AGENDA CITY OF ORMOND BEACH, FLORIDA CITY COMMISSION AND COMMUNITY REDEVELOPMENT AGENCY MEETING Tuesday, January 3, :00 PM

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1 AGENDA CITY OF ORMOND BEACH, FLORIDA CITY COMMISSION AND COMMUNITY REDEVELOPMENT AGENCY MEETING Tuesday, January 3, :00 PM Mayor Ed Kelley Zone 1 Commissioner James Stowers Zone 3 Commissioner Rick Boehm Zone 2 Commissioner Troy Kent Zone 4 Commissioner Bill Partington 1. CALL TO ORDER CITY COMMISSION CHAMBERS 22 South Beach Street, Ormond Beach, Florida Phone: (386) Fax: (386) INVOCATION Rev. Neal J. Ganzel, Jr. Coquina Presbyterian Church in America 3. PLEDGE OF ALLEGIANCE 4. AUDIENCE REMARKS Regarding items not on the agenda. 5. APPROVAL OF MINUTES A. Minutes from the City Commission meeting December 13, COMMUNITY REDEVELOPMENT AGENCY A. RESOLUTION NO A RESOLUTION DESIGNATING CERTAIN LANDS TO BE A BROWNFIELD AREA, INCLUDING LANDS THAT ARE SITUATED INSIDE AND OUTSIDE THE CITY S COMMUNITY REDEVELOPMENT AREA; PROVIDING LEGISLATIVE FINDINGS; AUTHORIZING THE USE OF ECONOMIC AND TAX INCENTIVES TO FACLITATE AND PROMOTE THE REHABILITATION OF LANDS IN THE BROWNFIELD AREA; AUTHORIZING THE ESTABLISHMENT OF AN ADVISORY COMMITTEE; DIRECTING THE CITY CLERK TO NOTIFY THE FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION REGARDING THE BROWNFIELD AREA DESIGNATION; AND SETTING FORTH AN EFFECTIVE DATE. (Planning Director) 7. CONSENT AGENDA The action proposed is stated for each item on the Consent Agenda. Unless a City Commissioner removes an item from the City Commission & CRA Meeting January 3, 2012 Page 1 of 2

2 Consent Agenda, no discussion on individual items will occur and a single motion will approve all items. A. RESOLUTION NO A RESOLUTION APPOINTING A MEMBER TO SERVE ON THE CHARTER REVIEW COMMITTEE; SETTING FORTH TERMS AND CONDITIONS OF SERVICE; AND SETTING FORTH AN EFFECTIVE DATE. (City Clerk) 8. PUBLIC HEARINGS A. RESOLUTION NO A RESOLUTION DESIGNATING CERTAIN LANDS TO BE A BROWNFIELD AREA, INCLUDING LANDS THAT ARE SITUATED INSIDE AND OUTSIDE THE CITY S COMMUNITY REDEVELOPMENT AREA; PROVIDING LEGISLATIVE FINDINGS; AUTHORIZING THE USE OF ECONOMIC AND TAX INCENTIVES TO FACLITATE AND PROMOTE THE REHABILITATION OF LANDS IN THE BROWNFIELD AREA; AUTHORIZING THE ESTABLISHMENT OF AN ADVISORY COMMITTEE; DIRECTING THE CITY CLERK TO NOTIFY THE FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION REGARDING THE BROWNFIELD AREA DESIGNATION; AND SETTING FORTH AN EFFECTIVE DATE. (Planning Director) 9. FIRST READING OF ORDINANCES A. ORDINANCE NO AN ORDINANCE AMENDING CHAPTER 2, ADMINISTRATION, ARTICLE VI, BOARDS, COMMISSIONS, COMMITTEES AND OTHER AGENCIES, DIVISION 2, ENUMERATED, OF THE CODE OF ORDINANCES, BY ADDING A NEW SECTION TO BE NUMBERED AND ENTITLED SECTION 2-229, BROWNFIELD ADVISORY BOARD; CREATING A BROWNFIELD ADVISORY BOARD; ESTABLISHING TERMS AND CONDITIONS OF MEMBERSHIP; ESTABLISHING POWERS AND DUTIES; AND SETTING FORTH AN EFFECTIVE DATE. (City Attorney) 10. REPORTS, SUGGESTIONS, REQUESTS (Mayor, City Commission, City Manager, City Attorney) 11. ADJOURNMENT Website Address NOTICE Pursuant to Section of the Florida Statutes, if any person decides to appeal any decision made by the City Commission with respect to any matter considered at this public meeting, such person will need a record of the proceedings and for such purpose, such person may need to ensure that a verbatim record of the proceedings is made, including the testimony and evidence upon which the appeal is to be based. For special accommodations, please notify the City Clerk s Office at least 72 hours in advance. Phone: (386) Help for the hearing impaired is available through the Assistive Listening System. Receivers can be obtained from the City Clerk s Office. In accordance with the Americans with Disabilities Act (ADA), persons with a disability, such as a vision, hearing or speech impairment, or persons needing other types of assistance, and who wish to attend City Commission meetings or any other board or committee meeting may contact the City Clerk s Office in writing, or may call (386) for information regarding available aids and services. City Commission & CRA Meeting January 3, 2012 Page 2 of 2

3 MINUTES ORMOND BEACH CITY COMMISSION HELD AT CITY HALL COMMISSION CHAMBERS December 13, :00 p.m. Present were: Mayor Ed Kelley, Commissioners James Stowers, Troy Kent, Rick Boehm and Bill Partington, City Manager Joyce Shanahan, Assistant City Manager Ted MacLeod, City Attorney Randy Hayes, and City Clerk Joshua Fruecht. 1. CALL TO ORDER 2. INVOCATION 3. PLEDGE OF ALLEGIANCE A G E N D A 4. AUDIENCE REMARKS Regarding items not on the agenda. 5. APPROVAL OF MINUTES A. Minutes from the City Commission meeting December 1, CONSENT AGENDA The action proposed is stated for each item on the Consent Agenda. Unless a City Commissioner removes an item from the Consent Agenda, no discussion on individual items will occur and a single motion will approve all items. A. RESOLUTION NO A RESOLUTION AUTHORIZING A TIME EXTENSION AND ACCEPTING A LETTER FROM THE FLORIDA DEPARTMENT OF TRANSPORTATION REGARDING THE SR40 TRAFFIC SIGNAL FIBER OPTIC CABLE INTERCONNECTION; AND SETTING FORTH AN EFFECTIVE DATE. (City Engineer) B. RESOLUTION NO A RESOLUTION AUTHORIZING EXECUTION OF A COMMUNITY DEVELOPMENT BLOCK GRANT SUBRECIPIENT AGREEMENT FOR FISCAL YEAR BETWEEN THE CITY AND THE COUNTY OF VOLUSIA; AND SETTING FORTH AN EFFECTIVE DATE. (Finance Director) C. RESOLUTION NO A RESOLUTION ACCEPTING THE PROPOSAL OF D & A BUILDING SERVICES, INC., REGARDING PROFESSIONAL JANITORIAL SERVICES; AUTHORIZING THE EXECUTION OF AN AGREEMENT AND PAYMENT THEREFOR; REJECTING ALL OTHER PROPOSALS; AND SETTING FORTH AN EFFECTIVE DATE. (Leisure Services Director) D. RESOLUTION NO A RESOLUTION AUTHORIZING THE EXECUTION OF A LEASE AGREEMENT BETWEEN THE CITY AND HALIFAX URBAN MINISTRIES, INC., FOR THE OLD HOUSING AUTHORITY BUILDING LOCATED AT 164 WEST GRANADA BOULEVARD; AND SETTING FORTH AN EFFECTIVE DATE. (City Clerk) E. RESOLUTION NO A RESOLUTION ACCEPTING A BID FROM MASCI CORPORATION FOR CONSTRUCTION SERVICES REGARDING THE AIRPORT

4 Minutes City Commission Meeting December 13, 2011 ROAD FORCEMAIN AND RECLAIMED WATERMAIN IMPROVEMENTS PROJECT, UNDER BID NO ; AUTHORIZING THE EXECUTION OF A CONTRACT AND PAYMENT THEREFOR; REJECTING ALL OTHER BIDS; AND SETTING FORTH AN EFFECTIVE DATE. (City Engineer) F. RESOLUTION NO A RESOLUTION AUTHORIZING THE EXECUTION OF A RELEASE OF TWO SPECIAL MASTER ADMINISTRATIVE FINE/LIENS FOR CODE VIOLATIONS ON PROPERTY LOCATED AT 883 VILLAGE DRIVE, ORMOND BEACH, VOLUSIA COUNTY, FLORIDA (PARCEL ID NO ); AND SETTING FORTH AN EFFECTIVE DATE. (City Clerk) G. RESOLUTION NO A RESOLUTION PURSUANT TO SECTION 14-98, LIENS, OF THE CITY OF ORMOND BEACH CODE OF ORDINANCES AUTHORIZING THE IMPOSITION OF A LIEN AGAINST THE REAL PROPERTY OWNED BY RAYMOND P. BAXTER, LOCATED AT 799 EAST RIVER OAK DRIVE, ORMOND BEACH, VOLUSIA COUNTY, FLORIDA (PARCEL ID NO ) FOR COSTS INCURRED BY THE CITY TO TERMINATE OR ABATE A SITE MAINTENANCE VIOLATION; AND SETTING FORTH AN EFFECTIVE DATE. (Neighborhood Improvement Manager) H. RESOLUTION NO A RESOLUTION PURSUANT TO SECTION 14-98, LIENS, OF THE CITY OF ORMOND BEACH CODE OF ORDINANCES AUTHORIZING THE IMPOSITION OF A LIEN AGAINST THE REAL PROPERTY OWNED BY BRANDON G. BUSBEE, LOCATED AT 749 SOUTH ATLANTIC AVENUE, ORMOND BEACH, VOLUSIA COUNTY, FLORIDA (PARCEL ID NO ) FOR COSTS INCURRED BY THE CITY TO TERMINATE OR ABATE A SITE MAINTENANCE VIOLATION; AND SETTING FORTH AN EFFECTIVE DATE. (Neighborhood Improvement Manager) I. RESOLUTION NO A RESOLUTION PURSUANT TO SECTION 14-98, LIENS, OF THE CITY OF ORMOND BEACH CODE OF ORDINANCES AUTHORIZING THE IMPOSITION OF A LIEN AGAINST THE REAL PROPERTY OWNED BY DUDA FD ORMOND, LLC, LOCATED AT 274 WEST GRANADA BOULEVARD, ORMOND BEACH, VOLUSIA COUNTY, FLORIDA (PARCEL ID NO ) FOR COSTS INCURRED BY THE CITY TO TERMINATE OR ABATE A SITE MAINTENANCE VIOLATION; AND SETTING FORTH AN EFFECTIVE DATE. (Neighborhood Improvement Manager) J. RESOLUTION NO A RESOLUTION PURSUANT TO SECTION 14-98, LIENS, OF THE CITY OF ORMOND BEACH CODE OF ORDINANCES AUTHORIZING THE IMPOSITION OF A LIEN AGAINST THE REAL PROPERTY OWNED BY JOHN L. LILLY, SR., LOCATED AT 204 NORTH RIDGEWOOD AVENUE, ORMOND BEACH, VOLUSIA COUNTY, (PARCEL ID NO ), FOR COSTS INCURRED BY THE CITY TO TERMINATE OR ABATE A SITE MAINTENANCE VIOLATION; AND SETTING FORTH AN EFFECTIVE DATE. (Neighborhood Improvement Manager) K. RESOLUTION NO A RESOLUTION PURSUANT TO SECTION 14-98, LIENS, OF THE CITY OF ORMOND BEACH CODE OF ORDINANCES AUTHORIZING THE IMPOSITION OF A LIEN AGAINST THE REAL PROPERTY OWNED BY CRAIG J.

5 Minutes City Commission Meeting December 13, 2011 RADTKE AND JAIME R. RADTKE, LOCATED AT 5 CARRIAGE CREEK WAY, ORMOND BEACH, VOLUSIA COUNTY, FLORIDA (PARCEL ID NO ) FOR COSTS INCURRED BY THE CITY TO TERMINATE OR ABATE A SITE MAINTENANCE VIOLATION; AND SETTING FORTH AN EFFECTIVE DATE. (Neighborhood Improvement Manager) L. RESOLUTION NO A RESOLUTION PURSUANT TO SECTION 14-98, LIENS, OF THE CITY OF ORMOND BEACH CODE OF ORDINANCES AUTHORIZING THE IMPOSITION OF A LIEN AGAINST THE REAL PROPERTY OWNED BY JOYCE ZUNIGA, LOCATED AT 3 PINE HOLLOW WAY, ORMOND BEACH, VOLUSIA COUNTY, FLORIDA (PARCEL ID NO ) FOR COSTS INCURRED BY THE CITY TO TERMINATE OR ABATE A SITE MAINTENANCE VIOLATION; AND SETTING FORTH AN EFFECTIVE DATE. (Neighborhood Improvement Manager) M. RESOLUTION NO A RESOLUTION AUTHORIZING THE EXECUTION OF A SETTLEMENT AGREEMENT BETWEEN THE CITY AND BETTY J. DULMAGE AND JAMES G. DULMAGE; AND SETTING FORTH AN EFFECTIVE DATE. (City Attorney) N. RESOLUTION NO A RESOLUTION APPROVING A SETTLEMENT PROPOSAL REGARDING THE WORKERS COMPENSATION CLAIM OF MICHAEL ROBERTS; AUTHORIZING THE EXECUTION OF A SETTLEMENT AGREEMENT AND ANY AND ALL DOCUMENTS INCIDENTAL THERETO; AUTHORIZING PAYMENT RELATIVE THERETO; AND SETTING FORTH AN EFFECTIVE DATE. (City Attorney) O. RESOLUTION NO A RESOLUTION OF THE CITY OF ORMOND BEACH ENDORSING THE CITY S STRATEGIC ECONOMIC DEVELOPMENT PLAN (SEDP); AND SETTING FORTH AN EFFECTIVE DATE. (Economic Development Director) P. RESOLUTION NO A RESOLUTION AUTHORIZING THE EXECUTION OF A PROFESSIONAL SERVICES AGREEMENT WITH QUENTIN L. HAMPTON ASSOCIATES, INC. TO PROVIDE CONSTRUCTION ADMINISTRATION, CONSTRUCTION INSPECTION AND SRF LOAN/SJRWMD GRANT ADMINISTRATION SERVICES REGARDING THE AIRPORT ROAD FORCEMAIN AND RECLAIMED WATERMAIN IMPROVEMENTS PROJECT; AND SETTING FORTH AN EFFECTIVE DATE. (City Engineer) Q. Auto renew Contract for Traffic Control Agreement (Finance Director) DISPOSITION: Approve as recommended in City Manager memorandum dated December 8, R. Riverside Drive Closure Request for Saturday, December 31, 2011 (Police Chief) DISPOSITION: Approve as recommended in City Manager memorandum dated December 8, S. Bid Specifications for Hand Avenue Collector Road Upgrade, Bid No (City Engineer)

6 Minutes City Commission Meeting December 13, 2011 DISPOSITION: Approve as recommended in City Manager memorandum dated December 8, T. Construction Management at Risk Services, RFQ No (City Engineer) DISPOSITION: Approve as recommended in City Manager memorandum dated December 8, SECOND READING OF ORDINANCES A. ORDINANCE NO AN ORDINANCE AMENDING THE BOUNDARIES OF CITY COMMISSION ZONES IN ACCORDANCE WITH THE REAPPORTIONMENT PLAN ACCEPTED BY RESOLUTION ; DESCRIBING THE REAPPORTIONMENT BOUNDARIES; REPEALING ALL INCONSISTENT ORDINANCES OR PARTS THEREOF; AND SETTING FORTH AN EFFECTIVE DATE. (Planning Director) B. ORDINANCE NO AN ORDINANCE AMENDING CHAPTER 2, ADMINISTRATION, ARTICLE VII, CODE ENFORCEMENT, OF THE CODE OF ORDINANCES, BY AMENDING SECTIONS 2-251, DEFINITIONS; 2-254, SPECIAL MASTERS; 2-255, ENFORCEMENT PROCEDURE; 2-256, NOTICE OF VIOLATIONS; FORM AND CONTENT OF CITATIONS; 2-257, CONDUCT OF HEARING; 2-258, ADMINISTRATIVE FINES AND LIENS; 2-262, SCHEDULE OF CIVIL FINES; 2-265, NOTICES; 2-266, APPEALS; AND 2-267, DURATION OF LIEN; REPEALING ALL INCONSISTENT ORDINANCES OR PARTS THEREOF; PROVIDING SEVERABILITY; AND SETTING FORTH AN EFFECTIVE DATE. (Neighborhood Improvement Manager) C. ORDINANCE NO AN ORDINANCE AMENDING CHAPTER 14, OFFENSES MISCELLANEOUS, ARTICLE VIII, SITE MAINTENANCE/NUISANCES, OF THE CODE OF ORDINANCES, BY AMENDING SECTION 14-98, LIENS; REPEALING ALL INCONSISTENT ORDINANCES OR PARTS THEREOF; PROVIDING SEVERABILITY; AND SETTING FORTH AN EFFECTIVE DATE. (Neighborhood Improvement Manager) D. ORDINANCE NO AN ORDINANCE AMENDING SECTION , NUISANCE AIRCRAFT, OF ARTICLE III, AIRCRAFT GROUND OPERATIONS, OF CHAPTER 3.3, AIRCRAFT AND AIRPORT; AMENDING SECTION , NON- AIRWORTHY AIRCRAFT, OF ARTICLE IV, COMMERCIAL OPERATIONS, OF CHAPTER 3.3, AIRCRAFT AND AIRPORT; OF THE CODE OF ORDINANCES OF THE CITY OF ORMOND BEACH, FLORIDA; REPEALING ALL INCONSISTENT ORDINANCES OR PARTS THEREOF; PROVIDING SEVERABILITY; AND SETTING FORTH AN EFFECTIVE DATE. (Economic Development Director) 8. FIRST READING OF ORDINANCES A. ORDINANCE NO AN ORDINANCE ADOPTING CERTAIN UPDATED SCHEDULES TO THE CAPITAL IMPROVEMENTS ELEMENT OF THE CITY OF ORMOND BEACH COMPREHENSIVE PLAN; PROVIDING WHEN SUCH UPDATES

7 Minutes City Commission Meeting December 13, 2011 SHALL TAKE EFFECT; REPEALING ALL INCONSISTENT ORDINANCES OR PARTS THEREOF; AND SETTING FORTH AN EFFECTIVE DATE. (Planning Director) 9. RESOLUTIONS A. RESOLUTION NO A RESOLUTION APPOINTING MEMBERS TO SERVE ON THE CHARTER REVIEW COMMITTEE; SETTING FORTH TERMS AND CONDITIONS OF SERVICE; AND SETTING FORTH AN EFFECTIVE DATE. (City Clerk) B. RESOLUTION NO A RESOLUTION AMENDING THE DATES AND TIMES FOR THE HOLDING OF REGULAR MEETINGS OF THE CITY COMMISSION OF THE CITY OF ORMOND BEACH, FLORIDA, FOR THE MONTHS OF JANUARY AND MARCH 2012; PROVIDING FOR AN EXCEPTION THERETO; SETTING FORTH AN EFFECTIVE DATE. (City Clerk) C. RESOLUTION NO A RESOLUTION SUPPORTING POLICE OFFICER AND FIREFIGHTER PENSION PLAN AND DISABILITY PRESUMPTION REFORMS TO MAKE THE PLANS SUSTAINABLE, SOUND AND SECURE FOR CURRENT AND FUTURE POLICE OFFICERS AND FIREFIGHTERS; AND SETTING FORTH AN EFFECTIVE DATE. (Finance Director) 10. DISCUSSION ITEMS A. Plantation Oaks Residential Planned Unit Development (Planning Director) 11. REPORTS, SUGGESTIONS, REQUESTS (Mayor, City Commission, City Manager, City Attorney) 12. ADJOURNMENT Item #1 Meeting Call to Order Mayor Kelley called the meeting to order at 7:00 p.m. Item #2 Invocation Pastor James Davis of Strong Tower Christian Fellowship gave the invocation. Item #3 Pledge of Allegiance Mayor Kelley led the Pledge of Allegiance. Item #4 Audience Remarks Mayor Kelley stated he had quite a few Audience Remarks cards from those wanting to comment on Discussion Item #10A. He stated the Commission had adopted a rule regarding comments on Discussion Items whereby the public would be allowed to speak on a Discussion Item if the Commission took a vote on the issue. He stated that a decision may or may not be made tonight on Discussion Item #10A, but he would allow the individuals that had filled out cards to speak for the three-minute time limit.

8 Minutes City Commission Meeting December 13, 2011 Mr. Joe Lipscomb, 22 Shadow Creek Way, currently serving as a Public Works Advisory Board member, wanted to thank the City for the beautiful poinsettia he received this and in past years. He wished the Commission a Merry Christmas and a prosperous New Year. Mayor Kelley thanked Mr. Lipscomb for his service and noted he was one of the first environmental engineers and was very active in the City on various boards. Item #5 Approval of the Minutes Mayor Kelley advised the minutes of the December 1, 2011, regular meeting had been sent to the Commission for review, and were on the City s website for public review. He asked for any corrections, additions, or omissions. He stated hearing no corrections the minutes would stand approved as presented. Item #6 - Consent Agenda Mayor Kelley advised the action proposed for each item on the Consent Agenda was so stated on the agenda. He asked if any member of the Commission had questions or wished to discuss any item separately. Staff recommended Items #6G, #6H and #6J be pulled because the liens had been satisfied. Mayor Kelley requested Item #6C be pulled for comment. Commissioner Kent moved, seconded by Commissioner Boehm, for approval of the Consent Agenda, minus Items #6C, #6G, #6H, and #6J. Call Vote: Commissioner Stowers Yes Commissioner Kent Yes Commissioner Boehm Yes Commissioner Partington Yes Carried. Mayor Kelley Yes Item #6C Professional Janitorial Services City Clerk Joshua Fruecht read by title only: RESOLUTION NO A RESOLUTION ACCEPTING THE PROPOSAL OF D & A BUILDING SERVICES, INC., REGARDING PROFESSIONAL JANITORIAL SERVICES; AUTHORIZING THE EXECUTION OF AN AGREEMENT AND PAYMENT THEREFOR; REJECTING ALL OTHER PROPOSALS; AND SETTING FORTH AN EFFECTIVE DATE. Commissioner Partington moved, seconded by Commissioner Boehm, to approve Resolution No , as read by title only. Mayor Kelley stated there was a bid difference of $82,000. He stated that he realized it was a subjective situation, but asked about a bidder that bid $0.87 for service for the Cassen Park

9 Minutes City Commission Meeting December 13, 2011 restrooms. He noted they received the highest calculation score from the committee, but there was also a low rating of 34 points which needed clarification. Mr. Robert Carolin, Leisure Services Director, stated that there were three on the committee who reviewed the price as a positive, but two of the committee members felt that they could not perform the service for that quoted price; therefore, they rated them at a low scale for the low price. Mayor Kelley stated he accepted why they rated the company that way, but did not think it was right. He stated it was difficult to tell what someone s intent was. Ms. Shanahan stated that was not the only reason the bid was not accepted, as there were reference issues as well. Mr. Carolin stated reference calls were made and it was found that they were in a contract for 45 days and were issued a letter that the contract was not complied with. Mayor Kelley stated the City had been losing too many engineering contracts to Seminole County. Mr. Carolin also stated the lowest bidder had 20 employees and did not have adequate equipment as opposed to the proposed bidder that had approximately 700 employees with more than enough equipment and supplies for this type of contract. He stated that the goal was to increase the level of service for the dollars. He stated last year s contract was around $209,000 with $60,000 cut from the year before, but some of what was cut was added back into the contract. Mayor Kelley understood that the City did not want to enter into a contract with someone that would not be able to fulfill the obligation. Call Vote: Commissioner Boehm Yes Commissioner Partington Yes Commissioner Stowers Yes Commissioner Kent Yes Carried. Mayor Kelley Yes Item #7A Boundaries of City Commission Zones City Clerk Joshua Fruecht read by title only: ORDINANCE NO AN ORDINANCE AMENDING THE BOUNDARIES OF CITY COMMISSION ZONES IN ACCORDANCE WITH THE REAPPORTIONMENT PLAN ACCEPTED BY RESOLUTION ; DESCRIBING THE REAPPORTIONMENT BOUNDARIES; REPEALING ALL INCONSISTENT ORDINANCES OR PARTS THEREOF; AND SETTING FORTH AN EFFECTIVE DATE. Commissioner Boehm moved, seconded by Commissioner Stowers, for approval of Ordinance No , on second reading, as ready by title only.

10 Minutes City Commission Meeting December 13, 2011 Call Vote: Commissioner Partington Yes Commissioner Stowers Yes Commissioner Kent Yes Commissioner Boehm Yes Carried. Mayor Kelley Yes Item #7B Amending Notice of Violations City Clerk Joshua Fruecht read by title only: ORDINANCE NO AN ORDINANCE AMENDING CHAPTER 2, ADMINISTRATION, ARTICLE VII, CODE ENFORCEMENT, OF THE CODE OF ORDINANCES, BY AMENDING SECTIONS 2-251, DEFINITIONS; 2-254, SPECIAL MASTERS; 2-255, ENFORCEMENT PROCEDURE; 2-256, NOTICE OF VIOLATIONS; FORM AND CONTENT OF CITATIONS; 2-257, CONDUCT OF HEARING; 2-258, ADMINISTRATIVE FINES AND LIENS; 2-262, SCHEDULE OF CIVIL FINES; 2-265, NOTICES; 2-266, APPEALS; AND 2-267, DURATION OF LIEN; REPEALING ALL INCONSISTENT ORDINANCES OR PARTS THEREOF; PROVIDING SEVERABILITY; AND SETTING FORTH AN EFFECTIVE DATE. Commissioner Boehm moved, seconded by Commissioner Stowers, for approval of Ordinance No , on second reading, as read by title only. Call Vote: Commissioner Stowers Yes Commissioner Kent Yes Commissioner Boehm Yes Commissioner Partington Yes Carried. Mayor Kelley Yes Item #7C Amending Site Maintenance/Nuisances Ordinances City Clerk Joshua Fruecht read by title only: ORDINANCE NO AN ORDINANCE AMENDING CHAPTER 14, OFFENSES MISCELLANEOUS, ARTICLE VIII, SITE MAINTENANCE/NUISANCES, OF THE CODE OF ORDINANCES, BY AMENDING SECTION 14-98, LIENS; REPEALING ALL INCONSISTENT ORDINANCES OR PARTS THEREOF; PROVIDING SEVERABILITY; AND SETTING FORTH AN EFFECTIVE DATE. Commissioner Partington moved, seconded by Commissioner Stowers, for approval of Ordinance No , on second reading, as read by title only. Call Vote: Commissioner Kent Yes Commissioner Boehm Yes Commissioner Partington Yes Commissioner Stowers Yes Carried. Mayor Kelley Yes

11 Minutes City Commission Meeting December 13, 2011 Item #7D Amending Nuisance Aircraft Ordinances City Clerk Joshua Fruecht read by title only: ORDINANCE NO AN ORDINANCE AMENDING SECTION , NUISANCE AIRCRAFT, OF ARTICLE III, AIRCRAFT GROUND OPERATIONS, OF CHAPTER 3.3, AIRCRAFT AND AIRPORT; AMENDING SECTION , NON-AIRWORTHY AIRCRAFT, OF ARTICLE IV, COMMERCIAL OPERATIONS, OF CHAPTER 3.3, AIRCRAFT AND AIRPORT; OF THE CODE OF ORDINANCES OF THE CITY OF ORMOND BEACH, FLORIDA; REPEALING ALL INCONSISTENT ORDINANCES OR PARTS THEREOF; PROVIDING SEVERABILITY; AND SETTING FORTH AN EFFECTIVE DATE. Commissioner Kent moved, seconded by Commissioner Partington, for approval of Ordinance No , on second reading, as read by title only. Call Vote: Commissioner Boehm Yes Commissioner Partington Yes Commissioner Stowers Yes Commissioner Kent Yes Carried. Mayor Kelley Yes Item #8A Updated Schedules to the Capital Improvements Element City Clerk Joshua Fruecht read by title only: ORDINANCE NO AN ORDINANCE ADOPTING CERTAIN UPDATED SCHEDULES TO THE CAPITAL IMPROVEMENTS ELEMENT OF THE CITY OF ORMOND BEACH COMPREHENSIVE PLAN; PROVIDING WHEN SUCH UPDATES SHALL TAKE EFFECT; REPEALING ALL INCONSISTENT ORDINANCES OR PARTS THEREOF; AND SETTING FORTH AN EFFECTIVE DATE Commissioner Partington moved, seconded by Commissioner Stowers, for approval of Ordinance No , on first reading, as read by title only. Call Vote: Commissioner Partington Yes Commissioner Stowers Yes Commissioner Kent Yes Commissioner Boehm Yes Carried. Mayor Kelley Yes Item #9A Charter Review Committee Members City Clerk Joshua Fruecht read by title only: RESOLUTION NO

12 Minutes City Commission Meeting December 13, 2011 A RESOLUTION APPOINTING MEMBERS TO SERVE ON THE CHARTER REVIEW COMMITTEE; SETTING FORTH TERMS AND CONDITIONS OF SERVICE; AND SETTING FORTH AN EFFECTIVE DATE. Commissioner Kent read the names of the Charter Review Committee members into the record: Peter B. Heebner, Norman Lane, Mike Scudiero, Doug Thomas and William Partington. Commissioner Boehm moved, seconded by Commissioner Kent, for approval of Resolution No , as read by title only. Mayor Kelley stated Volusia County reviewed their Charter every ten (10) years and there may be some administrative items that the Charter Review Committee could review within 90 days. Call Vote: Commissioner Stowers Yes Commissioner Kent Yes Commissioner Boehm Yes Commissioner Partington Yes Carried. Mayor Kelley Yes Item #9B Amending Dates and Times for 2012 City Commission Meetings City Clerk Joshua Fruecht read by title only: RESOLUTION NO A RESOLUTION AMENDING THE DATES AND TIMES FOR THE HOLDING OF REGULAR MEETINGS OF THE CITY COMMISSION OF THE CITY OF ORMOND BEACH, FLORIDA, FOR THE MONTHS OF JANUARY AND MARCH 2012; PROVIDING FOR AN EXCEPTION THERETO; SETTING FORTH AN EFFECTIVE DATE. Commissioner Kent moved, seconded by Commissioner Boehm, for approval of Resolution No , as read by title only. Call Vote: Commissioner Kent Yes Commissioner Boehm Yes Commissioner Partington Yes Commissioner Stowers Yes Carried. Mayor Kelley Yes Item #9C Support of Police Officer and Firefighter Pension Plans City Clerk Joshua Fruecht read by title only: RESOLUTION NO A RESOLUTION SUPPORTING POLICE OFFICER AND FIREFIGHTER PENSION PLAN AND DISABILITY PRESUMPTION REFORMS TO MAKE THE PLANS SUSTAINABLE, SOUND AND SECURE FOR CURRENT AND FUTURE POLICE OFFICERS AND FIREFIGHTERS; AND SETTING FORTH AN EFFECTIVE DATE.

13 Minutes City Commission Meeting December 13, 2011 Commissioner Partington moved, seconded by Commissioner Kent, for approval of Resolution No , as read by title only. Mayor Kelley stated this reform advised the State that the City had concerns about the pension plans. He stated the pension plans from 2008 to 2010 had the City paying out a significant amount of money. He stated in 2008 there was an investment earnings loss for the General Employees Pension Fund of $4,810,000; for the Police Officers Pension Fund a loss of $3,458,000; and for the Firefighters Pension Fund a loss of $2,430,000. He stated that in 2010, the General Employees Fund earned $2,186,000 and $2,289,000 was paid out, with the City contributing $1 million to the fund. He stated the Police Officers Pension Fund earned $1,500,000 but paid out $1,946,000 and the City contributed $632,000. He stated the Firefighters Pension Fund earned $1,170,000 and $1,669,000 was paid out. He questioned how long the City could continue to payout more than what the fund was earning. He stated the letter was asking the State to allow the City some negotiation assistance instead of telling the City what had to be paid, as he stated he wanted that decision left to the local communities. Call Vote: Commissioner Boehm Yes Commissioner Partington Yes Commissioner Stowers Yes Commissioner Kent Yes Carried. Mayor Kelley Yes Discussion Item #10A Plantation Oaks Residential Planned Unit Development Mayor Kelley stated that there were quite a few Audience Remarks cards for this item and he asked Planning Director Ric Goss to give an updated overview on the project. He noted the Commission had quite a bit of information dating back to Mr. Goss stated this item was placed on the agenda when the County asked for comments on the amendment to the Residential Planned Unit Development for Plantation Oaks. He stated the County met earlier with a 4-2 vote to move this item to the County Council on Thursday. He stated there was a lot of discussion and information given at that meeting by the applicant. He stated that two members of the Planning Board had differences with the mobile home locational, but most of the members thought it was a good amendment. He stated that Thursday s County Council meeting would not be the last discussion date or date of action. He stated that a Notice of Proposed Change to the National Gardens DRI was still needed to be filed, which took about six (6) months, so there would be other opportunities to act on this amendment by the residents and City, as there were other required things that would have to be done. Mr. Goss stated staff had a question about the mobile home locational and those located in areas developed dominantly as mobile homes or in areas already planned for mobile homes at some time in the future. He stated that the staff report showed the mobile homes looking like stick built homes with design standards. He stated that the County Planning Board recommended a few additional conditions, such as adding garages (no carports), adding porches, skirting, which was already a requirement in mobile home districts, and a set process to review site plans to insure design standards were met. He stated that in order for this to be consistent with the Comprehensive Plan, a Notice of Proposed Change with the National

14 Minutes City Commission Meeting December 13, 2011 Gardens DRI should be filed within 60 days of the action. He noted another requirement was to build a hardening club house that could shelter the residents during a major storm. Mr. Goss stated the City had not made a determination if this plan was consistent, since it was not in the City limits or the water and sewer district. He noted that when the files were reviewed in 2002, it was clear that the City would not provide water and sewer if it were a mobile home park, which would be provided by Volusia County utilities. He stated the concept in 2002 of a mobile home park was an issue, and the Council at that time would not have approved it, which was why stick built housing was required. He stated that some of the County Planning Board members voted no because the County Council never meant for the area to be for mobile homes. He stated that it may come down to the interpretation of their Comprehensive Plan and its policies. He stated he was not in a position to recommend to the Commission what to do, but needed guidance on how to comment back to the County, if the Commission wanted to comment. Commissioner Boehm asked about the proposed recommended amendments to the original proposal by the committee; whereby, Mr. Goss stated in 2002 the applicant requested manufactued homes, which was changed to stick built homes. He stated the current zoning amendment was to allow mobile homes, single-family detached, and zero lot line villas. Commissioner Boehm commented that what was initially brought to the Commission had recently been changed and a quick recommendation was requested by the County, although it would come before the Commission later. Mr. Goss stated the City was an affected party under the Notice of Proposed Change, so Thursday was not the last time for input. He stated that Growth Management Director Kelly McGee indicated they wanted the units to be more like stick built housing. He stated that a development in Port Orange, Crane Lakes, was similar but had an older look to it. He stated that they also had homes that looked like mobile homes with a carport. He stated that in Plantation Oaks they wanted to camouflage the mobile home according to the amendments and stick built homes. Ms. Shanahan stated this item was brought to the Commission because the County asked the City for their position. Mayor Kelley asked what would be presented to the County at the Thursday meeting; whereby, Mr. Goss stated it was a zoning amendment to state that you could have single-family detached or zero lot line type villas, and they proposed adding mobile homes. He stated that the zoning definition for the County for mobile homes was different than modular or manufactured housing. Commissioner Kent asked for a definition of a mobile home and a manufactured home; whereby, Mr. Goss stated a mobile home would be transportable on wheels, skirting applied, could be tied down, and brought in one or two pieces. He stated a manufactured/modular home or home pieces were fabricated and were put together as units. Mayor Kelley asked whether a manufactured home and a mobile home would be almost identical; whereby, Mr. Goss answered yes, but the modular homes did not have decals. He noted there were mobile homes in Bear Creek and Aberdeen.

15 Minutes City Commission Meeting December 13, 2011 Commissioner Partington asked why a comment was needed from Ormond Beach when the City was not providing water or sewer and the property was in the County; whereby, Mr. Goss stated the City was an adjacent party to the property and would always be noticed on concerning issues. He stated after reading all the information from 2002, staff wanted to hear from the Commission and noted the City had the same issue with Aberdeen. Commissioner Partington asked what the impact would be for the City with 1,577 units; whereby, Mr. Goss stated it did not affect the traffic study because it was the same amount of units and there were adequate natural landscaping buffers along the Interstate and Old Dixie Highway. He stated that only 60% of the project was developed for residential, and the rest was for recreational open space, a golf course, conservation area, and part of the road. He stated he did not see any impact on the City with regards to services, but was unsure of the impact to the Loop. He noted back in 2002 there was a concern about the evacuation route, but the code for home building was different, which should now be able to withstand weather conditions. He stated in 2002, the Commission was concerned about the compatibility and the vision on the US1 corridor. Mayor Kelley stated he recently met with Port Orange City Manager Ken Parker and asked how they dealt with the Crane Lakes situation. He asked whether the City had any control on what could be put on that property or if the City s intent was to comment on whether to give the go ahead. Mr. Goss stated the Commission had a right to do whatever it wanted to, once they had all the information and had heard from the residents. He stated that if the City did not approve of the project, it was within their right to comment on why it did not meet the County s Comp Plan. He stated the layouts were about 6,500 square feet each and the gross density was less than Halifax Plantation. He stated the issue was whether you believed a mobile home equaled a stick built home or whether the County interpreted the mobile home policy with regard to location. He stated that some may interpret that the policy says the area was not dominated by mobile homes, and the other part stated that the area had to be undeveloped and was planned for mobile homes in the future. He stated in 2002 the Council did not plan for mobile homes, and approved it as a stick built. He noted someone could mitigate when the City s Comp Plan says no making it more compatible. Mr. Parker Mynchenberg, 1729 Ridgewood Avenue, the project developer, stated Plantation Oaks was initially conceived and designed to be a manufactured home community. He noted there was a similar project he and his partner developed in Flagler called Plantation Oaks of Flagler. He stated in 2002 at the third Public Hearing with the County, stick built could be approved, but manufactured housing could not be approved. He stated the project moved forward with single family homes, sewer and drainage, the road, golf course, and neighborhood commercial, until the change in market economy. He commented on the deteriorating conditions of the US1 corridor. He stated there was not a need for stick built housing, so they decided to go back to their original plan of manufactured homes, as a retirement community for 55 and older. He stated he was coming to the Commission and County for approval so that the project could move forward. He stated that the zoning allow 50 x 100 lots, but the project provided for 65 x 110 lot size minimum for the 1,577 units. He stated that the design was complete, permitted by the St. Johns River Water Management District (SJWMD), and the first 600 units had been permitted. He stated that the layout would not change and the only request was for the additional housing type.

16 Minutes City Commission Meeting December 13, 2011 Commissioner Boehm asked whether the amendments were agreeable; whereby, Mr. Mynchenberg stated they had been speaking to the County for the past six months and were agreeable to the amendments. Mayor Kelley stated there would be adequate time to speak before the County and the City regarding this issue. Mr. Norman Lane, 1314 Northside Drive, stated more people would be present to comment if they were aware of the issue being discussed. He stated the City was affected, as people cared about the Loop, and asked the Commission to advise the County to stop the project. He stated it was worked out ten years ago, as the road would bring a lot of traffic to the Loop and more construction than was needed or necessary. Ms. Christa Schraut, 3414 Rexford Circle, stated she spoke to a lot of her neighbors and they were upset about the possibility of a mobile home park. She noted there would be an impact on traffic, the housing was for low income residents, and the developers should stay with the original plan. Mr. Steve McDonly, 25 Tobias Lane, stated there was a lot of negativity with the project and more time was needed for public input. Ms. Rita Press, 875 Wilmette Avenue, stated Mr. Joe Jaynes wanted to attend the meeting but had sent his comments to the County Council. She stated about 21 years ago she moved to Ormond Beach and explored manufactured homes and saw they were very nice. She stated that what the developers were proposing would just help them during this economic time. She discussed financing and insurance for a mobile home being unaffordable, and stated the property was worth a lot because of the Loop. Ms. Lisa DiNicolo, 1419 Oak Forest Drive, stated she appreciated Ms. Press s comments and did not think the Commission should be pessimistic. She was also against mobile homes on the property, as it was not in the best interest for the City. She stated that the residents were very concerned and unhappy. She stated she did not appreciate the property tax shift that would be added because of the mobile homes. Mr. Scott Klioze, 7 Cypress Hollow Lane, stated he was disappointed hearing the Commission s opinions. He stated he lives in Ormond Lakes and follows the guidelines to maintain the quality of life he desired when moving to the area. He stated he did not appreciate the comments about US1 falling apart and stated he felt adding mobile homes would allow the area to continue to deteriorate. He asked the Commission to defend the quality of life of Ormond Beach. He noted nothing had changed since the decisions made in Mr. Eric West, 1401 S. Palmetto Avenue #112, stated the original story was to have a mobile home park. He stated in 2002, their attorneys met with the Council and discussed the tax base being the same. He stated it was supposed to count as low cost housing marketed to wealthy northerners. He noted if this was for a retirement community, they would use ambulance services, the tax base would be different, and the taxpayers would be responsible. He stated this would eventually develop into the same condition as the Maria Bonita property.

17 Minutes City Commission Meeting December 13, 2011 Mr. John Norton, 220 N. Beach Street, stated everyone he spoke with was opposed to this development. He stated that Beach Street was already crowded with cars and the community had worked to keep a desired quality of life that should remain. He stated that a mobile home park would not align with the community, would stress the resources, and make a burden on real property homeowners. Mayor Kelley stated according to the report, there would be no additional traffic with this project as opposed to stick built houses. Mr. Jim Morris, 420 S. Nova Road, stated several comments had been made about breaking the rules according to the Volusia County Comp Plan. He read the rule, mobile homes shall be located in areas specifically and currently developed by mobile home use or located in undeveloped areas that will be developed primarily for mobile homes. He stated on the I-95 side of the property, the development had a 40-foot berm with the exception of a lake. He stated from the housing perspective, all the lots were 65 feet in width and the development order allowed 50 feet, which made a 25% lot size increase. He stated that the gross density was 1½ units per acre, with approximately 300 acres of open space in both recreation and conservation areas. He stated the community was self-contained with private roads, gate security, exterior property maintained by the developer, and the units were owned, not rented. He stated that the buffer along Old Dixie Highway was 175 feet, was an undisturbed vegetative area, and no one traveling the Loop would notice a change. He stated the right-of-way had been there for quite some time. He stated that the residents would not increase traffic because they would not be a part of the work force. Mr. Morris stated that some time ago the extension of the development order for Halifax Plantation was under discussion, and the debate was similar to what was being discussed currently. He noted that the development order was extended. He stated that this development would be for a structure occupied by a two-person family, paying school impact fees, with the developer paying property and school taxes. He stated the City was not obligated to annex the property, which would be a valuable asset to the community. Commissioner Stowers stated he met with Mr. Mychenberg and Mr. Morris and noted Zone 1 abuts the projected area. He stated that many of the comments were not in my backyard. He stated this would be different from the mobile home park near Maria Bonita. He stated he was familiar with the Crane Lakes gated community, which was in great condition. He noted this would be a continuing process for the City and County. He commented on the view from I-95, but noted the berm covering and lake. Regarding the traffic impact, he stated it had already been taken into account. He stated the units should have no impact on the property value, but would be a different market like a condo type neighborhood. As a comparison to the LPGA home, he stated that they have continued to respond to the current market situation, making smaller homes. He stated the US1 discussion was a challenge for the City regarding the standards for the gateway and he did not see a negative impact. He stated he hoped there would be some positive development in that area, with another developer to buy out Cheaters and the empty gas stations, making it a positive impact for the City. Commissioner Kent stated he preferred stick built homes, as the number of units had not changed. He agreed that this was an issue for the County. He stated he recently visited Bear Creek and was impressed. He stated he did not have a problem agreeing to the concept of mobile homes because this would not negatively affect Ormond Beach. He stated that studies

18 Minutes City Commission Meeting December 13, 2011 had been done, the City was not providing any services; therefore, he reserved the right to change his mind in the future. Commissioner Boehm stated he had a concern about the City addressing what was or was not allowed under the County s Comp Plan, as that would be overstepping the City s boundaries. He stated he reviewed the minutes from the County meeting and asked what the difference was between a manufactured home and a stick built home, which was something the committee also had questions about. He stated the Falls were manufactured homes, but they were made of brick. He stated that the plan was approved, the number of homes were approved, the road was in place, and if they wanted to do stick built, they could. He stated that the only change was if manufactured homes were allowed. He stated the term mobile home park was what was turning everyone off, but he did not see the typical mobile home park being developed. He stated that Bear Creek residents took pride in their homes. He stated a gated, private, retirement community was going to be a well-taken care of piece of property. Commissioner Partington stated that he apologized for his comments upsetting Mr. Klioze. He stated that after all the comments and speaking with Ronnie Bledsole, he did not feel that Ormond Beach had the right to say what was permitted for this process. He stated some of the residents of Zone 4 may be for or against the project. He stated the Commission should not make any comments at this time. He stated that if the County accepted the taxes they would receive, that was their decision. He stated that compatibility with adjacent uses regarding hurricanes and evacuations had already been addressed. He stated that the fight was with Volusia County and the citizens should bring their comments to the County. Mayor Kelley summarized that the Commission had decided to take no action at this time. He stated that what was being created because of property taxes and insurance rates was becoming a haven for the baby boomers that would be retiring. He stated that life style communities were being created for that purpose. He stated these residents would be in the area spending money and helping the community, but he stated he did not like that they would not be paying taxes, and the houses looked like stick-built homes with wheels. He stated he had also received a letter from Palm Coast Holdings who would in the future build 1.2 million square feet of commercial/industrial space and had plans for 3,200 homes. Item #11 REPORTS, SUGGESTIONS, REQUESTS iphone and Android Application Ms. Shanahan stated that they were working on a City of Ormond Beach iphone and Android application. Airport Sport Complex Signage Ms. Shanahan stated the Airport Sports Complex sign was being installed on Hull Road. Meeting Schedule Ms. Shanahan stated this was the last meeting for the month and year. She stated that the Strategic Planning Workshop would be held on January 3, 2012, from 5:00 to 7:30 p.m. at the Performing Arts Center Blue Room. She stated that a meal would be provided, and the City Commission meeting would begin at 8:00 p.m. US1 Corridor

19 Minutes City Commission Meeting December 13, 2011 Ms. Shanahan stated the City was working with the County regarding the US1 Corridor agreements. She stated she had heard from Planning Director Kelly McGee about how to move the issues along more quickly. Holiday Closings Ms. Shanahan stated City Hall and all non-emergency facilities would be closed on Friday, December 23, and Monday, December 26, with regular hours resuming on Tuesday, December 27, Greetings Ms. Shanahan wished everyone a happy holiday and a great new year. Greetings Mr. MacLeod wished everyone a Merry Christmas. Greetings Mr. Hayes wished everyone a Merry Christmas. Home for the Holiday Parade Commissioner Stowers stated he attended his second holiday parade with his wife sitting on the back of the truck, which was a great arrangement. He thanked everyone involved in putting on the parade. Greetings Commissioner Stowers wished everyone a Merry Christmas and a happy holiday season and a Happy New Year. Poinsettias Commissioner Kent stated he was pleased the tradition had continued to give poinsettias and thanked Mr. Lipscomb for taking the time to comment. Chamber Upgrades Commissioner Kent thanked City Clerk Joshua Fruecht for the upgrades in the Chambers. He also thanked Ms. Shanahan for her choice in hiring him. Home for the Holiday Parade Commissioner Kent stated the parade was fantastic. He stated in the past that he had a problem with his driver, so this year he decided to ask someone to drive his family in his personal truck. He noted that candy was provided to be thrown to the children along the parade route, but the Police Department asked that it not be thrown. Assistant Fire Chief Commissioner Kent stated he appreciated Ms. Shanahan s comments in the newspaper about Mr. Robert (Bob) Mandarino stepping up and representing the Fire Department as Acting Fire Chief. Greetings Commissioner Kent wished everyone a Merry Christmas and a Happy New Year.

20 Minutes City Commission Meeting December 13, 2011 Agenda Packet Commissioner Boehm stated the agenda packet for this meeting was 990 pages and the Commission reviewed the material that was provided to help move the meeting along. Commission Service Commissioner Boehm stated it had been a pleasure serving on the Commission. He referenced Mr. Jim Cameron s statement and said that this Commission was very professional and courteous. He noted it was a pleasure working with the Commission and staff. He stated staff always provided detailed information to the Commission and citizens in a timely manner. City Programs Commissioner Boehm stated there were a number of programs that the City offered and the community responded by attending, including the HOme for the HOliday Parade. He noted there was a tremendous turn out for the parade and thanked staff for a wonderful job. City Appreciation Commissioner Boehm stated that Ormond Beach was a great city and they will continue to try to make it a better City in He stated he appreciated the way the Commission responded to the passion of the residents with their comments. Greetings Commissioner Boehm wished everyone a Merry Christmas and a Happy New Year. City Staff Commissioner Partington thanked Commissioner Boehm for his comments regarding the great job that staff did for the Commission and the residents. Home for the Holiday Parade Commissioner Partington stated the parade got better every year and this was the best yet. He stated the bench seats for the Commission were a great idea so that they could face the crowd. He stated the parade was very well attended with people all along the way. Greetings Commissioner Partington wished everyone a Merry Christmas, happy holidays, and a very Happy New Year. Appreciation Mayor Kelley agreed with the Commission that this had been a great year and he appreciated and respected working with the Commission and staff and all their hard work in making the City run smooth. Greetings Mayor Kelley wished everyone a Merry Christmas and a Happy New Year and hoped to see everyone in The meeting was adjourned at 8:55 p.m. APPROVED: January 3, 2012

21 Minutes City Commission Meeting December 13, 2011 ATTEST: BY: Ed Kelley, Mayor Joshua Fruecht, City Clerk

22 CITY MANAGER MEMORANDUM To: Through: From: The Honorable Mayor Kelley and City Commissioners Joyce A. Shanahan, City Manager Richard P. Goss, Planning Director Date: December 29, 2011 Subject: Brownfield Area Designation Introduction This is a resolution designating a Brownfield Area pursuant to the Florida Brownfield Redevelopment Act. Background On June 16, 2011 city staff brought to the City Commission a discussion item regarding the Florida Brownfield Program. It was recommended by staff that a series of workshops be held to gauge property owner interest in the financial benefits and opportunities a Brownfield Area designation could provide to properties. The Planning Board met on December 8, 2012 and held the first of two required public hearings on the Brownfield Program. After hearing no objections from the public, the Planning Board recommended approval 6-0 with one member absent. The public nd hearing before the City Commission is the 2 and final public hearing required by the Brownfield Redevelopment Act. Analysis A Brownfield designation is a formalized process involving a resolution, 2 public hearings and informational meetings. Basically, Brownfield Area designations offer three financial incentives that are available to all property owners within the designated area regardless whether environmental issues exist or not. These incentives include a tax credit of up to $2,500 for each new job above the first five jobs created within the designated area, a sales tax credit on building materials purchased to construct a housing project or mixed-use project in the designated area, as well as last resort loan guarantees from 50% to 75% of a total loan. All these incentives are offered through Enterprise Florida. The job bonus is an 80/20 cost sharing with the State. The State provides $2,000 and the City is required to provide the $500. In addition to the three incentives provided for area designation, those individual sites with environmental issues have a host of other benefits such as liability protection for the property owner and lender, and voluntary cleanup tax credits. There are also federal benefits that are available, including grants and the Brownfield Federal Tax Incentive that allows environmental cleanup costs to be fully deducted in the same year they occur. These federal and state incentives are flexible enough to dovetail quite nicely with the City s downtown redevelopment efforts as well as efforts to redevelop the vacant Memorial Hospital site and surroundings. The City is also empowered by Page 1 of 4

23 Section , F.S. to provide financial, regulatory or technical assistance beyond the state and Federal incentives provided. A maximum effort to outreach and inform affected property owners of this designation occurred during the summer. A series of four Brownfield Area workshops were conducted on July 26th, August 9 th, August 30th, and September 13th, of 2011 for the purpose of informing and educating property owners about the benefits and opportunities a Brownfield Area designation provides in redevelopment of properties. City staff, Florida Department of Environmental Protection representatives, and some attendees such as a representative from a local law firm who was knowledgeable of the Florida Brownfield Program assisted in helping property owners understand the program and the finer details of how the incentives worked at these workshops. In addition, individual flyers were sent to every property owner within the proposed designated area and Main Street sent group blasts for each meeting to individuals signed up to receive notice of events and happenings in the downtown. Staff was busy in addressing individual visits to the office as well as telephone calls inquiring about the program throughout the period of time when workshops were conducted. In addition, the city workshops were featured on local television as well as the News Journal (NJ) writing a story on the initiative. Workshop Results The overwhelming majority of participants attending the workshops realized the benefits of the program and understood it was voluntary and not regulatory. It was explained that the City was not changing the land use or zoning within the proposed brownfield area. Issues expressed by property owners more than once focused on the effect a brownfield designation would have on property values. It was reported in the News Journal (NJ) that this issue was posed to the Volusia County Property Appraiser s Office (PAO) by a NJ reporter and the Property Appraiser was quoted that he would not mark down a property because it was located in a brownfield designated area. It is also interesting that there are four CRAs in Volusia County with a brownfield designation. The purpose of the CRA is to improve property values and use the tax increment increase to make further improvements which in turn increases tax ratables. It would be counter intuitive for a CRA to place a brownfield designation over a Tax Increment Financing District if property values were negatively affected. Once the News Journal printed the PAO s opinion regarding the marking down of properties within a brownfield area, this issue was not brought up in the final three workshop meetings. Of note was a philosophical statement posed by a person stating that government assistance tends to make properties more competitive than properties located outside of the designated areas. Staff concurs with this observation because that is the point of the program - to offset the advantages greenfield development has over brownfield development. Advisory Board Needed The City is required to use an existing or establish an Advisory Committee that can advise the City Commission regarding redevelopment in the brownfield area. By statute, members of the advisory committee should be made up of residents adjacent to the brownfield area, businesses operating within the brownfield area, and other interested parties deemed appropriate. There are several options regarding the advisory committee: Page 2 of 4

24 1) Main Street could be used since they advise the City Commission on the downtown and it has an economic development purpose and interest. Thirty-six percent (36%) of the Granada Economic Opportunity Zone s acreage is within the CRA, while forty-four percent (44%) of the parcels are located within the CRA. Main Street by-laws permit the organization to work outside of the traditional downtown on economic development issues and the organization has a standing Economic Restructuring Committee in place; or 2) The Chamber through the Economic Prosperity Committee could also be used since the Chamber represents business interest in and outside of the CRA; or 3) Create a new advisory committee combining Main Street and the Chamber representatives. Creating another new advisory board is not recommended since the US 1 North/Ormond Crossing/Airport/Business Park designation will require a new advisory board. Wherever possible, if advisory boards exist that can serve the purpose intended, staff recommends using existing boards. Any current or future board designated as the advisory board for the Brownfield Program, will be required to comply with the Sunshine Laws. In Summary After reviewing the enabling Statute and operating program guidelines, it is clear that the Florida Brownfield Program is voluntary, not regulatory and designed to assist redevelopment through the use of financial tax incentives. The program has many more positives than negatives. The City s CRA Property Improvement Program helps revitalize the downtown area, and the goal of layering the Brownfield designation on top of the CRA incentives will make reinvestment become even more attractive. There are currently 10 designations in Volusia County all in cities. Four of those designations include Community Redevelopment Areas. The proposed area has been renamed from the Opportunity Zone to the Granada Economic Opportunity Zone since the city is pursuing another zone that would include US 1 North corridor, Ormond Crossing industrial/commercial area, and the City s Airport and business park. The area for designation is unchanged from the map presented to the City Commission at the June th 16 Commission meeting. There are 417 parcels involving 398 acres. Staff received no correspondence from property owners requesting their property be removed from the list of properties contained within the designated area. Budget Impact The job bonus incentive requires an 80%/20% split between the state and the city. An applicant is eligible for a job bonus incentive of $2,500 for each additional job that is created over and above an initial five jobs. The city s pro rata portion of the $2,500 is $500 of the job bonus incentive. Since the jobs are tied to redeveloping a property, funds within the redevelopment line item of the Redevelopment Trust Fund are sufficient and can be used for that portion of the CRA that is located within the Granada Economic Opportunity Zone. Funds for the city s match outside of the CRA will need to be appropriated from General Fund Reserves at the time an application for an eligible project is submitted to the City staff for review and City Commission action. If approved, the application package is then transmitted to Enterprise Florida. Page 3 of 4

25 Recommendation Staff is recommending the City Commission approve this resolution designating a Brownfield Area as described and depicted therein pursuant to the Florida Brownfield Redevelopment Act. Reviewed by: /s/ Theodore S. MacLeod, P.E. Assistant City Manager / Public Works Director /s/ Kelly McGuire, Finance Director Approved by: /s/ Joyce A. Shanahan, City Manager Page 4 of 4

26 Briefing Paper Ormond Beach Brownfield Area Designation City Commission January 3, 2012

27 Brownfield Designation Workshop When* July 26, 2011 Where City Hall Training Room 22 S. Beach Street August 9, 2011 Casements 25 Riverside Drive August 30, 2011 Casements 25 Riverside Drive September 13, 201 City Hall Training Room 22 S. Beach Street *All meeting times 6:00 pm Sponsors: City of Ormond Beach Ormond Beach Main Street

28 Flyer

29 Presentation Overview What is a Brownfield? What are Brownfield areas? What are Brownfield sites Brownfield Area Brownfield Area Boundary Designation Process Benefits of designating an area Benefits to designating a site Neighboring communities in Volusia County with designations Statewide use of such designations Where do we go from here? Want to know more?

30 What is a Brownfield? Brownfield's are abandoned, idled, or underused industrial and commercial properties where expansion, reuse, or redevelopment may be complicated by real or perceived environmental contamination.

31 What are Brownfield Areas? Brownfield area means a contiguous area of one or more brownfield sites, some of which may not be contaminated, and which has been designated by a local government by resolution. Such areas may include all or portions of community redevelopment areas, enterprise zones, empowerment zones, other such designated economically deprive communities and areas, and Environmental Protection Agency designated brownfield pilot projects (4) F.A.C.

32 What Are Brownfield Sites? Brownfield site means real property, the expansion, redevelopment or reuse of which may be complicated by actual or perceived environmental contamination (3) F.A.C.

33 Brownfield Area Designation Granada Economic Opportunity Zone** **Used interchangeably with a Brownfield designation to provide location recognition. It is not an identification of contaminated sites. It s more about redevelopment. It also is about incentives, on the federal, state, and local level to facilitate (re)development.

34 Brownfield Area Boundary

35 Designation Process

36 Economic incentives that benefit area designation Bonus Refund for Job Creation up to $2,500 per job 50% loan guarantee on site rehabilitation and development & 75% if property is redeveloped for affordable housing/health care providers Sales tax Credit on Building Materials for Affordable Housing Projects & mixed-use affordable housing Budgeted by State Fiscal Year July-June Applicable to any property within a designated brownfield area provided eligibility criteria for each incentive are met

37 Economic incentives that benefit site designation Brownfield Sites with executed BSRA All benefits of Brownfield area Regulatory Framework for Cleanup (Rules and , F.A.C.) Dedicated FDEP staff with expedited technical review Liability Protection Voluntary cleanup tax credits Memorandum of Understanding with EPA

38 BSRA Liability Protections Owners and Redevelopers (PRFBSRs) Relief from further liability for site rehabilitation Section (2)(a), F.S. Does not limit third party rights for damages Section (2)(b), F.S. Available if BSRA terms met Lenders Serving in fiduciary capacity - loan Did not Cause/contribute to contamination Control/manage site rehabilitation Economic incentives do not apply during the lender s ownership

39 Voluntary Cleanup Tax Credits Tax Credit Type Site Rehab Site Rehab Completion Frequency Annually Once Max Credit for Costs incurred after % $500,000 25% $500,000 Affordable housing Health Care Facility Solid Waste Budgeted by Calendar Year Once Once Once 25% $500,000 25% $500,000 50% $500,000

40 Voluntary Cleanup Tax Credits Credits on Florida corporate income tax May be transferred once $2 million annual cap If exhausted, first priority in next year's allocation Credits awarded for eligible work Site rehabilitation Solid waste removal, transport and disposal Bonus credits awarded for site rehabilitation only SRCO Affordable housing

41 Designated Brownfield Areas in Volusia County Daytona Beach Area ERAU, airport Holly Hill Special Economic Enhancement District (Downtown CRA) New Port LLP (Port Orange) NSB Brownfield Enhancement Zone (Downtown CRA) NSB Airport (recent designation) Port Orange Riverwalk Project Area ( Downtown CRA) South Daytona Florida Brownfields Economic Enhancement Area (Downtown CRA) William Lofts (Daytona Beach) 1601 Tiona Road (NSB) Central Business Corridors (Daytona Beach)

42 Statewide Brownfield Highlights New Jobs - January 2009 to June ,336 new direct jobs, 3,392 new indirect jobs New Capital Investment - $387,903,000 Since Program Inception in ,163 new direct jobs, 16,529 new indirect jobs Capital Investment - $1,679,539,591

43 Want to know more? Brownfields elds.htm FDEP Central District Orlando Brownfield Coordinator Voluntary Cleanup Tax Credit Program Enterprise Florida Joe Bell 800 N. Magnolia Ave., Suite 1100 Orlando, FL Phone: (407) City Contact for local designation process: Ric Goss, Planning Director

44 Where do we go from here? Based upon property owner attendance no more educational workshops are needed. Staff has received no requests from property owners to opt out of the designation (need to provide a letter to the city requesting parcel deletion). Advisory board will need to be established. An existing board may be used if the mission is (re) development related. Board will be subject to Sunshine laws. Planning Board recommended approval at 1 st public hearing on Designation occurs upon favorable action by CC on Resolution. Resolution forwarded to FDEP.

45 RESOLUTION NO A RESOLUTION DESIGNATING CERTAIN LANDS TO BE A BROWNFIELD AREA, INCLUDING LANDS THAT ARE SITUATED INSIDE AND OUTSIDE THE CITY S COMMUNITY REDEVELOPMENT AREA; PROVIDING LEGISLATIVE FINDINGS; AUTHORIZING THE USE OF ECONOMIC AND TAX INCENTIVES TO FACLITATE AND PROMOTE THE REHABILITATION OF LANDS IN THE BROWNFIELD AREA; AUTHORIZING THE ESTABLISHMENT OF AN ADVISORY COMMITTEE; DIRECTING THE CITY CLERK TO NOTIFY THE FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION REGARDING THE BROWNFIELD AREA DESIGNATION; AND SETTING FORTH AN EFFECTIVE DATE. WHEREAS, the stated intent of the Florida legislature in enacting the Brownfields Redevelopment Act ( Act ), sections through , Florida Statutes, is to reduce public health and environmental hazards on commercial and industrial sites in order to promote employment, housing, recreation and open space areas; to promote the reuse of industrial land in accordance with sound land use policies that will prevent the premature development of farmland, open space areas, and natural areas and to reduce public costs for installing new water, sewer, and highway infrastructure; to encourage the use of Brownfield Sites in order to encourage the efficient use of public facilities and services, land and other natural resources; to promote the use of incentives to encourage responsible persons to voluntarily develop and implement cleanup plans without the use of taxpayer funds or the need for enforcement action by state and local governments; to promote clear and predictable remediation efforts to eliminate environmental and public health hazards; to promote site rehabilitation to eliminate the risk that contamination may pose to the environment and public health, taking into account the current and future use of land and water and the degree to which contamination may spread and place S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 1

46 the public or environment at risk; and to eliminate community decline, including disease and illness, crime, educational and employment opportunities, and infrastructure decay; and that the rehabilitation and redevelopment of Brownfield Sites can lead to an improved quality of life and health benefits; and WHEREAS, section of the Act defines: a) Brownfield Area to mean a contiguous area of one or more Brownfield Sites, some of which may not be contaminated, and which may include all or part of community redevelopment areas, enterprise zones, empowerment zones, other designated economically deprived areas, and Brownfield Site pilot projects that have been designated by the Environmental Protection Agency. b) Brownfield Site to mean real property, the expansion, redevelopment, or reuse of which may be complicated by actual or perceived environmental Contamination. c) Contaminated Site to mean any contiguous land, sediment, surface water, or groundwater areas that contain Contaminants that may be harmful to human health or the environment. d) Contaminant to mean any physical, chemical, biological, or radiological substance present in any medium that may result in adverse effects to human health or the environment or which creates an adverse nuisance, organoleptic, or anesthetic condition in groundwater. WHEREAS, the Act provides authority to local government agencies to designate certain lands to be a Brownfield Area; and to use the full range of economic and tax incentives available to facilitate and promote the rehabilitation of Brownfield Areas to help eliminate public health and environmental hazards, and to promote the creation of jobs and economic development, specifically including: Financial incentives and local incentives for redevelopment: a) Tax increment financing through community redevelopment agencies as provided in Chapter 163 (Part III), Florida Statutes. S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 2

47 b) Enterprise zone tax exemptions for business as provided in Chapters 196 and 290, Florida Statutes. c) Safe neighborhood improvement districts as provided in sections through , Florida Statutes. d) Waiver, reduction, or limitation by line of business with respect to business taxes as provided in Chapter 205, Florida Statutes. e) Tax exemption for historic properties as provided in section , Florida Statutes. f) Residential electricity exemption of up to the first 500 kilowatts of use may be exempted from municipal public service tax as provided in section (6), Florida Statutes. g) Minority business enterprise programs as provided in section , Florida Statutes. h) Electric and gas tax exemptions as provided in section (6), Florida Statutes. i) Economic development tax abatement as provided in section , Florida Statutes. j) Grants, including community development block grants. k) Pledging of revenue to secure bonds. l) Low-interest revolving loans and zero-interest loan pools. m) Local grant programs for façade, storefront, signage and other business improvements. n) Governmental coordination of loan programs with lenders, such as micro loans, business reserve fund loans, letter of credit enhancements, gap financing, lease and sublease loans, and private equity. o) Payment schedules over time for payment of fees, within criteria, and marginal cost pricing. Regulatory incentives: a) Absorption by the city of developers concurrency needs. S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 3

48 b) Developers performance of certain analysis. c) Exemptions and lessening of state and local review requirements. d) Water and sewer regulatory incentives. e) Waiver of transportation impact fees and permit fees. f) Zoning incentives to reduce review requirements for redevelopment changes in use and occupancy; establishment of code criteria for specific uses; and institution of credits for previous use within the area. g) Flexibility in parking and buffer zone standards. h) Environmental management through specific code criteria and conditions allowed by law. i) Maintenance standards and activities by ordinance and otherwise, and increased security and crime prevention measures available through special assessments. j) Traffic-calming measures. k) Historic preservation ordinances, loan programs, and review and permitting process. l) One-stop permitting and streamlined development and permitting process. Technical assistance incentives: a) Expedited development applications. b) Formal and informal information on business incentives and financial programs. c) Site design assistance. d) Marketing and promotion of projects or areas. WHEREAS, section of the Act requires the following factors to be considered in determining the areas to be designated a Brownfield Area: a) Whether the Brownfield Area warrants economic development and has a reasonable potential for such activities; S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 4

49 b) Whether the proposed area to be designated represents a reasonably focused approach and is not overly large in geographic coverage; c) Whether the area has potential to interest the private sector in participating in rehabilitation; and d) Whether the area contains sites or parts of sites suitable for limited recreational open space, cultural, or historical preservation purposes. WHEREAS, section of the Act further provides that a Brownfield Area may be designated as such, provided that: a) A person who owns or controls a potential Brownfield Site is requesting the designation and has agreed to rehabilitate and redevelop the Brownfield Site; b) The rehabilitation and redevelopment of the proposed Brownfield Site will result in economic productivity of the area, along with the creation of at least five (5) new permanent jobs at the Brownfield Site that are full-time equivalent positions not associated with the implementation of the Brownfield Site rehabilitation agreement and that are not associated with redevelopment project demolition or construction activities pursuant to the redevelopment of the proposed Brownfield Site or Area; except that the job creation requirement shall not apply to the rehabilitation and redevelopment of a Brownfield Site that will provide affordable housing (as defined in section , Florida Statutes) or the creation of recreational areas, conservation areas, or parks. c) The redevelopment of the Brownfield Site is consistent with the local comprehensive plan and is a permittable use under applicable land development regulations. d) Notice of the proposed rehabilitation of the Brownfield Area has been provided (in a newspaper of general circulation in the affected area, and being at least 16 square inches in size) to neighbors and nearby residents, and that those persons have been afforded an opportunity to provide comments and suggestions about the rehabilitation. e) The person proposing the area for designation has provided reasonable assurance that he or she has sufficient financial resources to implement and complete the rehabilitation agreement and redevelopment of the Brownfield Site. WHEREAS, section (1) of the Act provides that a resolution designating a Brownfield Area must include a map that clearly delineates the specific parcels that are to be S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 5

50 included in the Brownfield Area or a less-detailed map accompanied by a detailed legal description of the Brownfield Area; and WHEREAS, the lands that are proposed to be designated a Brownfield Area include lands that are both inside and outside of the city s community redevelopment area; and WHEREAS, section (1) of the Act requires a municipality to adopt a resolution designating a Brownfield Area in accordance with the procedures outlined in section , Florida Statutes, and that notice for the public hearings must be in the form established in section (3)(c)2, Florida Statutes; and WHEREAS, section (2)(a) of the Act further provides that if a proposed Brownfield Area is outside community redevelopment areas, enterprise zones, empowerment zones, closed military bases, or designated Brownfield pilot project areas, at least one of the public hearings shall be conducted as reasonably practicable to the area to be designated; and WHEREAS, section (2)(a) of the Act and section (3)(c)2, Florida Statutes requires two public hearings for the designation of the lands that are proposed to be designated a Brownfield Area; and WHEREAS, public workshops were conducted regarding the intention to designate a Brownfield Area on July 26, August 9, August 30, and September 13, 2011 at Ormond Beach city hall and The Casements (with written notice having been provided to each affected property owner and published on the city s website and in the News Journal) for the purpose of informing property owners and the general public about the benefits and opportunities that a Brownfield Area designation may provide regarding the redevelopment of lands so designated; and S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 6

51 WHEREAS, the matters set forth in this resolution were considered at a public hearing before the city s planning board on December 8, 2011, and were considered at a public hearing before the city commission on January 3, 2012; and WHEREAS, the city has not received a written request from any property owner in accordance with section (1) of the Act requesting that his or her lands be removed from the proposed Brownfield Area; and WHEREAS, the city commission of the city of Ormond Beach has determined that it is in the best interest of the health, welfare and safety of its citizens and the general public to designate the lands legally described and depicted in Exhibit A attached hereto to be a Brownfield Area; now therefore, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF ORMOND BEACH, FLORIDA, THAT: SECTION ONE. The city commission makes the following findings: a) Beneficial Communities, LLC (and/or Beneficial Communities Development, LLC), 2206 Jo-An Drive, Sarasota, Florida, has requested by letter dated June 3, 2011, that certain lands it owns being situated at 765 West Granada Boulevard, be designated as a Brownfield Area for the purpose of rehabilitation as an affordable housing development. A copy of the written request is attached hereto as Exhibit B. Beneficial Communities, LLC has the financial resources to rehabilitate the subject Brownfield Site. b) The city s planning director proposes that the city commission designate the lands that are generally depicted on the map and that are legally described in Exhibit A attached hereto to be a Brownfield Area. The map and legal description attached as Exhibit A complies with the requirements of section of the Act. The lands that are the subject of the proposed designation include the lands that are the subject of the request by Beneficial Communities, LLC, as well as lands that are situated both inside and outside the city s community redevelopment area. S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 7

52 c) The public notice and public hearing requirements as set forth in section (2)(a) and (3)(c)2, Florida Statutes, regarding the designation of lands to be a Brownfield Area have been satisfied. d) The city has not received a written request from any property owner in accordance with section (1) of the Act, requesting that his or her lands be removed from the proposed Brownfield Area. e) The redevelopment of the Brownfield Area will be consistent with the city s comprehensive land use plan and land development regulations. SECTION TWO. The city commission has considered the following factors and has determined that the lands that are the subject of the proposed Brownfield Area designation: a) Warrant economic development and have a reasonable potential for such activities. b) Represents a reasonably focused approach for such designation and is not overly large in geographic coverage. c) Has the potential to interest the private sector in participating in the rehabilitation of the designated lands. e) Contains sites or parts of sites that are suitable for limited recreational open space, cultural, or historical preservation purposes. SECTION THREE. The city commission hereby declares and designates those lands that are generally depicted in the map and legally described in Exhibit A attached hereto to be a Brownfield Area in accordance with the Act, and authorizes use of the full range of economic and tax incentives available to facilitate and promote the rehabilitation of the Brownfield Area, specifically including: Financial incentives and local incentives for redevelopment: a) Tax increment financing through community redevelopment agencies as provided in Chapter 163 (Part III), Florida Statutes. S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 8

53 b) Enterprise zone tax exemptions for business as provided in Chapters 196 and 290, Florida Statutes. c) Safe neighborhood improvement districts as provided in sections through , Florida Statutes. d) Waiver, reduction, or limitation by line of business with respect to business taxes as provided in Chapter 205, Florida Statutes. e) Tax exemption for historic properties as provided in section , Florida Statutes. f) Residential electricity exemption of up to the first 500 kilowatts of use may be exempted from municipal public service tax as provided in section (6), Florida Statutes. g) Minority business enterprise programs as provided in section , Florida Statutes. h) Electric and gas tax exemptions as provided in section (6), Florida Statutes. i) Economic development tax abatement as provided in section , Florida Statutes. j) Grants, including community development block grants. k) Pledging of revenue to secure bonds. l) Low-interest revolving loans and zero-interest loan pools. m) Local grant programs for façade, storefront, signage and other business improvements. n) Governmental coordination of loan programs with lenders, such as micro loans, business reserve fund loans, letter of credit enhancements, gap financing, lease and sublease loans, and private equity. o) Payment schedules over time for payment of fees, within criteria, and marginal cost pricing. Regulatory incentives: a) Absorption by the city of developers concurrency needs. S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 9

54 b) Developers performance of certain analysis. c) Exemptions and lessening of state and local review requirements. d) Water and sewer regulatory incentives. e) Waiver of transportation impact fees and permit fees. f) Zoning incentives to reduce review requirements for redevelopment changes in use and occupancy; establishment of code criteria for specific uses; and institution of credits for previous use within the area. g) Flexibility in parking and buffer zone standards. h) Environmental management through specific code criteria and conditions allowed by law. i) Maintenance standards and activities by ordinance and otherwise, and increased security and crime prevention measures available through special assessments. j) Traffic-calming measures. k) Historic preservation ordinances, loan programs, and review and permitting process. l) One-stop permitting and streamlined development and permitting process. Technical assistance incentives: a) Expedited development applications. b) Formal and in formal information on business incentives and financial programs. c) Site design assistance. d) Marketing and promotion of projects or areas. And further provided that: a) The rehabilitation and redevelopment of a proposed Brownfield Site will result in economic productivity of the area, along with the creation of at least five (5) new permanent jobs at the Brownfield Site that are full-time equivalent positions not associated with the implementation of the Brownfield Site rehabilitation agreement and that are not associated with redevelopment project demolition or construction S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 10

55 activities pursuant to the redevelopment of the proposed Brownfield Site or Area; except that the job creation requirement shall not apply to the rehabilitation and redevelopment of a Brownfield Site that will provide affordable housing (as defined in section , Florida Statutes) or the creation of recreational areas, conservation areas, or parks. b) Designation of the Brownfield Area shall not render liable the city (including its elected and appointed officials and employees) for the cost of site rehabilitation or source removal, as those terms are defined in section (17) and (18), Florida Statutes, or for any other costs that may arise or be incurred, including but not limited to incidental or consequential costs. SECTION FOUR. The city commission shall designate by separate resolution or ordinance, an advisory committee in accordance with the requirements of section (4) of the Act. Members of the advisory committee shall include residents within or adjacent to the Brownfield Area, businesses operating within the Brownfield Area, and others deemed appropriate by the city commission. The duties of the advisory committee shall be to: a) Hold public meetings and seek public participation and comments regarding the rehabilitation and redevelopment of the Brownfield Area. b) Review draft rehabilitation plans to ensure that the criteria described in section (5) of the Act have been addressed. c) Review proposed redevelopment agreements and provide comments to the city commission. d) Review and provide comments regarding site assessment reports or technical documents for a proposed course of action. e) Any person responsible for the rehabilitation of a Brownfield Site must notify the advisory committee of the intent to rehabilitate and redevelop the Brownfield Site before executing a Brownfield Site Rehabilitation Agreement, and provide the advisory committee with a copy of the draft plan for site rehabilitation that addresses the conditions required by section (5) of the Act. f) Other duties as prescribed by the Act. S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 11

56 SECTION FIVE. The City Clerk, or his designee, shall notify the Florida Department of Environmental Protection in writing and provide a copy of this Resolution setting forth the designation of the property depicted and legally described in Exhibit A to be a Brownfield Area, for the purposes set forth in the Act. SECTION SIX. This Resolution shall take effect immediately upon its adoption. APPROVED AND AUTHENTICATED this 3 rd day of January, ATTEST: ED KELLEY Mayor JOSHUA FRUECHT City Clerk S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 12

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62 PLANNING CITY OF ORMOND BEACH FLORIDA M E M O R A N D U M TO: FROM: Chairman Thomas and Planning Board Members Richard P. Goss, AICP, Director of Planning DATE: SUBJECT: CC: Brownfield Designation Staff Report for the Granada Economic Opportunity Zone City Attorney Randy Hayes and City Manager Joyce Shanahan I. INTRODUCTION On June 16, 2011 the City Commission, pursuant to a property owner s request, authorized staff to examine the feasibility of designating an area and conduct a series of workshops to inform the property owners of the financial, regulatory and possible negative perceptions of such a designation. Florida Department of Environment Protection, the state agency responsible for the Brownfield Redevelopment Program, frames the program as a smart growth approach to community, economic development, environmental, land use, tax base and urban redevelopment issues. Brownfield redevelopment is one area where environmental and economic development goals further each other. In Florida, cities and counties throughout the state have designated Brownfield areas as a priority due to the emphasis placed on economic and urban redevelopment initiatives. The current administration in Tallahassee for the State has placed a priority on the Brownfield Redevelopment Program because of its proven record in job creation. The City s Brownfield Program is being presented to the Planning Board as a public hearing item pursuant to the Board s authority outlined in Section 1-15 C1c. II. EFFECT OF FLORIDA S BROWNFIELD REDEVELOPMENT PROGRAM Volusia County and all the municipalities participated in the 2009 Smart Growth Initiatives that was part of the One Region initiative of the Regional Planning Council. Throughout the Halifax watershed, the development trend has been to spread out. As suburbanization continues, more of the rural landscape is consumed. Developing unused land in the outlying areas of Volusia County or Ormond Beach for commercial, business or residential use means that the City is not only spreading out but encouraging population to locate to outlying areas. To affect this trend, the Brownfield Program is designed to redevelop previously used sites including Brownfield sites, locating needed jobs to the urban area and revitalizing the city s downtown and commercial corridors where shopping patterns have changed. The relocation

63 Chairman Thomas and Planning Board Members City Attorney Randy Hayes and City Manager Joyce Shanahan Page 2 of Tire Kindom from downtown to Williamson is a good example of a business pursuing their customer base. To understand the Florida Brownfield Redevelopment Program, three definitions are provided: 1. Brownfield's are abandoned, idled, or underused industrial and commercial properties where expansion, reuse, or redevelopment may be complicated by real or perceived environmental contamination. 2. Brownfield area means a contiguous area of one or more Brownfield sites, some of which may not be contaminated, and which has been designated by a local government by resolution. Such areas may include all or portions of community redevelopment areas, enterprise zones, empowerment zones, other such designated economically deprive communities and areas, and Environmental Protection Agency designated Brownfield pilot projects (4) F.A.C. 3. Brownfield site means real property, the expansion, redevelopment or reuse of which may be complicated by actual or perceived environmental contamination (3) F.A.C. III. WHAT IS NEEDED TO ACHIEVE DESIGNATION AS A BROWNFIELD AREA IN ORMOND BEACH? Staff s initial proposal to the City Commission to get the discussion started was to make a portion of the downtown community development district a Brownfield designation to take advantage of the financial incentives related to mix use developments. The City s form based code requires new mixed use buildings to have upper stories. The financial incentives that support mix use development could well reduce the cost of complying with this requirement. For example, property owners in the Downtown could receive a Property Improvement Grant of up to $50,000, a job bonus refund for any jobs created for the commercial on the ground floor, building sale tax refund for the improvements on the second floor, and be eligible for a 50% to 75% guaranteed loan from Enterprise Florida as a last resort. According to the 2010 US Census, the median income of people ages 24 5o 29 is barely $31,000 before taxes. This translates to being able to pay, at most, a monthly rent of $850. A market for small apartments on an upper story downtown building exists from the job creation by additional restaurants and entertainment venues that will be added to the downtown. The other incentives will help further improve the area and boost the economy around the vacant hospital site. Main Street supported pursuing this designation and was a willing cosponsor of the four workshops since a significant portion of the redevelopment district is in the Brownfield designated boundary area map. A maximum effort to outreach and inform affected property owners of this designation occurred during this past summer. A series of Brownfield Area workshops were conducted on July 26th, August 9 th, August 30th and September 13th, of 2011 for the purpose of informing and educating property owners about the benefits and opportunities a Brownfield Area designation provides in redevelopment of properties. City staff, Florida Department of Environmental Protection representatives, and some attendees such as a representative from a local law firm who was knowledgeable of the Florida Brownfield Program assisted in helping property owners understand the program and the finer details of how the incentives worked at these workshops. In addition, individual flyers were sent to every property owner within the Brownfield Staff Report

64 Chairman Thomas and Planning Board Members City Attorney Randy Hayes and City Manager Joyce Shanahan Page 3 proposed designated area and Main Street sent group blasts for each meeting to individuals signed up to receive notice of events and happenings in the downtown. Staff was busy in addressing individual visits to the office as well as telephone calls inquiring about the program throughout the period of time when workshops were conducted. In addition, the city workshops were featured on local television as well as the News Journal (NJ) writing a story on the initiative. The program was explained as being voluntary and not regulatory. It was also explained that the City was not changing the land use or zoning within the proposed Brownfield area. Issues expressed by property owners more than once focused on the effect a Brownfield designation would have on property values. It was reported in the News Journal (NJ) that this issue was posed to the Volusia County Property Appraiser s Office (PAO) by a NJ reporter and the Property Appraiser was quoted that he would not mark down a property because it was located in a Brownfield designated area. It is also interesting that there are four CRAs in Volusia County with a Brownfield designation. The purpose of the CRA is to improve property values and use the tax increment increase to make further improvements which in turn increases tax ratables. It would be counter intuitive for a CRA to place a Brownfield designation over a Tax Increment Financing District if property values were negatively affected. Once the News Journal printed the PAO s opinion regarding the marking down of properties within a Brownfield area, this issue was not brought up in the final three workshop meetings. Of note was a philosophical statement posed by a person stating that government assistance tends to make properties more competitive than properties located outside of the designated areas. Staff concurs with this observation because that is the point of the program - to offset the advantages of vacant land in outlying areas of the City has over Brownfield development. The proposed boundary area is depicted as Map 1 below: Map 1 Brownfield Area Boundary A Brownfield designation according to Florida Statute 376 is a formalized process involving a resolution, 2 public hearings and informational meetings. The public hearing before the Planning Board serves as one of those required public hearings. Brownfield Staff Report

65 Chairman Thomas and Planning Board Members City Attorney Randy Hayes and City Manager Joyce Shanahan Page 4 IV. FINANCIAL INCENTIVES TO BROWNFIELD AREA DESIGNATION Brownfield Area designations offer three financial incentives that are available to all property owners within the designated area regardless whether environmental issues exist or not on a site. These incentives include: 1. A tax credit of up to $2,500 for each new job above the first five jobs created within the designated area. 2. A sales tax credit on building materials purchased to construct a housing project or mixed-useproject in the designated area. 3. A last resort loan guarantees from 50% to 75% of a total loan. All these incentives are offered through Enterprise Florida. The one time job bonus is an 80/20 cost sharing with the State. The State provides $2,000 and the City provides $500. V. FINANCIAL INCENTIVES FOR BROWNFIELD SITES In addition to the three incentives provided for area designation, individual sites with environmental issues have a host of other benefits such as liability and legal protection for the property owner and lender, and voluntary cleanup tax credits. There are also federal benefits that are available, including grants and the Brownfield Federal Tax Incentive that allows environmental cleanup costs to be fully deducted in the same year they occur. These federal and state incentives are flexible enough to dovetail quite nicely with the City s downtown redevelopment efforts as well as efforts to redevelop the vacant Memorial Hospital site and surroundings. The City is also empowered by Section , F.S. to provide financial, regulatory or technical assistance beyond the state and Federal incentives provided. There is a host of barriers of one kind or another that make intown redevelopment noncompetitive with vacant property located on the outlying areas of the city. Legal Liability Legal liability for potential contaminated sites often deters property owners and potential buyers from investigating contamination, cleaning up or buying a site. The Florida Brownfield Redevelopment Program provides a mechanism to protect potential purchasers willing to conduct a cleanup from liability for past contamination caused by another party. Lender Liability Lender liability for Brownfield sites often remain a fear in the banking community but the Florida Brownfield Redevelopment Program provides a mechanism to protect lenders serving in a fiduciary capacity for a loan. If a Lender did not cause or contribute to contamination, then liability does not exist. If the Lender did not control or manage the site rehabilitation, liability does not exist. Cleanup Standards- Many would be purchasers of property once discovering that there may be potential contamination on sites, shy away from such sites because there is a lack of uncertainty. Technical uncertainties such as questions about the duration of the cleanup and questions about when clean is clean because environmental remediation is not an exact science. The Florida Brownfield Redevelopment Program employs a Risk- Brownfield Staff Report

66 Chairman Thomas and Planning Board Members City Attorney Randy Hayes and City Manager Joyce Shanahan Page 5 based corrective action (RBCA), in which cleanup levels are based on the actual (not theoretical) risks posed by contaminants. Brownfield s Site Rehabilitation Agreements are used (BSRA) that provides the regulator authority and public assurance that the site rehabilitation will be conducted in accordance with the statute and the Brownfield s Cleanup Criteria Rule while providing the property owner liability protection. The BSRA contains various commitments by the person responsible for site rehabilitation remediation, and provides milestones for completion of site rehabilitation tasks. The agreement also contains a commitment by the regulatory authority to review technical reports according to an agreed upon schedule. The agreement once fulfilled requires the State to issue a Site Rehabilitation Completion Order (SRCO) indicating that there are no further requirements for clean up of a site (no reopeners). VI. ADVISORY BOARD REQUIRED The City is required to use an existing or establish an Advisory Committee that can advise the City Commission regarding redevelopment in the Brownfield area. By statute, members of the advisory committee should be made up of residents adjacent to the Brownfield area, businesses operating within the Brownfield area, and other interested parties deemed appropriate. There are several options regarding the advisory committee: 1. Main Street could be used since they advise the City Commission on the downtown and it has an economic development purpose and interest. Thirty-six percent (36%) of the Granada Economic Opportunity Zone s acreage is within the CRA, while forty-four percent (44%) of the parcels are located within the CRA. Main Street bylaws permit the organization to work outside of the traditional downtown on economic development issues and the organization has a standing Economic Restructuring Committee in place; or 2. The Chamber through the Economic Prosperity Committee could also be used since the Chamber represents business interest in and outside of the CRA; or 3. A new advisory committee combining Main Street and the Chamber representatives could be created. A new advisory board is not recommended since the US 1 North/Ormond Crossing/Airport/Business Park Brownfield designation will require a new advisory board. Wherever possible, if advisory boards exist that can serve the purpose intended, staff recommends using existing boards. Any current or future board designated as the advisory board for the Brownfield Program, will be required to comply with the Sunshine Laws. VII. CURRENT BROWNFIELD INITIATIVES IN VOLUSIA COUNTY/CENTRAL DISTRICT/STATE The following Brownfield designations exist in Volusia County and are depicted in Map 2 below. Brownfield Staff Report

67 Chairman Thomas and Planning Board Members City Attorney Randy Hayes and City Manager Joyce Shanahan Page 6 Daytona Beach Area Aero Park - (Airport, Aero Industrial Park, ERAU, and Clyde Morris Boulevard properties) Holly Hill Special Economic Enhancement District (CRA-downtown) New Port LLP (Port Orange) (Individual property) NSB Brownfield Enhancement Zone (CRA-downtown) NSB Airport (recent designation) River walk Project Area (CRA Downtown Port Orange) South Daytona Florida Brownfields Economic Enhancement Area (CRAdowntown) William Lofts (Daytona Beach) (Individual property in downtown) 1601 Tionia Road (NSB) (Individual property) Central Business Corridors (Daytona Beach) Map 2 Volusia County Brownfield Designations Central District: 60 Brownfield Designation Areas (1 in 2011 so far) 39,100 acres in Brownfield Area Designations >433 acres in Brownfield Sites (1% of Brownfield Area) Statewide: 262 Brownfield Designation Areas >198,000 acres in Brownfield Area Designations >39,100 acres in Brownfield Sites (2% of Brownfield Area) VIII. ECONOMIC SUCCESS OF THE BROWNFIELD REDEVELOPMENT PROGRAM Brownfield Staff Report

68 Chairman Thomas and Planning Board Members City Attorney Randy Hayes and City Manager Joyce Shanahan Page 7 New Jobs - January 2009 to June ,336 new direct jobs, 3,392 new indirect jobs New Capital Investment - $387,903,000 Since Program Inception in ,163 new direct jobs, 16,529 new indirect jobs Capital Investment - $1,679,539,591 VIV. SUMMARY After reviewing the enabling Statute and operating program guidelines, it is clear that the Florida Brownfield Program is voluntary, not regulatory and designed to assist redevelopment through the use of financial tax incentives. The program has many more positives than negatives. The City s CRA Property Improvement Program helps revitalize the downtown area, and the goal of layering the Brownfield designation on top of the CRA incentives will make reinvestment become even more attractive downtown. There are currently 10 designations in Volusia County all in cities. Five of those designations include either all or portions of downtown Community Redevelopment Areas. The proposed Brownfield designation area has been given a moniker of Granada Economic Opportunity Zone for identification purposes since the City is working on two brownfield designations. The area for this designation is unchanged from Map 1 presented to the City Commission at the June 16 th Commission meeting. There are 417 parcels involving 398 acres. Staff received no correspondence from property owners with properties in the proposed Brownfield Area objecting to their property being included in the designation therefore no property has been deleted from the orginial list of properties. VIX. RECOMMENDATION Staff is recommending that the Planning Board recommend to the City Commission that the Granada Economic Opportunity Zone be designated a Brownfield Area as defined in FS 376. Brownfield Staff Report

69 CITY MANAGER MEMORANDUM To: Through: From: The Honorable Mayor Kelley and City Commissioners Joyce A. Shanahan, City Manager Joshua Fruecht, City Clerk Date: December 29, 2011 Subject: Appointing Charter Review Committee Member Introduction This is a request to appoint a member to the Charter Review Committee. Background The City of Ormond Beach, pursuant to Resolution No , established the Ormond Beach Charter Review Committee. The Charter review committee consists of five (5) members, each of whom must be domiciled in the city. This is a request to approve the appointment of a member to the Charter Review. The term of the Charter Review Committee member will be through and including April 30, 2012 or for a period of ninety (90) days from the date on which the committee holds its first meeting, which ever event occurs first, at which time the committee and all powers shall automatically expire and terminate without further action by the City Commission. Budget Impact: This item has no budgetary impact on the City. Recommendation It is recommended that the City Commission approve the appointment of the Charter Review Committee member referenced in the attached resolution. Reviewed by: /s/ Theodore S. MacLeod, P.E. Assistant City Manager / Public Works Director /s/ Kelly McGuire, Finance Director Approved by: /s/ Joyce A. Shanahan, City Manager Page 1 of 1

70 FLORIDA, THAT: RESOLUTION A RESOLUTION APPOINTING A MEMBER TO SERVE ON THE CHARTER REVIEW COMMITTEE; SETTING FORTH TERMS AND CONDITIONS OF SERVICE; AND SETTING FORTH AN EFFECTIVE DATE. BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF ORMOND BEACH, SECTION ONE. Philip J. Shapiro is hereby appointed to serve as a member of the Charter Review Committee, as the appointee of the Zone Four City Commissioner. SECTION TWO. The aforenamed appointee shall serve a term of office through and including April 30, 2012 or for a period of ninety (90) days from the date on which the committee holds its first meeting, which ever event occurs first, and shall serve without compensation at the pleasure of the City Commission, in accordance with the provisions of Article VI, Chapter 2, of the Code of Ordinances, and other applicable laws. SECTION THREE. This Resolution shall take effect immediately upon its adoption. APPROVED AND AUTHENTICATED t hi s 3 rd day of January, ATTEST: ED KELLEY Mayor JOSHUA FRUECHT City Clerk -1- S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-01A Charter Review Committee appointment (P G).doc

71 CITY MANAGER MEMORANDUM To: Through: From: The Honorable Mayor Kelley and City Commissioners Joyce A. Shanahan, City Manager Richard P. Goss, Planning Director Date: December 29, 2011 Subject: Brownfield Area Designation Introduction This is a resolution designating a Brownfield Area pursuant to the Florida Brownfield Redevelopment Act. Background On June 16, 2011 city staff brought to the City Commission a discussion item regarding the Florida Brownfield Program. It was recommended by staff that a series of workshops be held to gauge property owner interest in the financial benefits and opportunities a Brownfield Area designation could provide to properties. The Planning Board met on December 8, 2012 and held the first of two required public hearings on the Brownfield Program. After hearing no objections from the public, the Planning Board recommended approval 6-0 with one member absent. The public nd hearing before the City Commission is the 2 and final public hearing required by the Brownfield Redevelopment Act. Analysis A Brownfield designation is a formalized process involving a resolution, 2 public hearings and informational meetings. Basically, Brownfield Area designations offer three financial incentives that are available to all property owners within the designated area regardless whether environmental issues exist or not. These incentives include a tax credit of up to $2,500 for each new job above the first five jobs created within the designated area, a sales tax credit on building materials purchased to construct a housing project or mixed-use project in the designated area, as well as last resort loan guarantees from 50% to 75% of a total loan. All these incentives are offered through Enterprise Florida. The job bonus is an 80/20 cost sharing with the State. The State provides $2,000 and the City is required to provide the $500. In addition to the three incentives provided for area designation, those individual sites with environmental issues have a host of other benefits such as liability protection for the property owner and lender, and voluntary cleanup tax credits. There are also federal benefits that are available, including grants and the Brownfield Federal Tax Incentive that allows environmental cleanup costs to be fully deducted in the same year they occur. These federal and state incentives are flexible enough to dovetail quite nicely with the City s downtown redevelopment efforts as well as efforts to redevelop the vacant Memorial Hospital site and surroundings. The City is also empowered by Page 1 of 4

72 Section , F.S. to provide financial, regulatory or technical assistance beyond the state and Federal incentives provided. A maximum effort to outreach and inform affected property owners of this designation occurred during the summer. A series of four Brownfield Area workshops were conducted on July 26th, August 9 th, August 30th, and September 13th, of 2011 for the purpose of informing and educating property owners about the benefits and opportunities a Brownfield Area designation provides in redevelopment of properties. City staff, Florida Department of Environmental Protection representatives, and some attendees such as a representative from a local law firm who was knowledgeable of the Florida Brownfield Program assisted in helping property owners understand the program and the finer details of how the incentives worked at these workshops. In addition, individual flyers were sent to every property owner within the proposed designated area and Main Street sent group blasts for each meeting to individuals signed up to receive notice of events and happenings in the downtown. Staff was busy in addressing individual visits to the office as well as telephone calls inquiring about the program throughout the period of time when workshops were conducted. In addition, the city workshops were featured on local television as well as the News Journal (NJ) writing a story on the initiative. Workshop Results The overwhelming majority of participants attending the workshops realized the benefits of the program and understood it was voluntary and not regulatory. It was explained that the City was not changing the land use or zoning within the proposed brownfield area. Issues expressed by property owners more than once focused on the effect a brownfield designation would have on property values. It was reported in the News Journal (NJ) that this issue was posed to the Volusia County Property Appraiser s Office (PAO) by a NJ reporter and the Property Appraiser was quoted that he would not mark down a property because it was located in a brownfield designated area. It is also interesting that there are four CRAs in Volusia County with a brownfield designation. The purpose of the CRA is to improve property values and use the tax increment increase to make further improvements which in turn increases tax ratables. It would be counter intuitive for a CRA to place a brownfield designation over a Tax Increment Financing District if property values were negatively affected. Once the News Journal printed the PAO s opinion regarding the marking down of properties within a brownfield area, this issue was not brought up in the final three workshop meetings. Of note was a philosophical statement posed by a person stating that government assistance tends to make properties more competitive than properties located outside of the designated areas. Staff concurs with this observation because that is the point of the program - to offset the advantages greenfield development has over brownfield development. Advisory Board Needed The City is required to use an existing or establish an Advisory Committee that can advise the City Commission regarding redevelopment in the brownfield area. By statute, members of the advisory committee should be made up of residents adjacent to the brownfield area, businesses operating within the brownfield area, and other interested parties deemed appropriate. There are several options regarding the advisory committee: Page 2 of 4

73 1) Main Street could be used since they advise the City Commission on the downtown and it has an economic development purpose and interest. Thirty-six percent (36%) of the Granada Economic Opportunity Zone s acreage is within the CRA, while forty-four percent (44%) of the parcels are located within the CRA. Main Street by-laws permit the organization to work outside of the traditional downtown on economic development issues and the organization has a standing Economic Restructuring Committee in place; or 2) The Chamber through the Economic Prosperity Committee could also be used since the Chamber represents business interest in and outside of the CRA; or 3) Create a new advisory committee combining Main Street and the Chamber representatives. Creating another new advisory board is not recommended since the US 1 North/Ormond Crossing/Airport/Business Park designation will require a new advisory board. Wherever possible, if advisory boards exist that can serve the purpose intended, staff recommends using existing boards. Any current or future board designated as the advisory board for the Brownfield Program, will be required to comply with the Sunshine Laws. In Summary After reviewing the enabling Statute and operating program guidelines, it is clear that the Florida Brownfield Program is voluntary, not regulatory and designed to assist redevelopment through the use of financial tax incentives. The program has many more positives than negatives. The City s CRA Property Improvement Program helps revitalize the downtown area, and the goal of layering the Brownfield designation on top of the CRA incentives will make reinvestment become even more attractive. There are currently 10 designations in Volusia County all in cities. Four of those designations include Community Redevelopment Areas. The proposed area has been renamed from the Opportunity Zone to the Granada Economic Opportunity Zone since the city is pursuing another zone that would include US 1 North corridor, Ormond Crossing industrial/commercial area, and the City s Airport and business park. The area for designation is unchanged from the map presented to the City Commission at the June th 16 Commission meeting. There are 417 parcels involving 398 acres. Staff received no correspondence from property owners requesting their property be removed from the list of properties contained within the designated area. Budget Impact The job bonus incentive requires an 80%/20% split between the state and the city. An applicant is eligible for a job bonus incentive of $2,500 for each additional job that is created over and above an initial five jobs. The city s pro rata portion of the $2,500 is $500 of the job bonus incentive. Since the jobs are tied to redeveloping a property, funds within the redevelopment line item of the Redevelopment Trust Fund are sufficient and can be used for that portion of the CRA that is located within the Granada Economic Opportunity Zone. Funds for the city s match outside of the CRA will need to be appropriated from General Fund Reserves at the time an application for an eligible project is submitted to the City staff for review and City Commission action. If approved, the application package is then transmitted to Enterprise Florida. Page 3 of 4

74 Recommendation Staff is recommending the City Commission approve this resolution designating a Brownfield Area as described and depicted therein pursuant to the Florida Brownfield Redevelopment Act. Reviewed by: /s/ Theodore S. MacLeod, P.E. Assistant City Manager / Public Works Director /s/ Kelly McGuire, Finance Director Approved by: /s/ Joyce A. Shanahan, City Manager Page 4 of 4

75 Briefing Paper Ormond Beach Brownfield Area Designation City Commission January 3, 2012

76 Brownfield Designation Workshop When* July 26, 2011 Where City Hall Training Room 22 S. Beach Street August 9, 2011 Casements 25 Riverside Drive August 30, 2011 Casements 25 Riverside Drive September 13, 201 City Hall Training Room 22 S. Beach Street *All meeting times 6:00 pm Sponsors: City of Ormond Beach Ormond Beach Main Street

77 Flyer

78 Presentation Overview What is a Brownfield? What are Brownfield areas? What are Brownfield sites Brownfield Area Brownfield Area Boundary Designation Process Benefits of designating an area Benefits to designating a site Neighboring communities in Volusia County with designations Statewide use of such designations Where do we go from here? Want to know more?

79 What is a Brownfield? Brownfield's are abandoned, idled, or underused industrial and commercial properties where expansion, reuse, or redevelopment may be complicated by real or perceived environmental contamination.

80 What are Brownfield Areas? Brownfield area means a contiguous area of one or more brownfield sites, some of which may not be contaminated, and which has been designated by a local government by resolution. Such areas may include all or portions of community redevelopment areas, enterprise zones, empowerment zones, other such designated economically deprive communities and areas, and Environmental Protection Agency designated brownfield pilot projects (4) F.A.C.

81 What Are Brownfield Sites? Brownfield site means real property, the expansion, redevelopment or reuse of which may be complicated by actual or perceived environmental contamination (3) F.A.C.

82 Brownfield Area Designation Granada Economic Opportunity Zone** **Used interchangeably with a Brownfield designation to provide location recognition. It is not an identification of contaminated sites. It s more about redevelopment. It also is about incentives, on the federal, state, and local level to facilitate (re)development.

83 Brownfield Area Boundary

84 Designation Process

85 Economic incentives that benefit area designation Bonus Refund for Job Creation up to $2,500 per job 50% loan guarantee on site rehabilitation and development & 75% if property is redeveloped for affordable housing/health care providers Sales tax Credit on Building Materials for Affordable Housing Projects & mixed-use affordable housing Budgeted by State Fiscal Year July-June Applicable to any property within a designated brownfield area provided eligibility criteria for each incentive are met

86 Economic incentives that benefit site designation Brownfield Sites with executed BSRA All benefits of Brownfield area Regulatory Framework for Cleanup (Rules and , F.A.C.) Dedicated FDEP staff with expedited technical review Liability Protection Voluntary cleanup tax credits Memorandum of Understanding with EPA

87 BSRA Liability Protections Owners and Redevelopers (PRFBSRs) Relief from further liability for site rehabilitation Section (2)(a), F.S. Does not limit third party rights for damages Section (2)(b), F.S. Available if BSRA terms met Lenders Serving in fiduciary capacity - loan Did not Cause/contribute to contamination Control/manage site rehabilitation Economic incentives do not apply during the lender s ownership

88 Voluntary Cleanup Tax Credits Tax Credit Type Site Rehab Site Rehab Completion Frequency Annually Once Max Credit for Costs incurred after % $500,000 25% $500,000 Affordable housing Health Care Facility Solid Waste Budgeted by Calendar Year Once Once Once 25% $500,000 25% $500,000 50% $500,000

89 Voluntary Cleanup Tax Credits Credits on Florida corporate income tax May be transferred once $2 million annual cap If exhausted, first priority in next year's allocation Credits awarded for eligible work Site rehabilitation Solid waste removal, transport and disposal Bonus credits awarded for site rehabilitation only SRCO Affordable housing

90 Designated Brownfield Areas in Volusia County Daytona Beach Area ERAU, airport Holly Hill Special Economic Enhancement District (Downtown CRA) New Port LLP (Port Orange) NSB Brownfield Enhancement Zone (Downtown CRA) NSB Airport (recent designation) Port Orange Riverwalk Project Area ( Downtown CRA) South Daytona Florida Brownfields Economic Enhancement Area (Downtown CRA) William Lofts (Daytona Beach) 1601 Tiona Road (NSB) Central Business Corridors (Daytona Beach)

91 Statewide Brownfield Highlights New Jobs - January 2009 to June ,336 new direct jobs, 3,392 new indirect jobs New Capital Investment - $387,903,000 Since Program Inception in ,163 new direct jobs, 16,529 new indirect jobs Capital Investment - $1,679,539,591

92 Want to know more? Brownfields elds.htm FDEP Central District Orlando Brownfield Coordinator Voluntary Cleanup Tax Credit Program Enterprise Florida Joe Bell 800 N. Magnolia Ave., Suite 1100 Orlando, FL Phone: (407) City Contact for local designation process: Ric Goss, Planning Director

93 Where do we go from here? Based upon property owner attendance no more educational workshops are needed. Staff has received no requests from property owners to opt out of the designation (need to provide a letter to the city requesting parcel deletion). Advisory board will need to be established. An existing board may be used if the mission is (re) development related. Board will be subject to Sunshine laws. Planning Board recommended approval at 1 st public hearing on Designation occurs upon favorable action by CC on Resolution. Resolution forwarded to FDEP.

94 RESOLUTION NO A RESOLUTION DESIGNATING CERTAIN LANDS TO BE A BROWNFIELD AREA, INCLUDING LANDS THAT ARE SITUATED INSIDE AND OUTSIDE THE CITY S COMMUNITY REDEVELOPMENT AREA; PROVIDING LEGISLATIVE FINDINGS; AUTHORIZING THE USE OF ECONOMIC AND TAX INCENTIVES TO FACLITATE AND PROMOTE THE REHABILITATION OF LANDS IN THE BROWNFIELD AREA; AUTHORIZING THE ESTABLISHMENT OF AN ADVISORY COMMITTEE; DIRECTING THE CITY CLERK TO NOTIFY THE FLORIDA DEPARTMENT OF ENVIRONMENTAL PROTECTION REGARDING THE BROWNFIELD AREA DESIGNATION; AND SETTING FORTH AN EFFECTIVE DATE. WHEREAS, the stated intent of the Florida legislature in enacting the Brownfields Redevelopment Act ( Act ), sections through , Florida Statutes, is to reduce public health and environmental hazards on commercial and industrial sites in order to promote employment, housing, recreation and open space areas; to promote the reuse of industrial land in accordance with sound land use policies that will prevent the premature development of farmland, open space areas, and natural areas and to reduce public costs for installing new water, sewer, and highway infrastructure; to encourage the use of Brownfield Sites in order to encourage the efficient use of public facilities and services, land and other natural resources; to promote the use of incentives to encourage responsible persons to voluntarily develop and implement cleanup plans without the use of taxpayer funds or the need for enforcement action by state and local governments; to promote clear and predictable remediation efforts to eliminate environmental and public health hazards; to promote site rehabilitation to eliminate the risk that contamination may pose to the environment and public health, taking into account the current and future use of land and water and the degree to which contamination may spread and place S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 1

95 the public or environment at risk; and to eliminate community decline, including disease and illness, crime, educational and employment opportunities, and infrastructure decay; and that the rehabilitation and redevelopment of Brownfield Sites can lead to an improved quality of life and health benefits; and WHEREAS, section of the Act defines: a) Brownfield Area to mean a contiguous area of one or more Brownfield Sites, some of which may not be contaminated, and which may include all or part of community redevelopment areas, enterprise zones, empowerment zones, other designated economically deprived areas, and Brownfield Site pilot projects that have been designated by the Environmental Protection Agency. b) Brownfield Site to mean real property, the expansion, redevelopment, or reuse of which may be complicated by actual or perceived environmental Contamination. c) Contaminated Site to mean any contiguous land, sediment, surface water, or groundwater areas that contain Contaminants that may be harmful to human health or the environment. d) Contaminant to mean any physical, chemical, biological, or radiological substance present in any medium that may result in adverse effects to human health or the environment or which creates an adverse nuisance, organoleptic, or anesthetic condition in groundwater. WHEREAS, the Act provides authority to local government agencies to designate certain lands to be a Brownfield Area; and to use the full range of economic and tax incentives available to facilitate and promote the rehabilitation of Brownfield Areas to help eliminate public health and environmental hazards, and to promote the creation of jobs and economic development, specifically including: Financial incentives and local incentives for redevelopment: a) Tax increment financing through community redevelopment agencies as provided in Chapter 163 (Part III), Florida Statutes. S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 2

96 b) Enterprise zone tax exemptions for business as provided in Chapters 196 and 290, Florida Statutes. c) Safe neighborhood improvement districts as provided in sections through , Florida Statutes. d) Waiver, reduction, or limitation by line of business with respect to business taxes as provided in Chapter 205, Florida Statutes. e) Tax exemption for historic properties as provided in section , Florida Statutes. f) Residential electricity exemption of up to the first 500 kilowatts of use may be exempted from municipal public service tax as provided in section (6), Florida Statutes. g) Minority business enterprise programs as provided in section , Florida Statutes. h) Electric and gas tax exemptions as provided in section (6), Florida Statutes. i) Economic development tax abatement as provided in section , Florida Statutes. j) Grants, including community development block grants. k) Pledging of revenue to secure bonds. l) Low-interest revolving loans and zero-interest loan pools. m) Local grant programs for façade, storefront, signage and other business improvements. n) Governmental coordination of loan programs with lenders, such as micro loans, business reserve fund loans, letter of credit enhancements, gap financing, lease and sublease loans, and private equity. o) Payment schedules over time for payment of fees, within criteria, and marginal cost pricing. Regulatory incentives: a) Absorption by the city of developers concurrency needs. S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 3

97 b) Developers performance of certain analysis. c) Exemptions and lessening of state and local review requirements. d) Water and sewer regulatory incentives. e) Waiver of transportation impact fees and permit fees. f) Zoning incentives to reduce review requirements for redevelopment changes in use and occupancy; establishment of code criteria for specific uses; and institution of credits for previous use within the area. g) Flexibility in parking and buffer zone standards. h) Environmental management through specific code criteria and conditions allowed by law. i) Maintenance standards and activities by ordinance and otherwise, and increased security and crime prevention measures available through special assessments. j) Traffic-calming measures. k) Historic preservation ordinances, loan programs, and review and permitting process. l) One-stop permitting and streamlined development and permitting process. Technical assistance incentives: a) Expedited development applications. b) Formal and informal information on business incentives and financial programs. c) Site design assistance. d) Marketing and promotion of projects or areas. WHEREAS, section of the Act requires the following factors to be considered in determining the areas to be designated a Brownfield Area: a) Whether the Brownfield Area warrants economic development and has a reasonable potential for such activities; S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 4

98 b) Whether the proposed area to be designated represents a reasonably focused approach and is not overly large in geographic coverage; c) Whether the area has potential to interest the private sector in participating in rehabilitation; and d) Whether the area contains sites or parts of sites suitable for limited recreational open space, cultural, or historical preservation purposes. WHEREAS, section of the Act further provides that a Brownfield Area may be designated as such, provided that: a) A person who owns or controls a potential Brownfield Site is requesting the designation and has agreed to rehabilitate and redevelop the Brownfield Site; b) The rehabilitation and redevelopment of the proposed Brownfield Site will result in economic productivity of the area, along with the creation of at least five (5) new permanent jobs at the Brownfield Site that are full-time equivalent positions not associated with the implementation of the Brownfield Site rehabilitation agreement and that are not associated with redevelopment project demolition or construction activities pursuant to the redevelopment of the proposed Brownfield Site or Area; except that the job creation requirement shall not apply to the rehabilitation and redevelopment of a Brownfield Site that will provide affordable housing (as defined in section , Florida Statutes) or the creation of recreational areas, conservation areas, or parks. c) The redevelopment of the Brownfield Site is consistent with the local comprehensive plan and is a permittable use under applicable land development regulations. d) Notice of the proposed rehabilitation of the Brownfield Area has been provided (in a newspaper of general circulation in the affected area, and being at least 16 square inches in size) to neighbors and nearby residents, and that those persons have been afforded an opportunity to provide comments and suggestions about the rehabilitation. e) The person proposing the area for designation has provided reasonable assurance that he or she has sufficient financial resources to implement and complete the rehabilitation agreement and redevelopment of the Brownfield Site. WHEREAS, section (1) of the Act provides that a resolution designating a Brownfield Area must include a map that clearly delineates the specific parcels that are to be S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 5

99 included in the Brownfield Area or a less-detailed map accompanied by a detailed legal description of the Brownfield Area; and WHEREAS, the lands that are proposed to be designated a Brownfield Area include lands that are both inside and outside of the city s community redevelopment area; and WHEREAS, section (1) of the Act requires a municipality to adopt a resolution designating a Brownfield Area in accordance with the procedures outlined in section , Florida Statutes, and that notice for the public hearings must be in the form established in section (3)(c)2, Florida Statutes; and WHEREAS, section (2)(a) of the Act further provides that if a proposed Brownfield Area is outside community redevelopment areas, enterprise zones, empowerment zones, closed military bases, or designated Brownfield pilot project areas, at least one of the public hearings shall be conducted as reasonably practicable to the area to be designated; and WHEREAS, section (2)(a) of the Act and section (3)(c)2, Florida Statutes requires two public hearings for the designation of the lands that are proposed to be designated a Brownfield Area; and WHEREAS, public workshops were conducted regarding the intention to designate a Brownfield Area on July 26, August 9, August 30, and September 13, 2011 at Ormond Beach city hall and The Casements (with written notice having been provided to each affected property owner and published on the city s website and in the News Journal) for the purpose of informing property owners and the general public about the benefits and opportunities that a Brownfield Area designation may provide regarding the redevelopment of lands so designated; and S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 6

100 WHEREAS, the matters set forth in this resolution were considered at a public hearing before the city s planning board on December 8, 2011, and were considered at a public hearing before the city commission on January 3, 2012; and WHEREAS, the city has not received a written request from any property owner in accordance with section (1) of the Act requesting that his or her lands be removed from the proposed Brownfield Area; and WHEREAS, the city commission of the city of Ormond Beach has determined that it is in the best interest of the health, welfare and safety of its citizens and the general public to designate the lands legally described and depicted in Exhibit A attached hereto to be a Brownfield Area; now therefore, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF ORMOND BEACH, FLORIDA, THAT: SECTION ONE. The city commission makes the following findings: a) Beneficial Communities, LLC (and/or Beneficial Communities Development, LLC), 2206 Jo-An Drive, Sarasota, Florida, has requested by letter dated June 3, 2011, that certain lands it owns being situated at 765 West Granada Boulevard, be designated as a Brownfield Area for the purpose of rehabilitation as an affordable housing development. A copy of the written request is attached hereto as Exhibit B. Beneficial Communities, LLC has the financial resources to rehabilitate the subject Brownfield Site. b) The city s planning director proposes that the city commission designate the lands that are generally depicted on the map and that are legally described in Exhibit A attached hereto to be a Brownfield Area. The map and legal description attached as Exhibit A complies with the requirements of section of the Act. The lands that are the subject of the proposed designation include the lands that are the subject of the request by Beneficial Communities, LLC, as well as lands that are situated both inside and outside the city s community redevelopment area. S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 7

101 c) The public notice and public hearing requirements as set forth in section (2)(a) and (3)(c)2, Florida Statutes, regarding the designation of lands to be a Brownfield Area have been satisfied. d) The city has not received a written request from any property owner in accordance with section (1) of the Act, requesting that his or her lands be removed from the proposed Brownfield Area. e) The redevelopment of the Brownfield Area will be consistent with the city s comprehensive land use plan and land development regulations. SECTION TWO. The city commission has considered the following factors and has determined that the lands that are the subject of the proposed Brownfield Area designation: a) Warrant economic development and have a reasonable potential for such activities. b) Represents a reasonably focused approach for such designation and is not overly large in geographic coverage. c) Has the potential to interest the private sector in participating in the rehabilitation of the designated lands. e) Contains sites or parts of sites that are suitable for limited recreational open space, cultural, or historical preservation purposes. SECTION THREE. The city commission hereby declares and designates those lands that are generally depicted in the map and legally described in Exhibit A attached hereto to be a Brownfield Area in accordance with the Act, and authorizes use of the full range of economic and tax incentives available to facilitate and promote the rehabilitation of the Brownfield Area, specifically including: Financial incentives and local incentives for redevelopment: a) Tax increment financing through community redevelopment agencies as provided in Chapter 163 (Part III), Florida Statutes. S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 8

102 b) Enterprise zone tax exemptions for business as provided in Chapters 196 and 290, Florida Statutes. c) Safe neighborhood improvement districts as provided in sections through , Florida Statutes. d) Waiver, reduction, or limitation by line of business with respect to business taxes as provided in Chapter 205, Florida Statutes. e) Tax exemption for historic properties as provided in section , Florida Statutes. f) Residential electricity exemption of up to the first 500 kilowatts of use may be exempted from municipal public service tax as provided in section (6), Florida Statutes. g) Minority business enterprise programs as provided in section , Florida Statutes. h) Electric and gas tax exemptions as provided in section (6), Florida Statutes. i) Economic development tax abatement as provided in section , Florida Statutes. j) Grants, including community development block grants. k) Pledging of revenue to secure bonds. l) Low-interest revolving loans and zero-interest loan pools. m) Local grant programs for façade, storefront, signage and other business improvements. n) Governmental coordination of loan programs with lenders, such as micro loans, business reserve fund loans, letter of credit enhancements, gap financing, lease and sublease loans, and private equity. o) Payment schedules over time for payment of fees, within criteria, and marginal cost pricing. Regulatory incentives: a) Absorption by the city of developers concurrency needs. S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 9

103 b) Developers performance of certain analysis. c) Exemptions and lessening of state and local review requirements. d) Water and sewer regulatory incentives. e) Waiver of transportation impact fees and permit fees. f) Zoning incentives to reduce review requirements for redevelopment changes in use and occupancy; establishment of code criteria for specific uses; and institution of credits for previous use within the area. g) Flexibility in parking and buffer zone standards. h) Environmental management through specific code criteria and conditions allowed by law. i) Maintenance standards and activities by ordinance and otherwise, and increased security and crime prevention measures available through special assessments. j) Traffic-calming measures. k) Historic preservation ordinances, loan programs, and review and permitting process. l) One-stop permitting and streamlined development and permitting process. Technical assistance incentives: a) Expedited development applications. b) Formal and in formal information on business incentives and financial programs. c) Site design assistance. d) Marketing and promotion of projects or areas. And further provided that: a) The rehabilitation and redevelopment of a proposed Brownfield Site will result in economic productivity of the area, along with the creation of at least five (5) new permanent jobs at the Brownfield Site that are full-time equivalent positions not associated with the implementation of the Brownfield Site rehabilitation agreement and that are not associated with redevelopment project demolition or construction S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 10

104 activities pursuant to the redevelopment of the proposed Brownfield Site or Area; except that the job creation requirement shall not apply to the rehabilitation and redevelopment of a Brownfield Site that will provide affordable housing (as defined in section , Florida Statutes) or the creation of recreational areas, conservation areas, or parks. b) Designation of the Brownfield Area shall not render liable the city (including its elected and appointed officials and employees) for the cost of site rehabilitation or source removal, as those terms are defined in section (17) and (18), Florida Statutes, or for any other costs that may arise or be incurred, including but not limited to incidental or consequential costs. SECTION FOUR. The city commission shall designate by separate resolution or ordinance, an advisory committee in accordance with the requirements of section (4) of the Act. Members of the advisory committee shall include residents within or adjacent to the Brownfield Area, businesses operating within the Brownfield Area, and others deemed appropriate by the city commission. The duties of the advisory committee shall be to: a) Hold public meetings and seek public participation and comments regarding the rehabilitation and redevelopment of the Brownfield Area. b) Review draft rehabilitation plans to ensure that the criteria described in section (5) of the Act have been addressed. c) Review proposed redevelopment agreements and provide comments to the city commission. d) Review and provide comments regarding site assessment reports or technical documents for a proposed course of action. e) Any person responsible for the rehabilitation of a Brownfield Site must notify the advisory committee of the intent to rehabilitate and redevelop the Brownfield Site before executing a Brownfield Site Rehabilitation Agreement, and provide the advisory committee with a copy of the draft plan for site rehabilitation that addresses the conditions required by section (5) of the Act. f) Other duties as prescribed by the Act. S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 11

105 SECTION FIVE. The City Clerk, or his designee, shall notify the Florida Department of Environmental Protection in writing and provide a copy of this Resolution setting forth the designation of the property depicted and legally described in Exhibit A to be a Brownfield Area, for the purposes set forth in the Act. SECTION SIX. This Resolution shall take effect immediately upon its adoption. APPROVED AND AUTHENTICATED this 3 rd day of January, ATTEST: ED KELLEY Mayor JOSHUA FRUECHT City Clerk S:\CITY COMMISSION ITEMS\RESOLUTION\2012\ \12-02A Brownfield designation (P G).doc 12

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111 PLANNING CITY OF ORMOND BEACH FLORIDA M E M O R A N D U M TO: FROM: Chairman Thomas and Planning Board Members Richard P. Goss, AICP, Director of Planning DATE: SUBJECT: CC: Brownfield Designation Staff Report for the Granada Economic Opportunity Zone City Attorney Randy Hayes and City Manager Joyce Shanahan I. INTRODUCTION On June 16, 2011 the City Commission, pursuant to a property owner s request, authorized staff to examine the feasibility of designating an area and conduct a series of workshops to inform the property owners of the financial, regulatory and possible negative perceptions of such a designation. Florida Department of Environment Protection, the state agency responsible for the Brownfield Redevelopment Program, frames the program as a smart growth approach to community, economic development, environmental, land use, tax base and urban redevelopment issues. Brownfield redevelopment is one area where environmental and economic development goals further each other. In Florida, cities and counties throughout the state have designated Brownfield areas as a priority due to the emphasis placed on economic and urban redevelopment initiatives. The current administration in Tallahassee for the State has placed a priority on the Brownfield Redevelopment Program because of its proven record in job creation. The City s Brownfield Program is being presented to the Planning Board as a public hearing item pursuant to the Board s authority outlined in Section 1-15 C1c. II. EFFECT OF FLORIDA S BROWNFIELD REDEVELOPMENT PROGRAM Volusia County and all the municipalities participated in the 2009 Smart Growth Initiatives that was part of the One Region initiative of the Regional Planning Council. Throughout the Halifax watershed, the development trend has been to spread out. As suburbanization continues, more of the rural landscape is consumed. Developing unused land in the outlying areas of Volusia County or Ormond Beach for commercial, business or residential use means that the City is not only spreading out but encouraging population to locate to outlying areas. To affect this trend, the Brownfield Program is designed to redevelop previously used sites including Brownfield sites, locating needed jobs to the urban area and revitalizing the city s downtown and commercial corridors where shopping patterns have changed. The relocation

112 Chairman Thomas and Planning Board Members City Attorney Randy Hayes and City Manager Joyce Shanahan Page 2 of Tire Kindom from downtown to Williamson is a good example of a business pursuing their customer base. To understand the Florida Brownfield Redevelopment Program, three definitions are provided: 1. Brownfield's are abandoned, idled, or underused industrial and commercial properties where expansion, reuse, or redevelopment may be complicated by real or perceived environmental contamination. 2. Brownfield area means a contiguous area of one or more Brownfield sites, some of which may not be contaminated, and which has been designated by a local government by resolution. Such areas may include all or portions of community redevelopment areas, enterprise zones, empowerment zones, other such designated economically deprive communities and areas, and Environmental Protection Agency designated Brownfield pilot projects (4) F.A.C. 3. Brownfield site means real property, the expansion, redevelopment or reuse of which may be complicated by actual or perceived environmental contamination (3) F.A.C. III. WHAT IS NEEDED TO ACHIEVE DESIGNATION AS A BROWNFIELD AREA IN ORMOND BEACH? Staff s initial proposal to the City Commission to get the discussion started was to make a portion of the downtown community development district a Brownfield designation to take advantage of the financial incentives related to mix use developments. The City s form based code requires new mixed use buildings to have upper stories. The financial incentives that support mix use development could well reduce the cost of complying with this requirement. For example, property owners in the Downtown could receive a Property Improvement Grant of up to $50,000, a job bonus refund for any jobs created for the commercial on the ground floor, building sale tax refund for the improvements on the second floor, and be eligible for a 50% to 75% guaranteed loan from Enterprise Florida as a last resort. According to the 2010 US Census, the median income of people ages 24 5o 29 is barely $31,000 before taxes. This translates to being able to pay, at most, a monthly rent of $850. A market for small apartments on an upper story downtown building exists from the job creation by additional restaurants and entertainment venues that will be added to the downtown. The other incentives will help further improve the area and boost the economy around the vacant hospital site. Main Street supported pursuing this designation and was a willing cosponsor of the four workshops since a significant portion of the redevelopment district is in the Brownfield designated boundary area map. A maximum effort to outreach and inform affected property owners of this designation occurred during this past summer. A series of Brownfield Area workshops were conducted on July 26th, August 9 th, August 30th and September 13th, of 2011 for the purpose of informing and educating property owners about the benefits and opportunities a Brownfield Area designation provides in redevelopment of properties. City staff, Florida Department of Environmental Protection representatives, and some attendees such as a representative from a local law firm who was knowledgeable of the Florida Brownfield Program assisted in helping property owners understand the program and the finer details of how the incentives worked at these workshops. In addition, individual flyers were sent to every property owner within the Brownfield Staff Report

113 Chairman Thomas and Planning Board Members City Attorney Randy Hayes and City Manager Joyce Shanahan Page 3 proposed designated area and Main Street sent group blasts for each meeting to individuals signed up to receive notice of events and happenings in the downtown. Staff was busy in addressing individual visits to the office as well as telephone calls inquiring about the program throughout the period of time when workshops were conducted. In addition, the city workshops were featured on local television as well as the News Journal (NJ) writing a story on the initiative. The program was explained as being voluntary and not regulatory. It was also explained that the City was not changing the land use or zoning within the proposed Brownfield area. Issues expressed by property owners more than once focused on the effect a Brownfield designation would have on property values. It was reported in the News Journal (NJ) that this issue was posed to the Volusia County Property Appraiser s Office (PAO) by a NJ reporter and the Property Appraiser was quoted that he would not mark down a property because it was located in a Brownfield designated area. It is also interesting that there are four CRAs in Volusia County with a Brownfield designation. The purpose of the CRA is to improve property values and use the tax increment increase to make further improvements which in turn increases tax ratables. It would be counter intuitive for a CRA to place a Brownfield designation over a Tax Increment Financing District if property values were negatively affected. Once the News Journal printed the PAO s opinion regarding the marking down of properties within a Brownfield area, this issue was not brought up in the final three workshop meetings. Of note was a philosophical statement posed by a person stating that government assistance tends to make properties more competitive than properties located outside of the designated areas. Staff concurs with this observation because that is the point of the program - to offset the advantages of vacant land in outlying areas of the City has over Brownfield development. The proposed boundary area is depicted as Map 1 below: Map 1 Brownfield Area Boundary A Brownfield designation according to Florida Statute 376 is a formalized process involving a resolution, 2 public hearings and informational meetings. The public hearing before the Planning Board serves as one of those required public hearings. Brownfield Staff Report

114 Chairman Thomas and Planning Board Members City Attorney Randy Hayes and City Manager Joyce Shanahan Page 4 IV. FINANCIAL INCENTIVES TO BROWNFIELD AREA DESIGNATION Brownfield Area designations offer three financial incentives that are available to all property owners within the designated area regardless whether environmental issues exist or not on a site. These incentives include: 1. A tax credit of up to $2,500 for each new job above the first five jobs created within the designated area. 2. A sales tax credit on building materials purchased to construct a housing project or mixed-useproject in the designated area. 3. A last resort loan guarantees from 50% to 75% of a total loan. All these incentives are offered through Enterprise Florida. The one time job bonus is an 80/20 cost sharing with the State. The State provides $2,000 and the City provides $500. V. FINANCIAL INCENTIVES FOR BROWNFIELD SITES In addition to the three incentives provided for area designation, individual sites with environmental issues have a host of other benefits such as liability and legal protection for the property owner and lender, and voluntary cleanup tax credits. There are also federal benefits that are available, including grants and the Brownfield Federal Tax Incentive that allows environmental cleanup costs to be fully deducted in the same year they occur. These federal and state incentives are flexible enough to dovetail quite nicely with the City s downtown redevelopment efforts as well as efforts to redevelop the vacant Memorial Hospital site and surroundings. The City is also empowered by Section , F.S. to provide financial, regulatory or technical assistance beyond the state and Federal incentives provided. There is a host of barriers of one kind or another that make intown redevelopment noncompetitive with vacant property located on the outlying areas of the city. Legal Liability Legal liability for potential contaminated sites often deters property owners and potential buyers from investigating contamination, cleaning up or buying a site. The Florida Brownfield Redevelopment Program provides a mechanism to protect potential purchasers willing to conduct a cleanup from liability for past contamination caused by another party. Lender Liability Lender liability for Brownfield sites often remain a fear in the banking community but the Florida Brownfield Redevelopment Program provides a mechanism to protect lenders serving in a fiduciary capacity for a loan. If a Lender did not cause or contribute to contamination, then liability does not exist. If the Lender did not control or manage the site rehabilitation, liability does not exist. Cleanup Standards- Many would be purchasers of property once discovering that there may be potential contamination on sites, shy away from such sites because there is a lack of uncertainty. Technical uncertainties such as questions about the duration of the cleanup and questions about when clean is clean because environmental remediation is not an exact science. The Florida Brownfield Redevelopment Program employs a Risk- Brownfield Staff Report

115 Chairman Thomas and Planning Board Members City Attorney Randy Hayes and City Manager Joyce Shanahan Page 5 based corrective action (RBCA), in which cleanup levels are based on the actual (not theoretical) risks posed by contaminants. Brownfield s Site Rehabilitation Agreements are used (BSRA) that provides the regulator authority and public assurance that the site rehabilitation will be conducted in accordance with the statute and the Brownfield s Cleanup Criteria Rule while providing the property owner liability protection. The BSRA contains various commitments by the person responsible for site rehabilitation remediation, and provides milestones for completion of site rehabilitation tasks. The agreement also contains a commitment by the regulatory authority to review technical reports according to an agreed upon schedule. The agreement once fulfilled requires the State to issue a Site Rehabilitation Completion Order (SRCO) indicating that there are no further requirements for clean up of a site (no reopeners). VI. ADVISORY BOARD REQUIRED The City is required to use an existing or establish an Advisory Committee that can advise the City Commission regarding redevelopment in the Brownfield area. By statute, members of the advisory committee should be made up of residents adjacent to the Brownfield area, businesses operating within the Brownfield area, and other interested parties deemed appropriate. There are several options regarding the advisory committee: 1. Main Street could be used since they advise the City Commission on the downtown and it has an economic development purpose and interest. Thirty-six percent (36%) of the Granada Economic Opportunity Zone s acreage is within the CRA, while forty-four percent (44%) of the parcels are located within the CRA. Main Street bylaws permit the organization to work outside of the traditional downtown on economic development issues and the organization has a standing Economic Restructuring Committee in place; or 2. The Chamber through the Economic Prosperity Committee could also be used since the Chamber represents business interest in and outside of the CRA; or 3. A new advisory committee combining Main Street and the Chamber representatives could be created. A new advisory board is not recommended since the US 1 North/Ormond Crossing/Airport/Business Park Brownfield designation will require a new advisory board. Wherever possible, if advisory boards exist that can serve the purpose intended, staff recommends using existing boards. Any current or future board designated as the advisory board for the Brownfield Program, will be required to comply with the Sunshine Laws. VII. CURRENT BROWNFIELD INITIATIVES IN VOLUSIA COUNTY/CENTRAL DISTRICT/STATE The following Brownfield designations exist in Volusia County and are depicted in Map 2 below. Brownfield Staff Report

116 Chairman Thomas and Planning Board Members City Attorney Randy Hayes and City Manager Joyce Shanahan Page 6 Daytona Beach Area Aero Park - (Airport, Aero Industrial Park, ERAU, and Clyde Morris Boulevard properties) Holly Hill Special Economic Enhancement District (CRA-downtown) New Port LLP (Port Orange) (Individual property) NSB Brownfield Enhancement Zone (CRA-downtown) NSB Airport (recent designation) River walk Project Area (CRA Downtown Port Orange) South Daytona Florida Brownfields Economic Enhancement Area (CRAdowntown) William Lofts (Daytona Beach) (Individual property in downtown) 1601 Tionia Road (NSB) (Individual property) Central Business Corridors (Daytona Beach) Map 2 Volusia County Brownfield Designations Central District: 60 Brownfield Designation Areas (1 in 2011 so far) 39,100 acres in Brownfield Area Designations >433 acres in Brownfield Sites (1% of Brownfield Area) Statewide: 262 Brownfield Designation Areas >198,000 acres in Brownfield Area Designations >39,100 acres in Brownfield Sites (2% of Brownfield Area) VIII. ECONOMIC SUCCESS OF THE BROWNFIELD REDEVELOPMENT PROGRAM Brownfield Staff Report