Agenda 05/26/2015 Item #16F2 5/26/2015 16.F.2.
EXECUTIVE SUMMARY
Recommendation to approve a revision to the Capital Investment for Diversification
Economic Incentive(CIDS)Program.
OBJECTIVE: That the Board of County Commissioners (Board) approve a revision to the
Capital Investment for Diversification Incentive (CIDS) Program to increase the benefit of the
incentive by including the value of other specific commercial impact fees (Law Enforcement,
Jail,Government Buildings and EMS)in addition to Road Impact Fees.
CONSIDERATIONS: On March 24, 2015, the Board approved the CID program to assist in
attracting target industries which had been identified by the Opportunity Naples Economic
Development Strategic Plan. The plan reiterates that an inventory of suitable land offering a
variety of permit-ready development sites, new buildings and space for accommodating job
creating economic development projects will be essential to diversifying our economy.
While anticipating the Program's benefit to Collier's economic development efforts, staff has
become aware of an additional comparative advantage to be gained by enhancing this incentive
to equal the total value of commercial impact fees including Law Enforcement,Jail, Government
Buildings, EMS as well as Road Impact Fees. The County's objective to provide real estate
solutions to effectively attract economic development projects will be enhanced through this
revision as increased pressure on Collier's land uses is mounting from uses other than target
industries. Staff recommends the revision to improve the value of the CID incentive and provide
a useful enhancement of our economic development efforts.
FISCAL IMPACT: The maximum amount of grant expenditures will not exceed $500,000 per
fiscal year unless authorized by the BCC. Each incentive application will require BCC approval
and all funding is subject to annual appropriation. Funding for Economic Development
Incentives is budgeted within the General Fund and Economic Incentives Fund(007).
GROWTH MANAGEMENT IMPACT: The recommended action supports the goals and
objectives of the Economic Development Element of the adopted Collier County Growth
Management Plan.
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 proposed revision to the Capital
Investment for Diversification Incentive(CIDS)Program.
Prepared by: Bruce Register, Office of Business&Economic Development
Attachments:Attachment A: Revised CID Program Description&Overview
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5/26/2015 16.F.2.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.F.16.F.2.
Item Summary: Recommendation to approve a revision to the Capital Investment for
Diversification Economic Incentive (CIDS) Program.
Meeting Date: 5/26/2015
Prepared By
Name: JenniferLeslie
Title:Administrative Assistant, Office of Business&Economic Development
5/18/2015 3:22:08 PM
Approved By
Name: KlatzkowJeff
Title: County Attorney,
Date: 5/18/2015 4:41:58 PM
Name: KlatzkowJeff
Title: County Attorney,
Date: 5/18/2015 4:51:34 PM
Name: IsacksonMark
Title: Division Director-Corp Fin &Mgmt Svc, Office of Management&Budget
Date: 5/19/2015 8:40:58 AM
Name: OchsLeo
Title: County Manager, County Managers Office
Date: 5/19/2015 9:28:38 AM
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5/26/2015 16.F.2.
Attachment A
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 EMS, Government Building,Jail,Law
Enforcement, and 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 EMS, Government Building, Jail, Law Enforcement, and
Road 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 contingent on 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
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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.
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Attachment A
Amount of Award Benefit Equivalent of up to 100% of the Value of the
EMS, Government Building, Jail, Law Enforcement,
and 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.
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