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Agenda 05/25/2010 Item #17D Agenda Item No. 17D May 25, 2010 Page 1 of 18 EXECUTIVE SUMMARY Recommendation to adopt an Ordinance amending the Collier County Consolidated Impact Fee Ordinance, which is Chapter 74 ofthe Collier County Code of Laws and Ordinances, by incorporating directed changes to the "Impact Fee Program for Existing Commercial Redevelopment" and providing amended provisions to allow impact fee credits to run with the land in perpetuity until used or transferred. OBJECTIVE: That the Board of County Commissioners (Board) adopt an Ordinance amending the Collier County Consolidated Impact Fee Ordinance, which is Chapter 74 of the Collier County Code of Laws and Ordinances (Code), by incorporating directed changes to the "Impact Fee Program for Existing Commercial Redevelopment" and providing amended provisions to allow impact fee credits to run with the land in perpetuity until used or transferred, CONSIDERATIONS: On March 23,2010, the Board reviewed the 1st 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. The development of this Program arose from two basic problems: ]) 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. During the discussion (Item lOB) the following issues were identified as requiring further recommendations for potential improvements to the Prq,>ram: 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.) As directed by the Board, staff sought the input of various members of the industry, including the Economic Development Council of Collier County, the Collier County Agenda Item No. 17D May 25,2010 Page 2 of 18 Productivity Committee, the Development Services Advisory Committee (DSAC) and leadership of the Collier Building Industry Association (CBIA) on potential improvements to the Program. On April 27, 2010, staff presented the input of the various groups above, along with additional options for potential Program improvements, for consideration by the Board (Item lOA), The Board directed that the following changes, which are supported by the DSAC, Productivity Committee and staff, be implemented: . Eliminate impact fee review for changes of use in order to obtain a Zoning Certificate and/or Business Tax Receipt. . Expand ihe Prol,'tam to include buildings that have had a CO for at least 3 years, and allow buildings to "age-in" to the Program, . 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. . Amend the Impact Fee Ordinance to allow impact fee credits to run in perpetuity with the land until used or transferred. Therefore, the County Attorney and staff have prepared the proposed Ordinance to provide for the change in the required age of the building, for participation in the Program, from 5 years to 3 years and allowing building to "age-in" to the Program. Additionally, the proposed Ordinance provides for impact fees credits to run with the land until used or transferred. Finally, the proposed Ordinance corrects an error related to the timing of certain refund requests, specifically, when the then current owner may petition the Board for a refund. The time to file the petition for a refund run was corrected from 6 to 10 years, as the time for the County to utilize the impact fees was 6 years, thus giving the payer the standard 4 year limitations period to request the refund, Additionally, in accordance with Board direction, staff is no longer conducting an impact fee review for changes of use in order to obtain a Zoning Certificate and/or Business Tax Receipt. Staff has also commenced work with the County's impact fee consultant to explore 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, for future review and consideration by the Board. FISCAL IMPACT: As detailed in the Executive Swnmary presented on April 27, 2010 (attached), the following are the estimated fiscal impacts related to the proposed changes: . Elimination of the impact fee review for changes of use in order to obtain a Zoning Certificate and/or Business Tax Receipt. Agenda Item No. 170 May 25, 2010 Page 3 of 18 Fiscal Impact: Reported Program activity and potential revenue loss may be reduced with this change. 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 change 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, 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: With this change, 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. Staff will continue to track the Program's activity, using the amended criteria, and report again to the Board in March of2011, in advance of the scheduled sunset date. In the event that 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 task 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. Long tenn, 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: "Fulure development will bear a proportionate cost of facility improvements necessitated by growth." Agenda Item No. 17D May 25, 2010 Page 4 of 18 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 also 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. .. LEGAL CONSIDERATIONS: The County Attorney worked with staff in the drafting of this Ordinance, which is legally sufficient for Board action, -JAK RECOMMENDATION: That the Board of County Commissioners adopt an Ordinance amending the Collier County Consolidated Impact Fee Ordinance, which is Chapter 74 of the Collier County Code of Laws and Ordinances, by incorporating directed changes to the "Impact Fee Program for Existing Commercial Redevelopment" and providing amended provisions to allow impact fee credits to run in perpetuity with the land until used or transferred. Prepared by: Amy Patterson, Impact Fee and Economic Development Manager Growth Management Division Attachments: 1) Proposed Ordinance Amendment 2) Executive Summary, Item lOA, April 27, 2010 Item Number: Item Summary: Meeting Date: Agenda Item No. 17D May 25, 2010 Page 5 of 18 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS 170 Recommendation to adopt an Ordinance amending the Collier County Consolidated impact Fee Ordinance, which is Chapter 74 of the Collier County Code of Laws and Ordinances, by incorporating directed changes to the impact Fee Program for Existing Commerciai Redevelopment and providing amended provisions to allow impact fee credits to run with the land in perpetuity until used or transferred 5/25/20109:00:00 AM Date Prepared By Amy Patterson Community Development & Environmental Services Manager - Impact Fees & EDC Business Management & Budget Office 5/12/20109:29:44 AM Approved By Date Judy Pui9 Community Development & Environmental Services Operations Analyst Community Development & Environmental Services 5/12/20109:57 AM Approved By Date Nick Casalanguida Transportation Division Director ~ Transportation Planning Transportation Planning 5/12/201012:41 PM Date Approved By OMS Coordinator County Manager's Office Office of Management & Budget 5/12/20102:04 PM Date Approved By Jeff Klatzkow County Attorney 5/13/20104:19 PM Approved By Date Susan Usher Office of Management & Budget ManagemenUBudget Analyst, Senior Office of Management & Budget 5/17/20109:33 AM Date Approved By Leo E. Ochs, Jr. County Managers Office County Manager County Managers Office 5/17/20106:31 PM Agenda Item No. 17D May 25. 2010 Page 6 of 18 ORDINANCE NO. 2010-_ AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AMENDING CHAPTER 74 OF THE COLLIER COUNTY CODE OF LAWS AND ORDINANCES, THAT ORDINANCE BEING THE COLLIER COUNTY CONSOLIDATED IMPACT FEE ORDINANCE, NO. 2001-13, AS AMENDED, PROVIDING FOR CHANGES TO THE "IMPACT FEE PROGRAM FOR EXISTING COMMERCIAL REDEVELOPMENT"; INCORPORATING CHANGES TO ALLOW IMP ACT FEE CREDITS TO RUN WITH THE LAND UNTIL USED OR TRANSFERRED; PROVIDING FOR CONFLICT AND SEVERABILITY; PROVIDING FOR INCLUSION IN THE COLLIER COUNTY CODE OF LAWS AND ORDINANCES; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, Collier County has used impact fees as a funding source for growth-related capital improvements for various facilities since 1978; and WHEREAS, on March 13, 2001, the Board of County Commissioners adopted Ordinance No. 2001-13, the Collier County Consolidated Impact Fee Ordinance, repealing and superseding all of the County's then existing impact fee regulations, and consolidating all of the County's impact fee regulations into that one Ordinance, codified in Chapter 74 of the Collier County Code of Laws and Ordinances (the "Code"); and WHEREAS, on March 24, 2009, the Board of County Commissioners adopted Ordinance No, 2009-14 which established the "Impact Fee Program for Existing Commercial Redevelopment," through which development is not required to pay additional impact fees related to changes of use within an existing building, provided it meets the specified criteria; and WHEREAS, on April 27, 20 10, the Board of County Commissioners directed that changes be incorporated that represent potential improvements to the Program; and WHEREAS, the Board of County Commissioners also directed that the Consolidated Impact Fee Ordinance be amended to allow impact fee credits to run with the land until used or transferred. Page lof5 Underlined text is added; Strusle tllreligll text is deleted Agenda Item No. 17D May 25,2010 Page 7 of 18 NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: SECTION ONE. Article II, Impact Fees, Section 74-201, Imposition of impact fees, subsection (c) of the Collier County Code of Laws and Ordinances is hereby amended to read as follows: Section 74-201. Imposition of impact fees. *** (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 nUlllber 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 so 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. The impact fee imposed under the applicable impact fee rate shall be calculated as follows: *** (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 ~ J years prier te the eell1ffiCReemem of tkis pmgram. 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. *** Page 2 of5 Undertined text is added; StRiok tliFo>lgh text is deleted Agenda Item No. 170 May 25,2010 Page 8 of 18 SECTION TWO. Article 11, Impact Fees, Section 74-203, Use offunds, subsection (f) of the Collier County Code of Laws and Ordinances is hereby amended to read as follows: Section 74-203. Use offunds. *** (f) 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 silHft tenth anniversary of the date of the payment of the respective impact fee, (2) The petition for refund shall be submitted to the county manager, and shall contain: a. A notarized sworn statement that the petitioner is the then current owner of the property for which the impact fee was paid; b, A copy of the dated receipt issued for payment of such fee or such other record as would clearly indicate payment of such fee; c. A certified copy of the latest recorded deed; and d. A copy of the most recent ad valorem tax bill. (3) Within 90 days from the date of receipt of a complete petition for refund, the county manager will advise the owner of the status of the impact fee requested for refund, and if such impact fee has not been expended or encUlllbered within its applicable time period, then it shall be returned to the then current owner, For the purposes of this section, fees collected shall be deemed to be spent or encUlllbered on the basis of the first fee in shall be the first fee out. Such funds may be encumbered by contract, bond, resolution, ordinance, or otherwise. (4) Impact fee mpnies refunded by the board in accordance with this subsection (e D shall be paid with interest accrued to the principal being refunded but not to exceed the rate of five percent simple interest. Except as provided for in this subsection (e D, no interest shall be paid upon the return or refund of impact fees, *** Page3 of 5 Underlined text is added; 8lrUoI, through text is deieted Agenda Item No. 170 May 25. 2010 Page 9 of 18 SECTION THREE. Article II, Impact Fees, Section 74-205, Developer contribution credit, subsection (f) of the Collier County Code of Laws and Ordinances is hereby amended to read as follows: Section 74-205. Developer contribution credit. ... (f) Upon approval of a plan for the dedication or contribution, a developer contribution agreement shall be entered into berween the county and the owner. A nonrefundable processing, review and audit fee of $2,500.00 shall be due once the voluntary plan has been approved and prior to the preparation of a contribution agreement by the county attorney. The processing, review and audit fee shall be returned to the applicant if either the county manager, the authorized division or department administrator, or the board determines the proposed plan is not acceptable, The processing, review and audit fee shall become non-refundable when the board authorizes the county attorney to prepare a contribution agreement. The contribution agreement shall, at a minimum, provide for and include, but not be limited to: ... (4) The ffilratiaR eftae agreemellt, whieh shall Ret be fer a parieE! iR e)(eess eHive ye!H'S fram the date the sellnt)' aekHewledges saHljlletieR ef the EIflproyed eafttriemiaR ar fram the actual date ef dedieatiaR, eut iR Re e\'ellt shaH the E!uratiaR el,eeed SeyeR ye!H's, el[ellisiye af llR)' ea!ltrellie.g marateria, from the eate af reearE!iRg in the afficial reeards Impact fee credits shall run with the land in peroetuitv. interest free. until used or assigned. ... SECTION FOUR. CONFLICT AND SEVERABILITY. In the event this Ordinance conflicts with any other Ordinance of Collier County or other applicable law, the more restrictive shaH apply. If any phrase or portion of this Ordinance is held invalid or unconstitutional by any court of competent jurisdiction, such portion shaH be deemed a separate, distinct, and independent provision and such holding shaH not affect the validity of the remaining portions. SECTION FIVE. INCLUSION IN THE CODE OF LAWS AND ORDINANCES. The provisions of this Ordinance shall be made a part of the Code of Laws and Ordinances ofCoHier County, Florida, The sections of the Ordinance may be renumbered or re- Page 4 of5 Underlined text is added; SlnIeic througll text is deleted Agenda Item No. 170 May 25,2010 Page 10 of 18 lettered and internal cross-references amended throughout to accomplish such, and the word "ordinance" may be changed to "section," "article," or any other appropriate word. SECTION SIX. EFFECTIVE DATE. This Ordinance shall become effective upon filing with the Secretary of State, PASSED AND DULY ADOPTED by the Board of County Commissioners of Collier County, Florida this _ day of ,2010, ATTEST Dwight E, Brock, Clerk BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA By: By: FRED W. COYLE, CHAIRMAN , Deputy Clerk Page 5 of 5 Underlined text is added; 8lruek thr.~gh text is deleted Agenda Item No. 17D May 25, 2010 Page 11 of 18 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 1st 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 SUlllmary. During the discussion (Item lOB) the following issues were identified as requiring 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 quality 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: Proe:ram: Elie:ibilitv: Limitations: Applicable Tvpes of Impact Fees: Lene:th of Proe:ram: Agenda Item No. 17D May 25, 2010 Page 12 of 18 "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. " Commercial buildings that have had a Certificate of Occupancy for a minimUlll of five (5) years, The building must have been permitted and paid the then applicable impact fees. 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 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, 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 Expand/Enhance 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 Prof,'I'am, 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. 170 May 25,2010 Page 13 of 18 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 of the 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 Certificate/Business Tax Receipt, represent approximately 5% of the total reviews completed. Agenda Item No. 170 May 25, 2010 Page 14 of 18 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, stafflearned 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 eXlstmg 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 1 st 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 A,,'feements. The County Attorney and staff agree that this is a fair and appropriate change. In the event that the Board desires to accept the DSACs rccommendation to explore additional or alternative impact fee rates for various medical uses, staff recommends that the County's Agenda Item No. 170 May 25,2010 Page 15 of 18 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 Pro6'fam 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. 170 May 25. 2010 Page 16 of 18 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 ofthe 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. 170 May 25, 2010 Page 17 of 18 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 RECOMMENDATION: 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 bv: Amy Patterson, Impact Fee and Economic Development Manager, CDES 16D · Friday, May 14, 2010 . Naples DaDy News (']:1'] 1Ir"1 [~:tII;J ~ j i j [']1~1I (']:1 ']IIr'm~:tII;J ~j iH.m. NOTICE OF INTENT TO CONSIDER ORDINANCE Notice is hereby given that on Tuesday, May 25, 2010, in the Boardroom, 3rd Floor, Administration Building, Collier County Government Center, 3301 East Ta- miami Trail, Naples. Florida, the Board of County Commissioners will consider the enactment of a County Ordinance. The meeting will commenc.e at 9:00 A.M. The title of the propo~ed Ordinance is a~ follows:: AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF COLUER COUN. TY, FLORIDA, AMENDING GHAPTER 74 OF TH~ COLLIER COUNTY CODE OF LAWS AND ORDINANCES, THAT ORDINANCE BEING THE COLLIER COUNTY CONSOLi- DATED IMPACT FEE ORDINANCE, NO. 2001.13, AS AMENDED. PROVIDING FOR CHANGES TO THE "IMPACT FEE PROGRAM FOR EXISTING COMMERCIAL REDEVEl- OPMENT"; INCORPORATING CHANGES TO AllOW IMPACT FEE CREDITS TO RUN WITH THE LAND UNTil USED OR TRANSFERRED; PROVIDING FOR CONFLICT AND SEVERABILITY; PROVIDING FOR INCLUSION IN THE COLLIER COUNTY CODE OF LAWS AND ORDINANCES; AND PROVI01NG FOR AN EFFECTIVE DATE. Copies of the proposed Ordinance are on file with the Clerk to the Board and are available fo~ inspection. All interested parties are invited to attend and be heard. ~~J;~ :J~rn~~~~:orWis~~rg t~O ~fe~:~t~t70~n~f arh;d:g~~d~ ~~~ ~~g~~eratkl~~~~~ Individual speakers wilf be limited to 5 minutes on any item. The selection of an in- dividual to speak on behalf of an organization or group is encouraged. If recog- nized by the Chairman, a spokesperson for a group or organization may be allotted 10 minutes to speak on an item. Persons wishing to have written or graphic materials included in the Board agenda ~~~1~ts h:~~g~Ub~ita~~idca~~t~~~~:n m~~~~~~s ~~t~nd:j~o Pbi:r (~~sfS:re'3sg;a;~: Board shall be submitted to the appropriate County staff a minimum of seven da~ C~i~~~~ :~~fmu~~~n~~a;;r~ft~'r~~~~ra' used in presentations before the. Board Will Any person who decides to appeal a decision of the Board will need a record of the f:~~~d~fg~h~e~~~~~~i~~~rrsto m~d~,t~hf:~r~~c~rd i~~iu~~ t~~u::n~~a~n: ~~r~~~ dence upon which the appeal is based. If you are a pe~son with a disability who needs any accommodation in order to participate in this proceeding; you are entitled, at no cost to you, to the provision of certain assistance. Please contact the Collier County FacilitIes Management De. partment. located at 3301 Tamiamj Trail East, Building W, Naples, Florida 34112, (239) 252.8380. Assisted listening devices for the hearing impaired are available in the County Commissioners' Office. BOARD OF COUNTY COMMISSIONERS COLliER COUNTY. FLORIDA FRED COYLE, CHAIRMAN DWIGHT E. SROCK, CLERK By; Teresa Polask.i, Deputy Clerk (SEAL) Mav 14 :;>010 " No1R1:i3'07 Agenda Item No. 170 May 25, 2010 Page 18 of 18