Agenda 04/27/2010 Item #10A
Agenda Item No. 10A
April 27, 2010
Page 1 of 15
EXECUTIVE SUMMARY
Recommendation to review the potential changes to the "Impact Fee Program for Existing
Commercial Redevelopment," prepared in accordance with direction provided by the
Board of County Commissioners on March 23, 2010, and provide direction to the County
Manager, or his designee, and the County Attorney as to any such changes that will be
incorporated into the Program, by way of changes to the Consolidated Impact Fee
Ordinance, to be considered for adoption at a future regular meeting of the Board of
County Commissioners as an advertised public hearing.
OBJECTIVE: That the Board of County Commissioners (Board) review the potential changes
to the "Impact Fee Program for Existing Commercial Redevelopment," prepared in accordance
with direction provided by the Board of County Commissioners on March 23,2010, and provide
direction to the County Manager, or his designee and the County Attorney as to any such
changes that will be incorporated into the Program, by way of changes to the Consolidated
Impact Fee Ordinance, to be considered for adoption at a future regular meeting of the Board of
County Commissioners as an advertised public hearing.
CONSIDERATIONS: On March 23, 2010, the Board reviewed the 1 st Annual Report on the
"Impact Fee Program for Existing Commercial Redevelopment," (Item lOB) 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. This report is
attached as supplemental information to this Executive Summary.
During the discussion (Item lOB) the following issues were identified as requmng further
recommendations for potential improvements to the Program:
1). Consider a change in the requirement for the length of time that a building has had a
Certificate of Occupancy (CO) in order to qualify for the Program.
2) Consider any changes that would address potential inequities between participants in the
Program and those that previously paid impact fees in full. (This was discussed because
of those buildings that paid for a high intensity use such as medical office which have
associated impact fees that are notably higher than most general uses.)
Background: 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 requirement for the 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 requirement to pay 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. The Program, as adopted, is as follows:
Agenda Item NO.1 OA
April 27, 2010
Page 2 of 15
Pro2ram:
"Impact Fee Program for Existing Commercial Redevelopment"
which provides applicants meeting the requirements below an
exemption from assessments for "intensification of the use" or
changes that "otherwise create additional demand or additional
impacts on any of the public facilities."
Elh!:ibilitv:
Commercial buildings that have had a Certificate of Occupancy for
a minimum of five (5) years. The building must have been
permitted and paid the then applicable impact fees.
Limitations:
Program is limited to changes within existing commercial
buildings, for example tenant build-outs, tenant improvements, etc.
Additions to existing buildings and demolition/replacement of
buildings will not be eligible for this Program.
Applicable
Types of Impact
Fees:
Applicable to all impact fees (excluding water-sewer) assessed for
commercial changes of use, b~ed on land use. This typically
consists of Transportation, EMS, Government Buildings, Law
Enforcement and Jail. These provisions will not apply to
assessments for Water and Sewer Impact Fees.
Len2th of Pro2ram:
Initial term of Program two (2) years from adoption date, with a
report to the Board on the usage of the Program after one year and
again prior to the sunset date. The Board could then elect to
extend the Program or allow it to sunset.
If it is the desire of the Board to expand the Program, the following are options that may be
considered.
Options to ExpandlEnhance the Current Program:
1) Continue to utilize the requirement for building 5 years old or older but allow
buildings to "age-in" to the Program. As currently written, the Program is limited to
existing buildings which had an existing CO for at least 5 years prior to the
commencement of the Program. As time passes, more and more buildings will have
certificates of occupancy in excess of 5 years but will not qualify for the Program.
This option would correct the issue.
2) Expand the Program to include buildings that have had a CO for at least 3 years.
This will allow additional buildings to qualify but will still address the issue of new
construction paying impact fees for one use and immediately flipping to a higher
intensity use. Along with this option, the Board could also establish a square footage
Agenda Item No. 10A
April 27, 2010
Page 3 of 15
threshold that could be approved administratively into the Program. Square footage
above that threshold would require a report to the Board, including the review of the
impact of the proposed business on the affected public facilities, available capacity,
needed capital facility improvements and potential deficiencies. Staff recommends
the consideration of a threshold of less than 3,000 square feet for administrative
approval. In the past year, had this requirement been in place, 7 businesses would
have required Board approval to participate in the Program. Staff from the EDC
recommended a threshold of 5,000 square feet for this option.
3) Another option that could be utilized along with Option 1 or Option 2 would provide
assistance to newer buildings in limited circumstances. Under this option the
Program would also be available to buildings and/or tenant spaces that have had a CO
for at least one year and have never been occupied. This option was provided by the
staff ofthe Economic Development Council (EDC).
Options that Provide Longer Term Solutions:
4) Eliminate impact fee review for changes of use in order to obtain a Zoning Certificate
and/or Business Tax Receipt. A large percentage of the changes of use are
determined when a business applies for a Zoning Certificate and/or Business Tax
Receipt. These businesses often are moving into existing space that does not require
any modifications and therefore have no requirements for a building permit for a
tenant improvement. Therefore, the Zoning Certificate and/or Business Tax Receipt
process is the point in time that the use is reviewed by the Impact Fee Administration.
Staff has spoken extensively with staff from other jurisdictions, as well as impact fee
consultant and legal counsel and has determined that Collier County is one of few, if
not the only jurisdiction that requires this type of review. In fact, most jurisdictions
do not require reviews for changes of use in any form. Those that have a requirement
conduct such reviews related to building permits. Additionally, feedback provided
from other jurisdictions indicates that any reviews related to changes of use are
focused on large changes to buildings such as a building changing completely from
one use to another.
This approach would eliminate many of the changes of use for small businesses that
are not making any physical changes to the building. Staff would continue to review
building permits for applicable changes of use.
Had this option been in place over the last year, 37 of the 40 participants in the
Program would not have been reviewed by the Impact Fee Administration staff.
Staff reviews an average of 4 Zoning Certificates/Business Tax Receipts a day, 4 days
a week, or an average of 768 Zoning Certificates/Business Tax Receipts per year.
Over the past year, the 37 participants in the Program, identified as owing additional
impact fees by way of review of a Zoning CertificatelBusiness Tax Receipt, represent
approximately 5% of the total reviews completed.
Agenda Item NO.1 OA
April 27, 2010
Page 4 of 15
Without the review of Zoning Certificates/Business Tax Receipts the success as well
as the fiscal impact of the Program in the second year will be based on the review of
building permits. This change may give the perception that Program activity has
declined, however, it will also provide an overall benefit to the customers that apply
for a Zoning Certificate and/or Business Tax Receipt.
5) Eliminate the "Medical Office" land use category. In discussions with Sarasota
County, staff learned that Sarasota County was experiencing difficulty with the use of
their "Medical Office" land use category, as it was significantly higher than the other
"Office" land use categories. Sarasota County elected to remove the "Medical
Office" land use category from their rate schedule and utilize the "General Office"
categories for all types of offices, therefore categorizing offices in a broader sense.
Issues with this approach include revenue loss for needed capital improvements
related to a high intensity use. This will be problematic in the future as new medical
buildings are constructed. Also, this concept may encourage the collapse of other
high intensity impact fee land uses included on the rate schedules. For example,
"High-turnover Restaurant" or "Fast Food Restaurant" may request to simply be
classified as "Retail" which is a lower intensity use.
The options above provide opportunities for changes to the existing Program or additional
incentives that could be used in combination with the existing Program. As directed by the
Board, staff is seeking the input of various members of the industry, including the EDC, the
Development Services Advisory Committee (DSAC) and leadership of the Collier Building
Industry Association (CBIA). On April 7, 2010, staff attended the monthly DSAC meeting to
discuss this Program. The following are the recommendation of the DSAC, approved by a
majority vote:
· Eliminate impact fee review for changes of use in order to obtain a Zoning Certificate
and/or Business Tax Receipt. (Option 4 -above)
· Expand the Program to include buildings that have had a CO for at least 3 years, and
allow buildings to "age-in" to the Program. (Option 2 - above with "age-in" provision)
· Direct the County Manager, or his designee, to explore additional or alternative impact
fee rates for specialty medical offices, small medical offices and/or other medical type
uses with lesser impacts than a traditional medical office.
Additionally, the DSAC unanimously recommended that the Impact Fee Ordinance be amended
to allow impact fee credits to run in perpetuity with the land until used or transferred. This issue
was included as part of the Legal Considerations for the 1st Annual Report on the "Impact Fee
Program for Existing Commercial Redevelopment," (March 23,2010 - Item lOB). This concept
could also be extended to existing Developer Contribution Agreements, some of which have
specific expiration dates to utilize the credits. Such changes to existing DCAs would come back
to the Board on a case-by-case basis as amendments to the Agreements. The County Attorney
and staff agree that this is a fair and appropriate change.
In the event that the Board desires to accept the DSAC's recommendation to explore additional
or alternative impact fee rates for various medical uses, staff recommends that the County's
Agenda Item No. 10A
April 27, 2010
Page 5 of 15
impact fee consultant utilize a similar approach as was used to develop the "Dance
Studio/Gymnastics" rate category. In order to develop that specialized rate, the impact fee
consultant collected appropriate data from actual sites in Collier County and used that
information, in combination with data and methodology from the current, adopted road impact
fee study, to determine the appropriate impact fee rate for the specialized category. The cost of
this task is estimated at $20,000.
Staff supports the above proposals and recommends that the Board accept the recommendations
of the DSAC (above) as they represent fair changes that will allow additional buildings to qualify
for the Program while still addressing the concerns of "flipping" new buildings from low
intensity uses to higher intensity uses as soon as they are constructed. Further, the DSAC
recommendations provide an option to help solve the ongoing issues with the "Medical Office"
rate without collapsing land use categories that may be required in the future. Further, staff
recommends that the Board direct the County Manager, or his designee, and the County Attorney
to prepare the appropriate amendments to the Impact Fee Ordinance to implement these changes
as well as the change related to allowing impact fee credits to run in perpetuity with the land
until used or transferred. The amended Ordinance would then be considered for adoption at a
future regular meeting of the Board of County Commissioners as an advertised public hearing.
FISCAL IMPACT: The following is the estimated fiscal impact related to the DSAC/staff
recommendations:
· Eliminate impact fee review for changes of use in order to obtain a Zoning Certificate
and/or Business Tax Receipt.
Fiscal Impact: Reported Program activity and potential revenue loss would be reduced
under this option. While it may appear that there is an overall decline in Program activity,
there is a benefit derived from this change for most customers that are applying for a
Zoning Certificate/Business Tax Receipt, as an impact fee review will no longer be
required. This option would not mitigate the demand created by changes of use;
however, in most cases the additional demand created is minimal as these are small
businesses locating within existing buildings. The staff time and burden on the customer
required in this current process far exceeds any potential revenue generated from such
reviews. As stated above, in the past year approximately 5% of the Zoning
Certificates/Business Tax Receipts reviewed required the assessment of additional impact
fees.
· Expand the Program to include buildings that have had a CO for at least 3 years, and
allow buildings to "age-in" to the Program.
Fiscal Impact: If the Board elects to implement all of the DSAC/staff recommendations,
the Program activity from the first I-year period, of $1.27 million, will be reduced by the
elimination of the impact fee review of Zoning Certificates/Business Tax Receipts.
Therefore, participation in the Program will be identified related to Building Permit
applications. In the first year, impact fees that were not assessed by way of the Program
and were related to Building Permits totaled $349,614.08. Under this option, staff will
continue to track the Program's activity, using the amended criteria, and report again to
the Board in March of 2011, in advance of the scheduled sunset date. In the event that
Agenda Item No. 10A
April 27, 2010
Page 6 of 15
there is a noticeable upturn in Program participation, staff will schedule a report to the
Board as a regular agenda item to report the increased activity.
. Direct the County Manager, or his designee, to explore additional or alternative impact
fee rates for specialty medical offices, small medical offices and/or other medical type
uses with lesser impacts than a traditional medical office.
Fiscal Impact: The direct fiscal impact of this option is the cost of conducting the
analysis to prepare the new rate(s). The cost of this study is estimated at $20,000 and
will be conducted by staff and the County's impact fee consultant. The cost of the study
will be funded by the Road Impact Fee Trust Funds. If the Board elects to move forward
with this option staff also requests that authorization be granted for the necessary budget
amendments to appropriately fund the study. Long term, once the new rate is developed,
it will provide an appropriate impact fee assessment for the purposes of funding growth
necessitated capital improvements related to specified types of small medical offices.
GROWTH MANAGEMENT IMPACT: Impact fees generate funds to be expended for
capital improvements to public facilities necessitated by growth which is consistent with Policy 2
of the Capital Improvement Element (CIE) of the Collier County Growth Management Plan
(GMP), which states: "Future development will bear a proportionate cost of facility
improvements necessitated by growth."
While many of the new and existing businesses indicated that the program was a key factor in
their decision to proceed, it should also be noted that their corresponding increase in impacts to
public facilities, especially roads, were not addressed. Long term, this could negatively impact
the County's ability to address any potential transportation infrastructure improvements
necessitated by the changes in use.
Although the Program limits the additional impact fees that will be assessed for changes of use,
despite the intensification of use and demand on public facilities, this type of program for
redevelopment 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
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
Agenda Item No. 10A
April 27, 2010
Page 7 of 15
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: This is a policy decision. The County Attorney will work
with staff to implement Board direction. -JAK
RECOMlVlENDATION: That the Board of County Commissioners accept the
recommendations of the Development Services Advisory Committee, which are supported by
staff, and provide direction to the County Manager, or his designee, and the County Attorney to
prepare the appropriate amendments to the Collier County Consolidated Impact Fee Ordinance to
implement these changes, to be considered for adoption at a future regular meeting of the Board
of County Commissioners as an advertised public hearing.
Prepared by: Amy Patterson, Impact Fee and Economic Development Manager, CDES
Item Number:
Item Summary:
Meeting Date:
Agenda Item No. 10A
April 27, 2010
Page 8 of 15
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
10A
Recommendation to review the potential changes to the Impact Fee Program for Existing
Commercial Redevelopment, prepared in accordance with direction provided by the Board of
County Commissioners on March 23, 2010, and provide direction to the County Manager, or
his designee and the County Attorney as to any such changes that will be incorporated into
the Program, by way of changes to the Consolidated Impact Fee Ordinance, to be
considered for adoption at a future regular meeting of the Board of County Commissioners as
an advertised public hearing. (Amy Patterson, Manager, Impact Fees & EDC, COES)
4/27/20109:00:00 AM
Prepared By
Amy Patterson
Community Development &
Environmental Services
Manager - Impact Fees & EDC
Date
Business Management & Budget Office
4/1/20104:03:50 PM
Approved By
Judy Puig
Community Development &
Environmental Services
Operations Analyst
Community Development &
Environmental Services
Date
4/1/20104:18 PM
Approved By
Nick Casalanguida
Transportation Division
Director - Transportation Planning
Date
Transportation Planning
4/1/20105:14 PM
Approved By
OMB Coordinator
County Manager's Office
Date
Office of Management & Budget
4/2/20109:20 AM
Approved By
Jeff Klatzkow
County Attorney
Date
Approved By
4/2/20103:14 PM
Susan Usher
Office of Management &
Budget
Management/Budget Analyst, Senior
Date
Office of Management & Budget
4/3/20104:04 PM
Approved By
Leo E. Ochs, Jr.
County Managers Office
County Manager
Date
County Managers Office
4/19/2010 12:02 PM
Agenda Item NO.1 OA
April 27, 2010
Page 9 of 15
EXECUTIVE SUMMARY
Recommendation to accept the first annual report on the "Impact Fee Program for
Existing Commercial Redevelopment" and to consider two proposed changes to the
Consolidated Impact Fee Ordinance which would (1) extend to Redevelopment
Program for all buildings which are five years and older on a continuing basis, and
(2) eliminate the expiration date of impact fee credits so that they run with the land
until used or transferred.
OBJECTIVE: That the Board of County Commissioners (Board) accepts the first annual
report on the "Impact Fee Program for Existing Commercial Redevelopment."
CONSIDERATIONS: On December 3,2008, during the regular meeting of the Board
of County Commissioners, the Board directed staff to develop an option, for
consideration by the Board, for a change in the current requirements for the assessment of
impact fees for changes of use within existing buildings. The current regulations are set
forth in Section 74-201 (c) of the Collier County Code of Laws and Ordinances (Code),
which is the Collier County Consolidated Impact Fee Ordinance, which states:
(c) Change of size or use. Impact fees shall be imposed and calculated for net
increase, alteration, expansion, or replacement of a use or a building, or
part of a building (including dwelling unit), and each accessory or non-
accessory building, provided such net increase, alteration, expansion or
replacement of the use, building, or part thereof or therein, by applying
this chapter results in : (1) a net increase in the number of dwelling units;
(2) a net increase in the size or square footage of a building; (3) a net
increase in the size of the use; or (4) intensification of the use as to
constitute an expansion of the same use category or result in a change to a
higher impact fee land use category; or (5) otherwise create additional
demand or additional impacts on any of the public facilities.
Staff reviews and assesses impact fees for changes of use via the review of all
applications for Zoning CertificateslBusiness Tax Receipts and Development Orders
(Building Permits, Site Plans, Site Plan Amendments, etc.) In order to assess impact fees
for a change of use, first the lawfully existing land use must be determined. Staff
researches information provided by applicant, site plans, building permits, Property
Appraiser's records, etc., in order to make this determination. The impact fees are then
calculated for the existing use based on current rates.
The impact fees are then calculated for the proposed new use. If the development
contemplates a land use that is of a higher intensity use and therefore creates additional
impacts on public facilities, impact fees are required to be assessed for the net increase in
demand. Therefore, the impact fees are assessed by applying the impact fees that are
calculated for the existing use against the impact fees that are calculated for the new use.
Agenda Item No. 10A
April 27, 2010
Page 10 of 15
Based on the direction of the Board, staff and the County Attorney developed the
following Program for the Board's consideration. The scope of the Program is limited to
commercial uses and the requirements for assessment for "intensification of the use" or
changes that "otherwise create additional demand or additional impacts on any of the
public facilities. "
PrOl!ram:
"Impact Fee Program for Existing Commercial
Redevelopment" which provides applicants meeting the
requirements below an exemption from assessments for
"intensification of the use" or changes that "otherwise
create additional demand or additional impacts on any of
the public facilities. "
Elil!ibilitv:
Commercial buildings that have had a Certificate of
Occupancy for a minimum of five (5) years. The building
must have been permitted and paid the then applicable
impact fees.
Limitations:
Program is limited to changes within existing commercial
buildings, for example tenant build-outs, tenant
improvements, etc. Additions to existing buildings and
demolition/replacement of buildings will not be eligible for
this Program.
Applicable
Types of Impact
Fees:
Applicable to all impact fees (excluding water-sewer)
assessed for commercial changes of use, based on land use.
This typically consists of Transportation, EMS,
Government Buildings, Law Enforcement and Jail. These
provisions will not apply to assessments for Water and
Sewer Impact Fees.
Lenl!th of Prol!ram:
Initial term of Program two (2) years from adoption date,
with a report to the Board on the usage of the Program after
one year and again prior to the sunset date. The Board
could then elect to extend the Program or allow it to sunset.
On February 24,2009, during the discussion of item lOA, the Board directed the County
Manager, or his designee, and the County Attorney to implement the Program as detailed
above. In addition the Board directed that a status report be presented to the Board in one
Agenda Item NO.1 OA
April 27, 2010
Page 11 of 15
year, including detailed information on the participation in the Program and the fiscal
impact on each of the affected impact fee trust funds.
On March 24, 2009, the Board adopted Ordinance No. 2009-14 establishing the above
Program which became effective March 30, 2009, upon filing with the Florida Secretary
of State.
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 and were unaware of the
potential impact fee assessments related to changes of use. However, the applicants also
stated that they would be unable to move forward with the proposed business, at the
specified location, if the "Impact Fee Program for Existing Commercial Redevelopment"
was not available.
Of the 20 applicants that were existing businesses relocating to new space, none of the
applicants indicated that they were receiving a lower rent or lease rate due to the
Program. In fact, the majority of applicants in this category were also unaware of the
potential impact fee assessments related to changes of use and also stated that they would
be unable to move forward with the proposed business relocation if the Program was not
available.
Staff has fielded numerous inquiries during this one-year period related to newer
buildings participating in the Program. As stated above, the Program is limited to
commercial buildings that have had a Certificate of Occupancy for a minimum of five (5)
years. The building must have been permitted and paid the then applicable impact fees.
Included with this Executive Summary is a protest letter provided by the owner of a
newer building that did not meet the age requirements of the Program. The property
owner elected to pay impact fees related to a change of use for a tenant "under protest"
pending the Board's review of the Program. As indicated in the attached correspondence,
the property owner believes that the Program should also apply to newer construction.
The following chart provides a list of the types, and amounts by type, of changes of use
that are participating in this Program. 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 pmposes.
Change of Use Number of Applicants in Program
Church to General Office 1
General Light Industrial to Auto Sales 1
General Light Industrial to Church 1
General Light Industrial to Gymnastics 3
Agenda Item No. 10A
April 27, 2010
Page 120f15
Change of Use (cont'd) Number of Applicants in Program
General Light Industrial to General Office 17
General Light Industrial to Retail 7
General Light Industrial to Tire Store 1
General Office to Medical Office 8
General Office to Day Care 1
The Program was initially established for a two-year period, with a report to the Board
after one year and again prior to the sunset. At that time, the Board could then elect to
extend the program or allow it to sunset. If the Board accepts this first annual report,
staff will continue to track the qualifying participants in the program and report back to
the Board in March of 20 11, which is prior to the sunset date for the Program.
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.
Impact Fee Type Amount
Correctional Facilities (Jail) $26,174.52
Emergency Medical Services $11,398.70
Government Buildings $59,786.64
Law Enforcement $21,065.73
Road $1,147,851.95
Cumulative Total $1,266,277 .54
As stated in the Considerations Section (above), staff spoke directly with many of the
customers that qualified for the Program. The 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. Another 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, and 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
Agenda Item No. 10A
April 27, 2010
Page 13 of 15
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: Impact Fees generate funds to be expended
for capital improvements to public facilities necessitated by growth which is consistent
with Policy 2 of the Capital Improvement Element (CIE) of the Collier County Growth
Management Plan (GMP), which states: "Future development will bear a proportionate
cost of facility improvements necessitated by growth. "
While many of the new and existing business noted that the program was a key factor in
their decision to proceed, it should also be noted that their corresponding increase in
impacts to public facilities, especially roads, were not addressed. Long term, this could
negatively impact the County's ability to address any potential transportation
infrastructure improvements necessitated by the changes in use.
Although the Program limits the additional impact fees that will be assessed for changes
of use, despite the intensification of use and demand on public facilities, this type of
program for redevelopment 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 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 CONSIDERA TIONS: In light of continuing issues caused by this
unprecedented economic slowdown, there are two proposed changes to the Consolidated
Impact Fee Ordinance that Ms. Patterson and I have been discussing for some time.
1. The first change we would like to propose is to the Redevelopment Program. As
currently written, the Program is limited to existing buildings which had an existing
certificate of occupancy for at least 5 years prior to the commencement of the Program.
Agenda Item No. 10A
April 27, 2010
Page 14 of 15
As time passes, more and more buildings will have certificates of occupancy in excess of
5 years but which will not qualify for the Program. Given the Program's success, it is
recommended that the Board extend this to all buildings with a certificates of occupancy
in excess of 5 years. The change to the Ordinance would read as follows:
"Development is proposed within a lawfully existing building which has had a
Certificate of Occupancy issued for at least 5 years. prior to the eommencemeFlt of this
program.
2. The second change we would like to propose is to amend the Consolidated Impact
Fee Ordinance to eliminate the sunsetting of impact fee credits. Section 73-203(f) of the
Consolidated Ordinance provides in relevant part as follows:
"The impact fee collected pursuant to this chapter (including all predecessor ordinances
that are hereby being consolidated into this chapter) shall be returned to the then current
owner of the property for which such fee was paid if which fees have not been expended
or encumbered prior to the end of the fiscal year immediately following the sixth
anniversary of the date when the respective impact fee was paid. Refunds shall be made
only in accordance with the following procedure:
(1) The then current owner shall petition the board for the refund prior to the end of
the fiscal year immediately following the sixth anniversary of the date of the
payment of the respective impact fee."
The ordinance goes on to set forth the requirements of the petition, which we believe
need to be maintained to properly administer the request. The problem of course is that
if you do not petition the Board for a refund by the end of the sixth year, any right to a
refund expires, effectively creating a sunset provision on impact fee credits.
Impact fee credits are typically given by the County in lieu of cash payment for land or
construction projects which benefit the County. Given the economic slowdown, many
Developers who obtained Impact Fee Credits are presently unable to use them. We
believe that as a matter of fairness they should not lose the benefit of their bargain
through the expiration of these credits. The proposed change to the Ordinance would
read as follows:
"The impact fee collected pursuant to this chapter (including all predecessor ordinances
that are hereby being consolidated into this chapter) shall be returned to the then current
owner of the property for which such fee was paid if which fees have not been expended
or encumbered prior to the end of the fiscal year at any time immediately following the
sixth anniversary of the date when the respective impact fee was paid. Refunds shall be
made only in accordance with the following procedure:
(I) The then current owner shall petition the board for the refund. prior to the end of
the fiscal year immediately following the sixth anniversary of the date of the
payment of the respeetive impaet fce."
If approved, this change would effectively result in impact fee credits running in
perpetuity with the land until used or transferred. This concept could also be extended to
existing Developer Contribution Agreements, some of which have specific expiration
Agenda Item No.1 OA
April 27, 2010
Page 15 of 15
dates to utilize the credits. Such changes to existing DCAs would come back to the
Board on a case-by-case basis as amendments to the Agreements. - JAK.
RECOMMENDATION: That the Board of County Commissioners accepts the first
annual report on the "Impact Fee Program for Existing Commercial Redevelopment" and
the proposed changes to the Consolidated Impact Fee Ordinance.
Prepared by: Amy Patterson, Impact Fee and Economic Development Manager, CDES,
and Jeffrey A. Klatzkow, County Attorney