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Agenda 12/10/2013 Item #16F4 12/10/2013 16.F.4. EXECUTIVE SUMIVLARY Recommendation to approve the attached agreements with Haynes Corporation for economic incentives, consistent with the company's approved incentive application, as directed by the Board of County Commissioners at the June 11,2013 regular meeting. OBJECTIVE: That the Board of County Commissioners (Board) consider incentive agreements for job creation,job retention, with Haynes Corporation and impact fee relief with Haynes Corporation (Fee Payment Assistance - land owner) consistent with the company's incentive application, which was approved July 27, 2010. CONSIDERATIONS,: These agreements are prepared in accordance with BCC direction provided at the June 11th , 2013 regular meeting, item 16.F.4., which at such time the Board directed staff to honor the approval of Haynes' July 27, 2010 incentive application and draft the required Agreements for future consideration by the Board. Therefore, it is staff's recommendation that the Board approve the attached incentive agreements each as unique and discrete one time transactions predicated on job creation performance established by the applicants approved incentive application of July 27, 2010. The terms of the agreements are conceptually based on prior ordinance structures. For purposes of conforming to the company's July 27, 2010 application and equitable consideration of subsequent events,the terms have been modified in the following ways to more closely correspond with recently proposed economic development incentives approved by the BCC on September 24, 2013: 1. Set Haynes' incentive performance and eligibility measurement commencement as of July 27, 2010. 2. Provide for a 6 year monitoring period ending on July 27, 2016 and provide a refund of prepaid Impact fees, after 6 years of compliance; 3. Align all other incentive performance requirements as consistent with the company's incentive application as approved by the Board on July 27, 2010; and 4. Upon approval of such Agreements, incentive award payments will be processed as certification of performance is validated. Additional Background Until their expiration on September 30. 2013. Collier County offered six local incentive programs. These Programs were the Fee Payment Assistance, Property Tax Stimulus, Job Creation Investment, Advanced Broadband Infrastructure Investment, Job Retention Investment and the Fast Track Regulatory Process Program. The individual Programs were adopted by the Board of County Commissioners (Board) and are codified in Chapter 49 of the Collier County Code of Laws and Ordinances (Code). The Fast Track Regulatory Process Program was adopted by the Board on January 24, 2006, via Resolution No. 2006- 12. Typically, in order to qualify to participate in the Programs a new or expanding business was required to meet specified criteria related to the type of industry proposed, number of jobs created and the average wage of the new jobs. The incentive programs expired on September 30, 2013. On June 28, 2010 an incentive application was submitted to the County by the Economic Development Council (EDC), on behalf of Haynes Corp. to participate in incentive programs. Haynes Corporation is a manufacturer of diesel fuel injection systems and precision component Packet Page-2094- 12/10/2013 16.F.4. parts that has been in operation in Collier County since 1989. As part of an inducement effort to retain the company in Collier County, the following needs were identified as a basis for their decision. Without quick action to address these concerns, this national company indicated a relocation of the operation to their Norwalk, California location or to Jackson, Michigan would be considered. 1. Ability to quickly permit and build an additional facility, adjacent to their current facility (3581 Mercantile Avenue) on land they currently own under the name of JL South Properties, LLC; 2. Financial incentives to defray the cost of relocation,hiring; and 3. Access to a skilled workforce or training programs for potential employees. Because Haynes required a number of waivers from program requirements in order to participate, staff from the County, the Economic Development Council and company representatives developed the following additional criteria designed to provide assurances that the assistance provided to the company will provide direct benefits to Collier County: a. The 20 proposed new jobs will be offered with preference to Collier County residents or employees willing to relocate to Collier County; b. 93% of the 45 existing employees being retained by the company currently reside in Collier County (42 employees). Therefore, Job retention funds will be provided at $1,000 per job for those 42 jobs. The incentive will be paid over three years and the residency will be verified each year; c. The company also proposed to create 20 new jobs. Job creation funds in the amount of $2,000 will be provided for each new job created and filled by a Collier County resident or an employee relocating to Collier County. The incentive will be paid over three years and the residency will be verified each year; and d. Fee Payment Assistance will be based on the creation of the 20 jobs, without residency requirements, as this incentive is used to pay impact fees on behalf of the company. On July 27, 2010, the Board approved the application by Haynes Corporation to participate in the since expired Fee Payment Assistance. Job Creation Investment, Job Retention Investment and Fast Track Regulatory Process Programs. At the time of approval of their application (and currently) Haynes Corporation did not meet all of the Program criteria in order to be eligible to participate in the incentive programs, however, the Board recognized Haynes Corporation as a long established, respected Collier County business and approved application based on the overall economic benefits of the project and the company's commitment to retain and employ Collier County residents. After approval of the incentive application on July 27, 2010, and based on its understanding of the County's intent to pay the incentive grants, Haynes moved forward on consolidating their operations into one location in Collier County, which serves as the corporate headquarters. The company also completed the construction portion of the project consisting of the construction of a 30,000 square-foot building on property owned by its affiliate JL South Properties LLC., which is adjacent to the existing Haynes manufacturing facility. The capital investment related to this expansion totals $1,850,000, including the purchase of new manufacturing equipment. Due to timing constraints, the company elected to complete the impact fee payments associated 2 Packet Page-2095- 12/10/2013 16.F.4. with the construction on January 13, 2012. During the discussion related to the Haynes Corp. original approval, the Board directed that the County Manager, or his designee, and the County Attorney, in coordination with the EDC, to develop options for changes to the Economic Incentive Programs, in order to provide an incentive package that will better serve the needs of businesses, particularly through this period of instability in the economy, for future consideration by the Board. Further, as part of the approval of the item, as discussed in the legal considerations, the Board directed the County Attorney to bring back a minor ordinance amendment that would in effect state: "The Board may, upon the showing of good cause, modify or waive any of the requirements for participation in these economic incentive programs." However, due to various issues that have arisen since Haynes' initial approval, including the indefinite continuance of the item providing changes to the Economic Development Incentive Ordinances, dissolution of the EDC and the lengthy process to review the Economic Development strategies and programs in other counties, and the formation of the new Office of Business and Economic Development, program modifications and Program Agreements were deferred. Agreements were never executed, the ordinance was not amended before it expired on September 30, 2013 and Haynes has not received any incentive payments to date. The incentive programs Haynes applied under expired on September 30, 2013; however, on September 24, 2013, the Board approved the Office of Business and Economic Development's new proposed economic development incentives. One of the approved incentives referred to as the "Basic Industry Growth Promotion Incentive," is designed to provide inducements to "basic" or "export" industries that generate new wealth and growth into a community. Haynes is considered a "basic" industry, validating the consistency of this action with the proposed policy intent going forward. FISCAL IMPACT: Upon the 2011 performance verification, Haynes Corporation will be eligible to receive the first payment of Job Creation funds ($8,000 —Phase 1) the first payment of Job Retention funds ($12.333). Upon the 2012 performance verification. Haynes will b: eligible to receive the second payment of Job Creation funds ($8,00C - Phase 1) and Job Retention Funds ($12,333) and the first payment of Job Creation funds for the Phase II jobs ($2,000). Upon the 2013 performance verification. Haynes will be eligible to receive the thirc payment of Job Creation funds ($8,000 - Phase 1) and Job Retention Funds ($12,333), the second payment of Job Creation funds for the Phase II jobs ($2,000), and the first payment of Job Creation funds for the Phase III jobs ($1,333). The total current payments, after performance verification of 2011, 2012 and 2013, is estimated at $66,333, for which adequate funding exists within the approved budget for the local Economic Incentive Programs (Fund 001) for Fiscal year 2014. The total financial incentive, after each year's additional job creation performance and subsequent certification, could amount to $149,469, which is consistent with the firm's June 28, 2010 application. 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 3 Packet Page-2096- 12/10/2013 16.F.4. the County's economic base." JEGAL CONSIDERATIONS: The County Attorney has reviewed this item and approved it as to form and legality. Majority support is required for approval. -JAK RECOM__M_ENDATION: Recommendation to approve the attached agreements with Haynes Corporation for economic incentives, consistent with the company's approved incentive application, as directed by the Board of County Commissioners at the June 11, 2013 regular meeting. Prepared by: Bruce Register, Director, Office of Business and Economic Development Attachments: Impact Fee Payment Refund Agreement, Job Creation Incentive Agreement, Job Retention Incentive Agreement. 4 Packet Page-2097- 12/10/2013 16.F.4. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.F.16.F.4. Item Summary: Recommendation to approve the attached agreements with Haynes Corporation for economic incentives, consistent with the company's approved incentive application, as directed by the Board of County Commissioners at the June 11, 2013 regular meeting. Meeting Date: 12/10/2013 Prepared By Name: JenniferLeslie Title: Office of Business&Economic Development 11/20/2013 3:16:51 PM Approved By Name: KlatzkowJeff Title: County Attorney Date: 11/27/2013 10:47:19 AM Name: KlatzkowJeff Title: County Attorney Date: 11/27/2013 1:21:45 PM Name: FinnEd Title: Senior Budget Analyst. OMB Date: 12/2/2013 11:14:05 AM Name: OchsLeo Title: County Manager Date: 12/2/2013 11:53:12 AM Packet Page-2098- 12/10/2013 16.F.4. Prepared by: This space for recording Jeffrey A.Klatzkow County Attorney 3299 Tamiami Trail East,Suite 800 Naples,FL 34112 AGREEMENT FOR IMPACT FEE PAYMENT REFUND This Agreement to refund impact fee payments already paid to Collier County is entered into this 10th day of December, 2013, (the "Effective Date") by and between Collier County, a political subdivision of the State of Florida, through its Board of County Commissioners, hereinafter referred to as "County," and Haynes Corporation , hereinafter referred to as "Haynes," collectively referred to as the "Parties," with a Performance Measurement Commencement Date of July 27, 2010, which is the date the Board of County Commissioners first approved Haynes's application for Impact Fee Assistance. RECITALS: WHEREAS, Haynes submitted an application to be considered for Impact Fee relief for a Project involving the construction of a 30,000 square foot facility adjacent to an existing Haynes manufacturing facility on Mercantile Avenue, to be located on a parcel whose legal descriptions are included in Exhibit A and is incorporated by reference herein (which parcel is hereinafter referred to as the "Property"). A copy of this application is on file in the Growth Management Division, Impact Fee Administration Office; and WHEREAS, the County Manager and staff reviewed the application and, based on the representations therein, approved Haynes's application for Impact Fee relief as outlined in an Executive Summary that was submitted to the Board on July 27, 2010; WHEREAS, at its July 27, 2010 regular public meeting the Board, having reviewed the application as well as the findings of the County Manager and staff, and following public comment on this matter,approved the application as outlined in the Executive Summary; and WHEREAS, based on its approved application and its reliance toward the County's intent to provide impact fee relief, Haynes prepaid its impact fees for said Property on January Packet Page-2099- 12/10/2013 16.F.4. 13, 2012, in the amount of$78,464.50 and went forward with construction of the new facility on the Property; and WHEREAS, Haynes received a certificate of occupancy for the Property on August 22, 2013; and WHEREAS, at its June 11, 2013 regular meeting, the Board directed the County Manager and the County Attorney to prepare program agreements with Haynes, including this Impact Fee Payment Refund Agreement based on Haynes Corporation's originally-approved application; and WHEREAS, given the delay in implementation of this Agreement, the Board wishes to provide Impact Fee relief to Haynes as set forth below. 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 formally agrees to provide impact fee relief in the form of a refund of previously paid impact fees based on the information in its approved application for the expansion of its existing Collier County business, and for recognizing that Haynes carried forward with its intent and caused the construction of a 30.000 square foot (approximate) facility located adjacent to an existing Haynes manufacturing facility on Mercantile Avenue. 3. In consideration for such assistance, Haynes hereby accepts the benefits and burdens set forth below. 4. This incentive award is a refund by Collier County to refund Haynes's impact fees, contingent on the creation and maintenance of 20 new jobs for 6 years at an average wage of not less than $34,320 starting from August 1, 2010. Haynes represents that it has met this obligation by the first anniversary of the Performance Measurement Commencement Date. As set forth below, the County will continue to annually audit Haynes on or about August 1st of each calendar year. Provided that Haynes is not in default of this Agreement, Collier County shall reimburse Haynes $78,464.50 after September 1, 2016, and confirmation of compliance. Haynes Packet Pate 12100- 12/10/2013 16.F.4. understands and agrees that there is no defined funding source for this Impact Fee Payment ottook Refund set out by this Agreement, and as such this grant is subject to appropriation, and further agrees that failure to satisfy job and wage requirements set forth in the original application and this agreement will result in a forfeiture of the impact fee refund. 5. This Agreement will expire upon payment by the County to Haynes, or September 30, 2016 if performance requirements are not met. Following this expiration, and upon satisfactory completion of all requirements of this Agreement, at the then property owner's request and sole expense, the County will record any necessary documentation evidencing same. 6. Under this Agreement an annual review shall be performed by the County on or about August 1S1 of each calendar year, to determine whether there has been good faith compliance with the terms of this Agreement. Haynes shall give the County reviewer full access to its business records and business premises as required to certify the created jobs. If the County Manager or his designee finds, on the basis of substantial competent evidence, that there has been a failure to comply with the terms of this Agreement, the Agreement may be revoked or unilaterally modified by the County. Haynes shall be given 10 business days prior written notice of any review. In addition to an annual review, within 10 business days from the County's written request, Haynes will provide the County with all requested documentation required to verify compliance with the terms of this Agreement based on Haynes's original application. Any documents or copies of documents retained by the County which contain any individual employee's personal identifying information that is held as evidence of the employment and wage requirements of this contract will be confidential in accordance with F.S. 288.075 for the duration of this contract. 7. By way of example and not as a limitation, this Agreement will be in substantial breach upon the following events: (1) any change in the status of the business or project such that it no longer meets the required criteria agreed to and approved as part of Haynes's original application, as set forth in this Agreement; (2) failure to fully comply with all reasonable requests during any County review conducted pursuant to this Agreement; (3) upon the County Manager or his designee being informed of a material misrepresentation in the Application; (4) 20 new jobs are not created and maintained up until July 27, 2016, at an average wage of not less than $34,320 or a time extension has not been granted by the Board of County Commissioners related to the timing for the creation of the jobs, or(5) failure by Haynes to pay its tax bill in full to the tax collector's office annually,on or before the date it is due. Packet Page -2101- 12/10/2013 16.F.4. 8. The County shall record this Agreement in the Public Records of the County, with all costs of recording being paid by Haynes. After all obligations have been met, a satisfaction of agreement will also be recorded in Collier County public records at Haynes's sole expense. IN WITNESS WHEREOF, the Parties have executed this Agreement on the date and year first above written. ATTEST: BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, Clerk COLLIER COUNTY,FLORIDA By: By: ,Deputy Clerk GEORGIA A. HILLER, ESQ. CHAIRWOMAN Approved as to form and legality: Recommend Approval: Jeffrey A.Klatzkow Bruce Register County Attorney Director Business & Economic Development Packet Page-2102- 12/10/2013 16.F.4. AS TO HAYNES CORPORATION AND JL SOUTH PROPERTIES,LLC: Signed, sealed and Delivered in the presence of: By: Sign. • •e Jat -s . ixon Pr- '4 ent of Haynes fah +� 1k ,gs.i •rporation Print-d Name p Ad. Signature P /k11e.,' M. eor Printed Name STATE OF FLORIDA COUNTY OF COLLIER The foregoing Agreement was acknowledged before me this 14` day of F.\ove-fildotic 2013, by James S. Dixon, President of Haynes Corporation and Managing Member of JL Properties LLC, who is erso a 1y known to mew or has produced as proof of identity. • [NOTARIAL SEAL] C , s �wruo�sRtrlssEnux Signature of Notary Public—State of Florida e+. , t.'_ MY coMMtss1AY i FF 028441 z a �' Boded EXPIRES:July 14 2017 e t,(...int/ a <j\'L J(c .- !1f +YPak lo der Ors Print Commissioned Name of Notary Public Packet Page-2103- 12/10/2013 16.F.4. EXHIBIT"A" Legal Description 3581 d'Iercantile Avenue, Naples, FL 34104 36 49 25 COMM N 1/4 CNR, S 628.55 FT, W 989.97 FT TO FOB, W 455.2 FT, N 200 FT, E 455.2FT, S 200 FT TO POB 3742 Arnold Avenue, Naples, FL 34104 36 49 25 COMM AT N% CNR S 228.55 FT, S 89 DEG W 1221.45 FT TO POB, S 200 FT, W ' 455.2 FT, N 200 FT, E 455.2 FT TO POB 2.08 AC Packet Page -2104- 12/10/2013 16.F.4. Apow EXHIBIT "B" Impact Fee Amount IMPACT FEES PAID COLLIER COUNTY BUILDING PERMIT 2011070937 $78,464.50 .404+4,, Packet Page-2105- 12/10/2013 16.F.4. Prepared by: This space for recording Jeffrey A.Klatzkow County Attorney 3299 Tamlami Trail East,Suite 800 Naples,FL 34112 JOB CREATION INCENTIVE AGREEMENT This Job Creation Incentive Agreement ("Agreement") is entered into this 10th day of December,2013,(the "Effective Date") by and between Collier County, a political subdivision of the State of Florida, through its Board of County Commissioners, hereinafter referred to as "County," and Haynes Corporation, LLC, hereinafter referred to as "Haynes," collectively referred to as the "Parties," with a Performance Measurement Commencement Date of July 27, 2010,which is the date the Board first approved Haynes application for this Incentive. RECITALS: WHEREAS, Haynes submitted an application to be considered for a Job Creation Incentive for a Project involving the construction of a 30,000 square foot facility adjacent to an existing Haynes manufacturing facility on Mercantile Avenue, to be located on a parcel whose legal descriptions are included in Exhibit A and is incorporated by reference herein(which parcel is hereinafter referred to as the "Property"). A copy of this application is on file in the Growth Management Division, Impact Fee Administration Office; and WHEREAS, at its July 27, 2010 regular public meeting the Board, having reviewed the application as well as the findings of the County Manager and staff, and following public comment on this matter, approved the application as outlined in the Executive Summary; and WHEREAS, following the Board's approval of its application,Haynes went forward and expanded their facilities as set forth in their application; and Page 1 Packet Page-2106- 12/10/2013 16.F.4. WHEREAS, at its June 11, 2013 meeting, the Board directed that the County Manager or his designee, and the County Attorney, to prepare required incentive agreements with Haynes, including this Agreement for creation of new jobs filled by Collier County resident or employees willing to relocate to Collier County, consistent with the company's approved incentive application, for consideration by the Board at a future meeting. 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 make Haynes eligible for payments for the creation of new jobs for Collier County residents or employees willing to relocate to Collier County, based on Haynes's original application. This Agreement has a Performance Measurement Commencement Date of July 27, 2010,under the terms and conditions set forth below. Haynes's program eligibility for receipt of such incentive payments shall be based on its performance in owkik creating new jobs for Collier County residents, since the Performance Measurement Commencement Date. 3. In consideration for such assistance, Haynes hereby accepts the benefits and burdens set forth below. Haynes proposal was to create up to 20 new jobs, with Collier County residency requirements, in three phases by September 30, 2013. Haynes hereby represents that only 17 of the 20 new jobs were filled by Collier County residents or employees relocating to Collier County, so that Haynes will only receive payment for the 17 new jobs verified as being held by Collier County residents. Incentive payments will be paid in accordance with the payment schedule below upon verification of the jobs. Job creation funds in the amount of $2,000 will be provided for each new job created and filled by a Collier County resident or an employee relocating to Collier County. This requirement will also be part of the job verification process, prior to the release of any incentive funds. Due to the phased implementation of the new jobs, the following is the proposed schedule, by Job Creation Year, displaying when the Incentive payment requirements would be met(assuming that all jobs are created and validated, and corresponding payment reductions are not required): Page 2 Packet Page-2107- 12/10/2013 16.F.4. Job Creation Year Potential Amount of Incentive Basis of Payment (JCY) Payment JCY ending September $8,000 First Payment Phase I—12 jobs added 30,2011 (pay when verified in FY2014) JCY ending September $10,000 Second Payment Phase I—12 jobs retained 30,2012 (pay when verified in FY2014) First Payment Phase II—3 jobs added JCY ending September $11,333 Third Payment Phase I—12 jobs retained 30,2013 (pay when verified in FY2014) Second Payment Phase II—3 jobs retained First Payment Phase III—2 jobs added JCY ending September $3,333 Third Payment Phase II—3 jobs retained 30,2014 (pay when verified in FY2015) Second Payment Phase III—2 jobs retained JCY ending September $1,334 Third Payment Phase III—2 jobs retained 30,2015 Total $34,000 17 jobs 4. Upon execution of this Agreement and the County's verification, Haynes will be awarded a grant in the sum of$8,000, representing $2,000 per new full time job created for Job Creation year 2012. Further payments shall be calculated pending verification of the creation of qualified jobs by the County Manager of his designee following the conclusion of the Job Creation Year 2013, 2014, 2015, and 2016 job creation phases. 5. Should at any time over the term of this Agreement the number of qualifying jobs is less then set forth in the payment schedule set forth above, for such payment period the County Manager or his designee will authorize a lesser sum be paid based on the actual number. This diminution of grant funds shall be the County's sole remedy should Haynes no meet the scheduled job creation. Haynes understands and agrees that there is no defined funding source for this Project, and as such these grants are subject to annual appropriation. 6. As a precondition to payment, Haynes shall give the County reviewer full access to its business records and business premises as required certifying the created jobs. Haynes shall be given 10 business days prior written notice of this review. Any documents or copies of documents retained by the County which contain any individual employee's personal identifying information that is held as evidence of the employment and wage requirements of this contract will be confidential in accordance with F.S. 288.075 for the duration of this contract. Page 3 Packet Page -2108- 12/10/2013 16.F.4. 7. Neither the payment of funds, nor this Agreement, may be transferred, assigned, credited or otherwise conveyed without prior written approval from the County, which approval may be freely withheld. 8. The County shall record this Agreement in the Public Records of the County, with all costs of recording being paid by Haynes. After all obligations have been met, a satisfaction of agreement will also be recorded in Collier County public records at Haynes's sole expense. IN WITNESS WHEREOF, the Parties have executed this Agreement on the date and year first above written. ATTEST: BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, Clerk COLLIER COUNTY, FLORIDA • By: By: , Deputy Clerk GEORGIA A. HILLER,ESQ. CHAIRWOMAN Approved as to form and legality Recommend Approval: Jeffrey A. Klatzkow Bruce Register County Attorney Director Business and Economic Development Aselok Page 4 Packet Page-2109- 12/10/2013 16.F.4. AS TO HAYNES CORPORATION AND JL SOUTH PROPERTIES, LLC: Signed, sealed and Delivered in the presence of: r/ ` lam.— Sign re am-. S. xon, P -sident of Haynes ►4,1 ✓trr.l 2‘)P.,1 Co 'oration Pri1 ted ran e A[eiL..� ! L_ signature A6h1e1,}k Nl• PetZt Printed Name STATE OF FLORIDA COUNTY OF COLLIER The foregoing Agreement was acknowledged before me this 09-644A" day of wttOJ v' , 2013, by James S. Dixon, President of Haynes Corporation, who is ersonally kri(2&b me or has produced as proof of i entity. [NOTARIAL SEAL] 1 � C (Loy Signature of Notary Public—State of Florida DEANNADBRUI85EAUX • 4 MY COMMISSION•FF428441 , �Ca.v1tn0._ 0 e „(k_Ja ss(e uY € EXPIRES:Hwy 14:inn Print Commissioned Name of Notary Public BonQeC Thu Notary WbioUnkkms[ut }' Page 5 Packet Page-2110- 12/10/2013 16.F.4. EXHIBIT"A" Legal Description 3581 Mercantile Avenue, Naples, FL 34104 36 49 25 COMMN 1/4 CNR, S 628.55 FT, W 989.97 FT TO POB, W 455.2 FT, N200 FT, E 455.2FT, S 200 FT TO POB 3742 Arnold Avenue, Naples, FL 34104 364925 COMM ATN% CNR S228.55F ,, S89 DEG W1221.45FTTOPOB, S200F7, W 455.2 FT, N 200 FT, E 455.2 FT TO POB 2.08 AC Page 6 Packet Page -2111- 12/10/2013 16.F.4. Prepared by: This space for recording Jeffrey A.Klatzkow County Attorney 3299 Tanmianii Trait East,Suite 800 Naples,FL 34112 JOB RETENTION INCENTIVE AGREEMENT This Job Retention Incentive Agreement ("Agreement") is entered into this 10th day of December, 2013, (the "Effective Date") by and between Collier County, a political subdivision of the State of Florida, through its Board of County Commissioners, hereinafter referred to as "County," and Haynes Corporation, hereinafter referred to as "Haynes," collectively referred to as the "Parties," with a Performance Measurement Commencement Date of July 27, 2010, which is the date the Board of County Commissioners first approved Haynes application for this Incentive. RECITALS: WHEREAS, Haynes submitted an application to be considered for a Job Retention Incentive for a Project involving the construction of a 30,000 square foot facility adjacent to their existing manufacturing facility on Mercantile Avenue, to be located on a parcel whose legal descriptions are included in Exhibit A and is incorporated by reference herein (which parcel is hereinafter referred to as the "Property"). A copy of this application is on file in the Growth Management Division, Impact Fee Administration Office; and WHEREAS, at its July 27, 2010 regular public meeting the Board, having reviewed the application as well as the findings of the County Manager and staff, and following public comment on this matter, approved the application as outlined in the Executive Summary; and WHEREAS, following the Board's approval of its application, Haynes went forward and expanded their facilities as set forth in their application and its reliance on the County's intent to incentivize the retention of jobs; and WHEREAS, at its June 11, 2013 meeting, the Board directed that the County Manager or his designee, and the County Attorney,to prepare required incentive agreements with Haynes, including this Agreement for retention of jobs held by Collier County residents or employees willing to relocate to Collier County, consistent with the company's approved incentive application, for consideration by the Board at a future meeting. Page 1 Packet Page -2112- 12/10/2013 16.F.4. 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 provide Haynes an incentive payment for retention of existing jobs held by Collier County residents or employees willing to relocate to Collier County, based on Haynes's original application. This Agreement has a Performance Measurement Commencement Date of July 27, 2010, under the terms and conditions set forth below. Haynes's incentive eligibility for receipt of such incentive payments shall be based on its performance in retaining employees, who are Collier County residents, since the Performance Measurement Commencement Date. Haynes understands and agrees that there is no defined funding source for the grant outlined in this Agreement, and as such this grant is subject to annual appropriation. 3. In consideration for such assistance, Haynes hereby accepts the benefits and burdens set forth below. Job Retention funds in the amount of$1,000 will be provided for each job retained by a Collier County resident or an employee relocating to Collier County. Haynes proposal in its approved application was to retain 42 jobs that are filled by residents of Collier County, but Haynes hereby represents that only 37 of the 42 jobs were filled by residents of Collier County as of the preliminary review of 2011 wage and payroll information. Retention funds for 37 jobs filled by residents of Collier County will be released upon execution of this Agreement and verification that the jobs were retained on the following dates: September 30,2011 - $ 12,333 (Pending verification) September 30,2012 - $ 12,333 (Pending verification) September 30,2013 - $ 12,334 (Pending verification) 4. An annual review and audit of performance under such agreement shall be performed by the County Manager or his designee for each year of payment, to determine whether there has been good faith compliance with the terms of the Agreement. The initial review of performance will commence with the execution of this contract. Haynes shall give the county auditor full access to its business records and business premises as required certifying the retained and created jobs. If the County Manager or his designee finds, on the basis of substantial competent evidence, that there has been a failure to comply with the terms of this Agreement, the Agreement may be revoked or unilaterally modified by the County. Haynes shall be given ten Page 2 Packet Page-2113- 12/10/2013 16.F.4. business days prior written notice of any review and audit. In addition to an annual audit, within ten business days from the county's written request, Haynes will provide the County with all requested documentation required to verify compliance with the terms of the ordinance or any agreement. Any documents or copies of documents retained by the County which contain any individual employee's personal identifying information that is held as evidence of the employment and wage requirements of this contract will be confidential in accordance with F.S. 288.075 for the duration of this contract. 5. Neither the payment of funds, nor this Agreement, may be transferred, assigned, credited or otherwise conveyed without prior written approval from the County, which approval may be freely withheld. 6. The County shall record this Agreement in the Public Records of the County, with all costs of recording being paid by Haynes. After all obligations have been met, a satisfaction of agreement will also be recorded in Collier County public records at Haynes's sole expense. IN WITNESS WHEREOF, the Parties have executed this Agreement on the date and year first above written. ATTEST: BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, Clerk COLLIER COUNTY, FLORIDA By: By: , Deputy Clerk GEORGIA A. HILLER, ESQ. CHAIRWOMAN Approved as to form and legality Recommend Approval: Jeffrey A. Klatzkow Bruce Register County Attorney Director, Business &Economic Development Page 3 Packet Page -2114- 12/10/2013 16.F.4. AS TO HAYNES CORPORATION: .., Signed, sealed and Delivered in the presence of: Si-,• -ire Ja ie S. D xon, Presi.'t of Haynes 3 siv,4,0N A- u+u' t Core'ration Prin ed Name Atli 1...• .1. .., nature 0 4A11ei k M. P Printed ame STATE OF FLORIDA COUNTY OF COLLIER The foregoing Agreement was acknowledged before me this L-1,-, da r of dOVV.vn.134, , 2013, by James S. Dixon, President of Haynes Corporation, who is ersonally ) vvn b me or has produced as proof of identity. [NOTARIAL SEAL t�- -CG--LL,i- [N ] 6,-- t1l,AA . Signature of Notary Public—State of Floi+ida .9.*.r MDMILE OM DFSION SFSF E AD28 f �.�; d• EXPIRESJAy14,2017 ` �T ""° ': Pub "i°°""°" ` 6( "et•.1Ulk 6CYL=CtaCaUV Print Commissioned Name of Notary Public Page 4 Packet Page-2115- 12/10/2013 16.F.4. EXHIBIT"A" Legal Description 3581 Mercantile Avenue, Naples, FL 34104 36 49 25 COMMN 1/4 CNR, S 628.55 FT, W 989.97 FT TO POB, W 455.2 F7; N 200 FT, E 455.2FT, S 200 FT TO POB 3742 Arnold Avenue, Naples, FL 34104 36 49 25 COMM AT N'/ CNR S 228.55 FT, S 89 DEG W 1221.45 FT TO POB, S 200 FT, W 455.2 FT, N 200 FT, E 455.2 FT TO POB 2.08 Page 5 Packet Page -2116-