Ave Maria Fiscal Impact Analysis Model (FIAM) Review Collier County Clerk of the Circuit Court February 2012 1
WHY IS THE CLERK HERE TODAY? 2
What is the FIAM? The Fiscal Impact Analysis Model is the county’s adopted model designed to indicate the financial benefit or detriment of a development, as a whole, to the taxpayers of Collier County. 3
Requirement for the FIAM: Collier County Growth Management Plan Future Land Use Element Ordinance No. 2003-07 and 2007-18 4
Requirement for the FIAM: Land Development Code 4.08.07 L.1 5
Land Development Code 4.08.07 L.2 & 3 6
Ave Maria Stewardship Receiving Area (SRA) requirement for the FIAM Resolution No. 2005-234A 7
Ave Maria Stewardship Receiving Area (SRA) requirement for the FIAM 8
BCC Meeting 10/23-24/2007 Item #10R 9
BCC Meeting 10/23-24/2007: Discussion of FIAM Adoption 10
FIAM Training Manual Prepared by Dr. Fishkind 11
Original 5-Year Fiscal Monitoring Report Submitted to County Staff by WilsonMiller July 19, 2010 12
Final 5-Year Fiscal Monitoring Report Prepared by Fishkind & Assoc. Submitted to BCC 12/14/2010 13
BCC Meeting 12/14/2010 Item #10I 14
FIAM Meeting Timeline • March 23, 2011: Clerk’s Office, Fishkind & Assoc. and Barron Collier Co. • March 28, 2011: Clerk’s Office and County Staff • May 11, 2011: Clerk’s Office and County Staff • May 25, 2011: Clerk’s Office and County Staff • May 31, 2011: Clerk’s Office, County Staff, Fishkind & Assoc. and Barron Collier Co. • June 03, 2011: Clerk’s Office and County Staff • August 16, 2011: Clerk’s Office , County Staff, Fishkind & Assoc. and • Barron Collier Co. • August 23, 2011: Revised model submission given to Clerk’s Office by Fishkind & Assoc. and Barron Collier Co. • February 6, 2012: Clerk’s Office, County Staff • February 11, 2012: Clerk’s Office, Fishkind & Assoc. and Barron Collier Co. 15
The Clerk’s Office does not concur with the outputs of the model that was submitted to the BCC in 2010 due to the following concerns: The Ave Maria development is not evaluated as a whole; build-out projections were not provided. Ad-valorem revenues inflated due to an incorrect taxable value input for the Ave Maria SRA. Land values of contributions by Ave Maria appear to be different than what the county has determined the value to be. Impact fee credits were used as a revenue in the model. Formulas used to calculate road costs were different than both the 2005 submission and version 7.5, which the BCC was told was used. 16
Horizon Year Projections not Provided 17
Future Development Projections Included in Original 2005 Submission; Excluded in 2010 and 2011 2005 Submission: build-out shown through 2016 5,120 Units Projected for First 5 Years 2010 Submission: build-out not shown Input for Development in AREA 1 (Urban Core / Activity Center) or other dense, urban place Existing 2010 2011 2012 2013 2014 2015 2016 2009 Residential Units Vacant Acreage 0 0 0 0 0 0 0 0 0 Single-Family - Type 1 0 0 0 0 0 0 0 0 Single-Family - Type 2 231 0 0 0 0 0 0 0 374 Units Single-Family - Type 3 0 0 0 0 0 0 0 0 Single-Family - Type 4 0 0 0 0 0 0 0 0 Built in First Multifamily-For Sale Condo 143 0 0 0 0 0 0 0 Multifamily-For Sale Townhome 0 0 0 0 0 0 0 0 5 Years Multifamily-For Sale Other 0 0 0 0 0 0 0 0 Multifamily-Rental Apartments 0 0 0 0 0 0 0 0 Multifamily-ACLF/Nursing Home beds 0 0 0 0 0 0 0 0 Multifamily-Rental Other 0 0 0 0 0 0 0 0 Mobile Homes 0 0 0 0 0 0 0 0 18 Total 374 0 0 0 0 0 0 0
Summary of Results: 2010 and 2011 Submissions 2010 Submission 2011 Submission Without horizon year projections, the total impact of the project to the taxpayers of Collier County is unknown. 19
Taxable Value of the Ave Maria SRA 20
Ave Maria Town maps from the Property Appraiser’s Office Cross-hatched area = 5,027 acres Delineates SRA acreage only, not the entire Ave Maria Stewardship District of 10,820 acres 21
Ave Maria Taxable Value in the 2010 and 2011 FIAM vs. Property Appraiser’s Value Taxable Value Reported in the FIAM = $ 182,755,998 Taxable Value per P.A. = $ 141,782,128 22
Impact of Correction to Ave Maria Taxable Value in 2010 and 2011 FIAM Submissions x = Taxable Value / 1000 Millage Rates Ad Valorem Revenue $ 182,755,998 3.5645 + .7161 $ 782,305 x = / 1000 $ 141,782,128 $ 606,913 3.5645 + .7161 x = / 1000 Financial Impact of the Correction to - $ 175,392 = FIAM Operating Revenue 23 (Single Year)
Land Values for Oil Well Road Right-of-Way Donation 24
Developer Contribution Agreement between Ave Maria and the BCC $7,800,000 / 156 acres = $50,000/acre Used as a Capital Revenue in the FIAM 25
Right-of-Way Land Market Values (per acre) Camp Keais Rd Southeast corner of Ave Maria Property Appraiser’s Market 2005 $12,810 2005 $6,340 Values before and after SRA approval 2006 $17,074 2006 $9,793 Oil Well Rd 26
Oil Well Road Right-of-Way Value per County Staff $1,150,000 / 38.332 acres = $30,000 per acre The Developer valued the ROW donation at $50,000 per acre
2010 Submission As Submitted $50K/Acre Using Staff’s Valuation of $30K/Acre Revising the value to $30K per acre for the Right-of-Way contribution decreases Capital Revenues by $3.12 million 28
Impact fee credits were used as a revenue in the model 29
2010 Submission As Submitted using Design & Factoring in the Impact Fee Permitting Fees as 100% revenue Credits used ($909,509) ($7.546M) The Developer has consumed impact fee credits of $909,509 for Design & Permitting Fees for Oil Well Road 30
2011 Submission As Submitted: using Design & Permitting Fees as 100% revenue ($7.546M: $909,509 Credits Used + $6,636,491 Unused Balance) Factoring in the Impact Fee Credits used ($909,509) Factoring the impact fee credits already used of $909,509 into the model reduces Capital Revenues. 31
Different Formulas Used to Calculate Road Costs 32
Final 5-Year Fiscal Monitoring Report Prepared by Fishkind & Assoc. Submitted to BCC 12/14/2010 33
Version 7.5 Example of another inconsistency found: revised formula (which affects road costs) 2010 Submission 34
“Capacity Used” formula affects road expenditures in the FIAM Version 7.5: Trip Rate x Trip Length x % New Trips x Cost per Lane Mile Capacity per Lane 2010 Submission: (1 – Int Toll Adj) Trip Rate x Trip Length x % New Trips x x Cost per Lane Mile Capacity per Lane 2 The new formula appears to cut 2010 Transportation costs in half 35
Cost Allocated Formula Used as Intended by the FIAM Training Manual in the 2005 Submission 36
Comparison of road cost results as submitted vs. corrected formula: ( ) 37
2010 Submission As Submitted Using Original Formula (with revised formula) (same as Version 7.5 model) Using the original formula for costs allocated to roads increases Capital Expenditures by $16.58 million 38
2011 Submission: Transportation Capital Revenues and Expenditures Expenses not generated using actual costs 39
2011 Submission As Submitted (using Using Original Methodology averages of impact fee costs) (same as Version 7.5) As the 2011 model was submitted, the cost allocated formula was overwritten with a hard-coded value; allowing the formula to calculate properly increases the cost allocated to units put on the road system by the development. 40
2011 Submission Costs allocated to Roads are generated using the “Total Impact Cost” amounts from the Transportation Impact Fee Schedule ( Tindale-Oliver ) Average of Total Impact Cost for Single Family Residential Land Use categories: Less than 1,500 sq ft: $ 9,432 1,500 to 2,499 sq ft: $ 12,828 2,500 sq ft or larger: $ 14,510 Average of 3 categories: $ 12,257 41
2011 Submission Actual Units: 0 190 41 = $ 13,126 applying actual Average = $ 12,257 which is used as categories of development a multiplier for cost per unit on the road system Land use categories where zero units have been built were brought into the calculation for road costs; this caused expenditures related to roads to decrease. 42
Final 5-Year Fiscal Monitoring Report Prepared by Fishkind & Assoc. Submitted to BCC 12/14/2010 43
FIAM Training Manual Prepared by Dr. Fishkind
Conclusion: The Clerk’s Office does not concur with the outputs of the model that was submitted to the BCC in 2010 due to the following concerns: The Ave Maria development is not evaluated as a whole; build-out projections were not provided. Ad-valorem revenues inflated due to an incorrect taxable value input for the Ave Maria SRA. Land values of contributions by Ave Maria appear to be different than what the county has determined the value to be. Impact fee credits were used as a revenue in the model. Formulas used to calculate road costs were different than both the 2005 submission and version 7.5, which the BCC was told was used. 45
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