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Agenda 02-13-12 The City of Boynton Beach - FINANCIAL ADVISORY COMMITTEE MEETING MONDAY, FEBRUARY 13, 2012@6:00 P.M. LIBRARY - CONFERENCE ROOM A 208 S. Seacrest Boulevard AGENDA 1. Call to Order 2. Announcement of Committee Member resignation 3. Approval of January 9,2012 Minutes (Copy attached) - Kindly review in advance of the meetinQ 4. Overview of the City's Economic Development Program - Nancy Byrne, Interim Director of Development 5. Citizen Survey discussion (Copy attached) 6. Update by Committee members regarding progress to date of their Study and Assignment Areas 7. Adjournment Meeting dates February to June 2012 scheduled for second and fourth Mondays of each month: o February 27 o March 12 & 26 o April 9 & 23 o May 14 & 28 o Jun 11 & 25 C:\Documents and Settings\pylej\Local Settings\Temporary Internet Files\OLKAB\Agenda - 02-13-12.doc City of Boynton Beach ECONOMIC DEVELOPMENT PROGRAM I. Purpose and Backaround The purpose of this Economic Development Program is to lay the groundwork and initiate implementation strategies to compliment a future Economic Development Plan, designed to attract new businesses and housing development, retain and expand existing businesses, create additional tax revenue to the City and to strengthen our local economy through job creation. By providing recommendations that will facilitate the vision for the future of Boynton Beach, through goal setting, establishing policies and providing clear actions, this program will establish the framework for short-term (0-2 years), mid-term (3-7 years) and long-term economic decisions (8+ yrs). Drawn from data gathered over the past decade in various redevelopment plans prepared for both the City and the Community Redevelopment Agency (CRA), this program provides best practice recommendations to assist in achieving the following target goals: . Increase Boynton Beach's economic competitiveness, regionally, nationally and as markets open up, internationally, to attract new, diverse businesses offering expanded employment opportunities; . Explore and enhance destination tourism opportunities; . Diversify the City's economic base of jobs and wages; . Provide a good jobs/housing mix; . Develop and promote a strong brand identity and image for Boynton Beach; . Support training opportunities to upgrade worker skill sets. In these dramatically changing economic times, particularly with shrinking revenues and growing fiscal constraints, the program is a tool for dealing with a dynamic future where decisions made today need to be re-evaluated, monitored, and modified periodically as conditions change. The economic conditions that affect the City of Boynton Beach include a wide variety of factors such as land use, governmental regulations, business development, job formation and investment. This plan considers an array of economic, demographic, social, and cultural conditions within the City and proposes an extensive, but not exclusive list of potential implementation strategies designed to help stimulate the City's economy. The program is modeled after methodology used in establishing the City's award winning Climate Action Plan (CAP), utilizing the same integrated staff team approach, combining partnership with the Boynton Beach CRA and Chamber of Commerce. Additional partnerships contributing to the overall program Include Palm Beach County Economic Development Office (PBCEDO) and the Business Development Board (BDB), working together in implementing common strategies and proven practices to increase Boynton's economic presence in the South Florida marketplace. Approved10-18-2011 Economic Development Program The CIty Commission's foresight In a recent decIsion to Include Economic Development In the budgeting process will provide the Initial capital to begin work on the program Coordinated efforts between all city departments led by Development Utilities and Public Works, will be cntlcal to the initial Implementation and overall program's success This program recognizes the financial challenges that the City IS faCing and that some of the recommendations will require dedicated funding sources The current development of a long-term economic strategy underscores leadership s long-range perspective and understanding of the fact that reaching frUition and transforming plans into reality takes time for the dreams to matenalize The Economic Development Program is not a reflection of a single administration, but rather the composite of long range VISions carried from one to the next II. Supportina Studies The following supporting studies contnbuted to the findings, concluSions and recommendations Included In this report CRA Economic Development Plan (2008) The Development Atlas of Boynton Beach (2009) VISion 20/20 Plan (1998) Downtown VISion and Plan (2009) Climate Action Plan (2010) Heart of Boynton Community Redevelopment Plan (2001 ) Federal Highway Corndor Plan (2001) Ocean Dlstnct Community Redevelopment Plan (2003) Boynton Beach Boulevard Corndor Plan (2006) Economic Development Issues and Strategies - Staff Economic Summit (2002) Art In PubliC Places VIsioning Plan (2010) Boynton Beach Assembly, Committing to our Future (2001) III. Brief Citv Historv. Location and Market Access Initially settled In the late 1800.s by Maj. Nathan S Boynton, and Incorporated In 1920 onglnally as the Town of Boynton, today the City of Boynton Beach has grown to become the third largest city In Palm Beach County, With a 2010 Census population reported at 68,217 The City has a number of location advantages which contnbute significantly to its overall economic potential, descnbed In part below . Encompassing roughly 16 4 square miles, the City IS located approximately 45 miles north of Miami and 15 miles south of West Palm Beach Within the heart of southeast Flonda's tn-county Dade/Broward/Palm Beach metropolitan areas Approved10-18-2011 Economic Development Program . The city has direct access to the Intracoastal Waterway and both Interstate 95 and the Florida Turnpike accommodating regional as well as interstate travel; . It also has a market of over 6.5 million people within a 100 mile radius of the city and ready access to three international airports, three major seaports, two major rail lines as well as the Tri-Rail commuter rail system. In the long run, these advantages will continue to benefit the city, its residents and businesses. The metro area of the Palm Beach County has been consistently recognized as one of the leading metropolitan areas in the US in terms of job growth, economic opportunities and entrepreneurship over the last decade. Nevertheless, it has been severely affected by the recession in the overall US economy. Employment in residential and commercial construction, as well as in manufacturing and financial services has suffered significant losses. The average annual unemployment for the county did not exceed 4.5% in the first years of the decade. However, it began to climb rapidly in the second half of 2008, with Boynton's rate peaking during the second half of 2010. Comparison data from August of 2010 to the estimate for August of 2011, shows a drop of 1.3%, from a high of 11.4 (8/2010) to 10.1 (8/2011). IV. Citywide Economic Development Strateaies Target industries and major housing/mixed use developments are Important to assure a focused, successful, and effective strategy. A successful business attraction program not only promotes economic growth but can also provide economic diversification. Boynton's economic niche seems to be retail uses, but in the current economic environment, business diversification is critical to assure greater resilience from economic downturn. Adding a greater mix of businesses within the community will proVide greater ability to withstand cyclical declines in various sectors of the local and national economies. Development of new businesses and housing expands the property tax base and increases sales tax. Identifying additional sources of revenues has become increasingly important as the City encounters declining revenues due to lower property values. New Industrial and office development can create a significant number of new jobs within the community, at higher wages than retail. Retail uses need to be diversified as well to ensure that new retail development does not simply divert sales from existing retail businesses, but rather provides additional choices to attract both local and regional shoppers. Unfortunately, a key factor in attracting new industrial uses IS the availability of land, which has decreased in the City over the past decade as a result of conversions of Industrial and commercial areas to residential in an effort to capture additional property taxes during the temporary housing boom This land use is critical in the effort to provide jobs with higher wages and salaries as well as creating much needed diversification of the employment base. City staff will be challenged with analyzing existing land uses and zoning regulations, Identifying the resources needed by the desired target industries with the limited real estate available. Attracting private investors to assemble parcels will be an important element as well. Approved10-18-2011 Economic Development Program 3 The retention and expansion of eXisting businesses IS of equal Importance EXisting businesses provide the foundation from which new business attraction efforts can be based They should be offered assistance and incentives to remain In the City and expand as conditions warrant Reinforcing the need for a concentrated effort In business retention. a 1980 M IT study by researcher David L Birch determined that up to 80% of any Job growth is generated by existing companies rather than the attraction of new industries The findings of this research were supported by a study by the Ohio Dept. of Development whIch IndIcated that 70% of Job growth in that state came from eXisting firms Birch also and estimated that there were over 15,000 Economic Development Organizations around the country chasing fewer than 200 major business relocations and expansions annually. In other words, the most important jobs in any community were the ones it already had. Moreover, business retention Indirectly supports new business attraction efforts because one of the main ways that CEO's evaluate a new community for possible Investment and relocation IS through the images gained by networking with their local counterparts Staff recommendations for promoting business retention are based on information obtained by field and intake staff to make the preliminary identification of businesses about to expand or in contemplation of moving, and to forward contact Information through the Economic Development Team Liaison or Economic Development Director for follow-up Similar processes would occur within the CRA and Chamber of Commerce, funneling contact Information to assure that there is clear communication and a designated business contact person who can provide Information and assistance for expansion or relocation within the City V. Qualitv of Life - Education/Housin~/Culture/Cost of Livin~ The importance of a perceived quality of life in any analysIs of the strengths and weaknesses of a given community cannot be over emphasized, as Indicated In the following chart prepared by the Corporate Real Estate Group of Ernst and Young, It clearly indicates that "Lifestyle Factors" related to quality of life are the ones that most commonly influence corporate location decIsions Approved10-18-2011 Economic Development Program -+ CORPORATE LOCATION DECISION CRITERIA Quality of life Index 1. Housing Ouality/Neighborhood Integrity 2 Education Quality 3. Employment Security and Choice 4. Police Services/Perception of Security 5. Shoppers Goods/Availability and Choice 6. Medical ServiceslDepth of Expertise 7. Regional Recreational Offerings 8. Cultural Opportunities 9. Transportation System/Ease of Access 10. Taxation Levels/Services Provided 11. Integrity of Political System 12. Climate/landscape Quality Employer/Business Preference Criteria 1. Quality of Lffe Index 2. Area Work Ethic 3. Area Tax Considerations 4. Available Labor/Clerical Pool 5. PoltticaVBusiness Coalition 6. Advance Growth Planning 7. Regional Economic Outlook 8. Financing/Assistance 9. University R&D Capabilities 10. Gateway Airport!Transportation 11. Incuoator Opportunities 12. Foreign/Domestic Market Access Source: Ernst & Young. In this regard, the following are a few of the key quality of life factors as they apply to the City of Boynton Beach. Education: Even though the educational attainment level of the City's population over age 25 has been improving, the City continues to lag behind the three other largest municipalities in the Palm Beach County and the county as a whole, most notably in the "bachelor's degree or higher" category. According to the 2009 American Community Survey, only 25.9% of the City's residents over age 25 were holders of bachelor, graduate or professional degrees. The 2009 numbers for Boca Raton, Delray Beach and West Palm Beach were 45.9%, 33.9% and 30.1 % respectively; and in the county as a whole, 31 % of residents were in the highest educational attainment category. Housinq: Due to the continuing decline in housing prices, the affordability of homes in Boynton Beach has improved dramatically. According to the April 2011 Realtor's Association of the Palm Beaches report, the median sales price of a home in the City (including single family, townhome and condos) decreased from $165,000 for the January - to - April period in 2010, to $130,000 in the same period in 2011. The peak pre-recession median sales prices for a single family Approved10-18-2011 Economic Development Program 5 home, townhome and condominium were $280,000, $223,000 and $168,000 respectively Distressed sales continue to depress pnces Moreover, mortgage rates remain very low, local lenders offer on average 400% to 4.500% for a 30 year mortgage At the same time. new, much more ngorous underwntlng standards of local (and national) banks have made obtaining a loan difficult In February, an overall vacancy rate In rental apartment projects In Boynton Beach market was 5.7%, Indicating a reasonable availability of units, The rental markets In Delray Beach and Boca Raton were significantly tighter, With rates of 4.8% and 28%, respectively. Markets were much softer In the West Palm Beach/Royal Palm Beach areas. with rates between 65% to 154% (data from Wolf ASSOCiates). Cost Of LlvlnQ. Although cost of liVing Indexes quoted by different sources dIffer significantly, the January 2011 data from the clty-data.com webslte shows Boynton Beach to have the lowest cost of liVing of the Palm Beach County's neighbOring municipalities with populations over 50,000. Boynton's index was 101.8 (as compared to 100 for the US as a whole), the indexes were 1022 for West Palm Beach, 102 4 for Delray Beach and 104 for Boca Raton DemoQraphlcs: Over the last two decades, there has been a significant trend towards more racial and ethnic diversity The White population group declined from about 78% in 1990 to 62% in 2010 At the same time, the number of African Americans and Haitian Amencans Increased by 122%, and now constitute over 30% of the population Another continuing trend is the increase of HispaniC and Latino residents In the City. The share of thiS ethic group rose from 7% In 1990 to 13% in 2010 Generally, about 23% of the City's population IS foreign-born and 28% of the City's population speaks a language other than English. This demographic profile contributes to the cultural vibrancy of our community and, simultaneously. creates challenges In terms of accommodating diverse service needs The following chart IS denved from the 2010 annual survey by CNN and Money Magazine of the 100 Best Places to Live In the United States. The online survey provides a tool which allows for compansons to be made between any two communities using a range of demographiC criteria Of the .. 100 Best Places", there were three located In Florida. However, Wellington. ranked number 72 was the only one In Palm Beach County Approved10-18-2011 Economic Development Program h CNN.MONEY Magazine 100 Best Places to Live 2010. Comparison Selected Factors 100 Best Places Wellinaton. FL Bovnton Beach. FL Averaae (Rank: 72 of 100) Median Family Income (per year) $90,957 $99,154 $59,143 Sales Tax 545% ,600% 600% State Income Tax (Highest) 735% NA NA Auto Insurance (state Average) $1,707 $2,076 $2,076 Job Growth % (2000 -2009) 1571% 24 68% 524% Median Home Pnce $239,391 $270,000 $114,500 Average Property Tax $3,418 $3,764 $3,673 Test Scores -Reading (% above/below state average) 22 90% 30 90% -6 60% Test Scores -Math (% above/below state average) 22 90% 30 50% -6 40% Colleges/UniversIties (within 30 miles) 25 7 9 Completed at least some college (% of adult residents) 71 50% 70 60% 51 50% Median Age 353 384 435 Personal cnmelincldents (per 1,000 population) 2 4 10 Property cnmelincldents (per 1,000 population) 24 32 54 Median Commute time (minutes) 21 4 30.4 214 Air Quality Index 77 80% 92 00% 92 00% (% days AQI ranked good) Annual precipitation (inches) 374 5926 5926 Avg hIgh temp In July 862 F 908 F 908F Avg Low temp In January 213 F 565 F 565 F Movie theatres (within 15 miles) 31 26 28 Restaurants (within 15 miles) 2,967 1,635 2,143 Bars (within 15 miles) 207 84 107 Llbranes (within 15 miles) 72 27 30 Museums (within 30 miles) 10 5 8 The previous chart clearly indicates that, when compared to some of the "Best Places to Live," Boynton Beach compares favorably in terms of climate, air quality, home prices, state sales tax, restaurants and theatres. However, it compares less favorably in such key quality of life categories as median income, median age, education, job growth and crime. VI. Economic Base and the Competitive Market. Location Quotient Analvsis The next step in assessing the strengths and weaknesses of the community is to determine the types of businesses that make up the economic base of the community. The survey conducted of existing local companies serves as an important source of information in determining what businesses and industries Approved10-18-2011 Economic Development Program 7 the community IS likely to attract. By examining the characteristics. needs preferences and stage of development of local businesses it IS pOSSible to gain insight Into the needs and preferences of other companies that might be attracted to the city The survey and the follow-up interviews can also reveal complementary businesses and Industnes such as suppliers and buyers that could be attracted to support the eXisting economic base However, Simply Identifying local bUSinesses IS not. In and of itself, suffiCient to fully understand the local economic base of a community and ItS competitive advantage It is also necessary to know the size and scale of the operations relative to other local and regional economies The baSIC technique for analYZing the local economic base and ItS strengths IS the Location Quotient Analysis. The location quotient reveals certain bUSiness or Industry concentrations based on the prinCiple that certain business or industry groups locate in areas that satisfy the needs of that particular Industry or sub- sector A community with a relatively high concentration of bUSinesses In a particular Industry can be said to have a competitive advantage In that industry The location quotient IS determined by taking the local percentage of employment In an Industry based on its classification. and divides that number by the percentage employed In the same Industry of some reference economy such as a competing community In the case of Boynton Beach. Palm Beach County was used as the reference economy Industnes with a ratio greater than one (1), Indicates that a community IS competitive In that Industry relative to the reference economy. A ratio of less than one (1) indicates a relative weakness In that particular industry LQ = Percentaqe of employment in Industry X in the local economy Percentage of employment In industry X in the reference economy Based on the sample location quotient analYSIS below, It would appear that the City of Boynton Beach has strengths In the following areas Educational Services Transportation/Public Utilities Retail Trade Health Services Social Services By the same token the City appears to be weak In such areas as manufactunng, wholesale trade, financial services and tourism related areas such as hotels and lodging. This tends to confirm some of the anecdotal eVidence that, compared With Palm Beach County as a whole, a significant portion of the city's population tends to Approved10-18-2011 Economic Development Program >-I work for employers such as the Palm Beach County School District; FPL, Water Utilities or Comcast Cable; Bethesda & JFK Hospitals and their nearby medical offices as well as the various retail stores and shops around the mall and the Congress Avenue corridor. Sample Location QuotIent ca/cu ator usmq se ect pnva e sec or employmen ca egones om BOYNTON BEACH PALM BEACH COUNTY BOYNTON INDUSTRY EMPLOYMENT. EMPLOYMENT, Location EMPLOYMENT PERCENT OF EMPLOYMENT PERCENT OF Quotient TOTAL TOTAL Construction 2,730 73% 34,924 7.5% 0.97 Manufactunna 1,362 3.6% 18,131 3.9% 0.93 TransportatIOn/Public Utilities 994 2.7% 5,405 1.2% 2.28 Wholesale Trade 903 2.4% 20,801 4.5% 0.54 Retail Trade 10,336 27.6% 70,393 151% 1.82 Flnance/ Insurance/ Real Estate 2,956 7.9% 37,763 81% 0.97 Health ServIces 8,605 22.9% 62,070 13.3% 1.72 SocIal ServIces 903 2.4% 7,997 1.7% 1.40 Educauona/Services 1,837 4.9% 7,504 1.6% 3.03 Hotelslother Lodqmq 152 0.4% 10,672 2.3% 0.18 RecreatIOn 831 2.2% 15,579 34% 0.66 . t fr 2008 VII. Communitv Imaae and the Role of BrandinQ Creating a Brand for a city is more than a process of creating a slogan, advertisement, logo or marketing materials; branding is the cumulative, collective and often complex result of all the political, marketing, operating and development decisions that defines the City's image over time. Boynton Beach has diverse ethnic groups, cultures, districts, neighborhoods, and icons, which when combined, generate an "eclectic" energy. By demonstrating and featuring the various unique and diverse options, the City will be able to expand the target audience and begin the important process of educating the region on its uniqueness - capitalizing on its long history as the "Gateway to the Gulfstream." It almost goes without saying that the image of a location is a critical factor in influencing the decision of businesses or individuals to locate, to invest or to visit a community and it is in this area where the Economic Development Program's marketing initiatives dovetail with Branding. An important part of accurately assessing the strengths and weaknesses involves learning how the local business and residential community sees the City, since they are a core constituency of any economic development program. The community's images are derived from ideas or impressions based on economic, political or physical associations connected with the City. They also Approved10-18-2011 Economic Development Program 9 result from "word of mouth". news stories, personal Impressions and advertising Once developed, the image of a community is slow to change. This is the primary driving factor for staff's recommendation to establish an independent Economic Development Office (BBEDO), separated from City Government the CRA and the Chamber of Commerce. Influenced only by Its miSSion to grow Boynton s economy Essentially thiS independent BBEDO will engage In an ongoing cooperative economic development partnership involving City government, the CRA. the local Chamber of Commerce and existing businesses for the purpose of IdentifYing opportunities to assist local companies in expanding their facilities, creating jobs and diversifYing the local economic base They will be the primary Interface, drawing resources from the partnership entities as needed for administering the Economic Development Plan VIII. Identification of Taraet Industries One of the fIrst actions In creating the Economic Development Plan will require analysis of viable industries to be targeted for relocation to Boynton. A target Industry is simply a group of companies that a given community seeks to attract No city can compete successfully for every bUSiness. In fact, attempting to market to every business In every Industry will weaken the overall recruiting effort and leave little to no impreSSion on any bUSiness in any Industry. Given a limited amount of time and resources It is Important for a community to concentrate Its efforts on those bUSinesses and industries where the community has a competitive advantage, making this a crUCial step in the development of an Economic Development Plan. The question that must be answered is what businesses or Industries best fit the economic assets of the community and cOincide With ItS overall viSion and economic development goals Cumulative Information collected from a Situation analysis, the location quotient analysis and the established goals and objectives will help to identify the appropriate targets for the available land, market demand and workforce. By matching the communIty's characteristics, strengths, capabIlities and goals with bUSinesses that require those or similar characteristics, efforts can be focused on those few high potential firms that are likely candidates for the community Finding those few high potential firms, however, requires extensive market research. This IS because even after segmenting target industries there are literally thousands of firms in a given category In economic practIce, theOries used to Identify and sort these firms include Sector AnalYSIS or Cluster AnalYSIS, which can be very exhaustive and time consuming processes Such methods are typically applied to larger metropolitan or regional areas. The City will rely upon on readily available data from the Business Development Board, Palm Beach County Economic Development Office and Approved10-18-2011 Economic Development Program 10 Treasure Coast Regional Planning Council. What is important at this point is to identify the general categories of businesses and industries that broadly correspond with the community strengths identified in the location quotient analysis. Staff recommends that a preliminary target list be drawn from available data, with further analysis completed as part of the greater Economic Development Plan. To start the Economic Development Plan, the City, CRA and Chamber should undertake the following actions: . Evaluate viability, update and include where relevant, recommendations from the various studies and plans completed to date. · Update and enhance available statistical data sets to provide local and regional figures to improve economic impact calculation analyses. . Establish measurable objectives and timetables for determining the success of marketing campaigns and incentive packages in attracting investment, expansion, relocation and most importantly, job creation. Additional elements that should be considered as part of the Economic Development Plan should include · Analysis of the various districts and geographic areas to determine if there are specific areas of concentration that should be a focus of the plan. (target areas) . Identification of sites that should receive priority marketing. . Analysis of the types of business assistance the BBEDO partnership should be providing to encourage expansion and relocation. . Identification of target specific incentives to be included in the marketing package. · Complete a Strengths, Weaknesses, Opportunities and Threat (SWOT) analysis IX. Implementation. Fundina and Staffina The importance of partnerships in the Economic Development Program cannot be understated. It is the most critical factor in creating a cohesive, complementary effort between all of the entities vying to attract development and businesses to our area. By utilizing the existing strengths and resources of multiple organizations, the cost to any single entity is minimized, duplication of effort is reduced and concise communications clearly maximize exposure beyond what anyone partner could hope to accomplish alone. Boynton Beach is very fortunate to have some exceptionally strong partners in the Economic Development arena. Approved10-18-2011 Economic Development Program 11 Palm Beach County has the national and international distinction of being a premier place to live in the United States. Our weather. exceptional natural resources and amenities alone are enough to grab the attention of millions of visitors each year. That audience of tourists provides a strong introduction to Boynton Beach, and offers one of the best areas for economic opportunity Starting with the County Convention and Visitor's Bureau, the City IS quite fortunate to have drawn the initial focus for their new tourism campaign. complete with distribution of promotional luggage tags encouraging Visitors to "Breeze into Boynton" This offers the City an Incredible opportunity to match the campaign with the new Branding for Boynton, helping to create the quality of life Image so critical to the marketIng efforts The Business Development Board of Palm Beach County IS the next exceptional partner In this collaborative Economic Development Program. Their primary mission IS "to stimulate economic energy, promote business diversity and enrich the vitality of Palm Beach County through the relocation. retention and expansion of companies to our area" Within their organization, the have a broad partnership spanning private, governmental and non-profit entities. With the capacity to market Boynton Beach far beyond the reach of the City In collaboration With the Governor's office, the BDB has embarked on both national and International excursions to attract new businesses to the County They also have several innovative initiatives underway to attract new corporate headquarters Into the County, targeting major corporate executives who own property within the County, but do not have a business presence here. These types of corporate offices are the perfect fit to help expand and diversify Boynton's economic base as there are several shovel ready sites available The City currently provides the BOB With statistical and geographic data, but does not have a marketing piece or video for them to leave behind With prospective new businesses. These marketing pieces should be a primary focus of initial funding for the Economic Development Program to assure Boynton a viable position against the competing muniCipalities and County Palm Beach County's Economic Development Office offers resources, Incentives and assistance that extend to businesses within the City limits. Almost all of the County's Incentives are available to businesses locating or expanding Within the City and can be leveraged with local incentives Funding IS available for land purchase, refinancing, construction, machinery and equipment, energy retrofitting, and working capital The majority of the County's funding comes from Federal and State sources, With additional funds from return on Investments Some of the financial resources available from the PBCEDO Include' . Industrial Revenue Bonds . New Markets Tax Credits . SBA Loan programs . Tax Incentives . RevolVIng Energy Loans Approved10-18-2011 Economic Development Program 1 .2 In addition to financial resources, the PBCEDO has also offered the City the opportunity to utilize their Regional Economic Model (REMI) to determine the economic impact for projects under consideration. Staff is recommending exploring an interlocal agreement for use of this modeling software. The Greater Boynton Beach Chamber of Commerce has been in the community for nearly as long as the City has been incorporated. Founded in 1925, the Chamber is a direct conduit to the business community, acting as both a sounding board for issues and a spring board for marketing. Working diligently with both the City and CRA, they strive to maintain a healthy business climate that helps to both attract new and foster existing businesses. They are considered a primary partner in the City's Economic Development Program. The other key partner is the Boynton Beach CRA. With established, successful incentive programs, the CRA has been able to stimulate strong business activity and create substantial improvements within the CRA district. Having staff dedicated to generating publicity and tracking business activity in the district has been a strong factor in their success, as they do a good job of marketing and promoting their programs through articles in the news media and recognition by key Redevelopment and Economic Development professional associations. The City's staff, as the governmental/regulatory partner, has not generated the level of marketing or publicity of any of the aforementioned partners, but has nevertheless been quietly effective in responding to the needs of the local development community for infrastructure improvements, streamlining of regulations including major revisions in land use and zoning, as well as providing expedited permitting and inspections. City staff is quick to mobilize and address issues as they arise when dealing with potential business relocation. Several new industries, including a microbrewery, indoor recreation use, dog day care, and motorized bicycle store previously excluded from the zoning matrix, were quickly processed by staff to accommodate new businesses entering the City. Key in marketing available development parcels is staff's foresight in availing themselves of zoning, development regulations, and County and State mechanisms to assure that site characteristics vital to attracting major employers are in place waiting for the right opportunity to arise. The Bank of America site on Federal Highway; former Arches site in that same vicinity, Casa del Mar Yacht Club on north Federal Hwy, and the Winchester property on Knuth Rd/Boynton Beach Blvd, are prime examples of the creative use of these land planning tools. Staff recommends in the implementation plan that the City partner with the private sector to more aggressively market these major sites. For the most part, the short-term implementation items contained can be carried out with existing resources as funding becomes available. Mid-term to Long-term items will need to have resources and funding identified. Approved10-18-2011 Economic Development Program 13 It must be noted herein that this IS far from the City's first attempt at an Economic Development Plan. Most unfortunately. In spite of a plethora of plans and studies. there has been little in the way of consistent follow through over the long-term Several failed attempts at both a City Economic Development position and marketing efforts, not backed by an Economic Development Plan, have occurred over the past few decades. Too often the long-term recommendations found III these studies have been sacrificed for short-term expediency Therefore. staff strongly recommends the creation of the Economic Development Plan and establishment of the Boynton Beach Economic Development OffIce as the agency empowered to carry it through X. Monitoring and Evaluation Evaluating economic development activities and the overall impact of marketing on a community can be challenging. The complexity lies in trYing to Isolate the impact of marketing from other factors that lead to local economic development Nevertheless, it IS important that marketing activities be audited to determine what works and what does not work. It IS also necessary to determine the programs that should be continued and those that should be discontinued Attaching metncs to the Implementation Plan will assure that tracking the activities IS providing the desired outcome Periodic reporting, through quarterly reports and annual updates, must occur on a regular basis. Success stories should be celebrated qUickly and publicly, by acknowledgement at public meetings, press releases and through postings on the website. S IDevelopmentlEconomlc DevelopmentlEconomlc Development Program ~Inal Version dOl Approved10-18-2011 Economic Development Program 14 City of Boynton Beach ECONOMIC DEVELOPMENT INITIATIVES & IMPLEMENTION PLAN Timeline Key for initiatives/action items: . (E) Existing (already implemented or underway) · (5) Short-term: (0-2 years) . (M) Medium-term (3-7 years) · (L) Long-term (8 yrs +) . $ Indicates funding required ,..,"- ' " ' Initiatives 1. Utilities- delayed payment of capital Facilities charges/incremental a ment lans 2. Green Building Program - Phase I Commercial Buildings 3. Expedited Permitting (Ord. 09-049) 4. Telephone automated and on line inspection and permit status 5. LOR re-write 6. "Host & Boast" events - USGBC/lCC - June 2011; Gold Coast Builders - September 2011; "Sustainable You" Conference - October 2011 7. Establishment of a separate conditional use process for business approvals: a shorter process, less costly to applicants who seek use chan e within an existin develo ment. 8. Significantly more proactive initiation of code amendments geared at accommodation of business needs - cooperative, joint, and ex editious with cit -wider sco e. Enhanced streetscapes - Seacrest Blvd; 4 j" /.[( (- Time - Cost (E) (E) (E) ZONING DISTRICTS USE REVIEW 10. Review zoning districts for expanded use potential/increased (5) flexibility: a. Adapt to matrix for consistency b. Evaluate C4/M1 use provisions i. Expand C-4 district to include heavy commercial/light industrial uses ii. Accommodate market trends iii. Consider model districts/ordinances (such as "The Light Industrial land Use Toolkit" by IPARC's Industrial land Study Subcommittee) Page 1 of 6 Initiatives 'In,h- _+-__ __~ os ' _ 11 Use approval lists for Planned Industrial Districts (PIDs) {5, a Administrative process for amending or interpreting I ReView use compatibility Interpretation gUides In other communities b Amend lists expanding uses to aVOId/minimize amendments c. Amend to cOincide with new zoning matnx ----......-----'\ ZONING MAP REVIEW 12. Evaluation of Zoning Map for economic diversity/value added (5) a. Comparison overlay of City to County zoning districts for BOB marketing b Not-for-proflt use provIsions c. City-wide evaluation of sites for potential rezoning to commercial or industrial uses 13 Introduction of a policy guiding land use/rezoning decisions (ED (5) plan and Comprehensive Plan amendment). a Area-or parcel-specific b Land use designation-specific INTERIM RELIEF PROVISIONS 14 ReVise Code of Ordinances, Chapter 8. to clarify target businesses T (5) and specify incentives ' -t---. 15 Potential targets for Intenm relief provisions In economic recession ; (5) a Identification - Workforce Housing; Utilities fees, Planning & $ Zoning fees; Building fees; County Impact fees; Engineering fees I. Expand opportunity for Utility fee nO-interest payment plans to the entire City (Currently limited to CRA) b. Implementation through ordinance changes - Temporary suspension; fee reductions; payment options; waivers; rebates DEVELOPMENT PROCESS REVIEW AND ENHANCEMENT 16. Adopt operational goals/objectives to gUide-E'o T~~'m-I~-i~;herin'~ -T- (5)" the economic initiatives -, a Through the Planning Department pre-application process. Identify early project needs, hurdles, etc and proactively seek Info and necessary solutions b. Team based liaison service, to Include Interface with outSide agencies on prospective business' behalf (E) (E) Page 2 of 6 Initiatives Time - Cost 17. Review processes for improvements (5) a. Create an expeditious, streamlined process for expired/previously reviewed projects b. Continue automation efforts to increase speed and accuracy of $ communications related to applications, reviews and completions. c. Expand options for administrative review to expedite development and reduce costs due to time delays d. Continue efforts with the County to develop unified application and review processes for building related activity 18. Add Economic Development Program (when completed) as an (L) element to the Comp Plan 19. Establish a procedure in Business Tax for identifying and tracking (5) new and existing businesses for follow up by the Economic Development office to offer retention/expansion services. 20. Development ATLAS update (8) 21. Web based Business Tax information in GIS format, updated (E) quarterly 22. Business Tax statistical information - historic trends with annual (5) review 23. Enhanced Permitting services - On-line digital submittal and (5) comment reply. $ 24. Projects in permitting >$100K in value - monthly report (E) 25. Projects in permitting >$100K in value - monthly report - GIS (M) Format 26. Customized small scale market research for applicants (M) $ 27. Inventory/maintain vacant land and leasing space availability (M) 28. Establish documents explaining effects of new laws on processes (M) and applications 29. Development process flow-charts, facts sheets, and cost schedule (M) for distribution 30. Business Tax fee structure analysis (requires State legislative (M)/ change) (L) $ 31. Integration and codification of Sustainability initiatives that offer (M)/ economic incentives, such as credit for on-site water processes (L) that avert the necessity for increased capacity/capital facility costs $ Page 3 of 6 r::~.~''l_''~~~~~l'''1!l''''~",'~.~''!"~~'' I , .' . ,01 >' ~~~~l!;;V.i4W'ijWf>>klt;;f.;;~..."t~~~S"I<i~I~ l%i.Ii:~..~~~ Wl!t;,;j~;n~i!H.:iliI~~1i""fl;i;~~ """.!l:IJiiiiMj;U<l~~~~JfRt~;;"~,.w_", U!jjpR.~W;~~hJ.", " _" ~t ~ M.it.i~,,,i!I ~,a;: J""""#~~~~ - Initiatives 32. Develop a comprehensive Economic Development Plan. including goals and objectives from the City, Boynton Beach CRA and Greater Boynton Beach Chamber of Commerce ------~----~---. ~ - - ""----r--- 33. Implement Branding Program a Host a major kickoff event b Partner with County ViSitors Bureau efforts to maximize "Breeze Into Boynton" campaign with City's branding efforts 34. Establish/maintain network with related agencies re bUSiness retention, growth, additional inCentIves, etc. (PBC EDO, BOB; CVB) 35. Host a major stakeholder event to introduce the plan and gather data to support Target Business analysis Suqqested stakeholder list a Cornmuntty Redevelopment Agency b. Greater Boynton Beach Chamber of Commerce C BUSiness Development Boare d Convention and VISitors Bureau e Agency for Workforce Innovation f Educational Institutions PBSC FAU Flonda Career College 9 Real estate boards and aSSOCiations (Realtors ASSOCiation of the Palrn Beaches) h Large real estate cornmerclal brokerage firms (CBRE Cushman & Wakefield etc, Local developers/agents/land use lawyers Large landowners/employers for regular and early Identification of Issues (BB Mall, Bethesda, Compson, Winchester property, Quantum vacant parcel etc I Other local/county governments for feedback on program success Community Relations Board m. COBWRA n o I. k I. Greater Boynton Beach Foundation Palm beach County Cultural CounCil p. Untted Way q Banks/Financial Institutions r BUSiness Development Firms (I.e Paul Skyers) S Venture Capital - Including mlnonty/speclalty finanCing Children's Services Council U Literacy Coalition v WXEL W School Board X Neighborhood ASSOCiations y Non-Chamber affiliated bUSinesses to Include mlnonty and small scale Z International/global bUSiness connection (needs to be Identified) aa. Small BUSiness Administration bb. Urban League CC TED Center 'lfH' (5)/ (M) (5) $ $ r-(5)- (5) $ ~---- ------------~~--- - -----~- ,- --- Page 4 of 6 Initiatives Time - Cost 36. Coordinate job training resources and opportunities through (5) Workforce Development, local education institutions and HUD 37. Create an Economic Development Web page (5) Sample site: http://www.rockvmountnc.Qov/econdev.html) a. Feature active marketing of previously approved/vacant/for sale properties:, such as: . Arches Location: Ocean Ave/US1, Acreaae: 4.69; Opportunity: Mixed Use: previously approved for 55,164 square feet of commercial/378 residential units . Casa del Mar Yacht Club Location: 2632 N. Federal Hwy; Acreaae: 4.11; Opportunity: marina and yacht club, approved for 320 dry/35 wet slips, 75,013 sq ft of building area. . Bank of America Location: 114 N. Federal Hwy; Acreage: 3.0; Opportunity: High density mixed use; current use: branch bank . Winchester property Location: Knuth Rd/Boynton Beach Blvd; Acreaae: 13; Opportunity: commercial (Planned Commercial District; current use: vacant 38. Develop a youth connection (5) a. Use social media outreach b. Integrate marketing message into an attractor events such as the $ International Kinetic Art Exhibit and Symposium c. Through educational outreach in cooperation with local schools, area Universities, & Colleges. 39. Establish an Economic Development Team consisting of City, CRA (5) and Greater Boynton Beach Chamber of Commerce staff with designated Team Liaisons within each organization 40. Hire an Economic Director/Program Coordinator (5) $ 41. Establish an independent Economic Development Office funded by (M) partnership with Boynton Beach CRA and Chamber of Commerce $ 42. Establish a PACE funding mechanism to assist Business and multi- (S) family developments in funding energy upgrades in partnership $ with the Greater Boynton Beach Chamber of Commerce's Green Business Program. 43. Expand PACE into residential marketplace (should favorable Federal (M) legislatton be enacted) $ Page 5 of 6 .., --T1me-- ~051 ----t--- (M) $ -------------+---- (5) Initiatives 44. Annexation' ISBA program (If program continues) 45 Formalize and expand the "Host & Boast" (Gateway Ambassadors?) program through the creation of standardized marketing points ------------------- 46 Research best practices related to monetary & other incentives (assuring results oriented payback and best ROI) a Partner with County EDO through Interlocal Agreement to utilize software to analyze economic Impact of prospective businesses and site development Explore potential to utilize b New Market Tax Credits c EDA Title 9 Grants d. SBA 7 (a) Loan Program e SBA 504 Loan Program f CDBG Section 108 Loan Program g Fee Waiver, reduction, rebates h Tax Credits/incentives Revolving Loan Funds (public/private partnership) J Grant opportunities k Planning and professional design fee rebates I Relaxed parking requirements m Density bonuses 47 Prepare a Business Marketing Packet, to include all available Incentives, demographics, and quality of life Information -- ---T-(Sf - $ 49. Prepare a BUSiness Recovery Plan to establish a Business Recovery Center following emergency/disaster events. Approach Palm Beach County Economic Development Office about interlocal agreement to share the Regional Economic Model Software (REMI) for determining a projects economic impact to the City_ ---------- --------------~---- Explore the reprogramming of future CDBG allocations toward Economic Development (5) $ (5) 48_ +--- - , (5) $ 50 (5) -~._---- " DC\l:lopm<:nt /\dIll1l1htrdtl(1n'C C '\~<:Ildd Ikllh :'(111 H Ol\J DI- \ 1'\.111 '\ 1IV[-<" "DC)!> rFD 111- I' 'I .1"_ Page 6 of 6 City of Boynton Beach Economic Development Program Quarterly Report For the period: October - December, 2011 Presented to City Commission on February 7, 2012 At the October 18, 2011 City Commission meeting, the Mayor and City Commissioners unanimously agreed to accept the recommendations of the Economic Development Program along with the Economic Development Initiatives and Implementation Plan (EDIIP). This approval directed City staff to begin/continue work on the implementation initiatives. As requested, internal initiatives that can be implemented by City staff have been moving forward, and all initiatives that would have fiscal and/or economic impact to the city and community are being brought before the Commission for policy direction. This is the first of a regular cycle of quarterly reports that will be brought back for City Commission review of progress and discussion for adjustment In priorities. It is staffs desire to Inform and educate, give status reports and answer questions, and receive direction from the Commission. Please accept this quarterly report for the periOd of October 2011 through December 2011. City staff will provide any additional information at the request of the City Commission. Completed initiatives are indicated in grey. Active items accomplished or underway during the reporting period are highlighted In yellow. Notes or an adjustment to the projected timeline or cost is indicated in blue. Please note that the integrity of the original numbering system from the approved EDIIP has been maintained to assist in associating the various initiatives with Commission Agenda item references. ECONOMIC DEVELOPMENT INITIATIVES & IMPLEMENTION PLAN Timeline Key for initiatives/action items: · (E) Existing (already implemented or underway) · (S) Short-term: (O-2 years) · (M) Medium-term (3-7 years) . (L) Long-term (8 yrs +) (E) '1 L 3. 4 5 6 ermlt status (E) (E) (E) (E) IE) USGBC/ICC June 2011, Gold Coast S IDevelopmentlEconomfc DevelopmentlQuarterly ReportslStaff Report Oct - Dec 2011 doc N Byrne oog 1-19-2012 ------1-- - - ZONING DISTRICTS USE REVIEW ---, ! ----~ 10. Review zoning districts for expanded use potential/increased flexibility a Adapt to matrix for consistency b Evaluate C4/M1 use provISions Expand C-4 district to Include heavy commercial/light industrial uses II Accommodate market trends III ConSider model districts/ordinances (such as .'The Light Industrial Land Use Toolkit" by IPARC's Industrial Land Study Subcommittee) 11 Use approval lists for Planned Industrial Districts (PIDs) a Administrative process for amending or interpreting Review use compatibility Interpretation gUides In other communities b. Amend lists expanding uses to avoid/minimiZe amendments c Amend to COinCide with new zoning matrix (E) NOI in place to ':onduct studv (E) NOI in place to conduct study ZONING MAP REVIEW I ~ 12 Evaluation of Zoning Map for economic diverSity/value added a. Companson overlay of City to County zoning dlstncts for BOB marketing b Not-for-proflt use provISions c City-wide evaluation of sites for potential rezoning to commerCial or Industrial uses 13. Introduction of a polley gUiding land use/rezoning decisions (ED plan and Comprehensive Plan amendment) a Area-or parcel-specific b. Land use deSignation-specific 15 Potential targets for interim relief provISions In economic recession a Identification - Workforce HOUSing; Recreation Impact Fees, Art-In-Publlc Places, Utilities reservation and capital facilities fees, Planning & Zoning fees, BUilding fees, County Impact fees, Engineering fees b Implementation through ordinance changes - Temporary -,--- (E) NOI in place to conduct study (E) NOI in place to conduct study (E) WorkforcE.' Housing temporary suspension, Ord 11-031 Recreation Fee adjustment Ord S \Development\Economlc DevelopmentlQuarterly Reports\Staff Report (Jr.' - {)er 2011 dOl N Bvrnf. 'no 1 '9-201 L suspension; fee reductions; payment options; waivers; rebates 16.Adopt operational goals/objectives to guide all in furthering the economic initiatives. a. Through the Planning Department pre-application process, Identify early project needs, hurdles, etc and proactively seek info and necessary solutions b. Team based liaison service, to Include interface with outside agencies on prospective business' behalf 17. Review processes for improvements a. Create an expeditious, streamlined process for expired/previously reviewed projects b. Continue automation efforts to Increase speed and accuracy of communications related to applications, reviews and completions. c. Expand options for administrative review to expedite development and reduce costs due to time delays d. Continue efforts with the County to develop unified application and review processes for building related activity 19. Establish a procedure in Busmess Tax for identifying and tracking new and existing businesses for follow up by the Economic Development Director's office to offer retention/expansion services. 21. Web based Business Tax information in GIS format, updated quarterly 24. Projects in permitting >$100K in value - monthly report 34. Establish/maintain network with related agencies re business retention, growth, additional incentives, etc. (PBC EDO; BDB; CVB) 11-032 (E) Kickoff City ED Team meeting 11/8/2011 Development processes in effect 11/1/2011 (E) Staff is in the process of reviewing software and obtaining quotes for enhancements. Universal Building Application was activated 12/1/2011 (E) Monthly/Quarterly reports distributed to CRA and BB Chamber (E) Map is available on Web, updated dail (E) Report created & distributed monthl (E) City staff regularly attending BOB & GBB Chamber meetings; ongoing communications with PBC EDO S IDevelopmentlEconomlc DevelopmentlQuarterly Reports\Staff Report Oct - Dec 2011 doc N Byrne oog 1-19-2012 INTERIM RELEIF PROVISIONS ~ ~~_~ _ ____.. _ _ _~ _~_~ J _ ,---.----- . (5) 14 ReVise Code of Ordinances Chapter 8 to danfv target bUSinesses and s eCI Incentlve~ DEVELOPMENT PROCESS REVIEW AND ENHANCEMENl 18. Add Economic Development Program (when completed) as an element to the Comp Plan I A nrrlll.lt.UI..'I': ..",... 20. Development ATLAS update 22. BUSiness Tax statistical Information -~ histone trends with annual review 23. Enhanced Permitting services - On-line digital submittal and comment reply 25. Projects In permitting >$100K In value - monthly report - GIS Format 26 Customized small scale market research for applicants + -+- , 27 . Inventory/maintain vacant land and leaSing space availability 28 Establish documents explaining effects of new laws on processes and applications 29 Development process flow-charts, facts sheets. and cost schedule for dlstnbutlon -------- ----..-\--- 30. BUSiness Tax fee structure analysIs (requires State legislativE; change) 31.lntegratlon and codification of Sustalnabllity initiatives that offer economic Incentives, such as credit for on-site water processes that avert the necessity for Increased capacity/capital faCility costs :\, 32 Develop a comprehensIve EconomIc Development Plan, Including goals and objectives fro the City, Boynton Beach CRA and Greater Boynton Beach Chamber of Commerce 33. Implement Branding Program a Host a major kickoff event b Partner with County VIsitors Bureau efforts to maXimize '"Breeze Into Boynton" campaign With City's branding efforts 35. Host a major stakeholder event to Introduce the plan and gather data via survey to support Target BUSiness analYSIS Suqqested stakeholder list a Community Redevelopment Agency b Chamber of Commerce c BUSiness Development Board d Convention and VIsitors Bureau -- ~ , , , , (L) (5) (5) (5) $ (M) (M) $ (M) (M) (M) (M)/ (L) $ (M)/ (L) $ (5)/ (M) (5) 2/7/201 :c Branding Promise to Commission (S) Pending outcome of Branding effort ________ ...1- _____~____~.__~ - S \OevelopmentlEconomlc OevelopmentlOuarterly ReportslStaff Report o( 1- Dec 2011 doc N ByrnE IVIC, '9-?tJ1/ e. Agency for Workforce Innovation f. Educational institutions: PBSC, FAU, Florida Career College g. Real estate boards and associations (Realtors Association of the Palm Beaches) h. Large real estate commercial brokerage firms (CBRE, Cushman & Wakefield etc) i. Local developers/agents/land use lawyers J. Large landowners/employers for regular and early identification of issues (BB Mall, Bethesda, Compson, Winchester property, Quantum vacant parcel etc ) k. Other local/county governments for feedback on program success I. Community Relations Board m. COBWRA n. Greater Boynton Beach Foundation o. Palm beach County Cultural Council p. United Way q. Banks/Financiallnstitutlons r. Business Development Firms (I e. Paul Skyers) S. Venture Capital - including minority/specialty financing 1. Children's Services Council u. Literacy Coalition v. WXEL w. School Board (Zyscovlch?) x. Neighborhood Associations y. Non-Chamber affiliated businesses to include minority and small scale z. International/global business connection (needs to be identified) aa. Small Business Administration bb. Urban League cc. TED Center 36. Coordinate job training resources and opportunities through Workforce Development, local education institutions and HUD 37. Create an Economic Development Webpage Sample site: http://www.rockvmountnc.gov/econdev.html) a. Feature active marketing of previously approved/vacant/for sale properties:, such as: . Arches Location: Ocean Ave/US 1 , Acreaae: 4.69; Opportunity. Mixed Use: previously approved for 55,164 square feet of commercial/378 residential units . Casa del Mar Yacht Club Location: 2632 N. Federal Hwy; Acreaae: 4.11; Opportunity: marina and yacht club, approved for 320 dry/35 wet slips, 75,013 sq ft of building area. . Bank of Amenca Location: 114 N. Federal Hwy; AcreaQe: 3.0; (S) (S) S \Development\Economlc Development\Quarterly Reports\Staff Report Oct - Dec 2011 doc N Byrne ong 1-19-2012 Opportunity High density mixed use~ r~uITent use-- ------ --.- branch bank . Winchester property Location Knuth Rd/Boynton Beach Blvd, Acreaqe 13, Opportunity commercial (Planned Commercial Dlstnct) current use vacant 38. Develop a youth connection a Use social media outreach b Integrate marketing message Into an attractor event such as the International Kinetic Art Exhibit and Symposium C Through educational outreach In cooperation with local schools area Universities & Colleges (5) $ (5) $ i --- 41. Establish an Independent Economic Development Office funded by (M) partnership with Boynton Beach CRA and Chamber of Commerce $ - --+-- ---------- 42 Establish a PACE funding mechanism to assist Business and multl- (5) family developments In funding energy upgrades In partnership with $ the Chamber of Commerce 43 Expand PACE Into reSidential marketplace should favorable Federal legislation be enacted 44 Annexation ISBA program (If County continues program) 39. Establish an Economic Development Team consisting of City, CRA and Chamber staff with designated Team Liaisons within each organization ----" 40. Hire an Economic Director/Program Coordinator (M) $ ------+--- -----lM) - - - -- - -- ___ -+___-..L.._ _ _______ 45 Formalize and expand the "Host & Boast" (Gateway Ambassadors?) . (5) program through the creation of standardized marketing pOints 46. Research best practices related to monetary & other incentives (assunng results onented payback and best ROI) a Partner with County EDO through Interlocal Agreement to utilize software to analyze economic Impact of prospective bUSinesses and site development Explore potential to utilize b New Market Tax Credits c EDA Title 9 Grants d SBA 7 (a) Loan Program e SBA 504 Loan Program t CDBG Section 108 Loan Program 9 Fee Waiver reduction, rebates h Tax CreditS/inCentives RevolVing Loan Funds (public/pnvate partnership) Grant opportunities Planning and professional deSign fee rebates Relaxed parking reqUirements J k I 5 \DeveiopmentlEeonomie DevelopmentiUualtertv ReportsiStaff Report (lcr Dee 2011 dOl- N Bvrne onC) 1-19-2012 -l--- -- ---- (5) m. Density bonuses 47. Prepare a Business Marketing Packet, to include all available County and City incentives, demographics, and quality of life information 48. Prepare a Business Recovery Plan to establish a Business Recovery Center following emergency/disaster event. 49. Approach Palm Beach County Economic Development Office about interlocal agreement to share the Regional Economic Model Software (REMI) for determining a projects economic Impact to the City 50. Explore the reprogramming of future CDBG allocations toward Economic Development (S) $ (S) (S) $ (S) S \Development\Economlc Development\Quarterly ReportslStaff Report Oct - Dee 2011 doc N Byrne ong 1-19-2012 In May 2010, the City Commission established a Financial Advisory Committee to serve in an advisory capacity to the Commission. The Committee has the general responsibility of: (1) Reviewing the impact of existing or proposed legislative and administrative decisions on the City budget, revenue sources, and operational expenditures and (2) Making recommendations that may favorably impact the City budget and overall financial condition of the City. The Committee consists of seven regular and two alternate members named by the Commission from community residents and business owners. The Committee is using this survey to solicit community opinion and suggestions where appropriate to assist them in developing their recommendations to the City Commission. Your response will assist the Commission obtain the will of the people regarding certain budget decisions. However, in order to respond to the survey questions, the Committee asks that you meet the following two criteria: (1) You agree to the Privacy Policy. (2) You maintain (own or rent) a residence and/or a business that is located within the corporate limits of the City of Boynton Beach. A response is required to survey questions for those items marked with an asterisk * in order to continue with the survey. In order to complete this survey electronically, "cookies" must be enabled in your computer browser. However, paper copies of the survey will be available at City Hall and the Library. This survey only allows respondents to vote once. In order to keep track of respondents who have voted, a cookie (a simple text file) will be created and stored on the respondent's computer. This cookie is created by voting on the survey. It will not contain personally identifying information and will not compromise your privacy or security. The only information that is contained in the cookie is the name of the survey and how the respondent voted. The cookie will remain on your computer for the duration of the survey. The cookie has an expiration date and will be deleted from your computer when that date occurs. In the State of Florida, laws exist to ensure that government is open and that the public has a right to access appropriate records and information possessed by City government. The City of Boynton Beach does not sell, rent or otherwise distribute visitor's information, including electronic mail addresses, to any outside company or organization, unless legally required to do so. This applies to information that may be collected on the City's site and on that of any third party with whom the City contracts to rovide Internet related services. BUDGET SURVEY - CITY OF BOYNTON BEACH (hardcopy) * 1. I agree to the terms of the Privacy Policy. OVes 0 No This survey is open only to persons who own or rent a residence and/or a business within the corporate limits of the City of Boynton Beach. * 2. How many years have you maintained a residence in Boynton Beach? o Less than 5 years 05 to 10 years o 11 to 15 years o 16 to 20 years o More than 20 years o Not applicable * 3. How many years has your business been in operation? o Less than 5 years 05 to 10 years o 11 to 15 years o 16 to 20 years o More than 20 years o Not applicable *4. Please select your City District and Commissioner representing your residence or business. If you maintain a residence AND are also a business owner, check the District of your residence. o District 1 - Vice Mayor Orlove. Located generally west of 1-95 and south of Old Boynton Rd. o District 2 - Commissioner Hay. Located generally east of 1-95 and north of Boynton Beach Blvd. o District 3 - Commissioner Holzman. Located generally east of 1-95 and south of Boynton Beach Blvd. o District 4 - Commissioner Ross. Located generally west of 1-95 and north of Old Boynton Rd. BUDGET SURVEY - CITY OF BOYNTON BEACH (hardcopy) * 5. What is your age? o 18-24 o 25-44 o 45-64 065+ * 6. What is your annual family income? o Less than $30,000 0$30,000-$49,999 o $50,000-$74,999 0$75,000-$99,999 0$100,000+ o Rather not say 7. The following information is optional. However, by providing this information, it will assist the Financial Advisory Committee to sort and analyze responses. Your Name: Business Name: Address: Address 2: CitylTown: State: ZIP: BUDGET SURVEY - CITY OF BOYNTON BEACH (hardcopy) 8. How important were the following factors in influencing you either as a resident or business owner to move to or remain in Boynton Beach? Extremely important Very important Important o o o o o o o o City amenities (e.g., parks, beach, recreation programs, library) City services Cultural factors Employment Housing choices Location Public safety Schools Other: o o o o o o o o o o o o o o o o Moderately important o o o o o o o o Unimportant o o o o o o o o Property taxes and Public Safety budgets are perhaps two topics drawing significant attention during General Fund budget and tax rate discussions. A little background may be helpful before responding to the following budget questions. 1. There is a projected General Fund deficit of approximately $3 M in the next budget year. 2. Public Safety represents nearly two-thirds of the total General Fund budget of $65.1 M. a. The Police budget represents $25.8 M. However, property taxes realized of $22.5 M at the current 7.1941 millage rate is less than the Police budget. b. The Fire budget represents $18.6 M. However, the entire Fire budget is not eligible to be funded by the Fire Assessment. The Fire Assessments levied at the current rate of $88.00 per dwelling unit only realizes approximately 44% of the eligible costs of the Fire Department. 3. Other departments' individual budgets range from approximately $500,000 to less than $3,000,000 in total. BUDGET SURVEY - CITY OF BOYNTON BEACH (hardcopy) * 9. To eliminate the General Fund deficit of $3 M and balance the budget for next year, are you in favor of: o Eliminating or cutting services o Raising property taxes and other fees o Combination of eliminating services and raising property taxes and other fees 10. To maintain the current property tax rate and other fees, which General Fund services would you eliminate or cut? (Indicate all that you would recommend) D Police - Reduce Police coverage D Fire - Close a fire station D Recreation - Close one or more recreation centers D Parks - Close one or more parks D Library - Reduce Library hours D Public Works - Eliminate street lighting D Public Works - Eliminate median landscaping D Public Works - Eliminate street maintenance Other: * 11. Relating to Police coverage/response time, would you rather: o Increase property taxes, or o Reduce coverage and see a possible decrease in response time * 12. The City's Fire Rescue Assessment is a non ad valorem fee (i.e., not based on property value). Are you in favor of an increase in the Fire Assessment to enable Fire Rescue to maintain its current quality levels of emergency response times and level of service? OVes ONo BUDGET SURVEY - CITY OF BOYNTON BEACH (hardcopy) * 13. How much do you agree or disagree that the following taxes and/or user fees should be raised to the extent to which the City is able in order to maintain the City's high level of services? (Franchise fees are fees that the City charges utility companies for the use of City streets and right-of-ways. The utility company (electric, telephone, cable, and water) is allowed to pass the cost on to the customer.) Strongly Agree Franchise Fees 0 Business Tax 0 Receipt (Formerly known as Occupational License) Fines (e.g., Code 0 Compliance violations) Rentals (i.e., of City 0 facilities by the public) User Fees (e.g., 0 beach,boat dock decals; Tennis Center) Agree Neither Agree nor Disagree o o o o Disagree Strongly Disagree o o o o o o o o o o o o o o o o * 14. Would you agree to annual increases of the revenues in the previous question if they were limited to cost of living increases for the South Florida region as published by the federal government? o Yes 0 No 15. What specific suggestions would you have to close the City's projected $3 million General Fund budget gap for next fiscal year? A --' ..,. * 16. Do you support the City continuing to provide annual financial support of approximately $200,000 annually to The Schoolhouse Children's Museum & Learning Center? o Yes ONo * 17. If the City is unsuccessful in attracting a developer to renovate, occupy and maintain the Old High School, do you support the City borrowing funds to renovate the building? If so, this could result in a property tax rate increase from the current rate of 7.1941 to a range of 7.3500 to 7.5000 (resulting in an annual tax increase on a home with a $100,000 taxable value of approximately $15 to $30 annually) in order to repay the borrowed funds. o Yes 0 No MINUTES OF THE FINANCIAL ADVISORY COMMITTEE HELD ON MONDAY, JANUARY 9,2012 AT 6:00 P.M. IN THE LIBRARY ROOM "A," AT THE LIBRARY 208 S. SEACREST BOULEVARD, BOYNTON BEACH, FLORIDA PRESENT Don Scantlan, Chair Dennis Dougherty George Feldman Jeffrey Fisher David Katz Terry Lonergan William Shulman Barry Atwood, Finance Director Chair Scantlan called the meeting to order at 6:00 p.m. The Recording Secretary called the roll. A quorum was present. 1. Approval of Agenda Chair Scantlan advised he wanted to move Item 3 to before Item 2. Motion Ms. Lonergan moved to approve the agenda as amended. The motion was seconded and unanimously passed. 2. Recognition of the appointment of two new regular Committee members . David Katz . Jeff Fisher (moved up from an Alternate Member) Chair Scantlan congratulated Mr. Fisher on becoming a regular member. Mr. Katz was introduced as a newly appointed member and he shared his background with the Committee. 3. Approval of Minutes - December 19,2011 The following are changes to the minutes: On page 5, second full paragraph, Mr. Shulman was not in agreement with the wording. He was of the opinion that the wording misconstrued that the City billed for attorney services, rather than the attorney. Wording was changed to read City attorney bills for additional services. In addition, in the same paragraph the word the should be that. Meeting Minutes Financial Advisory Committee Boynton Beach, Fl January 9, 2012 In addition, in the following paragraph, Public Oversioht Board of Accountants was misstated. On page 2, third item, third line should read economies of scale, not dichotomies. Motion Mr. Shulman moved to approve the minutes. Ms. Lonergan seconded the motion that unanimously passed. At the last meeting, each member was asked to bring a survey question regarding the Old High School. Ms. Lonergan inquired whether the City thought about moving the police department there. Chair Scantlan advised it was one of the options among the many being discussed. There was in-depth discussion regarding the possibilities that had been investigated and are currently being investigated. There was discussion on possibly including a question on the survey asking the citizens what they felt should be done with the Old High School and how much they would be willing to contribute to keep it. It was estimated it would cost between $5 million and $10 million to refurbish it. In response to Mr. Katz's request regarding the purpose of the Committee, Chair Scantlan explained what the role of the Financial Advisory Committee was, and what the City Commission expects from them. 4. Identify member(s) who may have an interest in serving as Vice Chair and submit name(s) to Commission for appointment Mr. Fisher was the only individual expressing interest in the Vice Chair position. The Board accepted the nomination and it would be presented to the City Commission for appointment. 5. Review and assign/reassign any selected study and assignment areas for next year Mr. Katz requested numerous items be provided to him. These included pension contribution percentages by general employees, police and fire and what percentage the City covered. He also requested information on City employees that receive a car allowance and how much it was, a list of who had take-home vehicles, a list of City issued cell phones and Blackberries, who they are assigned to and what the monthly charges were for the last two years by individual. He also requested information on the line item in the budget labeled "attorney legal" and what was spent. Mr. Atwood would provide the information as those studies had already been completed last year. 2 Meeting Minutes Financial Advisory Committee Boynton Beach, FL January 9, 2012 There was discussion regarding the purpose of the pension study how it relates to employee benefits and compared to other cities. There were no other recommendations or comments from the Committee members. 6. Review and approve updated questions to use in the next citizen survey There was discussion on how the general public was made aware of the survey and possibly new ways to get participation involvement. There was a short discussion on the suggestion Mr. Feldman previously had about utilizing Starbucks for distribution of the survey in return for a free coffee. Draft 3 - based on discussion at last meeting: 1. Inserts in the Introduction section how citizen response to the survey helps the City Commission. Mr. Atwood advised he added a sentence to read "We are responsible to assist the Commission to obtain the role of the people regarding certain budget decisions." Chair Scantlan had comments on question #10. He wanted to add other wording to replace the suggestion that some questions are optional, so that the public would know that the information assists the Committee to better make recommendations to the Commission. There was discussion among the Committee on what other questions could be included and which to exclude. On survey question #10, Mr. Atwood would work on rewording the question. 2. Adds the following topics for formulation of questions: #18 - open ended question regarding suggestions to close projected deficit #19 - continued City financial support for the Schoolhouse Museum #20 - favor restoring Old High School at taxpayer expense Mr. Atwood read the questions and Chair Scantlan called for discussion on them. With regard to item #18, there was discussion relating to the budget deficit and how the public would respond to that question. There was consensus to add question 18. 3 Meeting Minutes Financial Advisory Committee Boynton Beach, FL January 9, 2012 With regard to adding question #19, discussion took place and there was consensus to add question #19. With regard to adding question #20, with three disposition options given, and its impact, there was consensus to inform the citizens what the dollar impact would be should their taxes be raised. 3. Consider deleting questions #8 (respondent's age); and #9 (respondent's family income) There was discussion as to whether someone responding would be honest when answering these questions. Chair Scantlan was a proponent of leaving the questions in, but the majority did not see a need for it. Ms. Lonergan suggested eliminating the request for a name in Question #10, and then there would be no need for question # 8 or 9. Motion Mr. Katz moved to omit questions #8 and 9 from survey. Ms. Lonergan seconded it with discussion. Motion failed 1-6 (Chair Scantlan, Messrs. Shulman, Feldman, Fisher, Dougherly and Ms. Lonergan dissenting). 7. Recommended dates and techniques for collecting citizen survey responses Mr. Schulman advised he suggested at the last meeting that in addition to the Starbucks idea, he felt the Commissioners should assist by speaking with their constituents. The Chamber of Commerce should also be contacted. A suggestion was made to utilize all the news outlets that are available. Ms. Lonergan advised that on the HOA list, there are many email addresses that the HOAs could utilize to alert homeowners of the upcoming survey on Survey Monkey. The local newspaper could also advertise the survey. Mr. Feldman reiterated the discussions he had with Starbucks regarding making the survey available to residents and when completed, receiving a free cup of coffee. There was discussion on paper copies versus getting the survey online and measures that would have to be put in place to prevent people from getting more than one cup of coffee. Paper surveys are put in the Library and City Hall. Assignments are that Ms. Lonergan would notify HOAs, Mr. Feldman would coordinate Starbucks, Mr. Shulman would communicate with Commissioners, and Chair Scantlan would contact the newspapers, leave surveys in the Library and City Hall, and contact the Chamber of Commerce. 4 Meeting Minutes Financial Advisory Committee Boynton Beach, FL January 9, 2012 8. Update by Committee members regarding progress to date of their study and assignment areas. Mr. Shulman updated the Committee on his assigned areas of business license tax and business fees/assessments. He advised he met with Mr. Atwood and also sent em ails to the City of Lake Worth, Delray Beach, Palm Beach Gardens, and Wellington. He also used the internet to obtain the fees charged by Boca Raton. He had not received a response from all, but received responses from Lake Worth and Wellington. He would follow up with Delray Beach and Palm Beach Gardens. He and Mr. Atwood would then put the various license fees and assessments on an excel spreadsheet and provide the results and comparisons. Mr. Fisher provided an update on his assignment on the tax base. He received an email from Ms. LaVerriere and read it to the group. He passed out two spreadsheets indicating that it was the report discussed briefly at the last meeting. Ms. LaVerriere wanted more detailed direction on what the Committee wished to do, but advised the City was addressing the issue via an economic development plan. In addition, he explained his progress to date on the local sales tax. He read the rule from the Florida Tax Handbook which stated that a local tax could be implemented by a county, municipality or school district. Boynton Beach was not included in the municipalities. Mr. Dougherty updated his assignment, Parks and Recreation. He advised he met with Mr. Majors and received a good overview. He received the report that was completed last year and wanted to know what the objective was for this year. As to the update on the Schoolhouse Museum, he contacted Amy Hever and had not heard back from her. In regard to the public communications hub, a study would be provided by the Police Chief when completed. He would call and introduce himself to the Police Chief. Ms. Lonergan advised she also called Mr. Majors as she was not sure how to begin her assignment, City Parks Usage Analysis. She advised Mr. Majors indicated he would never close a park because there was a per capita requirement. Each community that had a park changed it so it met specific criteria for them. She wanted the Committee to explain what her project entailed. Chair Scantlan suggested that if it was a study that could not reduce costs or gain revenue, he would recommend the item be dropped from the list. Mr. Feldman updated the Committee on his study assignments, Capital Improvement Plan Analysis and Public Works Services. He spoke with Jeff Livergood about various items and was provided a Capital Improvement Plan which had been submitted to the City Commission. Since there was a lot removed from the previous years, he wanted clarification on how to handle this item and wanted to know if he was expected to reduce it even more. He felt nothing more could be done. Chair Scantlan suggested he talk to Mr. Livergood and clarify what had been done and complete a financial analysis indicating what money was being spent. On the utility side, he discussed the issues of 5 Meeting Minutes Financial Advisory Committee Boynton Beach, FL January 9, 2012 sale and privatization with Mr. Livergood and was referred to Kofi Boateng. He would contact Mr. Boateng and set up a meeting to discuss all the utility assets. Chair Scantlan advised this year the Committee should discuss the value of having each department head discuss their budget once the City Manager puts out the budget cutting strategy. Should it be handled the same as last year? Was it valuable to the members in doing their studies? Mr. Atwood indicated the purpose was to provide familiarity with the scope of the departments. After discussion, it was the consensus not to have general discussions with each department head. Ms. Lonergan's area of study was contracts without expiration dates. Since the City Attorney was the only contract with no expiration, she would set up a meeting with him. There was clarification that the City Attorney was here at the pleasure of the Commission and was appointed. At any point in time, the Commission could vote him out. He would be the only "department head" contacted at this time. 9. Adjournment There being no further business to discuss, Mr. Feldman moved to adjourn. The motion was duly seconded and unanimously passed. The meeting was adjourned at 8:02 p.m. ~f d Ii' C . ()AJA.J!-c~ Ellie Caruso Recording Secretary 6