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HomeMy WebLinkAbout2026 05 11 Regular 500 - Seminole County Interlocal Agreement Local Fuel Tax - Seminole Connector ProjectREGULAR AGENDA ITEM 500 CITY COMMISSION AGENDA | MAY 11, 2026 REGULAR MEETING TITLE Seminole County Interlocal Agreement Local Fuel Tax - Seminole Connector Project SUMMARY Seminole County is requesting an opportunity to present to the City Commission regarding a proposed SR 417 Connector Expansion project that would provide a direct connection to Orlando Sanford International Airport. As part of the proposal, the County is seeking the City’s participation in an Interlocal Agreement (ILA), under which the City would forgo its share of the recently approved 5-cent local option gas tax revenues for a period of ten (10) years to help fund the project. FUNDING SOURCE RECOMMENDATION Staff recommends the Commission review and discuss. 110 April 20, 2026 The Honorable Mayor Kevin McCann City of Winter Springs 1126 East State Road 434 Winter Springs, FL 32708 SUBJECT: Partnership Opportunity – Seminole Connector S.R. 452 (fka S.R. 417 Connector) Dear Mayor McCann: As we continue advancing the Seminole Connector (S.R. 452), I am writing to invite your partnership in delivering one of the most significant regional transportation investments currently underway. This project has been in development for more than two decades and has reached key milestones in recent years, including completion of the Project Development and Environment (PD&E) study, approval of a preferred alignment by the Central Florida Expressway Authority (CFX) Board, and, most recently, the formalization of a funding partnership between Seminole County and CFX. The Seminole Connector is designed to address long-standing transportation challenges while positioning the region for future growth. It will reduce congestion on East Lake Mary Boulevard and Ronald Reagan Boulevard by shifting traffic to a new limited-access corridor. It will also provide a direct and reliable connection to Orlando Sanford International Airport, improve emergency response times through an alternate evacuation route, and enhance freight movement for logistics and commerce. Beyond mobility, the project supports a growing tourism and economic corridor. The airport and Boombah Sports Complex already generate significant visitation, and the proposed new indoor sports complex is expected to further expand year-round demand. The indoor sports complex alone is projected to generate approximately 322,000 annual visitors, 38,000 hotel room nights, and an estimated $2.1 billion in long-term economic impact. The Seminole Connector’s total estimated cost is approximately $200 million, which includes construction, right-of-way, utilities, and environmental mitigation. Current funding commitments include $150 million from CFX, along with Seminole County’s investment. Earlier this year, the County contributed $25 million from the One Cent Infrastructure Sales Tax, commonly known as the Penny Sales Tax, to help jump-start the project’s design phase. Despite this strong progress, a funding gap of approximately $25 million remains. 111 The Honorable Kevin McCann Page 2 April 20, 2026 The positive impact on our community is significant and therefore, to close this gap, Seminole County is requesting municipal partnership from the impacted cities and the airport. Specifically, we propose an interlocal agreement under which your city would allocate its share of the five-cent Local Option Fuel Tax, approved by the Board of County Commissioners last year, to the project for a period of up to 10 years. These funds would be dedicated solely to the Seminole Connector, and any grants or external funding secured would proportionally reduce each partner’s contribution. These funds, which will be available for 50 years, are new to your city and have not previously been allocated through your budgeting process. This is a shared investment in regional mobility, economic development, and long-term quality of life. The Seminole Connector will serve residents, businesses, and visitors across jurisdictional boundaries, and its success depends on a coordinated, regional approach. We welcome the opportunity to discuss this proposal with you and answer any questions as we work toward the timeline for executing interlocal agreements. Thank you for your continued leadership and commitment to our citizens. In Partnership, Andria Herr Chairman/District 5 Commissioner cc Deputy Mayor/Commissioner Matt Bentron, Winter Springs District 1 Commissioner Victoria Bruce, Winter Springs District 2 Commissioner Ted Johnson, Winter Springs District 3 Commissioner Cade Resnick, Winter Springs District 4 Commissioner Rob Elliott, Winter Springs District 5 City Manager Kevin Sweet, City of Winter Springs Vice-Chair/Commissioner Amy Lockhart, Seminole County District 4 Commissioner Bob Dallari, Seminole County District 1 Commissioner Jay Zembower, Seminole County District 2 Commissioner Lee Constantine, Seminole County District 3 County Manager Darren Gray, Seminole County County Attorney Kate Latorre, Seminole County 112 Seminole Connector (S.R. 452) City of Winter Springs City Commission Work Session May 11, 2026 113 Purpose Discuss SR 452 Seminole Connector funding options and benefits supporting growing tourism and economic development for the region. 114 Background •Planning for this project began in the early 2000s •Central Florida Expressway Authority (CFX) PD&E study completed in 2025 •CFX Board approved the preferred alignment on October 9, 2025 •Seminole County BCC and CFX Board approved an interlocal agreement in February 2026 to formalize the partnership •Project design kickoff anticipated with CFX procurement advertising in May 2026 115 Will Hawthorne, PE | Director of Transportation Planning & Policy SR 452 Seminole Connector (F.K.A. SR 417 Sanford Airport Connector) April 2026 116 Corridor History SR 417 Extension Planning Feasibility (FTE) From SR 417 to I-95 SR 417 Connector Feasibility Study SR 417 to Orlando Sanford International Airport (OOCEA) 2003 2007 2015 2018 Sketch Level Toll and Revenue Study (FTE) From SR 417 to I-95 SR 417 Extension Feasibility Study (River 2 Sea TPO by FTE) From SR 417 to I-95 2021 East Lake Mary Boulevard Small Area Study (Seminole County) SR 417 to SR 46 2022 - Current SR 417 Widening Design (FTE) 4 to 8 lane widening from SR 434 to Airport Boulevard Design Lake Jesup Basin Study - Ongoing study SR 417 – Sanford Connector CF&M Study 117 2003 2026 E. Lake Mary Blvd. Sa n f o r d A v e . 118 Project Benefits •Reduced Local Congestion: Shifts traffic off Lake Mary Blvd. and Ronald Reagan Blvd., improving daily commutes •Direct Airport Access: Faster, more reliable connection to Orlando Sanford International Airport for travelers and employees •Enhanced Regional Connectivity: Expands and integrates into the Regional Expressway System •Enhanced Emergency Access: Provides a critical alternate route for first responders and evacuations •Improved Freight Movement: Increases efficiency and reliability for cargo and logistics operations •Support Economic Growth: Supports job creation, tourism, and business investment in the airport area 119 East Lake Mary Boulevard Intersection Operations 120 Project Typical Section (2 lane) Design Speed = 45 mph Approximate Right-of-Way = 150 feet 121 Estimated Project Costs 5 Item Cost Construction/Engineering/Administration $172,200,000 Utility Relocation $3,100,000 Right-of-Way $18,300,000 Mitigation, Wetlands, and Wildlife $6,800,000 Total Estimated Project Cost $200,400,000 122 Project PD&E Study Viability Estimated Project Cost $200.4 Million Projected Toll Revenue $48.1 Million Viability Percentage 24.0% 123 Project Delivery Milestones Interlocal Agreement 5 May 2026 Advertise for Design Consultant October 2026 CFX Board Design Contract Award November 2026 Design NTP September 2028 Second Phase of Interlocal Agreement December 2034 Construction NTP Deadline December 2038 Construction Completion Deadline 124 Thank You 125 Winter Springs Benefits: Expanding the Tourism Economy •Improves regional connectivity to S.R. 417 and surrounding destinations •Supports access to employment centers and tourism activity •Enhances opportunities for local businesses to capture visitor spending •Strengthens integration into Seminole County’s growing tourism network (source: Zartico) Based on the 2025 Tourism Report •24% of visitor spending in Winter Springs came from outside Seminole County 126 A Shared Investment CFX CITIES & GRANTS COUNTY FUNDS $25M $150M $25M Total Project Cost: ~$200M Funding Gap: $50M Current Commitments: •CFX •Seminole County ($25M committed) Opportunity: •Potential contributions from cities of Lake Mary, Oviedo, Sanford and Winter Springs, and grant funding 127 Moving Forward Together •Regional project with shared benefits •Aligns investment with long-term growth of East Lake Mary Boulevard •Opportunity to act now 128 Request Approve an interlocal agreement with Seminole County designating the 5-cent fuel tax contribution for up to10 years to support the Seminole Connector project. 129 130 ___________________________________________________________ Interlocal Agreement Between Seminole County and the City of Winter Springs Regarding the Assignment of Local Option Fuel Tax Proceeds for the SR 417 Connector Expansion Project Page 1 of 6 INTERLOCAL AGREEMENT BETWEEN SEMINOLE COUNTY AND THE CITY OF WINTER SPRINGS REGARDING THE ASSIGNMENT OF LOCAL OPTION FUEL TAX PROCEEDS FOR THE SR 417 CONNECTOR EXPANSION PROJECT THIS INTERLOCAL AGREEMENT is made between SEMINOLE COUNTY, a political subdivision of the State of Florida, whose address is Seminole County Services Building, 1101 East First Street, Sanford, Florida 32771 (hereinafter referred to as “COUNTY”), and the CITY OF WINTER SPRINGS, a Florida municipal corporation, whose address is 1126 East State Road 434, Winter Springs, Florida 32708 (hereinafter referred to as the “CITY”). W I T N E S S E T H: WHEREAS, section 336.025(1)(b), Florida Statutes (2025), authorizes counties to levy a local option fuel tax up to five cents ($0.05) per gallon on every gallon of motor fuel sold within the county and taxed under Part I of Chapter 206, Florida Statutes (2025) (hereinafter referred to as the “Fuel Tax”); and WHEREAS, on August 12, 2025, the Seminole County Board of County Commissioners adopted an ordinance imposing the five-cent ($0.05) Fuel Tax, effective January 1, 2026, for a term of fifty (50) years; and WHEREAS, under section 336.025(1)(b)2., Florida Statutes (2025), the distribution of the Fuel Tax proceeds may be established either by interlocal agreement or, in the absence of such agreement, pursuant to the statutory formula set forth in section 336.025(4), Florida Statutes; and WHEREAS, because there is currently no interlocal agreement establishing an alternative distribution formula, the Florida Department of Revenue distributes Fuel Tax proceeds among the 131 ___________________________________________________________ Interlocal Agreement Between Seminole County and the City of Winter Springs Regarding the Assignment of Local Option Fuel Tax Proceeds for the SR 417 Connector Expansion Project Page 2 of 6 COUNTY and eligible municipalities, including the CITY, pursuant to the statutory formula contained in section 336.025(4), Florida Statutes; and WHEREAS, the COUNTY is participating in the funding and construction of the SR 417 Connector Expansion Project (the “Project”), a transportation improvement that will enhance regional mobility and benefit residents throughout Seminole County, including residents of the CITY; and WHEREAS, the CITY desires to voluntarily assign its statutory share of Fuel Tax proceeds to the COUNTY for a limited duration to assist in funding the Project, subject to the terms and conditions set forth herein. NOW THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties agree as follows: Section 1. Recitals. The foregoing recitals are true and correct and are incorporated herein by reference as material terms of this Agreement. Section 2. Term. This Agreement shall become effective upon approval by both the COUNTY and the CITY and shall apply to Fuel Tax distributions beginning January 1, 2027. The assignment shall remain in effect for a period of ten (10) years, expiring December 31, 2036 (the “Assignment Period”), unless earlier terminated or extended by mutual written agreement. Upon expiration of the Assignment Period, the CITY’s statutory distribution shall automatically revert to the CITY without further action by either party. Section 3. Assignment of Statutory Share. (a) The parties acknowledge that, pursuant to section 336.025(4), Florida Statutes (2025), the CITY is entitled to receive a statutory share of the Fuel Tax proceeds. 132 ___________________________________________________________ Interlocal Agreement Between Seminole County and the City of Winter Springs Regarding the Assignment of Local Option Fuel Tax Proceeds for the SR 417 Connector Expansion Project Page 3 of 6 (b) During the Assignment Period, the CITY voluntarily assigns to the COUNTY one hundred percent (100%) of the CITY’s statutory share of Fuel Tax proceeds and authorizes the Florida Department of Revenue (“DOR”) to remit such proceeds directly to the COUNTY, subject to DOR administrative procedures. (c) The parties shall cooperate and provide any documentation reasonably required by DOR to implement this assignment beginning January 1, 2027. (d) Nothing in this Agreement modifies, replaces, or alters the statutory distribution formula established by section 336.025(4), Florida Statutes (2025). This Agreement constitutes solely a voluntary assignment of the CITY’s statutory share after such statutory distribution is calculated by DOR pursuant to section 336.025(4), Florida Statutes. (e) This Agreement shall not obligate the CITY to assign proceeds not actually distributed by DOR. Section 4. Use of Assigned Proceeds. (a) The COUNTY shall use the CITY’s assigned Fuel Tax proceeds exclusively for the SR 417 Connector Project during the Assignment Period. (b) Eligible Project costs may include, without limitation, planning, design, engineering, right-of-way acquisition, utility relocation, construction, reconstruction, improvements, and other lawful expenditures associated with the Project, consistent with section 336.025, Florida Statutes (2025), and as may be amended. (c) Assigned proceeds shall not be expended on unrelated transportation projects. (d) Nothing in this Agreement shall be construed to alter the COUNTY’s discretion with respect to the design, scope, timing, or administration of the Project. 133 ___________________________________________________________ Interlocal Agreement Between Seminole County and the City of Winter Springs Regarding the Assignment of Local Option Fuel Tax Proceeds for the SR 417 Connector Expansion Project Page 4 of 6 Section 5. Additional Funding and Proportional Adjustment. (a) If, during the Assignment Period, the COUNTY receives grants, donations, state or federal appropriations, or other third-party funding specifically dedicated to the Project, the COUNTY shall apply such funds toward the total Project costs. (b) To the extent that such additional funding reduces the total amount of Fuel Tax proceeds needed to complete the Project, future assigned Fuel Tax proceeds from participating municipalities, including the CITY, shall be reduced proportionally based on each municipality’s relative assigned share. (c) Any reduction shall apply prospectively to future distributions only. The COUNTY shall not be required to reimburse the CITY for Fuel Tax proceeds previously received or expended. Section 6. Transportation Expenditure Reporting. For transparency, upon written request by the CITY, the COUNTY shall provide its most recent annual transportation expenditure data for the prior fiscal year related to the Project. This section shall not be construed to require the COUNTY to provide such data unless requested by the CITY. Section 7. Miscellaneous. (a) Entire Agreement. This Agreement constitutes the entire understanding between the parties with respect to the subject matter hereof and supersedes all prior discussions or agreements, whether written or oral. (b) Amendments. Any alterations, amendments, or waivers of the provisions of this Agreement shall be valid only when expressed in writing and duly signed by the parties. (c) No Effect on Other Agreements. Nothing in this Agreement shall be interpreted to 134 ___________________________________________________________ Interlocal Agreement Between Seminole County and the City of Winter Springs Regarding the Assignment of Local Option Fuel Tax Proceeds for the SR 417 Connector Expansion Project Page 5 of 6 amend, modify, or affect any other interlocal agreement or arrangement between COUNTY and the CITY concerning any other local option surtax, fuel tax, or transportation mechanism already in effect as of the date of this Agreement. (d) Severability. If a provision of this Agreement or the application thereof to any party or circumstance is held invalid, it is the intent of the parties that such invalidity shall not affect other provisions or applications of this Agreement which can be given effect without the invalid provision or application, and, to this end, the provisions of this Agreement are declared severable. IN WITNESS WHEREOF, the parties have made and executed this Agreement for the purposes stated above. ATTEST: CITY OF WINTER SPRINGS By: CHRISTIAN GOWAN KEVIN McCANN, Mayor City Clerk Date: Approved as to form and legal sufficiency. City Attorney [Balance of page left intentionally blank; signature page continues on following page] 135 ___________________________________________________________ Interlocal Agreement Between Seminole County and the City of Winter Springs Regarding the Assignment of Local Option Fuel Tax Proceeds for the SR 417 Connector Expansion Project Page 6 of 6 BOARD OF COUNTY COMMISSIONERS ATTEST: SEMINOLE COUNTY, FLORIDA By: GRANT MALOY ANDRIA HERR, Chairman Clerk to the Board of County Commissioners of Seminole County, Florida. Date: For the use and reliance As authorized for execution by the Board of County of Seminole County only. County Commissioners at its , 20 regular meeting. Approved as to form and legal sufficiency. County Attorney GLK/kly 2/11/26 4/14/26 T:\Users\gkahn\Sales Tax & Election Related Issues\Gas Tax\Interlocal Agreement\Interlocal Agr 2.0\April Version to be sent out Assigning Cities\WinterSpringsFuelTaxILAAssigningCity4-14-26.docx 136