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Agenda 09/14/2021 Item #16F 7 (Extension to the Ave Maria Innovation Zone collection period w/Carina's Manufacturing, Inc. and Ave Maria Development, LLLP)09/14/2021 EXECUTIVE SUMMARY Recommendation to approve an extension to the Ave Maria Innovation Zone collection period and direct the County Manager, or his designee, to develop an economic development agreement with Carina’s Manufacturing, Inc. and Ave Maria Development, LLLP, for a dedicated manufacturing facility. OBJECTIVE: To extend the collection period on the Ave Maria Innovation Zone and direct the County Manager, or designee, to negotiate an agreement with Carina’s Manufacturing for future approval. CONSIDERATIONS: On June 23, 2015, the Board of County Commissioners adopted resolution 2015- 133 creating the Ave Maria Innovation Zone (Zone). The Zone is set to terminate collecting funds on September 30, 2021 unless a project is brought forward that uses at least 30% of the funds collected. The Zone is just now seeing interest based on the lack of light industrial space available in the urban area, in and around Immokalee, and the increased residential development in the area. The Zone is a predictable and measured tool used by the Board on many occasions in the county to incentivize jobs and appropriate businesses, most recently for the development of a resort hotel within the Activity Center No. 9 Innovation Zone. Carina’s Manufacturing, Inc. was one of the early participants in the Florida Culinary Accelerator at Immokalee, and has seen exceptional growth in private label sauces, juices, and other food products including ethnic specialties over the last several years. The demand for Carina’s products has exceeded the ability of the accelerator to house and support them. The company has seven (7) full time employees and twenty-four (24) part time employees. The growth in their business and employment potential is only limited to their ability to manufacture full time in their own dedicated facility. Carina’s products are currently being distributed through the following channels: • Wynn’s Market, Seed to Table, Marriott, Coconut Jacks, and Taste of Immokalee Additionally, Carina’s has been invited to supply food products and specialty sauces to: • The Ritz Carlton and Sysco regionally and potentially nationally The market size for seasoning, sauces, and condiments is $23 billion and growing by four percent annually. Private label growth is expected to be three times that rate with higher margins. The ability for Carina’s to transition from the accelerator to the next level of independency is highly reliant on access to capital, resources, and labor. Carina’s business model is a perfect example of the typ e of business that the Culinary Accelerator can work with to achieve success in transitioning outside of the accelerator. Successfully moving Carina’s into a dedicated facility in the local area will set the stage for other startup businesses to do the same. In planning the transition to a dedicated facility, Carina’s has explored multiple sites and options. Though the Immokalee community was the initial area of exploration and interest, the lack of available shovel ready sites and corresponding incentives led to consideration of moving into the Ave Maria Innovation Zone. After several meetings with the Ave Maria development and leasing team, a suitable site was 16.F.7 Packet Pg. 2941 09/14/2021 located and a build to suit option with the ability to expand was drafted. To construct and outfit a food manufacturing facility with affordable lease rates, additional funding is required. The proposed facility is located within the Zone in Town Center 2B. Carina’s would occupy approximately 5,600 square feet of the building planned. An expansion of an additional 11,200 square feet is available should the demand for Carina’s products continue to grow. In the recent approval of villages in Rural Land Stewardship Area (RLSA), the need for commercial, industrial, and other job producing businesses was highlighted as a key need in the RLSA. Additionally, innovation zone funds and other incentives have been recently used by the Board successfully to bring a resort hotel, logistics facility, and manufacturing to various parts of the county in the urban area. Creating jobs in the RLSA and in and around the Immokalee urban area are high priorities of the RLSA and Immokalee Area Master Plan. With consensus from the Board, a definitive agreement will be brought back for final Board approval before proceeding with the project. FISCAL IMPACT: In FY 22, the Ave Maria Innovation Zone Fund (182) is budgeted to have $563,200 available for projects. Staff anticipates the negotiated agreement will include reimbursements for construction costs of tangible capital improvements, tenant improvements, and specific equipment for food manufacturing. The final agreement will be structured in a way that dedicates existing and future year’s TIF to offset any costs outlined in the agreement. GROWTH MANAGEMENT IMPACT: The first goal of the Immokalee Area Master Plan, which includes the town of Ave Maria, is to make economic development a priority. Policy 1.1 is to actively pursue, attract, and retain business enterprises. Policies 2.4 and 2.5 support financial incentives and identify Agricultural-Related Business uses as a targeted industry. LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved as to form and legality, and requires a majority vote for approval. -JAK RECOMMENDATION: That the Board approve an extension to the Ave Maria Innovation Zone collection period and direct the County Manager, or his designee, to develop an economic development agreement with Carina’s Manufacturing, Inc. and Ave Maria Development, LLLP, for a dedicated manufacturing facility. Prepared by: Sean Callahan, Deputy County Manager ATTACHMENT(S) 1. 2015-33 Ave Maria Innovation Zone (PDF) 2. Carina's Manufactoring - IMM CRA Support Letter - Final (PDF) 3. Letter of Support Carinas Manufacturing (PDF) 4. site map (PDF) 5. AMDs Letter of Support 9.8.21 (PDF) 16.F.7 Packet Pg. 2942 09/14/2021 COLLIER COUNTY Board of County Commissioners Item Number: 16.F.7 Doc ID: 19994 Item Summary: Recommendation to approve an extension to the Ave Maria Innovation Zone collection period and direct the County Manager, or his designee, to develop an economic development agreement with Carina’s Manufacturing, Inc. and Ave Maria Development, LLLP, for a dedicated manufacturing facility. Meeting Date: 09/14/2021 Prepared by: Title: – County Manager's Office Name: Sean Callahan 09/07/2021 11:00 AM Submitted by: Title: – County Manager's Office Name: Sean Callahan 09/07/2021 11:00 AM Approved By: Review: Corporate Business Operations Jennifer Reynolds Additional Reviewer Completed 09/07/2021 12:01 PM County Manager's Office Sean Callahan Additional Reviewer Completed 09/07/2021 4:22 PM Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 09/08/2021 8:36 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 09/08/2021 4:18 PM Office of Management and Budget Susan Usher Additional Reviewer Completed 09/08/2021 4:39 PM County Manager's Office Sean Callahan Level 4 County Manager Review Completed 09/08/2021 5:11 PM Board of County Commissioners Geoffrey Willig Meeting Pending 09/14/2021 9:00 AM 16.F.7 Packet Pg. 2943 RESOLUTION NO. 2015-1 3 3 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, ESTABLISHING THE AVE MARIA INNOVATION ZONE. WHEREAS, in addition to its broad home rule powers, Collier County is expressly authorized under Section 125.045, Florida Statutes to "expend public funds for economic development activities, including, but not limited to, developing or improving local infrastructure, issuing bonds to finance or refinance the cost of capital projects for industrial or manufacturing plants, leasing or conveying real property, and making grants to private enterprises for the expansion of businesses existing in the community or the attraction of new businesses to the community;"and WHEREAS, Collier County adopted Ordinance No. 2010-20 providing for the creation of Innovation Zones by adoption of a resolution; and WHEREAS, Ave Maria Development, LLP is the developer (hereinafter"Developer") of the Town of Ave Maria Stewardship Receiving Area; and WHEREAS, the Town of Ave Maria Master Plan provides for the development of four Town Centers; and WHEREAS, the four Town Centers provide an opportunity for economic development in the unincorporated area in Collier County. NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY,FLORIDA,that: SECTION ONE: Establishment of the Ave Maria Innovation Zone. The property identified as Town Center 1, 2A, 2B and 3 as set forth in the Town of Ave Maria Master Plan, attached hereto, is hereby established as the Ave Maria Innovation Zone. SECTION TWO: Initial Tax Increment Year and Percentage. For purposes of establishing the Base Year Assessment Roll, the base year shall be the last Collier County Real Property Assessment Roll certified by the Property Appraiser prior to the adoption of the Tax Increment Resolution. Tax increments shall commence to be deposited into the Trust Fund with the County fiscal year commencing on October 1, 2016, and funding shall continue through September 30, 2021. The amount of the tax increment to be deposited into the Trust Fund shall be equal to 100% of the amount based on the formula set forth in Section 4(B) of Collier County Ordinance No. 2010-20. Funding shall automatically continue with no further action by the parties for an additional 5 years, provided that after conclusion of this initial fifth year, at least 30%of the Trust Fund has been expended,. At the conclusion of the tenth year,the parties will meet to discuss whether an additional extension is warranted. 1 16.F.7.a Packet Pg. 2944 Attachment: 2015-33 Ave Maria Innovation Zone (19994 : Carina's Ave Maria) SECTION THREE: Creation of an Economic Trust Fund. The County hereby creates the Ave Maria Innovation Zone Trust Fund. The tax increment shall be deposited into the trust fund and the trust fund proceeds shall be utilized to implement the Economic Development Plan set forth in Section Four. The Trust Fund corpus will not exceed One Million Dollars ($1,000,000) in any single fiscal year and is subject to annual appropriation by the County. Up to 5% of the Trust Corpus shall be reserved as an annual administrative fee for the County. Upon termination of the Trust Fund any unspent and unencumbered proceeds shall revert to the County's General Fund. SECTION FOUR: Adoption of the Economic Development Plan. The purpose of the Ave Maria Innovation Zone is to attract and retain qualified targeted industry business as defined by Florida Statute 288.106. Trust funds may be utilized in any lawful manner, including infrastructure required to serve new target businesses or the expansion of an existing target business; payment of County Impact Fees to be paid by the new target business or the expansion of an existing target business; and payment of building permit fees or other County fees related to the construction of structures to serve the target business. Any payment of funds must be approved in advance by the Board of County Commissioners. All expenses must be fully documented in a manner acceptable to the County. THIS RESOLUTION ADOPTED after motion, second, and majority vote favoring same this 23 day of SVY t'Q 2015. ATTEST..\ BOARD OF COUNTY COMMISSIONERS DWIGHT E.BROCK,'Clorlk. COLLIER COUNTY, FLORIDA_ By: By: 4' . + `De Cl e 'TIM NANCE, CHAIRMANAttest , to heirmans signatu; Appro a ". ' . . and legality: it. J Jeffrey .1 atz ow, County Attorney 2 16.F.7.a Packet Pg. 2945 Attachment: 2015-33 Ave Maria Innovation Zone (19994 : Carina's Ave Maria) a) v.o cr1 E cn ro a f0 rts C N coa-rn r4 'Erg H avow 110 1 rti ' c Z E . , - c f 5'E 1 ',.c.4-1414,i.rat , ,; f.) n t" Zlicc -cLIE ,- _ i L eq,w vl oc0060, 0 .- E 711111 I 1, mD1- 1- zulv0 1-- 1) V I 73 4.4611111,'". 141)_ 19. 4._ I g 1 I r ii# - 44_ 0 6,i-- g il% it op4 11 . 11014g11 ea Ell 0 dif, 4-11 1 111, 4141411 t q, jj1 % t i P4 ofs/ 0/I ; iii0oulaa4 k I i I411. 1i g ow El .)LL ,,,i I r, i: d11liosiatio 0 r ross rill°. 1146.61 f I i I E 1 V 41.11 7, OMR 11 11 vcailimill- i.H..", si i ear 1 , 1111=11. 0P/ Oh. 4111‘ Fra dt U8 ell g 3 impir, 1L L/ v, A II 4f .( .1 i i 1 0 0(0,0100 n0to i I 16.F.7.a Packet Pg. 2946 Attachment: 2015-33 Ave Maria Innovation Zone (19994 : Carina's Ave Maria) Immokalee CRA office (CareerSource SWFL) 750 South Fifth Street, Suite C, Immokalee, FL. 34142 239-867-0028| www.immokaleetoday.com August 18, 2021 Collier County Board of County Commissioner 3299 Tamiami Trail E., Suite 303 Naples, FL. 34112 RE: Carina’s Manufacturing Facility – Ave Maria Innovation Zone Grant Application and Manufacturing Facility Project Dear Board of County Commissioners: The Immokalee Local Redevelopment Advisory Board is appointed by the Collier County Board of Commissioners. The nine-member committee serves as the primary vehicle for community and professional input to the Community Redevelopment Agency (CRA) for matters relating to the Immokalee Community Redevelopment Area. The Immokalee Local Redevelopment Advisory Board supports the proposed manufacturing facility in Ave Maria. Carina’s Manufacturing started at the Immokalee Culinary Accelerator and the advisory board is in full support of the company’s growth and expansion. This project exemplifies a regional, public-private approach to further strengthen our local economy. Carina’s manufacturing has seen exceptional growth over the last couple of years. The demand for Carina’s products has exceeded the ability of the Immokalee Culinary Accelerator to house and support them. The growth in their business and employment potential is only limited to their ability to manufacture full time in their own dedicated facility. Our advisory board is pleased to support Carina’s Manufacturing Ave Maria innovation zone grant application and project. This manufacturing facility will provide job creation, collaboration with local agricultural businesses, co-packing for local food entrepreneurs, private labeling, and a multitude of other services. This development will positively impact the agricultural business in the Immokalee community since most of the products come from Immokalee. Yours sincerely, Dr. Frank Nappo Immokalee Local Redevelopment Advisory Board, Chair James Sainvilus P CRA Board Commissioner Donna Fiala Co-Chair Commissioner William McDaniel, Jr. Co-Chair Commissioner Burt L. Saunders Commissioner Penny Taylor Commissioner Andy Solis, Esq CRA Advisory Board Frank Nappo Chairman Anne Goodnight Vice-Chair Estil Null Ski Olesky Mike Facundo Andrea Halman Yvar Pierre Frank Leon Mark Lemke MSTU Advisory Committee Bernardo Barnhart Chair Peter Johnson Vice- Chair Andrea Halman Norma Garcia Cherryle Thomas CRA Staff Debrah Forester Director Christie Betancourt Operations Manager Yvonne Blair Project Manager Monica Acosta Administrative Assistant 16.F.7.b Packet Pg. 2947 Attachment: Carina's Manufactoring - IMM CRA Support Letter - Final (19994 : Carina's Ave Maria) 1400 N 15th Ste. 202, Immokalee, FL 34142 P.O. Box 1286, Immokalee, FL 34143 Tel: (239) 297-6814 Fax: (239) 236-0251 Tasteofimmokalee@gmail.com www.TasteofImmokalee.com Deomattie Tannassee Carina’s Manufacturing Immokalee, Florida August 16, 2021 Dear Board of County Commissioners: My name is Marie Capita, and I am the Executive Director of Taste of Immokalee. Taste of Immokalee is a student created and students operated business. Taste of Immokalee's line of salsa and sauces are made with farm fresh local produce. Created in partnership with professional mentors, chefs, and food industry experts. We are a Benefit Corporation with a mission to provide students with hands-on experience in all aspects of business, with a focus on social entrepreneurship to give back to the community of Immokalee, Florida. We provide Collier County youth with hands-on learning in business, social entrepreneurship, and leadership to prepare for college and careers. We met Mrs. Tannassee, the owner Carina’s Manufacturing, at the grand opening of the Immokalee Accelerator. Since the Taste of Immokalee’s products are being sold in Publix stores and in other local markets, Mrs. Tannassee and myself always stayed in contact because this is the same path she wanted to take with her products. We commit to participating in and supporting the Carina’s Manufacturing Ave Maria innovation zone grant application and project. Since the creation of Taste of Immokalee, it has been a struggle to find a local manufacturing facility that can produce our products on site. Currently our products are being produces in Winter Springs, Florida. We have had several conversations with the Board of County Commissioners about the need for a manufacturing facility in the Immokalee area. If this facility is built, we can bring down our manufacturing to the Immokalee area. This will be a great benefit for the students because they will have more of a hands-on approach to the manufacturing side of the products and quality control. Please feel free to contact me if you have any questions or concerns. Sincerely, _____________________________________ MARIE C. CAPITA Executive Director Board Members Timothy Cartwright President John K Paul Treasurer Jaime Weisinger Officer Ray Jensen Officer Paul Evans Officer Kathleen Maier Secretary Holly Parkes Officer Winston Justice Officer Henry Suerth Officer Kevin Carmichael Marie Capita Executive Director 16.F.7.c Packet Pg. 2948 Attachment: Letter of Support Carinas Manufacturing (19994 : Carina's Ave Maria) 16.F.7.d Packet Pg. 2949 Attachment: site map (19994 : Carina's Ave Maria) 16.F.7.d Packet Pg. 2950 Attachment: site map (19994 : Carina's Ave Maria) 16.F.7.ePacket Pg. 2951Attachment: AMDs Letter of Support 9.8.21 (19994 : Carina's Ave Maria)