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Agenda 07/27/2010 Item #10DAgenda Item No. 10D July 27, 2010 Page 1 of 38 EXECUTIVE SUMMARY Recommendation to consider approving the request by the Economic Development Council of Collier County to provide a waiver of the average wage requirements and Qualified Targeted Industry Tax Refund Program participation requirements in order to allow Haynes Corporation to be accepted into the Fee Payment Assistance Program, the Job Creation Investment Program, the Job Retention Investment Program and the Fast Track Regulatory Process Program for the expansion of their Corporate Headquarters in Collier County (Fiscal Impact: $161,550) OBJECTIVE: That the Board of County Commissioners (Board) consider approving the request by the Economic Development Council of Collier County (EDC) to provide a waiver of the average wage requirements and Qualified Targeted Industry Tax Refund Program (QTI) participation requirements in order to allow Haynes Corporation to be accepted into the Fee Payment Assistance Program, the Job Creation Investment Program, the Job Retention Investment Program and the Fast Track Program for the expansion of their Corporate Headquarters in Collier County. CONSIDERATIONS: intended to: (1) Provide performance -based programs offering financial relief for eligible targeted industry development or expansion projects in Collier County to mitigate the effects of rising development costs; (2) Provide for the economic well being of Collier County residents by providing high - wage employment opportunities in Collier County; (3) Lessen the seasonal cycle of Collier County's economy; and (4) Encourage investment opportunities for new or existing companies thus increasing and diversifying the county's tax base. The Economic Incentive Programs, established by Collier County, are Collier County, in cooperation with the EDC, currently offers six local incentive programs. These Programs are Fee Payment Assistance, Property Tax Stimulus, Job Creation Investment, Advanced Broadband Infrastructure Investment, Job Retention Investment and the Fast Track Regulatory Process Program. In order to qualify to participate in the Programs a new or expanding business must meet specified criteria related to the type of industry proposed, number of jobs created and the average wage of the new jobs. Each of the individual Programs were adopted by the Board and are codified in Chapter 49 of the Collier County Code of Laws and Ordinances. The current Fast Track Regulatory Process Program was adopted by the Board on January 24, 2006 via Resolution No. 2006 -12. On June 28, 2010, the Economic Development Council submitted a request, along with the completed Incentive Program Application, to allow Haynes Corporation to participate in the Fee Payment Assistance, Job Creation Investment, Job Retention Investment and Fast Track Regulatory Process Programs. Haynes Corporation is a manufacturer of diesel fuel injection systems and precision component parts that has been in operation in Collier County since 1989. Haynes Corporation is a long established Collier County company with strong ties to the community. The company's owners are involved with a number of local charities. Additionally, Haynes Corporation was named by Gul%shore Business as one of Collier County's top companies for 2009; provided as an attachment to this Executive Summary is additional detailed information, provided by the EDC, related to the company and the expansion and relocation project. Agenda Item No. 10D July 27, 2010 Page 2 of 38 The Collier County location serves as the corporate headquarters for the company and currently employs 45 people. The company also operates a facility in Norwalk, California which employs an additional 20 people. Haynes Corporation is considering consolidating their operations into one location, with the desired choice being to remain in Collier County. In order for the company to remain, they have outlined the following needs: 1) Ability to quickly permit and build an additional facility, adjacent to their current facility (3581 Mercantile Avenue) on land they currently own; 2) financial incentives to defray the cost of relocation, hiring; and 3) access to a skilled workforce or training programs for potential employees. In the event that these needs cannot be addressed in Collier County, the company is considering relocation of the operation to Norwalk, California or Jackson, Michigan. The company is proposing to retain 45 jobs in Collier County at an average wage of $42,078.08. These jobs consist of the corporate headquarters employees and manufacturing and production employees. Additionally, Haynes Corporation proposes to create 20 new jobs at an average wage of $34,320. These jobs will also be manufacturing and production jobs, and will be offered to the company's employees currently working in California to relocate to Collier County as well as other outside applicants. The construction portion of the project consists of the construction of a 30,000 square -foot building on property owned by the company, adjacent to the existing manufacturing facility. The capital investment related to this expansion totals $1,850,000, including the purchase of new manufacturing equipment, with construction estimated to commence in the spring of 2011. Based on the location of the expanding business in Western Collier County, the following are the criteria to participate in the Fee Payment Assistance, Job Creation Investment and Fast Track Regulatory Process Programs: • Create new or expanded businesses that are "Targeted Industries" • Create a minimum of 20 new full -time jobs • The newly created jobs must pay an average wage of at least 150% of the current private sector average wage ($58,928) One additional criterion applies to calculate the average wage for participation in the Fee Payment Assistance Program: • An existing targeted industry company expanding within Collier County may include the wages of the existing jobs and the newly created jobs to calculate the average wage for the purpose of qualifying for the Fee Payment Assistance Program. Additionally, in order to participate in the Job Retention Investment Program the following criteria apply: • The company must have been operating in Collier County for a minimum of two years, and at all times be in full compliance with all applicable laws and regulations; F aenGu liem No. I OD Juiy 27. 2010 Pane 3 of 38 • Participation in this program is limited to the following industry clusters: Aviation and Aerospace, Health and Life Sciences, Computer Software and Services, Manufacturing and Wholesale Trade and Distribution; • The company must meet the criteria and participate in the State of Florida Qualified Targeted Industry (QTI) Tax Refund Program as set forth by F.S. § 288.106; • The average wage of the retained jobs must be at least 115 percent of the average wage for Collier County ($45,178); • The company must retain a minimum of five jobs; and • A minimum of 50 percent of the company's revenue must be generated from outside of Southwest Florida (Sarasota, Lee, Charlotte, Glades, Hendry and Collier County). Haynes Corporation does not meet the average wage requirements for the Fee Payment Assistance, Job Creation Investment, Job Retention Investment and Fast Track Regulatory Process Programs. Related to the Job Creation Investment and Fast Track Regulatory Process Programs, which consider the average wage of the new jobs, the proposed average wage of $34,320 is 87% of the current private sector average wage ($39,258) versus the 150% ($58,928) required to participate in the programs. The Fee Payment Assistance Program uses a calculation based on the average wage using the existing and new jobs; however using this calculation, the proposed average wage is $39,691, which is 101% of the current private sector average wage versus the 150% required to participate in the Program. The Job Retention Investment Program requires that the retained jobs pay an average wage of 115% of the current private sector average wage. The jobs proposed to be retained by Haynes Corporation pay an average wage of $42,078.08 which is 107% of the current private sector average wage. In addition, Haynes Corporation does not qualify to participate in the Job Retention Investment Program as the company is not a participant in the State of Florida Qualified Targeted Industry (QTI) Tax Refund Program. Therefore, in order to participate in the Economic Incentive Programs, a waiver of the average wage criteria is needed for the Fee Payment Assistance, Job Creation Investment, Job Retention Investment and Fast Track Regulatory Process Programs and a waiver of the requirement for QTI participation is needed for the Job Retention Investment Program. Since the adoption of the Programs in 2003, one waiver has been granted to a company to allow the business to participate in the Fast Track Regulatory Process Program for the building pen-nit required for their tenant improvement. The company met the targeted industry and job creation criteria, but did not meet the average wage criteria as they are 9% below the wage requirements. The company did not request any other incentives and there is no fiscal impact associated with the Fast Track Regulatory Process Program, aside from staff time to manage the Program. Because this company requires a number of waivers from Program requirements in order to participate, staff from the County, the EDC and company representatives have developed the following additional criteria designed to provide assurances that the assistance provided to the company will provide direct benefits to Collier County. • The 20 proposed new jobs will be offered with preference to Collier County residents or employees willing to relocate to Collier County; ,, nda !'em No. 10D Ju!y 27. 2010 Page 4 of 38 • 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; • 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 • 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 and will occur prior to the actual job creation. The local Economic Incentive Programs are performance based. The participating companies must meet specific requirements including jobs created, wage criteria, etc., in order to maintain eligibility to receive funds. As a final consideration, staff has been working with the EDC and local businesses to better understand the types of incentives that will best help companies of different sizes and structures. Therefore, staff also recommends that the Board direct 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. FISCAL IMPACT: Haynes Corporation is seeking financial incentives in the total amount of $161,550. The following is a breakdown of the amount per Program and the estimated timing that incentive payments may occur. Job Creation Investment: Haynes Corporation is proposing to create 20 new jobs. As stated above, the company will require a waiver from the average wage requirements in order to participate in this program. In the event that the company is allowed to participate, the jobs will be created in three phases with a total of 20 jobs in place by September 30, 2013. Job Creation payments will be paid in the fiscal year following the date the newly created jobs are verified to be in place. Additionally, the company has agreed to offer the new jobs with preference to existing residents of Collier County or employees willing to relocate to Collier County. 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 fiscal year, displaying when the Job Creation payments would occur (assuming that all jobs are created and validated): Agenda Item No 10D July 27, 2010 Page 5 of 38 Fiscal Year Potential Amount of Job Basis of Payment Creation Payment FY 201? $10,000 First Payment Phase I — 15 jobs FY 2013 $12,000 Second Payment Phase I — 15 jobs First Payment Phase II — 3 jobs FY 2014 $13,333 Third Payment Phase I —15 jobs Second Payment Phase II — 3 jobs First Payment Phase III — 2 jobs FY 2015 $3,333 Third Payment Phase II — 3 jobs Second Payment Phase III — 2jobs FY 2015 $1,334 Third Payment Phase III — 2 jobs Total $40,000 20 jobs Job Retention Investment: Haynes Corporation is proposing to retain 45 jobs in Collier County. Other options being considered involve the relocation of the company to either Michigan or California. As discussed above, the company will require a waiver from the requirement to participate in the State of Florida QTI Program in order to qualify for the Job Retention Investment Program. The QTI Program provides tax refunds to targeted, high - growth industries that create at least 10 new jobs paying 115% of the average annual wage. The State of Florida verities that the jobs have been created in accordance with the Program prior to the release of any funds. Therefore, because the company is not participating in QTI, the payout of Job Retention funds will occur after 1) the retained jobs are verified in accordance with the requirements of the Job Retention Investment Program and 2) after the first phase of jobs are in place and verified related to the local .lob Creation Investment Program. Additionally, as stated above, Job Retention funds will be provided for the retained jobs that are filled by residents of Collier County, which totals 42. Retention funds are estimated to be released in the following fiscal years: Fiscal Year 2012 - $14,000 Fiscal Year 2013 - $14,000 Fiscal Year 2014 - $14,000 Total - $42,000 Fee Payment Assistance: Haynes Corporation is proposing to construct and equip a 30,000 square -foot building on property owned by the company, adjacent to the existing manufacturing facility. The capital investment related to this expansion totals $1,850,000, with construction estimated to commence in the spring of 2011. As stated above, the company will require a waiver from the average wage requirements in order to participate in this Program. In the event that the waiver is provided, based on proposed capital investment for the project, the company is eligible to receive up to $79,550 in Fee Payment Assistance funds which will pay a portion of the impact fees related to the subject construction. The actual incentive award may not exceed the impact fees due and payable for the proposed development. Conversely, any impact fees due in excess of the incentive award are the responsibility of the property owner. A lien will be placed on the subject property for the dollar amount of the impact fees, which will remain on the property for the term of the agreement. At the conclusion of the agreement, if all Agenda Item No. 10D July 27, 2010 Page 6 of 38 requirements are met, the lien will then be released. If at any time during the term of the agreement the non - County party is not in compliance with the terms and requirements set forth by the agreement, they may be found in default and subject to default provisions set forth in Chapter 49, Article II of the Collier County Code of Laws and Ordinances (The Fee Payment Assistance Program). Because the construction of the new building is proposed to begin in Fiscal Year 2011, if the Board elects to approve this request, the proposed budget for the Economic Incentive Programs (Fund 001) will increase by $79,550. The total proposed budget currently reflects $112,700 for the local incentive programs. This amount would increase to $192,250, with the total budget increasing to $705,150. Fast Track Regulatory Process: This Program is designed to expedite development review for qualified economic development projects. As described above, Haynes Corporation requires a waiver from the average wage requirements in order to participate in this Program. There is no fiscal impact associated with this Program, aside from staff time to manage the Program. The Fast Track Regulatory Process Program provides an expedited review processes but does not involve the award of incentive funds or any other County funding. In summary, the first payment related to this request is estimated for payment Fiscal Year 2011, in the amount of $79,550 for the Fee Payment Assistance Program and will require the execution of a Fee Payment Assistance Agreement, approved by the County Attorney and the Board, in accordance with the requirements of the Program. This amount is not currently reflected in the proposed FY 2011 budget. The following chart provides the current commitments per fiscal year for approved applicants related to the local Economic Incentive Programs and the funding request from Haynes Corporation: Fiscal Year 2011 2012 20]3 2014 -2020 Commitments- $112,700 $86,007 $96,966 $TBD applicants with approved /pending agreements Commitments- N/A - budget $59,753.33 $68,797.33 $244,245 applicants covers only approved but still executed require approved agreements and executed agreements Haynes $79,550 $24,000 $26,000 $31000 Corporation request TOTAL $192,250 $169,760.33 $191,763.33 $276,245 The dollar amounts under both of the "Commitments- rows above are subject to change after FY 2011 based on any new agreements that are executed between approved Program applicants and Collier County. Therefore, after an agreement is executed the associated dollar amounts of the potential incentive awards would be removed from the "Commitments" row for "approved applicants that Agenda item No. 10D July 27, 2010 Page 7 of 38 require approved and executed agreements" and added to the "Commitments" row for "applicants with approved agreements" for each applicable future fiscal year. Likewise, any future approvals for companies to participate in the local incentive programs would have the associated incentive dollar value added to the "Commitments" row for "approved applicants that require approved and executed agreements" until such time that the status changes. Funding for the local economic incentive programs is provided by the General Fund (001). As stated above, the current FY 2010 approved budget, as well as the FY 2011 proposed budget, only provide funding for those applicants with executed agreements or agreements pending approval. All of the financial information related to the local incentive programs is reviewed annually as part of the budget preparation in order to accurately provide a recommended funding level for the programs. The Impact Fee Administration section of the Growth Management Division, in coordination with the staff from the EDC, is responsible for job verification as well as monitoring pro ram compliance. 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: Chapter 49 of the Consolidated Code of Laws and Ordinances of Collier County contain a number of economic incentive programs. If the Board wishes to approve this request, that the Board direct 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." -JAK RECOMMENDATION: That the Board of County Commissioners approve the request by the Economic Development Council of Collier County to provide a waiver of the average wage requirements and Qualified Targeted Industry Tax Refund Program participation requirements in order to allow Haynes Corporation to be accepted into the Fee Payment Assistance Program, the Job Creation Investment Program, the Job Retention Investment Program and the Fast Track Program for the expansion of their Corporate Headquarters in Collier County based on the overall economic benefits to be derived from the project and the company's commitment related to the employment and retention of Collier County residents. Additionally that the Board of County Commissioners direct the County Manager, or his designee, and the County Attorney, in coordination with the Economic Development Council, to develop options for changes to the Economic Incentive Programs for future consideration by the Board. Prepared by: Amy Patterson, Impact Fee and Economic Development Manager Growth Management Division — Planning and Regulation Attachments: 1) Incentive Application and 2) EDC Request Package Agenda Item No. 10D July 27, 2010 Page 8 of 38 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: 10D Item Summary: Recommendation to consider approving the request by the Economic Development Council of Collier County to provide a waiver of the average wage requirements and Qualified Targeted Industry Tax Refund Program participation requirements in order to allow Haynes Corporation to be accepted into the Fee Payment Assistance Program.. the Job Creation Investment Program,. the Job Retention Investment Program and the Fast Track Regulatory Process Program for the expansion of their Corporate Headquarters in Collier County. (Fiscal Impact: $161,550)(David Jackson, Business and Economic Development Executive Director) Meeting Date: 7/27/2010 9:00:00 AM Prepared By Amy Patterson Manager - Impact Fees & EDC Date Community Development 8 Business Management 8 Budget Office 711912010 10:29:52 AM Environmental Services Approved By Judy Puig Operations Analyst Date Community Development & Community Development & 711 912010 1 0:46 AM Environmental Services Environmental Services Approved By David Jackson Executive Director, CRA Date 711912010 12:48 PM Approved By Jeff Klatzkow County Attorney Date 7119/2010 1:54 PM Approved By Norm E. Feder, AICP Administrator - Transportation Date Transportation Division Transportation Administration 7!1912010 4:40 PM Approved By Nick Casalanguida Director Transportation Planning Date Transportation Division Transportation Planning 7119/2010 6:22 PM Approved By OMB Coordinator Date County Manager's Office Office of Management & Budget 7;2012010 9:12 AM Approved By Leo E. Ochs, Jr. County Manager Date County Managers Office County Managers Office 7120!2010 4:10 PM ECONOMIC DEVELOPMENT COUNCIL OF COLLIER COUNTY 3050 Horseshoe Drive North, Suite 120 • Naples, FL 34104 Phone (239) 263 -8989 • Fax (239) 263 -6021 Hn,0 Glrido.cOm HAYNES CORPORATION EXPANSION & RELOCATION Executive Summary for Economic Stimulus Program Application June 28, 2010 Background Agenda Item No. 10D 10 38 ECONOMIC DB TIOPMENT COUNCIL (;mmtit F %oriels Growing Great Ideas Haynes Corporation is a manufacturer of diesel fuel injection systems and precision component parts. Haynes Corporation currently has facilities in Naples, Florida and Norwalk, California. The Naples facility employs 45 people at an average wage of $42,078 and serves as the headquarters for Haynes. The Norwalk facility employs an additional 20 people. Haynes Corporation is considering a consolidation of their facilities into one location, and they are reviewing their options in Naples, Norwalk and Jackson, Michigan. Because their headquarters are located in Naples they would like to stay, but their decision is contingent on the following: • Ability to quickly permit and build an additional facility, adjacent to their current facility and on land they own; • Financial incentives to defray the cost of relocation, hiring and training; • Access to a skilled workforce, or training programs for potential employees. Economic Stimulus Program Haynes Corporation would like to participate in the Economic Stimulus Program (ESP) offered by Collier County as part of the Public /Private Partnership for Economic Development. The requirements to participate in the ESP, for projects in Western Collier County are as follows: • Create new or expanded businesses that are "Targeted Industry" • Provide 150% of more of the current private sector average wage • Create a minimum of 20 new full time jobs. Haynes Corporation is a manufacturing company, and as such is included in the list of Targeted Industries for Collier County. The expansion would create a minimum of 20 new full time jobs. However the average wage for new jobs at Haynes will not meet the minimum of 150 %. PAEconomic D,,elopmcmlCumpuny Project P71rAHavnce ComoranonAHavlms Corporimon EXCCLI IVC Summm� b 28- I0.doc ECONOMIC DEVELOPMENT COUNCIL OF COLLIER COUNTY 3050 Horseshoe Drive North, Suite 120 • Noples, FL 34104 Phone (239) 263 -8989 • Fox (239) 263 -6021 www.eNaplcSFlorlda.cam Agenda Item No. 1 OD B 10 38 ECONOMIC DEVELOPMENT COUNCIL a( Ca! /ier ('ounry; FloriJ. Growing Great Ideas The average wage for Collier County is $39,285. The average wage for existing and new jobs for Haynes Corporation will be 101% of the County's average wage. As a result, the EDC requests that the Collier Board of County Commissioners (BOCC) grant a waiver to participate in the ESP program for the following reasons: • Manufacturing is a targeted industry, and has been identified by Collier County and the state of Florida as an industry that adds diversity and stability to our economy. • The unemployment rate in Collier County (11.4 %) exceeds the state average and the non- seasonally adjusted average of the nation. Atthough 20 new jobs will not impact the unemployment rate in a statistically significant way, it is an opportunity for 20 people to get back on their feet. • Providing these incentives will maintain 45 target industry jobs at 107% of the average wage. If the incentives are not approved there is a greater chance that Haynes Corporation will close their Naples facilities and consolidate in another location. • Providing these incentives will create an opportunity for $1.85 million in capital investment in our community. • Haynes Corporation brings new money to Collier County by making 95% of their sales outside our area. In fact, Haynes Corporation exports its products to 25 countries around the world, infusing foreign money into our economy. PaEconuntic DevelopmcnACompmy Project FIcAiaynes CorporuliunMaynes Corporation Executive Summon 6- 28 -I0.dm Job Function Number of Average Wage Employees Corporate Headquarters 12 $63,412.80 Manufacturing/Production 33 $34,320 Existing Jobs ($16.50 /hour) Total Existing 45 $42,078.08 New Jobs Manufacturing/Production 20 $34,320 Total Existing and 65 $39,691 New Jobs The average wage for Collier County is $39,285. The average wage for existing and new jobs for Haynes Corporation will be 101% of the County's average wage. As a result, the EDC requests that the Collier Board of County Commissioners (BOCC) grant a waiver to participate in the ESP program for the following reasons: • Manufacturing is a targeted industry, and has been identified by Collier County and the state of Florida as an industry that adds diversity and stability to our economy. • The unemployment rate in Collier County (11.4 %) exceeds the state average and the non- seasonally adjusted average of the nation. Atthough 20 new jobs will not impact the unemployment rate in a statistically significant way, it is an opportunity for 20 people to get back on their feet. • Providing these incentives will maintain 45 target industry jobs at 107% of the average wage. If the incentives are not approved there is a greater chance that Haynes Corporation will close their Naples facilities and consolidate in another location. • Providing these incentives will create an opportunity for $1.85 million in capital investment in our community. • Haynes Corporation brings new money to Collier County by making 95% of their sales outside our area. In fact, Haynes Corporation exports its products to 25 countries around the world, infusing foreign money into our economy. PaEconuntic DevelopmcnACompmy Project FIcAiaynes CorporuliunMaynes Corporation Executive Summon 6- 28 -I0.dm ECONOMIC DEVELOPMENT COUNCIL OF COLLIER COUNTY 3050 Horseshoe Drive North, Suite 120 • Naples, Ft. 34104 Phone (239) 263 -8989 • Fax (239) 263 -6021 +,+.vn.rNa;,IrsFloiida.com Agenda Item No. 1 OD 010 �° 11 of 38 ECONOMIC DEVELOPMENT COUNCIL I � airier (mvnft. l/nndd Growing Great Ideas While Haynes Corporation will employ 65 people at the conclusion of this project, the indirect employment effect of the Haynes Corporation expansion and relocation accounts for an estimated 57.5 additional jobs in our community. The total earnings impact (direct and indirect) from the Haynes Corporation expansion and relocation project is $4,922,724.68. Anecdotally, many local manufacturers have turned to former construction workers for entry -level manufacturing work. Rather than import manufacturing workers to the area for a new facility the company intends to apply for the Quick Response Training program through Workforce Florida to train local residents and provide the opportunity for a new career path in manufacturing. Assuming that Haynes Corporation is granted a waiver from the BOCC, the ESP will provide opportunities to participate in the following programs: Fast Track Regulatory Process Program; Fee Payment Assistance; Job Creation Investment Program; Job Retention Investment Program. Incentive Descri tion Amount Job Creation Investment Provides a performance based $40,000 Program program to mitigate the effects of rising fees associated with the costs of relocation and job creation. In Western Collier, without CITI, a cash incentive of $2,000 per job created will be awarded. Job Retention Investment Provides a performance based $45,000 Program program in order to preserve the existing the existing targeted workforce and encourage the expansion of additional high wage jobs. This program provides a cash incentive of $1000 per existing ob retained in Collier County. Fee Payment Assistance Offsets a portion of impact $71,005 Program fees related to construction of P:�E. unomic neyclupmeWCumpany Project FilcsAHaynes CurporatiunAHaynes Coglnrnion Exerulive Smnnutry 6 28- I0.doc ECONOMIC DEVELOPMENT COUNCIL OF COLLIER COUNTY 3050 Horseshoe Drive North, Suite 120 • Naples, FL 34104 Phone (239) 263 -8989 • Fax (239) 263 -6021 wvvw.cNaplesF1cmda.ccm Agenda Item No. 10D '010 12 of 38 ECONOMIC DIJVELOPMENr COUNCIL r,J f ellicr Canty. Aur.�lrr Growing Great Ideas The ESP will provide assistance with the first two points of concern for Haynes Corporation as they decide whether to consolidate in Collier County or elsewhere. The EDC is also working actively with Haynes Corporation to identify training grants that will offset the cost of training new employees. The EDC, therefore, recommends that the BOCC grant a waiver for Haynes Corporation to participate in the ESP program and approve the use of financial incentives, as outlined above, to induce Haynes to consolidate operations in Collier county. P:AEconomic LhrelopmentACompany Project File.Aiapnes CorporationAHaynes Corporation Executive Sumnmry 6-228-1 OAoc new or expanding buildings. Subordinate lien placed on Based on capital investment of property for 10 years. $1,850,000. Eligible amount calculated by multiplying the investment of building, land and equipment by the current general revenue millage rate and multiplying that by 10. Total: $156,005 The ESP will provide assistance with the first two points of concern for Haynes Corporation as they decide whether to consolidate in Collier County or elsewhere. The EDC is also working actively with Haynes Corporation to identify training grants that will offset the cost of training new employees. The EDC, therefore, recommends that the BOCC grant a waiver for Haynes Corporation to participate in the ESP program and approve the use of financial incentives, as outlined above, to induce Haynes to consolidate operations in Collier county. P:AEconomic LhrelopmentACompany Project File.Aiapnes CorporationAHaynes Corporation Executive Sumnmry 6-228-1 OAoc Agenda Item No. 10D M WOOof 38 W ECONOMIC DE'ELOPivIENT COUNCIL 'o , 1m1 r, 1 i,vrdr Growing Gr f Ida Economic Stimulus Program Recommendation Form for Havaes Corporation Name of Business 1. Economic Stimulus Programs: Broadband Infrastructure Investment © Fast Track Permitting Q Fee Payment Assistance Job Creation 0 Job Retention ❑ Property Tax Stimulus ❑ Local Match for QTI 2. Cosier County Iccation: ✓ Western Collier County— west of 951 ❑ Eastern Collier County - east of 951 ❑ Immokalee Enterprise Community/ Enterprise Zone ❑ Everglades City Enterprise Zone 3. Project qualifications: Number of current Collier County employees Number of new jobs resulting from project: Total retained and new jobs: 45 Avg. Wage: $42.078.08 20 Avg. Wage: $34,320 65 Avg. Wage: $39.691 Agenda Item No. 10D 4. Schedule of incentive funds requested (by Collier County fiscal year O 'la� 0038 September): -- FY FY 2010 -2011 2011 -2012 Job Creation Phase 1 $10,000 Phase II Phase III Job Retention Fee Payment Assistance Property Tax Stimulus Program Broadband Total $15,000 $71,005 $71,005 $25,000 5. Economic Impact Multipliers: NAICS Code: 333618 SIC Code: Earnings Multiplier: 1.6586 Employment Multiplier: 1.9129 FY 2012 -2013 $10,000 $2,000 $15,000 $27,000 Prepared by: Brooke C. Gabrielsen FY FY 2013 -2014 2014 -2015 $10,000 $2,000 $2,000 $1,333 $1,333 $15,000 $28,333 $3,333 (Print-Name) i (Signature) Date Approved: �� , r ' f i i Tammie Nemecek, President Date Effective 03/08 Page 2 of 2 FY 2015- 2016 Total $30,000 $6,000 $1,334 $4,000 $45,000 $71,005 $1,334 $156,005 GENERAL PROJECT OVERVIEW ERVIEYY Haynes Corporation Name of Business Haynes Expansion 8. Relocation Project Title or Code Name (1 -5 word description) FOR EDG USE ONLY Date Received Date Revised Date Completed EDC Project Number AbAnda IteM No, 1 O July 27, 2010 Page 15 of 38 Contact the Economic Development Council of Collier County to discuss your project and application before submitting a formal proposal The completed and signed application must be filed with, CDC ECONOMIC DEVELOPMENT COUNCIL nC Cpllier Covnty.I Amla Growing Great Ideas 3050 North Horseshoe Drive, Suite 120 Naples, FL 34104 Phone: 239- 263 -8989 Fax: 239- 263 -6021 wvnv aNanlpcFlolitla. corn Effective 1010; Page 7 of 9 9 Gienl Approved 715)? (initials) •_! ='% ,.; 'Agenda. teT No. 1 O July 27, 2010 GENERAL PROJECT OVERVIEW Page 16 of 38 I.BUSIALESSINFORMATION A. Name of Business Unit: Haynes Corporation B. Mailing Address: 3561 Mercantile Ave Street Address Naples FI 34104 City Slate 211) Coda C. Name of Parent Company: N/A D. Primary Business Unit Contact: R. Scott Dixon Title: New Business Development Mailing Address: 3581 Mercantile Ave Street Address _Naples FL 34104 Crty Stale Zip Code Telephone: 239 -436 -1582 Fax: 239- 643 -5311 Email: sdixon(alhaynescorp.com Website: www.havnesco.com E. Business Unit's Federal Employer Identification Number: 48- 1304650 F. Business Unit's Unemployment Compensation Number: 2511962 G. Business Unit's Florida Sales Tax Registration Number: 21- 8012454691 -5 H. Collier County Business Tax Receipt Number: 911650 1. Is the business unit minority owned? Yes X No ❑ If yes, explain: Woman Owned J. What Is the business unit's tax year (ex: Jan 1 to Dec 31): Jan 1 to Dec 31 PROJECT 2. OVERVIEW A. Which of the following best describes this business unit: ❑ New business unit to Florida ❑ New business unit to Collier County X Existing Collier County business creating and / or retaining jobs If an expansion, how many jobs are currently in the expanding business unit? B. How many individuals are employed at all Florida Locations? 45 C. How many individuals are employed at all Collier County locations? 45 D. Are any Jobs being transferred from other Florida locations? Yes ❑ No X If yes, how many jobs and from where? Effective 10107 page 2 of u Clienl Approved �/ (inilial?) Ggdnda ttern No. 10D July 27, 2010 GENERAL PROJECT OVERVIEW Page 17 of 38 E. Give a full description of this project, including the primary business activities /functions: Haynes Corporation is a precision manufacturing business with products including fuel injection pumps, injector assemblies, nozzle assemblies, delivery valves, plungers and barrels, electronic injectors. The company also does contract manufacturing- Their clients are national and multi- national corporations. Haynes corporation has been operating in Naples, Florida since 1989. In 2004, after becoming frustrated and weary of the permitting environment in Collier County, Haynes Corporation chose to purchase a company in Norwalk, California to expand their manufacturing capacity and capability. The company is headquartered in Naples, FL. The Naples manufacturing facility is approximately 35,000 square feet and has complete engineering capabilities and expertise. The Naples facility focuses largely on cellular manufacturing and assembly line production. The Research and Development department is also housed in the Naples location. The Norwalk facility is 30,000 square feet and focuses on EDM micro - drilling, bore and seat grinding, and injector assembly and testing. The company would like to consolidate operations in one location Collier County has the opportunity retain this business and its 45 employees in Naples, and stands to gain an additional 20 jobs in the relocation of their California facility to Naples In addition to plans for consolidation of operations into one location, the company is expanding due to growth in sales and new business contracts. One such contract, called 'Project Red October" because production will ramp up in October, will begin creating jobs almost immediately. Some of the jobs associated with Project Red October will be engineering and R &D, and otherjobs will be in production. F. What is the project's Targeted Industry(ies): Manufacturing G, Break down the project's primary function(sl and the corresnnndlnn wanes• Business Unit Activities - - -- NAILS Project Code /SIC Code Function 01a l- 100%) -- Annualized Wage ($) Corporate Headquarters 51114 18% $63,412.80 Precision_Manuf9cturing 3:33618 82% $34,320 Assuming Project is 65 total jobs. Existing 12 Corporate employees + 33 anufachrrinq employees New. 20 Manufacturing employees H. What is the project's proposed location address: 3581 Mercantile Ave - fh ,1 Addrnbs -- " -- Naples FI 34'i 04 C :'U' State Lp l Ode _._ -- What is the project's current location address ('if different): Eff_clive 10107 Pap 9 3 of 9 Glient Approved D'12 (Ini11eIS) _ �., ' fpnda itetii No. 10D July 27, 2010 GENERAL PROJECT OVERVIEW Page 15 of 38 Same, and 13474 Pumice Street Street Address Norwalk _ CA 90650 City —slate Zip Code I. Is the project location within a current or proposed Brownfield site I area? Yes ❑ No X If yes, attach a copy of the official document designating the Brownfield area, Is the project location in an Enterprise Zone? Yes ❑ No X If yes, which zone? J. Which of the following describes the applicant's operations (select all that apply): F� Multi -state business enterprise ❑ Multinational business enterprise ❑ Florida business enterprise K. Which of the following describes this business unit (select all that apply): ❑ Regional headquarters office ® National headquarters office ❑ International headquarters office ❑ This is not a dedicated headquarters office L. What is the estimated percentage of gross receipts or final sales resulting froth this project that will be made outside of Florida (if sales is not a reasonable measure, use another basis for measure and provide explanation below): 95% Explain, if necessary. •: AND WAGE DVERVIEW A. How many jobs are expected to be created as part of this project? 20 B. If an existing business unit, how many jobs are expected to be retained as part of this project? jobs in jeopardy or leaving Collier County should only be included here; these jobs are not eligible for QTI) 45 C. What Is the annualized average wage for existing Collier County employees indicated in 3b? 42,078.08 D. What is the anticipated annualized average wage (excluding benefits) of the new to Collier County jobs created as part of this project? (Cash payments to the employees such as performance bonuses and overtime should be included.) $34,320 E. What Is the annualized average value of benefits associated with each new job created as part of this project? TBD F. What benefits are included in this value? (health insurance, 401(k) contributions, vacation and sick leave, etc ) OVERVIEW 4. rAPITAL INVESTMENT A. Describe the capital investment in real and personal property (Examples construction of new facility; remodeling of facility; upgrading, replacing, or buying new -- equipment. Do not include the value of land purchased for construction of a new building). Freclivo 10107 Pogo 4 pf g Client Approved (initials) ';Agenda :ltern No. 10D July 27, 2010 GENERAL PROJECT OVERVIEW Page 19 of 38 Haynes Corporation desires to build a 30,000 square foot facility on land they currently own, adjacent to their existing manufacturing facility in Naples, FL. They will need to construct the facility and move equipment from California to Florida where appropriate. Additional manufacturing equipment will be purchased for the existing facility and the new building. B. Will this facility be: ❑ Leased space with renovations or build out ❑ Land purchase and construction of a new building ❑ Purchase of existing building(s) with renovations X Addition to existing building(s) (already owned) ❑ Other (please describe in 4A above) C. List the anticipated amount and type of major capital investment to be made by the applicant in connection with this project: (attach separate schedule if investment will be made over more than three vearsl D. What Is the estimated square footage of the new or expanded facility? 30,000 E. When is the final location decision anticipated (date)? 8/1/10 F. What is the anticipated date construction will begin? TBD G. What Is the anticipated date operations will commence? 4/1111 A. What role will the incentive(s) play in the business unit's decision to locate, expand, or remain In Collier County? Incentives and permitting environment will play a large role in the decision to stay in Collier County and relocate California operations to Collier County Moving operations, building a new facility, moving and purchasing equipment and hiring new staff causes a great deal of disruption and costs a significant amount (In addition to the capital investment of $,1 85 million listed above the moving expenses are expected to cost a mininwm of $250,000). Incentives, from either location, will help offset the cost of consolidating operations in one place. B. What other cities, states, or countries are being considered for this project? Jackson, Michigan (where the company began in 1960) and Norwalk, California where the company currently has operations EftaUWe 10/07 pzge S 019 Client A roved pP 7— (inilfals) � Year 1 Year 2 Year 3 Land Construction / Renovations $0 $350,000 $0 $ $0 $ Manufacturing E ui t $1,500,000 $ $ R &D Equipment $0 $ $ Other Equipment (computer e in mend office nuollure, etc 1 $TBD $ $ Total Capital Investment $1,850,000 $ $ D. What Is the estimated square footage of the new or expanded facility? 30,000 E. When is the final location decision anticipated (date)? 8/1/10 F. What is the anticipated date construction will begin? TBD G. What Is the anticipated date operations will commence? 4/1111 A. What role will the incentive(s) play in the business unit's decision to locate, expand, or remain In Collier County? Incentives and permitting environment will play a large role in the decision to stay in Collier County and relocate California operations to Collier County Moving operations, building a new facility, moving and purchasing equipment and hiring new staff causes a great deal of disruption and costs a significant amount (In addition to the capital investment of $,1 85 million listed above the moving expenses are expected to cost a mininwm of $250,000). Incentives, from either location, will help offset the cost of consolidating operations in one place. B. What other cities, states, or countries are being considered for this project? Jackson, Michigan (where the company began in 1960) and Norwalk, California where the company currently has operations EftaUWe 10/07 pzge S 019 Client A roved pP 7— (inilfals) � — � , ;', <Agenda.ltem No. 10D July 27, 2010 Page 20 of 38 GENERAL PROJECT OVERVIEW C. What advantages or incentives offered by these locations do you consider important in your decision? Michigan offers the following: free land, below national average business taxes. California offers proximity to existing facility, an inexpensive vacant facility adjacent to existing operations and ready for move -in, a skilled labor market and a D. Indicate any additional internal or external competitive issues impacting this project's location decision? When Haynes Corporation considered expanding its Collier County operations in 2004 the permitting process and impact fees forced them to look outside the area. There has been a prevailing attitude among leadership at the company that collier County is not a business friendly environment, and that the county would rather not have expansion of industrial operations. Since that time the County's elected officials, government leaders and economic development organization have formed a cooperative relationship conducive to removing barriers for expansion. It is the feeling of Haynes Corporation that with the renewed focus on business and desire to remove barriers for existing businesses to expand, Collier County can be an appropriate location to consolidate operations. The Collier County Fast Track Permitting Process, Fee Payment Assistance or Property Tax Stimulus Program, and Job Creation and Retention incentives will help the leadership make a decision that is both desirable and financially sound. A. Provide a brief synopsis of the special impacts the project is expected to stimulate in the community, the state, and the regional economy. Include the impact on indicators such as unemployment rate, poverty rate, and per capita income. (1000 words or more)'add sheets if necessary Haynes Corporation is a manufacturer of diesel fuel injection systems and precision component parts. The company is headquartered in Naples, Florida where it has been operating since 1989. The company requests participation in the Economic Stimulus Program provide by Collier County for expanding businesses Haynes Corporation currently employs 45 people in its Collier County location. The consolidating of its operations from California to Florida would bring approximately 20 additional jobs to the area. The indirect employment impact for this project is 59.3385 using the 2001 RIMS it Multiplier for Precision Manufacturing. Existing employees at Haynes Corporation in Collier County are paid an average wage of $42,078, which is 107% of Collier County's average wage of $39,285. Existing employees are also given benefits, depending on their tenure with the company and skill level. The new jobs for Haynes Corporation in Collier County will be paid an average wage of $34,320, which is just below the County's average wage. The direct earnings impact from this project is $2,579,946.20. The indirect earnings impact is $1,699,152.57. Collier County has been severely impacted by the recession because of our economy's dependence on real estate, construction, development and tourism. The Florida Agency for Workforce Innovation, Department of Labor Statistics reported that the unemployment rate in Collier County for April 2010 is '11.4% Although that Effective 10107 Page 6 cf 9 Client Approved / (initials) Agenda -lfern No. 10D July 27, 2010 GENERAL PROJECT OVERVIEW Page 21 of 38 rate has fallen for three consecutive months, it remains higher than the national average and the state's non - seasonally adjusted average (11.2 %), While the retention of 45 jobs and addition of 20 more will not significantly impact the overall unemployment rate in Collier County, it will provide opportunities for our unemployed workforce to begin anew. Anecdotally, many local manufacturers have turned to former construction workers for entry -level manufacturing work. Rather than import manufacturing workers to the area for a new facility the company prefers to use the Quick Response Training program through Workforce Florida to train local residents and provide the opportunity for a new career path in manufacturing Precision manufacturing is a Qualified Target Industry according to state statute Provide a summary of past activities in Florida and in other states particularly as they relate to environmental or growth management Impacts. For example, what kind of corporate citizen has the applicant been? Also list awards or commendations, Jim and Laura Dixon, the owners of Haynes Corporation are very involved with the Naples Children and Education Foundation helping to raise more than 60 million dollars for the local charity. Laura Dixon (CEO) has been a 4 term board mernber for Youth Haven, which is a local charity assisting abused, neglected and abandoned children. _ Haynes Corporation has been distinguished by Gulf shoie Business as one of Collier County's top Companies for 20019 C. List and explain any criminal or civil fines or penalties or ongoing investigations that have been imposed upon the company, its executives, or its affiliates and any recent bankruptcy proceedings of the applicant or its parent company. D. Provide any additional information you wish to be considered as part of this incentive application or items that may provide supplementary background information on your project or company. The requirements to participate in the Economic Stimulus Program, for projects in Western Collier County are as follows: Create now or expanded businesses that are "Targeted Industries' Provide 1504'0 or more of the current private sector average wage Create a minimum of 20 new full time jobs Haynes Corporation is a Target Industry and will create a minimum of 20 new full time jobs. Haynes Corporation does riot meet the minimum wage criteria specified above. In order to participate in the Economic Stimulus Program the Collier Board Of County Commissioners will need to approve e waiver. Haynes Corporation wishes to consolidate their operations In one location and they are currently entertaining offers in Michigan and California to relocate, in response to dfflccdties they have encountered with Physical expansion related to business growth. The company currently employs 45 people, and all those jobs would he lost if the company chose L ralocate. In addition, Collier County stands Effeclice IT07 i, .pe 7 ni 5' Chenl Approval Inillals) uA sndaItem No. 10D July 27, 2010 Page 22 of 38 GENERAL PROJECT OVERVIEW to gain at least 20 additional jobs if Haynes Corporation chooses to consolidate operations in Naples. The bottom line: Collier County may choose to financially and procedurally support the expansion of Haynes Corporation in Naples, keep 45 jobs and gain 20 more; or the County may choose not to support the project and will lose 45 jobs and the potential for 20 more. You may request that your project Information (including information contained in this application) be confidential per F.S. 288.075, Confidentiality of Records for a 12 month period, with an additional 12 month extension available upon request for projects still under consideration. Please indicate your confidentiality preference: X Yes ❑ No 'Be sure to attach the proper incentive attachment sheet(s)' Effective 10i07 PaueBo(A Client Approved h.�!/ (initials) No. 0D July 27, 2010 GENERAL PROJECT OVERVIEW To the best of my knowledge, the information included in this application Is accurate. T, Scvtt'[fgt. w �c S/ TmvreI's. Dr;wy,ti IS Ike at U(e Slnnnhlre (Authe NZed Company Otticerj REQUIRED R Scott Dixon James S. Dixon Flame New BUSInass Development Title Haynes Corporaticn Company 3581 Mercantile Ave Address, if different than malling address 239- 643 -3013 Phone fJumber 239 - 643 -531'I Fax Number sdixi:gj yne_ scorp.corn Email Address 05 -27 10 f4ame of contact person, if different Iran above Phone Number Address Email Address flame _ President Title Haynes Corporation Company 3581 Mercantile Ave _ Address, !f different than rnallinq address 239- 643 -30'13 _ Pnone Number _239- 643 -5311 _ _ Fax lJumber jc ixon@d haynescorp -com Finail Address 5 -27 -10 Daia -- Efieelive 10/07 Peg& n of 9 CIIeN Approved (Inlllalsl „ „AOendaritem,No. 10D July 27, 2010 Page 24 of 38 Economic Stimulus Program Attachment to the General Project Overview Haynes Corporation Name of Business Must he a separate business unif or reporting unit of a ousfness pn/t that Is or wlfl bo registered with fit state of Florida for unemployment compensation purposos. IMPORTANT NOTE: This application must be filed and the incentive approved prior to making the decision to expand an existing Collier County business unit or to locate a new business unit in Collier County. A. For the purposes of certification, agreement, and claim review, indicate the average wage and corresponding threshold (percentage) to which you commit for all new jobs created: $34.320, which is at least 87% of the average wage in Collier County. B. Collier County Business Tax Receipt Number: 911650 C. How many jobs are currently employed at all Collier County locations? 45 D What is the annualized average wage (excluding benefits) of the employees indicated in 1c.? $42,078.08 2.10 PORT A. Identify the local government(s) anticipated to provide local financial support: Collier County B. Indicate the date(s) the approval is 1 are anticipated to be passed by the local government: July 27th 2010 C. Has the applicant ever participated In an EDC- assisted Protaram? Z Yes ❑ No If Yes, how many new and retained jobs were Included in that project? 30 trained in one workforce training rant: 48 trained in another workforce training grant. A. Type of Project (check all that apply): LJ Rezone ❑Tenant Improvement ❑ Other Revised 03 /0B Page 1 of 6 Client Approved / lnilia!s) Number of net new fall -time equivalent Collier County jobs created in the business unit Date by which jobs will be created Phase 1 15 9/3012011 11 3 9/30/2012 111 2 9/30/2013 _ Total _ 20 A. For the purposes of certification, agreement, and claim review, indicate the average wage and corresponding threshold (percentage) to which you commit for all new jobs created: $34.320, which is at least 87% of the average wage in Collier County. B. Collier County Business Tax Receipt Number: 911650 C. How many jobs are currently employed at all Collier County locations? 45 D What is the annualized average wage (excluding benefits) of the employees indicated in 1c.? $42,078.08 2.10 PORT A. Identify the local government(s) anticipated to provide local financial support: Collier County B. Indicate the date(s) the approval is 1 are anticipated to be passed by the local government: July 27th 2010 C. Has the applicant ever participated In an EDC- assisted Protaram? Z Yes ❑ No If Yes, how many new and retained jobs were Included in that project? 30 trained in one workforce training rant: 48 trained in another workforce training grant. A. Type of Project (check all that apply): LJ Rezone ❑Tenant Improvement ❑ Other Revised 03 /0B Page 1 of 6 Client Approved / lnilia!s) B. Site Folio Number: 00276920008 and 00276120002 C. Project Street Address& Suite Number: 3581 Mercantile Ave '.A pndaltemr No. 10D July 27, 2010 Page 25 of 38 D. Legal description: E. Owner /Developer Name: JL South Propei-ties LLC c/o Scott Dixon at Havnes Cor Phone: (239) 436 -1582 Email: sdixon(cuhavnescorp.com Fax: F. Architectural Firm: TBD Contact: Phone: Email: Fax: G. Engineering Firm: WilsonMiller Inc. Contact: John English, PE Phone: (239) 649 -4040 Email: JohnEnglishnwilsonrniller corn Fax: H. Contractor: imperial Homes of Southwest Florida Contact: Curtis Gunther Phone: Email: Curtis car imperiaihomesswfla Coln Fax: I. Other: (i.e. Attorney, Land Planner) TBD Contact: Phone: Email: Fax: #. BACMITOUND'CHECK I agree to allow the Economic Development Council of Collier County perform a Company and /or Personal Background Check. ❑ Yes ❑ No Rewscd 01 /08 ''''%%`` Palle 9 of 0 Chant Approved 4_"ilnitlalaj c� L' J it`'N'i �, I ,, ' P4bnda,ltehY No. 10D July 27, 2010 Page 26 of 38 l S of 6 1vldu ompleting this Attachment 3581 Mercantile Avenue Address Date (239) 436 -1582 Phone Number 6v -�S -bra Sign tore (Authorized Company Officer) Dale REQUIRED Laura Dixon, CEO Name and Tltle of Authorized Officer Revised 03 108 eya 3 DC (i Chant Approval / - (inlllal;) Attavhment A: Roles & General Responsibilities may vary from - -Meet all requirements of Fast Track Regulatory Process Program - -Site selection - -Hire contractors, consultants, engineers, architects -- Submit Development Order application within 60 business days of acceptance as a Fast Track project -- Attend pre - application meeting, if possible - -Attend scheduled meeting to discuss outstanding issues as needed. -- Attract and qualify businesses under the Fast Track program -- Contact the Special Projects Manager as soon as a company is qualified. -- Attend the pre - application meeting. -- Maintain consistent contact with Special Projects Manager to ensure timeframes are being met. -- Monthly review status of projects, particularly those with issues or potential issues -- Attend scheduled meeting to discuss outstanding Issues as needed. - -Copy all vested parties with correspondence. Revised 03!09 1a,9enda.1tenrNo. 10D July27, 2010 Page 27 of 38 onsibilities -- Attend pre - application meeting with sufficient plans for quality review -- Submit complete application that meets current LDC and other code requirements -- Submit updates after receiving rejection comments, within 20 business days -- Attend scheduled meeting to discuss outstanding issues as needed, Projects Manager • Provide guidance on permitted use of site. • Organize pre -app meeting • Lead project Team • Handle dispute resolution by involving appropriate decision makers • Shepard projects through the process from start to finish /manage project plan • Main point of contact for EDC, applicant and owner • Prepare monthly status reports /emphasis on exception or "red flag" items • Schedule hearings and external meetings, as required • Provide value -added services such as occasional site visits when under construction -- Develop project team • Attend pre - application meeting • Review submissions within stated number of business days • Attend scheduled meeting to discuss outstanding issues as needed. • Copy all vested parties with correspondence. Pape 4 of 6 Client Approved ZF_tlnilials) ,nuattem' No. 10D suly 27, 2010 Page 28 of 38 Attachment B": Potential Obstacles There are certain known issues that can lead to a less than smooth approval process, as listed below. At the pre - application meeting (or before then if applicable) the Special Projects Manager will complete this section relative to the facts as presented at that time. Items that may cause a delay Anticipated Dolay and related information Requires re- zoning: Site in existing PUD: Site contains wetlands: Site requires an Environmental Impact Statement: LDC amendment required: Permits from outside agency: Utilities issues: Other: Note: this list is not intended to be exhaustive of all items that may cause conflicts or delays in the approval process, but is to identify those most cornrnon and those most likely to significantly hold up the swift approval of the project. Project Notes (Special Projects Manager) Items the Developer or Applicant wishes to disclose concerning unusual requirements: Revlsed 03108 Pape 5 of o Cllenl Approved `] �„r! _(inAfais) Attachment C: Proposed Timeline (to be completed at pre - application meeting) r, agenda f teifj No. 1 OD July 27, 2010 Page 29 of 38 We, the undersigned, fully accept our roles and responsibilities in this project and have offered all information in good faith and in an attempt to be thorough We recognize that new information may be presented as the project moves through the review phases. We also recognize that until the review process begins it is not reasonable to identify every possible issue with a project. As any new material information is identified that may cause a change to this plan in any way, the Special Projects Manager is to be contacted to coordinate as needed. Owner /Developer Narne. Applicant Name: EDC Representative: Collier County Special Projects Manager Name: Date: Date: Date: Date: Revlsed 03109 �Paya 6 of ii Chant Approved �7 5 )(initials) Pre - application meeting Respontible Special Projects Manager .- .. Day 1 Submit complete SDP or PPL (within 60 days of FT acceptance) Applicant Day 30 First review -- SDP (7 business days) First review — PUD 15 business days Project team Day 45 First re- submittal — SDP or PUD [must address all comments ] (20 business days) Applicant Day 65 Second review — SDP or POD (7 business days) Prof Team A >I for building permits A licant First review — buildinq pennits (25 business clays) Project Team First re- submittal -- building permits (20 business -days) Applicant Second review — building permits 25 business clays) Project Team A Droval — SDP _ A royal — Building permits Anticipated CO date We, the undersigned, fully accept our roles and responsibilities in this project and have offered all information in good faith and in an attempt to be thorough We recognize that new information may be presented as the project moves through the review phases. We also recognize that until the review process begins it is not reasonable to identify every possible issue with a project. As any new material information is identified that may cause a change to this plan in any way, the Special Projects Manager is to be contacted to coordinate as needed. Owner /Developer Narne. Applicant Name: EDC Representative: Collier County Special Projects Manager Name: Date: Date: Date: Date: Revlsed 03109 �Paya 6 of ii Chant Approved �7 5 )(initials) ECONOMIC DEVELOPMENT COUNCIL OF COLLIER COUNTY 3050 Horseshoe Drive North, Suite 120 • Naples, FL 34104 Phone (239) 263 -8989 • Fax (239) 263 -6021 www.eNapiesFlorida.com MEMORANDUM To: Leo Ochs, County Manager From: Tammie Nemecek, President & CEO CC: Scott Dixon, Haynes Corporation Amy Patterson, Impact Fee /Economic Development Manager Brooke Garbrielsen, Business Relationship Manager Date: July 14, 2010 Re: Haynes Corporation Economic Impact and Request for Waiver Agenda Item No. 10D July 27, 2010 Page 30 of 38 ECONOMIC DEVELOPMENT COUNCIL o f colJrer County. PlorJda Growing Great Ideas Haynes Corporation is a manufacturing company that has operated in Collier County since 1989. They currently employ 45 people in their Collier County facility and another 20 employees in a facility located in Norwalk, California. Haynes Corporation would like to consolidate their company in one location, and they prefer Collier County, as long as financial and other incentives can be employed to reduce the cost associated with the transition. If Collier County is unable or unwilling to provide these incentives the company will likely relocate to Norwalk, California orJackson, Michigan. As you know, the focus of our economic development program is to assist businesses that generate revenue from outside Collier County and will retain or create primary jobs. Haynes Corporation generates approximately 95% of its revenues outside of Collier County, and will be creating primary jobs as it consolidates its operations in Collier County, meeting both important criteria for economic development. Of the 45 existing employees at the Collier County location, 93% reside in Collier County and Haynes Corporation will continue to make an effort to hire people who reside in Collier County or are willing to reside here, thus having a more dramatic impact on the money that circulates within our local economy. Haynes Corporation is a target industry company creating a minimum of 20 jobs, thereby meeting two of the criteria to participate in the Economic Stimulus Program. These new jobs will provide an opportunity for people who are presently out of work to begin a new career in manufacturing. The existing jobs and news jobs offer wages at $39,691 or 101% of Collier County's average wage. The benefits of keeping Haynes Corporation in Collier County and assisting in the relocation of their Norwalk facility to our community are enhanced by their economic impact, employment for Collier County citizens and further diversification of our economy. The enclosed Economic Impact Study further supports the retention and expansion assistance being requested by Haynes Corporation noting that "the projected overall employment loss if the firm consolidates at a location otherthan Collier County is 107 employees by September 30, 2013." In addition, millions will be lost in labor income and expenditures. The EDC respectfully requests that you review this information and support the request for a waiver for Haynes Corporation to participate in the Economic Stimulus Program and receive the financial assistance needed to complete their consolidation here. C:A Users\ Tammie .NemecekVDesklopUtaynes,Haynes Memo to County Manager 7- 14- 111.doc Agenda Item No. 10D July 27, 2010 Paae 31 of 38 A Collier County Economic Impact Study: Retention and Expansion of an Existing Manufacturing Company Prepared for E-W-BC ECONOMIC DEVELOPMENT COUNCIL (('Wli<r (,uunit. Florida Growing Great Ideas Dr. Gary Jackson Director, Regional Economic Research Institute Lutgert College of Business Florida Gulf Coast University July 9, 2010 Agenda Item No. 10D July 27, 2010 Page 32 of 38 Executive Summary A manufacturing company with a North American Industrial Classification (NAICS) code of 3336, engine, turbines, and power transmission equipment manufacturing, is planning to consolidate its operations at one of several sites including one in Collier county. If the consolidation takes place in Collier County, 45 positions will be retained and 20 new positions would be added over the next three years. If the consolidation takes place at one of other locations, Collier county would lose 45 existing positions over the next two years and not gain the 20 new positions. The company would make an investment of $350,000 in new construction and renovations and spend $1,500,000 for new manufacturing equipment to support expanded operations in Collier County. Operating Economic Impacts The value added economic impact of losing the firm along with its expanded operations in Collier County is forecast to be $8.4 million annually.' The present valuesz (measured in 2010 dollars) of the various economic impact measures of losing the firm for the four years 2010 -2014 are: Economic Measure >- Increase Value Added $25.6 million Labor Income $15.6 million Expenditures $94.2 million The projected overall employment loss if the firm consolidates at a location other than Collier County is 107 employees by September 30, 2013. This is the 2014 Value added that includes the expansion. Value added is the additional income created in Collier County plus indirect business taxes and is shown in 2014 dollars. 2The four -year present value is calculated using a discount rate based on the 30 -year National Municipal Bond Yields of 4.4 percent, www.bloomberg.com /markets /rates /index.htm1, as of July 9, 2010. 2 1Paye Agenda Item No. WD July 27, 20'10 Page 33 of 38 Description of Company The information for the study was provided to the Economic Development Council of Collier County which is not allowed to disclose the company's identity at this time. The Economic Development Council of Collier County is able to provide sufficient information to complete an economic study of the firm's impact on the Collier County economy. The North American Industry Classification System (NAICS) code for the company considering the consolidation is 3336, an engine, turbines, and power transmission equipment manufacturing company. If the company consolidates its operations in Collier County, it will retain 45 existing positions and will create 20 new jobs by the end of 2013. This would include the following assumptions for the economic model runs: • Retain a total of 20 full -time existing positions for the year October 1, 2010 to September 30, 2011; • Retain a total of 45 full -time existing positions (including the 20 that would have been lost in the previous year) for the year October 1, 2011 to September 30, 2012; • Company hires a total of 15 new full -time positions by September 30, 2011; • Company hires a total of 18 new full -time positions (including the 15 new positions hired the previous year) by September 30, 2012; and • Company hires 20 new full -time positions(including the 18 new positions hired over the previous two years) by September 30, 2013. If the company consolidates its operations to a location outside Collier County, the study assumes that 20 positions would be lost for the year beginning October 2010 and the remaining 25 positions would be lost the year beginning October 2011. It is assumed that the first 20 positions lost would be manufacturing /production workers earning $34,320 with estimated total compensation including benefits of $41,184 in 2010 dollars. The second year assumes that 13 additional manufacturing /production jobs would be lost along with 12 corporate positions. The corporate positions had annual wages of $63,413 and estimated total compensation including benefits of $79,266 in 2010 dollars. Although the economic analysis stops in 2014, the economic benefit to Collier County of not losing the firm and its 20 new positions and the retained 45 positions are expected to continue as long as firm continues to prosper and operate in Collier County. The average annual wage for each new position in 2010 is $34,320 and the average value of benefits associated with each new job is 20 percent of the average wage. This results in an average estimated total compensation of $41,184 per new employee in 2010 dollars. 31 Agenda Item No. 10D July 27, 2010 Page 34 of 38 In addition, the company will spend $350,000 between October 1, 2010, and September 30, 2011 for construction and renovations if the firm remains in Collier County. This will create additional expenditures in Collier County during the construction year. The company plans to spend approximately $1.5 million for new manufacturing equipment to support its expansion and consolidation. The study assumes that the equipment expenditures are from manufacturing companies outside Collier County and do not have any economic impact on Collier County. The analysis assumes that the manufacturing company employees live in Collier County. Study Results The economic impact model, IMPLAN, provides four measures of economic impact for Collier County. Expenditures is a measure of loss of expenditures resulting from the company consolidating its operations elsewhere and leaving Collier County. Employment represents the loss of employment in Collier County as a result of the loss of the company. Value Added represents the loss of labor income, proprietary income, other property income, and indirect business taxes created within Collier County. Labor income represents the lost wages, salaries, and benefits paid to workers in Collier County if the company leaves Collier County. The model accounts not only for the lost expenditures by the company (direct), but also indirect losses created by other firms which are suppliers of services and products to the existing (indirect) and the economic loss of expenditures by the existing and new employees (induced) for housing, food, and other goods and services. Economic Impacts of Continued Operations and Expansion The operating and expansion economic impacts are the result of the consolidation of the company's business operations in Collier County, including the retention of 45 existing positions at the firm and the expansion of the manufacturing operations by adding 20 new employees over a three -year period. The tables below show the economic impacts on Collier County by year and show the overall loss to the County the firm decides to consolidate its operations at another location The first year, October 2010 to September 2011, if the firm consolidates in Collier County, it will add the full -time equivalent of 7.5 new employees (15 new employees by year end) to its employment. In addition, the firm will retain 20 existing employees and renovate and expand its facilities, resulting in the hiring of 2 additional employees by a construction firm that completes the work. The 2011 Collier County economic losses for the first year are shown in Table 1 and show the potential loss in jobs and income. This would result in the loss of 20 existing positions plus 7.5 new full -time equivalent 4 1 P a y e enj7 , Ile ii No. 10D July 27. 2010 gage 35 of positions plus the two full -time equivalent construction employees that would renovate and expand the company's facilities. If the 30 direct employee positions are lost, this would result in additional lost employment in the County due to the loss of business -to- business activity and the loss of household income resulting in an overall reduction of 49 full -time equivalent positions in the first year and the loss in value added to Collier County of $3.4 million dollars. Labor income lost would be approximately $2.0 million. Table 1 Retention and Expansion Losses to Collier County October 1, 2010, to September 30, 2011 The overall economic loss to Collier County from the company leaving grows in the second year with the loss of the planned new jobs as shown in Table 2. Continuing operations at the manufacturing company will result in 45 retained jobs and the addition of 18 (16.5 full -time equivalent positions for the year) new positions by year end. The overall employment loss is 102 while the overall value added loss to Collier County is $7.7 million. Labor income loss is approximately $4.7 million. Table 2 Retention and Expansion Losses to Collier County October 1, 2011, to September 30, 2012 Employment Labor Income Value Added Expenditures Direct 30 $1,247,177 $2,025,279 $11,575,812 Indirect 12 $536,965 $875,888 $1,532,125 Induced 8 $246,121 $497,358 $797,332 Total 491 $2,030,263 $3,398,526 $13,905,269 The overall economic loss to Collier County from the company leaving grows in the second year with the loss of the planned new jobs as shown in Table 2. Continuing operations at the manufacturing company will result in 45 retained jobs and the addition of 18 (16.5 full -time equivalent positions for the year) new positions by year end. The overall employment loss is 102 while the overall value added loss to Collier County is $7.7 million. Labor income loss is approximately $4.7 million. Table 2 Retention and Expansion Losses to Collier County October 1, 2011, to September 30, 2012 5 1 z Labor Value Employment, Income Added Expenditures Direct 62 $3,049,594 $4,760,960 $22,674,4981 Indirect 24 $1,075,800 $1,763,865 $3,104,192 Induced 17 $570,727 $1,153,031 $1,847,023 Total 102 $4,696,121 $7,677,856 $27,625,713 5 1 z Agenda Item No. 10D July 27, 2010 Page 36 of 38 If the company consolidates its operations in Collier County, it will add another two -employees as part of the planned consolidation by the end of the third year as shown in Table 3. The overall employment loss for the third year is 106 Collier County jobs with an overall value added loss of $8.1 million per year and a labor income loss of $5.0 million. Table 3 Retention and Expansion Effects on Collier County October 1. 2012, to September 30, 2013 If the firm decides to leave Collier County, the overall economic loss of the existing employees and potential new hires for the fourth year is shown in Table 4. Sixty -five positions would be lost at the manufacturing company. The overall employment loss for Collier County would be 107 with value -added loss of $8.4 million and labor income loss of $5.1 million. Table 4 Retention and Expansion Effects on Collier County October 1, 2013, to September 30, 2014 Employment Labor Income Value Added Expenditures Direct 64 $3,217,128 $5,033,624 $24,184,030 Indirect 25 $1,145,628 $1,878,160 $3,304,381 Induced 17 $603,511 $1,219,274 $1,953,178 Total 106 $4,966,268 $8,131,058 $29,441,589 If the firm decides to leave Collier County, the overall economic loss of the existing employees and potential new hires for the fourth year is shown in Table 4. Sixty -five positions would be lost at the manufacturing company. The overall employment loss for Collier County would be 107 with value -added loss of $8.4 million and labor income loss of $5.1 million. Table 4 Retention and Expansion Effects on Collier County October 1, 2013, to September 30, 2014 The analysis was done for the four years that it would take the firm to expand its overall operations in Collier County should it decide to consolidate here. The economic losses of not retaining the manufacturing firm would be expected to continue past the fourth year. 6 1 P a g e Employment Labor Income Value Added Expenditures Direct 65 $3,323,366 $5,204,198 $25,085,988 Indirect 25 $1,187,661 $1,946,993 $3,425,114 Induced 17 $624,001 $1,260,673 $2,019,511 Total 107 $5,135,027 $8,411,864 $30,530,613 The analysis was done for the four years that it would take the firm to expand its overall operations in Collier County should it decide to consolidate here. The economic losses of not retaining the manufacturing firm would be expected to continue past the fourth year. 6 1 P a g e 4gsn�e Item No 10D July 27, 2010 Pege 37 of 38 Sales and Property Tax Impacts The model provides estimates of the lost sales and property tax as shown in Table 5. These are approximations based on historical information obtained in 2008 and there have not been any adjustments for 2009 or 2010 property value or millage rate changes. Table 5 Estimated Additional Taxes b y Year Year Sales tax Property Tax 10/01/10 to 9/30/11 $77,563 $60,701 10/01/11 to 9/30/12 $162,199 $126,947 10/01/12 to 9/30/13 $163,808 $128,206 10/01/13 to 9/30/14 $168,902 $132,192 The lost tax collection estimates provide part of the information necessary to complete a cost - benefit analysis. The loss of the firm and its employees will reduce the services needed from the county, which would be expected to reduce county costs. Summary This study has forecast the economic loss to Collier County if an existing manufacturing firm that is planning a consolidation and expansion moves outside the county. The analysis assumes that without the incentives, the firm would move to another location outside Collier County and result in the loss of 45 existing positions plus the loss of 20 new positions. The overall economic loss to Collier County by the fourth year for employment is 107 positions, $8.4 million in value added (primarily income including wages and salaries, rent, profit, and interest), and $5.1 million in labor income per year. The overall loss of expenditures per year for Collier County is estimated at approximately $30 million by the fourth year. 71 Agenda Item No. 10D July 27, 2010 Page 38 of 38 Appendix A IMPLAN Pro: An Economic Impact Analysis Model This study was completed using an established and accepted economic impact model, IMPLAN, that is currently in use by over a thousand licensed model users in the United States including universities, government agencies, and private companies. The model is based on an understanding of inter - industry relationships and the work of Wassily Leontief . He developed the concept of multipliers from input- output tables and received the Nobel Prize in 1973 for his work. 3 The model was originally developed for the United States Department of Agriculture and in the late 1980s was refined and enhanced with the assistance of the University of Minnesota. The model includes a mathematical input- output (1 -0) data set for Collier County that allows one.to forecast the losses of existing firm's expenditures and potential expansion on other Collier County businesses. The existing company and its employees will need various products and services leading to additional expenditures, jobs, value added, and labor income. The value added includes employee compensation, proprietary income, other property type income, and indirect business taxes. Indirect business taxes consist of excise taxes, property taxes, fees, licenses, and sales taxes paid by businesses. The additional demand for goods and services in Collier County as a result of retaining the manufacturing firm will lead to additional business -to- business activity and the additional household incomes will increase business activity for household goods and services. 3 "User's, Analysis, and Date Guide," IMPLAN Professional 2.0, Stillwater Minnesota, www.implan.com. 8 1Par