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Agenda 02/13/2018 Item #16F702/13/2018 EXECUTIVE SUMMARY Recommendation to approve an agreement between Collier County and First Bank under the Capital Investment for Diversification Incentive (“CID”) Program which provides financial support toward development of target industry facilities namely, First Bank’s 7074 square foot facility in Immokalee, Florida. OBJECTIVE: Approval by the Board of County Commissioners (Board) of an agreement between the County and First Bank, in support of advancing Collier County’s economy by encouraging development of facilities, space and suitable land for targeted businesses in Immokalee, Florida. CONSIDERATIONS: First Bank is planning construction of a 7074-square foot facility in Immokalee, Florida. First Bank is currently the only bank in Collier County that is approved to offer USDA loans, which is a huge benefit to the agricultural community as a whole. Agriculture is a key economic driver for Collier County, and the addition of a source of USDA funding programs will foster growth in agriculture - related businesses and allow for job creation and diversification of the economy. The purpose of the CID is to provide financial support toward job creation through development of target industry facilities. The CID agreement provides that First Bank will rece ive reimbursement for the value 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. The reimbursement is contingent upon the company’s operation of the facility as a targeted industry as identified in the State of Florida Qualified Target Industry List, payment of ad valorem and personal property taxes, and paying at least 50 percent of its facility employee’s cost of health care coverage if elected by employee. Reimbursements under the CID program will occur over four years with compliance verification required before payment. FISCAL IMPACT: The total incentive available to this applicant under this agreement is $151,799.95 and, subject to contract performance requirements, will be made in four annual payments of $37,949.98. The source of funding for incentive programs has historically been provided through the General Fund (001). Funding for this incentive payment is subject to annual appropriation by the Board. The first annual payment will not occur before FY 19. When developing future budgets, staff will request appropriate funding levels. 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." LEGAL CONSIDERATIONS: This item is approved for form and legality and requires a majority vote for Board action. - JAB RECOMMENDATION: To approve an agreement between Collier County and First Bank under the Capital Investment for Diversification Incentive (“CID”) Program which provides financial support toward development of target industry facilities namely, First Bank’s 7074 square foot facility in Immokalee, Florida, the only bank approved to offer USDA loans in Collier County. Prepared by: Jace Kentner, Director, Office of Business & Economic Development 16.F.7 Packet Pg. 1520 02/13/2018 ATTACHMENT(S) 1. FIRST BANK CID AGREEMENT (PDF) 2. Exhibit A CID Description (PDF) 3. Exhibit Attachment B State Target Industry List (PDF) 16.F.7 Packet Pg. 1521 02/13/2018 COLLIER COUNTY Board of County Commissioners Item Number: 16.F.7 Doc ID: 4751 Item Summary: Recommendation to approve an agreement between Collier County and First Bank under the Capital Investment for Diversification Incentive (“CID”) Program which provides financial support toward development of target industry facilities namely, First Bank’s 7074 square foot facility in Immokalee, Florida. Meeting Date: 02/13/2018 Prepared by: Title: Administrative Assistant – Business and Economic Development Name: Jennifer Leslie 02/07/2018 8:27 AM Submitted by: Title: Director – Business and Economic Development Name: Jace Kentner 02/07/2018 8:27 AM Approved By: Review: Business and Economic Development Jace Kentner Additional Reviewer Completed 02/07/2018 8:29 AM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 02/07/2018 4:14 PM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 02/07/2018 4:23 PM Budget and Management Office Mark Isackson Additional Reviewer Completed 02/07/2018 4:25 PM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 02/07/2018 4:28 PM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 02/07/2018 4:36 PM Board of County Commissioners MaryJo Brock Meeting Pending 02/13/2018 9:00 AM 16.F.7 Packet Pg. 1522 16.F.7.a Packet Pg. 1523 Attachment: FIRST BANK CID AGREEMENT (4751 : Agreement with County and First Bank under CID) 16.F.7.a Packet Pg. 1524 Attachment: FIRST BANK CID AGREEMENT (4751 : Agreement with County and First Bank under CID) 16.F.7.a Packet Pg. 1525 Attachment: FIRST BANK CID AGREEMENT (4751 : Agreement with County and First Bank under CID) 16.F.7.a Packet Pg. 1526 Attachment: FIRST BANK CID AGREEMENT (4751 : Agreement with County and First Bank under CID) 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 16.F.7.b Packet Pg. 1527 Attachment: Exhibit A CID Description (4751 : Agreement with County and First Bank under CID) 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. 16.F.7.b Packet Pg. 1528 Attachment: Exhibit A CID Description (4751 : Agreement with County and First Bank under CID) 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. 16.F.7.b Packet Pg. 1529 Attachment: Exhibit A CID Description (4751 : Agreement with County and First Bank under CID) Attachment B 16.F.7.c Packet Pg. 1530 Attachment: Exhibit Attachment B State Target Industry List (4751 : Agreement with County and First Bank under CID)