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Agenda 04/14/2009 Item #16F 2 Agenda Item No. 16F2 April 14, 2009 Page 1 of 6 EXECUTIVE SUMMARY Recommendation to approve a Resolution of the Board of County Commissioners of Collier County, Florida, in support of a Seminole Indian Gaming Compact which includes a revenue sharing agreement with affected local governments that would provide five (5) percent of casino revenues directly to affected local governments to offset impacts to infrastructure OBJECTIVE: For the Collier County Board of County Commissioners (BCC) to approve the attached Resolution in support of a Seminole Indian Gaming Compact which includes a revenue sharing agreement with affected local governments that would provide five (5) percent of casino revenues directly to affected local governments to offset impacts to infrastructure. Currently in the Florida Legislature, the proposed Seminole Gaming Compact is set forth in House Bill 7129 (formerly PCB SICR 09-01), which was filed Apri11, 2009 by the Select Committee on Seminole Indian Compact Review and includes the following provision: E. As providedfor 25 U.S.c. s. 2710(b)(2)(B)(v), the Tribe agrees to pay to the State an additional amount equal to 5 percent of the annual amount setforth in Section B. of this Part, which funds shall be used for the purposes of offsetting the impacts of the Tribe's facilities on the operations of local governments. To be more specific and clarify that disbursements will be to the affected local governments, and those local governments will then identifY where those dollars will be spent, county staff proposes language that reads: ".,. which funds shall be disbursed to affected local governments and used for the purpose of offsetting the impacts of the Tribe's facilities on the operations oflocal governments as determined by the affected local government." Also proposed is Senate Bill 788 filed January 21, 2009 by Senator Dennis Jones and Senator Jim King which includes the following provision: (5) The Governor shall ensure that all revenue sharing received pursuant to the compact is deposited into the Education Enhancement Trust Fund. The attached Resolution recommends BCC support of the revenue sharing provisions in House Bill 7129, with staffs proposed modified language, which ",ill then appropriately provide for revenue sharing of five (5) percent with affected local governments. The Resolution also recommends opposition to the revenue sharing provisions in Senate Bill 788 as the bill does not provide any revenue sharing to local governments to offset the impacts of Seminole Indian gaming. It should be noted that during the Legislative Session the proposed bills are fluid and subject to amendments and change daily. * :1eni tJo. 1 GF2 I-\;:fii 14, 20D9 ~. ,.., .""" r aJs L DI 0 Once approved by the Board of County Commissioners, the Resolution will be transmitted to members of the Collier County Legislative Delegation, the Office of the Governor, the Senate President and House Speaker, and the Florida Association of Counties. CONSIDERATION: At the BCC regular meeting on February 10, 2009, County Manager Jim Mudd during Staff and Commission General Communications (Item #15) told the Commissioners about correspondence he received February 9 from Coconut Creek City Manager David J. Rivera requesting consideration of a draft compact presented to Governor Charlie Crist upon his request to be used in development of the Seminole Tribe of Florida Compact. The BCC voted unanimously to approve that the County Manager proceed with communications and actions on behalf of Collier County to pursue the revenue sharing agreement as being brokered by the State of Florida. The BCC's intent was to insure that the Seminole Gaming Compact would provide Collier County five (5) percent of the gambling revenue from the Seminole Casino in Immokalee to offset the impacts on Collier County's capital facilities, infrastructure, and government services, In addition, the County Manager informed the Board of a meeting the following day in Tallahassee on the Seminole Indian Compact, and once he received the endorsement of the County Commission, he provided direction to the county's state lobbyist, J. Keith Arnold and Associates, to represent the BCC on this issue. Again at the BCC meeting February 24, 2009, during Public Comment on General Topics (Item #11), the topic was addressed when 1mmokalee resident Fred Thomas spoke to the Commissioners about the Seminole Tribe Casino in Immokalee and the County Manager repeated that the Board had unanimously approved receiving five (5) percent of revenue from the Seminole Tribe's Immokalee Casino, which would he deposited into the county's General Fund, The BCC support for the Resolution (attached) is unquestionable and unanimous. FISCAL IMP ACT: If Collier County does not receive five (5) percent of the revenue from Seminole Indian Gaming to offset the impacts on capital facilities, infrastructure and government services, then Collier County will have to subsidize the impacts of the Seminole Tribe's gaming with ad valorem taxes. GROWTH MA~AGEMENT IMPACT: There is no growth managemcnt impact associated with this executive summary. LEGAL CONSIDERATIONS: The attached Resolution is legally sufficient for Board action. This is a regular item which requires simple majority vote. -JAK Agenda item No. 16F2 I\pril14, 2009 F'age30f6 RECOMMENDATION: That the Board of County Commissioners approves a Resolution in support of a Seminole Indian Gaming Compact which includes a revenue sharing agreement with affected local governments that would provide five (5) percent of casino revenues directly to affected local governments to offset impacts to infrastructure. Prepared by Debbie Wight, Assistant to the County Manager Agenda Item No. 16F2 April 14, 2009 Page 4 of 6 RESOLUTION NO. 2009- A RESOLUTION BY THE BOARD OF COUNTY COMMISSIONERS, COLLIER COUNTY, FLORIDA, IN SUPPORT OF A SEMINOLE INDIAN GAMING COMPACT, WHICH INCLUDES A REVENUE SHARING AGREEMENT WITH AFFECTED LOCAL GOVERNMENTS THAT WOULD PROVIDE FIVE (5) PERCENT OF CASINO REVENUES DIRECTLY TO AFFECTED LOCAL GOVERNMENTS TO OFFSET IMPACTS TO INFRASTRUCTURE. WHEREAS, the State of Florida was notified that the U.S, Secretary of the Interior planned to authorize the Tribe to conduct Class III gaming if a compact was not ratified by November 15,2007; and WHEREAS, on November 14, 2007, Governor Charlie Crist, on behalf of the State of Florida, and Seminole Tribe Chairman Mitchell Cypress, signed a gaming compact to allow the Tribe to operate certain "Class 1II" games in Florida for the next 25 years; and WHEREAS, the gaming compact executed by Governor Crist on behalf of the State of Florida specifically allocated ninety-five (95) percent of Covered Games Revenue to the State's Educational Trust Fund and five (5) percent of Covered Games Revenues to those local governments (including both counties and municipalities) affected by the Tribe's operation of Class III games; and WHEREAS, the five (5) percent of the Covered Games Revenues to be remitted to those affected local governments is necessary to offset the financial impacts of casino gaming on local government's capital infrastructure and services, as well as those expenses incurred as a result of providing numerous governmental services on a daily basis which are a direct result of providing support to the casino, its employees and the impacts associated with tourism and daily visitors; and WHEREAS, the Seminole Gaming Compact was not authorized or ratified by the Florida Legislature; that soon thereafter the Florida House of Representatives petitioned the Supreme Court of Florida, disputing the Governor's authority to bind the State to the compact; and the Supreme Court of Florida ruled on July 3, 2008 that Governor Crist did not have the authority to enter into the gaming compact without the approval or ratification by the Florida Legislature; and WHEREAS, the Seminole Tribe began operating Class III slot machines in January 2008 and banked card games in June 2008, while remitting the compact required payments to the State with said payment revenue placed in escrow and unavailable for the State to use because of the Florida Supreme Court decision; and WHEREAS, the Florida Legislature is currently considering the proposed Seminole Gaming Compact, set forth in House Bill 7129, formerly PCB SICR 09-01, which was filed April 1,2009 by the Select Committee on Seminole Indian Compact Review, and which includes the following provision: As providedfor 25 Us.e. s. 2710(b)(2)(B)(v), /he Tribe agrees to pay to the State an additional amount equal to 5 percent of the annual amount set forth in Section B. of this Part, which funds shall be used for the purposes of ojfl'etting the impacts of /he Tribe's facilities on /he operations of local governmen/s; and Page 1 of2 Agenda item No. 16F2 ,,^,pril 14, 2009 Page 5 of 6 WHEREAS, to be more specific and clarify that disbursements will be made to the affected local governments, and that those local governments will then identify where those dollars will be spent, Collier County staff proposes language that reads: "", which funds shall be disbursed to affected local governments and used for the purpose of offietting the impacts of the Tribe's facilities on the operations of local governments as determined by the affec/ed local government... "; and WHEREAS, also proposed is Senate Bill 788 filed January 21, 2009 by Senator Dennis Jones and Senator Jim King, which provides that all gaming revenue received by the State of Florida pursuant to the compact be deposited into the "Education Enhancement Trust Fund," without any provisions for addressing the impacts on affected local governments; and WHEREAS, House Bill 7129, with staffs proposed modified language, would then appropriately provide for revenue sharing of five (5) percent with affected local governments, however Senate Bill 788 does not provide any revenue sharing to local governments to offset the impacts of Seminole Indian gaming; and WHEREAS, Collier County and its existing residents will have to financially subsidize the operations and impacts of the Seminole Indian Tribe's Immoka1ee Casino if the five (5) percent of the Covered Games Revenues is not remitted to Collier County as a directly impacted local government. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that the Board of County Commissioners does hereby support a Seminole Indian Gaming Compact which includes a revenue sharing agreement with affected local governments that would provide five (5) percent of casino revenues directly to affected local governments to offset impacts to infrastructure, To that end the Board respectfully requests that the Florida Legislature support House Bill 7129 with consideration of Collier County's modified language, and oppose Senate Bill 788. BE IT FURTHER RESOLVED, that a copy of this Resolution will be forwarded to the members of the Collier County Legislative Delegation, the Office of the Governor, the Senate President and House Speaker, and the Florida Association of Counties, THIS RESOLUTION ADOPTED after motion, second. and majority vote favoring same, this 14th day of April, 2009, ATTEST: DWIGHT E. BROCK, Clerk BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA , Deputy Clerk By: DONNA FIALA, Chairman By: Jency: Page 2 of2 Page I of 1 Agenda Item No. 16F2 April 14, 2009 Page 6 of 6 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: Item Summary: 16F2 Meeting Date: Recommendation to approve a Resolution of the Board of County Commissioners of Collier County, Florida, in support of a Seminole IndIan Gaming Compact which includes a revenue sr,aring agreement with affected local governments that would provide five (5) percent of casino revenues directly to affected local governments to offset Impacts to infrastructure. 41141200990000 AM Approved By Mark Isackson Budget Analyst Dale County Manager's Office Office of Management & Budget 41612009 12:42 PM Approved By Leo E. Ochs, Jr. Deputy County Manager Date Board of County Commissioners County Manager's Office 416120096:11 PM