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BCC Minutes 01/08/2009 W (w/EDC of Collier County) January 8, 2009 MINUTES OF THE MEETING OF THE BOARD OF COLLIER COUNTY COMMISSIONERS AND THE ECONOMIC DEVELOPMENT COUNCIL JOINT WORKSHOP Naples, Florida, January 8, 2009 LET IT BE REMEMBERED that the Board of Collier County Commissioners and the Economic Development Council, in and for the County of Collier, having conducted business herein, met on this date at 9:00 AM in WORKSHOP SESSION in the Administration Building "F," 3rd Floor, Collier County Government Complex, Naples, Florida with the following members present: CHAIRMAN: Commissioner Tom Henning Commissioner Jim Coletta Commissioner Fred Coyle Commissioner Donna Fiala Commissioner Frank Halas ALSO PRESENT: James Mudd, County Manager Sue Filson, Executive Manager, BCC Office C~r County "-- ~ ~ Collier County Board of Commissioners Economic Development Council of Collier County WORKSHOP JANUARY 8, 2009 9:00-12:00 p.m. Economic Development Council of Collier County I. Welcome and Introductions II. Opening Remarks/Discussion Ill. Agenda . Collier County Strategic Focus Areas & Goals . A Proactive Approacb to Our Future . Tbe Action Plan . Critical Questions . Wbere We are Today IV. Closing Remarks January 8, 2009 Page 1 January 8, 2009 Chairman Tom Henninl! called the Workshop to order at 9:00 AM. The Pledge of Allegiance was recited. Self Introductions were made and Chairman Henninl! welcomed the participants. Economic Development Council: Tammie Nemecek, President - EDC William O'Neill, Roetzel & Andress, Esqs., Chairman - EDC Robert Mulhere, R W A, Inc. Brian Goguen, Barron Collier Partnership Julie Schmelzle, Bank of America Robert McMahan Openinl! Remarks and Presentation bv William O'Neill, EDC Chairman: He stated, at the conclusion of the 2008 Workshop, the participants were focused on the goal of improving and diversifying Collier County's economy. The purpose of the 2009 Workshop was to present the results of the joint efforts. A PowerPoint presentation was jointly made by Mr. O'Neill and Tammie Nemecek, EDC President. Copies of the presentation were distributed. Topics presented: . Goals - shared understanding of current economic conditions; consensus on the 2008 Action Plan; and the creation of a self-sustaining program to ensure consistent, high-value of economic development . Economy by Design ... Not by Default . Proactive Approach to the Future - Innovation - A New Path . Develop a Flexible and Comprehensive Action Plan - participate in determining the best way to develop a "Catalyst Project" Commissioner Fred Coyle is the Chairman of the Catalyst Project . Critical Questions What is the connection between quality of life and the creation of high-wage jobs? How to prevent a deteriorating economy from imposing a tax burden on homeowners? What is the game changing activity? What will it take to be successful in inspiring location and growth of catalyst companies? . Leadership Florida conducted the 2008 Sunshine State Survey and the most important issues facing the State of Florida, according to its citizens, are the economy and jobs. The Survey results indicated Floridians want the State and local government to offer incentives to attract, retain and re-locate businesses to the State. 2 January 8, 2009 . As part of its "Project Innovation Initiative," the EDC developed an economic scorecard as a tool to measure the economic vitality of Collier County. . Enterprise Florida defined eight regions of the State and outlined the primary industries for each which included aviation, aerospace, defense, IT, high-tech manufacturing, medical research and development, avionics, and deep water ports. . Collier County's industry is limited to tourism, retail and healthcare. . In Collier County the ratio of the taxable value of commercial property to residential property is 0.10% while in the South Central region it is 0.36%. . In order to improve the economic vitality, Collier County must create a culture to attract high-wage companies and an environment that supports workers. The Catalyst Initiative . Attract a catalyst company to provide a foundation for the creation of high- wage jobs with the ability to create 50 to 100 jobs initially, as well as the ability to add more jobs and sustain those jobs for 10 years. . Create a structure to allow for a self-sustaining economic development investment program by attracting similar and/or sustaining companies. . Create "Economic Development Zones" to induce job creation by providing land and/or bui Idings ready for build-out. . Workforce must be developed through the alignment of Kindergarten through College educational programs to meet industry requirements for skilled workers. Focus on Industry . Computer software and services . Health and life sciences . Clean Technology companies The Torrey Pines Institute for Molecular Studies, a biomedical research institute, recently opened in Port St. Lucie and was cited as an example of a successful relocation of a catalyst company: . Construction industry was revitalized; . 25 employees were hired initially, with 35 more employees by June, 2009; . Within 10 years, 189 jobs will have been created; . Average wage - $67,000.00; . $500,000.00 in equipment purchases; . A spin-off company, Mann Research Center, will begin construction of a $100M facility; . Over 80 meetings were generated as a result of the relocation and meeting attendees contributed to the local hospitality industry. 3 January 8, 2009 Local contributions: . $30M from the City of Port St. Lucie for land and building . $IOM from St. Lucie County . $6.5M from Florida Atlantic University . $32M from the State of Florida - Innovation Fund Self-Sustaining Funding . Economic Development Zone generates revenue for the County . The County allocates a portion of the revenue to the Economic Development Authority to act as the fiscal agent for the EDZ Next Steps for Collier County . Staff will work with the EDC to implement the Catalyst Initiative and create the Economic Development Zone . Within 90 days, prepare a formal resolution with staff, for presentation to the Board of County Commissioners, outlining the Action Plan . Encourage community input and grass roots support for the Initiative Discussion: The Commissioners expressed concerns regarding: . The payment of Staffs time? Tammie Nemecek stated the EDC has worked with County Staff as part of its public/private partnership. The EDC would complete the ground work for Staffs review resulting in minimal impact on Staffs time. . The County's involvement regarding the acquisition of land? Robert Mulhere stated the County would not be involved. Tammie Nemecek stated private landowners would be contacted. . Buildings - to be built or will existing be used? Tammie Nemecek stated most of the companies have utilized existing buildings while waiting for completion of new construction. Discussion ensued concerning Impact Fees, and whether or not Fees could be waived if a company relocated and utilized (vacant) existing buildings for which Impact Fees had already been paid. Also discussed was the potential amount of Staffs time that would be required. County Manager Mudd stated there were already incentives "on the books" that had not been fully utilized because they were not enough to attract new business. He stated he supported developing a mechanism to attract new business because the current system does not work. 4 January 8, 2009 Commissioner Coyle stated the County could offer shovel-ready parcels of land to be fast-tracked for development by cutting the permit and approval process by two to three years. Staff could assist the EDC by identifying the parcels of land that could be considered for development. Additional assistance would be requested from the legal community to develop the legal structure for the Economic Development Zone. There was further discussion concerning the Port St. Lucie project, what incentives can Collier County offer, the fiscal impact on the local economy, how to generate the required revenue, and how to obtain support for the concept of the Economic Development Zone from the general public. Brian Goguen stated the purpose of the EDZ was not to increase Ad Valorem taxes but to diversify the local tax base which will lower property taxes overall. Commissioner Coyle stated the tax base has been growing smaller due to the exodus of residents -- fewer households must pick up the burden. The goal is to attract high-wage industries to the area to strengthen the economy. Employees of the companies will be able to afford to buy homes. Discussion continued regarding locating sustainable revenue stream and possible contributions from the private sector as well as from government. Caution was expressed concerning zoning regulations which are very specific. A suggestion was made to examine each request to waive restrictions on a case-by-case basis. Another suggestion was to find an innovative way to shorten the review process. Commissioner Coyle stated companies must be offered the option to retro-fit an existing commercial building or to become part of a technology park. The company must be allowed to make the decision. The EDC should explore several options to entice companies to move to Naples in the short term and long range. He stated "time is money" to companies and Collier County must find a better way to make it easier for companies to relocate to the area. The structure must be developed first. He further stated a "working model" is almost impossible to develop but consideration to special circumstances must be given on a case-by-case basis. Tammie Nemecek stated opportunities exist for both State and Federal funding. Public Speakers: Gina Downs presented a comparison between Duval and Collier Counties concerning different taxes and fees imposed as sources of additional revenue. There are no Impact Fees in Duval County. Duval County has obtained Federal and State grants, PILT ("Payment in Lieu of Taxes") money and shared revenues on the local, state and federal level. She stated she hoped when the program is presented to the general public for its opinion that a fair assessment is presented rather than a 5 January 8, 2009 rather than a hard sell. She stated she was not sure about the direction the program would be taking. James Waterman, an architect, stated he is very familiar with the development process. He stated Naples is no longer a "sleepy little community and people should wake up." He suggested government and private developers work as a "team" to obtain faster results. Businesses look for the best deal as an incentive to relocate. An educated and skilled workforce is crucial to sustaining economic development. The review and approval process must be streamlined. Contacts should be made with Mexico and Latin America. He further stated that U.S. companies are taking advantage of foreign opportunities and Collier County should also. David Jackson, Executive Director of the Bayshore/Gateway Triangle CRA, stated he supported the project. He proposed a potential solution: the EDC and BCC should consider the Bayshore/Gateway Triangle area as the location for the first/pilot project. He has an economic plan in place, a nF is in place, funding (in reserves) is in place, staff is available, a zoning overlay is in place and infra- structure is in place. There arc over 1,800 acres located in central Collier County ready to evolve into the EDZ. c.J. Houston, Chair of the Board of the Greater Naples Chamber of Commerce, stated the members ofthe Chamber support Project Innovation and it should be implemented in a timely fashion. She encouraged the BCC to think "outside the box" and to also remember that current businesses in the area are struggling and need support. Collier County must diversify so its residents can maintain a quality of life. Bob Murray, East Naples Civic Association, compared the situation in Naples to an individual who is bleeding badly and destined to die. The EDC has addressed the bleeding and needs bandages, i.e., the means to put the process in play. The leaders ofthe community have decided that "something" must be done. He stated, "If we are not careful, this sleepy little backwater will become a destitute little backwater. We must act now." Gary Price stated it is time to focus on making changes. He supports the Project and suggested that government and the private sector must work together. He stated, "The cost for the Project is the highest and best use of tax dollars because the cost to the citizens of Collier County, if nothing is done, will be far greater." Commissioner Coyle stated Project Innovation was designed to obtain public support for the concept of diversification of the economy. He further stated it was important to make the public aware that no one was interested in destroying the present character or way of life in Naples. Chairman Henning stated the EDC was requesting the BCC approve its request for Staff to review the proposed formal resolution. 6 January 8, 2009 Tammie Nemecek stated the EDC would prepare the Resolution for review by Staff prior to presenting it to the BCC for action. The EDC would also work with the County Manager and County Attorney's office regarding the legal structure. Robert Mulhere stated Mr. Jackson had presented an interesting option and it will be one of the areas to be considered. He further stated the Project will examine all of the options and locations as part of the process. Chairman Henning questioned whether or not an Economic Development Zone had been created in Immokalee. Tammie Nemecek stated there was an Enterprise Zone in Immokalee which was different from the Economic Development Zone which is a locally created program. Commissioner Coletta stated he will be very interested to see what will be recommended by Project Innovation. Commissioner Coyle asked the directive be revised to task Staff to work with the EDC to recommend potential locations for EDZ development and Staff would retain its ability to make independent recommendations to the BCC concerning the Project and the potential locations. There being no further business for the good of the County, the Workshop concluded by order of the Chair at 10:40 A.M. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Attest; Dwight E. rock,qer~ 1l_...... ..~.~ l' t""-Oft~. Th~sN'mutes were approved by the Board/Committee on as presented V ,or as amended .Q1rtXt1' D,1aR, 7