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HomeMy WebLinkAbout07-17-2006 TVC Workshop Board of County Commissioners Workshop Fiscal Viability: Implementing Needed Improvements within the Towns, Villages and the Countryside (TVC) Area July 17, 2006 St. Lucie County Commission Chambers 2300 Virginia Avenue, Fort Pierce, FL 34982 2:00 P.M. - 5:00 P.M. Aaenda I. Background 2. Development Overview (2006 - 2030) · County staff · TCRPC 3. Fiscal Neutrality · County staff 4. Capital Improvement Needs · County staff · TVC consultants 5. Estimated Expenditures · County staff · TVC consultants 6. Estimated Revenue · County staff · TVC consultants 7. Revenue vs. Expenditures · County staff 8. Traditional Financing Methods a. Development Agreements b. Impact Fees c. Community Development Districts d. Ad Valorem Taxes 9. Aditional Financing Methods - (Terry Lewis) a. MSBU, MSTU b. Special Assessment District (F.S. 189) c. Independent Special District d. Water/Drainage Control District (F.S. 298) e. Community Redevelopment Agency (CRA) District 10. Land Management Options · County staff 11. Staff Summary & Recommendations · County staff 12. Board Discussion and Direction 13. Transportation Funding Contribution Proposal by Developers · Kolter Properties 14. Adjourn COUNTY ADMINISTRATION MEMORANDUM TO: Board of County Commissioners FROM: Michael Brillhart, Strategy & Special Projects Director /lIÞ July 13, 2006 DATE: RE: Fiscal Viability Workshop on the North County Towns, Villages and the Countryside (TVC) Area The intent of this Fiscal Viability Workshop is to provide a summary of the capital needs and costs of improvements associated with proposed development within the TVC area together with the revenue sources needed to implement these improvements. Both traditional revenue sources and recommended new revenue source options are to be presented for consideration by the Board of County Commissioners. The attached slides are part of the staff and consultant presentation materials to be used for this Workshop. This information consists of data used within the fiscal analysis of the TVC comprehensive plan amendment as referenced within the Capital Cost and Revenue Generation Report prepared by the Treasure Coast Regional Planning Council (TCRPC). The TCRPC's financial consultants will be available at the Workshop to present their findings and to discuss new revenue source options. As noted within the materials, there are financial options that could be implemented within the TVC area that would require new development to provide the needed revenue to implement these costs and to ensure that development is concurrent with local and state growth management requirements. Staff will also discuss some possible land management options for Board consideration as part of the comprehensive plan amendment. Additionally, a group of developers will present a conceptual proposal for implementing transportation improvements through a proportionate fair share contribution arrangement. Cc: Doug Anderson, County Administrator Ray Wazny, Assistant County Administrator Faye Outlaw, Assistant County Administrator Dan Mcintyre, County Attorney j metròstudy Hcusing Starts H."n St. Lucie County Housing Market Over the past 25 years, single family residential construction within St. Lucie County consisted of scattered lot development in the southeast portion of the county with condos built along the coastal areas. This trend is now beginning to change with the construction of a number of large subdivisions near Interstate 95 in the southern and central sections of the county. While development in the southeast portion of the county continues today, it is now generally focused on condos and attached housing as the number of large lots needed for development has diminished. Residential construction activity in the northeast section of the county has been slow to take off due to its rural nature and distance from an employment center. This is poised to change, however, as housing prices continue to increase in south Florida and the amount of land available for residential development throughout southeast Florida continues to decline. With its close proximity to the ocean, Vero Beach and Interstate 95, the northern portion of St. Lucie County should see a dramatic increase in development over the next decade. In addition to diminishing land stock, housing prices have skyrocketed in southeast Florida over the past 5 years, forcing those looking for cheaper housing to move north. Because of this, overall housing prices in St. Lucie County have increased considerably within the past 5 years, as retirees and families migrating from Miami-Dade, Broward and Palm Beach counties pushed demand to record levels. However, while these prices have risen to record levels, they continue to be much less than housing prices in the south Florida market. This pricing disparity between the two markets will continue to drive demand for housing in St. Lucie County for the foreseeable future. The population of the Treasure Coast (Martin, St. Lucie, and Indian River Counties has been increasing at a fast pace, and this trend will persist for the 3 metros. tudy HcusingStarts Hn,n foreseeable future. Retirees from the northeast who would in the past have moved to Boynton Beach are now opting in larger numbers for st. Lucie. Workers employed in Jupiter and Palm Beach Gardens are now commuting in increasing numbers from the Treasure Coast. At the end of 2004, there were an estimated 234,820 residents in 95,798 households in St. Lucie County. There were 9,467 more households in the county than in 2000, representing total growth of 11 %. Year Number Net Change Population 1990 168,712 * 2000 212,829 44,116 2004 234,820 21,991 Households 1990 66,571 * 2000 86,331 19,761 2004 95,798 9,467 Source: Claritas The population of the county is expected to rapidly increase over the next 10 to 20 years as a combination of migrating families and retirees continue to fuel demand for new housing. In regards to household size, the county is becoming increasingly diverse, with a mixture of both an active adult and family housing market with an average household size of 2.42 persons. 42% of the households in St. Lucie County have two persons, reflecting the area's appeal to retirees. I Household Size 1 Person 2 Persons 3-5 Persons 6+ Persons TOTAL 2004 23,583 40,090 29,159 2,967 95,798 % Distribution I 25% 42% 30% 3% 100% st. Lucie Average HH Size: 2.42 S. Florida Avg. HH Size: 2.57 Source: Garitas 4 metrostudy Hcusing,Starts Hn,o The graph below illustrates the high percentage of two-person households in St. Lucie County when compared to south Florida. This is a particularly strong indicator for the type of future development in the area, reflecting demand in the active adult homebuyer market. Three to five person households represent an additional 30% of the market, confirming that there is also a strong family market within St. Lucie County, particularly within the county's central and southeastern sections. St. Lucie County vs. South Florida Percent Distribution of 2004 Households by Size 45% 10% 40% 35% :I 30% 1 25% i- ,. 15% 5% 0% 1 Person 2 Persons 3-5 Persons SfHJm : CIidM Ost. WC" County .South florid. I 6+ Persons As of 2005, there are approximately 73 Million "Baby Boomers" between the ages of 41 and 59. Because they are in their peak earning years, second home purchases and retirement housing, which have been on the rise over the past few years, are projected to increase over the next 15 years as the majority of the Boomers enter their 50's. The amount of new housing available to the Boomers in Miami-Dade, Broward and Palm Beach counties is decreasing fairly rapidly as there are relatively few large vacant tracts of land available for development. As the production of new housing decreases in these counties, builders are developing in St. Lucie and Indian River counties. This trend of northward movement will continue to increase over the next 15 to 20 years until the supply of land is exhausted. During the next five years, the largest effect in the Treasure Coast will be continued strong demand for vacation homes. Communities like Tesoro, by 5 ~ ~1!".2.study the Ginn Companies, demonstrate that seasonal residents will buy in st. Lucie County. Retiree demand is also projected to increase as well. The number of people turning 65 on an annual basis will double over the next 14 years. This is evident from the increase in births from 2 million to 4 million between 1940 and 1954. 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 hby 800m Generation 1,500,000 1,000,000 500,000 Source: 0 ~ U.5.CensU5 ~ ~ ~ ~ ~ ¡ ï i ! ! ~ ~ ~ ~ ~ ~ ~ ¡ ~ i ~ 5 ~ ~ ~ - - - - - - - - - - - - - - - - - - - - - - - - Between 2015 and 2025, retiree demand will continue to run at a strong pace. Therefore, if current housing trends persist (construction of retiree and vacation homes in warm climates), st. Lucie County will encounter a prolonged housing boom. The next largest demographic segment that will redefine housing in the coming years is the "Generation V" or "Millennium" generation. This group, born between 1979 and 1994, will have over 74 million members (more than the Baby Boomers) and will make up 34 percent of the population by 2015. Locally, there are nearly one million residents within southeast Florida and the Treasure Coast that currently fall within this age group. According to a study recently conducted by the Urban Land Institute, this emerging segment is more likely to trade appeal for lifestyle and convenience factors and less likely to seek prestigious housing, instead preferring a more utilitarian model. Surprisingly, 56% of those Generation V 6 CAPITAL COST & REVENUE GENERATION ANALYSIS .. Page 1 of 27 Chapter 10 INTRODUCTION As part of the Data and Analysis supporting the TVC Plan Amendment, a financial analysis has been performed. Under this task the analysis includes the following: · Estimate the costs and revenues associated with the proposed change in the pattern of development, addressing both new development as well as the provision for necessary infrastructure for existing development. · Develop Municipal Service Financing and Development Impact Assessment mechanisms to ensure fiscal viability of the proposed pattern of settlement for the study area and provide St. Lucie County with an accurate estimate of the cost of implementing and maintaining future development, land, infrastructure and natural resources. · Estimate costs and impacts relative to the creation of the central backbone system of water management. · Estimate the cost of acquiring and/or stewardship of vacant land, public open space, civic buildings, public safety facilities, recreational facilities, schools, roads and other infrastructure. · Defme Level of Service standards for the purpose of satisfying comprehensive plan amendment requirements. The analysis is organized to respond to each of these tasks, including a comparison of the costs and revenues associated under the TVC scenario and non- TVC scenario. All assumptions relied upon in this analysis related to timing and costs, revenue, infrastructure needs, timing and costs, and timing and pace of development (absorption) can be found in Schedules 1 - 11; and in additional analysis conducted by Metro Study Corporation, Zimmerman Volk and Associates, LBFH Inc., and GMB Engineers and Planners. The fmancial analysis schedules are attached to this report. Additional analysis conducted to support the completion of this financial report are located in the completed Data and Analysis Section that has been transmitted to the Florida Department of Community Affairs (DCA) in support of the draft TVC Comprehensive Plan Amendment. Page 2 of27 Summary North St. Lucie County Towns, Villages and Countryside (TVC) Financial Analysis Summary The scenario which is described as the "TVC Case" assumes a maximum cap on new development in the SAP of 3 7 ,500 new residential units with a mix of single family and multi-family units, provided from a study by Zimmerman V olk & Associates. To evaluate financial feasibility, it was first necessary to determine the costs and the revenue associated with the proposed plan. In addition consultants were requested to evaluate on the same basis the costs and revenues associated with a "non TVC case" which assumed no changes to the existing comprehensive plan with development limited to 22,000 residential units - the maximum number of residential units under existing future land use. A mix of single-family ("large lot") and multi-family units was based on existing future land use. Metro Study Corporation provided a forecast of the housing absorption, through build out for both TVC and non- TVC cases. A copy of their report, dated September 2005 is included in the Data and Analysis, and summarized below. Page3 of 27 NORTH ST. LUCIE COUNTY SPECIAL AREA PLAN Estimated Average Absorption TVC AREA Housing Units YEAR S WITH TVC WITHOUT TVC Per Year 5 Years Per Year 5 Years 750 3,750 325 1,625 2,050 10,250 975 4,875 3,180 15,900 1,175 5,875 1,070 5,350 825 4,125 540 2,250 625 3,125 350 1,750 165 625 1 - 5 6 - 10 11-15 16 - 20 21 - 25 26 - 30 31 - 35 Total Housing Units 37,500 22,000 Level of Service standards have not been changed. They remain the same as those currently adopted for the entire County. Infrastructure Costs The Infrastructure Costs Analysis focused on the major costs associated with development, which include roads, schools, fire, police and drainage. Other costs were considered but not covered in this study due to their limited impact on the overall costs. For both cases, TVC and non- TVC, the costs were based on new development. Page 4 oj 27 Drainage costs were analyzed, and an expenditure of less than a half a million dollars was provided to correct existing problems with culverts as described in the analysis provided by LBFH Inc., included in the Data and Analysis. In both cases the costs for water and sewer are assumed to be paid for by the developer with an approximate cost of between $5500 and $6500 costs per unit. Conclusion Infrastructure Costs As shown in the chart below, schools and roads show the most significant difference in costs between the TVC and non- TVC cases. However, although more schools are required in the TVC case due to the higher number of residential units at build-out, the per unit difference in cost between the TVC and non-TVC case is reasonably close. Roads have the highest cost differential, at $3578 per unit. This pronounced differential is a direct consequence of the traffic patterns generated. Under the TVC case, traffic is distributed through a proposed network of streets: predominantly a series of two-lane, and a minimal amount of four-lane roads. The non- TVC case relies on a few main collector roads (Indrio Road, Kings Hwy, Kobblegard and Johnston roads) to carry all traffic, and consequently on the cost implications of widening such State and County corridors. To create an "order of magnitude cost comparison", road costs for the non- TVC case were based on FDOT average costs-per-Iane mile. In the TVC case, road costs were estimated by GMB Planners & Engineers, based on cross-sections generated as part of the TVC implementation analysis. These cost estimates do not include all categories considered under the County's PD&E study (i.e. intersection improvements). If the cost estimates in the PD&E studies prepared by FDOT for Indrio Rd. and Kings Hwy. were used instead, the road cost in the non- TVC case increases by an additional $28 million or $1272 per unit. This increase represents a total road cost differential of approximately $4,850 per unit. Page 5 if27 The considerable increases in road construction costs in the non- TVC case would suggest a scenario of no, or very limited growth due to traffic concurrency limitations. Infrastructure costs for fire, police and drainage are similar on absolute basis for both cases but vary on a per unit basis, with the TVC case having lower costs due to the higher number of housing units constructed and the land contribution by the developer. In essence: due to the ability of the developer to count public facilities towards the open space requirement, the construction of public facilities in the TVC case lies within the mandatory open space requirements - land that would otherwise not have been available for public infrastructure. This same land in the non- TVC case needs to be purchased by the different agencies, not only adding to the cost of the facilities, but making it impossible to guarantee that such public facilities will be in proximity of the community. NORTH ST. LUCIE COUNTY SPECIAL AREA PLAN TOTAL INFRASTRUCTURE COSTS THRU BUILDOUT TVC CASE NON-TVC CASE DIFFERENCE TVC - NON-TVC PER PER PER UNIT $MILLlON UNIT $MILLlON UNIT $MILLlON SCHOOLS $ 8,800 $ 330.00 $ 7,895 $ 173.70 $ 905 $ 156.30 ROADS $ 2,418 $ 90.69 $ 5,996 $ 131.92 $(3,578) $ (41.23) FIRE $ 192 $ 7.20 $ 418 $ 9.20 $ (226) $ (2.00) POLICE $ 80 $ 3.00 $ 136 $ 3.00 $ (56) $ DRAI NAGE* $ 12 $ 0.46 $ 20 $ 0.46 $ (8) $ TOTAL $ 11,502 $ 431.35 $ 14,465 $ 318.28 $ (2,963) $113.07 Revenue As opposed to the cost of infrastructure, which can be reasonably estimated, the revenue generated through new development either for the TVC or non- TVC case is more difficult to forecast. However, this study provides an "order of magnitude analysis" of the revenue generated for comparison between the two cases. Page 6 oj27 Sources of revenue are impact fees assessed for infrastructure and ad valorem tax revenue generated by new residential development. Using St. Lucie County's October 2005 impact fee schedule and current mileage rates for taxes these revenue sources were estimated as shown on schedules 4a, 4b, 5a and 5b, attached. Conclusion Revenue Based on this approach, the "order of magnitude" estimate shows the TVC case generating slightly less than 1 billion dollars of additional revenue over the non- TVC alternative, primarily resulting from ad valorem revenue. NORTH ST. LUCIE COUNTY SPECIAL AREA PLAN REVENUE VS CAPITAL COST $ MILLION THROUGH BUILD OUT TVC CASE NON-TVC CASE DIFFERENCE Number of Housing Units 37,500 22,000 15,500 Years to Build Out 25 34 9 Years for Projected Revenue 34 34 REVENUE Ad Valorem Taxes $ 2,054 $ 1,206 $ 848 Impact Fees $ 248 $ 140 $ 108 Total Revenue $ 2,302 $ 1,346 $ 956 CAPITAL COSTS Total: Schools, Roads, Police Fire and Drainage $ 431.3 $ 318.3 $ 113.0 NET BENEFIT $ 1,871 $ 1,028 $ 843 Financial Feasibilitv In addition to evaluating costs arid revenue, the report recommends a financing mechanism to ensure the fiscal viability of the proposed towns, villages, and countryside settlement pattern. Various forms of assessments and taxing districts were considered which included, Municipal Service Page 70127 Benefit Units (MSBU), Municipal Service Taxing Units (MSBU), 298 Districts, and Community Development Districts (CDD). Although each of these may serve an important role, execution of an overall financial plan would be extremely difficult without a system encompassing the multiple landowners in the study area and addressing the limitations on funding infrastructure costs for infrastructure such as new schools. The implementation team recommends that an Independent Improvement District be formed covering the entire SAP. Details on the procedure and pros and cons of this recommendation are included in Chapter 12 of the Data and Analysis. In addition to providing a mechanism for basic infrastructure and maintenance of the improvements, the above Independent Improvement District could allow, if needed, additional revenue to support infrastructure such as new school construction. Finally, and of great significance, is that under the non- TVC (current conditions) there is no vehicle to tie together the landowners and the development community to deal with issues such as concurrency or the cost/funding/phasing of infrastructure. Page 8 of27 TVC and Non-TVC Infrastructure Costs The costs for major inftastructure, i.e. roads, schools, fire and police, for both development scenarios have been analyzed. In the TVC case, a maximum of 37,500 units was used. This represents the maximum number of units allowed if the entire area develops as towns and villages. In the non- TVC case, 22,000 units based on existing future land use were considered. ROAD COSTS To calculate the total miles for each type of road to be constructed, Figure 3-15 of the Draft Comprehensive Plan Amendments and the traffic study prepared by GMB, Engineers and Planners were used. The costs are for road and lane needs through 2040. These road costs are based on an "order of magnitude" calculation, a comparison between both cases, and have not been verified by preliminary engineering studies. In both cases the costs ofR.O.W. to be acquired was calculated using a base of$50,000 per acre. TVC ROADS The road costs for this case were based on the cross sections prepared by the implementation team, based on the community's request for "maintaining a rural character in the North County Area" and cost estimates provided by GMB Engineers & Planners. The costs used: For the 2 lane rural section: 1.2 million per mile. For the 4 lane rural section: 2.0 million per mile. For the 4 lane Boulevard section: 2.5 million per mile. To calculate the total miles for each type of road, Figure 3-15 of the Draft Comprehensive Plan Amendments was used. These calculations are as follows: 2 LANE RURAL ROADS, 55' R.O.W. (See schedule 6 for roadway lengths and R.O.W. to be acquired) 2 lane rural roads: Total a length of 20.4 miles - (less) existing 2 lane roads of4.9 miles = 15.5 miles to be constructed. Costs of 1.2 million per mile x 15.5 miles = R/W needed, 16.4 acres x $50,000 = $18.61 Million $5.14 Million Page 9 of27 1-95 Flyover @ $10.0 million= $10.00 Million TOTAL 2 LANE ROAD COSTS $33.75 Million 4 LANE ROADS, 100' R.O.W. (See schedule 7 for roadway lengths and R.O. W. to be acquired) 4 lane rural roads total, length of20.98 miles. Costs of$2.0 million per mile x 20.98= R.O.W. to be acquired, 178.49 acres x $50,000= Turnpike flyover @ $10.00 Million= 2 Bridges over Belcher Canal @ 2.50 Million= t;} 2~;\ " $~Million , $8.92 Million 1.~~ $10.00 Million $5.00 Million 4 lane Boulevard section, total length of 0.95 miles. Costs of$2.5 million a mile x 0.95= TOT AL 4 LANE ROAD COSTS $2.37 Million $68.26 Million TOT AL ROAD COSTS FOR TVC $1 QJ. Q Y Million '1 ',:.» NON- TVC ROADS (R.O.W's VARY) (See schedule 8 for roadway lengths and R.O.W. to be acquired) The costs for this case are based on FDOT's 2004 TRANSPORTATION COSTS, dated March 2005, which are as follows: 4 lane Rural road $4.1 million per mile, 4 lane Urban road $5.3 million per mile, adding two lanes $2.5 per mile. The additional 2 lanes for Johnston, south ofIndrio is figured using $1.0 million per mile. The R.O.W. required for the Urban section is 120' and for the Rural section 210' (See attached exhibit B). The costs for county 4 lane roads are the same as the TVC, with a 100' R.O.W. required. 4 LANE ROADS FDOT 4 lane urban section, total length, 6.40 miles. Costs of$5.30 million per mile x 6.40= $33.92 Million Page 100/27 4 lane rural section, total length, 7.52 miles. Costs of $4.1 million per mile x 7.52= $30.83 Million Add 2 lanes to State roads total length, 8.90 miles. Costs of 2.5 million per mile x 8.90= 2 Bridges over Belcher Canal @ $2.5 million= $22.54 Million $5.00 Million 4 LANE COUNTY ROADS 4 lane rural section, total length 14.11 miles. Costs of $2.0 million per mile x 14.11 = $28.21 Million Add 2 lanes to Johnson. Costs of $1.0 million per mile x 4.55 miles= $4.55 Million TOTAL R.O.W. TO BE AQUIRED R.O.W. to be acquired, 198.3 acres x $50,000= $9.92 Million TOT AL ROAD COSTS $133.42 Million SCHOOLS (See schedule 9) The school costs and number of schools needed are based on information supplied by the S1. Lucie County School District. TVC SCHOOL REOUIRMENTS The total number of schools for the TVC is as follows: K-8, 6 schools at $ 35.0 Million= $210.00 Million High Schools, 2 schools at $60.0 million= $120.00 Million Land costs at $0.0 per acre= $0.00 Million TOT AL SCHOOL COSTS $330.00 Million Page 11 of27 NON- TVC SCHOOL REOUIRMENTS The total number of schools for the non- TCV is as follows: K-8, 3 schools at $35.0 Million= High Schools, 1 at $60.0 Million= Land costs at $73,470.0 per acre= TOT AL SCHOOL COSTS= PUBLIC SAFETY~ FIRE (See schedule 10) $105.00 Million $60.00 Million $8.70 Million $173.7 Million The fIre station costs number of stations needed were supplied by the St Lucie County Fire District. 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(\ ( ) II) 0* e: >- J: II) ( ) (1 f- Z «0:::....1 Page 27 of27 LEWI5~ LONGMAN &WA'UŒR, pl~LE COpy ATTORNEYS AT LAW HELPING SHAPE FLORIDA'S FUTURP@ www.llw.la...·.com Reply To: West Palm Beach September 28, 2005 Michael Busha, Executive Director Treasure Coast Regional Planning Council 301 East Ocean Boulevard, Suite 300 Stuart, FL 34994 RE: Options for Implementation of Treasure Coast Regional Planning Council (TCRPC) St. Lucie County Charrette Dear Michael: As a result of discussions with you and your staff, I understand that TCRPC is currently working with St. Lucie County, landowners within the County and other interested parties in the development of a plan for implementing certain restoration projects related to ground and surface waters within the northern portion of St. Lucie County. The discussions have taken place in the context of charrette meetings conducted by TCRPC and have involved consideration for use of the Ft. Pierce Fanns Water Control District (the District) as a possible tool for implementing water control changes in the planning area. The District is the only governmental body within the planning area that might have the ability to implement the charrette other than St. Lucie County. You have asked that I provide you with viable options available for implementing the charrette plan, including consideration of the use of the District. Because of its limited authority, I do not believe that the District in its present fonn, represents a logical option for the task. There are other alternatives available, however. The remainder of the letter outlines background facts as I understand them and then identifies those alternatives, along with pros and cons. A. Background Facts 1. Ft. Pierce Fanns Water Control District covers a substantial portion of the geography of Northern and North Central St. Lucie County which is the subject area of the TCRPC planning charrette. The District was created several decades ago, pursuant to Chapter 298, Florida Statutes. Water control districts created under Chapter 298 are single-purpose districts with legislative authority to BmJenwn 1001 3rd Avenue West SuiLe 670 Bradenton, FL 34205 (941) 708-4040 Fax: (941) 708.4024 Jacksunv;lle 9428 Baymeadows Road Suite 625 Jacksonville, FI. 32256 (904) 737·2020 Fax: (904) 737·3221 Tanaka..,,", Post Office Box 10788 (32302) 125 South Gadsden Street Suite 300 Tallahassee, FI. 32301 (850) 222.5702 Fax: (850) 224·9242 Mr.t Palm Bmc¡' 1700 P.tlm Beach Lakes Blv,1. Suite 1000 West Palm Beach, FL 33401 (561) 640.0820 Fax: (561) 640·8202 " ( <. Michael Busha, Director Treasure Coast Regional Planning Council September 28, 2005 Page 2 provide only water management (drainage, flood control, water supply and environmental restoration of waters) within district boundaries. They are authorized to levy non-ad valorem assessments annually against all benefited landowners within the district to build and maintain a water control system for that purpose. They also have the authority to issue bonds for the capital improvements necessary to construct the water control system. 2. Land uses within the District and the charrette planning area are primarily agricultural. The flood control and water management systems installed by the District serve the agricultural uses and are essentially a grid pattern of canals, dikes, levees and pumps that control the ground and surface water levels in the District sufficient for agriculture such as citrus. The District maintains and operates the water control system by levying non-ad valorem assessments on a per acre basis upon benefited lands in the District that are served by the system. 3. Over the past few years, the charrette area has come under urban development pressure. Several large regional developers are in various early stages of planning and designing large residential and commercial developments. I understand a number of developers have already committed resources to the preparation of the infonnation necessary to process a Development of Regional Impact application, pursuant to Chapter 380, Florida Statutes, through St. Lucie County and the Florida Department of Community Affairs. I also understand these developers are currently willing to cooperate with TCRPC and St. Lucie County in developing and implementing a comprehensive planning blueprint for the area provided their plans are not unnecessarily threatened or delayed. 4. During the past year, the TCRPC charrette meetings have developed the concept of a flowway or flowways to begin restoration and rehydration of substantial portions of the District that had been previously drained. TCRPC also recognizes the need to develop a plan and institutional framework for the area that would not only implement the plan, but balance the needs of the development community with environmental restoration goals. 5. Concurrently, South Florida Water Management District (SFWMD) is interested in a project in this area for water storage and rehydration of the groundwater regime as part of the Comprehensive Everglades Restoration Plan (CERP). Hence, there is potential for local, state and federal participation in a restoration project. (: ( ! Michael Busha, Director Treasure Coast Regional Planning Council September 28, 2005 Page 3 6. As the general purpose government with responsibility for comprehensive planning and the operation and maintenance of local public infrastructure, St Lucie County is responsible for overseeing the future development of the area in question. 7. From discussions with TCRPC staff, it seems clear that in addition to the development of a plan for the area in question, some institutional structure is needed that has the ability to finance, construct and maintain the public infrastructure necessary, coordinate planning and implementation activities with other governments and work with development interests. TCRPC staff has, therefore, asked that I address possible options for implementation of the charrette plan, along with the pros and cons of each option. B. Option 1: Pros and Cons - St. Lucie County Alternate No.1 1. St. Lucie County may implement the charrette plan as follows: a. The County as the general purpose governm~nt has the ability to amend its comprehensive plan for the area in question to dictate accomplishment of the new water control system. It is possible for the County to fast track implementation to some extent, pursuant to Chapter 163, Florida Statutes. b. Concurrently, the County may, pursuant to Chapter 125, Florida Statutes, create a municipal service taxing unit or a municipal service benefit unit (MSTU or MSBU) that covers the geographic area in question. This entity will continue to be an administrative ann of St. Lucie County government. c. Also, concurrently, TCRPC and St. Lucie County should consider discussions with the Ft. Pierce Fanns District to raise the issue of whether it should be dissolved or otherwise integrated into the plan. As a part of dissolution, the assets and liabilities of the District would be transferred to St. Lucie County. d. Pursuant to Article Vil, Section 9 of the Constitution and Section 125.01, Florida Statutes, MSTUIMSBU powers essentially include all municipal services. As examples, potable water, sewer services, roads and bridges, trash, fire protection, flood control, drainage, recreation and law enforcement are municipal services that can all be funded and provided via an MSTUIMSBU structure. e. MSTUIMSBU powers also include the ability to levy and collect ad valorem taxes on lands within the MSTUIMSBU to provide for public infrastructure. As a matter of law, St. Lucie County has the legislative , ' ( Michael Busha, Director Treasure Coast Regional Planning Council September 28, 2005 Page 4 authority to levy up to an additional ten mills of ad valorem tax within the MSTUIMSBU boundary for municipal services. The District also has the ability to levy non-ad valorem (benefit-based) assessments within the District on all benefited properties. f. Finally, the MSTUIMSBU may issue bonds with County approval that would be backed by non-ad valorem assessments. Such bonds would allow fast tracking the desired infrastructure. Bonds backed by ad valorem taxes generated by the MSTU may be issued only with referendum approval of electors within the MSTU. 2. Pros and Cons a. Pros (1) Alternative 1 could be reasonably speedily implemented. As noted previously, S1. Lucie County can begin to fast track the planning and the creation of an MSTUIMSBU. (2) A single administrative entity will be in charge of the creation of the MSTUIMSBU and implementation of the financing scheme and construction of the charrette proposal. (3) As the general purpose government within the area, S1. Lucie County has the legislative authority to do all things necessary to begin implementation. The only matter over which they do not have absolute authority is the possible dissolution of the Ft. Pierce Fanns Water Control District. (4) With St. Lucie County responsible for most of the implementation, coordination with TCRPC and SFWMD, as well as landowners, would be relative simple. b. Cons (1) Generally, the time, expense and manpower commitment by the County to accomplish the tasks identified will be substantial. At this time, it is unknown whether S1. Lucie has knowledgeable staff that would have the time to devote to all tasks required. (2) The administrative burden of management will also be fairly substantial. This wj]) include: (i) Initial organization and creation of the MSTUIMSBU as well as plan adoption. ( Co' Michael Busha, Director Treasure Coast Regional Planning Council September 28, 2005 Page 5 (ii) Once created, administration and oversight of finance, land acquisition, construction and maintenance of the new infrastructure. (3) If the District is dissolved, the assessments that are currently available to maintain the existing water control system will be lost. (4) Dissolution of the District will also shift any liability they may have to St. Lucie County. (5) There are always political issues and potential controversy associated with the levy of any new taxes or non-ad valorem assessments. St. Lucie County would be at the center of these issues as well. C. Option 2: Pros and Cons - St. Lucie County Alternative No.2 1. St. Lucie County may implement the charrette as follows: a. The County can fast track a comprehensive plan amendment that authorizes implementation of the water control and related features. b. The County also probably has the authority to require large scale and regional developers to implement portions of the charrette within lands thereon at their cost. The implementation of chmrette projects would be included as conditions of any approval of development. The developers' options for implementation of charrette requirements would be: (1) Pay the costs up front and let St. Lucie County implement the charrette projects. (2) Implement the charrette projects themselves as part of the development and transfer ownership of the facilities to St. Lucie County for maintenance (probably along with a commitment to assess the developed property for maintenance). (3) Petition St. Lucie County or the Governor and Cabinet to create a community development district (COD) pursuant to Chapter 190, Florida Statutes. This district would be created congruent with a developer's land and be set in place to finance, construct and maintain public infrastructure in perpetuity. A COD has many powers to construct public facilities of all kinds. 2. Pros and Cons , ' ( ( Michael Busha, Director Treasure Coast Regional Planning Council September 28, 2005 Page 6 a. Pros (1) The proposal has fairly reasonable administrative ease for St. Lucie County. Essentially, St. Lucie County would need to amend its comprehensive plan to incorporate the charrette proposal. The County would also need to be certain it could impose development conditions on developers as they came in for development approval that would achieve development of portions of the charrette plan. (2) The cost to St. Lucie County would be fairly nominal and could be transfeITed directly to developers desiring new development within the area. b. Cons (1) The implementation schedule for the charrette plan will be piecemeal and coordination with the SFWMD project will be unwieldy. Each developer will have different a schedule and plans for development and actually ensuring that the project is ultimately accomplished within a meaningful time schedule will be difficult. (2) There will also be fragmented responsibility for maintenance of the project or portions of the project if it is done in the manner described. (3) Small landowners may not be able to implement their portions of the project. Hence, some portions of the project may never get accomplished. (4) There will still be a need to coordinate (either dissolution or a plan amendment by the District) with the existing water control district. (5) There is also the possibility of legal challenges from the development community depending upon how a County comprehensive plan amendment implementing the chaITette plan affects them. D. Option 3: Pros and Cons - St. Lucie County Alternative No.3. 1. Under this option, St. Lucie County will probably still have a need to amend its comprehensive plan to identify the charrette project. 2. Concurrently, TCRPC and S1. Lucie County may request the Legislature enact a special act to create a multi-powered independent improvement district that covers the charrette area. For your review, I have attached a copy of the Big · ' (: (, Michael Busha, Director Treasure Coast Regional Planning Council September 28, 2005 Page 7 Cypress Stewardship District Act recently passed by the Legislature. It was established for similar purposes to those of the charrette plan. 3. At the same time, the County, in conjunction with Ft. Pierce Fanns, should probably request a Court dissolve the District and transfer its assets and liabilities to the new district once it is created. 4. The new improvement district created by legislative act would be the overall entity responsible for financing, implementation and maintenance of the charrette plan. The district could be organized and empowered as follows: a. The special act would provide the district with perpetual existence. The governing board of the district would be established as a five member board. In order to recognize the desire of St. Lucie County to maintain a voice in what happens, two of the board members could be appointed directly from the County Commission. Three board members could be appointed by the Governor from a list of County and district residents that are recommended by the County Commission. The purpose of the mix is to maintain the district as an independent political subdivision. Maintaining independence is important when the new district acts to levy ad valorem taxes or sell bonds. As an independent district, ad valorem taxes levied by the district would not be counted toward the County's 10 mill cap. b. Improvement districts, such as the one described herein, typically have all the powers of a county or municipality except police power. And, even then, such districts are authorized to collect taxes or non-ad valorem assessments for the purpose of cooperating with police power agencies for general public protection. c. The district can also be authorized to levy ad valorem taxes (subject to referendum approval within the district), non-ad valorem assessments, impact fees and other fees. d. Importantly, a district such as the example attached (The Big Cypress Stewardship District) has the statutory authority to create sub-districts or units of development within the district. The District can then implement a development plan within the sub-district and finance the development with non-ad valorem assessments levied only against the benefited property within the sub-district. Hence, property within the district but outside the sub-district would not have to pay assessments for improvements in the sub-district that provide no direct benefit. e. If TCRPC and St. Lucie County desire, it would also be possible to include language in the special act that directed the new district to implement the TCRPC charrette and assist with St. Lucie County, SFWMD and the Corps of Engineers in the implementation of the CERP projects. .' . ( ... \...~ Michael Busha, Director Treasure Coast Regional Planning Council September 28, 2005 Page 8 5. Pros and Cons a. Pros (1) The newly created district would have a clear linkage for coordination purposes with the St. Lucie County Commission. (2) A broad legislative charter would authorize the district to not only implement water control features but other important infrastructure such as roads, water, sewer service, etc. And, if desired, the special act could also mandate implementation of a charrette plan consistent with the S1. Lucie County Comprehensive Plan and the CERP project. (3) Sources of public finance, separate and independent of S1. Lucie County would be created by way of district authority to levy non-ad valorem on property as well as the collection of ad valorem taxes. (4) By creating sub-districts and levying non-ad valorem assessments discretely within a sub-district to finance improvements, the overall plan can be implemented in manageable pieces and only the property receiving direct benefits would pay the assessments. (5) St. Lucie County would be insulated from liability or management responsibilities for project implementation. (6) Under the legislative charter, the new district would be the responsible entity for continuing maintenance of water control services within the planning area that had previously been the responsibility of Ft. Pierce Fanns. (7) The new district would become a permanent maintenance entity for existing and new infrastructure in the planning area. (8) The district would have extensive authority to issue bonds to pay for fast tracking capital construction. b. Cons (1) Initial costs of creation and operation that would need to be assumed by S1. Lucie County or some other entity once the new district was created. It will probably be a year to a year and a half before the district would be up and running on its own revenue. c ( Michael Busha, Director Treasure Coast Regional Planning Council September 28, 2005 Page 9 (2) The new district will be a separate independent government. It will be necessary to coordinate district activities with TCRPC, St. Lucie County and SFWMD to guarantee little or no conflict. (3) As with previous alternatives, political issues associated with taxes and assessments could arise. Michael, I think the options I have outlined are reasonably comprehensive. In my opinion, Option #3 provides the greatest opportunity to accomplish the stated goals. This is so because it creates a substantial, new source of revenue and an institutional organization dedicated solely to accomplishing the goals identified by the charrette. If you have any question on the matter, please let me know. Sincerely yours, --r--' _. / .~.c--~ Terry E. Lewis TEllbt Enclosure c. Ms. Marcela Camblor Mr. Douglas M. Anderson Daniel S. McIntyre, Esquire :\Client Documents\Treasure Coast RPC\New Matter\Corr\Busha Ltr - 09-06-05 Revised.doc