Agenda 12/11/2018 Item #11B12/11/2018
EXECUTIVE SUMMARY
Recommendation to accept a report regarding Collier County’s Economic Development Program.
OBJECTIVE: To update the Board regarding the current economic development program.
CONSIDERATIONS: On September 25, 2018, the Board approved three public-private partnership
contracts for Fiscal Year 2019 with our economic development partners - the Partnership for Collier’s
Economic Future, the Southwest Florida Economic Development Alliance, and Economic Incubators, Inc.
That discussion invoked questions regarding the County’s economic development program, and the Board
asked that staff bring back a holistic report on the program.
Established in 2013, the Office of Business and Economic Development (OBED) has worked toward
achieving the goals and objectives set out by the Board of County Commissioners and County Manager
upon its inception. Collier County’s approach to economic diversification seeks to leverage public-private
partnerships with specialized missions for new business attraction, retention of valued existing businesses
and acceleration of new local business startups and direct foreign investment.
The top three priorities of Collier County’s economic development programs are: business retention and
expansion, business attraction, and entrepreneurship through incubation and acceleration. In addition to
its focus on improving the local business climate, the OBED accomplishes its priorities through active
management and supervision of a financial incentives program and the three previously referenced
public-private partnerships.
An enclosed report provides a detailed account of the Collier County economic development program.
FISCAL IMPACT: The FY 19 budget for the Collier County economic development program is
$2,063,500. The program's budget is further divided into OBED operations $608,100, financial
incentives $580,400, and partnership contracts $875,000.
GROWTH MANAGEMENT IMPACT: There is no growth management impact associated with this
report.
LEGAL CONSIDERATIONS: This item has been reviewed by the Country Attorney, raises no legal
issue, and requires majority vote for acceptance. -JAK
RECOMMENDATION: To accept the report regarding Collier County’s economic development
program.
Prepared by: Sean Callahan, Executive Director, Corporate Business Operations
ATTACHMENT(S)
1. OBED 2018 Annual Report (final) (PDF)
11.B
Packet Pg. 586
12/11/2018
COLLIER COUNTY
Board of County Commissioners
Item Number: 11.B
Doc ID: 7480
Item Summary: ***This item to be heard at 1:30 p.m.*** Recommendation to accept a report
regarding Collier County’s Economic Development Program. (Sean Callahan, Executive Director,
Corporate Business Operations)
Meeting Date: 12/11/2018
Prepared by:
Title: – County Manager's Office
Name: Sean Callahan
12/04/2018 2:35 PM
Submitted by:
Title: County Manager – County Manager's Office
Name: Leo E. Ochs
12/04/2018 2:35 PM
Approved By:
Review:
Business and Economic Development Leo E. Ochs Additional Reviewer Skipped 12/04/2018 12:44 PM
County Manager's Office Sean Callahan Additional Reviewer Completed 12/04/2018 2:36 PM
Office of Management and Budget Leo E. Ochs Level 3 OMB Gatekeeper Review Skipped 12/04/2018 12:44 PM
County Attorney's Office Leo E. Ochs CAO Preview Skipped 12/04/2018 12:44 PM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 12/04/2018 2:42 PM
County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 12/05/2018 8:45 AM
Board of County Commissioners MaryJo Brock Meeting Pending 12/11/2018 9:00 AM
11.B
Packet Pg. 587
1
INNOVATION IN
PARADISE
2018 Annual Report
Office of Business
& Economic Development
2660 Horseshoe Dr. N, #105
Naples, FL 34104
(239) 252-8990
11.B.1
Packet Pg. 588 Attachment: OBED 2018 Annual Report (final) (7480 : Economic Development Programs Report)
www.colliercountyfl.gov/obed
2
Introduction
Collier County’s approach to economic diversification seeks to leverage public -private
partnerships with specialized missions for new business attraction, retention of valued
existing businesses and acceleration of new local business startups and direct foreign
investment. Established in 2013, the Office of Business and Economic Development
(OBED) has worked toward achieving the goals and objectives set out by the Board of
County Commissioners (BCC) and County Manager upon its inception.
The following annual report describes Collier County’s economic development programs.
The top three priorities of these programs are: business retention and expansion, business
attraction, and entrepreneurship through incubation and acceleratio n. In addition to
internal division programs, OBED accomplishes its priorities through active management
and supervision of a financial incentives program and three public-private partnerships
— Economic Incubators Inc., Southwest Florida Economic Develop ment Alliance, Inc.
and the Partnership for Collier’s Economic Future, Inc.
The report provides an analysis and description of the programs OBED has used to
achieve its goals, including providing regulatory assistance, financial incentives, a
certified sites program, business recruitment and retention programs, and its business
accelerator project.
Finally, the report will provide future plans that outline the outcomes and new programs
that OBED hopes to achieve and execute over the course of FY 2019, including desired
economic indicators that the Office will use to define success.
11.B.1
Packet Pg. 589 Attachment: OBED 2018 Annual Report (final) (7480 : Economic Development Programs Report)
www.colliercountyfl.gov/obed
3
Table of Contents
I. Introduction 2
II. Table of Contents 3
III. Mission Statement 4
IV. Outcomes/Economic Climate 5
a. SWOT Analysis
b. Economic Indicators
V. Structure 10
a. Internal Team
b. Partnership for Collier’s Future Economy
c. Southwest Florida Economic Development Alliance
d. Roles & Responsibilities
e. Accelerator Project
f. State Partnership
VI. Tools 17
a. Incentives
b. New Market Tax Credits
c. Opportunity Zones
d. Innovation Zones
e. Free Trade Zone
f. Regulatory Reform and Permitting
VII. Future Projects and Goals 25
a. Annual Report
b. Certified Sites Program
c. Collier County/SWFL Economic Scorecard
d. Targeted Industry Study
11.B.1
Packet Pg. 590 Attachment: OBED 2018 Annual Report (final) (7480 : Economic Development Programs Report)
www.colliercountyfl.gov/obed
4
Mission Statement
Implement a successful program of economic policies, strategies, and incentive programs
that institutionalize a business-friendly environment through delivery of world -class
customer service.
11.B.1
Packet Pg. 591 Attachment: OBED 2018 Annual Report (final) (7480 : Economic Development Programs Report)
www.colliercountyfl.gov/obed
5
Economic Climate & Outcomes
Southwest Florida and Collier County continue to show signs of robust growth.
In FY 2018, Business & Economic Development continued to promote diversification
and economic growth, resulting in our unemployment rate dropping to 3.1 percent in
October 2018, from 4.1 percent a year earlier. Our strong economy ranked 18th1 this year
on The Milken Institute's index of "Best-Performing Cities" in the nation, and our taxable
sales experienced a 5 percent year-over-year growth to $772 million in March 2018.
Collier County is witnessing strong growth in targeted industries. In 2017, Collier
County-based companies won 296 U.S. Department of Defense contracts totaling $45
million. Since 2000, 115 companies have won 4,063 contracts worth over $283 million 2.
Even with these successes, the economy is still heavily dependent on three legacy
industries: agriculture, construction, and tourism. With steady population growth
expected through the next three decades, occupations gaining the most new jobs in Collier
County are concentrated around unskilled, low-wage jobs, according to the Florida
Department of Economic Opportunity.
With a concentration of jobs in these industries, Collier County is more susceptible to
economic downturn – based on employment data. In positive economic times, Collier
County does far better than the national and State average, though in negative climates
the County does far worse.
1 Naples Daily News. “Naples ranks again as a ‘best-performing city.’ January 10, 2018.
2 Government Contracts Won. Defense Contractor Search. Retrieved here December 3, 2018
11.B.1
Packet Pg. 592 Attachment: OBED 2018 Annual Report (final) (7480 : Economic Development Programs Report)
www.colliercountyfl.gov/obed
6
The largest sector in Collier County, Florida is Retail Trade, employing 22,322 workers.
The next-largest sectors in the region are Accommodation and Food Services (21,111)
and Health Care and Social Assistance (20,408).
DEO data3 shows that occupations anticipated to gain the most new jobs from 2017 –
2025 are:
1. Retail Salespersons
2. Landscaping and Grounds Keeping Workers
3. Registered Nurses
4. Construction Laborers
5. Food Service Workers
Since the inception of OBED in 2013, the Collier County BCC has created incentive
programs and invested $9,610,038 in economic development during this time. The
outcomes of this investment will be discussed further in this plan.
Currently, the BCC has allocated $2,063,500 to its Fiscal Year 2019 eco nomic
development budget, which is allotted to the following operations4:
Program FY 19 Total
Office of Business & Economic Development $604,000
Partnership Contracts $275,000
Accelerator Project $600,000
Other Expense $4,100
Economic Development Incentives $580,400
Total $2,063,500
Note: $2,063,500 represents 0.0017% of the FY 19 Collier County budget.
3 Florida Department of Economic Opportunity (2017). Labor Market Information, Employment Projections. Retrieved from:
http://www.floridajobs.org/labor-market-information/data-center/statistical-programs/employment-projections
4 Collier County Fiscal Year 2019 Budget. Retrieved from: https://www.colliercountyfl.gov/home/showdocument?id=82946
11.B.1
Packet Pg. 593 Attachment: OBED 2018 Annual Report (final) (7480 : Economic Development Programs Report)
www.colliercountyfl.gov/obed
7
Staff has reviewed multiple studies and sources of data citing the need for economic
diversification in support of the OBED. Through this data, incentive programs and
funding available through the State of Florida and BCC programs, OBED and its partners
will continue their focus on business retention and expansion, business attraction, and
entrepreneurship to do so.
11.B.1
Packet Pg. 594 Attachment: OBED 2018 Annual Report (final) (7480 : Economic Development Programs Report)
www.colliercountyfl.gov/obed
8
SWOT Analysis
The following diagram describes the main Strengths, Weaknesses, Opportunities and
Threats related to Collier County’s economy. This represents a combination of the
responses from stakeholder interviews, current economic data, and previous economic
studies on the County:
Based on this SWOT analysis, OBED will continue to pursue strategies and leverage
programs based on the strengths and opportunities outlined in this chart. Though
perspectives on the development of Collier County differ, an important gauge of the
OBED’s general effectiveness will be the level of community support garnered. OBED
strives to receive a high degree of community support by actively engaging a wide array
of community stakeholders by being present at a variety of events and meetings.
11.B.1
Packet Pg. 595 Attachment: OBED 2018 Annual Report (final) (7480 : Economic Development Programs Report)
www.colliercountyfl.gov/obed
9
Economic Indicators
OBED quantifies inputs and measures its success based on several outcomes based on
quantifiable data which is tracked for performance assessment. These metrics were
originally conceived in the FY 14 business plan that was approved by the BCC to estab lish
OBED. The metrics have been revisited and evaluated for future use.
Long term strategic metrics will focus on employment growth, net earnings growth, gross
county productivity growth rate, unemployment rate, average wages and growth in sales
tax and ad valorem revenue.
Operational work inputs and outputs include the numbers of contacts, actively managed
projects, number & percentage of prospects making a commitment, average wage and job
numbers of prospects committed and the percentage of total coun ty job growth attributed
to economic development activity.
5 Similarly populated counties include Waukesha (Wisconsin), Loudoun (Virginia), St Charles (Missouri), Paluski (Arkansas), Allen
(Indiana), Davis (Utah). Retrieved from here October 2, 2018
6 Bureau of Labor Statistics. QCEW State and County Map. Retrieved from: here October 1, 2018
7 Bureau of Economic Analysis. Local Area Personal Income. Retrieved from: here November 16, 2018
8 Bureau of Economic Analysis. GDP by Metropolitan Area. Retrieved from: here October 1, 2018
9 YCharts. Florida Unemployment Rate. Retrieved from: here October 3, 2018
10 The Florida Economic Scorecard. Collier County Metrics. Retrieved from: here and Bureau of Labor Statistics. Local Area
Unemployment Statistics. Retrieved from: here November 16, 2018.
11 See footnote 5.
12 The Florida Economic Scorecard. Collier County Metrics. Retrieved from: here October 1, 2018
13 Data USA. Collier County, FL Profile. Retrieved from: here October 2, 2018
14 Regional Economic Research Institute, Industry Diversification Report. Retrieved from: here November 16, 2018.
15 Source: OBED Incentives Masterlist (Arthrex, Ferris, Haynes, Position Logic, ACI. Five Star Gourmet, Anchor, First Bank. TMI)
16 Collier Clerk Internal Audit, Published Reports. Retrieved from: here October 4, 2018 and DEO Report of SL007
Indicator FY 2014 Target Collier 2018 FY 2019 Targets
Year over year employment growth Highest among similarly
populated counties5
1.8%6 (2018) Highest among similarly
populated counties
Net Earnings growth rate 5% > state average 2.5% (2017)7 Meet or exceed state average
Gross County Product growth rate 5% > state average 1.2% (2017)8 2 points > state average
Unemployment Rate 1 point < state average (FL =
6.5%)9
3.1%10 1 point < state average
Gains in Average Wages 3-5% 6.2%11 (Q1) 3%
Average Annual Sales Tax Growth 5-10% 13% (2017)12 3%
Property Value Growth 3% > state average gr. (FL
gr. = 9.7) target 12.7%
13.4% (2016)13 2.5% (2018) 3 points > state average gr.
Industry Diversification n/a 3rd in FL14 Top tier in FL
Number of actively managed
projects
20 1715 20
Percentage of prospects making a
commitment
35% 29.4% 30%
Committed Jobs 5% growth > baseline (base=
2013)
119516 (2018) 5% growth
11.B.1
Packet Pg. 596 Attachment: OBED 2018 Annual Report (final) (7480 : Economic Development Programs Report)
www.colliercountyfl.gov/obed
10
Structure
An important aspect of any successful economic development approach lies in the
organizational structures developed to facilitate implementation. This section will
highlight the institutional structures being developed to implement a comprehensive
Collier County economic development approach.
Internal Team
The Collier County Office of Business and Economic Development was given the task of
improving Collier County’s competitiveness and business climate through a combination
of business attraction, retention, expansion, and other economic dev elopment services.
Since the OBED’s creation, staff has worked to build institutional capacity by completing
internal staffing needs. OBED directly reports to the County Manager’s Office, and staff
is composed of a Director, Financial and Operational Suppo rt Manager, Economic
Research Analysts, Accountant, and an Operations Coordinator.
Director (130)
Jace Kentner
Manager (125)
Vacant
Accountant
(118)
Phyllis Kraft-Hendrick
Operations
Coordinator
(114)
Jennifer Leslie
Economic
Research
Analyst (118)
Lincoln Price
11.B.1
Packet Pg. 597 Attachment: OBED 2018 Annual Report (final) (7480 : Economic Development Programs Report)
www.colliercountyfl.gov/obed
11
Roles & Responsibilities
The following table outlines the roles and responsibilities of each of the positions in
OBED:
Position Roles & Functions
Director
Provides direction and oversight of Office and implements BCC & County
Manager’s long-range planning and direction of economic development.
Represents County to local businesses, community groups, and general public.
Works across County departments to coordinate economic development activities.
Manager – Financial &
Operational Support Directs the financial and operations staff to ensure all financially related
transactions are accurate and processed in a timely manner.
Economic Research
Analyst Performs research, data collection, and economic statistical and demographic
analysis.
Accountant Receives, and processes financial documents for assigned accounting functions
(i.e. purchase order requisitions, invoices, etc.); reviews documents; ensures
accuracy.
Operations Coordinator
Performs a variety of administrative duties including preparing/processing budget,
purchasing, payroll, and accounting documents; Reviews documents and
summaries; Performs data entry; Maintains records and files; Provides assistance
and information to internal and external callers and visitors
11.B.1
Packet Pg. 598 Attachment: OBED 2018 Annual Report (final) (7480 : Economic Development Programs Report)
www.colliercountyfl.gov/obed
12
Partnerships
OBED maintains successful public-private partnerships focusing on business retention,
expansion, attraction and entrepreneurship . A clear separation of roles and functions
between the partnership entities serves to reconcile public needs with business interests
in the promotion of Collier County’s future prosperity, allowing the public sector and
private sector to serve roles best suited to their unique attributes.
Partnership for Collier’s Future Economy
OBED created the Partnership for Collier’s Future Economy (Partnership) with the
Greater Chamber of Commerce to facilitate the creation of a private, non-profit
partnership organization with a structural design guided by a division of l abor.
The effort and cost sharing of this partnership resulted in the production of the
“Opportunity Naples Strategy,” which was accepted by the Board in November 2014. The
specific initiatives and action plans produced as part of the Opportunity Naples Strategy
planning effort continue to form the basis of the Partnership.
In today’s economic climate, Collier County must be mindful of retaining solid
performing companies and their quality jobs in the community. Through its annual
contract, the BCC provides funding that includes a dedicated position at the Greater
Naples Chamber of Commerce to focus on business retention and expansion. This has
resulted in 153 retention visits since the program started. The contract deliverables also
include the maintenance of a website for the Collier EDO, as well as required attendance
and direction of meetings.
The Vice President, Economic Development at the Chamber of Commerce maintains a
close relationship with the Collier County OBED, which results in regular repor ting about
ongoing operations and business activity in the area. Serving as the point of contact for
Enterprise Florida and Florida Power & Light Incentives programs, the Partnership acts
a catalyst to successfully recruit economic development projects to Collier County
Activities include focused research, targeted business visitation aimed at identifying
strengths and needs of existing businesses, and other services with the goal in mind of
protecting and promoting Collier-based businesses.
11.B.1
Packet Pg. 599 Attachment: OBED 2018 Annual Report (final) (7480 : Economic Development Programs Report)
www.colliercountyfl.gov/obed
13
Upon learning of a potential economic development project, the VP, Economic
Development passes this information along to OBED. OBED then coordinates across the
agency to construct a package of existing authorities and tools for presentation to the
Board of County Commissioners. Once approved, OBED coordinates delivery of the
financial incentive and oversees the administration of the project.
Southwest Florida Economic Development Alliance
In addition to efforts to build a local partnership focused on Collier County’s economic
development, OBED has a regionally-focused economic development partnership
centered on promoting Southwest Florida as a premier region for economic development
with the Southwest Florida Economic Development Alliance (Alliance). The Alliance
helps companies expand and grow in Southwest Florida, assisting with site location,
incentives, talent attraction, process navigation, and regional data.
11.B.1
Packet Pg. 600 Attachment: OBED 2018 Annual Report (final) (7480 : Economic Development Programs Report)
www.colliercountyfl.gov/obed
14
This regional partnership works cooperatively with the five Southwest Florida counties,
as well as Florida Gulf Coast University, other regional educational institutions, and other
private, non-profit organizations. In addition to promoting the Southwest Florida brand,
the Alliance serves as a key resource for data and information in promotion of the region
and its communities.
Since its inception in 2015, the County’s partnership with the Southwest Florida
Economic Development Alliance proved fruitful, with the Alliance representing the
County and Southwest Florida in over twelve marketing events including r ecurrent
participation at the:
1) Food Automation and Manufacturing Conference
2) SelectUSA Investment Summit
3) Consumer Electronic Show
4) Enterprise Florida Board of Directors Meetings
5) Certified Commercial Investment Member (CCIM) Thrive Conference
6) Medical Device and Manufacturing Show and
7) Florida International Trade and Cultural Expo (FITCE),
This participation has resulted in 10 prospects (including Project TNT) and various
Request for Information from businesses to OBED. interested in Collier County
Roles & Responsibilities
Entity Will
Office of Business & Economic
Development
1. Provide regulatory assistance to create a friendly business climate.
2. Administer incentives and recommend policy to BCC.
3. Provide management of contracts and assist with funding the local and
regional partnerships.
Partnership for Collier County’s
Future Economy
1. Develop and budget for marketing and outreach programs.
2. Manage projects with collaboration from partners.
3. Direct retention efforts and facilitate partnerships.
4. Raise private funds for the economic development of Collier County.
Southwest Florida Economic
Development Alliance
1. Brand SW FL region.
2. Manage pass-through leads from the web and other contacts to all
partners.
3. Aggregate data and pertinent information.
4. Manage website.
5.Provide a forum for regional issues.
11.B.1
Packet Pg. 601 Attachment: OBED 2018 Annual Report (final) (7480 : Economic Development Programs Report)
www.colliercountyfl.gov/obed
15
Accelerator Project – Economic Incubators, Inc.
In September 2013, the Board approved a goal of developing a Business Accelerator
Project, an original project of the OBED Business Plan. Economic Incubators, Inc. (EII)
became the administrative entity for the Collier County accelerator project in November
2014. EII has since opened two facilities, the Naples Accelerator and the Florida Culinary
Accelerator @ Immokalee.
Established in 2014, the Naples Accelerator is a membership-based business accelerator,
certified soft-landing international business accelerator and co-working office in Naples.
Its staff and partnership programs assist members with essential support to launch their
ideas and businesses, including legal, administrative, marketing and funding support.
From July 1, 2015 through the end of Fiscal Year 2018, there have been 101 participants
who have joined the Naples Accelerator, 42 are currently active as of October 2018 in the
accelerator.
The Florida Culinary Accelerator @ Immokalee opened in March 2018 in Immokalee. It
provides a state-of-the-art commercial kitchen which is open to its membership base. The
Florida Culinary Accelerator also provides the pos sibility of venture funds and business
assistance so that members can truly see their culinary creations become a reality. The
Florida Culinary Accelerator has 22 active participants as of October 2018.
Collier County’s approach to economic diversification seeks to leverage public private
partnerships with specialized missions for new business attraction, retention of valued
existing businesses and acceleration of new local business startups and direct foreign
investment. The mission of the Accelerator project fulfills the public purpose of
forwarding the Board of County Commissioner’s strategic goal of economic diversity.
In September 2018, an administrative MOU was developed and agreed to with Florida
Gulf Coast University, Hodges University, and Florida SouthWestern State College to
expand on the County’s regional partnership with other state and local universities at the
Naples Accelerator. Leveraging this partnership for mentoring and marketing
opportunities will be an important focus for FY 19 operations.
11.B.1
Packet Pg. 602 Attachment: OBED 2018 Annual Report (final) (7480 : Economic Development Programs Report)
www.colliercountyfl.gov/obed
16
State Partnership
It is vitally important for OBED to maintain solid relationships with the State of Florida
economic development partners at Enterprise Florida and the Department of Economic
Opportunity. OBED has established strong working relationships with key individuals in
both agencies to maximize the effectiveness of local economic development efforts.
Additional Local Strategic Partners
Additional important local strategic partners include Southwest Florida Works
(workforce board), Collier District Schools, Florida Southwestern State College, Hodges
University, University of Miami’s Bascom Palmer Eye Institute, Florida Gulf Coast
University, Southwest Florida Regional Planning Council, Naples Municipal Airport,
Collier County Aviation Authorit y, Southwest Florida International Airport, S.C.O.R.E.,
CRA’s and the FGCU Small Business Development Center.
11.B.1
Packet Pg. 603 Attachment: OBED 2018 Annual Report (final) (7480 : Economic Development Programs Report)
www.colliercountyfl.gov/obed
17
Tools
OBED has identified and developed a state-of-the-art, industry-standard set of key tools
to implement a course of action for economic development.
Financial Incentives
Financial incentives are utilized by OBED to boost Collier County’s competitiveness and
induce new business activity. OBED is committed to partnering with the State of Florida
in its financial incentive programs and has locally-originated financial incentive programs
contingent on the policy direction of the Board of County Commissioners. The following
incentives have been expended or funded and have resulted in the following outcomes:
Project Direct Jobs Indirect Jobs17 Investment
Florida Specialties18 12 280 $89,000
Animal Specialty Center19 3 47 $54,000
Guadalupe Center20 5 97 $50,000
Haynes Corporation21 5 154 $149,643
Anchor Health22 10 854 -
Arthrex2324 990 1,084 $1,965,818.97
ACI25 57 - -
First Bank26 6 - -
Naples Accelerator27 56 - -
Culinary Accelerator 14 - -
FY 19 Incentives - - $580,400
Total 1,195 2,516 $2,888,682*
17 REMI Models run by the Southwest Florida RPC from ESRI’s Policy Insight Software (Base year: 2015)
18 Collier Clerk Internal Audit. Audit Report 2015-6. Retrieved here December 3, 2018.
19 Collier Clerk Internal Audit. Audit Report 2017-1. Retrieved here December 3, 2018.
20 Collier Clerk Internal Audit. Audit Report 2017-6. Retrieved here December 3, 2018.
21 Collier Clerk Internal Audit. Audit Reports 2014-9 & 2017-11. Retrieved here and here December 3, 2018.
22 Collier Clerk Internal Audit. Audit Report 2013-2. Retrieved here December 3, 2018.
23 Collier Clerk Internal Audit. Audit Report 2018-3. Retrieved here December 3, 2018.
24 Collier Clerk Internal Audit. Audit Report 2017-12. Retrieved here December 3, 2018.
25 Includes committed jobs.
26 CID ($151,000) will be paid over 5 years. Agreement approved May 2017. Includes committed.
27 Department of Economic Opportunity. Grant SL007. Q2, 2018 Report. (4 jobs since from Logiskool include d)
11.B.1
Packet Pg. 604 Attachment: OBED 2018 Annual Report (final) (7480 : Economic Development Programs Report)
www.colliercountyfl.gov/obed
18
The following projects are scheduled to be funded in FY 19:
Project FY 19 Incentive
Arthrex Advanced Broadband $8,400
Arthrex CID #1 and #2 $184,500
Arthrex Job Creation $66,700
Position Logic $29,400
Project ICE ALPS (ACI Worldwide) $143,000
Project Incentive Contingency $137,500
State of Florida QTI Program $10,900
Total FY 19 Incentive Budget $580,400
OBED’s incentive programs are summarized below:
Basic Industry Growth Incentive Program
The Basic Industry Growth Promotion Incentive (Basic) recognizes Collier County’s
desire for near term job growth opportunities for the expansion of local compan ies and
recruitment of new companies which might not qualify for the Qualified Targeted
Industries (QTI) program. The recipients of the Basic, even those with wages under QTI
thresholds, tend to export a significant percentage of their product and as a result create
net new wealth and net new spending power in a local economy. Growth in those
industries assists with our community’s economic recovery.
Applicants are eligible for a county Basic Industry Growth In centive grant of $3,000 per
job if a project creates at least five new jobs within 12 months in a targeted industry with
wages that meet or exceed the Collier County average for the applicant’s specific three -
digit North American Industry Classification System industry code. Businesses that
demonstrate energy efficiency, resource conservation or environmental sustainability in
either the firm’s operational process or products will be eligible for a $500 per-job bonus
over the base grant. To meet Collier County’s program requirements, employers must
report their average wage and job levels.
11.B.1
Packet Pg. 605 Attachment: OBED 2018 Annual Report (final) (7480 : Economic Development Programs Report)
www.colliercountyfl.gov/obed
19
State of Florida Qualified Target Industry Tax Refund Program
The State of Florida’s Qualified Target Industry Tax Refund Program (QTI) is designed
to facilitate the attraction of high-value, export industry jobs that generate new wealth and
create jobs. The program seeks to diversify Florida’s economy by targeting certain
industry clusters of strategic importance to the state’s economic diversity.
Perhaps the State’s most important financial incentive, QTI offers businesses in
designated Targeted Industries an award of $3,000 per new job, or $6,000 per new job
located in an Enterprise Zone. Businesses are eligible for certain bonuses, including a
$1,000 per job bonus if it pays over $150% of the average local wage, and a $2,000 per
job bonus if over 200%. For high-impact industries, as defined by Enterprise Florida, an
additional bonus of $2,000 per job is available.
Enterprise Florida Inc. staff will shepherd businesses and communities through the entire
application process, ensuring that the company and community understand what is
required for a complete, effective application. Collier County’s Board of County
Commissioners is committed to providing the required 20 perc ent local match
requirement for eligible businesses that create jobs in the county.
Advanced Long-term Productivity Strategy Incentive Program (ALPS)
The Advanced Long-term Productivity Strategy Program (ALPS) expands Collier
County’s competitiveness in attracting extraordinary high value economic development
projects in augmentation to our existing Qualified Targeted Industries (QTI) program.
This program is divided into two “tiers.” Tier One offers businesses that create at least 25
new jobs with wages exceeding 150% of average county wages an incentive equal to
1.000% of actual payroll for each of four years. Tier Two offers businesses that create at
least 25 new jobs with wages exceeding 200% of average county wages an incentive of
1.063% of actual payroll for each of four years. Participants must adhere to all QTI
requirements as well as additional Collier County requirements.
11.B.1
Packet Pg. 606 Attachment: OBED 2018 Annual Report (final) (7480 : Economic Development Programs Report)
www.colliercountyfl.gov/obed
20
Capital Investment for Diversification Incentive Program
Collier County offers qualifying applicant’s eligibility to the CID I ncentive as an
inducement grant providing a benefit equivalent of up to 100 percent of the value of the
transportation impact fees actually assessed and remitted for business space that directly
houses the occupancy of a target industry business. The CID Incentive provides four
equal annual installments of the grant amount commencing with the first anniversary of
the issuance of the Certificate of Occupancy for the facility, and will continue each
year until the full grant amount is paid, conditioned and c ontingent upon the project
remaining current on all local tax liabilities and the operation of the facility as a targeted
industry, as evidenced by a certified county approved method, or in substitution, an
equivalent Targeted Industry Business operation acceptable to the county
Florida Power & Light (FPL) incentives
FPL’s business customer bills are among the lowest in the southeast and well below the
national average, but FPL understands that in today’s competitive economy, more is
needed. FPL is able to further cut rates for large power users through two special
programs for economic development projects. One is a definitive tariff program (EDR)
and the other is a flexible negotiated rate (CISR).
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Other Programs
Industrial Development Revenue Bonds
Industrial Development Revenue Bonds (IRDBs) are securities issued by a local
governmental agency, such as the Collier County Industrial Development Authority, for
the purpose of financing capital projects for companies. Industrial Development Revenue
Bonds, also known as “private activity bonds,” are a viable method of financing certain
types of industrial relocation and expansion, as outlined below. That debt is a liability of
the respective company, not the local governmental agency.
Industrial Development Revenue Bonds offer some advantages over conventional
financing methods, including the following:
• Since IDRBs are considered limited and special obligations of governmental
units, the interest on the bond may not be subject to federal income tax and
certain state and local taxes, including intangible taxes and documentary stamp
taxes.
• Some capital costs associated with the acquisition of an industrial project may be
financed.
New Markets Tax Credit
Through the NMTC Program, the Community Development Financi al Institutions
(CDFI) Fund allocates tax credit authority to Community Development Entities (CDEs)
through a competitive application process. CDEs are financial intermediaries through
which private capital flows from an investor to a qualified business lo cated in a low-
income community. CDEs use their authority to offer tax credits to investors in exchange
for equity in the CDE. Using the capital from these equity investments, CDEs can make
loans and investments to businesses operating in low -income communities on better rates
and terms and more flexible features than the market. A credit equal to 39% of the
purchase price of a qualified investment as defined in Section 288.9913(9), F.S. may be
taken. The credit may be carried forward for five years.
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Opportunity Zones
Five Census tracts in Collier County were among 427 areas statewide that
were nominated Low Tax Opportunity Zones by Gov. Rick Scott and certified by the U.S.
Department of the Treasury in June 2018. Three areas in and around Immokalee, one in
Naples Manor, and one in Golden Gate City were designated.
Naples Immokalee
Opportunity Zones, established by the federal Tax Cut and Jobs Act of 2017, encourage
long-term investment and job creation in targeted communities by allowing exclusion of
capital gains taxable income for investment in low-income communities.
Opportunity Zones are an economic and community development tax incentive program
that provide a new impetus for private investors to support distressed communities
through private equity investments in businesses and real estate ventures. The incentive
is deferral, reduction and potential elimination of certain federal capital gains taxes.
Innovation Zones
In 2010, the BCC adopted a policy to create and fund an economic development program
and to advance economic development initiatives in zones of geographic concentration
within the county’s unincorporated areas. These zones, called Innovation Zones, are
designated by the BCC through the implementation of Economic Development Plans
adopted by resolution for each Innovation Zone.
The use of available tax-increment revenues within an Innovation Zone as a dedicated
economic development tool and funding source enhances the county’s general welfare
through the advancement of new employment opportunities, the implementation of
redevelopment initiatives, the creation of new economic development opportunities and
locations, and the expansion of existing employment centers.
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The tax increment will be deposited into a trust fund, and proceeds w ill be used to
implement the Economic Development Plan established by the developer and approved
by the BCC. Expenditures that are expressly prerequisites for the development of a target
industry’s physical operations – including pre-paying impact fees, public infrastructure
or transportation requirements.
So far, the BCC has designated three Innovation Zones:
• Ave Maria Innovation Zone
• Interchange Activity Center No. 9 Innovation Zone (July 2017)
• Golden Gate Economic Development Zone (November 2018)
As the interest and scope of Innovation Zones continue to grow, staff will be needed to
administer and oversee the Advisory Boards and projects occurring within them.
Immokalee Free Trade Zone
The Immokalee Free Trade Zone (FTZ-213 Site#3) became a Foreign Trade Zone (FTZ)
in January 1997. The 60-acre FTZ offers economic advantages to companies when
importing and exporting goods by virtue of the fact that land within the FTZ is considered
outside of the customs territory and duties and taxes are waived when good s enter the
zone and are delayed until the goods are exported out of the FTZ to the U.S. market.
The US Department of Commerce designation allows companies that manufacture within
the industrial park to import raw materials to manufacture their products a nd export them
duty free. Collier County entered a Foreign Trade Zone Development Interlocal
Agreement with Lee County Port Authority which commits the LCPA to assist with the
application to the FTZ Board and serve as the Port Director and FTZ Board as req uired.
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Packet Pg. 610 Attachment: OBED 2018 Annual Report (final) (7480 : Economic Development Programs Report)
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Ecosystem for Innovation
Several unique tools for assisting local businesses are being utilized to assist in the start -
up and acceleration of local new businesses. The approach is different from traditional
economic development which focuses on incentives. The approach called economic
gardening focuses on providing resources to create a robust environment and network of
tools and opportunities within the community.
Collier County’s network of accelerators and strategic partnerships with the FGCU Small
Business Development Center and Service Corp of Retired Executives (Score) is the
foundation of this ecosystem. Additionally, Collier County has added dynamic resources
such as the Florida Virtual Entrepreneur Center which places companies in a se archable
database and provides opportunities for local businesses. The 1 Million Cups program
adds an element of connectivity to Collier County’s ecosystem to connect startups with
local business leaders and investors.
Regulatory Reform and Permitting
When first established in 2013, OBED was charged with implementing a friendly
regulatory atmosphere for businesses in Collier County. Working throughout the agency,
and with established partnerships, OBED created the Collier County Fast Track Program.
The Collier County Fast Track Program is an expedited review program to encourage and
support economic development by streamlining the development process, providing
process certainty, reducing approval times and providing a central point of contact.
Approved fast track projects receive priority review.
Eligible Fast Track projects are those that create new or expand primary employer
businesses. Primary employers are businesses that create a product or service that is
principally sold outside of a region to generate new money and profits in the region. They
include aviation, aerospace, clean technology, defense and Homeland
Security, information technology, financial and professional services, IT, life sciences,
logistics/distribution, and manufacturing, but are not limited to the industries listed in the
box below. The retail, restaurant and hospitality industries are excluded.
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Future Projects & Goals
Annual Report
OBED will submit an annual report to the Board to assist the Office and partners in better
understanding the strengths, weaknesses, opportunities, and threats facing Collier
County’s economy. The strategic direction outlined by the plan will be driven by data and
quantitative analysis, as well as community inputs and other qualitative factors. Using a
full range of inputs, the strategic plan will highlight relevant strategies for the Office to
pursue in developing Collier County’s economy and guiding its economic future.
Certified Sites Program
Collier County’s shovel-ready Certified Site Program assures the quality of properties
that are marketed for development to investors and improves collaboration between the
county and land owners. Under the program, a landowner and/or agent must attest to the
validity of a certified site application and submitte d documentation.
Purpose:
1. To reduce risk, cost, and time for a prospect company by providing full
documentation that a site is available, fully served and is developable.
2. To create a trackable and marketable inventory.
Program Requirements (PESTO). Collier County’s Site Certification Program
requires an applicant to certify:
1. Peak Utility Capacity. Ensure that adequate utilities (electricity, water, sewer, gas and
telecommunications) are available and identified, or can be quickly delivered to a site
in suitable quantities for targeted project sizes with redundancy features.
2. Environmental Consideration. Environmental, geotechnical and archeological studies
are provided to identify any areas of risk and the property’s total acreage.
3. Scale. The site’s shape is conducive to development and expansion, including
specifying zoning, land use and construction restrictions.
4. Transportation. Transportation access exists for employees, raw materials, supplies
and product shipments. Required information includes a transportation infrastructure
map identifying ingress and egress routes; rail line availability; the name of the closest
commercial airport, with the average distance in miles and travel time in minutes from
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the site; the closest interstate highway north-south route; and the closest east-west
interstate highway.
5. Ownership. The property is controlled through ownership or option and is readily
available for ownership transfer to a prospective applicant. Required information
includes a tax map; large-scale boundary survey map; and title and deed.
Data/Economic Scorecard
In undertaking the update of the OBED Business Plan for FY 19, one of the greatest needs
that emerged was a need for greater and more detailed analysis of existing economic
development programs. Through the new acquisition of low-cost data tools, OBED will
begin to produce monthly economic reports for the BCC and public.
The Accelerator Project recently formed a partnership with four local and regional
universities and colleges – which will result in the production of the Collier
County/SWFL Economic Scorecard. This annual scorecard will assess how the economy
is doing each year and inform the County’s economic development efforts.
The Florida Chamber of Commerce Scorecard below provides a good outline for an
economic scorecard that can be customized to specific metrics below:
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Packet Pg. 613 Attachment: OBED 2018 Annual Report (final) (7480 : Economic Development Programs Report)
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Targeted Industries
In the coming year, OBED will undertake a targeted industry analysis to gain a better
understanding of what industries are viable for recruitment. A 2015 FGCU study
identified 11 industry clusters in Southwest Florida, comprised of Collier, Lee, Charlotte,
Hendry, and Glades counties OBED has looked at these 11 industries and put together a
matrix identifying support necessary for them:
Maturity Industry* Types of Support Legacy (traditional) Industry Regulatory Promotion Incentive Contracts
Accommodation/Resort Tourism
Agribusiness
Business/Financial services
Construction
Corporate HQs
Healthcare/Hospitals/Senior Living Emerging (innovative) Industry Advanced Manufacturing
Agritechnology/Culinary Products
Eco-Tourism/Agri-Tourism/Sports
Tourism/Medical Tourism
Electronic Commerce
Performing Arts/Film
Wellness, Lifestyle & Innovation
• Alphabetically Listed
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In the coming year, OBED and its partners will zero in on these industries to study which
sectors will provide the best opportunity for high -wage, high-growth jobs in Collier
County.
Preliminary data analysis predicts that areas such as financial services, health and
wellness, professional services are some areas that targeted engagement could provide a
high-rate of return on investment for the OBED staff. Identified sectors will advance the
private sector, diversify the regional economy, and make it more resilient to economic
downturns or government policy changes.
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Packet Pg. 615 Attachment: OBED 2018 Annual Report (final) (7480 : Economic Development Programs Report)