Agenda 10/26/2010 Item #16A10Agenda Item No. 16A10
October 26, 2010
Page 1 of 29
EXECUTIVE SUMMARY
Recommendation to approve the request by the Economic Development Council of Collier
County to provide a waiver of the minimum job creation requirement for a business locating in
western Collier County (creation of 20 full -time jobs) in order to allow ValueCentric, LLC to be
accepted into the Job Creation Investment Program and the Broadband Infrastructure
Investment Program for the creation of a regional headquarters office in Collier County (Fiscal
Impact: $48,750)
OBJECTIVE: That the Board of County Commissioners (Board) approves the request by the
Economic Development Council of Collier County (EDC) to provide a waiver of the minimum job
creation requirement for a business locating in western Collier County (creation of 20 full time jobs) in
order to allow ValueCentric, LLC to be accepted into the Job Creation Investment Program and the
Broadband Infrastructure Investment Program for the creation of a regional headquarters office in
Collier County.
CONSIDERATIONS: The Economic Incentive Programs, established by Collier County, are
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.
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 October 4, 2010, the Economic Development Council submitted a request, along with the
completed Incentive Program Application, to allow ValueCentric, LLC to participate in the Job
Creation Investment and Broadband Infrastructure Investment Programs. As described in the
information submitted by the EDC, ValueCentric, LLC, currently located in Orchard Park, New York
is the leading provider of on demand data management and performance analytics to the
pharmaceutical industry. The company is seeking to establish a presence in Florida with future
consideration to relocate the corporate headquarters to Collier County. The current corporate
headquarters in Orchard Park, New York currently employs 60 people. By way of this application, the
company initially proposes to create 15 jobs in Collier County over a three -year period at an average
Agenda Item No. 16A10
October 26, 2010
Page 2 of 29
wage of $62,000. The company will be leasing space in an existing building to accommodate this
business expansion.
Based on the business locating in western Collier County, the following are the criteria to participate in
the Job Creation Investment and Broadband Infrastructure Investment Program:
• 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)
ValueCentric, LLC meets the targeted industry and average wage requirements for the Job Creation
Investment and Broadband Infrastructure Investment Programs. However, the company does not meet
the minimum threshold for the creation of 20 new full -time jobs, as they are proposing to create 15
jobs.
Therefore, in order to participate in the requested Programs, a waiver of the job creation requirement
for western Collier County (20 new full -time jobs) is needed.
Because this company requires a waiver from Program requirements in order to participate, County
staff, the County Attorney, 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 company proposes to create 15 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.
• The maximum eligible amount of Broadband Infrastructure Investment Program funds
available to the company will be reduced from $25,000 to $18,750 based on the creation
of 15 jobs instead of the 20 otherwise required by the Program. ($25,000/20 = $1,250
per job; $1,250 per job x 15 jobs = $18,750). In the event that the company creates 20
jobs within the time period specified for job creation they would then be eligible for the
remaining $6,250 in Broadband incentive funds.
Additionally, consistent with the direction provided by the Board on July 27, 2010, staff has been
working, 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 economic instability, for future Board consideration. These
potential program changes will be helpful to companies, such as ValueCentric, LLC, that are
considering relocating to Collier County and are proposing to create jobs that pay at or above the
private- sector average wage. These changes will help to reduce the number of companies that require
waivers in order to participate in the incentive programs.
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.
Agenda Item No. 16A10
October 26, 2010
Page 3 of 29
FISCAL IMPACT: ValueCentric, LLC is seeking financial incentives in the total amount of $48,750.
The following is a breakdown of the amount per program and the estimated timing that incentive
payments may occur.
Job Creation Investment: The company is proposing to create 15 new jobs. As stated above,
the company will require a waiver from the job creation 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 15 jobs in place by September 30, 2013. Typically, once the
minimum threshold for the number of jobs to be created is met (15), job creation payments in
the amount of $2,000 per job will be paid over three years, beginning in the fiscal year
following the date the newly created jobs are verified to be in place. This approach has been
used to help ensure that companies meet at least the minimum threshold of job creation
required to participate in the program. As part of this request package, the schedule of
proposed payments corresponds directly to the job creation as it occurs in phases. The
following is a schedule, by fiscal year, displaying when the Job Creation payments would occur
(assuming that all jobs are created and validated) in accordance with this request:
Fiscal Year
Potential Amount of Job
Basis of Payment
Creation Payment
FY 2012
$4,000
First Payment Phase I — 6 jobs
FY 2013
$7,333
Second Payment Phase I — 6 jobs
First Payment Phase II — 5 jobs
FY 2014
$10,000
Third Payment Phase I — 6 jobs
Second Payment Phase II — 5 jobs
First Pa ent Phase III — 4 jobs
FY 2015
$6,001
Third Payment Phase II — 5 jobs
Second Payment Phase III — 4 jobs
FY 2015
$2,666
Third Payment Phase III — 4 jobs
Total
$30,000
15 jobs
Advanced Broadband Infrastructure Investment Program: As stated above, the applicant will
need a waiver to participate in this program; therefore the maximum eligible incentive award
will be $18,750. The incentive funds are paid in equal amounts over three years. Following
the installation of the system, the participating company may request the first of the authorized
incentive payments. The company must submit copies of the invoices detailing the cost of the
installation along with the requests. Additionally, the participating company must pay their
annual ad valorem property taxes to the County, in full, prior to a request for payment.
Reimbursements of qualifying costs paid by the County through the program may never exceed
the actual costs of the installation and/or required equipment. The funding for this program
does not provide payments or reimbursements for service costs.
In accordance with the company's request, payments are estimated to occur over the following
fiscal years:
FY 2012: $6,250
Agenda Item No. 16A10
October 26, 2010
Page 4 of 29
FY 2013: $6,250
FY 2014: $6,250
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 ValueCentric, LLC. Included
on this chart is the incentive request by Animal Specialty Hospital of Florida, LLC which is also on the
Board agenda for consideration.
Fiscal Year
2011
2012
2013
2014 -2020
Commitments —
$192,250
$110,007
$122,966
$ TBD
applicants with
approved/pending
agreements
Commitments-
N/A — budget
$59,753
$68,797
$276,245
applicants
covers only
approved but still
executed
require approved
agreements
and executed
agreements
ValueCentric,
$0
$10,250
$13,583
$24,917
request
Animal Specialty
$0
$14,666
$16,667
$24,667
Hospital request
TOTAL
$192,250
$1941676
$222,013
$325,829
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
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 2011 budget only provides 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 program compliance.
Agenda Item No. 16A10
October 26, 2010
Page 5 of 29
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: By Ordinance No. 2009 -22 the Board of County Commissioners
declared that a State of Local Economic Emergency exists within Collier County, finding, among other
things, a significant loss of jobs within the County. The applicant is seeking to participate in the
Broadband Infrastructure Investment Program, which in their proposed location authorizes an
appropriation up to a maximum of $25,000 provided, among other things, that the applicant creates a
"minimum of 20 new full -time employee positions." The applicant proposes to create an initial 15
new jobs, with the potential of many more should the move prove advantageous. It is the position of
the County Attorney that given the declared state of local economic emergency, that on a case -by -case
basis the Board may prorate the maximum award of $25,000 on a per- employee basis, especially
where, as in this case, the application may lead to a larger relocation. Aside from this issue, the item
is legally sufficient for Board action. -JAK
RECOMMENDATION: That the Board of County Commissioners approves the request by the
Economic Development Council of Collier County to provide a waiver of the minimum job creation
requirement for a business locating in western Collier County (creation of 20 full time jobs) in order to
allow ValueCentric, LLC to be accepted into the Job Creation Investment Program and the Broadband
Infrastructure Investment Program for the creation of a regional headquarters office in Collier County,
based on the overall economic benefits to be derived from the project and the company's commitment
related to the employment of Collier County residents.
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. 16A10
October 26, 2010
Page 6 of 29
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
Item Number:
16A10
Item Summary:
Recommendation to approve the request by
the Economic Development Council of Collier County to
provide a waiver of the minimum job creation requirement for a business locating in western Collier
County (creation of 20 full time jobs) in order to allow ValueCentric. LLC to be accepted into the Job
Creation Investment Program and the Broadband
Infrastructure Investment Program for the creation
of a regional headquarters office in Collier County. (Fiscal Impact: $48,750)
Meeting Date:
10/26/2010 9:00:00 AM
Prepared By
Amy Patterson
Manager - Impact Fees & EDC
Date
Community Development &
Environmental Services
Business Management & Budget Office
10/15/2010 10:11 :23 AM
Approved By
Nick Casalanguida
Director - Transportation Planning
Date
Transportation Division
Transportation Planning
1011512010 10:35 AM
Approved By
Judy Puig
Operations Analyst
Date
Community Development &
Community Development &
Environmental Services
Environmental Services
10115/2010 11:17 AM
Approved By
Norm E. Feder, AICP
Administrator - Transportation
Date
Transportation Division
Transportation Administration
10/1512010 2:45 PM
Approved By
David Jackson
Executive Director, CRA
Date
1011512010 3:07 PM
Approved By
Jeff Klatzkow
County Attorney
Date
1011812010 10:58 AM
Approved By
OMB Coordinator
Date
County Manager's Office
Office of Management & Budget
10/18/2010 12:51 PM
Approved By
Therese Stanley
Manager - Operations Support - Trans
Date
Office of Management &
Budget
Office of Management & Budget
10/1912010 9:07 AM
Approved By
Leo E. Ochs, Jr.
County Manager
Date
County Managers Office
County Managers Office
10/1912010 9:54 AM
ECONOMIC DEVELOPMENT COUNCIL OF COLLIER COUNTY
3050 Horseshoe Drive North, Suite 120 • Naples, FL 34104
Phone (239) 263 -8989 • Fax (239) 263 -6021
www.eNapiesFIorido.com
ValueCentric, LLC BUSINESS RELOCATION
Executive Summary for Economic Stimulus Program Application
September 22, 2010
Background
Agenda Item No. 16A10
ber 2 2010
LA:L;f 29
ECONOMIC
DEVELOPMENT
COUNCIL
of Collier County; Florida
Growing Great Ideas
ValueCentric, LLC. Currently located in Orchard Park, NY is the leading provider of on- demand
data management and performance analytics to the pharmaceutical industry. The company's
flagship product, ValueTrak, is a Unified Data and Services Platform that enables all participants
of the pharmaceutical supply chain to share, analyze and report critical supply chain data such
as sales, inventory, orders, chargeback's, returns and prescription information.
Over 200 pharmaceutical companies, including world -class enterprises such as AstraZeneca,
Johnson & Johnson, Merck, Teva Pharmaceuticals and others utilize ValueTrak on a daily basis
to track how products flow through distribution networks and out to patients.
Proposed regional office in Naples will be providing data collection, processing and analytics
support for pharmaceutical manufacturers engaged in Risk Evaluation and Mitigation Strategies
(REMS). REMS are recently issued FDA mandated enforceable guidelines for monitoring high
risk pharmaceutical products. The focus of the business unit will be tracking and reporting on
these REMS products to the manufacturers and FDA. This will include customer support with
regard to all aspects of the data services being provided by ValueCentric.
Please note that ValueCentric has successfully developed the framework and negotiated the
first REMS program under this mandate, which will be used as a model for other manufacturers
who must adhere to this mandate.
A separate location in Naples is desirable for this initiative due to the sensitive information that
will be maintained and supported by this business unit.
The new proposed location in Naples will employee at least 15 employees in the first 3 years,
however may increase to 20 or more over this initial three year period, the scalability is
dependent upon the FDA mandates and timing of adoption. The average wage of the new
positions created in Naples will be $62,000.
The establishment of this business unit in Collier County would be ValueCentric's initial step in
seriously considering relocating other functions to Florida, in the future which could include the
corporate headquarters which currently employs 60 people in New York.
Agenda Item No. 16A10
ber 26, 2010
ECONOMIC DEVELOPMENT COUNCIL OF COLLIER COUNTY f 29
3050 Horseshoe Drive North, Suite 120 • Naples, FL 34104 •/'
Phone (239) 263 -8989 • Fax X2391 263 -6021
www.eNapiesFIorida.com ECONOMIC
DEVELOPMENT
COUNCIL
of Collier Countq, Florida
Growing Great Ideas
ValueCentric has been in business for over 8 years and has a strong core business with a proven
track record, including remarkable revenue growth, exceeding on average over 40% per year
and an impressive stable customer base.
Because their headquarters are located in New York, a variety of programs are available to
them from the Empire State Development Corporation (ESDC) would like ValueCentric to
establish this business unit within their headquarters and create these jobs in WNY. ESDC has
two programs; the Excelsior Program and Economic Development Program (EDP) providing
incentives in terms of grants and tax credits. Both programs offer incentives relating to job
creation and capital investment, For the job component, the minimum job creation threshold
for their industry is 10 net new jobs, with the incentive being $5,000 per job maximum. The
value of the investment in tangible property is a tax credit of 2% of the cost basis for federal
income tax purposes or a grant, which can be up to 40% of the investment. Please note that the
current building in New York occupied by ValueCentric has approximately 7,000 square feet
available for build -out expansion, which could be used for this business unit.
ValueCentric would like to expand the new business unit in Naples, but their decision is
contingent on the following:
• Ability to quickly permit and lease a facility;
0 Financial incentives to defray the cost of upgrading new office technology required for
their software development, hiring and training skilled employees;
Economic Stimulus Program
ValueCentric 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.
ValueCentric is a Computer & Software Services company that services the Life Science industry
(pharmaceutical companies) and as such is included in the list of Targeted Industries for Collier
County. The new business unit average wage is $62,000 which is 157% of Collier County's
average wage; they would create a minimum of 15 new full time jobs. However the
requirement for Collier County is a minimum of 20 new jobs.
ECONOMIC DEVELOPMENT COUNCIL OF COLLIER COUNTY
3050 Horseshoe Drive North, Suite 120 • Naples, FL 34104
Phone (239) 263 -8989 . Fax (239) 263 -6021
www.eNapiesFiorida.com
Agenda Item No. 16A10
Qcto ber 26, 2010
1:43C f 29
ECONOMIC
DEVELOPMENT
COUNCIL
of Collier County, Florida
Growing Great Idea:
The average wage for Collier County is $39,285. The average wage for the new jobs for
ValueCentric is approximately $62,000 which is 157% of Collier 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:
• Computer & Software Services 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 (13.2%) exceeds the state average and the
non - seasonally adjusted average of the nation. Although 15 new jobs will not impact
the unemployment rate in a statistically significant way, it is an opportunity for 15
people to find high wage employment.
• Providing these incentives will create 15 target industry jobs at 157% of the average
wage. If the incentives are not approved there is a great chance that ValueCentric will
not consider Collier County and stay in New York.
• Providing these incentives will create an opportunity for $435,500. In capital investment
in our community.
• ValueCentric brings new money to Collier County by making 100% of their sales outside
our area.
Job Function
Number of
Average Wage
Employees
DataProcessing & Hosting
11
$70,000
(Data Analytics & Support)
New lobs
Centralized Administrative
4
$40,000
Office
Total New Jobs
1 15
1$62,000
The average wage for Collier County is $39,285. The average wage for the new jobs for
ValueCentric is approximately $62,000 which is 157% of Collier 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:
• Computer & Software Services 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 (13.2%) exceeds the state average and the
non - seasonally adjusted average of the nation. Although 15 new jobs will not impact
the unemployment rate in a statistically significant way, it is an opportunity for 15
people to find high wage employment.
• Providing these incentives will create 15 target industry jobs at 157% of the average
wage. If the incentives are not approved there is a great chance that ValueCentric will
not consider Collier County and stay in New York.
• Providing these incentives will create an opportunity for $435,500. In capital investment
in our community.
• ValueCentric brings new money to Collier County by making 100% of their sales outside
our area.
ECONOMIC DEVELOPMENT COUNCIL OF COLLIER COUNTY
3050 Horseshoe Drive North, Suite 120 • Naples, FL 34104
Phone (239) 263 -8989 • Fax (239) 263 -6021
Agenda Item No. 16A10
ber 212010
f 29
wwwxNaplesFlorida.com ECONOMIC
DEVELOPMENT
COUNCIL
q(Collier County, Florida
Growing Great Ideas
• While ValueCentric will employ 15 people at the conclusion of this project, the indirect
employment effect of ValueCentric relocation accounts for an estimated 13.6 additional
jobs in our community.
The total earnings impact (direct and indirect) from the ValueCentric relocation project
is $2,380,880. based on preliminary numbers.
• Anecdotally, they have expressed a desire and a possibility of relocating their corporate
office to Collier County sometime in the future.
Assuming that ValueCentric is granted a waiver from the BCC, the ESP will provide
opportunities to participate in the following programs: Job Creation Investment Program;
Broadband Infrastructure Investment Program
Incentive
Description
Amount
Job Creation Investment
Provides a performance based
$30,000
Program
program to mitigate the effects
of rising fees associated with
the costs of relocation and job
creation.
In Western Collier, without
QTI, a cash incentive of
$2,000 per job created will be
awarded.
Broadband Infrastructure
Intended to promote the
$25,000
Investment Program
installation and extension of
broadband infrastructure
Qualifying companies
buildings are designated
"Smart Buildings" with
advanced digital infrastructure
in Collier County. The
business will be able to deduct
system costs, up to a
maximum amount, from their
property taxes until approved
amount has been recovered.
Total: 1
1
$55,000
The EDC, therefore, recommends that the BCC grant a waiver for ValueCentric to participate in
the ESP program and approve the use of financial incentives, as outlined above, to induce
ValueCentric to locate and create 15 new high wage, high skilled jobs in Collier County.
Agenda Item No. 16A10
010
ECONOMIC DEVELOPMENT COUNCIL OF COLLIER COUNTY
f 29
t1ber
3050 Horseshoe Drive North, Suite 120 • Naples, FL 34104
Phone (239) 263 -8989 • Fax (239) 263 -6021
www.eNaplesFlorida.com
ECONOMIC
DEVELOPMENT
COUNCIL
of Collier County, Florida
Growing Great Ideas
The ESP will provide assistance with the two points of concern for ValueCentric as they decide
whether to locate this new business unit in Collier County or to continue to grow their business
in New York.
The EDC, therefore, recommends that the BCC grant a waiver for ValueCentric to participate in
the ESP program and approve the use of financial incentives, as outlined above, to induce
ValueCentric to locate and create 15 new high wage, high skilled jobs in Collier County.
;-R
11*S4
Agenda Item No. 16A10
October 26, 2010
Page 12 of 29
E,CONOMIC
D-EwLoPMENT
COUNCIL
nft-:WV&
omwing romar kkats
Economic Stimulus Program Recommendation Form
for
ValueCentric
Name of Business
1. Economic Stimulus Programs:
X Broadband Infrastructure Investment
❑
Fast Track Permitting
❑
Fee Payment Assistance
X
Job Creation
❑
Property Tax Stimulus
❑
Local Match for QTI
2. Collier County location:
X 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: ---0 Avg. Wage: $ 0
Number of new jobs resulting from project- 1 v Avg. Wage. $ 62,000
Total retained and new jobs: --15 Avg. Wage: $ 62,000
Economic Development Council of Collier County Recommendation
Prepared by: Beth Sterchi
(Print'yy pName)
7 '4•�j-� 1, -it .f
(Signature) Date
Approved: PAT)`; �' I' j
Tammi ce , resid t Date
Effective 43788 Page 2 of 2
Agenda Item No. 16A10
October 26, 2010
Page 13 of 29
FY FY
FY
FY
FY Total
<< 2012 2013
2014=
2015
2016
,fob Creation
Phase 1 $4,000 $4,400
$4,000
$:12,000
Phase Il $3,333
$3,333
$3,334
$110,000
Phase Ill
$21667
$2,667
$2,666 $8 000
Broadband $8,333 $8,333
$8,334
$251000
Total $12,333 $15,666
$18,394
$6,001
$2,666 $65,000
Economic Impact Multipliers:
NAICS Cade: 5182`10 & 551114
SIC Code:
Eamings Multipi er. 1.4232
Employment Multipfier: 1.9124
Economic Development Council of Collier County Recommendation
Prepared by: Beth Sterchi
(Print'yy pName)
7 '4•�j-� 1, -it .f
(Signature) Date
Approved: PAT)`; �' I' j
Tammi ce , resid t Date
Effective 43788 Page 2 of 2
Agenda Item No. 16A10
October 26, 2010
Page 14 of 29
GE` iERAL PROJECT
OVERVIEW
ValueCentric, LLC
Name of Business
Strategic Regulatory Initiatives
Project Title or Code Name (1-5 word description)
FOR ESC USE ONLY
9120/2010
Date Received Date Revised Date Completed
EDC Project Number
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-,
CowLEK."o
ECONOMIC
DEW,LOPMENT
COUNCIL
Flmida
Growing Great Ideas
3050 North Horseshoe Drive, Suite 120
Naples, FL 34104
Phone: 239-263-8989
Fax: 239-263-6021
www:eNaple.sFlotida.com
Effective 10/07 Page 1 of 9 Client Appmved (inibals)
Agenda Item No. 16A10
October 26, 2010
Page 15 of 29
GENERAL PROJECT OVERVIEW
1. BUSINESSINFORMATION
A. Name of Business Unit: ValueCentric
B. Mailing Address: 23 Cobharn Drive
Street-AddreSs
Orchard Park New York 14127
City State zip Code
C. Name of Parent Company: ValueCentric,LLC
D. Primary Business Unit Contact: David W. Janca
Title.: CEO & Founder
Mailing Address: 23 Cobham Drive
Street Address
Orchard Park New York 14127
City zip cods
Telephone: 716-972-1600
Email: clave.janca@valuecentric.com Website- ww.w.valuecentrio.com
E. Business Unit's Federal Employer Identification Number:
01-0709711
F. Business Unit's Unemployment Compensation Number:
G. Business Unit's Florida Sales Tax Registration Number:
H. Collier County Business Tax Receipt Number:
1. Is the business unit minority owned?
Yes ❑ No X If yes, explain:
2687961
N/A
N/A
J. What is the business unit's tax year (ex: Jan 1 to Dec 31): .Jan i.—Dec3i
12. PROJECT'OVERVIEW
A. Which of the following best describes this business unit-,
X New business unit to Florida
X New business unit to Collier County
❑ 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?
C. How many individuals are employed at all Collier County
locations?
D. Are any jobs being transferred frorn other Florida locations?
Yes ❑ No X If yes, how many jobs and from where?
0
N
Effective VV07 Pap 2 of 9 Client Apptoved SC47 (initials)
Agenda Item No. 16A10
October 26, 2010
Page 16 of 29
GENERAL PROJECT OVERVIEW
E. Give a full description of this Project, including the primary business activities
/ functions:
Proposed regional office will be providing data collection, processing and analytics
support for pharmaceutical manufacturers engaged in Risk Evaluation and
Mitigation Strategies (REMS). REMS are recently Iss ' ued FDA mandated
enforceable guidelines for monitoring high risk pharmaceutical products. The focus
of the business unit will be tracking and reporting on these REMS products to the
manufacturers and FDA. This will include customer support with regard to all
aspects of the data services being provided by ValueCentric. Note that
ValueCentric has successfully developed the framework and negotiated the first
REMS program under this mandate, which will be used as a model for other
manufacturers who must adhere to this mandate. A separate location is desirable
for this initiative due to the sensitive information that will be maintained and
supported by this business unit.
In addition, some general and administrative functions, including accounting are
being considered for this location.
F. What is the project's Targeted Industry(ies). Pharmaceutical Companies
G. Breakdown the proiact'-q nrimarvfitnr4if%n(el
Business Unit Activities
NAICS
Project I Annualized
Function
Code/SIC Code
wage($)
Naples Florida
34105
(Total= 100%)
Data Processing & Hosting and
What is the project's current location address (if different):
23 Cobham Drive
Related Services (Data Analytics
Orchard Park New York
14127
and - Support) -
518210
73%
$70,000
LCentralized Administrative office 1
551114
27%140,000
H. What is the project's proposed location address:
3530 Kraft Road, Suite 202
Street Address
Naples Florida
34105
City State
Zip Code
What is the project's current location address (if different):
23 Cobham Drive
Street Address
Orchard Park New York
14127
City State
Zip Code
Is the project location within a current or proposed Brownfield site / area?
Yes ❑ No X It Yes, attach A copy of the official document designating the Browhfield 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):
X Multi-state business enterprise
❑ Multinational business enterprise
❑ Florida business enterprise
Effective 10107 Page 3 of 9 Client Approved (initials)
Agenda Item No. 16A10
October 26, 2010
Page 17 of 29
GENERAL PROJECT OVERVIEW
K. Which of the following describes this business unit (select all that apply):
X 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 from
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)::
100% Explain, if necessary: This specific business unit will be managed and
operated out of the location where established.
All revenue generated is currently projected to be
with companies located outside of Collier County
and Florida.
3-JOB AND:WAGE OVERVIEW
A. How many jobs are expected to be created as part of this project? 15
B. If an existing business unit, how many jobs are expected to be
retained as part of this project? (jobs in jeopardy of leaving Collier
County should only be included here; these jobs are not eligible for QTI) N/A
C. What is the annualized average wage for existing Collier, County
employees indicated in 3b? NIA
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.) $62.000
E. What is the annualized average value of benefits associated with
each new job created as part of this projectl $9,000
F. What benefits are included in this value?,(health insurance, 401(k) contributions,
vacation and sick leave, etc.)
Includes health and dental insurance, 401(k) matching contributions, long and short term
disability, life insurance
Ellective 10ta-1 Page 4 & 9 Client Appraved SC--V- --wials)
Agenda Item No. 16A10
October 26, 2010
Page 18 of 29
GENERAL PROJECT OVERVIEW
I
4. CA PITA L INVESTMENT 0 VER VIE W
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 now building):
Majority of expense from a capital perspectivewli be furniture and fixtures and
technology infrastructure upgrading as the proposed location is an existing facility
and we will be leasing the space..
B. Will this facility be:
X
Leased space
❑
Land purchase and construction of a new building
❑
Purchase of existing building(s) with renovations
F-1
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 vearq)
D. What is the estimated square footage of the new or
expanded facility? 3,140square feet
E. When is the final location decision anticipated (date)? October 15, 2010
F. What is the anticipated date construction will begin? N/A
G. What is the anticipated date operations will commence? January 1, 2011
A. What role will the incentive(s) play in the business unit's decision to locate,
expand, or remain in Collier County?
Incentives will help assess cost advantages of locating to Collier County vs.
company's current location in Orchard Park, NY.
See comments in D. below.
Effective 1C]!(}7 Page 3 of 9 Client Approved —{initw.)
Year 1
Year 2
Year 3
Lease
$75,360
360
$78,500
$81,640
Construction / Renovations
$
$
$
Manufacturing Equipment
$
$ -
$
R&D Equipment
$
$
$
Other Equipment (computer
equipment, office furniture, etc.)
$100.,000 --.g0,000
$50,000
Total Capital Investment
$175,360
$128,500
$131.640
D. What is the estimated square footage of the new or
expanded facility? 3,140square feet
E. When is the final location decision anticipated (date)? October 15, 2010
F. What is the anticipated date construction will begin? N/A
G. What is the anticipated date operations will commence? January 1, 2011
A. What role will the incentive(s) play in the business unit's decision to locate,
expand, or remain in Collier County?
Incentives will help assess cost advantages of locating to Collier County vs.
company's current location in Orchard Park, NY.
See comments in D. below.
Effective 1C]!(}7 Page 3 of 9 Client Approved —{initw.)
Agenda Item No. 16A10
October 26, 2010
Page 19 of 29
GENERAL PROJECT OVERVIEW
S. What other cities, states, or countries are being considered for this project?
Orchard Park, New York (current corporate headquarters). The Empire State
Development Corporation (ESDC) would like us to establish this business unit Within
our headquarters and create the jobs in WNY. ESDC has two programs; the
Excelsior Program and Economic Development Program (EDP) providing incentives
in terms of grants or tax credits. Both programs offer incentives relating to job
creation and capital investments, for the job component., the minimum job creation
threshold for our industry is 10 net new jobs, with the maximum incentive . being
$5,000 per job. The value of the investment in tangible property is a4ax credit of 2%
of the cost basis for federal income tax purposes or a grant, which can be up to 40%
of the investment. The Excelsior program also offers a tax credit for Research and
Development equal to 10% of our federaltax credit.
Note that the current building occupied by ValueCentfic in New York has
approximately 7,000 square feet available for build-out expansion, which could be
used for this business unit.
C. What advantages or incentives offered by these locations do you consider
important in your decision?
Assistance in upgrading the technology infrastructure, Job creation and tangible
property incentives, including sales tax abatement.
D. Indicate any additional internal or external competitive issues impacting this
project's location decision?
Company is considering relocating corporate headquarters to Naples, Florida and
this project would be the first step in creating a presence in Florida. The timing of
this consideration is being driven by the need to establish a separate business unit
and the business climate in New York vs, Florida,
The preference for Collier County over other locations in Florida includes the
business owner having a residence in Collier County. Owner's Permanent residence
is currently in Orchard Park, New York.
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
ValueCentric is considering relocating one individual to oversee the business unit
from our Orchard Park location. The expectation is that the remainder of:the
positions will be filled by qualified applicants from the local market at an average
annual salary of $62,000 per year, which exceeds Collier County's average wage.
Stfective I Q107 Page 6 of 9 Client Approved _� (inifiais)
Agenda Item No. 16A10
October 26, 2010
Page 20 of 29
GENERAL PROJECT OVERVIEW
While our current forecast is 15 people, our employment needs may increase to 20
or more over the initial three year period. The scalability of our needs is dependent
upon the FDA mandates and timing of adoption. The indiVidua►s to be hired will
include managers and staff, who will be college, educated possessing strong
analytical, technical and communication skills due to the extensive customer
interaction with manufacturers and FDA representatives.
ValueCentric also holds a three day user conference annually, which includes over
100 participants from pharmaceutical manufacturers throughout the United States.
Serious consideration would be given to holding a future user conference in Collier
County. Through this event, an estimated $200,000 of additional of investment will
be invested into Collier County.
B. 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.
Annual sales meetings and advisory board meetings have taken place in Florida as
well as Tennessee, Nevada, New York in recent years.
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.
NIA
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.
We are a high tech internet based software company that services the
pharmaceutical industry. It is our understanding that our company falls within a
couple of the targeted industries for Collier County that will provide jobs for tile
future economy.
The establishment of this business unit in Collier County would be ValueCentric's
initial step in seriously considering relocating other functions to Florida, which could
include the corporate headquarters. We are requesting a waiver for the job creation
incentive, as our initial business plan for the business unit will not require 20
employees over a three year period and our the proposed leased space would not
accommodate more than 15 employees.
ValueCentric has been in business for over 8 years and has a Strong core business
with a proven track record, including remarkable revenue growth, exceeding on
Effective 10107 Page 7 of '9 Client Approved iinitiats)
Agenda Item No. 16A10
October 26, 2010
Page 21 of 29
GENERAL PROJECT OVERVIEW
average over 40% per year and an impressive stable customer base.
Note that some of our rationale for the proposed location includes available
additional space that would allow ValueGentricto expand-beyond our initial plans.
Z CONFIDENTIALITY
A- You may request that your project information {including information
contained in this.applicaflon) be confidential perF.S. 288476, 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 shoet(s)***
Effective 10107 Page 8 of 9 Client Approved (irritials)
Agenda Item No. 16A10
October 26, 2010
Page 22 of 29
GENERAL PROJECT OVERVIEW
Application Completed By: To the best of my knowledge, the
information included in this
application is accurate.
Signature Signature (Author! , ompany officer)
REQUIRED
Scott C. Terhaar David W, Janca
Name Name
Controller CEO & Founder
Title Title
ValueCentric,LLC ValueCentfic,LLC
Company Company
Address, if different than mailing address
716-972-1600
Phone Number
716-972-1509
Fax Number
Address. if different than mailing address
716-972-1600
Phone Number
716-972-1509
Fax Number
,%Cott,terhaar@valuecentric.com dave janca 0valuecentric.corn
Email Address Email.Address
September 13, 2010 Se tember 13, 2010
Date Date
Name of conlactperson, if different than -above
Phone Number
Address
Email Address
Eflective 10,107 Page 'j of 9 Client Approved S!; � (initials)
Agenda Item No. 16A10
October 26, 2010
Page 23 of 29
Economic Stimulus Program
Attachment to the General Project Overview
Val, ueCentric, LLC
Name of Business
Must be a separate business unFt or reporting wit *fa-husiness unFt that is or Wil be registered with the State of Florida for
unemployment;compensation purposes.
IMPORTANT NOTE: This application must be filed and the incentive,approved prior to making the
decision to expand an existing iColiier County business unit or to locate a new business unit in
Collier County.
Phase
Number of net new full -time equivalent Collier ' Date by which jobs will
County jobs created in the business .unit be created
6
9/30/2011
1 II
5
9130/2.012
I11
4
9/30/2013
Total
1.5
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:
$62.000, which is at least 157% of the average wage in Collier County.
B. Collier County Business Tax Receipt Number: Not yet applicable
C. How many jobs are currently employed at all Collier County locations? 0
D. What is the annualized average wage (excluding benefits) of the employees indicated in
1c.? $0
2. LOCAL a a L SUPPO
A. Identify the local government(s) anticipated to provide local financial support:
We would like to participate in the Collier County Economic Stimulus Program in the
following: Broadband Infrastructure Program and the Job - Creation Program These
incentives will be key in our decision,makinq,onlocatina in Nar)les.
B. indicate the date(s) the approval is /are anticipated to be passed by the local
government. October 26, 2010
C. Has the applicant ever participated in an ;EDC- assisted Pr2g„ram? 11 'yes X No
If Yes, how many new and retained jobs were included in that project?
Reviseei 03'08
Page t of 7
Client ApprovedT {init8lsj
Agenda Item No. 16A10
October 26, 2010
Page 24 of 29
A. Type of Project (check all that apply): E:1 Rezone ❑Plat --EISDP ❑EWding Permit
X Tenant Improvement X Other Leased facility —technolog y infrastructure office furniture and fixtures
B. Site Folio Number:
C. Project Street Address& Suite Number. 3530 Kraft RoadSuite2,02. Navies R
D. Legal description:
E. Owner/Developer Name:
Phone:
Email:
Fax:
F. Architectural Firm:
Contact.
Phone:
Email:
Fax:
G. Engineering Firm:
Contact:
Phone:
Email:
Fax:
H. Contractor:
Contact:
Phone:
Email:
Fax:
1. Other: (i.e. Attorney, Land Planner) Property Manager (Kraft Office Center)
Contact: Frank Delgado, Vice President
Phone: (239)434 -6222
Email: fdeloado@summit-mamt.net
Fax: (239)4346367
14—BACKGROUND CHECK
I agree Wallow the Economic Development Council of Collier County perform a
Company and/or Personal Background Check. X Yes ❑ No
Revised 03/08
Page 2 of 7
Client Approved -�✓``_(initials)
Agenda Item No. 16A10
October 26, 2010
Page 25 of 29
-5. SIGNATURES
C-- • . - -- September
Signature of Individual Completing this Date
Attachment
23 Cobham Drive, Orchard Park, NY 14127 (71-6)972-1634
Address Phone Number
Septernber 20 , -2010
Signature (Authorized Company Officer) Date
REGIRRED ( �7 -
David W. Janca, 0 0 & Founder
Name and Title of Authorized Officer
Revised 03M Page 3 of 7
Client Approved _-5'(inhlaLtt)
Agenda Item No. 16A10
October 26, 2010
Page 26 of 29
Attachment A.- Roles& Responsibilities
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
--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 03/08
to
—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.
.ssign Special 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/man4ge
project plan
• Main point of contact for EDC,
applicant and owner
• Prepare monthly status
reports/emphasis an exception or
"red flag" items
• Schedule hearings and external
meetings, as required
• Provide value-added services such
as occasional site visits when under
construction
Clienl Appmad
Pape 4 of 7
Agenda Item No. 16A10
October 26, 2010
Page 27 of 29
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 7wit3
correspondence.
Anachment B:
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 Delay 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 common and those most likely
to significantly hold up the swift approval of the project.
Proiect Notes (Special Projects Manager}
Revised 0308 Page 5 of 7
Client Approved
Agenda Item No. 16A10
October 26, 2010
Page 28 of 29
Items the Developer or Applicant wishes to disclose concerning unusual
requirements:
Attachment C: Proposed Timeline
(to be completed at pre- application meeting)
Task
Pre - application meeting
Responsible
Special Projects
Manager
Target date
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 PUD (7 business days)
Proiect Team
Apply for building permits
Applicant
First review — building permits 25 business days)
Project Team
First re- submittal -- building permits (20 business
days)
Applicant
Second review — building permits (25 business-days)
Pro ect Team
Approval — SDP
A roval — Building emits
Antici ated 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 groves 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 Name: Date:
Applicant Name:
EDC Representative:
Collier County Special Projects
Revised 03M
Date:
Date:
Page 6 of 7
Client Approved S +' _Jinitiaisi
Agenda Item No. 16A10
October 26, 2010
Page 29 of 29
Manager Name; Date:
Revised W08 Pace 7 of 7
Client Approved _ _(iti�fiafsl