square footage, rental rates, for-sale rates, and neighborhood location so that everyone knows that affordability is spread throughout the entire county and not concentrated in any one district. We also recommend that you streamline the application process for residents. We heard over and over again that there isn't a need for affordable housing. Why? Well, developers have been offering it for a long time, but people weren't applying. Huh? What's that all about? Well, we understand that in this county developers are responsible for accepting income verification applications. The developers are responsible for taking the resident's wage information, tax information, analyzing that and determining whether or not they qualify for affordable units. Frankly, that is not a developer's responsibility. They're not trained for this nor are they qualified to do this. So we recommend moving that entire process to the county or to an agent that is hired by the county such as a non-profit or a private lender so that that responsibility is taken out of the developer's hands. They do not have the skills, both hard and soft skills, to track this process and really ensure that residents are being matched with affordable housing. Again, as part of this we recommend that you develop a clear marketing and communication plan not only around affordable housing but around community building because, after all, the housing question is not just about what you live in. It's about where you live. It's about February 3, 2017 Page 39 how you're interacting with your neighbors, with your friends, and with your family. We've seen a lot of plans, we've heard a lot of technical recommendations but, frankly, unless this is being communicated to the public at large in a clear and concise manner that is understandable by all, again, you will not go anywhere. This marketing and communications plan needs to appeal to a wide variety of audiences: Current and potential residents, the business community, and your strong philanthropic community. It needs to appeal to people who are seeking housing, to people who support housing affordability, and to those who are skeptics. Language needs to be tailored around those three key audiences, it needs to be culturally sensitive, it needs to be age appropriate, and it needs to be multilingual. Hiring a community outreach specialist is key to this program's success. This person should be full time and dedicated to communicating the message of community building to everyone throughout your community. That community outreach specialist should be engaged in public meetings, in neighborhood events, in church events, in all aspects of community. Community outreach needs to occur where people already are. People will not come to these types of meetings. You need to go to them. Building upon the inventory of affordable, for-sale, and rental units, we recommend creating an affordable housing directory that's accessible to the public. This will, again, list both rental and for-sale opportunities and will draw from the county's live database; however, we understand that not everyone is comfortable with looking at programs online, so we recommend two options for this database. One, a web-based platform and, two, a printed document that gets updated or amended periodically. February 3, 2017 Page 40 For the seekers of affordable housing in the county, we recommend employing a housing counselor or expanding existing housing counselors' current responsibilities. An educational program around what cost burden means is critical. We had a gentleman come to us at our public town hall who said, you know, I'm spending 70 percent of my income on housing. I'm really hoping that you can convince the county that I should only pay 60 percent; 60 percent. He said, I have a wife and a baby on the way, and that extra 10 percent will really go a long way. My jaw dropped. Helping residents with household budgeting so that they can understand wealth management, so that they can understand how they can take responsibility for their finances and better themselves and their buying power is essential. Developing a housing resources guide is really critical as well. And I know they're already in place, but this, I'm recommending, include a first-time homebuyer resources guide that talks about housing assistance for down payment programs, renters assistance, but also shares community resources with people because, again, this isn't just about how can I afford housing, but how can I be engaged in the community, how can I be connected with everyone who lives around me and not feel isolated? Your philanthropic community here is amazing. You have so much ability to raise money, and we really recommend you figure out how to engage them in the issue of affordable housing. We understand that people don't want to subsidize other people's living. That was loud and clear. However, the philanthropic community here could really rally around specific housing developments. They could rally around a program or a day where everyone gets out and does facade and exterior improvements. We've talked, again, about all these policies and programs for affordable housing but, you know what, talking about policy is not that February 3, 2017 Page 41 fun. So I recommend that you really develop a community volunteer program whereby you bring people together to grow awareness around this topic. It doesn't have to be dullsville. You can have planting projects. This picture, again, very small in the lower left, was from one of our housing developments in Denver. We had a day-long planting project whereby people came together, planted trees, planted vegetables, planted fruit, kids drew little pictures of what those things were. It was a great bonding experience. When you don't make it about class and you make it about community, everyone comes together. Public art initiatives, welcome wagon programs, a "yes in my backyard" campaign would go a long way here. For the skeptics of affordable housing, we recommend a myths-and-facts brochure because, guess what, folks, if housing is affordable, it doesn't mean it's ugly. It doesn't mean that people who live there are crime prone. We must debunk all of these myths that surround housing affordability, again, in order to proceed and make progress in this community. Finally, a workforce housing campaign would be amazing for Collier County. We've heard time and time again throughout our week here that we don't want our teachers, we don't want our policemen, we don't want our health professionals to leave at night. We want them to be engaged; we want them to be present; we want them to be part of our community fabric. Reminding people that this is what housing affordability is for, these are the people who it serves, is incredibly important. And with that, I'll turn it over to Phil for a wrap-up. MR. PAYNE: So, in conclusion, it is the opinion of the panel that Naples and Collier County do, indeed, have a housing affordability problem. We do not see it at this moment as being a crisis but, if not addressed, the panel does believe that it will become a crisis February 3, 2017 Page 42 and, giving (sic) the growth projections for the city and county, we believe this will occur far sooner than you might expect. This slide contains a summary of our major recommendations. When the final report comes out, there will be more granular recommendations. But all of these recommendations are intended to help the city and county provide a housing that is affordable to a full range of incomes found within the community. First and foremost, we believe the county needs to immediately establish a clear consensus vision on what you want the county to be and how you should move forward. Do you want to remain a community that is primarily dependent on retirement and resort tourism for your economy, do you want to work to diversify your economy? Do you want to attempt to limit growth, or do you want to embrace it? Regardless of the answer to those questions, it is, in our opinion, essential that you address the issue of housing affordability. It needs to be a priority. Housing affordability is absolutely essential to creating a vibrant, sustainable community. While you may have some time to implement our recommendations, time is of the essence. Failure to act now will put the very things that make your community so special at risk. Maintaining paradise is both a privilege and an obligation. Dealing with this issue will require political will, community will, commitment, determination, a willingness to compromise, and in some cases a willing (sic) to sacrifice all in the interest of promoting the common good. On behalf of ULI and this panel, I want to thank you for allowing us to play a small role in helping you address this issue, and at this point we're ready for questions and comments. CHAIRMAN TAYLOR: Thank you very much, Mr. Payne. I think we're going to take a 10-minute break to give our court February 3, 2017 Page 43 reporter a moment, and then we're going to come back. We're going to take questions initially from the Commission, and then we're going to open it up to the floor with a mike that's going to be passed around. So stay tuned; stay with us. See you in 10 minutes. (A brief recess was had.) MR. OCHS: Ladies and gentlemen, please take your seats. CHAIRMAN TAYLOR: We have a slight change in itinerary. We have some panel members that need to leave here by 11:15. So with the indulgence of my colleagues up here -- and they're coming back -- what we're going to do is take questions from the audience first, and then at that point until -- when you're finished with your questions -- you're very, very important to this -- I also, just as an aside, we have Pat Utter of Collier Enterprises here. We also have Al Reynolds here of Stantec. So you can see there's interest across all parts of Collier County to listen to these very -- this wonderful panel we have and their interesting and provocative guidance for us to deal with housing in Collier County. So that being said, I believe we have a live mike. And so let's start to see if we have any questions. You don't need to come up here. You can speak from your seat. And you can address your questions to us, but I think these are your experts, so I would address it to them. MR. OCHS: Madam Chair, just as a point of order, if someone has a comment, this would, I'm assuming, be the appropriate time to make that comment as well? CHAIRMAN TAYLOR: Absolutely, yes, yes. MR. OCHS: Thank you. CHAIRMAN TAYLOR: Yeah. Let's not narrow it down. Okay. Don't everybody -- ah, good. MR. KOULOHERAS: Big surprise here that I'm the first one to stand up and talk. February 3, 2017 Page 44 Thank you very much. Thank you to the panel. I've had the pleasure of spending some time with them over the past week. CHAIRMAN TAYLOR: Please identify yourself. MR. KOULOHERAS: Nick Kouloheras. CHAIRMAN TAYLOR: Thank you. MR. KOULOHERAS: And thank you, County Commission, for bringing this forward. A very brief statement I'd like to say, not so much a question, is that as the chair of the Stakeholder Committee that you have appointed, I will say I believe I can speak on the entire committee that it is well rounded with employers, nonprofits, for-profits, the general community at large, and we just hope that once ULI leaves us, direction and action will happen sooner than later. We believe that we're at the point where we do need to take strong action so we can jump ahead of the curve so we're not dealing with some of the issues that group has discussed. So thank you once again for your time, and I appreciate your help. CHAIRMAN TAYLOR: Thank you. MS. DOWD: Hi. My name is Louise Dowd. I'm a retiree, so I'm not in any of the businesses that will be related to this, but I was very much in agreement with what one of the panelists said that she heard the residents of the county do not favor subsidizing other people's living. Now, that said, I did hear some ideas here that I think would help to support the program. That is as much as we can do, support the program with existing resources. Not hiring more bureaucrats to promote or manage the program but doing it within what we have would help to sell the program, I think. Also, I like the ideas of increased density and zoning -- relaxed rules perhaps. I realize that any of these things we talk about, though, do carry a public cost. So whatever we decide to do, that probably February 3, 2017 Page 45 needs to be presented. And would this be something that would go to the voters? That's another concern that I have when it's finally, you know, a baked cake. CHAIRMAN TAYLOR: Nobody else? COMMISSIONER McDANIEL: Oh, there's plenty. They're just -- they're a little shy. MR. DUMORNAY: How you doing, everybody? Antonio Dumornay. As I look in the room, you know, I see -- I don't see a lot of people from my generation. So speaking for them, as you know, many people who range from the age of 30 and below to 18 really don't have a place to stay. More importantly, we are renting from, you know, people or rooming with people that we basically really don't know. And I like the plan that the panel has brung forth that you can actually develop affordable housing in places where you have vacant lands such as on Bayshore Drive behind Jasmine Cay. Also along Livingston Road, you have many empty lots and things like that. But for someone in my generation, we really don't have that much time to actually sit around and figure out whether we're going to leave, because many people that I know, we are leaving, you know, and many of us can't hold on to the places we stay. And due to the rules and regulations that a lot of developers have upon their land, that you cannot have someone living in your apartment for more than seven days unless they're not (sic) on the lease. So that causes a problem for us, because many people probably have a fellow in need or don't have the means to actually stay where they can stay just because someone wants to provide help and actually have a place for them to stay. MR. NADEAU: Good morning. My name is Dwight Nadeau. I'm a 50-year resident of Collier County, and 27 of those years was as a professional planner in the community. Several of the board members will remember me standing in front of you. Many of you won't. February 3, 2017 Page 46 This is a great opportunity for Collier County. I made a few notes while listening to the panel. Panel, outstanding job. Really, really good ideas. I love the term "cost-burdened housing." Commissioners, you have the tools in front of you that -- going forward with your housing study to look at the rural fringe as well as the rural area to provide for greater opportunities for affordable or cost-burdened housing in those areas. You've got a residential infill provision in your Land Development Code. You could modify that to lower the thresholds to allow for cost-burdened housing in that manner using affidavits rather than the affordable housing density bonus agreement, which does provide for additional density. But one way that you could expedite some of the project review with staff is to do affidavits, much like is used in the impact fee section, to validate the affordable housing or cost-burdened housing would be provided. Conversion of commercial for residential is just a fabulous idea. We have some unused parcels along the major corridors that could be improved with rental housing; fabulous idea. We need to change our NIMBY philosophy to remove the emotion from consideration and only weigh the compatibility issues. I don't really think that reducing parking standards is appropriate, but modify the development standards for those (sic) parking to allow grass parking, because grass parking isn't just for churches. Increased density is not essential due to building massing in the community for compatibility, but allowing the existing density to be used is essential. Perhaps you could increase the base density from four dwelling units an acre to maybe six or eight, possibly. We just need to use the opportunities that are available to us and not have a community that's defined by urban sprawl by only having four dwelling units per acre spread out all over the whole county. February 3, 2017 Page 47 And, certainly, there would be consideration to the Coastal High Hazard Area with the higher densities, and perhaps a housing mandate to define the need and have a private sector fill the need through incentives would be a good idea. Thank you very much. CHAIRMAN TAYLOR: Thank you. MR. DWYER: My name is Anthony Dwyer. I'm in the real estate business. And in regards to parking requirements, reducing parking requirements, I saw some eyebrows go up. But there was talk about ride sharing, like Lift and Uber, and also self-driving cars are coming, so maybe there will be self-parking cars. So there might -- if you look, keep an eye on the future, there will be a way where you can reduce that and it will -- won't impact as negatively as if you did it today, so that's something to look for in the future. CHAIRMAN TAYLOR: Thank you. Ms. Brainard. MS. BRAINARD: Thank you very much. I'm Beth Brainard. I'm the Executive Director of Naples Pathways Coalition, a group that advocates for safe bikeable, walkable communities. So I was delighted to hear that you have included transportation in this study, because it's not something unto itself. It's all part of the same fabric. And I think that we're beginning to realize this in the county. I love the fact that you have some data now that substantiates the fact that if you -- if people live within areas where they can bike and they can walk or they can access transit, that their cost of transportation goes down significantly. And I was also very happy to hear you talk about the attention that we need to make right now to the crash corridors in this area which, again, are directly related to areas where we have people who are considered living in that sort of affordable housing and where we're February 3, 2017 Page 48 having crashes and fatalities, you know, at an unprecedented rate in the county. Bike-ped system, yes. So we're all for it, and we see it as addressing some of the needs of the millennials, people who are deciding to ride bikes as a means of transportation. Certainly it's doable here in Florida. You don't have to deal with the snow. You don't have to deal with a lot of things that you do in other places. And it's a viable means of transportation, as is walking, if you have the connectivity and the access that you need. So I hope that the Commission will continue to think about transportation and take what ULI has taken into -- observed as a real issue here in the county. Thank you. MR. DORNE: Thank you. This panel was excellent. My name is Dave Dorne, and I live in Pelican Bay. I currently serve on the foundation board there. I'm not speaking on their behalf. But over the past and in my former life I was a member of ULI for 25 years, served on panels, and I know the work and effort you've done. We recently went out at Pelican Bay and bought two sites of triplexes to house our employees. We have a couple hundred employees. We have a hundred that show up every year for six months, and we now house 96 of them. So that was one way to resolve it. So some of the private sector's going to have to go out and resolve this issue on their own. But in doing that, I found that there is very little affordable housing, and we searched all over within a reasonable distance from Pelican Bay, and it's extremely difficult, and we did a study on the recent rents, which started at 8- or $900 a month and now are way up over 15- or 1,600. So it could be a crisis here in the near future. February 3, 2017 Page 49 The one comment or question I have is, if you're going to project 50,000 new housing units, I think this commission, these commissioners, at this point, since you're studying this, as you are, you've got to look five and 10 and 15 years down the road, and I think you have to pick a number. Do you want 10,000 affordable units? Do you want 8,000? Do you want 5,000? I think when this panel leaves -- they haven't given you a number, but I think you've got to come up with a number and say, this is what we want to have at the end of 15 years. And, you know what? Shame on the elected officials if you don't have it. I think you've got to start now and say, in one year we want to start this. In three years, we want to have 800. In five years we want to have 5,000. At the end of 10 years we want to have, or 15 years, a certain number of new affordable housing units. That's the only way you're going to do it. We've all come out of the business world, many of us around the country. We've retired here, and it is paradise. It's wonderful. It has the same issues that we've left. And you have one thing that we don't have up in the northeast; you have a lot of land. And if you're going to have 50,000 new units going east, you've got to have the transportation and start to develop. They gave you a lot of great examples of a variety of housing. And we've seen this all over the country. We are, many of us, from all over the country. And you can do it down here. You definitely can do it. And I wish you the best of luck on it. MR. HALAS: Good afternoon, or good morning, everybody. I'm Frank Halas, former Commissioner here for Collier County. And this is a topic that's been kicked around for a number of years, affordable housing, but I suggest that as we go forward and start developing out east that these people that own large plots of land and they want to develop that, that we look very seriously at asking them to February 3, 2017 Page 50 give us right-of-way to put additional transportation in. Whether it's automobile or whether it's light rail. And have a collection point of where people can get to a location, whether it's park-and-ride or whether it's a bus terminal that we can then transport those people to different areas of the county where they may work. When people at this point in time have to pay $2,000 a month for rent in Naples Park, we have, I think, a crisis at this point in time. The other thing is, I'm not sure if it's feasible, but there are a lot of developments that have ghost units, and maybe using some of them ghost units to build affordable housing in those areas. Another thing that maybe you should look at, too, is, first and foremost, you have to educate the people in this community in regards to affordable housing. There were a couple of issues that came up while I was on the Board where we wanted to put affordable housing in areas that was surrounded by high-end homes, and the first thing we heard was this is HUD housing. And we tried to explain to them that this was housing for essential personnel, whether it was for EMS, Fire, the Sheriff, schoolteachers; there was a huge pushback. And the first thing we need to do is educate people that, when we want to put in affordable housing, it has no way -- no reflection whatsoever to be HUD housing. Thank you. MR. BOYD: Good morning. My name is Brett Boyd. I'd like the panel to speak to a little bit more of the details or structure of public/private partnerships. MR. PAYNE: You want to do it? MS. FIEBE: Sure. Okay. So there's a variety of mechanisms and ways that this can -- that public/private partnerships can take shape. So I've -- working in local government up in Virginia, I participated in a number of these. But typically the most common is February 3, 2017 Page 51 where the local government provides the land, sometimes at -- you know, at some sort of reduced price, or sometimes it's done on a long-term land lease, like a dollar a year for 99 years. And, in exchange, a for-profit market developer, who often specializes in these types of things, will go after additional subsidies in some cases, like tax credits and other opportunities, and do a joint venture where the developer builds the properties and then manages it -- often manages it afterwards, and the public sector provides the land. And in that way you're able to provide this amount of affordable units without -- you know, in a viable way. I would add that it is -- in many cases they're not -- or they can be 100 percent affordable or they can also be mixed income where some percentage, let's say, you know, anywhere from 20 to 80 percent of the units are done in a range of affordability, so -- and that includes market-rate units so that it becomes a more healthy mixed-income neighborhood. MR. PAYNE: But what's really important about that is this idea of maintaining the housing. So for the life of the lease or the equity contribution of the land, if you violate the restrictions on the income, suddenly you now have to buy the land. Usually the land plus an escalation, you know, appreciation rate, and a penalty. So it provides for long-term maintenance of affordable housing. That's the real goal. MR. GOTCH: My name is Jerry Gotch. I'm just another retired concerned citizen. And one of the questions I have is, in most of these affordable housing instances that you put together, how do you enforce the income restrictions, or is it somehow monitored, and who does it? I heard one suggestion to say, well, it's an unfair burden on the developer to try to do that, but how do those typically come up? MR. PAYNE: No. I think what they were talking about, the burden. Income qualifying is a -- can be a real issue, I mean, because February 3, 2017 Page 52 it puts you in the -- puts the poor developer or operator in the position of trying to analyze salaries and tax returns and income statements and certifying that they've done it and it's correct, okay. And I can tell you, as a person who's done it, it's not a pleasant process because then the government shows up or the person who's enforcing the rules shows up and says, well, you're missing this form or you didn't check this box. So there is a move, a lot of places, to use an independent group that actually does the certification, and then the person basically gets a certificate that says, I am qualified for this type of housing. They show up at the apartment community or at the seller with their certificate. If it's done properly, the county or some agency or group supported by the county would have a list of people who are providing that housing, and then they can say to the person, here's the list of places you're eligible to go. They go to the place, they take their certificate, and it takes out the certification. That's a very different sort of thing about enforcing the rules. But normally the rules are enforced by annual audits of the leases, okay, just to make sure. And it depends on how the funding was done, who does that audit, but it's normally an annual audit of the leases. There is -- if I could just throw something in here, because I want to not leave some people with some misconception. This panel today, this report, is sort of the midpoint of our work with you guys. This was a very prolific group, and when we did our first read through, this thing was at least twice as long as what we have today. And so we had to -- we did a lot of pruning late yesterday and early evening or late evening last night trying to get it down to this length. So all of the writing they've done, all of the work they've done, all the cites is going to now be packaged up and sent to Washington where ULI's professional writing production group will now start February 3, 2017 Page 53 putting it all together and rewriting it and flushing it out and fact checking and searching out all the examples that we've sort of cited, putting them in the book, getting them all together. The first draft takes around six weeks. We will then go back through it again. We will meet with the sponsors. And, by the way, they can't change the report, but we do want them to fact check the report. If we've said something that they think is materially not true, we'd like to know it. No alternative facts here. We just want to get real facts here. And then it takes -- but the final report will be ready in about 12 weeks. After you've had a chance to digest it for a little bit, I probably will come back so that we can go back if you have questions. But that's the thing. And then on this density issue, I would like to bring it up because we are really well aware that density is, like, a bad word here. It's like the "D" word. There are a lot of myths about density. One is the confusion of density and concentration, okay, and I'm going to, as a former lawyer, I've learned if you use extremes, it's easier to make your point. Concentration would be the example of 500 low-income units in a single location. They might be two units to the acre. That's concentration. Density is more units in a smaller space. But you could do things like, what if we had a 30-unit property that's dense, three-story walk-up, particularly in one of the corners of some of these semi nonfunctional strip malls, the few shopping centers you now have. You don't have concentration, but you have density. And in that case density is your friend, because those are on transportation corridors. You already have the bus lines; you already have the place in -- the stuff in place. You've got a giant parking lot that's just, like, giving off heat all day long, reflecting heat, but you've now put a place for people February 3, 2017 Page 54 to live. And so density -- one of the things we'll be working on is the myths of density. Misused density is a bad thing. Properly used density is a really good thing. But you have to remember the difference between density and concentration, okay. That's a big distinction. And most people just kind of mush them all together. Nobody here is talking about building Bedford-Stuyvesant in Naples. MR. PURDON: Good morning. My name is Jesse Purdon. I'm director of government affairs for NABOR. I appreciate ULI's study -- look it, inviting us and letting us come out, it was wonderful. The people who did our study, very knowledgeable. Congratulations in Collier County on getting ahead on this issue. Two questions that I had, or just really in regards to results that didn't really get a lot of attention, but I'm just curious if maybe the Board has any thoughts on these two. The first one would be the idea of moving from a five- to seven-person board with two at-large members, and then the second one would be a mandatory ordinance on minimum wage and how you-all might feel about that. That's all. CHAIRMAN TAYLOR: I think we're going to have to debate those two. COMMISSIONER McDANIEL: Those are for an entirely different public hearing. MR. PAYNE: Look, our job in this engagement was partially to tell you what other communities have been using successfully, okay, and those recommendations were just things we have seen other places in the country that people have attempted to use. We're not here to tell you -- and that's not my role to tell you that you need to pass a particular ordinance on minimum wage, but an increasing number of cities are going to that as a way to try to deal with this problem. February 3, 2017 Page 55 The issue of board size and at-large and supermajority, it comes up in a lot of cities, and we're just telling you what other cities have been doing. How that works out here, whether that's valuable here, is for this group, not for me. But we were asked to give examples of what other people are doing, and that's all it was. MS. FIEBE: Could I just add, I think just to clarify, you know, one of the reasons why this is recommended, I mentioned it, but because doing affordable housing projects like this are so difficult, providing anything that can be done in the process to improve certainty and get past the concerns that get raised is a positive thing, and so that's just one example of a way to reduce the uncertainty that comes all the way at the end of the process when -- so that's just -- I just want to make that point clear. CHAIRMAN TAYLOR: Mr. Reynolds? MR. REYNOLDS: Hi, Al Reynolds. First, I want to thank the County Commission for having the leadership to engage ULI in this process. There is no more credible and great resource that you can bring to bear on a topic like this, and the panel studies that have been done over the years have produced some of the greatest results in communities. So I think it was a stroke of genius to bring ULI in. The briefing book that was mentioned that the staff put together was excellent. We have now the data and the analysis that shows exactly where the issues are, the magnitude of the issues. The only thing I heard today that I would maybe disagree with a little bit is that we don't have a crisis. I think we do have a crisis, because we've been studying this for years and years and years, and I think we are now at a point where the community is ready, and I think the County Commission is ready, to take some action. And the great thing about ULI is it's an extraordinary resource going forward, because there are no best practices that can't be February 3, 2017 Page 56 identified using resources through ULI. And we have a District Council for ULI of people in Southwest Florida that have been part of ULI that can act as a support network for getting this done. So what I would ask is that we agree that the time for studying the issue is coming to a close and that we come up with specific measurable, tangible, actionable items. Just like the gentleman mentioned, we've got to quantify this, and we need to start making forward progress. And it can be some base hits. It can be a project. We have to prove to ourselves that we can solve this problem in Collier County, and we can. It's a big, complex issue, but there are lots of very specific things that have been identified that we can do to start making forward progress. And if we don't -- the rate of change that's occurring right now in demographics of housing is extraordinary. And if you're looking out across the United States, you're going to see that producing high-quality rental housing is probably one of the most fundamental needs if you're going to diversify your economy, because then generations that are coming up don't all want to be single-family owners. They want to have mobility, they want to be in great urban places, they want -- they like high-density housing because it creates a community. So there's so many things that we can do, and I would just hope that we can use this as an opportunity to say, okay, you know, it's a call to action, let's start getting some things done, and I think we're going to prove to ourselves that we can go from being on the wrong side of the curve to being a leader on this issue. Thank you. CHAIRMAN TAYLOR: Mr. Reynolds, one moment. We have a question from Commissioner Fiala. COMMISSIONER FIALA: Al, really good statements; everything is perfect. And you talked about possibly even being a February 3, 2017 Page 57 crisis. Can you tell me, in your opinion -- you would know -- what type of affordable housing? Because there are so many different -- I mean, so many different categories. What types do you feel are missing that we need to try and incentivize or improve upon or gain more units for? You mentioned high-quality rental, and I know you're right about that, because people that come to town don't want to buy right away. They want to rent. MR. REYNOLDS: You know, I'd have to say almost every category is a need with the potential exception of single-family detached. We do have a pretty good inventory, an opportunity. If you want to go build a single-family home and you're willing to be in a little more remote location, that's fine. But, you know, senior housing, big issue for us. Rental housing for young workers. We talked about, you know, all of the -- you know, the schoolteachers, the policemen, all of that is a big issue, but I do think it's housing that is going to be attractive to people that maybe are coming into the community who grew up in the community, and they want to leave their homes and they want to start, you know, their own businesses or they want to, you know, their first-time job. So I think it's really all of that. And I would say the emphasis on multifamily rental housing would be the highest priority just because I think it's the biggest unmet need, and I think that would be a good place to start. COMMISSIONER FIALA: Thanks. MR. PAYNE: If I can just throw a little in there, Ms. Fiala. We do, as a panel, agree that there is a need -- there's been a big emphasis on single-family homeownership here, so we do think you need to increase the rental capacity, partially because it eliminates things like the down payment issue, which is a major obstacle. But, that said, there really isn't a better segment, I mean, a better February 3, 2017 Page 58 type of this housing. There's -- it can be ownership, it can be for rent, it can be multifamily, it can be single-family, it can be three-story walkup or detached or semi-detached. The issue is this issue of cost burden, okay, and matching the need to the particular person. So a young Police Officer and his wife may be great in a one-bedroom rental flat. Add two children, and the picture changes, but the need remains the same. So I would not want to stand here in front of you and say that multifamily rental is better than single-family semi-detached, okay, with the caveat that there is a need here for more rental. Just look at the stats. You need some more rental, okay. COMMISSIONER McDANIEL: We don't have a chair, so... COMMISSIONER SOLIS: Yeah. I was just going to make one comment to what the topic was. One of the first things I did when I came on the Board was to attend the Advisory Committee's Meeting, and I think it's important for everyone to know that, I think for the first time -- and maybe the chair of the committee can correct me if I'm wrong -- the information showed that rental properties are now even more unaffordable than they were before. So it really is a crisis, because that hadn't been that way until now. So it's a -- it is an emergency, I think, and we need to address it head on. CHAIRMAN TAYLOR: Mr. Feeder. MR. FEEDER: Yes. Norman Feeder. First of all, I want to also commend ULI for the work that they've done. I particularly want to note some good recommendations for urban infill and in particular their linkage to transportation, which obviously I very much appreciate, particularly transit, ride share, and also pathways and biking. But what I think needs to be focused on, and I didn't hear a lot of, February 3, 2017 Page 59 is this board has East of 951 studies. So you've got some real opportunities there with what you're hearing today, all this focus, to make sure that what you're considering out in the Estates is addressing a lot of the issues. And right now we don't have destinations. We just have origins. So you talk about the transportation linkage. You also have the opportunity, and it was mentioned, that you have 40 percent structures, auxiliary structures allowed out in the Estates lots yet you can't rent them today. Some of it happens, but it's not allowed. You might even encourage other people to build such structures and accommodate workforce housing if, in fact, you change your Land Development Code to that end. But, in particular, as you're studying those east of 951 studies, develop those corridors that can allow express transit, the catchment areas, get enough density along corridors to allow for ride sharing and other issues out there. So, again, I want to make sure that you bring this into your focus on the east of 951 studies you have underway. CHAIRMAN TAYLOR: Mr. Hruby. MR. HRUBY: Yes. I'm Stephen Hruby. I chair the Affordable Housing Advisory Committee, and I want to address Commissioner Solis' comment. He was -- I think he was on the job about two days when he walked into our first committee and said, I'm about housing here. I want to hear what you guys are doing. He sat through an hour-and-a-half meeting with us, had very intelligent questions about it. And you're right, it has changed. I've chaired this committee for almost 10 years now. And there's been a change in the demographics, there's been a change in the focus, there's been a change in the need, particularly as a result of the recession and what happened to us in the recession. So you're right, but it's only not in the move from single-family to February 3, 2017 Page 60 rental. The whole paradigm is changing. Our demographics are changing; our needs are changing. Eight years ago I called a town hall to talk about this issue. I probably had four of these people sitting in there, and we'd be complaining. The biggest change that I've seen is the community. The business community, the government, just the general population taking an interest and supporting that we need to do something. And I agree with Al, it's a crisis. Al and I sat on a very similar panel with ULI and EDC about, what, eight years ago, Al, and went through the same process. So, you know, it was a crisis then, and I think it's a crisis now. I also would like to thank the panel from ULI. I'm a ULI member. Have been for years. You did a wonderful job, and it was a pleasure working with you. Thank you very much. CHAIRMAN TAYLOR: Well, on that note, about talking about a crisis and the concern that we don't sweep it under the table or we postpose it forever and ever, I'd like to see if I have agreement. I spoke to our County Manager just now. He can probably speak to this a lot of better than I can, but that at our next meeting we workshop the recommendations that are given. And we have time to look at them. We have a report that's coming to us, but we've got sort of a 50,000-view ideas that, you know -- Commissioner Fiala, 16, 17 years as a FCommissioner, you have your feet in this community. Bill, you're out in Immokalee, but you're a business owner, and we have two land use attorneys. We have a sense of this community and what we consider starters or nonstarters. We have the -- our committee here that is really working on this, and I think they need direction. So I don't want to put this aside. I'd like to see if we aren't -- you know, I'm not saying that we're not -- we're not changing ordinances February 3, 2017 Page 61 right now, but we're talking about what we think is going to work and what we don't think is going to work based on the recommendations of this committee. Commissioner Saunders? COMMISSIONER SAUNDERS: Just two quick comments. First of all, over the years I've sat in a lot of these panel discussions at a variety of different levels, and I'll have to say this was probably the best one that I have witnessed. So I want to thank all of you for really dedicating a lot of time and effort. I know how much time it takes to do this. Well, actually, I don't know how much time it takes to do this. I can only imagine. I'm surprised you had time for morning runs from the way this -- MS. McMANUS: They were really early. MR. HRUBY: They were late-night runs. COMMISSIONER SAUNDERS: Good thing it's a safe community for that type of activity at night. MS. McMANUS: We said that. COMMISSIONER SAUNDERS: But, really, you-all did a great job, and I really appreciate it. Madam Chair, in terms of workshopping this, I think that's an excellent idea. I think you said workshop this at our next meeting, which is, like, 10 days from now. So I think we probably need a little bit more time to kind of digest this. I believe we're going to have some paperwork provided to us by our staff. I'd like to take a look at the briefing book that was presented to the ULI committee and be able to kind of digest this. So I think a workshop 10 days from now is just a little bit too soon. CHAIRMAN TAYLOR: Well, then -- COMMISSIONER SAUNDERS: I don't want to delay this because, I will tell you, I agree 100 percent; this is a crisis. There are things we can do, and I want to start implementing those things. But I February 3, 2017 Page 62 want to take a look at them a little bit more deeply before we get into that. CHAIRMAN TAYLOR: Okay. So the next meeting? COMMISSIONER SAUNDERS: So the next meeting, that's three weeks from now, four weeks from now. That will give us some time. CHAIRMAN TAYLOR: All right. Good. And then I believe the ULI report is coming to us in 90 days, which we'll add. But what we're going to do is start thinking about this and having timelines by which we need to come and give staff and our committees direction so that they don't -- you know, we're here. We're here for another -- well, the next election is two years from now, so we're here. So we need to make some decisions. September, I believe, is when we're coming with a housing plan. We've got to get to work, guys. All right. COMMISSIONER McDANIEL: Yes, ma'am. And I would like to -- you know, I liked your idea of workshopping it on the 14th. I would like us to have more opportunities to workshop. One of the limiting factors we have, and this panel put forth, was the consensus that's required for rezones and so on, the supermajority aspect of it, and our inability, because of the Sunshine Law, to talk about things that will benefit our community. And the more workshops we have, the greater -- not necessarily in a voting environment, but the more opportunity we have to bring in public input and have discussions back and forth so that we can vet the pros and cons before we actually go into a voting format, I'm all over it, so... CHAIRMAN TAYLOR: Let me suggest this: We have two shots at this, but the second one, second meeting is when we make some decisions -- COMMISSIONER McDANIEL: Sure. February 3, 2017 Page 63 CHAIRMAN TAYLOR: -- so we can talk about this in a nonbinding fashion. No votes, but we can talk here, and the public is welcome. We'll make it as an agenda item on the 14th of February, which is a beautiful Valentine's gift for Collier County. COMMISSIONER McDANIEL: I don't think necessarily, I wasn't -- you know, I wasn't avoiding the fact that we need to make some decisions -- CHAIRMAN TAYLOR: I know that. COMMISSIONER McDANIEL: -- along those lines. I just want us to have an opportunity to talk on a far more regular basis. CHAIRMAN TAYLOR: I was calming Commissioner Saunders. COMMISSIONER McDANIEL: Yes. CHAIRMAN TAYLOR: We're not going to make decisions; just talk about it. Commissioner Solis? COMMISSIONER SOLIS: I was just going to inquire. I think some of the panel need to head to the airport, so maybe we can -- are we going to wrap up and then make our comments and questions to the rest of the -- CHAIRMAN TAYLOR: Well, that's fine. We can certainly do that. COMMISSIONER FIALA: Could I just add, then, to the discussion that we were just talking about for the second meeting and the decision making; I don't think we should make any decisions until we get all the information back from ULI. It's like jumping before the cart. And, you know, I think we need to -- COMMISSIONER McDANIEL: Absolutely. COMMISSIONER SOLIS: It will be a while. COMMISSIONER McDANIEL: And if I might say, I mean, I don't think that we're all going to -- we're going to wave a magic wand and make all the decisions at once. February 3, 2017 Page 64 CHAIRMAN TAYLOR: That's right. COMMISSIONER McDANIEL: It's been very apparent, it's been put forth in the preliminary information, this is an ongoing effort. We have to keep this at the forefront of our governance as we're going forward, how we can incentivize projects such as what are being talked about today to deal with this issue over a period of time. It's not, boom. MR. OCHS: Madam Chair, if I might, just again, for the benefit of the public and the process and the reminder, particularly for the new commissioners, the Board had impaneled a stakeholders group to develop for you a recommended community housing plan that was due to come to you in September of this year. So the staff has viewed this effort as another major input into that committee's work. What we're really looking for at this point is kind of a decision from the Board on whether the committee should continue to explore all of the recommendations that the ULI panel has presented or if there's any that the Board wants to take off the table right now so that, as the committee moves forward to their goal in September, they can refine and refocus their effort, not spend a lot of time on something that the Board has no interest in. So, you know, maybe a workshop, instead of dealing with this at either board meeting in February, would be the proper approach. You've got very full agendas, particularly the February 24th agenda is chock full. So as Commissioner McDaniel said, if you want an opportunity to speak about this in a less formal setting where you're not pressed to make decisions or you're not pressed by time, we can certainly look for a workshop date that works for everyone where we can get that direction from you and apply that to our ongoing stakeholder effort to bring the community housing plan to you in September. Perhaps when we meet on the 10th (sic) I can present a couple dates that might work for the Commission. And we can workshop on February 3, 2017 Page 65 this particular report in a setting that gives you the time to make some informed decisions. CHAIRMAN TAYLOR: I think our next meeting, isn't it the 14th? MR. OCHS: I'm sorry, yes. CHAIRMAN TAYLOR: And the 28th. COMMISSIONER McDANIEL: The MPO's the 10th. CHAIRMAN TAYLOR: So if we did this -- and, you know, again, I'm not trying to -- I'm not trying to say we have to make decisions and let's just go ahead. That's not what I'm saying. I'm saying we have to keep it in the forefront, which is what you eloquently said. So what if we created a workshop but have it this month. I just think it's easier to tack it onto a meeting than it is to have a special thing. But to have it this month, have a workshop whereby we can look at the recommendations and know what's a nonstarter, what we think. That's it. That's it. The hard work, the heavy lifting is going to be with our committee. MR. OCHS: Sure. And if that's the will of the Board, I can work with your aides and your calendars and see if we can't find one or two dates in February that works for a morning or afternoon where you can get together and do just that. COMMISSIONER SAUNDERS: Yeah, I agree, a separate workshop. By the time we finish our regular meeting, we're pretty well fried, and this is a very important issue. COMMISSIONER McDANIEL: I'm not fried. COMMISSIONER SAUNDERS: Well -- MR. OCHS: I'm fried, let's put it that way. COMMISSIONER SAUNDERS: -- some of us are. And so a separate workshop. And I agree that this has to be on the front burner. It should be February 3, 2017 Page 66 something that we move along, but it's going to take a little bit of time to do it right. CHAIRMAN TAYLOR: Oh, yes. COMMISSIONER SAUNDERS: And I'd rather do it right, take a little more time and do it right than miss and do it quickly. So a separate workshop, I think, is the right way to go. MS. GRANT: Pardon the interruption: Are we okay for the panel to leave? COMMISSIONER SOLIS: Right. I just wanted to say -- I know some of them are looking a little nervous with looking at their watches. I just wanted to say thank you for the wonderful work that you did. I mean, incredible presentations under very short time frames. And especially thank you for pointing out something that I realize is absolutely true in your recommendations that kind of shocks me, but it's true, and that is, we really don't have a collective vision, I don't think, of what Collier County is going to be. CHAIRMAN TAYLOR: Here, here. COMMISSIONER SOLIS: And I think that is the most -- one of the most telling things that's come out of your presentation, for me anyway. And I've been here since the early '90s. We need that, and I think it's going to be incumbent upon us to help figure out what that is. MR. PAYNE: We really appreciate you having us here. We truly hope and trust that this has been of benefit for you. Feel free to call us. You have our contact information. We will continue to work. We will work diligently to get your report back to you as soon as rationally possible. You know, we're telling you about 12 weeks. We'll do our best, but I hate to promise any sooner than that. So -- but we do, really, all of us on behalf of everybody here, we -- and the Urban Land Institute as well, we really appreciate the confidence you put in us. Thank you. February 3, 2017 Page 67 (Applause.) COMMISSIONER McDANIEL: Take a minute-break while we cut them loose. COMMISSIONER FIALA: I still have questions. So I know you guys have to go, but... CHAIRMAN TAYLOR: What we're going to do is let the ones who have to catch the planes to go, and if -- those who can stay for a little bit, we just have a few more questions up here. MR. OCHS: I think most of them have to go, ma'am. I think all of them have to. CHAIRMAN TAYLOR: Thank you. Thank you. MR. PAYNE: One of those things, because the way the airlines work, we're all on the same plane to Charlotte. MR. OCHS: Very good. CHAIRMAN TAYLOR: Thank you. Thank you very much. Okay. I think Commissioner Fiala has some questions here. COMMISSIONER FIALA: And maybe others, too. Does anybody else have any questions? CHAIRMAN TAYLOR: Go first. You go first. COMMISSIONER FIALA: Okay. First of all, one of the suggestions was to increase density, and then somebody -- and this is not. I don't think you could answer this now. I'm throwing this question out as not expecting an answer from anybody. MR. OCHS: Okay. COMMISSIONER FIALA: One of the questions -- or one of the suggestions was we can build up to 30 units per acre, right, in order to increase density and build the housing that they're talking about. What I'm -- I'm kind of looking at Nick right now, and that is, our road system is already in jeopardy. If we start building things like 20 units per acre or 30 units per acre, will that mean, then, that -- sometimes in some places we don't even have room to expand the February 3, 2017 Page 68 roads as it is. What will we do then? And that's just something to think about. I think this is a question that we all ought to consider as we talk about increasing density, because we don't want to increase it to the point where it breaks the back of our road system. Okay. That was one question. Another one, I think it was Kim that said something -- or somebody was saying something about affordable housing and approved. Now, is the affordable housing we kept referring to today approved affordable housing or affordable housing in general? And, you know, we found that in our figures before, there is a great deal of difference between one and the other. What are we going to actually address, approved affordable housing or, you know, just affordable housing in general? MS. GRANT: I will try to give a brief answer to that. What I heard them say was that -- and please keep in mind that this is the first time we are hearing their recommendations as well. But what I heard them say is that we need a much more robust inventory that tracks more detail, is more available possibly online. So what that says to me is that that gives us an opportunity to continue to have that discussion and make sure that we're including everything that the commission and the community wants us to include. COMMISSIONER FIALA: Because it paints a different picture. What we found was -- and I only could concentrate on mine now. When we were given a figure, which they said that was all the affordable housing we had, and there is much more in North Naples, and they said we only had 1,201 here, and I was incredulous. What do you mean? We have more just in Naples Manor. And we were told it doesn't count. And there were many others that I was naming, and they don't count, they don't count, like the Triangle and so forth. February 3, 2017 Page 69 And I wanted to know why, and that's when I learned for the very first time -- you'd think maybe I'd know it by this time or something -- that there's certain housing that's approved and certain housing that isn't, and that's because they meet certain requirements from, what, HUD, is it, or SHIP or whatever, and others that aren't. And I threw on the table that there is possibly a way we could incentivize some of this housing if we identify what kind of housing we're talking about. Do we want skilled-worker housing? Entry-level housing? Young-professional housing? What kind are we in need of? And then maybe we can incentivize that, because for 80 percent and below, we get SHIP dollars. Well, right now we just ship it all over -- SHIP dollars that -- we ship SHIP dollars over to the very low income, but we could incentivize developers who now -- right now don't seem to be wanting to build a step up or two steps up of affordable housing, yet at 70 percent or 80 percent, which I think we desperately need in order to round out or balance out, as they were talking about, our affordable housing. And if we could use that to incentivize them instead, I think that that would be a great direction to go. Let's see. Again, I keep saying define affordable housing, but I'm the only one that says it, and everybody just keeps talking about affordable. So whenever we talk about it and people say, oh, well, then people object to it. Well, that's because they think it's all low income, and it isn't. We don't -- you know, we don't need low income. We need all spectrums, but we need to balance out what we have so that when our young people -- young professionals, nurses, dentists -- or dental assistants and so forth, when they want to find a place, they don't qualify for the low income at all. And if we would give them a housing -- we could give a name to it so we know what we're trying to incentivize, whether it's sheriff's February 3, 2017 Page 70 deputies -- again, they don't qualify for low income. There's so many different categories. What do we need? And I look around this audience. Does anybody really know what we need? And if we need five different categories, how many do we need in each one? You know, you just don't know. And I think maybe somebody should be studying that, if you can. You know, I don't know what you're laughing at, Dwight, but I think it's important to know that. COMMISSIONER McDANIEL: He was laughing at me. COMMISSIONER FIALA: Anyway -- so let's see. I think those were about it. Oh, there was a lady that -- oh, the bike people. You know -- and that was very good. In my area, a lot of people ride bikes, as you probably know. And one of the good things about our bus transportation system and the bike riders is we have a finagling thing out in the front of the bus where they can ride their bike up to the bus stop, load it on the bus, get it over to their place of employment, get it off, and ride the rest of the way, so that's a good -- I'm bragging now. I think that's a good attribute for our bus system, and the people in my area use it heavily. So, anyway, I think we should encourage more and more bike uses to be a part of this. Okay. I think I've said it all. I think -- I don't know that the guys are still here from Pelican Bay, but, man, that was a wonderful thing. They built their own affordable housing. I thought, now, that's right. They know what the people are getting paid because they're paying them, and they're building it accordingly. That's a good idea. Thank you. CHAIRMAN TAYLOR: So no other comments? COMMISSIONER McDANIEL: Oh, yes. CHAIRMAN TAYLOR: Okay. I have to go. Quick. COMMISSIONER McDANIEL: Okay. Just a couple of things February 3, 2017 Page 71 I'd like to say. And I want to say this out loud, and I shared this with the panelists. I didn't get a chance to address them before they left. I would like for them to know I voiced on my bus ride with them on Monday -- Monday, Tuesday, whatever day it was I was riding. I announced out loud that I was not an advocate of hiring the ULI to come and do this study. I have to say that I have maybe a shift in that opinion as far as the validity of what they have brought forth just in the infancy stages of what's transpiring. I do have an inordinate amount of faith in our staff, very knowledgeable staff, as to issues that we, in fact, have, but I'm looking forward to the finalization of this information that is coming to us to ratify what our staff necessarily is already telling us. I have a couple of little comments I'd like to make. I concur with what the gentleman from Pelican Bay said and Al Reynolds said with regard to this being a data-driven study for us to have a goal with regard to the type of housing that we want to provide, and how we, in fact, attain that from -- and then work backwards from that once we ascertain the type of housing that we're, in fact, looking for, and having it be data driven so that we can get there and then have a specific plan on a per-unit basis with regard to a timing allotment, having a plan, and then working backwards from the data that's, in fact, being given to us. And the last comment that I'd like to make -- and I've said this quite regularly. It isn't necessarily an affordable housing issue. It's a housing that is affordable issue. And maybe a change in the vernacular along the way -- a prior commissioner, Frank Halas, talked about affordable housing and how it got defined as HUD housing and not such a happy thing, and maybe just a change in our vernacular in looking for housing that is, in fact, affordable as part of our path going forward. February 3, 2017 Page 72 COMMISSIONER FIALA: But then we have to find out what do we need in that affordability grouping so that we can build toward that rather than having them to go to Fort Myers. COMMISSIONER McDANIEL: I'm with you. COMMISSIONER FIALA: We want to keep them here, you know. So anyway... CHAIRMAN TAYLOR: All right. I think that's it. County Manager, any comments? MR. OCHS: No, ma'am. We appreciate the Board's input. And we'll identify a workshop date this month that you can come together again and give some further direction. CHAIRMAN TAYLOR: Thank you very much. COMMISSIONER FIALA: If you see any Amish people walking around, they're my friends. They're here in town visiting me. COMMISSIONER McDANIEL: Nice. From Ohio? COMMISSIONER FIALA: Yes. COMMISSIONER McDANIEL: Sweet. I'm going to come say hi. CHAIRMAN TAYLOR: We are adjourned. ***** February 3, 2017 There being no further business for the good of the County, the meeting was adjourned by order of the Chair at 11 :31 a.m. BOARD OF COUNTY COMMISSIONERS BOARD OF ZONING APPEALS/EX OFFICIO GOVERNING BOARD(S) OF SPECIA 100TRICTS UNDER ITS CONTROL PENNY TAY OR, 4d/Z-C MAN ATTEST DWIGHT E. BROCK, CLERK I At Attest as to Chairman' signature only. k These minutes approved by the Board on -i 2A, 2017 as presented or as corrected TRANSCRIPT PREPARED ON BEHALF OF U.S. LEGAL SUPPORT, INC., BY TERRI LEWIS, COURT REPORTER AND NOTARY PUBLIC. Page 73