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BCC Minutes 03/29/2010 J (w/Marco Island City Council re: MI CRA) March 29, 2010 MINUTES OF THE MEETING OF THE BOARD OF COLLIER COUNTY COMMISSIONERS AND THE CITY OF MARCO ISLAND CITY COUNCIL COMMUNITY REDEVELOPMENT AREA JOINT WORKSHOP Naples, Florida, March 29, 2010 LET IT BE REMEMBERED that the Board of Collier County Commissioners and the City of Marco Island City Council, 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 Fred Coyle Commissioner Jim Coletta Commissioner Donna Fiala Commissioner Frank Halas Commissioner Tom Henning MARCO ISLAND CITY COUNCIL: Dr. Frank Recker, Chairman Jerry Gibson, Vice Chair Joe Batte Charles Kierster Larry Magel Dr. William D. Trotter Wayne Waldack ALSO PRESENT: Leo Ochs, Jr., County Manager Jeffrey Klatzkow, County Attorney Sue Filson, BCC Executive Manager Stephen Thompson, City Manager, Marco Island Stephen Olmsted, Director, Community Development, Marco Island er <- :'ount:.y ~;... Board of County Commissioners City of Marco lsland CRA .Joinl Workshol) Agenda March 29,2010 9:00 a.m. Collier Coullly Board of County Commissioners Boardroom W. Harmon Turner Building 3301 East Tamiami Trail Naples FL 341 12 1. Pledge of AHeghmce 2. Presentation by the City of Marco Island ~. Town Center on Marco Island 3. Presentation by the Bmlrd of County Commissioners 4. Question and Answer Period 5. Adjourn Page 1 March 29,20] 0 March 29, 2010 1. Pledge of Allegiance The Workshop was called to order by Chairman Fred Coyle at 9:00 AM and the Pledge of Allegiance was recited. County Manager Leo Ochs, Jr., welcomed the Marco Island City Council and City Manager Stephen Thompson and Staff. He stated the purpose of the Joint Workshop was to present information concerning a proposal to create a Community Redevelopment Area ("CRA") on Marco Island, which will target the Town Ccnter area. 2. Presentation by the City of Marco Island - Town Center area on Marco Island: Martin Black, Project Manager, Kimley-Horn & Associates, Inc. A PowerPoint presentation, entitled "Finding of Necessity," was given. . The Community Redevelopment Act of 1969, Florida Statutes, Chapter 164, Part III, was created as a tool for local governments to remedy areas that contain declining and/or adverse conditions. · The Town Center was targeted hy the Marco Island Planning Board for designation as a redevelopment area due to the depreciation of property values and to prevent slum and hlight conditions. · Public meetings and workshops were held over a two-day period within the City of Marco Island. o Purpose: to identify the public's perspective of issues and concerns (approximately 75 to 100 attended) · Issues defined by the community: o Need tor additional work-force housing and affordable housing components o Aging infrastructure designed prior to today's standards · The community did not want: omega-stores o bland architecture or buildings that are too high o a casino or an amusement park o traffic circles · Florida Statutes provides separate components for Coastal Resort/ Tourist Areas · Nine ofthe conditions required hy Florida Statutes existed in the target area and supported the need for redevelopment · Action Items for the City of Marco Island: o complete creation of the CRA and Agency o complete the Plan Review by the Planning Board o develop/adopt a Community Redevelopment Plan and Program o create a Redevelopment Trust Fund o complete a financial analysis ("TIF" component) (Commissioner Tom Henning arrived at 9: 10 AM) 2 March 29, 2010 Chairman Coyle clarified the City of Marco Island has the right to establish a CRA without obtaining approval or permission from the County. 3. Presentation by Mark Isackson, Director, Corporate Financial Planning and Management Services, County Manager's Office A PowerPoint Presentation was given regarding Tax Increment Financing ("TIF"). · The life of a CRA can extend up to forty years, the CRA proposed by the City of Marco Island is for a thirty-year term · Collier County has enacted three CRAs: Bayshore/Gateway, lmmokalee, and the City of Naples . The County has contributed the following amounts from the General Fund to the CRAs since their inception: o Bayshore/Gateway - $9,640, I 09 o Immokalee - $5,667,225 o City of Naples - $] 7,310,562 · Under a CRA, a base taxable value is established · Primary revenue source for a CRA is through ad valorem taxes derived through a TIF · Anticipated contribution by Collier County for the Marco CRA: $50.2M · Anticipated contribution by the City of Marco Island: $20.3 M · Staff offered suggestions incorporating the following provisions into the CRA enabling documents: o Limit the CRA term to twenty years with potential for two five-year extensions (subject to approval by the BCC) o Establish a sliding scale for the County's payments into the CRA o The County's contribution will not exceed Marco Island's contribution o Establish MSTU's or Business Improvement Districts within the CRA to reduce Collier County's impact. The rationale is those who will benefit from the improvements should pay for the improvements. · Marco Island represents 13.2% of county-wide taxable value 4. Question and Answer Period Question: Is 100% of the tax revenue sent to the County by Marco Island to support the operation of the Airport allocated for that purpose? Answer: Marco Island will be given a credit for its portion of support for the Airport when Marco's contribution exceeds 13.2%. Question: What will be the total cost to the County's taxpayers? Answer: Calculations have not been completed, but the General Fund rate will be applied. There was a discussion concerning how the taxable rate is applied to the County's CRAs and the County's potential contribution to the Marco CRA Trust Fund. It was noted Marco Island has not established a special taxing district or "MSTU." 3 March 29, 2010 A question was asked concerning the acquisition of private property by the CRA and the type of protection for smaller businesses ("Mom and Pop"). Marco Island City Manager, Stephen Thompson explained that property owners within a CRA will receive a competitive advantage to redevelop. The goal of a CRA is to create an environment in which property values will increase. Businesses with money will be attracted to the area and will invest. He suggested one way to lessen the impact ofa CRA is to limit the term of the CRA and/or limit the scope of the projects. Additional issues discussed included density, improvement of infrastructure, un met needs in other areas of the County, i.e., Golden Gate City and Golden Gate Estates, possible rezoning of Marco Island, the Level of Service requirements, and concurrency lssues. Question: Is there a possibility of instituting an MSTU to beautify the downtown area of the City of Marco Island? Answer: The proposed CRA is for commercial redevelopment and no specific plan for beautification has been included. It was noted Collier County has realized benefits from the Bayshore/Gateway and Immokalee CRAs, which have contributed over-all to County enrichment. Dr. Recker asked if private enterprises would not have accomplished the same results or if the results were due only to the efforts of the CRAs. Chairman Coyle confirmed there had heen some private investment. The Naples CRA created requirements for larger frontages for street-front properties. A number of improvements were possible through the CRAs, and the same improvements may have occurred by other means, but not as quickly. Commissioner Fiala pointed out both Bayshore and Immokalee established MSTUs first because the communities wished to heautify the area by installing landscaping, benches, and street lights. The MSTUs are still in place and CRA funds were not used for the beautification projects. Dr. Recker questioned the over-all impacts to density in the Naples CRA. Commissioner Coyle responded the City of Naples imposed a height limit of 42 feet on commercial buildings. The density increased to some degree, but was offset by the transfer of smaller lots and businesses to larger ownership. He stated the population of City of Naples has not grown in the past ten years. There has been a change in the nature of the businesses in the City. Commissioner Coletta stated lrnmokalee has recently increased the size of the CRA and MSTU to include the entire area, not just the City of lmmokalee. What Marco is planning to do is quite a bit different. The increase in valuation in Immokalee has not been as dramatic as in other CRAs. 4 March 29, 2010 He mentioned his concern for Golden Gate City and Golden Gate Estates, and for other portions of East Naples that are not in CRAs. He will begin investigating obtaining a CRA for Golden Gate Estates, east of 951, because the area has extremely depressed property values as well as a number of abandoned properties. He further stated he could not leave the people he represents out on a limb for funds that may not exist in the future, and will investigate if the residents in his District are interested in forming a CRA. Commissioner Henning stated the answer is to allow people to take charge of their own destiny, as typified by the residents of Golden Gate City who created an MSTU to beautify the Golden Gate Parkway. He confirmed he would support a taxing district for Golden Gate Estates. Councilman Magel noted CRAs take money away from the County and directed his question to Mark Isackson: Do you have the number [amount) of money taken from the County's General Funds that has been re-al/ocated to the CRAs? Mr. Isackson stated the County's contribution to the Bayshore/Gateway CRA has been approximately $9.6M since 1999, the Immokalee CRA has received approximately $5.6M since 1999, and the Naples CRA received approximately $17.3M since its inception in 1994. Vice-Chairman Larry Gibson responded to the concern about the drop in property values. He stated the real speculation on Marco Island took place in single-family homes and condominiums. The rapid increase in property values was not in the area of the proposed CRA. The fact that Marco Island has experienced a greater decrease in commercial property values indicates how much the area is suffering because there was no speculation in the commercial market. Councilman Trotter mentioned the City of Marco Island is not at the point of drafting a Master Redevelopment Plan. He stated the discussions held by the Marco Island City Council focused on the steps necessary to form a CRA, and the "Finding of Necessity," and a financial analysis. He recommended the Council develop the Master Redevelopment Plan in order to determine how much will be needed by the CRA. He stated if the Council decided the Plan has no value, it will not do anything further. The structure is necessary in order to complete an analysis. It is a minimum step to give more information and to involve the community in its decisions. Commissioner Halas stated he was concerned that the rezoning of property on Marco Island and placing more density will impact the County when it comes to removing people from the Island in an emergency situation, such as an evacuation. His concern is for the impact on the roads of Collier County. Commissioner Coletta suggested one way to lessen density is by building workforce housing so workers live where they work. Councilman Waldack stated the County has total control of the CRAs. He stated every citizen of Marco Island and the City of Naples is a member of the County. 5 March 29, 2010 City Manger Thompson stated nothing in the Council's discussions of the CRA raised the issue of density - they have centered on the subject of redevelopment, which mayor may not happen. Florida has concurrency requirements and public improvements must take place at the same time as development. A developer is required to address the issues of roads, access, school, utilities, and transportation. He further stated when discussing other CRAs, there are specific requirements for the projects. The County has to maintain a balance so CRAs do not proliferate across the County. Chairman Coyle urged the City Council to be careful of the issue of concurrency. The Legislature is considering legislation to eliminate concurrency requirements for dense urban areas. Marco Island shares the same problem as the coastal corridor. If Marco Island increases its density, it will overload its roads and it has limited options to get citizens on/off the Island. There are no alternatives -. which can create difficult circumstances for residents and businesses. He noted the City of Naples has not increased density but has generated more traffic and the need for more parking garages in downtown Naples in order accommodate the shoppers from other areas of the County. The County compensated for the traffic by widening the roads available along the coastal corridor. Mr. Thompson stated Marco Island offers alternate modes of transportation around the island for its residents. County Attorney KIatzkow answered questions concerning the Sunshine Law restrictions by stating a Commissioner can discuss the CRA issue with a member of the Marco Island City Council - but not two Commissioners discussing the same topic at the same time and place with a Councilman. He noted a Resolution by the BCC would not be necessary. It will be necessary for the City of Marco Island to determine that the City either is a slum or blighted and to present adequate data analysis to support the determination. Commissioner Coletta asked if another CRA is put in place and draws down the money from the General Fund, are the citizens of Collier County who are not in a CRA required to make up the difference. Mr. Isackson explained a layer is added to the General Fund which impacts contribution. When a CRA is first established, the dollar values associated with it are not great as in a mature CRA. The dollars are thrown into the General Fund. Commissioner Coletta stated the BCC also works with future issues and does not want to saddle a future Board with an impossible tax situation. He asked when the money in the General Fund is drawn down, can emergency services be covered by a CRA? He noted there is a Countywide MSTU in place for beautification, and suggested examining other options to keep "the whole deck of cards from tumbling." Public Speakers: Bill McMullen stated he interviewed about half of the businesses located in the CRA and found the owners want more information in order to make a decision. The Bayshore/Gatewayand Immokalee areas are not parallel to Marco Island, which is 6 March 29,2010 not blighted or a slum, but is economically depressed. The concerns are centered around the impact on "the cap." He stated, "We are not looking to offset monies that would be raised in the CRA area, put those now on the burden of the taxpayer to make up the difference in revenue that would be locked in by virtue of the CRA." He reiterated the business owners want more information and discussion with the City Council bcfore any decision is made. Fay Biles, President, Marco Island Taxpayers Association, stated she has received comments from the residents who are concerned about taxes. There are several "big money" projects underway or planned and the Association is concerned about how those meet the cost of the projects. Another concern is the "tax increment financing." There are several shopping areas on Marco Island that will not be affected in thc same way. A "TlF" has not been proven to increase improvement one way or another. Another issue of concern is density, especially mixed use in the Town Center with commercial on one level and residential on the upper levels. On Marco Island, if there is commercial on the first level, the other levels have usually remained empty. She concluded by stating the residents are not in favor of going forward with the CRA at this time. Chairman Coyle stated the Marco Island City Council would hold additional meetings on the subject so members of the public will have an opportunity to provide input. He stated the preference of the Commissioners was for the City of Marco Island to set up and pay for their own MSTU. He stated if the efforts should fail, the BCC would work with the Marco Island City Council to help minimize the negative impact on the rest of Collier County, and the BCC would remain open to further discussions with the City Council. City Manager Thompson stated the City Council would develop further information, and look forward to working with the BCC in the study and development of potential alternatives to the CRA. Chairman Coyle noted thcre is a longer-term strategic issue ofconcem, i.e., when portions of an unincorporated County begin to become incorporated, much of the tax base is removed from the County while the expensive infrastructure remains. The County will suffer almost to the point of oblivion and the BCC must keep that issue in mind. If the communities of Collier County desire to continue to incorporate, there will be a substantial decline in the County's services and the people who will suffer are those who are the least fortunate. The BCC intends to keep working with all of the communities of Collier County to keep Collier County government and quality of life. It was mentioned the City of Marco Island has a cap on spending of no more than 3 percent. The Workshop concluded at 10:32 AM. 7 March 29, 2010 *** Chairman Coyle asked the members of the Board to remain in order to present an update concerning progress with the Economic Development Council regarding negotiations with Jackson Laboratories BREAK: 10:33 AM RECONVENE: 10:44 AM Chairman Coyle presented a status report: · He had been asked by the County Commissioners to take a leadership role with respect to economic diversification and has been working with the Economic Development Council ("EDC") for the past two years on the Jackson Lab project . Biomedical research and life sciences organizations have been identified by Collier County (in conjunction with the Chamber of Commerce, the EDC, and community business leaders) as the type of business that will help to diversify the economy o Provide high paying jobs o Nearly "recession proof' · Jackson Laboratories is a respected genetics research organization and has been in business for over SO years o Interested in creating an "Institute for Personalized Medicine" o Will devise an individual treatment protocol o Will collaborate with existing medical community · Collier County has encouraged Jackson Laboratories to consider locating its new facility locally · The facility will consist of research labs, a satellite university, commercial facilities, and facilities for the ancillary businesses that may also located here, i.e., medical clinics, and (possibility) a specialized hospital to provide care within the treatment protoco 1 to be developed · Money is an issue - the many legislators are in favor of trying to provide funding to bring Jackson Labs to Florida o If incentive funding is provided, Jackson Labs has indicated a preference to relocate to Collier County · Collier County has created a special zoning category .- "Economic Development Zoning" - that is a TIF program to permit a qualified company to create a revolving, self-financing incentive fund to attract other companies to the area · Land is available south of the town of Ave Maria o Has been designated, zoned and permitted o The property owner has been working with Jackson Labs to satisfy their req uirements · If funding is secured from the State, construction could begin during the summer · Jackson Labs will initially create approximately 200-400 jobs increasing into the thousands o Economic benefit to Collier County is estimated to be $SOOM by the tenth year of operation 8 March 29, 2010 Chairman Coyle stated the first issue is to obtain funding from Tallahassee. He further stated it was important to thank the legislators for their efforts and encourage their continuing support. It was suggested the BCC send a note of thanks to Senator Bennett who introduced the amendment to the Legislature's Ways and Means Committee. Chairman Coyle stressed while the facility will be located in Collier County, the entire state of Florida will benefit from an association with Jackson Laboratories. Commissioner Fiala thanked Chairman Coyle for his efforts. There being no further business for the good of the County, the Workshop concluded by order of the Chair at 11 :08 AM. COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS commissio~~~c~:e, ~~ ATJl):ST:',':~," OWIGH.T E:IJk~CK, CLERK ^..:~ <. ., .". '. n ~ ~ D~' :/' ~" '. , . These Minutes were "~ed by the Board/Committee on _--.1- ! z ~ 0 as presented ~~;:~ amended "__ 9