Agenda 05/13/2014 Item #16F3 5/13/2014 16.F.3.
EXECUTIVE SUMMARY
Recommendation to approve an Economic Development Grant and Funding Agreement
between the Board of County Commissioners and the Collier County Industrial
Development Authority (IDA) providing for the remittance of historical and future bond
issuance fees to Collier County for use in fostering the County's project specific economic
development program efforts.
OBJECTIVE: To diversify and supplement existing funding sources for the County's project
specific economic development efforts.
CONSIDERATIONS: Part III of Chapter 159, Florida Statutes (the "Act"), creates, in each
county of the state, an Industrial Development Authority, which may not exercise its powers or
transact business unless the governing body of the county has adopted a resolution declaring a
need for the authority to function in the county. Once authorized to operate, an authority exists
as a public body corporate and politic, and has those powers set forth in the Act, which include
the power to issue bonds for qualifying projects under the Florida Industrial Development
Financing Act (Chapter 159, Part II). The Board of County Commissioners of Collier County
adopted Resolution 79-34 on February 27, 1979, declaring the need for an industrial
development authority to function in Collier County, and authorizing the Collier County
Industrial Development Authority (the "IDA") to transact any business and exercise any and all
powers authorized by law to be performed by an industrial development authority under the Act.
The IDA has been in continuous existence since 1979. During that time, the IDA has financed a
number of projects in Collier County.
The Industrial Development Authority financing process provides a mechanism through which
private markets can access the public tax free credit market to finance eligible development
projects. Bonds issued by the Industrial Development Authority, while approved by the public
authority, are not considered part of the public authority's debt portfolio. It is considered conduit
debt for audit purposes.
The IDA, pursuant to its authority under the Act to set fees for its services, charges borrowers
under eligible project a bond issuance fee, which is geared to the size of the bond issue.
Historically, the fees received by the IDA in excess of the funds necessary to operate the
Authority, were paid over to the Collier County Economic Development Council, for use by that
entity's economic development activities. With EDC no longer in existence, the Authority, at its
meeting on April 9, determined to enter into an agreement with Collier County similar to the
former agreement with EDC, under which the funds of the Authority in excess of operational
needs would be paid over to Collier County, for the County to use as it deems appropriate for
economic development purposes.
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The agreement stipulates that Collier County Industrial Development Authority will provide a
one-time $75,000 economic development grant and subsequent annual remittance of any future
IDA surplus funds accruing beyond $25,000 in support of the County's economic development
efforts. As used in this Agreement, the term "Surplus Funds" shall mean all monies in
possession of the Authority in excess of$25,000, said amount being deemed by the Authority as
the minimum cash reserve necessary to pay the reasonable operating expenses of the Authority.
Grant funds will be used by the County for projects, programs, tangible assets and/or services
that advance the County's economic development strategic goals and business plans. Funds will
not be used to replace or augment routine recurring operational expenses of the Office of
Business and Economic Development.
FISCAL IMPACT: Additional economic development funding of $75,000 will become
available for FY 2014 and an undetermined amount in subsequent years.
GROWTH MANAGEMENT IMPACT: The recommended action supports the goals and
objectives of the Economic Element of the adopted Collier County Growth Management Plan.
LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires
majority vote for approval. -JAK
RECOMMENDATION: Recommendation to approve an agreement between Collier County
and the Collier County Industrial Development Authority providing an Economic Development
Grant and Funding Agreement consisting of a one time $75,000 grant and subsequent remittance
of any annual IDA surplus funds accruing beyond $25,000 in support of the County's economic
development efforts.
Prepared by: Bruce Register, Director, Office of Business & Economic Development
Attachments: Agreement with Collier County Industrial Development Authority
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5/13/2014 16.F.3.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.F.3
Item Summary: Recommendation to approve an Economic Development Grant and Funding
Agreement between the Board of County Commissioners and the Collier County Industrial Development
Authority(IDA)providing for the remittance of historical and future bond issuance fees to Collier County
for use in fostering the County's project specific economic development program efforts.
Meeting Date: 5/13/2014
Prepared By
Name: lehnhard p
Title: Operations Coordinator, Office of Management&Budget
Approved By
Name: klatzkowjeff
Title: County Attorney,
Date: 05/07/2014 04:28:19 PM
Name: ochs_l
Title: County Manager, County Managers Office
Date: 05/07/2014 05:02:39 PM
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5/13/2014 16.F.3.
ECONOMIC DEVELOPMENT GRANT
AND
FUNDING AGREEMENT
This Agreement is between the Collier County Industrial Development Authority,
a public body corporate and politic (the "Authority"), and Collier County, Florida, a
political subdivision of the State of Florida (the "County").
WITNESSETH:
WHEREAS, pursuant to Chapter 159, Parts II and III, Florida Statutes (the "Act"),
the Authority may issue revenue bonds for qualifying projects as defined by and pursuant
to the Act, and may set and charge fees for its services; and
WHEREAS, the Authority has the power to conduct its business, including the
making of contracts for the disposition of its surplus funds; and
WHEREAS, the Authority desires to grant or otherwise expend its surplus fund in
a manner that to the Authority best appears to foster the economic development
objectives set forth in the Act; and
WHEREAS, the Authority, having considered the request of the County's
economic development staff, believes that the granting of the surplus funds of the
Authority pursuant to this Agreement will be consistent with the purposes of the Act and
in the best interests of the citizens of Collier County;
NOW THEREFORE, for and in consideration of the mutual promises contained
herein, the Authority and the County agree as follows
1 Undertakings on the Part of the Authority. Subject to the terms hereof, the
Authority agrees as follows:
(a) Within 10 business days following the execution of this Agreement by the
County, the Authority will make a grant to the County in the amount of $75,000 (the
Grant), with said grant funds to be used by the County for projects, programs, tangible
assets and/or services that advance the County's economic development strategic goals
and business plans. Funds will not be used to replace or augment routine recurring
operational expenses of the Office of Business and Economic Development-
(b) Following the Grant, the Authority will pay over to the County its Surplus
Funds, as defined herein, such surplus funds to be paid within 30 business days of receipt
of such funds by the Authority.
(c) As used in this Agreement, the term "Surplus Funds" shall mean all monies
in possession of the Authority in excess of $25,000, said amount being deemed by the
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Authority as the minimum cash reserve necessary to pay the reasonable operating
expenses of the Authority.
(d) No later than 90 days following the end of the Authority's fiscal year, the
Authority will provide the County with a report of its cash receipts and expenditures
during the preceding fiscal year.
2. Undertakings on the Part of the County. Subject to the terms hereof, the
County agrees as follows:
(a) The County will use reasonable efforts to insure that the Grant and the
Surplus Funds are used only for purposes related to the economic development of the
County, and are not commingled with the general operating funds of the County. Except
as so provided above, it is not the intent of the Authority to restrict the use of the Grant or
Surplus Funds, it being deemed by the Authority that the County, through its economic
development staff, is in the best position to determine the most beneficial use of said
funds.
(b) No later than 90 days following the end of the County's fiscal year, the
County will provide the Authority with a report of how the Grant and Surplus Funds paid
to the County were used during the preceding fiscal year.
3. General Provisions.
(a) The parties agree that the issuance of bonds by the Authority and the
schedule of the bond issuance fees charged by the Authority is at the sole discretion of
the Authority.
(b) This Agreement shall remain in effect until mutually terminated by the
parties.
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IN WITNESS WHEREOF, the parties hereto have entered into this Agreement
by their officers thereunder duly authorized as of the day of , 2014.
SEAL
ATTEST: COLLIER COUNTY INDUSTRIAL
DEVELOPMENT AUTHORITY
By: By:
Secretary Chairman
ATTEST: BOARD OF COUNTY COMMISSIONERS
OF COLLIER COUNTY
By: By:
Deputy Clerk Chairman
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