Agenda 03/12/2013 Item #16F2 3/12/2013 16.F.2.
EXECUTIVE SUMMARY
Recommendation to accept the fourth annual report on the "Impact Fee Program for Existing
Commercial Redevelopment" and approve a resolution extending the program to July 1, 2013, in
light of the upcoming May 2013 discussion/workshop where this has been identified as a potential
topic.
OBJECTIVE: That the Board of County Commissioners (Board) accepts the fourth annual
report on the "Impact Fee Program for Existing Commercial Redevelopment" and approve a
resolution extending the program to July 1, 2013, in light of the upcoming May
discussion/workshop where this has been identified as a potential topic. This will allow the
program to remain active until such time that the Board reviews this Program as well as other
items up for consideration in May (2013).
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.
On March 23, 2010, the Board reviewed the 1st Annual Report on the "Impact Fee Program for
Existing Commercial Redevelopment," (Item 1OB) which, in accordance with Board direction,
provided detailed information on the participation in the Program and the fiscal impact on each
of the affected impact fee trust funds. During the Program's first year,40 applicants participated
with 20 of the applicants being new businesses. The majority of the applicants were referred to
the Impact Fee Administration Office through the Zoning Certificate process.
During the discussion the Board directed that additional information be provided, as a future
agenda item, related to potential improvements to the Program based on the input of various
members of the industry, including the 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(CBIA).
On April 27, 2010, staff presented the input provided by the groups above, for consideration by
the Board (Item 10A). The Board directed that the changes, supported by the DSAC,
Productivity Committee and staff, be implemented, and on May 25, 2010, the Board adopted
Ordinance No. 2010-22 incorporating those Program revisions (Item 17D).
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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.
c. Demolition and reconstruction projects are not eligible for this program.
***
On March 22, 2011, the Board accepted the 2nd Annual Report for the Program, detailing the 21
businesses assisted (Item 16A8). The Board also approved Resolution No. 2011-54 extending
the sunset date of the Program to March 24, 2012.
The Board accepted the 3rd Annual Report for the Program on March 13, 2012, including the
detail of 10 businesses that participated (Item 11C). The Board also approved Resolution No.
2012-45 which extended the Program to March 24, 2013.
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 4. The total number of businesses equals 21. This brings
the total number of companies directly assisted to 92. 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.
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Change of Use Number of Applicants in Program
Year 4
Car Wash to Retail 1
Convenience Store w/gas to Tire Store 1
General Industrial to Medical 1
General Industrial to Church 1
Office to Medical Office 4
Office to Restaurant 1
Restaurant—Seat Increase 2
Retail to Restaurant 3
Service Station to Convenience Store w/gas 1
Warehouse to Medical Office 1
Warehouse to Office 3
Warehouse to General Industrial 1
Warehouse to Dance/Gymnastics 1
Total 21
Staff continues to receive a steady number of inquiries related to the program. Additionally,
information on the program is regularly provided to members of the real estate and development
communities. Knowledge of the availability of the program is widespread and well received.
Further, the City of Bonita Springs continues to advertise that there are no impact fees assessed
for existing buildings and Lee County has eliminated their"Medical Office" impact fee category.
Based on the success of the program over the last three years, with 92 businesses assisted, and
the continuing interest in the program, staff recommends that the program be extended until such
time that the Board provides further direction on this and other programs that were identified
during the discussion on February 12, 2013 (Item 10K). This topic is currently identified as a
May (2013) workshop/discussion item. Accompanying this item is a Resolution, for Board
consideration, to extend the sunset of the Program to July 1, 2013. However, if the Board does
not desire to extend the Program, this report may be accepted without the accompanying
Resolution being approved and the Program will sunset on March 24, 2013.
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.
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Impact Fee Type Year 1 Year 2 Year 3 Year 4
Correctional $26,174.52 $29,395.10 $32,042.88 $55,111.77
Facilities (Jail)
Emergency $11,398.70 $13,787.52 $8,588.64 $14,741.58
Medical Services
Government $59,786.64 $74,214.86 $49,852.52 $84,878.87
Buildings
Law Enforcement $21,065.73 $26,744.34 $3,696.30 $5,624.24
Road $1,147,851.95 $958,874.17 $587,663.04 $972,591.38
Cumulative Total $1,266,277.54 $1,103,015.99 $681,843.38 $1,132,947.84
Similar to research conducted in prior years, staff spoke directly with many of the customers that
qualified for the Program. Many of customers indicated that if the Program was not in place, and
they were required to pay additional impact fees in order to open or relocate their business to a
particular building, they would have elected not to move forward with the proposed use. In
addition, many applicants elected to move forward with projects specifically because of the
availability of this program.
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; therefore the payment of additional impact fees would not be required.
In either case, the County would not collect any additional impact fees and in many cases
businesses would be unable to open or relocate/expand. Therefore, the benefits of the Program,
which 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, minimize the implied fiscal impact on the respective
impact fee trust funds.
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. "
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
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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 County Attorney has reviewed this item which is legally
sufficient and requires a majority vote for Board approval.—JAK
RECOMMENDATION: That the Board of County Commissioners accepts the fourth annual
report on the "Impact Fee Program for Existing Commercial Redevelopment" and approves a
resolution extending the program to July 1, 2013, in light of the upcoming May 2013
discussion/workshop where this has been identified as a potential topic.
Prepared by: Amy Patterson, Impact Fee and Economic Development Manager
Office of Management and Budget
Attachments:
1) Proposed Resolution
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COLLIER COUNTY 10 if
Board of County Commissioners
Item Number: 16.16.F.16.F.2.
Item Summary: Recommendation to accept the fourth annual report on the "Impact Fee
Program for Existing Commercial Redevelopment" and approve a resolution extending the
program to July 1, 2013, in light of the upcoming May 2013 discussion/workshop where this has
been identified as a potential topic.
Meeting Date: 3/12/2013
Prepared By
Name: PattersonAmy
Title: Manager-Impact Fees&EDC,Business Management&
3/4/2013 2:55:44 PM
Approved By
Name: KlatzkowJeff
Title: County Attorney
Date: 3/4/2013 3:44:47 PM
Name: UsherSusan
Title: Management/Budget Analyst, Senior,Office of Manage
Date: 3/5/2013 11:49:24 AM
Name: OchsLeo
Title: County Manager
Date: 3/5/2013 12:09:16 PM
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3/12/2013 16.F.2.
RESOLUTION NO.2013 -
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, PROVIDING FOR THE TEMPORARY
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 MARCH 24,
2013 TO JULY 1,2013,UNLESS OTHERWISE EXTENDED.
WHEREAS, On March 24, 2009, the Board of County Commissioners (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; and
WHEREAS, on March 22, 2011, the Board extended the sunset date of the "Impact Fee
Program for Existing Commercial Redevelopment" to March 24, 2012, by way of Resolution
No. 2011-54; and
WHEREAS, on March 13, 2012, the Board extended the sunset date of the "Impact Fee
Program for Existing Commercial Redevelopment" to March 24, 2013, by way of Resolution
No. 2012-45; and
WHEREAS, the "Impact Fee Program for Existing Commercial Redevelopment" has
assisted 92 businesses over a four-year period; and
WHEREAS, this Program has been identified as a potential topic for Board discussion
and/or workshop in May of 2013; and
WHEREAS, a temporary extension of the Program would allow businesses to utilize the
Program until such time as the Board provides further direction; and
WHEREAS, staff recommends that the sunset date of the "Impact Fee Program for
Existing Commercial Redevelopment"be temporarily extended to July 1, 2013; and
WHEREAS, the Board of County Commissioners accepts the recommendations from
staff.
NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that the sunset date of the
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"Impact Fee Program for Existing Commercial Redevelopment" is hereby extended to July 1,
2013, at which time the Program shall sunset unless otherwise extended by a Resolution of the
Board of County Commissioners.
THIS RESOLUTION ADOPTED after motion, second and majority vote on this the
day of ,2013.
ATTEST: BOARD OF COUNTY COMMISSIONERS
DWIGHT E. BROCK, Clerk COLLIER COUNTY, FLORIDA
By: By:
, Deputy Clerk GEORGIA A. HILLER, ESQ.
CHAIRWOMAN
Approv:. as . arm and
legal s i is - cji
Jeffrey A.A Rh I, ow
County A o =y
AIN
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