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Agenda 02/24/2015 Item #16F4 2/24/2015 16.F.4. EXECUTIVE SUMMARY Recommendation to adopt a resolution approving the Prospect #15-011, as a Qualified Applicant to Florida's Qualified Target Industries (QTI) Tax Refund Program, providing up to $32,000 of local financial support for an expansion of an existing business management firm in Collier County that will create 40 new quality jobs and approve necessary budget amendment. OBJECTIVE: That the Board of County Commissioners (Board) approves Partnership for Collier's Future Economy's Prospect #15-011 as a qualified applicant pursuant to section 288.106, Florida Statutes; and identifying sources of local financial support of$32,000 as local participation in the qualified target industry tax refund program for fiscal year(s)2015-2023. CONSIDERATIONS:, A business prospect of the Partnership for Collier's Future Economy (#15-011) proposes to expand an existing business management firm in Collier County, creating 40 new quality jobs with average wages of at least 150% of the Naples-Marco Island MSA's private sector average wage,which is equivalent to approximately$63,738. This prospect is also expected to generate up to $2.2 million in capital investment. This prospect has alternative sites available and has made receipt of tax refunds a condition for further consideration of locating such expansion at a Collier County site. In order to collect the annual tax refunds, the prospect must create the number of new jobs contracted with the Florida Department of Economic Opportunity (DEO), and provide wages averaging at least 150% of the MSA average wage for each year of the agreement. The state program requires that the local community provide 20% of the total tax refunds. This local match is paid to the state, not the applicant. If the case that Prospect #15-011, fulfills the contractual obligations for quality job creation, the County would pay 100% of the local match for this application which would be up to $800 per job or$32,000 total spread over at least four years. The maximum cost to the County for this applicant creating new jobs within Collier County is$32,000 spread over four years or more. FISCAL IMPACT: Economic incentives are funded in the General Fund (001). The maximum cost to the County for this QTI applicant is $32,000 spread over a minimum of four years. This tax refund incentive is anticipated to begin in FY 2015. Funding for this application is available in the FY 2015 Economic Incentive budget. Subject to annual appropriations, the balance of the annual tax refund incentive will be included in the proposed FY 2016 and future General Fund(001)budgets. GROWTH MANAGEMENT IMPACT:None. 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 Packet Page-637- 2/24/2015 16.F.4. RECOMMENDATION: Adopt a resolution approving the Partnership for Collier's Future Economy's Prospect #15-011, as a Qualified Applicant to Florida's Qualified Target Industries (QTI) Tax Refund Program, providing up to $32,000 of local financial support for an expansion of an existing high value added manufacturing firm in Collier County that will create 40 new quality jobs and approve necessary budget amendment. Prepared by: Bruce Register,Director, Office of Business&Economic Development Attachments: QTI Resolution: Project#15-011 Packet Page-638- 2/24/2015 16.F.4. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.F.16.F.4. Item Summary: Recommendation to adopt a resolution approving the Prospect#15-011, as a Qualified Applicant to Florida's Qualified Target Industries (QTI)Tax Refund Program, providing up to $32,000 of local financial support for an expansion of an existing business management firm in Collier County that will create 40 new quality jobs and approve necessary budget amendment. Meeting Date: 2/24/2015 Prepared By Approved By Name: KlatzkowJeff Title: County Attorney, Date: 2/13/2015 2:16:00 PM Name: FinnEd Title: Management/Budget Analyst, Senior,Transportation Engineering&Construction Management Date: 2/17/2015 6:42:47 PM Name: OchsLeo Title: County Manager, County Managers Office Date: 2/18/2015 8:59:30 AM Packet Page-639- 2/24/2015 16.F.4. RESOLUTION NO.2015 - A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, FINDING THAT THE PARTNERSHIP FOR COLLIER'S FUTURE ECONOMY'S ECONOMIC DEVELOPMENT PROSPECT #15-011, BE APPROVED AS A QUALIFIED APPLICANT PURSUANT TO SECTION 288.106, FLORIDA STATUTES; AND IDENTIFYING SOURCES OF LOCAL FINANCIAL SUPPORT OF $32,000 AS LOCAL PARTICIPATION IN THE QUALIFIED TARGET INDUSTRY TAX REFUND PROGRAM FOR FISCAL YEAR(S) 2015-2023. WHEREAS, the Legislature of the State of Florida has enacted Chapter 94-136, Laws of Florida, creating Section 288.106, Florida Statutes, to encourage the growth of Florida's high- value-added employment; and WHEREAS, Section 288.106, Florida Statutes, authorizes the Florida Department of Economic Opportunity to accept, review and approve applications for tax refunds to qualified target industry businesses; and WHEREAS, Section 288.106, Florida Statutes, requires 20% local financial participation as tax refunds become due; and WHEREAS, the Company identified as the Partnership for Collier's Future Economy's Prospect #15-011, wishes to expand a Collier County operation consisting of 40 new qualifying value-added jobs in five phases; and WHEREAS, the Company identified as the Partnership for Collier's Future Economy's Prospect #15-011, will provide high-wage, value-added employment to Collier County citizens with average wages of at least $63,738 or 150% of the Naples-Marco Island MSA's private sector average wage; and WHEREAS, the Board of County Commissioners finds that providing tax refunds and other tax incentives to the Partnership for Collier's Future Economy's Prospect #15-011 is vital to the public purpose of employing Collier County citizens and ensuring the County's economic vitality. NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OP COLLIER COUNTY, FLORIDA that the Board hereby recommends that the Partnership for Collier's Future Economy's Prospect #15-011, be approved as a Qualified Target Industry Business pursuant to Section 288.106, Florida Statutes. This recommendation is based upon the creation of the specified jobs and is contingent upon Collier County's review of Partnership for Collier's Future Economy's Prospect #15-011's final application to be a Qualified Target Industries Business and confirmation of the information therein. Packet Page-640- 2/24/2015 16.F.4. BE IT FURTHER RESOLVED that the necessary commitment of local financial support for the Qualified Target Industry Business for the Qualified Target Industry Tax Refund Program has been identified in the amount of $32,000; consisting of 100% of the local contribution coming from Collier County subject to annual appropriations; and will be paid to the Florida Economic Development Trust Fund as tax refunds become due with the stipulation that these funds are intended to represent the local financial support required by Section 288.106, Florida Statutes and are conditional upon the applicant meeting all requirements of the program and Collier County. If the site of the Qualified Target Industry Business changes to or becomes part of a Tax Increment District in a municipality within Collier County, the County will reduce its contribution to 10% of the local match. THIS RESOLUTION ADOPTED after motion, second, and majority vote favoring same this day of , 2015. ATTEST: BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, Clerk COLLIER COUNTY, FLORIDA By: By: , Deputy Clerk TIM NANCE, CHAIRMAN App •v-, .i. to form and legality: , --_ „Id .2. A Jeffre 1 ' a ow Count • omey 2 Packet Page -641-