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Agenda 02/24/2015 Item #11D 2/24/2015 11.D. ECUTIVE SUMMARY Recommendation to approve the attached agreement with Position Logic, LLC, an existing Collier County technology firm, providing for a Business Location Inducement Grant of$117,600 as an incentive for this company to expand and maintain its operations in Collier County. OBJECTIVE: That the Board of County Commissioners (Board) considers an economic development financial incentive to facilitate the retention and growth of Position Logic's information technology operations and avoid losing this valuable community job generator to another Florida county. CONSIDERATIONS: Position Logic (Company), a successful international information technology company based in Collier County, has proposed expanding and relocating the company from its current real property location at 4522 Executive Drive, Suite 201 in Naples, Florida to a larger facility. Position Logic has identified sites in Collier County but has also identified alternative sites outside of Collier County which are available at substantially lower cost than the Collier options. The Partnership for Collier's Future Economy, in its contractual role of business retention specialists for the County, has approached the Office of Business and Economic Development for assistance in retaining this targeted industry employer in Collier County. The Company has made receipt of this Business Location Inducement Grant a condition for further consideration of locating such expansion at a Collier County site. The project's operation and directly related employment will be in support of the diversification of Collier County's economy and growth in high wage technology jobs for Collier citizens. The Business Inducement Grant for this Project will be paid in four equal annual installments of $29,400 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 of$117,600 is paid. Each payment is conditioned and contingent upon the continued operation of the facility as an information technology and computer related services company specified by 2012 (NAICS)Number 541519 as evidenced by a certified County approved method or an equivalent Targeted Industry Business operation acceptable to, the County. Additionally, the Company must remain current on all local tax liabilities to remain eligible for the Grant. FISCAL IMPACT: Economic incentives are funded in the General Fund (001). Subject to annual budget appropriation, the annual cost of the subject grant will be included in the proposed FY 2016 and future General fund budgets. The maximum cost to the County for this QTI applicant is$117,600 or$29,400 per year over four years. GROWTH MANAGEMENT IMPACT: This request is consistent with Objective 3 of the Economic Element of the Collier County Growth Management Plan which states: "Collier County will support programs which are designed to promote and encourage the recruitment of new industry as well as the expansion and retention of existing industries in order to diversify the County's economic base." t Packet Page-98- 2/24/2015 11.D. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and legality,and requires majority vote for approval. -JAK RECOMMENDATION: Recommendation to approve the attached agreement with Position Logic, LLC, an existing Collier County technology firm, providing for a Business Location Inducement Grant of $117,600 as an incentive for this company to expand and maintain its operations in Collier County. Prepared bv: Bruce Register,Director, Office of Business and Economic Development Attachments: Business Location Inducement Agreement 2 Packet Page-99- 2/24/2015 11.D. COLLIER COUNTY Board of County Commissioners Item Number: 11.11.D. Item Summary: Recommendation to approve the attached agreement with Position Logic, LLC, an existing Collier County technology firm, providing for a Business Location Inducement Grant of$117,600 as an incentive for this company to expand and maintain its operations in Collier County. Meeting Date: 2/24/2015 Prepared By Name: JenniferLeslie Title: Administrative Assistant, Office of Business &Economic Development 2/17/2015 12:28:35 PM Approved By Name: KlatzkowJeff Title: County Attorney, Date: 2/17/2015 1:07:18 PM Name: KlatzkowJeff Title: County Attorney, Date: 2/17/2015 2:36:13 PM Name: FinnEd Title: Management/Budget Analyst, Senior,Transportation Engineering&Construction Management Date: 2/17/2015 7:07:05 PM Name: OchsLeo Title: County Manager, County Managers Office Date: 2/18/2015 9:03:50 AM Packet Page-100- 2/24/2015 11 .D. AGREEMENT FOR BUSINESS LOCATION INDUCEMENT GRANT This Agreement for Business Location Inducement Grant (hereinafter referred to as "Agreement") is entered into this day of , 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 Position Logic, LLC. A Florida Limited Liability Company (hereinafter jointly referred to as "Position Logic"). 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, Position Logic has proposed expanding and relocating the company from its current real property location at 4522 Executive Drive, Suite 201 in Naples, Florida to a larger facility in a project to be comprised of the interior finish build out and equipping of approximately 8,400 square feet of unfinished office shell space within an existing multi-tenant building on real property located at 2343 Vanderbilt Beach Road Bldg. #6 in Naples, Collier County, Florida, ("Project") from which the firm will operate its information technology and computer related services company as defined by North American Industry Classification System, 2012 (NAICS) Number 541519. The. project's operation and directly related Packet Page-101- 2/24/2015 11 .D. �-, employment will be in support of the diversification of Collier County's economy and growth in high technology jobs for Collier Citizens; and WHEREAS, Position Logic has identified alternative sites available in other Florida Counties at substantially lower cost and has made receipt of this Business Location Inducement Grant a condition for further consideration of locating such expansion at a Collier County site. 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 that such economic benefits will continue to flow to the County as long as Position Logic remains open, as measured by continued operation and annual payment of the Facility's local tax liabilities; and WHEREAS, Collier County finds it is in the public interest to facilitate the growth of Position Logic's Targeted Industry Business expansion as defined in F.S. 288.106 in Collier County and provide support of Position Logic, with a grant to induce their business relocation and expansion in Collier County. 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 assist Position Logic with this Project by providing Position Logic a Business Inducement Grant for this Project. Payment shall be in four equal annual installments of$29,400.00 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 of $117,600.00 is paid conditioned and contingent upon the operation of the facility as a information technology and computer related services company specified by 2012 (NAICS)Number 541519 as evidenced by a certified County approved method or an equivalent Targeted Industry Business operation acceptable to the County and remaining current on all local tax liabilities. 3. This Agreement does not constitute a lien on the property, and cannot be assigned or transferred by Position Logic without the prior written consent from the County. Packet Page-102- 2/24/2015 11 .D. 4. This Agreement will be in substantial breach upon the failure by Position Logic to —. operate the expansion facility as an information technology and computer related services company specified by 2012 (NAICS) Number 541519 or an equivalent Targeted Industry Business operation acceptable to the County or pay its tax bill in full to the Tax Collector's Office annually, on or before the date it is due. Upon such breach, the County's Business Inducement Grant will automatically terminate, and neither party shall have any further obligation to the other. 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 activities noted herein and supersedes and takes the place of any and all previous agreements entered into between the parties hereto relating to the transactions contemplated herein. All prior representations, undertakings, and agreements by or between the parties hereto with respect to the subject matter of this Agreement are merged into, and expressed in, this Agreement, and any and all prior representations, undertakings, and agreements by and between such parties with respect thereto hereby are canceled. 7. 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. Remainder of Page Intentionally Blank Signature Page to Follow Packet Page-103- 2/24/2015 11 .D. IN WITNESS WHEREOF, the Parties have executed this Agreement on the date and year first above written. Attest: DWIGHT E. BROCK, Clerk BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA By: By: , Deputy Clerk Tim Nance, Chairman AS TO POSITION LOGIC, LLC, POSITION LOGIC MANUFACTURING, LLC, Signed, sealed and Delivered in the presence of: By: Signature Felix Lluberes, Vice President Position Logic, LLC Printed Name Signature Printed Name Print Name STATE OF FLORIDA COUNTY OF COLLIER The foregoing Agreement was acknowledged before me this day of , 2015, by Felix Lluberes, Vice President of Position Logic, LLC and Position Logic Manufacturing, LLC, who is personally known to me or has produced as proof of identity. [NOTARIAL SEAL] Signature of Person Taking Acknowledgment Packet Page-104-