Regional Business Summit Friday, December 9, 2011

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1 Regional Business Summit Friday, December 9, 2011

2 Organizing Committee

3 Market Segments: Market Segments: Public Sector Businesses

4 Most employers do business in at least 4 Counties

5 These issues, addressed regionally, can help spur business growth: Capital Access Permitting Government Taxes

6 Next Steps: REGIONAL WORK GROUPS Co-Chaired by Business/Government Leaders from different Counties Streamlining Permitting & Licensing Reviewing Governmental Transaction Fees Creating Access to Capital

Next Steps: Partner with Workforce Florida

7 Next Steps: Partner with Workforce Florida s Statewide Initiative The Florida Eight is a strategic project funded through Workforce Florida to build regional capacity; job and business retention; international diversification; and empower regional collaboration.

9 Creating Access to Capital Accomplishments and Outcomes Wesley T. Bal Senior Loan Originator Fidelity Funding Mortgage Mary Hurley Real Estate & Leasing Manager Pineloch Management Group

11 Creating Access to Capital Accomplishments and Outcomes Wesley T. Bal Senior Loan Originator Fidelity Funding Mortgage Mary Hurley Real Estate & Leasing Manager Pineloch Management Group

12 Creating Access to Capital Regional Work Group Mission GOAL Present clear and concise recommendations regarding the maintenance of a healthy lending market so the Central Florida Region can create jobs and achieve economic prosperity. Focus on distressed real estate assets

13 Why preventing foreclosures is good public policy Many of Central Florida s most prominent entrepreneurs and small business owners started their endeavors with funding made available from their largest asset: THEIR HOMES

14 Definitions for Central Florida Negative Equity : is when the value of an asset used to secure a loan is less than the outstanding balance on the loan. Negative Equities impacts the entire regions credit worthiness

15 Key Questions With the current market of 1 in 4 people in delinquency, how do we as a region impact Negative Equity and stabilize the economy? Are the current processes employed by banks to facilitate foreclosures financially and cost effective? How do we improve confidence of the future value of the single biggest asset for most families?

16 Critical Findings Central Florida could lead the nation in solving this issue for our region, our state and perhaps, the nation.

17 Recommendation One Establish a Regional Resolution Trust Corporation The trust will be a not for profit corporation: The Central Florida Resolution Trust Corporation (CFRTC) The CFRTC will have three primary lines of business: Mediation Asset Redistribution Consumer Education

18 Recommendation One (Cont.) The CFRTC Trust and Sponsors will focus on four key goals: Provide a more efficient and cost-effective mechanism for transferring inventory of foreclosed properties Combine capital from national private and philanthropic sources Coordinate efforts to build local capacity, organize local collaborations and share best practices to develop an effective regional stabilization and economic support program. Serve as a regional focal point and as the primary resolution source for distressed property mitigation, foreclosed property reuse and community stabilization

19 Recommendation Two Enhance & Revise Federal Housing Regulations Expand bulk purchase options for large-scale investors from the Governmental Sponsored Enterprise (Fannie Mae & Freddie Mac) otherwise known as simply GSEs Adjust HUD current regulatory criteria

20 Recommendation Three Enhance & Revise Banking Regulation Policies and Examination Treatment regarding Underwater Mortgages, Bank Owned Real Estate (REO) and Short sales: Review examination costs for healthy institutions and Review Risk assessment and compliance requirements to reduce fees to banks Change Heavy Reliance on FICO Scores & Regulate Credit Data

21 Recommendation Four Enhance & Revise Florida s Mandatory Mediation Program & consider passing legislation to change Florida s Judicial Foreclosure System

22 Recommendation Five Support Regional Dialogue & Input under State & Regional Funded Initiatives The dialogue that the Open for Business Coalition has engaged in must continue and receive public and private support in order that its recommendations and input are taken to the next level of action.

23 Reviewing Transactional Fees Accomplishments and Outcomes The Honorable Frank T. Bruno, Jr. County Chair Volusia County Council Bud Beucher Vice President and General Manager Mission Inn Resort

25 Reviewing Transactional Fees Accomplishments and Outcomes The Honorable Frank T. Bruno, Jr. County Chair Volusia County Council Bud Beucher Vice President and General Manager Mission Inn Resort

26 Reviewing Transactional Fees Regional Work Group Mission GOAL To develop clear and concise recommendations regarding Governmental Transaction Fees

27 Definitions for Central Florida TRANSACTIONAL FEES Fees collected by government from businesses and citizens to provide governmental services. This would include (but not limited to) the following types of fees: Franchise Fees Impact Fees Local Option Fuel Tax Property Tax Public Service Tax Sales Tax Special Assessments User Fees *Fees vary by state.

28 Key Questions TRANSACTIONAL FEES Many transactional fees are based on a growth model: 1) Given the current economic picture for Central Florida, is that model sustainable? 2) Will this current model provide the appropriate levels of government services needed to compete in the 21 st Century global economy? 3) Are the transactional fees, as currently structured, in sync and aligned with Central Florida s regional priorities? 4) What impact do these fees have on Central Florida s ability to attract and grow jobs?

29 Critical Findings Central Florida Counties General Revenues grew steadily from $1,600 $1,400 $1,200 $1,000 $800 $600 $400 $200 $ Brevard Lake Orange Osceola Polk Seminole Sumter Volusia Central Florida Region Average Florida Average General Revenue Collected per Capita, Reference: Leroy Collins Institute

30 Critical Findings Since 2006, due to the economic conditions (unemployment, housing price decline, increased foreclosure rates), government revenues have declined at various rates. Government expenditures vary widely by county and by expenditure type. The majority of Central Florida employers are doing business and paying transactional fees in at least 4 counties.

31 Critical Findings Per Fl Tax Watch, Central Florida County and Municipal Revenues v Expenditures per capita, FY 2009: County Revenue Expenditures Brevard $2, $2, Lake $2, $2, Orange $3, $3, Osceola $3, $2, Polk $3, $3, Seminole $2, $1, Sumter $1, $1, Volusia $2, $2,916.88

32 Critical Findings Per Fl Tax Watch, example of 2009 local variations for a key regional priority, transportation: County Transportation Expenditures Brevard $ Lake $ Orange $ Osceola $ Polk $ Seminole $ Sumter $ Volusia $280.98

33 Individual Jurisdictions are reviewing Impact Fees for varying reasons Customer Dissatisfaction/Constituency Anger Concern about Business Climate for Capital Investment and Growth Return on investment for the payor However, without reviewing ALL fees, what might the unintended consequences be on a regional transportation system?

34 Critical Findings Transportation Impact Fees have been a key mechanism for funding transportation, and as growth has slowed this fee has declined. County Current Status Transportation Fees Brevard $6,758,841 $0 Suspended in March 2009, Expires March 2012 Lake $1,512,675 $ 79,602 Suspended until March 2012 Orange $52,962,924 $7,508,228 Fees reduced by 25% Osceola $22,512,173 $3,373,800 Suspended until February 2012 Polk $33,530,950 $0 Fees suspended until February 2012 Seminole $6,398,371 $1,587,218 No suspension on Fees at this time Sumter Need Need No suspension on Fees at this time Volusia $8,923,437 $2,155,797 Suspended until September 2013 Total $127,189,371 $14,704,645 $ million decline in fees collected

35 Best Practices: Lake County Capital Facilities Advisory Committee MetroPlan Orlando Transportation Funding Task Force The San Joaquin Council of Governments (SJCOG)

36 Recommendations Reach consensus on regional priorities and commission a review of alignment with current funding sources Take Action Begin with Transportation because of its critical impact to Central Florida s competitiveness and businesses ability to grow and expand

37 Recommendations (Cont.) Establish a pilot Central Florida Commission on Regional Transportation Funding, to review funding models that align federal, state, regional and local priorities Support and expand on the work of the MetroPlan Orlando Transportation Task Force and the Lake County Capital Facilities Committee Identify the regulatory and political barriers to regional transportation funding Establish timelines and metrics to ensure measurable progress Seek legislative support

38 Recommendations (Cont.) Funding for Regional Transportation should not increase overall tax burden Regional Transportation funding model needs to support entire economic region Alternative sources of broad-based regional sustainable funding for transportation should be pursued

39 Streamlining Permitting & Licensing Accomplishments and Outcomes Brian M. Butler President/CEO JCB Construction The Honorable Howard Schieferdecker Mayor, City of Maitland

41 Streamlining Permitting & Licensing Accomplishments and Outcomes Brian M. Butler President/CEO JCB Construction The Honorable Howard Schieferdecker Mayor, City of Maitland

42 Streamlining Permitting & Licensing Regional Work Group Mission GOAL To develop clear and concise recommendations regarding Streamlining Permitting and Licensing.

43 Definitions for Central Florida PERMITTING Authorizing of an enterprise or entrepreneur from any sector to do business or take any action in promotion of employment, commerce, or any other business activity; When a lack of authorization would otherwise result in inability, in whole or part, to conduct business, create and sustain employment, engage in commerce, contribute to tax base, deliver services or serve customers.

44 Definitions for Central Florida LICENSING The process or act of granting permission by a competent authority to do an act which, without such permission, would be illegal. Text in quotations from: Black, Henry Campbell, M.A. Black s Law Dictionary. West Publishing Co

45 Critical Pathways Recent Florida Research and White Papers Florida TaxWatch s How Does Your County Compare? A Look At Florida Local Government Taxing and Spending Working Group Testimony and Data International American States American Regions Local Jurisdictions/Counties and Municipalities

46 Critical Findings Regions have Not Taken on Permitting and Licensing Reform Central Florida Stakes out a Leadership Position Why are We All Alone Out There? What are We Really Purporting to Do?

47 Critical Findings (Cont.) Florida is Dead Serious about Open for Business Central Florida Shares the Same Language and Agenda with the Jobs Council and Uses Florida Eight as a Platform Regions are Dead Serious Too Other Florida Eight regions are watching our progress

48 Individual Jurisdictions Get into Permitting and Licensing Reform for Many Reasons Customer Dissatisfaction/Constituency Anger Concern about Business Climate for Capital Investment and Growth a competitive imperative Individual/Departmental Initiative e-government Process Improvement Equity Access

49 Florida TaxWatch s How Does Your County Compare? A Look At Florida Local Government Taxing and Spending The state average for Per Capita Total County and Municipal License and Permit Revenue FY 2009 was $85.48 East Central Florida Region averaged $ Regulatory reform means real $$$ savings for local businesses to use to expand business and create more jobs Reference: Florida Tax Watch

50 Recommendations Commit to a shared Minimum, Auditable Standard of Service Develop Clear Accountabilities to Achieve Incremental and Long Term Performance Goals Align Local Process Improvement with inter- jurisdictional, regional and state goals Develop a culture of customer service in government Invest in technology Take Action

51 Recommendations (Cont.) Take Action Based on Critical Elements: Utilize a Diverse, Third Party Team of Leaders to Follow Progress and Review Case Studies Ensure an Ombudsman Role Commit to Third Party Process Improvement Review Embrace and Measure Efficiencies Consider an Institute of National Peers

52 How to Implement Regional Recommendations: Create Region-wide, Diversified Team of Leaders (with Strong Business Customer Representation) to: View Regional Progress as a Whole; Highlight Breakthrough Process Improvements at Local Levels; and Explore Ways to Encourage Inter-jurisdictional Partnerships and Programs Link Diversified Team to National Pilots and Practices including Philadelphia, Pioneer Valley of Massachusetts, and Fort Wayne, Indiana; and Provide a Platform for Governments to Learn and Share

53 How to Implement Regional Recommendations: Design an Operational Plan that Makes it Easy for Central Florida s Cities and Counties to Share Process Improvements and Make the Case for a Region with Outstanding Customer Service Keep Progress and Breakthroughs Before the Central Florida Congress of Regional Leaders

55 What Can Florida Do to Encourage Regional Collaboration? Dale A. Brill, Ph.D. President, Florida Chamber Foundation Tom Beck Director, Division of Community Engagement Department of Economic Opportunity Chris Hart, IV President, Workforce Florida Melissa Medley Senior Vice President and Chief Marketing & Communications Officer, Enterprise Florida

56 Regional Business Summit Friday, December 9, 2011

STATEWIDE STRATEGIC PLAN FOR ECONOMIC DEVELOPMENT: RURAL PRIORITY

STATEWIDE STRATEGIC PLAN FOR ECONOMIC DEVELOPMENT: RURAL PRIORITY 2006 2008 Strategic Plan of Work Enterprise Florida, Inc. 390 North Orange Avenue, Suite 1300 Orlando, Florida 32801 eflorida.com Background