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Hurry Up and Wait

By: Jill Tyrer


The toils and tribulations of getting Collier County developments off the ground.

"The county guys get paid whether they say no or yes. The coffeehouse operator doesn't," says Steve Hovland, a property developer, broker and manager who does business in Lee and Collier counties. Permitting delays also hurt small investors, adds Hovland, who has had anyone from school teachers to his receptionist invest in his projects. "We're investing people's money and it's being lost to interest," he says.

Still, the financial rewards of developing in Collier can be high. Zichella says this part of the country typically sees higher profit margins than those nationally. He figures a 15 to 20 percent margin on a high-end home and 7 to 10 percent on a lower-end house nationally. "We generate a little higher-10 to 15 percent for lower-end price point; high-end, 25 [percent] plus."

Perhaps that's why the highest impact fees in the state don't seem to have slowed the flow of applicants, according to Schmitt. "Has there been an impact on the number of permits? From my observation, no; I still get the permits."

Balancing act

Ultimately, the anti-growth, anti-business climate will undermine the county's economic health and quality of life, Gates says. "Part of the challenges that are faced when we bring a new business to town is how quickly we can get their permits. It's critically important we are perceived as a very efficient, pro-business community if we want to attract those businesses," he says.

"We need to realize that we're more than an international vacation destination for the wealthy," Gates adds. "People forget that part of quality of life is having a job. If you can't get a permit to build a new business, you don't have jobs, and that affects the quality of life."

Schmitt doesn't buy that argument, saying the county offers incentives and fee waivers to encourage affordable housing as well as economic development and business-recruiting efforts.

The fast-track program also is more effective since March, when the county created a position filled by CDES veteran Cheryl Soter that is dedicated only to fast-track projects. In the past, fast-track projects were given to reviewers who already had full plates, says Schmitt.

The fast-track program got Collier Regional Medical Center through permitting more quickly, according to CEO Michael Mastej.

"This hospital will go from groundbreaking to opening in slightly over a year," he says. "Try to get a home built in that time."

Getting permits from the Corps, water management district and county is "simply a long, tedious process," says Mastej. "We got through it quicker than other people did because of the realization that this was an important project for south Collier and Naples. It's not just another golf course and residential community."

Only certain kinds of projects are designated for the fast track-affordable-housing projects, and companies that will help diversify the county's economy and create high-wage jobs, explains Tammie Nemecek, president of the Collier County Economic Development Council. They must be companies that are not dependent on the local economy, in areas such as technology, clean manufacturing and life sciences.

Typically, Collier County is competing for these companies with other regions around the country, so a difficult permitting process can make or break a deal.

"Fast track doesn't necessarily mean fast approval," Schmitt adds. "They still have to meet code requirements. Some people thought you got to jump over certain steps."

The key to resolving the permitting-growth debate is finding the right balance, say those on both sides of the issue. But defining that balance depends on one's perspective.

"It's a balancing act between making sure you preserve quality of life, which is what everyone wants to do, but not shutting the door down so tight that it makes it impossible for businesses that don't have to be here to put their businesses here," says Nemecek. "We want to protect the quality of life and we want to ensure the community is sustainable, and part of that sustainability is the businesses that are here."


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