Backup Documents 05/26/2015 Item #11C ORIGINAL DOCUMENTS CHECKLIST & ROUTING SLIP
TO ACCOMPANY ALL ORIGINAL DOCUMENTS SENT TO
THE BOARD OF COUNTY COMMISSIONERS OFFICE FOR SIGNATURE
Print on pink paper. Attach to original document. The completed routing slip and original documents are to be forwarded to the County Attorney Office
at the time the item is placed on the agenda. All completed routing slips and original documents must be received in the County Attorney Office no later
than Monday preceding the Board meeting.
**NEW** ROUTING SLIP
Complete routing lines#1 through#2 as appropriate for additional signatures,dates,and/or information needed. If the document is already complete with the
exception of the Chairman's signature,draw a line through routing lines#1 through#2,complete the checklist,and forward to the County Attorney Office.
Route to Addressee(s) (List in routing order) Office Initials Date
1.
2.
3. County Attorney Office County Attorney Office ..711)1/4*
612-3VS
4. BCC Office Board of County
Commissioners \c4/ (n 4�c7
5. Minutes and Records Clerk of Court's Office 'Wrn r (231(5 C 041PRIMARY CONTACT INFORMATION t�
Normally the primary contact is the person who created/prepared the Executive Summary. Primary contact information is needed in the event one of the
addressees above,may need to contact staff for additional or missing information.
Name of Primary Staff TWA- 1R\\. Phone Numb r
Contact/ Depathnent L �i� Ky5 - _ r\ � � ���'���'
Agenda Date Item was r _ ' Agenda Item Number , i �►
Approved by the BCC J (` 1
Type of Document .�. Number of Original
Attached �gk� �`Q.Jcd Documents Attached
PO number or account
number if document is
to be recorded
INSTRUCTIONS & CHECKLIST
Initial the Yes column or mark"N/A" in the Not Applicable column,whichever is Yes N/A(Not
appropriate. (Initial) Applicable)
1. Does the document require the chairman's original signature? ��-
2. Does the document need to be sent to another agency for additional signatures? If yes,
provide the Contact Information(Name;Agency;Address;Phone)on an attached sheet.
3. Original document has been signed/initialed for legal sufficiency. (All documents to be
signed by the Chairman,with the exception of most letters,must be reviewed and signed ' ���
by the Office of the County Attorney.
4. All handwritten strike-through and revisions have been initialed by the County Attorney's
Office and all other parties except the BCC Chairman and the Clerk to the Board
5. The Chairman's signature line date has been entered as the date of BCC approval of the
document or the final negotiated contract date whichever is applicable. ."11
6. "Sign here"tabs are placed on the appropriate pages indicating where the Chairman's
signature and initials are required.
7. In most cases(some contracts are an exception),the original document and this routing slip
should be provided to the County Attorney Office at the time the item is input into SIRE.
Some documents are time sensitive and require forwarding to Tallahassee within a certain
time frame or the BCC's actions are nullified. N aw re of your deadlines!
8. The document was approved by the BCC on 'ld all changes made during the
meeting have been incorporated in the attached document. The County Attorney's ,�, 3 i'
Office has reviewed the changes,if applicable.
9. Initials of attorney verifying that the attached document is the version approved by :-
BCC,all changes directed by the BCC have been made, and the document is read for e
Chairman's signature. iia
I:Forms/County Forms/BCC Forms/Original Documents Routing Slip WWS Original 9.03.04,Revised 1.26.05,Revised 2.24.05;Revised 11/30/12
MEMORANDUM 1 1
Date: June 24, 2015
Cc: Jennifer Leslie,
Office of Business & Economic Development
From: Martha Vergara, Deputy Clerk
Board Minutes & Records Department
Re: Capital Investment for Diversification Incentive Program
Attached for your records is one (1) certified copy of the document referenced above,
(Agenda Item #11C), adopted by the Board of County Commissioners on Tuesday,
June 23, 2015.
The original has been kept by the Minutes & Records Department as part of the
Board's Official Record.
If you have any questions, please call me at 252-7240.
Thank you.
Attachment
el I rt
Prepared by:
Jeffrey A.Klatzkow
County Attorney
3299 Tamiami Trail East,Suite 800
Naples,FL 34112
CAPITAL INVESTMENT FOR DIVERSIFICATION INCENTIVE PROGRAM
AGREEMENT
This Agreement for Capital Investment For Diversification Incentive ("CID") Program
(hereinafter referred to as "Agreement") is entered into this 26th day of May, 2015, by and
between Collier County, a political subdivision of the State of Florida, through its Board of
County Commissioners (hereinafter referred to as the "County"), and Arthrex, Inc. and Arthrex
Manufacturing, Inc. (hereinafter jointly referred to as "Arthrex").
RECITALS:
WHEREAS, Collier County enjoys broad Home Rule Powers, which include the
authority to enter into agreements to enhance economic development within the County; and
WHEREAS, Florida Statute Sec. 125.045 expressly provides that "The governing body
of a county may expend public funds to attract and retain business enterprises, and the use of
public funds toward the achievement of such economic development goals constitutes a public
purpose. The provisions of this chapter which confer powers and duties on the governing body of
a county, including any powers not specifically prohibited by law which can be exercised by the
governing body of a county, must be liberally construed in order to effectively carry out the
purposes of this section;" and further that "it constitutes a public purpose to expend public funds
for economic development activities, including, but not limited to, developing or improving local
infrastructure, issuing bonds to finance or refinance the cost of capital projects for industrial or
manufacturing plants, leasing or conveying real property, and making grants to private
enterprises for the expansion of businesses existing in the community or the attraction of new
businesses to the community;" and
WHEREAS, Collier County created the Capital Investment For Diversification Incentive
("CID") Program on March 24, 2015, the objective of which is to advance Collier County's
Page 1
1 1 C
economy by encouraging development of facilities, space and suitable land for targeted
businesses; and
WHEREAS, Arthrex has proposed a project consisting of (1) the planning, designing,
development, construction and equipping of a 55,027 square foot finishing facility built on real
property in Collier County, Florida, owned or controlled by Arthrex, a portion of which will
qualify for approval by the United States Food and Drug Administration for the manufacture and
packaging of medical devices as defined by North American Industry Classification System,
2012 (NAICS) Number 339113, and (2) a finishing facility to augment the medical device
manufacturing facility at Ave Maria, planned to consist of 55,027 square feet construction of
new production space situated adjacent and to the north of the current existing facility. The
project's operation and directly related employment will be in support of and complimentary
with a prior Collier County Job Creation Incentive Agreement with Arthrex for the existing
operation at Ave Maria which consists of approximately 150 total jobs and over 198,000 square
feet of high tech medical device manufacturing consistent with NAICS 339113; and
WHEREAS, Arthrex estimates that this Project will require it to expend approximately
$18.9 million in Capital Improvements, consisting $12.5 for construction, and $6.4 million for
tangible personal property; and
WHEREAS, the Board expressly finds that the opening of this facility and development
of the project will result in substantial economic benefits to the County, including but not limited
to the creation of high wage jobs and a net increase to the County's tax base; and
WHEREAS, Collier County estimates that the Impact Fee Liability associated with the
project is estimated at up to $164,613.82 and finds that this amount has been pre-paid; and
WHEREAS, Collier County finds it is in the public interest to facilitate the growth of
Arthrex's Targeted Industry Business expansion as defined in F.S. 288.106 in Collier County and
provide support of Arthrex, with a grant in an amount equal to the value of the Impact Fee
Liability as provided by the CID Program.
Page 2
1 1 C
NOW, THEREFORE, in consideration of the foregoing Recitals, and other good and
valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged,
the Parties agree as follows:
1. The foregoing Recitals are true and correct and are incorporated by reference
herein.
2. The Board hereby agrees to enroll Arthrex into the CIDS Program, a copy of
which is attached and incorporated into this Agreement.
3. Collier County agrees to assist Arthrex with this Project by reimbursing Arthrex
the full amount of the Impact Fees incurred from this Project. Payment shall be in four equal
annual installments, subject to annual appropriation, in accordance with the CIDS Program.
4. Any failure by Arthrex to meet the terms and conditions of the CID Program will
be considered a substantial breach of this Agreement. Upon such breach, the County's repayment
requirement will automatically terminate, and neither party shall have any further obligation to
the other with respect to the matters set forth in this Agreement.
Legal Matters
5. Except as otherwise provided herein, this Agreement shall only be amended by
mutual written consent of the parties hereto or by their successors in interest.
6. This Agreement constitutes the entire agreement between the parties with respect
to the matters set forth herein and supersedes and takes the place of any and all previous
representations, undertakings, and agreements between the parties relating to this transaction.
This Agreement does not constitute a lien on the property, and cannot be assigned or transferred
by Arthrex without the prior written consent from the County. Nothing contained herein shall be
deemed or construed to create between or among any of the parties any joint venture or
partnership nor otherwise grant to one another the right, authority or power to bind any other
party hereto to any agreement whatsoever.
Page 3
1
IN WITNESS WHEREOF, the Parties have executed this Agreement on the date and
year first above written.
Attest: ‘ a'
DWIGHT E. BROCK,'Cleerk BOARD OF COUNTY COMMISSIONERS
COLLIER COTY, FIDA
"----)(\i '4:,
By: Ar By /4 &
,Dep 111"-74.— Tim Nance, Chairman
Attest as ' C 'S
&r nOwe% .,I`c
Approved its ,if a legality:
Jeffrey A. a .\ ow, County Attorney
t
AS TO ARTH' X, INC., ARTHREX MANUFACTURING, INC.,
Signed, sealed and
Delivered in the Aesence of: i
OCI'vntk L, Cetilla , Ni (..)'''
�nature • ' .1,, S hmieding, Secreta Arthr- Inc.
)JONN f\ ` I5au."�'V a d Re:istered Agent,Art -x Man '.cturing, Inc.
Printed Name
-
ei.,A$ . �J/- - ill t.
. ,nature
) ,YiSlin DIAZ- 6711/1/C14
Printed Name
STATE OF FLORIDA
COUNTY OF COLLIER
The foregoing Agreement was acknowledged before me this f Vilday of May, 2015, by
John Schmieding, Secretary of Arthrex, Inc. and Registered Agent Arthrex Manufacturing, Inc.,
who is personally known to me or has produced as proof of identity.
[NOTARIAL SEAL] i 1
Signature of ii-rson T 'ng Acknowledgment
'' i'-IC 'ws MARY GAY NI u y —�C�J
MY COMMISSION#EE841659
t+' ; EXPIRES October 08,2016
(407)39&0183 gpldallolr .ySefv °'^
Page 4
AttachmerJ
CAPITAL INVESTMENT FOR DIVERSIFICATION INCENTIVE (CIDS) PROGRAM
DESCRIPTION & OVERVIEW
The Capital Investment for Diversification Incentive(CID)Program is a proposal to advance Collier County's
economy by encouraging development of facilities, space and suitable land for targeted businesses thereby
enhancing the competitiveness in our economic development efforts. The program will provide qualified
applicants an inducement equivalent to the payment made for transportation(Road) impact fees on business
space for target industries in Collier County. Eligibility is limited to new buildings or grey shell space within an
existing building,that has yet to be issued a final end user certificate of occupancy that is utilized for targeted
businesses as identified in the State of Florida Qualified Target Industry List(Attachment B)). The objective of
this program is to support a business climate in Collier County by encouraging an adequate supply of suitable
space and land that is competitively positioned to foster target businesses and the quality jobs they create. In the
long term,the County's ability to attract desirable jobs will be reliant on the extent landowners and developers
include suitable sites and space for clean industry, advanced manufacturing and large single tenant office users
in their real estate portfolios. In sum, opportunities for diversified economic development could be limited
without an adequate inventory of real estate options for targeted business. The CID program supports and
encourages the capital investment to diversifying the economic base.
Capital Investment for Diversification Incentive Program
Collier County will offer qualifying applicant's eligibility to the CID Incentive as a inducement grant providing
a benefit equivalent of up to 100%of the value of the transportation impact fees actually assessed and remitted
for business space directly housing the occupancy of a target industry business. The CID Incentive will provide
four equal annual installments of the Grant amount commencing with the first anniversary of the issuance of the
Certificate of Occupancy for the facility, and will continue each year thereafter until the full grant amount is
paid,conditioned and contingent upon the operation of the facility as a Targeted Industry (defined as
Attachment B)as evidenced by a certified County approved method or in substitution, an equivalent Targeted
Industry Business operation acceptable to the County and the project remaining current on all local tax
liabilities. Payments are contingenton employer offering and demonstrating the provision at least 50 percent of
the employee's cost of health care coverage. Each CID Incentive Grant applicant/agreement will be approved
by the BCC and funding will be subject to annual appropriations of the County. Further,the proposed program
rules herein provides for a maximum amount of annual grant funding such that the estimated aggregate annual
amount of CID program funding will not exceed$500,000 annually unless authorized by the BCC. Project
eligibility for the CID Incentive Grant will be discrete and mutually exclusive of any other locally based Collier
economic development financial incentives. The Grant will not be applicable within a geographic area utilizing
Innovation Zone participation. CID Incentive Grants projects will be eligible for Collier's local match
participation with the State's Qualified Target Industry Tax Refund Program(QTI). The CID Incentive Grant
is only eligible for properties or facilities with an application submittal prior to issuance of the Certificate of
Occupancy.
General Program Requirements
A project must result in sustained occupancy by a Targeted Industry Business and must agree to the Collier
specific requirements as a condition for eligibility in Collier County's Capital Investment for Diversification
Program Incentive. The BCC must approve all applicants; and administration of the Program will be conducted
11C
Attachment A
by the County Manager or designated staff. Only official forms and procedures are deemed sufficient for
application to this program. A summary of qualifications includes but is not limited to:
• "Target industry business"means a corporate headquarters business or any business that is engaged in one of the
target industries as identified in the State of Florida Qualified Target Industry List(Attachment B)
• Impact Fees are prepaid,and grant is reimbursed over four equal annual installments,initial payment occurs one
year from Certificate of Occupancy,and certification and payment cycles continuing annually until such time the
Grant is complete or the project loses eligibility due to failure to comply with program requirements. Payments
are contingent on employer offering and demonstrating the provision at least 50 percent of the employee's cost of
health care coverage.
• Project eligibility will be subject and conditioned on the County's annual appropriation limit of$500,000 for the
CID Incentive Project total annual payments.
• Project eligibility for simultaneous participation in the State QTI program is permitted,but prohibited in
conjunction with other County local economic development incentive programs.
• Applicant must notify Collier County of intent to apply to the County's Capital Investment for Diversification
Incentive before Collier County approves the local match contribution to that project's State QTI application and
in all cases the CIDS application must be approved by the BCC prior to issuance of the project's final end user
certificate of occupancy.
Program Name Capital Investment for Diversification Incentive
Type Grant(Four Year Disbursement)
Award Made to Whom Developers, Landlords or Business Owners
Wage Requirement Wage is Not a Specific Requirement, Eligibility is
Limited to Occupancy of a Targeted Industry as
Defined by State of Florida,and New Capital
Investment for Space to House that Targeted Industry.
Targeted Industries are restricted to Quality Jobs with
Commensurate Wages.
Number of Jobs Required Number of Jobs is Not a Specific Requirement,
Eligibility is Limited to Occupancy of a Targeted
Industry as Defined by State of Florida, and
Operations and Related Jobs are Required.
Capital Investment Requirement New Capital Investment Scaled to Amount of Space to
House a Targeted Industry.
Expandable for Later Year Jobs Not Linked to Jobs but New Capital Investment
Available to Existing Industry Yes, New Capital Investment for Targeted Industries is
Required
Available to New Industry Yes, New Capital Investment for Targeted Industries is
Required.
Available for Retention Yes, New Capital Investment for Targeted Industries is
Required.
11C
Attachment A
Amount of Award Benefit Equivalent of up to 100% of the Value of the
Transportation Road Impact Fees Assessed &
Remitted for Business Space Directly Related to the
Occupancy of the Target Industry Business
Payout Schedule Paid in Installments over Four(4) years Subject to
Confirmation of Compliance, Beginning One Year After
Certificate of Occupancy is Issued.
Specified Use of Funds None
Local Support Required Yes - 100% paid by the County
"But For" Incentive Yes, New Construction or Never Occupied Space, Yet
to Receive an Final End User Certificate of Occupancy.
Eligible Industries/Business Activities Industries defined as Qualified Targeted Industries by
Enterprise Florida Inc.
Ineligible Activity Any retail activities, elect. utility company, or
phosphate or solid minerals severance, mining or
processing operation.
Distressed Area Exception N/A
Contact Jace Kentner, Collier County Business & Economic
Development Office (239) 252-4040.
g:A2015 dept files\incentive forms\cid drafts\draftcidincentivedescription2015.docx
11C
Attachment B
02QUA[ftJfD TLR6fT[D INDUSTRI[S fOR IN( NTIV[S
efrorid&rom
"111,''''- ,
AVIATION HOMELAND FINANCIAL f
CLEANTECH LIFE SCIENCES INFOTECH AEROSPACE SECURITY f PROFESSIONAL.
Mi■■lw■w�awl/ DEFENSE a�sd SERVICES
MANUFACTURING
.. ' ' - CORPORATE HEADQUARTERS -=
RESEARCH&DEVELOPMENT v �=
Biomass& Biotechnology Modeling,Simulation AVIATION: EQUIPMENT FINANCIAL SERVICES.
Biofuels Processing Pharmaceuticals and Training Aircraft and Aircraft 4 Optical Instruments Banking
Energy Equipment Optics and Photonics Parts Manutactunng Navigation Anil Insurance
Manufacturing MEDICAL DEVICES: Digital Media Maintenance Repair Ammunition Securities and
Energy Storage Laboratoryand and Overhaul of
Technologies Surgical Instruments Software Aircrafts Electronics Investments
Electronics Navigation
Photovoltaic Diagnostic Testingv►9 on
Telecammunicatians
Instrument TRANSPORTATION: PROFESSIONALRIC
Environmental Manufacturin9 Military Yehidl�s
SERVICES;
Consulting Corporate
Flight Simulator Shipbuilding aid Headquarters
Training Rept
Engineering
AEROSPACE: TECHNOLOGY: Legal
Space Vehicles and Computer Systems Accounting
Guided Missile ' Design
Consulting
Manufacturing
Simulation and
Satellite Training
Cammumcations
Space Technologies
Launch Operations
i
':-::-.-;1:1111.14"141. : I 1 `t OTHER MANUFACTURING
Global Logistics Food and Beverage
Marine Sciences Automotive and Marine •
Materia:=Sc°ence Plastics and Rubber
iia tethntlogy
Atadtiee