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Ordinance 2003-62 ORDINANCE "O. 2003- 62 i': ~ ~/ORDINANCE OF THE BOARD OF COUNTY COMMISSIONI~,:S ~ ~.~'~O-Z.~.LLIER COUNTY, FLORIDA, ESTABLISHING A PROPER~:iT~ STIMULUS PROGRAM AVAILABLE TO ELIGIBLE BUSINES~ 'T~ MITIGATE THE ECONOMIC EFFECTS OF INCREASED RELOCATION AND EXPANSION COSTS; PROVIDING FOR A MAXIMUM PAYMENT PERIOD; PROVIDING FOR APPLICABILITY AND PURPOSE; PROVIDING SPECIFIC DEFINITIONS FOR ECONOMIC DEVELOPMENT TERMS; PROVIDING FOR PROGRAM ELIGIBILITY CRITERIA; PROVIDING FOR IMPLEMENTATION OF THE PROGRAM; PROVIDING FOR INCLUSION IN THE CODE OF LAWS AND ORDINANCES; PROVIDING FOR CONFLICT AND SEVERABILITY; PROVIDING FOR AN EFFECTIVE DATE; AND PROVIDING FOR A TERMINATION DATE. WHEREAS, Collier County has historically depended upon tourism, agriculture, and, in more recent years, construction as major components of its economic base, all of which are very susceptible to economic cycles and downturns in the economy; and WHEREAS, the Board of County Commissioners of Collier County (Board) desires to promote and foster economic diversification through the retention and creation of high wage jobs in targeted industry clusters; and WHEREAS, programs to offer relief for targeted industry recruitment or expansion projects from rising costs associated with these projects will contribute significantly to economic diversification efforts throughout the County; and WHEREAS, Chapter 125.01(1)(t), Florida Statutes, authorizes the Board to enact ordinances necessary for the exercise of its powers; and WHEREAS, enactment of the following ordinance will be in the public interest and serve a valid public purpose by encouraging private sector investment thereby increasing local business expansion opportunities thus increasing employment opportunities for Collier County residents; and WHEREAS, on March 12, 2003, the Board directed staff to move forward with proposals for a "toolbox" of economic diversification incentives to further these efforts. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, THAT: SECTION ONE. Collier County hereby adopts an Ordinance that amends the Collier County Code of Laws and Ordinances as follows: Page 1 of 6 ARTICLE IV. PROPERTY TAX STIMULUS PROGRA~ Section 49-40. Applicability This article applies to the unincorporated area of Collier County, Florida, and to all incorporated areas of Colli~ ~ County to the .qreatest extent authorized by Article VIII, Section l(f) of the Florida Co, ~stitution as may be implemented by an inter.qovernmental or interlocal a.qreement. Section 49-41. Purpose. The purpose of this article is to: (1) provide a performance-based pro.qrar~ offerin.q financial assistance for eliqible tar.qeted industry development or expansior, projects in Collier County to miti.qate the effects of risin.q costs associated with thes~ projects; (2) provide for the economic well bein.q of Collier County residents by providin£ hi.qh-wa~e employment opportunities in Collier County; (3) lessen the seasonal cycle cf Collier County's economy; and (4) encoura,qe investment opportunities for new or existing companies thus increasin.q and diversifyin.q the County's tax base. Section 49-42. Specific Definitions When used in this article, the followin,q terms have the meanings below, unles~ the context clearly indicates otherwise: A. "Average Waae" is the annual rate paid to private-sector employccs within Collier County, from hi.qhest to lowest divided by number of person~ employed full-time, as reported by private-sector employers in the State of Florida who are covered by federal and state unemployment compensation laws (UC), and reported annually based on fi.qures released by the Florida A.qencv for Workforce Innovation. B. "Eastern Collier County" is that area of unincorporated Collier County that includes those parcels of land immediately adjacent to, and east of, Collier Boulevard, except for those parcels desi.qnated as part of the Immokalcc Rural Federal Enterprise Community. C. "High Impact" is that designation given to qualifyin,q economic development projects located outside of Eastern Collier County and the Immokalcc Rural Federal Enterprise Community, D. "Rural Federal Enterpri$® Community" is that jurisdiction so desi.qnated by the U.S. Department of A,qriculture as a multi-jurisdictional entity includir~£; Immokalee (census tracts 112.04, 112.05, 113, 114), parts of Hendry County and the Seminole Indian Reservation; the Enterprise Community boundariec in Collier County follow the Immokalee Enterprise Zone boundaries, ~, desi;nation by the State of Florida, pursuant to Section 290.001-290.016. Florida Statutes, E. "Targeted Industry" is one that is a,q,qressively pursued for relocation to, of Page 2 of 6 expansion within, the local jurisdiction by the Economic Development Council of Collier County. It may include, but is not limited to the followin.q industries: Aviation, Information -I-echnoloqv, Biomedical, Manufacturin.q, Corporate', Headquarters, Research and Development, Wholesale Trade ami Distribution, and companies locating or expandin~ within the Immokalee Rural Federal Enterprise Community Section 49-43. Property Tax Stimulus Program General Requirements. Pursuant to the provisions set forth in this section, tho County establishes a Property Tax Stimulus Pro.qram providin.cl payments (he~einafte~ the "payment"} to offset the costs associated with the relocation and/or expansion or targeted industries. The payment is a local option economic incentive for new c ,expanding businesses that may be approved at the sole discretion of the Board subjec[ to the criteria for such projects set forth below. The payments shall not accrue t~ improvements to real property made by or for the use of new or expandin.q businesse,~, when such improvements have been assessed and included on the tax rolls of th(: calendar year preceding the effective date of the agreement specifically approving tho business as eligible, as provided in Section 49-~.~, herein. A. Application Process. Any business owner seekin.q eligibility through th;'; property Tax Stimulus Program (Proqram) will file an Application with the County Manager requesting participation in the Program. The Application will be file~l prior to the business owner making the decision to locate or expand within Collie County. The Application must contain the following: 1. The name and address of the business Owner; and 2. A current and complete le.qal description of the site upon which th(: project is proposed to be located; and 3. The type of business proposed, usin~ Standard Industrial Classification {SIC) or North American Industrial Classification System (NAICS); and 4. The number of jobs to be created and retained as a result of th;'; project; and 5. The average wage of those jobs created and retained; and 6. The total capital investment of the expansion or relocation project, including land, buildinq, and equipment costs; and 7. The date (month and year) when the project will be substantiall;, complete. B. A~reement. If the proposed project meets the requiremer, ts under the Program as set forth in this article, the Board may choose to approve participation by, and make payments to, a new or expandin~ business. N~ precedent shall be implied or inferred by such payments when made to a new o, expandin~ business. Applications for participation will be considered by the .Board on a case-by-case basis for each application. Page 3 of 6 Section 49-44. Implementation A. The eligible business will notify the County Manager, in writing, when all their employment obli,qations are met in year one and, in subsequent years, that their employment base is still viable, which is then verified by the County Manaaer. The company will pay its tax bill in full to the Tax Collector's Office; annually on or before the date it is due. Under this pro.clram, applicants are not eligible to pay their taxes on an installment basis. The applicant will then submit a copy of their ad valorem property tax payment receipt to the County Manager verifvina all taxes have been paid in full and on time. Upon receipt, an~-, verification of compliance with the terms of this Article and corres'pondin~ approved Agreement, payment to the applicant will be authorized within 60 days. B. No payr:nent will be authorized for improvements to real property made tangible personal property added before the Board approves an initial agreement .qrantine such payment, Additionally, payment will only be made based upon thc amount of ad valorem taxes levied by the County, and then paid by the eligible business. The payment amount will not include the amount of any taxes or special assessments levied by a municipality, school district, or water management district, or to such taxes or special assessments levied for the payment of bonds or taxes authorized by a vote of the electors pursuant to Section 9 and Section 12, Article VII of the State Constitution. A proiect participating in the Property Tax Stimulus Program is not eli,qible to also participate in the Fee Payment Assistance Program that may be offered by thc County. C. Under this Program, any payment approved may apply to 100 percent of the assessed value of all improvements to real property made by, or for the us~ of, a new business and of all tangible personal property of such new business, or up to 100 percent of the assessed value of all added improvements to real property made to facilitate the expansion of an existing business, and of the net increase in all tangible personal property acquired to facilitate such expansion of an existing business. The payment period may be up to ten years from the dato of issuance of the first Certificate of Occupancy for a building occupied by an eligible business. D. All approved businesses under the Property Tax Stimulus Program will enter into a Property Tax Stimulus Program Agreement (the Agreement) with th~', County, and the Agreement must provide for, at a minimum, the following and will include such provisions deemed necessary by the Board to effectuate the provisions of this article: 1. The legal description of the project. 2. Neither the requirement for payment of ad 'valorem property taxes, nor the Agreement providin~ for the payment of such taxes, may transferred, assigned, credited, or otherwise conveyed separate from thc property without prior written approval from the County Page 4 of 6 3. Approved Agreements will run with the land, and will be recorded i~ the Official Records of Collier County at no cost to the County. E. If the property which is subject to an approved Agreement is delinquent i~- the payment of its annual taxes or special assessments at any time within the payment period, then any outstanding balance otherwise eligible to be paid unde~ this Pronram will not be made unless and until all outstanding ad valoren~ property taxes and special assessments are paid in full. F. Termination The provisions of this article will expire and be void on October 1, 2008, unles:: continued by a vote of the Board of County Commission prior to this dat~.Criteria. Section 49-45. Program Elic~ibility Criteria, To be considered eligible for approval under this Pro.qram, a business or projec' must meet the criteria of one of the followin.q cateqories' 1. Be located within Eastern Collier County and me, et the followin.q criteria. a. Type of business conducted is within the Targeted Industry List of the Economic Development Council of Collier County; and b. Creates a minimum of ten (10) new full-time iobs; and c. The newly created iobs pay an avera.qe wane of at least 115% o~' the County's current private-sector avera.qe wane. 2. Be located within the boundary of the Immokalee Rural Federal Enterpris:': Community and meet the following criteria: a. Create a minimum of five new iobs; and b. The newly created iobs pay an avera.qe wane equal to or .qreater than 50% of the County's current private-sector avera.cle waqe. Be a High Impact project and be located outside the Enterprise Community and Eastern Collier County and meet the following criteria: a. Type of business conducted is within the Tar.qeted Industry List of the Economic Development Council of Collier County; and b. Creates a minimum of twenty (20) new full-time jobs; and c. The newly created jobs pay an avera.qe wane equal to or ,qreate r than 150% of the County's current private-sector avera.qe wane. SECTION TWO. CONFLICT AND SEVERABILITY. In the event this Ordinance conflicts with any other Ordinance of Collier County or any other applicable law, the more restrictive will apply. If any phrase or portion of this Ordinance is held invalid or unconstitutional by any court of competent jurisdiction, such portion will be deemed a separate, distinct and independent provision and such holding will not affect the validity of the remaining portions. Page 5 of 6 SECTION THREE. INCLUSION IN CODE OF LAW AND ORDINANCES. The provisions of this Ordinance are to be made a part of the Code of Laws and Ordinances of Collier County, Florida. The sections of the Ordinances may be renumbered or relettered to accomplish such, and the word "ordinance" may be changed to "section", "article", or any other appropriate word. SECTION FOUR: EFFECTIVE DATE. This Ordinance will immediately become effective upon the last date of occurrence of all three of the following events, regardless of the order in which they may occur: 1. the date of filing of this Ordinance with the Secretary of State; 2. the date of adoption of a Resolution by the Collier County Community Redevelopment Agency (CRA): a) recommending the allocation of ninety-five percent (95%) of the Tax Increment Financing (TIF) funds associated with the qualifying eligible business to partially fund Property Tax Stimulus Program; and b) recommending the Board's amendment of the redevelopment plan to authorize use of TIF funds as a funding source for certain Board of County Commissioners' approved programs; and 3. the effective date of ordinances by the Board of County Commissioners adopting 'appropriate amendments to modify the Collier County Community Redevelopment Plan for Immokalee to allow for the use of TIF funds for the repayment of property taxes to eligible business located in the Immokalee Enterprise Zone and expanding the boundaries of the Immokalee Redevelopment Area to include the Immokalee Enterprise Zone in its entirety. PASSED AND DULY~.~OPTED by the Board of County Commissioners of Collier County, ,F~rjd~a ~!,s I day of j~0t/~/Yi~ ~" ,2003. o,:, ',,, · , · , f · ~-,~ ,. ~pproved as to fo~ and I suffi ' ncy: Patrick ~Wh~te ' Assistant Coun~ A~orney BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY FLORITA Tom Henn~'ng, Chairn~a~. This ordinance fired with the z~retary o.f ~St~t.e.'.s_p_f. fice the ~ - day ot and acknawledgemen.tG~f that filing rec?ived this J~'~ day Page 6 of 6 STATE OF FLORIDA) COUNTY OF COLLIER) I, DWIGHT E. BROCK, Clerk of Courts in and for the Twentieth Judicial Circuit, Collier County, Florida, do hereby certify that the foregoing is a true and correct copy of: ORDINANCE 2003-62 Which was adopted by the Board of County Commissioners on the 18th day of November, 2003, during Regular Session. WITNESS my hand and the official seal of the Board of County Commissioners of Collier County, Florida, this 20th day of November, 2003. DWIGHT E. BROCK Clerk of Courts Ex-officio to B~.Uf..~.~.).' County Comml s g~O~.S By: Ann Jenn~{%6hn~ Deputy Clerk