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Agenda 06/24/2014 Item #16F16/24/2014 16.F.1. EXECUTIVE SUMMARY Recommendation to accept the fifth annual report on the "Impact Fee Program for Existing Commercial Redevelopment" and approve a resolution extending the Program to July 1, 2015, based on the continuing interest in the Program. OBJECTIVE: That the Board of County Commissioners (Board) accepts the fifth annual report on the "Impact Fee Program for Existing Commercial Redevelopment" and approves a resolution extending the Program to July 1, 2015, based on the continuing interest in the Program. CONSIDERATIONS: On March 24, 2009, the Board adopted Ordinance No. 2009 -14, which established the "Impact Fee Program for Existing Commercial Redevelopment." The development of this Program arose from two basic problems: 1) a large number of older buildings throughout Collier County were unable to attract tenants due to the economic downturn combined with the required payment of additional impact fees related to changes of use; and 2) tenants that were unable to find space in existing buildings due to the required payment of additional impact fees related to changes of use. The "Impact Fee Program for Existing Commercial Redevelopment" provided a solution to both of these issues. Similar to other economic incentive programs, this Program provides economic relief to a targeted problem. Since the initial Program adoption, the Board has implemented changes to the Program based on the input of various members of the building industry, including the (former) Economic Development Council of Collier County, the Collier County Productivity Committee, the Development Services Advisory Committee (DSAC) and leadership of the Collier Building Industry Association (May 2010) and the expansion of the Program to include impact fee assessments for Water and Wastewater, meeting specified criteria (November 2013). The adopted program provisions are as follows: Collier County Code of Laws and Ordinances - Chapter 74 74 -201. Imposition of Fees (5) Impact Fee Program for Existing Commercial Redevelopment. Proposed developments which meet the criteria set forth below shall not be assessed additional impact fees related to changes of use within the existing buildings, except for water and wastewater impact fee assessments which are exempt from this program. This program will officially sunset two years from the date of adoption unless continued by a resolution of the Board of County Commissioners prior to this date. a. Development is proposed within a lawfully existing building which has had a Certificate of Occupancy issued for at least 3 years. Impact fees for the existing building must have been paid the then applicable impact fees at time of construction; and b. Proposed development is solely within the existing building and does not include the addition of any new square footage. Packet Page -1622- 6/24/2014 16.F.1. C. Demolition and reconstruction projects are not eligible for this program. d. For the purposes of water and wastewater impact fees, projects that require an existing meter to be upsized are not eligible for this program. Beginning in 2010, and annually thereafter, the Board has reviewed the Annual Report on the "Impact Fee Program for Existing Commercial Redevelopment" which, in accordance with Board direction, provides detailed information on the participation in the Program and the fiscal impact on each of the affected impact fee trust funds. On March 12, 2013 the Board accepted the fourth annual report on the "Impact Fee Program for Existing Commercial Redevelopment" and approved a resolution extending the program to July 1, 2013. On June 25, 2013, the Program was further extended to July 1, 2014. Since the Board approved the extension in 2013, interested and participation in the Program has remained steady, with 18 businesses qualifying to participate. The 18 new applicants bring the total participants, over the history of the Program, to 116 businesses assisted, and as noted above, interest in the Program continues. Accompanying this item is a Resolution, for Board consideration, to extend the sunset of the Program to July 1, 2015. However, if the Board does not desire to extend the Program will sunset on July 1, 2014. The following chart provides a list of the types, and amounts by type, of changes of use that are participating in this Program in Year 5. The land uses indicated correspond to the closest applicable land use for establishing the impact fee rates to be applied. These categories do not dictate the land use classifications for zoning purposes. Change of Use Number of Applicants in Program Year 5 Dance Studio /Gymnastics to Church I General Industrial to Office I Retail to Medical Office 1 Retail to Restaurant 5 Office to Medical Office 3 Office to Restaurant I Restaurant — Seat Increase I Retail to Office 2 Retail to Office 3 Total ig Packet Page -1623- 6/24/2014 161.1. FISCAL IMPACT: The following is a breakdown, by impact fee type, of the total impact fees that were not assessed for the qualifying changes of use. The decline in the Cumulative Total is related to the land uses of the participating businesses (lower intensity) not the number of Program participants, and Year 4 included 3 additional months due to the timing of the Program extensions. Impact Year I Year 2 Year 3 Year 4 Year 5 Fee Type Correctional $26,174.52 $29,395.10 $32,042.88 $57,670.41 $8,396.10 Facilities (Jail) Emergency $11,398.70 $13,787.52 $8,588.64 $15,413.15 $2,203.31 Medical Services Government $59,786.64 $74,214.86 $49,852.52 $88,816.80 $12,996.08 Buildings Law $21,065.73 $26,744.34 $3,696.30 $7,790.96 $7,113.15 Enforcement Road $1,147,851.95 $958,874.17 $587,663.04 $1,079,422.72 $165,434.70 Water $0.00 $0.00 $0.00 $0.00 $113,457.00 Sewer $0.00 $0.00 $0.00 $0.00 $113,988.00 Cumulative $1,266,277.54 $1,103,015.99 $681,843.38 $1,249,114.04 $423,588.34 Total The benefits of the Program include encouraging new business within Collier County, retention and expansion of existing businesses in Collier County and absorption of a portion of the supply of vacant commercial lease space, in older buildings. If this program was not available, the alternate option for such customers would have been to continue seeking out tenant spaces in which the impact fees had been paid for a use similar to the type they were proposing or abandon plans to relocate /expand. In either case, the County would not collect any additional impact fees. GROWTH MANAGEMENT IMPACT: This Program is consistent with Policy 3.12 of the Economic Element of the GMP which states: "Collier County, in coordination with other appropriate entities, will support the establishment and retention of small businesses throughout the County. " Packet Page -1624- 6/24/2014 16.F.1. Additionally, this Program does not in any way negate or waive existing zoning laws. Any relocation of a new or existing business into an existing facility generates the need for a Zoning Certificate from the Zoning Department and the subsequent issuing of a Business Tax Receipt from the Collier County Tax Collector. Staff, through issuing the Zoning Certificate, verifies that the new business location is properly zoned to allow for the business to legally operate at a new location. Additionally, prior to issuing a Zoning Certificate, staff reviews the proposed business location to ensure that the site provides the required number of parking spaces and meets the minimum landscape code requirements. If the new business location is not located within a zoning district that permits the proposed use, the Zoning Certificate is denied and the business owner is directed to consider other areas within the County that are appropriately zoned for the proposed use. In the alternative, the applicant is advised of the option to seek to rezone the property to a zoning district that would allow the proposed commercial use. All rezoning applications first have to be found consistent with the applicable elements of the Collier County Growth Management Plan (GMP) as well as found to be compatible with the adjacent land uses. If deemed inconsistent with the Comprehensive Plan, the applicant would have to seek an amendment to the GMP. LEGAL CONSIDERATIONS: The proposed Resolution was reviewed by the County Attorney, is approved as to form and legality, and requires majority support for approval. -JAK RECOMMENDATION: That the Board of County Commissioners accepts the fifth annual report on the "Impact Fee Program for Existing Commercial Redevelopment" and approves a resolution extending the Program to July 1, 2015, based on the continuing interest in the Program. Prepared by: Amy Patterson, Impact Fee Manager Office of Management and Budget Attachments: 1) Proposed Resolution Packet Page -1625- 6/24/2014 16. F.1. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.F.16.F.1. Item Summary: Recommendation to accept the fifth annual report on the "Impact Fee Program for Existing Commercial Redevelopment" and approve a resolution extending the Program to July 1, 2015, based on the continuing interest in the Program. Meeting Date: 6/24/2014 Prepared By Name: PattersonAmy Title: Manager - Impact Fees & EDC, Business Management & Budget Office 6/10/2014 12:37:17 PM Approved By Name: KlatzkowJeff Title: County Attorney, Date: 6/13/2014 4:31:22 PM Name: UsherSusan Title: Management/Budget Analyst, Senior, Office of Management & Budget Date: 6/16/2014 4:48:22 PM Name: OchsLeo Title: County Manager, County Managers Office Date: 6/17/2014 10:29:42 AM Packet Page -1626- 6/24/2014 16.F.1. RESOLUTION NO. 2014- A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA PROVIDING FOR THE EXTENSION OF THE SUNSET DATE OF THE `IMPACT FEE PROGRAM FOR EXISTING COMMERCIAL REDEVELOPMENT," AS PROVIDED IN CHAPTER 74, SECTION 74- 201(c)(5) OF THE COLLIER COUNTY CODE OF LAWS AND ORDINANCES, FROM JULY 1, 2014 TO JULY 1, 2015, UNLESS OTHERWISE EXTENDED. WHEREAS, On March 24, 2009, the Board adopted Ordinance No. 2009 -14, which established the "Impact Fee Program for Existing Commercial Redevelopment;" and WHEREAS, on March 24, 2011, the "Impact Fee Program for Existing Commercial Redevelopment" was scheduled to sunset in accordance with Chapter 74, Section 74- 201(c)(5) of the Collier County Code of Laws and Ordinances, unless otherwise extended by a Resolution of the Board of County Commissioners; and WHEREAS, on March 22, 2011, the Board of County Commissioners extended the sunset date of the "Impact Fee Program for Existing Commercial Redevelopment" to March 24, 2012 by way of Resolution 2011 -54; and WHEREAS, on March 13, 2012, the Board of County Commissioners extended the sunset date of the "Impact Fee Program for Existing Commercial Redevelopment" to March 24, 2013 by way of Resolution 2012 -45; and WHEREAS, this Program was identified a potential topic for discussion and/or workshop in May of 2013; and WHEREAS, on March 12, 2013, the Board of County Commissioners approved a temporary extension of the Program, to July 1, 2013, due to the Program having been identified a potential topic for discussion and/or workshop and the temporary extension of the Program allowed businesses to utilize the Program, until the Board of County Commissioners provided further direction; and WHEREAS, on May 28, 2013 and June 4, 2013, the Board of County Commissioners heard presentations and discussed impact fees and economic development. During the workshop, many of the concerns raised by speakers related to impact fees for commercial development; and Packet Page -1627- 6/24/2014 165.1. WHEREAS, on June 25, 2013, the Board of County Commissioners extended the sunset date of the "Impact Fee Program for Existing Commercial Redevelopment" to July 1, 2014, by way of Resolution 2013 -149; and WHEREAS, "Impact Fee Program for Existing Commercial Redevelopment" has assisted 116 businesses over a five -year period; and WHEREAS, an extension of the Program would allow businesses to continue to utilize the Program, until the Board of County Commissioners provides further direction; and WHEREAS, staff recommends that the sunset date of the "Impact Fee Program for Existing Commercial Redevelopment" be extended to July 1, 2015; and staff. WHEREAS, the Board of County Commissioners accepts the recommendations from NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: The Board of County Commissioners hereby declares, the sunset date of the "Impact Fee Program for Existing Commercial Redevelopment' shall be extended to July 1, 2015, at which time the Program shall sunset unless otherwise extended by a Resolution of the Board of County Commissioners. THIS RESOLUTION IS ADOPTED after motion; second and majority vote favoring adoption this day of ATTEST: DWIGHT E. BROCK, Clerk n Jeffrey County 2014. BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA By: Deputy Clerk as Worm and legality: TOM HENNING, CHAIRMAN Page 2 of 2 Packet Page -1628-