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Agenda 01/13/2009 Item #16A 2Agenda Item No. 16A2 January 13, 2009 Page 1 of 10 EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners approve a Job Creation Investment Program Agreement with Anchor Health Centers, P.A. and Naples Investment Group, LLC consistent with the provisions of the Job Creation Investment Program and the company's approved incentive application OBJECTIVE: Recommendation that the Board of County Commissioners (Board) approve a Job Creation Investment Program Agreement with Anchor Health Centers, P.A. and Naples Investment Group, LLC consistent with the provisions of the Job Creation Investment Program and the company's approved incentive application. CONSIDERATIONS: On November 18, 2003, the Board of County Commissioners adopted Ordinance No. 2003 -60 establishing the Job Creation Investment Program. The program is available to targeted high -wage companies that desire to relocate or expand within specified areas of Collier County and is designed to reduce the economic effects of relocation and /or expansion costs. The Program has specific eligibility requirements including the number of full -time jobs to be created and retained, the average wage of the jobs, timing of the jobs being in place and the type of business being proposed. On May 16, 2006, Anchor Health Centers, P.A. and Naples Investment Group, LLC submitted an application to be considered for the Job Creation Investment Program for new jobs being created at their new medical facility at Edison Village. The project involves the development of a "regional headquarters office" with facilities for medical imaging, clinical research and multi - specialty physicians. The application was approved by the Board on July 25, 2006 (Item 16A[9]). The company proposed to create 40 new jobs at 150% of the Collier County average wage, in three phases. To date, the company has created 27 new jobs, which have been audited and verified and has met the minimum requirements to participate in the program with the creation of 20 new jobs. The applicant is also on schedule for the third phase of job creation, for the 40 job target, by December 31, 2009. Collier County Job Creation Investment Program funds are paid in equal payments over three consecutive years following creation and retention of the jobs. Currently, the companies are eligible for job creation funds for the 27 newly created jobs at $2,000 a job, totaling $54,000 to be paid over a three year period. FISCAL IMPACT: The budget for the local Economic Incentive Programs for Fiscal Year 2009 is $255,300. Anchor Health Centers, P.A. and Naples Investment Group, LLC are currently eligible for an incentive payment of $2,000 per job for the 27 jobs that have been created and verified, for a total of $54,000. The $54,000 is disbursed in equal payments over a three year period; therefore the fiscal impact for FY 2009 economic incentive budget is $18,000. There is sufficient funding within the approved budget to facilitate this request. Each of the local Economic Incentive Programs are subject to the availability of funding, which is reflected in the Agreement that was prepared by the County Attorney's Office for Board consideration Agenda Item No. 16A2 January 13, 2009 Page 2 of 10 and approval. Provided that Anchor Health Centers, P.A. and Naples Investment Group, LLC continue to meet the eligibility requirements for the Job Creation Investment Program and there is sufficient funding available, the remaining incentive payments are scheduled to be disbursed in Fiscal Year 2010 and Fiscal Year 2011. Payments related to the remaining jobs to be created will be disbursed only after the jobs are verified to be in place and audited for compliance with the Program requirements. Any future payments will also be disbursed over a three year period and are also subject to the availability of funding. If the jobs have not been created by December 31, 2009, the companies may apply for an extension, which must be approved by the Board, or withdraw the additional jobs from the Program as the companies have already met the minimum requirements to participate in the Job Creation Investment Program. 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: The Office of the County Attorney participated in the preparation of this proposed Agreement, which is legally sufficient for Board consideration and approval.- JAK RECOMMENDATION: That the Board of County Commissioners approve a Job Creation Investment Program Agreement with Anchor Health Centers, P.A. and Naples Investment Group, LLC consistent with the provisions of the Job Creation Investment Program and the company's approved incentive application. Prepared by: Amy Patterson, Impact Fee and Economic Development Manager Business Management and Budget Office, CDES Page 1 of 1 Agenda Item No. 16A2 January 13, 2009 Page 3 of 10 file://C:AAgendaTest \Export\ 121- January%2013 %202009\ 16. %2000NSENT %20AGENDA \... 1/7/2009 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS Item Number: 16A2 Item Summary: Recommendation that the Board of County Commissioners approve a Job Creation Investment Program Agreement with Anchor Health Centers, P.A. and Naples Investment Group, LLC consistent with the provisions of the Job Creation Investment Program and the companys approved incentive application. Meeting Date: 1/13/2009 9:00:00 AM Prepared By Amy Patterson Impact Fee Manager Date Community Development & Financial Admin. & Housing 12/912008 2:58:45 PM Environmental Services Approved By Jeff Klatzkow Assistant County Attorney Date County Attorney County Attorney Office 1211012008 11:47 AM Approved By Judy Puig Operations Analyst Date Community Development & Community Development & 12111/2008 10:35 AM Environmental Services Environmental Services Admin. Approved By Garrett Mullee Financial Operations Manager Date Community Development & Financial Admin. & Housing 12/1112008 1:12 PM Environmental Services Approved By Joseph K. Schmitt Community Development & Date Environmental Services Adminstrator Community Development & Community Development & 1 211 612 008 10:02 AM Environmental Services Environmental Services Admin. Approved By OMB Coordinator OMB Coordinator Date County Manager's Office Office of Management & Budget 1211812008 1:28 PM Approved By Mark Isackson Budget Analyst Date County Manager's Office Office of Management & Budget 12/19/2008 9:25 AM Approved By James V. Mudd County Manager Date Board of County County Manager's Office 12/2312008 3:03 PM Commissioners file://C:AAgendaTest \Export\ 121- January%2013 %202009\ 16. %2000NSENT %20AGENDA \... 1/7/2009 Agenda Item No. 16A2 January 13, 2009 Page 4 of 10 This space for recording JOB CREATION INVESTMENT PROGRAM AGREEMENT This Job Creation Investment Program Agreement ( "Agreement ") is entered into this day of 2009, by and between Collier County, a political subdivision of the State of Florida, through its Board of County Commissioners, hereinafter referred to as "County," and Anchor Health Centers, P.A., and Naples Investment Group, LLC, hereinafter referred to as "Employers," collectively stated as the "Parties." All capitalized terms not defined herein shall have the same meaning as set forth in the Collier County Job Creation Investment Program Ordinance, Ordinance No. 2003 -60, as amended. RECITALS: WHEREAS, on November 18, 2003, The Board of County Commissioners (`Board ") enacted Collier County Ordinance No. 2003 -60, commonly referred to as the Collier County Job Creation Investment Program Ordinance, codified as Article III of Chapter 49 of the Code of Laws and Ordinances of Collier County Florida, hereinafter referred to as the "Ordinance;" and WHEREAS, the Ordinance provides that its purposes "are to: (1) provide a performance -based program offering financial relief for eligible targeted industry development or expansion projects in Collier County to mitigate the effects of rising fees, along with escalating relocation and expansion costs, associated with these projects; (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 businesses thus increasing and diversifying the county's tax base;" and WHEREAS, to be considered eligible for approval under this Program, a business or project must meet all of the criteria of one of the following categories: (1) The business or project is located within Eastern Collier County; is within the targeted industry list of the Economic Development Council of Collier County; and creates a minimum of 10 new full -time jobs paying an average wage of at least 115 percent of the County's current private - sector average wage; or (2) The business or project is located within the boundary of the Immokalee Rural Federal Enterprise Community and creates a minimum of five new full -time jobs paying an average wage equal to or greater than 50 percent of the County's current private- sector Page 1 MT Agenda Item No 16A January 13, 2009 Page 5 of 10 average wage; or (3) The business or project is a high impact project, located outside the enterprise community and Eastern Collier County; is within the targeted industry list of the Economic Development Council of Collier County; and creates a minimum of 20 new full -time jobs paying an average wage equal to or greater than 150 percent of the County's current private - sector average wage; and WHEREAS, the Employer submitted an application to be considered for the Program for a business or project involving relocation of corporate headquarters to Naples, Florida. A copy of this application is on file in the Community Development and Environmental Services Division, Business Management and Budget Office; and WHEREAS, the County Manager or his designee, having reviewed the application and, based on the representations therein, found that it complied with the requirements outlined and set forth in the Ordinance, hereby recommends approval. NOW, THEREFORE, in consideration of the foregoing Recitals, and other good and valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged, the Parties agree as follows: 1. The foregoing Recitals are true and correct and are incorporated by reference herein. 2. The legal description of the business or project is attached as Exhibit "A ", and is incorporated by reference herein. 3. This Agreement will commence upon execution by the County, and will terminate on the third anniversary of the first Program payment. 4. The Employer is hereby awarded the sum of $80,000.00, representing $2,000.00 per new full time job created. The funds will be paid in equal installments over a three - year time period, at the beginning of each fiscal year, following the date the newly created jobs are in place and verified by the County Manager or his designee. Should at any time over the term of this Agreement the number of qualifying jobs is less then set forth in the application, then the County Manager or his designee may authorize a lesser sum be paid based on the actual number, provided that the actual number meets or exceeds the minimum number of qualifying jobs set forth in the Ordinance. This award is subject to funding availability for each fiscal year. Employer understands that the Ordinance will expire and be void on October 1, 2013, unless continued by a Page 2 Agenda Item No. 16A2 January 13, 2009 Page 6 of 10 vote of the Board prior to this date, and as such, the installment payments hereunder could be discontinued as well. 5. An annual review for compliance under this Agreement shall be performed by the County to determine whether there has been good faith compliance with the terms of this Agreement. Employer shall give the County reviewer full access to its business records and business premises as required to certify the created jobs. If the County Manager or his designee finds, on the basis of substantial competent evidence, that there has been a failure to comply with the terms of this Agreement, the Agreement may be revoked or unilaterally modified by the County. Employer shall be given 10 business days prior written notice of any review. In addition to an annual review, within 10 business days from the County's written request, the Employer will provide the County with all requested documentation required to verify compliance with the terms of the Ordinance or this Agreement. 6. Neither the payment of funds, nor this Agreement, may be transferred, assigned, credited or otherwise conveyed without prior written approval from the County, which approval may be freely withheld. 7. In the event the Employer is in default under this Agreement, and the default is not cured within 30 days after written notice is provided to the Employer, the Board may bring a civil action to enforce this Agreement or declare that the grant funds are thence immediately due and payable. The Board is entitled to recover all fees and costs, including attorney's fees and costs, incurred by the County in enforcing this Agreement, plus interest at the then maximum statutory rate for final judgments, calculated on a calendar day basis until paid. By way of example and not as a limitation, this Agreement will be in substantial breach upon the following events: (1) any change in the status of the business or project such that it no longer meets the required Program criteria; (2) failure to fully comply with all reasonable requests during any County review conducted pursuant to this Agreement; and (3) upon the County Manager or his designee being informed of a material misrepresentation in the Application. 8. The County shall record this Agreement in the Public Records of the County, with all costs of recording being paid by the Employer. Page 3 Agenda Item No. 16A2 January 13, 2009 Page 7 of 10 IN WITNESS WHEREOF, the Parties have executed this Agreement on the date and year first above written. Attest: DWIGHT E. BROCY, Clerk 0 Deputy Clerk Page 4 BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY, FLORIDA, TOM HENNING, Chairman AS TO ANCHOR HEALTH CENTERS, P.A. a Florida Profit Corporation M Printed STATE OF FLORIDA COUNTY OF COLLIER Agenda Item No. 16A2 January 13, 2009 Page 8 of 10 ROBERT E. RANSON, M.D., President The foregoing instrument was acknowledged before me this IS` day of S,,scn j-_,2L , 2008, by ROBERT HANSON, as President of ANCHOR HEALTH CENTERS, P.A. who is personally known tome or has produced (3eAse , op , T_);�K , 1 as identification. [NOTARIAL SEAL] UrL�A �t. - ,Fv_.Q a J — Signature of Person Taking Achhowledgment VITTNESS: By: ,JUIffiLdrA 6CA�" PAUL F. ZAMPCELL, Malaging Member Signatj�e \ f >Y.c',A Printed Name STATE OF FLORIDA COUNTY OF COLLIER 5 .xxxxn xx. 35KJLRAY4 -F" 0 OWW W DCOdi0W RoAd INDWYAwi.,MC $ w.mxx.xx.x...x.xumxwxxxx.n The foregoing instrument was acknowledged before me this Sl day of N C K t> ,,,,_" _ 2008, by PAUL ZAMPELL, as Managing Member of NAPLES ,INVESTMENT GROUP, LLC who is personally known to me or has produced as identification. [NOTARIAL SEAL] [� Signature o Pers1on TAkin owledgment Print Name: �n�r u - 411— Lec V-\ My Commission Exp es: .mx ••••CNE,RY6 A�RAWI.EACH $ E�Iras 7/162011 '' Page 5 °" FbiftNOWYA=-.' -, Agenda Item No. 16A2 January 13, 2009 Page 9 of 10 Approved as to form and Recommend Approval: Jzi��4 ea�t�� Amy Patterbbn, Manager Impact Fee and Economic Development Manager Page 6 Agenda Item No. 16A2 January 13, 2009 Page 10 of 10 EXHIBIT "A" OWNERSHIP ADDRESS LEGAL DESCRIPTION Anchor Health Centers, P.A., and Naples Investment Group, LLC 8360 Sierra Meadows Blvd., Naples, FL 34113 Lot 10, EDISON VILLAGE, a subdivision according to the map or plat thereof recorded in Plat Book 43, pages 76 -77, in the Office of the Clerk of the Circuit Court, Collier County, Florida