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BCC Minutes 03/29/2006 W (w/Airport Authority & EDC) March 29,2006 TRANSCRIPT OF THE BOARD OF COUNTY COMMISSIONERS WORKSHOP WITH THE AIRPORT AUTHORITY AND ECONOMIC DEVELOPMENT COUNCIL Naples, Florida, March 29, 2006 LET IT BE REMEMBERED, that the Collier County Board of County Commissioners, in and for the County of Collier, having conducted business herein, met on this date at 2:00 PM in a WORKSHOP SESSION in building "F" of the Government Complex, East Naples, Florida with the following members present: CHAIRMAN: Commissioner Frank Halas Commissioner Jim Coletta Commissioner Fred Coyle Commissioner Tom Henning (Absent) Commissioner Donna Fiala (Absent) ALSO PRESENT: J ames Mudd, County Manager AIRPORT AUTHORITY: Robin Doyle, Chairman Jim Peterka, Vice Chairman Byron Meade, Secretary Stephen Price, Board Member Gene Schmidt, Board Member Richard Schmidt, Board Member Theresa Cook, Executive Director Bob Tweedie, Airport Manager ECONOMIC DEVEL. COUNCIL Tammie Nemecek, President Joan McGinness, Diversification Mgr. Brian Goguen, Board Member Bill O'Neill, Chairman Immokalee Task Force Bob Mulhere, Land Use Task Force Russ Weyer, Fishkind & Associates Jeff Horst, KS&R George Kuhn, KS&R Page 1 ~ 9mtl1.ty - - - 'ii:, tv.. Collier County Board of Commissioners Collier County Airport Authority Economic Development Council of Collier County WORKSHOP MARCH 29, 2006 2:00 p.m. - 5:00 p.m. Collier County Airport Authority I. Chairman's Comments II. Organization III. Financial Overview a. 2007 Budget b. Everglades Airpark c. Marco Island Executive Airport d. Immokalee Regional Airport IV. Capital Improvement Projects a. Everglades Airpark b. Marco Island Executive Airport c. lmmokalee Regional Airport Economic Development Council of Collier County v . Welcome VI. Opening Remarks VII. Land Use Analysis VIII. Florida Tradeport Business Requirements IX. Closing Remarks - BCC/CCAA/EDC ECONOMIC DEVELOPMENT COUNCIL - of CoWer County floridol Growing Creat Ideas March 29, 2006 I. Call to Order The meeting was called to order at 2:00 PM with the Pledge of Allegiance by Chairman Frank Halas. II. Robin Doyle, Chairman of the Airport Authority, introduced their portion of the workshop: · From the time oftheir first workshop with the BCC, the Airport Authority's management has worked very hard to follow the BCC's charge to get its house in order. · The Airport Authority is moving forward aggressively to assure the safety and usability of the three airports, and to capitalize on the economic contributions that are available from the airports. · There are some challenges being faced, and the BCC's input and assistance is needed. · This workshop is being done with the Economic Development Council because they are the Airport Authority's marketing arm for the industrial park part of Tradeport in Immokalee. · The Airport Authority has been able to reduce its reliance on the County over the last three years in spite of growing non-discretionary costs. This year a little more support from the County is being requested, but the increase is less than half of the Authority's increase in non-discretionary expenses. · The Airport Authority had great success this year. There was $100,000 more in leasing revenues from the Immokalee Airport, but hurricane Wilma took away $17,000 in revenues from the Everglades Airport because of the destruction of hangers. Commissioner Halas asked if the hurricane costs can be recouped from FEMA. Mr. Doyle indicated that ultimately insurance funds and FEMA should cover these costs, but it takes a couple of years to collect. III. Theresa Cook, Executive Director of the Airport Authority, introduced the Authority's Executive Board Members, and discussed its proposed 2007 budget. · The Operating Budget (Cost of Operations) is in line with the past two years: o FY 04/05 Actual: $676,538 o FY 05106 Budget: $650,898 o FY 06/07 Budget: $713,500 · Significant Budget Changes: o $85,700 Increase in Personnel Services o $10,000 Request for Signage in Immokalee o $36,700 Increase in Insurance Premiums o $30,900 Increase in Indirect Costs for Services provided by Collier County o ($100,000) Increased Revenue in Immokalee from Sod Harvesting · There was hurricane damage to T-Hangers at all three airports. Marco and Immokalee are back on line to where revenues from leases are coming back Page 2 March 29, 2006 in. Everglade T -Hangers were destroyed and need to be rebuilt. It will take approximately two years to rebuild with money from FEMA to upgrade hanger doors so they don't blow off again. · Capital Improvement Projects over the next five years: o Everglades Airpark: · Has $42,000 in federal funds (FAA and DOT) approved in the current budget to mitigate for the construction of the South Taxiway. · Has $183,158 already programmed and funded through the BCC, FAA and FDOT for South Taxiway Construction. · The Project Plan shows $500,000 to rehabilitate and widen the runway to meet DOT design standards, and $421,052 to perform an environmental assessment as required when widening a runway. These items are not yet funded and will float from year to year until DOT decides to fund them. Commissioner Halas asked if there were noise issues with development taking place close to Everglades Airpark. Mr. Doyle noted that this Airport does not have larger aircraft that generate more noise, so noise is not the issue that larger airports have. Mr. Mudd noted that advertisements for the new development talk about it being in proximity to the airport where some amount of aircraft noise is to be expected. Mr. Doyle indicated that he expects there to be additional demand for hangers, but there is a lack of available land for them. Commissioner Coyle asked if an arrangement might be made with the new development to provide some land for hangers - this would enhance their ability to sell their product if hangers were available to their residents. He also suggested working with the City Council in Everglades to get them to require the development to have a disclosure about the airport. Homeowners would acknowledge on their sales contract or the deed itselfthat their home is near an airport. Mr. Doyle observed that the Airport Authority owns the road leading to the new development, giving the Airport Authority some leverage. o Marco Island Executive Airport: · To allow Marco Island Executive Airport Capital Projects to move forward, the Airport Authority has been working for the past nine years on getting a permit from the Corps of Army Engineers past Fish and Wildlife, and it is expected within the next sixty days. · $315,789 is budgeted for the current year to mitigate for a new Taxiway, and $315,789 is also budgeted to design the new Taxiway. Page 3 March 29, 2006 FDOC programs money this way, although different amounts will be spent for mitigation and Taxiway design. · The Authority expects to build the Taxiway in FY 07/08 and FY 08/09. This has not been funded, but the FDOC has given assurances that this funding will be available. · $185,000 is budgeted for Land Acquisition in FY 06/07. It is hoped that the County, the City of Marco Island and County utilities can complete a land trade, and necessary land can be purchased from the County utilities. The land acquisition is eligible for federal funding. Mr. Mudd observed that a land transfer is being worked on with the City of Marco, giving Marco a recycling center on Elkum Center owned by Collier County (1.8 acres), and giving Collier County .8 acres near the recycling center and one acre by the Airport. · Marco Island Executive Airport plans by year: o Year 1: Land Transfer o Year 2: Vehicle Parking Relocated o Year 2: Extend ramp to current vehicle parking o Years 2-3: Taxiway Construction o Year 4: Terminal Building Design o Year 5: Terminal Building Relocation · Marco Island Executive Airport has a ten year old 3,000 gallon Jet Refueler. o It's becoming hard to find parts and to repair the Jet Refueler, and revenue is lost when it is in for repairs. o Arrangements are being discussed with the fuel supplier (Chevron) to lease a truck to the Airport Authority. Lease payments would be made by paying a few cents more for each gallon of fuel, and as much of this as possible would be passed on to customers in an increased fuel flowage fee. o A new Tug is also needed for the newer aircraft using Marco Island. This is included in the lease discussions with the fuel supplier. Commissioner Halas asked if the County has any surplus vehicles that could be used for Marco Island Executive Airport's needs. Mr. Mudd indicated that he would take a look to determine if any suitable vehicles are available. o Immokalee Regional Airport: · Work is being done with Fish and Wildlife and South Florida Water Management to get permits to build at Immokalee Airport. Probably $400,000 has been spent to date in the environmental resource permit process. Fish and Wildlife requires Panther mitigation which will Page 4 March 29, 2006 cost $350,000. Funding for this has already been approved by the BCC, the FAA and OTED. Commissioner Halas asked how long the permit is good for once the mitigation is completed. Mr. Doyle indicated that it is a rolling permit that renews automatically, and it is not expected to expire. However, the permit is for Phase 1 of three Phases. Each phase will require a mitigation process, but some things already done for Phase 1 mitigation will operate to the Airport Authority's credit in the other Phases. Phase 1 is 165 acres, including a proposed lake and a proposed taxiway. Phase 2 is a control tower and expansion of the runways, and possibly all remaining work can be done in Phase 2 without requiring a Phase 3. Mr. Mudd noted that the total cost of planned investments is $22 million, 90% of which will be covered by the FAA, and the remaining 10% by Collier County. · The Airport Authority is starting to talk about building a control tower at Immokalee Airport. The estimated cost is $2.5 million, and annual operating costs would be $257,000. The estimated time for construction is three years. · Infrastructure needs are corporate hangers, T - Hangers and manufacturing buildings financed by private industry and matching funds grants. · Immokalee's signage is currently not very professional and it will be replaced with improved signage that tenants can use to advertise their presence there. · New T-Hangers are needed at the airport. They are a good source of revenue and there is a waiting list for them. These are eligible for 50% funding from DOT. · With Ave Maria and the community growing, high end aircraft is expected to increase at Immokalee Airport. · Immokalee Airport has a Runway Project, currently unfunded, for milling and resurfacing the 5,000 foot runway. The estimated cost is $3 million. · Immokalee Airport has a Runway Extension Project for a 2,700 foot extension. The best estimate of the cost is $9 million, and the estimated time of completion is seven years. Mr. Mudd asked if the Airport Authority owned all of the land necessary for the Runway Project. Ms. Cook responded that it does not, and would require an easement. Page 5 March 29,2006 Mr. Doyle spoke about the length of the runway which will be 7,300 feet with the extension. That length will cover 94% of aircraft that is likely to use an airport such as Immokalee. Commissioner Halas indicated that ultimately the runway length should probably be around 10,000 feet to support the huge growth potential for the airport. Since this is a trade free region and landing fees are very competitive, the airport can be marketed as attracting air traffic or cargo in from Europe and transferring the cargo, possibly then sending it on to the Far East. Commissioner Coyle suggested trying to reserve as much land as possible from the Colliers. Mr. Doyle indicated that a master plan process will be initiated shortly. There is currently a need to increase the runway to 7,300 feet. The plan needs to keep being updated to stay ahead of the curve. Improving the road to the airport is also key to attracting business to the airport. · With anticipated increased jet traffic at Immokalee Airport, it would be good to have a Ground Power Unit. This will be in the budget as a capital request. · Other needs are new roadways and Spec Buildings to help get the Tradeport area leased out. Mr. Doyle indicated that the Airport Authority is preparing an airport PUD so that zoning consistent with a first class airport can be obtained. This is being done in tandem with the master plan. There is a conceptual plan showing the use of an abandoned runway as a taxiway. Mr. Mudd brought up Collier County's need to come up with 10% ofthe $22 million in planned investments, asking if money should start to be set aside in a special fund for this purpose. Commissioner Halas expressed concern with getting a control tower built first. Commissioner Coyle suggesting calling the fund a capital improvement plan for the Immokalee Airport Authority, and then the funds could be used for whatever the capital needs are at the airport. Commissioner Halas agreed. Mr. Peterka indicated that the Administration's budget for 2007 has cut airport improvement program funding by $765 million, and the set aside for general aviation, the normal funding that the Airport Authority gets, would be reduced. Each airport normally receives a minimum 0 f $150,000 per annum, and this would go away under the Administration's new plan. Page 6 March 29,2006 Mr. Mudd indicated that we can lobby to try to get an additional allocation of dollars. Break 3:10 PM Reconvened 3:22 PM IV. Tammie Nemecek, President of the Economic Development Council, introduced the individuals present for the EDC's portion of the workshop. Bill O'Neill, Chairman of the EDC Immokalee Task Force, discussed a new comprehensive land use analysis County-wide, focusing on economic development sites, and introduced Brian Goguen, Russ Weyer and Bob Mulhere to present the analysis. · Brian Goguen, EDC Board Member, noted that the purpose of the EDC Land Use Task Force is to identify ways to attract high wage employers to Collier County, and also where to locate those employers. o Background: · Collier County's population is expected to double over the next twenty years. · A diversified economy makes the County less susceptible to tourism. o Land Use Factors . Cost of land · Availability of entitled land · Competition from other communities · Comparative timeframe for return on investment for industrial land versus residential land development · NIMBY (not in my back yard) · Limited transportation networks . Utilities and other infrastructure o Other Issues · Entitlement and permitting time and cost · Workforce - training, availability, housing affordability · Other costs - building costs, impact fees, architectural standards o Land currently available is very expensive · Russ Weyer, Fishkind & Associates, presented a Mid and Long-term Availability analysis. o Background: · EDC asked Fishkind & Associates to assist in measuring business park needs going forward in Collier County. · There was no formal study to date. · The goal is to develop accurate data-driven methodology so that needs going forward would be understood. o Assumptions and tasks: Page 7 March 29, 2006 · Used Collier County Long Range Planning numbers (744,000 population build out number going to year 2030). · Used 2005 workforce distribution per I-Site data (current census data). · I-Site spreads workers across industries accounting for workforce structural changes (an example is a reduction in agricultural workers as land is consumed by real estate development). · Used adjusted industry standard square foot per employee numbers. · Divided total square feet by 8,000 sf/acre, the average of County approved square footage per acre to date. · Determined acreage surplus / deficit. o Results · An acreage deficit of708 acres in 2010, growing to a deficit on 3,685 acres in 2030 (acreage deficit means acreage needed with buildings completed and occupied). · Growth is heading out to Immokalee, so that is where the opportunity lays. · Mr. Mulhere, EDC Land Use Task Force, presented recommendations: o Rural Fringe and Eastern Lands: · Provide incentives to encourage Business Parks / R&T Parks: o Reduce requirements for TDRs and Stewardship Credits. o Employment sites receiving incentive will be located proximate to a Rural Town or Village. o Ensure Fast Tracking of local, state and federal permits in Rural Fringe and Eastern Lands. o Economic Development Zones: · Create economic development zones with specific incentives attached to increase the stock of land available for economic development purposes. · Customize incentives depending on the geographic area. · Consider zoning by right. o Land Development Code Revisions: · Review and amend existing R&T and Business Park District language to address barriers for development. o Create a Research & Development Authority: · Public / Private Partnership formed through the EDC. · Need state legislature approval. · Land purchased through bonds. . Benefits: o Ability to hold land for longer time period o Develop special incentives o Ability to build spec buildings o Ability to develop Incubators Page 8 March 29, 2006 Commissioner Coyle asked for clarification of the concept of locating business, and research and technology parks proximate to rural towns or villages. Mr. Mulhere responded that within the Fringe and Eastern lands there are some properties of significant size adjacent to major arterial roadways. These would accommodate a business park of significant size, and would also accommodate a compact rural fringe village with all of the necessary components such as schools, recreation and houses of worship. Commissioner Coyle expressed concern about avoiding the urban sprawl that would result from taking four or five urban villages and filling in between them with business, and research and technology parks. Mr. Mulhere clarified that the recommendation is to locate the business, and research and technology parks within the receiving areas that are already identified so that the leapfrogging that Commissioner Coyle wants to avoid would not occur. Commissioner Coyle discussed identifying on the Future Land Use map of the Growth Management Plan, land identified for affordable housing development, and having it proximate to business, and research and technology parks. This could perhaps accommodate the people who would be working in the parks. Ms. Nemecek agreed that it is necessary to have a place for the people who will work in the new parks to live. Commissioner Coyle indicated that it is essential to decide on one or two locations that are proximate to all of the rural villages rather than replicating that model four or five times and creating urban sprawl. Mr. Mulhere indicated that the receiving areas have been identified for the rural fringe mixed use district. It's more difficult for the rural stewardship area. Commissioner Coyle commented that it is a lot easier to convince employers to accept affordable housing near their businesses than it is to get people who already own residences to accept affordable housing adjacent to their residences. Commissioner Coletta noted that there is already a law requiring 20% affordable housing within the community. He wants to avoid having everyone below a certain income level having to look for housing next to an industrial park area. Commissioner Halas suggested that with the tremendous growth there will be a need for a heavy industrial area. This should be buffered by a research and development area, and then residential areas. He noted that land desirable for research and development areas will disappear unless action is taken quickly. He Page 9 March 29, 2006 suggested that proposals be brought back to the BCC that address specific recommendations discussed today. · Bill O'Neill, Chairman of the Immokalee Task Force, introduced the Florida Tradeport section of the presentation. o The Immokalee area is an important geographical focus for diversified economic development in the County. o KS&R, a market research and consulting firm, has done a business requirements study to identify and prioritize opportunities and action steps for Tradeport development. · Jeff Horst from KS&R made his firm's presentation: o The first objective was to determine air/ground transportation infrastructure and requirements for similar sized airports and trade zones. 13 in-depth telephone interviews were conducted with community leaders in Florida, the southeastern US and California. o The second objective was to explore the decision making process and selection criteria prospective businesses use when locating or relocating commercial business manufacturing/distribution facilities, and identify industries or market niches as prospective targets for the Florida Tradeport. 130 in-depth telephone interviews were conducted with business decision makers and influencers. o Site selection criteria in order of their importance were found to be the following: · Access to ground transportation (5 to 10 miles of an Interstate). · Price ofland (lease price within $6,000 - $12,000 per acre). · Readily available land. · Availability of skilled workforce (the available workforce from the area surrounding the Florida Tradeport meets the demands of the market). · Incentives (tax credits or refunds for job creation is the leading incentive. Expectations for incentives from local government are low, and incentive programs already in place could help to differentiate Collier County). · Availability of unskilled workforce. o Runway Length · An extension as discussed earlier (to 7,300 feet) would meet at least 85% ofthe aircraft accommodation requirement determined from the interviews. o International Shipping · This plays a small part in most companies' overall shipping practices, making this advantage more a niche play. o Overall Decision Timeframe · Over three-quarters of participant companies expect the overall decision process to take one year or less. This is a barrier with the permitting process, and the ability to fast-track would be a benefit. Page 10 March 29, 2006 · Of those very likely to consider Florida for relocation, 50% believe the overall decision making process should take less than 6 months. o Contact Strategy · Site tours, personal contact, statements of qualifications, and case studies are the most effective marketing tools, along with outside references. o Florida Tradeport Value Proposition · Reasonably priced land and quick access to the Interstate System are the most highly valued Industrial park features. o Industry Needs · Agriculture/Food Processing requires incentives and an unskilled workforce. · The Aviation industry is an attractive target, particularly if the runway is extended. · Manufacturing is more dependent on access to the Interstate system. · Retail/Wholesale is attracted to the area and its proximity to Tampa and Miami. · Warehouse/Storage is dependent on rail, water and access to the Interstate, making this a harder sell until the proposed loop road and connection to the Interstate is completed. · Ms. Nemecek concluded the presentation with EDC Recommendations- Action Items for BCC and CCAA: o Support funding and constructing the 29/82 bypass road; this needs to be accelerated. o Florida Tradeport fully permitted at the Federal, State and Local levels. o Fund airport infrastructure development: . Hangars · Internal Roads · Fiber optic/Wi-Fi Network · Runway lengthening . Tower o Develop pad ready/pre-permitted sites at the Airport. o Spec building development. o Enhance Florida Tradeport business plan to include financial feasibility of outsourcing development to private developer. o Fund EDC's request for Florida Tradeport research and marketing initiatives. Commissioner Halas indicated that the Commission is behind finding the resources to address the concerns and issues brought before it today. V. Public Comments: Dennis (Duke) Vassey of North Naples said that capital improvement funding at Immokalee is a must. When people come, they move fast, and our process right Page 11 March 29,2006 now is not for a fast mover. It's important to invest in the infrastructure and to knock down the barriers that are normally out there. There being no further business for the good of the County, the workshop was concluded by order ofthe Chair at 4:33 PM. BOARD OF COUNTY COMMISSIONERS BOARD OF ZONING APPEALS /EX OFFICIO GOVERNING BOARD(S) OF SPECIAL DISTRICTS UNDER ITS CONTROL -~~/ Chairman Commissioner Frank Halas ATTEST:-, - ., DWIGllT -E~'13Rot;K;; ,CLERK J ." ~ ~-;"'~\ 1~~ lr f\. On ,'. ..)~l~( '~~~st. ~,;':~. Cha 1 ntan s S ''Ofta'ij,r\?" ,oli 111 These minutes approved by the Board on ~ or as corrected , as presented ~ ..ll- Zf5IJp Page 12