Agenda 01/13/2015 Item #11B 1/13/2015 11.B.
n EXECUTIVE SUMMARY
Recommendation to approve a proposed revision to Collier County's Basic Industry
Growth Promotion Economic Development Incentive Program.
OBJECTIVE: That the Board of County Commissioners approves a recision to the Basic
Industry Growth Promotion Incentive Program to increase Collier 'County economic
development competitiveness.
CONSIDERATIONS: On August 2013, the Board approved three performance based job
creation financial incentives for qualifying targeted businesses and industries. These programs
provide an incentive approach to assist our short term objectives of quality job growth and a
continued reduction in Collier County's unemployment rate, while also achieving long-term
objectives of broadening the County's industry mix, improving net earnings, and increasing
productivity. By design, the programs were primarily focused on complimenting state-level
incentives, which favor high wage jobs, particularly those required by the Qualified Target
Industry Tax Refund Program (QTI). Nonetheless, the 2013 adopted incentives were developed
as programs with the flexibility to be responsive to changing economic conditions and emerging
opportunities.
While Collier County's unemployment rate has dropped, it is likely that further decreases in that
rate can be realized through increased employment opportunities for our local semi-skilled labor
force. Staff has recognized through observation and analysis of last year's prospect profiles that
to better match our approach to actual prospect opportunities and inquiries, our incentive strategy
could benefit from enhanced encouragement for relocation or expansion of ipase industries such
as high value production or advanced manufacturing facilities. In addition, Collier industry
employment data indicates a significant majority of local production establis iments are engaged
in vibrant but competitive markets that require a mix of skilled and semi-skilled labor to manage
their production costs. One approach to capitalize on this trend and leverage a underutilized
segment of our local labor force would be to enhance local incentives specifically for inducing
more investment in value added production industries such as medical products, aviation,
defense, electronics, food and beverage production. For these reasons, staff is proposing to
lower the new jobs created threshold from ten to five and boost the Base Industry Growth
Promotion Incentive grant from $1,500 to $3,000 per job in order to help Collier be more
competitive in attracting companies that will create sustainable quality jobs valued by the
community. Staff believes this proposal provides meaningful support and consideration for
those industry sectors situated for growth and expansion in our community.
If approved the current battery of incentives would be as follows:
• Basic Industry Growth Promotion Incentive: A $3,000 per job grant,for companies that
create at least five Target Industry jobs with wages meeting or exceeding corresponding
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Collier-specific averages for those industries. A $500 bonus is available for jobs that
meet the definition of "Collier Quality Clean Jobs." Payments are equally distributed
over a four year period after performance verification. This provides an incentive for
export industries that may not meet QTI wage eligibility. See Attachment A for full
program description.
• Participation in State of Florida QTI: Provide local funding participation of 20%. Total
state awards range from $3,000-$5,000, with bonuses of $2,500 for jobs located in
Brownfields and $3,000 for those located in Enterprise Zones. QTI is available to
companies that create at least 10 Target Industry jobs with wages of at least 115% of the
county or state average. See Attachment B for full program description.
• Advanced Long Term Productivity Strategy (ALPS): This is incentive is designed to
provide a bonus incentive for those Targeted Industry companies that create at least 25
jobs with average wages of at least 150% of the County's average. The incentive is
broken into two tiers: Tier 1 companies creating at least 25 jobs with average wages of at
least 150% of the County average may receive an incentive equal to 1% of payroll
annually for the new jobs created, while Tier 2 companies creating at least 25 jobs with
an average wage of at least 200% of the County average wage may receive an incentive
equal to 1.063% of total payroll for the new jobs. See Attachment C for full program
description.
FISCAL IMPACT: Each incentive application will require BCC approval and all funding is
subject to annual appropriation. Funding for Economic Development Initiatives is available in
the FY 2015 Business and Economic Development budget. The anticipated FY 2015 fiscal
impact will be limited as these programs typically have significant lead time from authorization
to implementation and compliance verification. In subsequent years it is estimated that an annual
appropriation of approximately$200,000 will be necessary.
GROWTH MANAGEMENT IMPACT:None.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney. Section
125.045, Florida Statutes, confers broad economic development powers upon the Board of
County Commissioners. Accordingly, with the condition that any and all requests for economic
incentives come to the Board for review and approval, this item is approved as to form and
legality,requiring majority vote for approval. -JAK
RECOMMENDATION: Recommendation to approve the Collier County's Basic Industry
Growth Promotion Incentive Program.
Prepared by: Bruce Register, Office of Business&Economic Development
Attachment A: Basic Industry Growth Promotion Incentive Program Overview
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1/13/2015 11.B.
COLLIER COUNTY
Board of County Commissioners
Item Number: 11.11.8.
Item Summary: Recommendation to approve the Office of Business and Economic
Development's proposed revision to Collier County's Basic Industry Growth Promotion
Incentive. (Bruce Register, Office of Business and Economic Development Director)
Meeting Date: 1/13/2015
Prepared By
Name: JenniferLeslie
Title: Administrative Assistant, Office of Business&Economic Development
1/5/2015 3:56:47 PM
Approved By
Name: KlatzkowJeff
Title: County Attorney,
Date: 1/6/2015 9:21:56 AM
Name: FinnEd
Title: Management/Budget Analyst, Senior, Transportation Engineering&Construction Management
Date: 1/7/2015 9:15:31 AM
Name: OchsLeo
Title: County Manager, County Managers Office
Date: 1/7/2015 2:07:46 PM
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Attachment A
BASIC INDUSTRY GROWTH PROMOTION INCENTIVE
PROPOSED PROGRAM DESCRIPTION&OVERVIEW
The Basic Industry Growth Promotion Incentive is a proposal that recognizes Collier County's desire for
near term job growth opportunities for expansions of local companies and recruiting new companies
which might not qualify for the Qualified Targeted Industries(QTI)program. Basic industries,even
those with wages under QTI thresholds,tend to export a significant percentage of their product and as a
result create net new wealth and net new spending power in a local economy. Growth in those industries
will help our community's economic recovery.
Basic Industry Growth Incentive Program
Collier County will offer qualifying applicant's eligibility to the Basic Industry Growth Incentive for a
grant of$41-580$3,000 per job if the project creates at least 4-0 5 new jobs within 12 months in a Targeted
Industry with wages meeting or exceeding the Collier County average of the applicant's specific 3 digit
North American Industry Classification System industry code. Eligibility for a$500 per job bonus over
the base grant will apply to businesses that demonstrate energy efficiency, resource conservation, or
environmental sustainability in either the firm's operational process or products. Employers must meet
Collier County's program requirements regarding reporting compliance of average wage and job levels.
To become eligible,applicants must apply prior to commitment of intent, or change in land use or
permitting applicants are approved. The BOCC must approve all applicants, and all application forms,
administrative procedures and required proof of performance compliance will be developed by the
County Manager or designated staff. Only official forms and procedures are deemed sufficient for
application to this program.
General Program Requirements
• Applications must be submitted in advance of public announcements or any permit approvals changing
usage or building occupancy related to the projected jobs.
• In officially designated economically distressed areas the wage requirement is waived but qualified industry
is required.
• The new jobs and business must be a for profit business operating within Collier County and qualified
under the State's listed Target Industries,creating 4-9 5 new jobs within 12 months of the BCC application
approval.In addition,for existing firms,the net new jobs must be reflected as the increase of full-time
equivalents over the latest quarter prior to application.
• The level of new jobs and wages comprising the grant must be maintained and documented to be eligible
for the annual payment over the four(4)year term of the program. In addition,the applicant must agree to
provide sufficient evidence the new job and wage levels were maintained.
• Grant disbursements in four equal installments over four years as compliance for each year is verified.
Method of evidence verification will be based on records such as:IRS Form 941,Payroll Records,and a
Florida Department of Economic Opportunity Form RT-6(Formerly UCT-6)for each new employee or an
acceptable equally reliable substitute.
• Each new employee hire must be either a full time employee working an average of 36 hours per week,or
business will be allowed to count two employees working a minimum of 20 hours per week as one full time
equivalent employee as long as these employees are eligible to receive full benefits.
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Attachment A
�,. BASIC Industry Growth Promotion
Program Name
Type . Grant
Award Made to Whom Qualified Target Industry Employers
Wage requirement Pegged to the Collier County Avg
Wage for the 3 Digit North American
Industry Code (NAICS)
Number of Jobs Required .1-0 5
Capital Investment Requirement No
Expandable for Later Year Jobs Yes, up to two times the number of jobs
applied for during the initial four year
participation term.
Available to Existng Industry Yes each of the new Jobs lasting Four
years are eligible.
Available to New Industry Yes each of the new Jobs lasting Four
years are eligible.
Available for Retention No
Amount of Award $1,500$3,000 base, with a $500 Green
Product/Process Bonus
Payout Schedule Paid in installments over four(4) years
Specified Use of Funds None
Local Support Required Yes- 100% paid by the County if jobs
are located in Unincorporated Collier
County.
"But For" Incentive Applications must be submitted in
advance of public announcements or
any permit applications changing usage
or building occupancy related to the
projected jobs
Eligible Industries/Business Economic Base Industries defined as
Activities 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 Wage requirement waived but qualified
industry is required in designated
economically distressed areas.
Contact Jace Kentner, Collier County Business
& Economic Development Office (239)
252-4040.
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