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BCC Minutes 09/27/2006 W (w/EDC) September 27,2006 MINUTES OF THE MEETING OF THE BOARD OF COUNTY COMMISSIONERS AND ECONOMIC DEVELOPMENT COUNCIL WORKSHOP Naples, Florida, September 27, 2006 LET IT BE REMEMBERED that that Board of County Commissioners and Economic Development Council in and for the County of Collier, having conducted business herein, met on this date at 9:00 a.m. in WORKSHOP SESSION in Building "F" of the Government Complex, East Naples, Florida with the following members present: CHAIRMAN: Commissioner Frank Halas Commissioner Fred Coyle Commissioner Jim Coletta Commissioner Donna Fiala Commissioner Tom Henning ALSO PRESENT: Tammie Nemecek, EDC Beth Skotzke, EDC Rodrigo Godoi, Toll Brothers Damon Romanello, Architecture, Inc. Brian Goguen, Barron Collier Partnership Al Reynolds, Wilson Miller Heidi Williams, Q. Grady Minor & Associates Russ Weyer, Fishkind & Associates, Inc. Robert Mulhere, RW A, Inc. Jim Mudd, County Manager Sue Filson, Executive Manager, BCC Office 1 September 27,2006 I. County Manager Jim Mudd introduced the Board of County Commissioners. The Workshop was called to order by Chairman Frank Halas at 9:00 a.m. September 27, 2006. The Workshop was noted as Workforce Community Demonstration Project. The Pledge of Allegiance was recited. II. Commissioner Halas introduced Tammie Nemecek, President of the Economic Development Council. III. Presenters Tammie Nemecek introduced the Workforce Community Development Project. On March 2006, the EDC Board of Directors set forth mission to develop the workforce-housing program responding to needs of workforce with the financial realities of to day's young people in Collier County. EDC partnered with Urban Land Institute. EDC provided advisory role. EDC leadership young leaders took on task of developing realistic program to address housing needs of workforce in Collier County. Tammie Nemecek provided introduction. Beth Skotzke provided descriptions of resident profiles taken into consideration in this program. Damon Romanello described the design process of the hypothetical community and the homes. Rodrigo Godoi explained the cost analysis, and how we could make it happen. Robert Mulhere, Russ Weyer and Heidi Williams reviewed the action plan that would help achieve the goal of affordable housing for workforce in Collier County. Tammie Nemecek introduced the volunteers who brought this presentation to reality. There were over 40 volunteers who spent thousand of hours, nights, and weekends to accomplish this project. Tammie thanked the young leaders group for all their hard work and to the EDC advisors who lead well. The project participants wanted to provide comprehensive solution from an incentive based program to help create housing. An incentive based approach that would be economically sound used in hopes that private sector would build homes such as these. The project was approached in the long view, encompassing long-range development. Collier County's population 2 September 27,2006 predicted to double over the next 25 years, most of that population will be in Eastern Collier County. Last June, Collier County job grow reported. Business parks needed along with the affordable workforce housing, best scenario to have the business parks next to the housing in Eastern Collier County. June's report was that there was to be a 3700-acre deficit by the year 2030 of business parks in Collier County. The presentation is based on hypothetical community to allow participants a venue to understand and formulate results. The program needed to be useful to multiple communities in Eastern Collier County, not just one site. This would be an ongoing program to address housing. Median income in Collier County is $66,100 in 2006. Target price for homes that home cost no more than 30% of income to go to housing costs including taxes and insurance, all things that go into purchasing home. Tammie Nemecek introduced Beth Skotzke who introduced the people, the residents of the community. Beth Skotzke described the hypothetical residents for low income, moderate income and gap income groups. Beth introduced Damon Romanello who presented the design of the community. Damon Romanello discussed the master plan. At the heart of the plan was the charrette. Charrette was various individuals at one time brainstorming session to provide feedback for research. Master plan was created where the volunteers themselves wished to live. Hypothetical property was not located in urban Collier County; communities would be built in Eastern Collier County. Three hundred acres, environmental constraints, desire to be along major arterial highway. Description of community was given. The community was designed by the end users. NIMBYism myths dispelled. Some code flexibility needed to produce these communities. Plan stressed strong pedestrian environment. Types of homes reviewed on Power Point, also found in distributed compilation. Tammie Nemecek interjected that young leaders group did a fantastic job designing the community. This conceptual design, a hypothetical plan, developed into a plan that could be used throughout Eastern Collier County. Code flexibility needed to produce, not significant deviations from codes in place. Tammie re-introduced Damon Romanello to describe resident profiles and how related to the homes in this community. Damon Romanello spoke about the six variations of the homes in plan as noted in compilation. Tammie Nemecek reiterated the higher density community can be appealing and attractive, that there is variety in community. 3 September 27, 2006 Rodrigo Godoi introduced to review cost analysis with regards to planning. Rodrigo Godoi reviewed which homes the hypothetical residents could afford. Goal was to keep home prices under target prices noted. Project cost $332,000,000 to complete, roughly $1,000,000 per acre to develop the entire project. Average profit margin of 12 to 14% for builder/developer to undertake a project of this magnitude was discussed. Non-controllable costs were noted, based on market conditions, average $95 per square foot to build. The county has control over the density, some of the infrastructure costs, impact fees, stewardship credits to develop land in Eastern Collier County and the time it takes to get approval. Examples of what could be done to reduce costs of units. Water and sewer plants built within the community may reduce impact fees. School site provided within the development which may reduce impact fees further. Reduced time to get project approved would reduce home costs. Commissioner Halas inquired about cost changes if density increased to 8 units/acre rather than 7 units/acre. Discussion ensued. Tammie Nemecek addressed issue of an intensive incentive program needed to produce. Locally, density could be controlled, infrastructure costs to offset costs through alternative funding source. Another controlled cost factor might be permitting to help reduce costs. Commissioner Fiala addressed group stating the plan is providing a well- balanced community. Commissioner Coletta liked what had been presented so far. He stated the public should not think that this would be the only focus. Tammie Nemecek responded that EDC has been working with County staff to formulate a comprehensive solution. Infrastructure and school costs built into the cost of the project. Bob Mulhere, Russ Weyer and Heidi Williams who provided the recommendations with comments from Al Reynolds. Bob Mulhere suggested analogy of housing issue being a puzzle; we have some pieces of the puzzle in place. Mr. Mulhere commended the Board and the staff for working diligently to add to the pieces of the puzzle. One piece is to depend on existing density bonus. Other pieces included infrastructure, expanding impact fees deferral program, and permitting. Russ Weyer spoke of infrastructure costs, how to fund them. This project generated in excess of 60 million dollars over 30 year period, excess of capital and operating costs. Recommendation to funnel that excess back into the 4 September 27,2006 project itself was made. Impact fees needs mechanism to get funding up front. County might help fund utilities up front. Recommendation made to keep the homes affordable. Heidi Williams recommended flexibility in design and permitting, also to shorten the time it takes to obtain approval for construction. Savings could be $1,000,000, as stated by Rodrigo Godoi, if time shortened by 6 months; the savings could be passed along to each homebuyer in that development. Efficiency monitored would ensure continued private funding in Collier County for workforce housing. Al Reynolds presented the wrap up. Project was created from perspective of a place where the workforce would want to live. The young leaders group did the work; the advisory group did little in comparison to the young leaders group. This effort will produce new tools. The project not considered silver bullet; but tools can be taken from this project. With this project, it would be possible to market to potential investors in Collier County. He stated they should focus on things that can be controlled locally. Cost factors have impacted all home types and income levels. The State of Florida has had affordable housing rules for 20 years which has not really done much. Incentive-based solutions would work if tested on real world economics. Higher density design is not optional to get this project to work. Mr. Reynolds spoke of items listed on p. 29 of compilation for what has worked against affordable housing in Collier County. Solution was presented as well as an action plan. IV. Discussion Commissioner Coletta urged the group to continue. Currently, some issues cannot be resolved like stewardship credits and panther mitigation. Code changes would not be of concern but LDC changes involved like linkage fees and rezoning. Commissioner Coyle discussed perceptions. He agreed with the project. The Board has been trying to locate workforce housing in the urban area, the current plan would not work in urban area. Planned village was the reason stewardship was developed. Developers have already donated land for roads and infrastructure. A density bonus program has been developed. Board has approved approximately 4000 affordable housing units mostly in the urban area, but they have not been built yet. 30-40% of new road development has been funded by property taxes. Commissioner Coyle suggested that EDC and young leaders group work with developers oflots of rural villages already in process. 10:16 a.m. Tom Henning arrived. 5 September 27,2006 Commissioner Fiala spoke about this being a great idea, hoping that it would be expanded upon, a well-balanced community; that this should be solely for workforce, not for investors. Also was brought up that the retirees also need some affordable housing. Commissioner Halas congratulated the young leaders group. Collier County has grown to need a rapid rail system or bus system for transportation between Ave Maria and other new communities which are to be built. Commissioner Halas encouraged the group to continue. Commissioner Coyle noted that the concept of specificity is important; the simpler it is made, the faster it goes. Discussed the idea of not being too idealistic, assuming that those who live in the homes will work in the local business parks. Commissioner Henning was very encouraged with this project. v. Public Speakers Bob Krasowski was impressed with this great effort. Missing from the hypothetical workers were the lawn service workers live, the people who work in the coffee shops. What mortgage type packages used to identify project, 20-year or 30-year fixed rate? Not much presentation on the commerce park, interest peaked. Group may need to address the reality that people do not stay working in the same position ergo the local commerce park. Now with softening in the housing market, housing gluttony influences market. Al Zichella said that CBIA supports this project, they appreciated the recommendations. Voluntary incentives would work best; mandates would not work as well. Means testing as to who would qualify is a simple process. Mr. Zichella urged no long-term restrictions on people who chose to take advantage of this program. Bob Mulhere wished to express that 602 rental apartments were in place in the project, tried to keep rental units under $900. Commissioner Halas thanked all for the hard work on this project. He encouraged the group to remain together and go on to other challenges. Tammie Nemecek asked the Board, by straw vote, to approve the action plan in the compilation. The EDC asked for support from the Board to bring this proj ect back to the Board in four months' time. Five nods in ascension, so the project will be revisited in four months. 6 September 27, 2006 There being no further business for the good of the County, the meeting was adjourned by order of the chair at 10:43 a.m. ************** COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS "2 ~ ~ ~ .//"? ._~~~~ Commissioner Frank Halas, Chairman ,,'..-^'.... ,,/:')';) >/., "'. . V)') t, ~ ~f':!." .' ~,;,L ~~t;'~ .:.' H.. .. .~. c;~ "I .: r:,' " ~!., , A""T' u,,"".. \', "', '. j, c( ".~.r:L:, -....~ ',t-_:; :.; (~:r~ 1.lIIt... 0111.. These minutes approved by the Board on presented \./ or as corrected , as 7