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Agenda 06/14/2011 Item # 9F . . . l"I:'T'':T~~ 6/14/2011 Item 9.F. EXECUTIVE SlJM1\.1ARY OBJECTIVE: To direct the County Attorney to draft a resolution calling for the placement of a referendum on the Spring 2012 Presidential Primary ballot that authorizes the Board of County Commissioners to grant ad valorem tax exemptions to qualitying businesses within Collier County as an incentive for encouraging capital investment and job growth, as required by Sec. 196.1995 F.S. and the Florida Constitution. .'/ RECOMMENDATION: Recommendation to direct the County Attorney to draft a resolution which calls for the placement of a referendum on the Spring 2012 Presidential Primary ballot that authorizes Collier county's Board of County Commissioners to grant ad valorem tax exemptions to qualifying businesses within Collier County as an incentive for encouraging capitaJ investment and job growth, as required by Sec. 196.1995 F.S. and the Florida Constitution. CONSIDERATIONS: In recognition of the high unemployment rate in Collier County and the high number of home foreclosures that have impacted citizens and businesses, resulting in general economic distress in Collier County, the Board desires to call a referendum to determine whether it should be authorized to grant such economic development ad valorem tax exemptions to encourage economic development and establish new jobs, which action is in the best interest of Collier County and serves both a county and a public purpose. LEGAL CONSIDERATIONS: Pursuant to Article VII, Sec. 3 of the Florida Constitution and Sec.196.1995, Florida Statutes, the Board of Count)' Commissioners of Collier County, Florida is authorized to call a referendum within its jurisdiction to determine whether the Board may approve an ordinance to grant ad valorem tax exemptions to qualifying new businesses and expansions of qualifying existing businesses as economic development incentives. RECOMMENDATION: Proposed resolution language to be reviewed by the County Attorney for subsequent Board adoption. See accompanying sample resolution language - ~~Hillsborough County Resolution R 10-109" FINANCIAL CONSIDERATIONS: NONE Nature of ReOJlest: Action by the Board of County Commissioners. Time Certain requested - 11 AM PREPARED 'BY: Jennifer Rainey, Executive Aide for Commissioner Georgia Hiller, District 2 Packet Page -118- . . . 6/14/2011 Item 9.F. COLLIER COUNTY Board of County Commissioners Item Number: 9.F. Item Summary: To direct the County Attorney to draft a resolution calling for the placement of a referendum on the Spring 2012 Presidential Primary ballot that authorizes the Board of County Commissioners to grant ad valorem tax exemptions to qualifying businesses within Collier County as an incentive for en~ouraging capital investment and job growth,as required by Sec. 196.1995 F.S. and the Florida Constitution. (Commissioner Hiller) Meeting Date: 6/14/2011- Prepared By Name: RaineyJennifer Title: Executive Aide, BCC 6/8/2011 7:54:08 AM Submitted by Title: Executive Aide, BCC Name: RaineyJennifer 6/8/2011 7:54:10 AM Approved By Name: BrockMaryJo Title: Executive Secretary to County Manager, CMO Date: 6/8/2011 8:35:49 AM Name: OchsLeo Title: County Manager Date: 6/8/2011 9:52:58 AM Packet Page -119- . ~ ~ -. . 6/14/2011 Item 9.F. RIO-I09 ..RESOLUTION RIO-I09 Packet Page -120- 6/14/2011 Item 9.F. ~ RESOLUTION NO. mo.1 09 . A RESOLUTION OF THE BOARD OF COUNTY COMMIsSIONERS OF 'mu,SBOROUGH COUNTY, FLORIDA, . tAL~~(; A REFERENDUM. IN BILLSBOROUGH (::OUNTY TQBE' $LD IN CO:NJUNCTION ,WITH THE. GENERAL ELECTION" OF . NoVEMBER 2, 2010, TO DEl'E~ wHETllERTHE . BOARD OF COUNTY-COMMIsSIONERS SHOULD, :BE. AUTHORlZED-TOGRANT'ECONOMlC'DEVELOPMENT AD VALOREM (pROPERTY) TAX EXEMPTIONS TO NEW BUSINESSES AND EXPANSIONS . OF EXISTING BUSINESSES, PURSUANT TO ARTICLE vn, SECI'ION 3 OF THE FLORIDA CONSTITUTION, TO ENCOURAGE ECONOMIC DEVELOPMENT AND ESTABLISH NEW JOBS; PROVIDING FOR SEVERABnxrY; PROVIDING AN EFFECTIVE DATE. . Upon motion by Commissioner Bagan . seconded by Conunissioner Norman, the following resolution was adopted by a vote of ..:L to .n....-- with Commissioner(s) voting No; Commissioner(s) being absent WHEREAS, pursuant to Article Vll, Section 3 of the Florida Constitution and Section 196.1995, Florida Statutes, the Board of County Commissioners of Hillsborough County, Florida (the ''Board'') is authorized to call a referendum within its jurisdiction to determine whether the Board may grant economic development ad valorem (property) tax. exemptions to qualifying new businesses and expansions of qualifying existing businesses; and . ,-...., WHEREAS, granting such exemptions to qualifying businesses will provide Hillsborough County with an additional economic development incentive which will enhance the desirability of Hillsborough County as a location for new businesses and expansions of existing businesses; and WHEREAS, in recognition of the high unemployment rate in Hillsborough County and the high number of home foreclosures that have impacted citizens and businesses, resulting in general economic distress in Hillsborough C01mty. the Board desires to call a referendum to determine whether it should be authorized to grant such economic development ad valorem (property) tax exemptions to encomage economic development and establish new jobs, which action is in the best interest of Hillsborough County and serves both a county and a public purpose; and WHEREAS, this Resolution is adopted pursuant to the Hillsborough County Charter, Section 101.161, Florida Statutes, Section 196.1995, Florida Statutes, Chapter 125. Florida Statutes, and other applicable provisions oflaw; ;-... . Packet Page -121- . . r-... . 6/14/2011 Item 9.F. NOW, THEREFORE B~ IT RESOLVED BY THE BOARD OF COUNTY COMMISSIO~Rs OF HILLSBOR()UGH COUNTY, FI..O~A, mAT: . Se~tion 1. Recitals. 1'hC r~citals set forth ~ve are adopted by the Board as the findings of the County and ate incorporat~d heJ;ein. .' ' . . , . Section, 2. Referendum. A, referendum is. hereby called in' HillsboroughCounty to be held in c,onjunction with the general election. of November 2, 2010,- to determine whether the . Board should be authorized to grant' economic development ad valorem (property) tax.. exemptions. to new businesses aild expansions of existing businesses, pursuant to Article VII, Section 3 of the Florida Constitution, to encourage economic development and establish new jobs. Section 3. Ballot Title and Question. The ballot title and question for the referendum shall be in the following form: ECONOMIC DEVELOPMENT PROPERTY TAX EXEMPTIONS FOR NEW BUSINESSES AND EXPANSIONS OF EXISTING BUSINESSES Shall the Board of County Commissioners of Hillsborough County be authorized to grant, pursuant to s. 3, Art. vn of the State Constitution, property tax exemptions to new businesses and expansions of existing businesses to encourage economic development and establish new jobs? _ Yes-For authority to grant exemptions _'No-Against authority to grant exemptions Section 4. Notice of Referendum. Notice of the referendum shall be published in a newspaper of general circulation in Hillsborough County, at least twice, once in the fIfth week and once in the third week prior to the week in which the referendum is held) the date of first publication in said newspaper to be at least thirty (30) days before said referendum, in the manner provided in Section 100.342, Florida Statutes. Section 5. Guidelines, PoUcies and Procedures. In addition to being subject to voter referendum as provided for in this Resolution, in order to ensure that applications for economic development ad valorem (property) :tax exemptions are considered in a non-arbitrary and non- discriminatory mamier, the BoBId will not consider such an exemption for any particular new business or an expansion of any particular existing business unless the Board has enacted by ordinance guidelines, policies and procedures governing the Board's consideration of applications for such exemptions. Section 6. Severability. It is declared to be the intent of the Board that if any section, 2 Packet Page -122- 6/14/2011 Item 9.F. sentence, clause or p~ovision of this Resolution be held invalid by a court of competent jurisdicti~n, it shall il;1 no way affect the validity of the remaining portions of this Resolution. Section 7. Effective Date. This Resolution shall be effective immediately uPon its adoption. Immediately upon adoption, the Clerk to the Board is directed to provide a copy of this Resolution to the Hillsboro,!:!gh County Supervisor of Elections. I I .' ."-' STATE OF FLORIDA COUNTY OF IDLLSBOROUGH I, Pat Frank, Clerk of the Circuit Court and Ex Officio Clerk of the Board of County Commissioners ofHillsborougb County, Florida, do hereby certify that the above and foregoing is a true and correct copy of a resolution adopted by the Board at its regular meeting of AUClUst 4 , 20 I 0, as the same appears of record in Minute Book ---4.1.L of the Public Records of Hills borough County, Florida. WITNESS my hand and official seal this 5th day of August .2010. ,,-..... PAT FRANK, CLERK OF THE CIRCUIT COURT By: ~c:Lw.DK~- Deputy Clerk .: I Approved as to form . and legal sufficiency BT-~ ~ Seni~:l ssistant c~unty Attorney Eco.D8v.Ad Valorem. Tax.Excmplion.Refcrcndum.Rclo.08~10.C1C1n All. B Final Venion.doc ,,-..... 3 . Packet Page -123- n~~~ 1 ~+") Referendum Required 6/14/2011 Item 9.F. Referendum Required . Tim Nance [Timnance2012@comcast.net] Sent: To: Cc: Wednesday, June 01, 2011 5:43 PM RalaDonna; CoyleFred; HiIlerGeorgia; CotettaJim;HenningTom Abe Skinner [abe.skinner@c:ollierappraiser.c~m]; Larry Ray [Iray@collierlax.an]; Supervisor Elections; Dwight E. Brock . . Press Release 5.30.11.pdf (29 KB) ; 196.1995 Statute,pdf (41 KB) ; Article 7 Section 3.pdf (26 KB) ; Economic . Developmen~ Ord.pdf (165 KB); Ex~utlve Summary.pdf (76 ~) - . Attachments: Collier County Commissioners: Jim Coletta Fred Coyle Donna Fiala Tom Henning .~ Georgia Hiller ~ . Dear Commissioners: The Counties Economic Development Ordinance (Chapter 49) providing for the relief of County property and tangible personal property tax obligations for select new and expanding businesses . is unconstitutional and in violation of Florida Statutes. The Florida Constitution Art 3 Section 7 and Florida Statute 196.1995 require that the voters of Collier County approve such an ordinance before it is enacted by the Board of County Commissioners. You, the Board of County Commissioners, have never put this question to the voters of Collier County. As such, please remove the unconstitutional provisions from the ordinance, and place the question with the wording as provided for in the statute on the 2012 ballot, to allow the voters of Collier County to decide by referendum whether or not they want to see select private businesses ~ot required to pay their County real property taxes for improvements and tangible personal property taxes. Please see the attached press release and supporting documentation. https://mail.colliergov.net/owa/?ae=Item&Packet Page _124_gAAAACBw7hYJwxISLoTg... 6/2/2011 'DON" ') nf ') Referendum Required 6/14/2011 Item 9.F. Respectfully submitted, Cc: Dwight Brock, County Clerk;-Larry Ray, Tax Collector; Abe Skinner, Property Appraiser; Jennifer Edwards, Supervisor of Elections . .i i I ............. . . Tim Nance, Republican candidate for County Commission, District 5 -""""' . ",.......... . https://mai1.colliergov.net/owa/?ae=Item&1 Packet Page -125- sAAAACBw7h YJwxISLo Tg... 6/2/2011 ~ 6/14/2011 Item 9.F. . 196.1995Economlc development ad valorem tax exemption......: (l)The board of county commissioners of any county or the governing authority of any municipality shall call a referendum within Its total jurisdiction to determine whether itS respectlve'jurisdiction may grant economic development acj valorem tax exemptions under S. 3"Art. VU of the State Constitution If: (a)The board of county 'commlssioners,of the county or the governing authority of the municipality votes to , . .' , ,hold such 'referendum; 'or . . . , ' (b)The board. of county commissioners of thec'ounty or the govel1'ling authority of the municipality receives a petition signed by 10 percent of the,regis,tered electors of its reSpective jurisdiction, which petition calls for the . " . holding of such: referendum. . '. (2)The ballot question In such referendum,shall tie in substantially the following form: Shall the board cif county commissioners of this county (or the governing authority of this municipality, or both) be authorized to grant, pursuant to s. 3, Art. VII of the State Constitution, property tax exemptions to new businesses and expansions of existing businesses? _ Yes-For authority to grant exemptions. _ No-Against authority to grant exemptions. (3)The board of county commissioners or the governing authority of the municipality that calls a referendum within Its total jurisdiction to determine whether Its respective jurisdiction may grant economic development ad valorem tax exemptions may vote to limit the effect of the referendum to authority to grant economic development tax exemptions for new businesses and expansions of existing businesses located in an enterprise zone or a brownfield area, as defined In s. 376.79(4). If an area nominated to be an enterprise zone pursuant to s. 290.0055 has not yet been designated pursuant to s. 290.0065, the board of county commissioners or the governing authority of the municipality may call such referendum prior to such designation; however, the authority to grant economic development ad valorem tax exemptions does not apply until such area is designated pursuant to s. 290.0065. The ballot question in such referendum shall be In substantially the following form and shall be used In lieu of the ballot question prescribed in subsection (2): . Shall the board of county commissioners of this county (or the governing authority of this municipality, or both) be authorized to grant, pursuant to s. 3, Art, VII of the State Constitution, property tax exemptions for new businesses and expansions of existing businesses which are located in an enterprise zone or a brownfield area? _Yes-For authority to grant exemptions. _No-Against authority to grant exemptions. ..-.. (4)A referendum pursuant to this section may be called only once in any 12-month period. (5)Upon a majority vote in favor of such authority, the board of county commissioners or the governing authority of the municipality, at Its discretion, by ordinance may exempt from ad valorem taxation up to 100 percent of the assessed value of alllmprovernents to real property made by or for the use 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, provided that the Improvements to real property are made or the tangible personal property Is added or increased on or after the day the ordinance is adopted. However, If the authority to grant exemptions is approved In a referendum in which the ballot question contained in subsection (3) appears on the ballot, the authority of the board of county commissioners or the governing authority of the municipality to grant exemptions is limited solely to new businesses and expansions of existing businesses that are located in an enterprise zone or brownfield area. Property acquired to replace existing property shall not be considered to facilitate a business expansion. The exemption applies only to taxes levied by the respective unit of government granting the exemption. The exemption does' not apply, however, to taxes levied for the payment of bonds or to taxes authorized by a vote of the electors pursuant to s. 9(b) or s. 12, Art. VII of the State Constitution. Any such exemption shall remain in effect for up to 10 years with respect to any particular facility, regardless of any change in the authority of the county or municipality to grant such exemptions. The exemption shall not be prolonged or extended by granting exemptions from additional taxes or by virtue of any reorganization or sale of the business receiving the exemption. (6)Wlth respect to a new business as defined by s. 196.012(15)(c), the munldpality annexing the property on which the business is situated may grant an economic development ad valorem tax exemption under this section to that business for a period that will expire upon the expiration of the exemption granted by the county. If the county renews the exemption under subsection (7), the municipality may also extend Its exemption. A municipal . Packet Page -126- 6/14/2011 Item 9.F. ~ economic development ad valorem tax exemption granted under this subsection may not extend beyond the duration"of the county exemption. (7)The authority to grant exemptions under this section" expires 10 years after the date such authority was approved in an election, but such authorlty may be renewed for subsequent 10-year perlods if each 10-year renewal is a"pproved In a referendum called and held pursuant to this section. " (8)Any person, firm, or corporation which desires an economic development ad valorem tax exemption shall, In the" year the exemption Is desired to take effect, file a written apP'IiCClti~n on a form prescribed by the department with the board of county commissioners or the governing authority of the municipality, or both. The application shall request the adoption of an ordinance granting the applicant an exemption pursuant to this section and shall " include the following information: (a)The name and location of the new business or the expansion of an existing business; (b)A description of the improvements to real property for which an exemption is requested and the date of commencement of construction of such improvements; (c)A description of the tangible personal property for which an exemption Is requested and the dates when such property was or is to be purchased; (d)Proof, to the satisfaction of the board of county commissioners or the governing authority of the municipality, that the applicant is a new business or an expansion of an existing business, as defined in s. 196.012(15) or (16); and (e) Other information deemed necessary by the department. (9)Before It takes action on the application, the board of county commissioners or the governing authority of the municipality shall deliver a copy of the application to the property appraiser of the county. After careful consideration, the property appraiser shall report the following Information to the board of county commissioners or the governing authority of the municipality: (a)The total revenue available to the county or municipality for the current fiscal year from ad valorem tax sources, or an estimate of such revenue If the actual total revenue available cannot be determined; (b)Any revenue lost to the county or municipality for the current fiscal year by virtue of exemptions previously granted under this section, or an estimate of such revenue If the actual revenue lost cannot be determined; (c)An estimate of the revenue which would be lost to the county or municipality during the current fiscal year if the exemption applied for were granted had the property for which the exemption Is requested otherwise been subject to taxation; and (d)A determination as to whether the property for which an exemption Is requested is to be incorporated Into a new business or the expansion of an existing business, as defined in s. 196.012(15) or (16), or Into neither, which determination the property appraiser shall also affix to the face of the application. Upon the request of the property appraiser, the department shall provide to him or her such information as it may have available to assist in making such determination. (10)An ordinance granting an exemption under this section shall be adopted "In the same manner as any other ordinance of the county or municipality and shall include the following: (a)The name and address of the new business or expansion of an eXisting business to which the exemption Is granted; (b)The total amount of revenue available to the county or munIcipality from ad valorem tax sources for the current fiscal year, the total amount of revenue lost to the county or munic:lpality for the current fiscal year by virtue of economic development ad valorem tax exemptions currently In effect, and the estimated revenue loss to the county or municIpality for the current fiscal year attributable to the exemption of the business named in the ordinance; (c)The period of time for which the exemption will remain in effect and the expiration date of the exemption; and (d)A finding that the business named In the ordinance meets the requirements of s. 196.012(15) or (16). History.-s. 2, ch. 80-347; s. 1, ch. 83-141; s. 30, ch. 84-356; s. 11, ch. 86-300; s. 1, ch. 90-57; s. 68, ch. 94- 136; s. 1477, ch. 95-147; s. 57, ch. 95-280; s. 110, ch. 99-251; s. 5, ch. 2006-291; s. 3, ch. 2010-147. . ~ . ~ . Packet Page -127- '. .- 6/14/2011 Item 9.F. . . . SECTION 3. Taxes; exemptions."":"" (a)All prop.erty owned by a municipality and used exclusively by it for municipal or public purposes shall be .exempt from taxation. A municipality, owning property outside the municipality, may be required by general law to make payment to the taxing unit in which the . property is locCited. Such portions' of property as are used predominantly for educational, . literary, sdentific,religious' or charitabl~ purposes -may be. exempted by generallawtrom . . taxation. . (b)There shall be exempt from taxation, 'cumulatively, to every head of a family residing in this state, 'household goods and personal effects to the' value fixed by general law, .nbt less' than one thousand dollars, and to every widow or widower or person who is blind or totally and permanently disabled, property to the value fixed by general law not less than five hundred dollars. (c)Any county or municipality may, for the purpose of its respective tax levy and subject to the provisions of this subsection and general law, grant community and economic development ad valorem tax exemptions to new businesses and expansions of existing businesses, as defined by'generallaw. Such an exemption may be granted only by ordinance of the county or municipality, and only after the electors of the county or municipality voting on such question in a referendum authorize the county or municipality to adopt such ordinances. An exemption so granted shall apply to improvements to real property made by or for the use of a new business and improvements to real property related to the expansion of an existing business and shall also apply to tangible personal property of such new business and tangible personal property related to the expansion of an existing business. The amount or limits of the amount of such exemption shall be specified by general law. The period of time for which such exemption may be granted to a new business or expansion of an existing business shall be determined by general law. The authority to grant such exemption shall expire ten years from the date of approval by the electors of the county or municipality, and may be renewable by referendum as provided by general law . (d)Any county or municipality may, for the purpose of its respective tax levy and subject to the provisions of this subsection and general law, grant historic preservation ad valorem tax exemptions to owners of historic properties. This exemption may be granted only by ordinance of the county or municipality. The amount or limits of the amount of this exemption and the requirements for eligible properties must be specified by general law. The period of time for which this exemption may be granted to a property owner shall be determined by general law . (e)By general law and subject to conditions specified therein, twenty-five thousand dollars of the assessed value of property subject to tangible personal property tax shall be exempt from ad valorem taxation. 1 (f)There shall be granted an ad valorem tax exemption for real property dedicated in perpetuity for conservation purposes, including real property encumbered by perpetual conservation easements or by other perpetual conservation protections, as defined by general law. (g)By general law and subject to the conditions specified therein, each person who receives a homestead exemption as provided in section 6 of this article; who was a member of the United States military or military reserves, the United States Coast Guard or its reserves, or the Florida National Guard; and who was deployed during the preceding calendar year on active duty outside the continental United States, Alaska, or Hawaii in support of military operations designated by the legislature shall receive an additional exemption equal to a percentage of the taxable value of his or her homestead property. The applicable percentage shall be calculated as the number of days during the preceding calendar year the person was deployed on active duty outside the continental United States, Alaska, or Hawaii .in support of military operations designated by the legislature divided by the number of days in that year. History.-Am. S.J.R.'s 9-E, 15-E, 1980; adopted 1980; Am. C.S. for S.J.R.'s 318,356,1988; adopted 1988; Am. S.J.R. 152, 1992; adopted 1992; Am. H.J.R. 969,1997; adopted 1998; Am. C.S. for S.J.R. 2-0, 2007; adopted 2008; Ams. proposed by Taxation and Budget Reform Commission, Revision Nos. 3 and 4, 2008, filed with the Secretary of State April 28, 2008; adopted 2008; Am. H.J.R. 833, 2009; adopted 2010. it --- . Packet Page -128- '\. 6/14/2011 Item 9.F. ,,--.... 1 Note.- This subsection, or:iginaUy designated (g) by Revision No.4 of the Taxation ~nd Budget Reform Commission, 2008, was redesignated. (f) by the editors to conform to the redesignation of sub~ectionsby Revision No.3 of the Taxation and Budget Reform Commission, 2008. . ,,-..... . ~ . Packet Page -129- 6/14/2011 Item 9.F. e. . For immediate.release, May 31, 2011. Collier County: Tim Nance, Repub.lican candid~te for Collier County Commission in District 5, Challenges changes.to the "Collier Economic Development Ordinance, and calls for a Referendum. The Collier County Commission recently approved, by a 3 to 2 vote, a controversial amendment to the county Economic Development Ordinance. This ordinance was designed to provide economic incentives to companies that create new jobs and diversify an~ expand our economy. The ordinance established objective criteria as far as the number of jobs to be created, the salary for those jobs, and the location where those jobs are created, preference being given to jobs created"in the eastern part of the county. The incentives are a variety of cash payments. ~ This recent amendment proposed and approved by commissioners Coletta, Coyle and Fiala allows the county commission to waive the objective criteria of the Economic Incentive Program and substitute their personal choice. This is nothing more than a provision that allows a voting block of commissioners to give special treatment to favored applicants. Favorites and winners are chosen. Losers walk. Our Economic Development Ordinance is now simply customized to fit the needs of special interests, shades of the ill considered Jackson Laboratory proposal all over again. I am opposed to these recently adopted changes. This waiver means nothing more than three commissioners can give tax payer dollars to any private company they select without qualificati<?n. This is unacceptable. Collier economic incentives should be granted solely on objective criteria and a level playing field. All businesses should be treated equally. Anything less is simply crony-capitalism and bad government. The P~operty Tax Stimulus Program provision of our ordinance is especially troubling. This program offers cash payments to reimburse property taxes. Florida Constitution, Article 7, Section 3, specifically requires counties to hold a referendum of voters prior to establishing an ordinance to grant ad valorem tax exemptions to new businesses or expansions of existing businesses. In providing private businesses cash "payments" to reimburse taxes, rather than "exemptions", the Collier ordinance is clearly another attempt by the voting block of 3 commissioners to bypass Florida law and the taxpayer's right to vote on whether they want to see public tax dollars paid to private businesses. On behalf of the taxpayers of Collier County I call for a referendum of the voters before the Board of County Commissioners grants property tax exemotions or rebates to any orivate business. ~ The Florida Constitution and Florida Statutes clearly state that any ordinance that permits the exemption of private businesses from paying property taxes must be approved by a voter referendum. Prior to the referendum, I look forward to a full and open public review and discussion of our Property Tax Stimulus ordinance and the costs and potential benefits of such a program to our local economy. Let the voters and taxpayers consider and decide. e Packet Page -130- 6/14/2011 Item 9.F. "......... I support worthwhile economic incentives with objective criteria. I support the Florida law requiring a referendum by the people before exempting any private business from paying .their. ad valorem taxes. .-1 am opposed to any property tax give-away program specifically tailored for any single favored business. . . Tim Nance, Republican candidate for Collier County Commission, District 5. For further information contact Tim Nance at 239-641-5414. Attachments: Florida Constitution, State Statute 196.1995, Economic Development Ordinance, and Executive Summary ~ . ~ . Packet Page -131- . .. ..--. . 6/14/2011 Item 9.F. EXECUTIVE SUMMARY Request for authorization to advertise and bring back for future consideration an amendment to Chapter 49 of the Collier County Code of Laws and Ordinances, relating to economic development,which will es~blish additional criteria to be evaluated (1) when there is a request to lessen or waive certain requirements in existing economic development ordinances and programs, and (2) when there is an application seeking grants and/or other incentives which fall outside existing economic development ordinances and programs. OBJECTIVE: To obtain the Board of County Commissioners' (Board's) authorization to advertise and bring back for future consideration an ordinance amending Chapter 49 of the Code of Laws and Ordinances in order to establish additional criteria and provide flexibility in awarding grants and other economic incentives in addition to the eligibility criteria set forth in each incentive program. CONSIDERATIONS: Chapter 49 of the Code of Laws and Ordinances is a "toolbox" of economic incentive programs intended to promote and foster economic diversification through the retention of high wage jobs in targeted industry clusters. The first of these programs was the Job Creation Investment Program. Subsequently, the Board established the Fee Payment Assistance Program, the Property Tax Stimulus Program, an Advanced Broadband Infrastructure Investment Program, a Job Retention Investment Program, and a mechanism to create Innovation Zones. Some of these programs have been amended from time-to-time. At its May 10, 2011 regular meeting (Item 10-C), the Board considered an Economic Development Council request to waive the minimum job creation and wage requirement for a business locating in western Collier County (Collier Scrap Metal Recycling, Inc.). At the end of . this discussion, the Board directed the County Attorney to draft an amending ordinance to allow the Board, upon the finding of good cause shown, to waive some or all of the requirements set forth in the programs codified in Chapter 49. It is the opinion of the County Attorney that established criteria would help the Board in making such a determination, and lessen the. risk that the Board's decision could be challenged as arbitrary or capricious. When drafting this amendment, it became clear that the same criteria that could be utilized when the Board is asked to lessen or waive requirements in existing economic development programs could also be utilized if the Board is asked to consider awarding a grant or other incentives which fall outside existing programs. The proposed amendment creates new Sections 49-10, 49-11 and 49-12 to the Code of Laws and Ordinances of Collier County which would read as follows: ARTICLE 1. IN GENERAL Section 49-10 Economic Development - Puroose. It is the policy of the Board to promote economic growth which results in high wage jobs and helps diversify the economy of Collier County. To further this policy, the Board from time-to-time will enact ordinances designed to encourage private sector investing within Collier County which results in Packet Page -132- 6/14/2011 Item 9.F. ,......... increased employment opportunities for Collier County residents. Such ordinances are in addition to all powers the Board enjoys under its Home Rule powers and as set forth in Florida Statutes Sec. 125.045 (County economic development powers), as may be amended. from. time-to-time by th~ State Legislature. . Section"4~-ll Criteria in Awarding Grants and otherIncentives In addition to the Eligibility Criteria set forth in each program, the Board may also consider the following criteria in its review: ~ a. The type of business that is proposed; . b. The total number of net jobs to be created and retained by the project; c. The expected number of employees who will reside in the County; d. The average wage of the jobs to be created and retained, both considering executive compensation and excluding executive compensation; e. The health, retirement and other benefit package offered to the prospective. employees; f. The projected capital investment of the project, including land, building and equipment; g. The projected completion date for the project. If the project is to be completed in phases, then the dates of such phases and the number of jobs projected to commence with each phase; h. The environmental impact of the proposed business; i. The impact that the proposed business would have on existed businesses and employment within Collier County; J. Whether the proposed business will utilize local sources of supply; k. Whether the proposed business is expected to employ current County residents; 1. Whether the .proposed business is expected to attract other employers to Collier County; m. The current economic climate of the County, including the unemployment fate and housing vacancy rate; n. Whether the proposed relocation or expansion would occur without the award; o. Whether the proposed business can be serviced by existing mass transit; p. The impact to County Government revenues projected by the business and by the increase in employment; q. The impact to County Government costs in providing services and infrastructure to the proposed business and projected employment; and r. Other such factors that the Board may deem relevant in evaluating the merits of the application. . Applications for grants and other incentives that do not fall within existing programs will be evaluated utilizing the criteria set forth above. Section 49-12 Waiver. .-.. With respect to all economic development ordinances previously enacted by the Board of County Commissioners, which are codified in Chapter 49 of the . 2 Packet Page -133- . . ....-.. . <. 6/14/2011 Item 9.F. Collier County Code of Laws and Ordinances, and unless otherwise set forth to the contrary, with respect to all economic development ordinances to be enacted hereafter, such ordinancesanrl ~e programs set forth therein are to be liberally construed, and that upon the finding of goo4 cause show, utilizing the criteria set forth in Section 49"-11, the Board may lessen:or waive any requirements set forth in such ordinances and the programs set forth therein. FISCAL IMPACT: Advertising costs are approximately $400.00. GROWTH MANAGEMENT IMP ACT: None. RECOMMENDATION: That the Board of County Commissioners authorizes the County Attorney to advertise and bring back for future consideration an ordinance amending Chapter 49 .ofthe Code of Laws and Ordinances which establishes additional criteria and provides flexibility in awarding grants and other economic incentives in addition to the eligibility criteria set forth in each incentive program. PREPARED BY: Jeffrey A. Klatzkow, County Attorney 3 Packet Page -134-