Agenda 04/25/2023 Item #16A11 (Economic Development Agreement with AZT Technology LLC in the sum of $40,272.80)04/25/2023
EXECUTIVE SUMMARY
Recommendation to approve an Economic Development Agreement with AZT Technology, LLC, in the sum
of $40,272.80 for infrastructure expenditure for a Florida Power and Light transformer and feeder conduits,
equipment feeds and grounding for a precision metal component manufacturing facility in the Interchange
Activity Center No. 9 Innovation Zone, and authorize for reimbursement of these expenditures.
OBJECTIVE: To work with AZT Technology LLC (AZT) to expand to a manufacturing facility within the
Interchange Activity Center No. 9 (IAC9) Innovation Zone in a holistic manner that meets the needs of AZT and
complements the County’s Economic Development job creation priorities.
CONSIDERATIONS: AZT Technology LLC, d.b.a. Azimuth Technology (AZT) is an internationally certified
manufacturer and assembler of firearm components, explosives (EOD/IED) detection equipment, and other
products used in defense, law enforcement, aerospace, and the military that has been based in Collier County since
2011. They identified a facility in the Tollgate PUD to expand their manufacturing which is currently executed in
two other nearby facilities. AZT’s consolidated facility at 3933 Tollhouse Drive Building 11 is expected to
generate 50 new high-quality jobs. AZT is current with their property tax and business tax receipts for their
existing facilities and paid $263,306.90 in property taxes in 2022. AZT is requesting reimbursement of $40,272.80
for the costs related to the installation of a transformer to support their operations in the new location as identified
below:
Item Cost Explanation
FPL Transformer $30,378.00 FPL conf # 27581657 (see Attachment FPL Tollhouse DR New
Service Payment)
FPL Feeder
Conduits
$8,530.00 The Invoice from General Contractor (GC) Phoenix Associates’
subcontractor Arrow Electrical (dated September 9, 2022) for
change order 2 is on page 3 of the change order payments. Page 7
of the change order payment shows on line 301 draw 8 payment
for $7,677 for feeder conduit which was paid from Texas Capital
Bank check #015418 (page 8) dated December 9, 2022 to
Phoenix Associates of Florida. The remaining balance of $853
for change order 2 was paid in draw 10 on Texas Capital Bank
check # 015671 dated January 23, 2023 (pages 13-14). (see
attachment Azimuth TI Arrow electric Change Order Payments)
General Contractor
Overhead
$1,364.80 This is the cost charged by Phoenix Associates as the GC
overseeing their electrical subcontractor, Arrow Electric. The
amount is 16% of the $8,530 portion for the buried feeder
conduits. Since this conduit was installed along with other
electrical work going on at the time, there is no separate line item
for $1,364.80. From check #015418, the portion going towards
the conduit is $7,677 x 16% = $1,228.32. From check #015671,
the portion going towards the conduit is $853 x 16% = $136.48.
$1,228.32 +136.48= $1,364.80
Total $40,272.80
The Collier County Board of County Commissioners established the Interchange Activity Center No. 9 Innovation
Zone in 2018 around the commercial and industrial areas near the Interstate 75 and Collier Boulevard intersection.
The primary purpose of the innovation zone is to “attract and retain Qualified Targeted Industry (QTI) businesses
as defined by Florida Statute 288.106”. AZT is a Targeted Industry business (i.e., Homeland Security & Defense)
and has leased a property within the IAC9 Innovation Zone. The purpose of this expenditure reimbursement request
is for economic development through improving infrastructure, specifically the electrical service to the facility.
Section five of Ordinance #2018-39 states that the ‘trust fund may be used in any lawful manner, including
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infrastructure required to serve new target businesses or the expansion of an existing target business.’
During the initial planning of this project, the electrical requirements of the new facility were expected to be met by
Florida Power and Light (FPL) upgrading an existing electrical service supplying the building. This approach
would have required replacing the transformer with a larger unit, increasing conductor size, and installing dedicated
metering and switchgear. As construction of the building was underway, the impacts of Hurricane Ian created
significant material lead times for the required components which became a serious challenge for the expansion.
Some of the components were expected to take over a year for delivery. This unforeseen delay would have
diminished AZT’s ability to fulfill existing contracts as they could only receive a Certificate of Occupa ncy once
there was suitable power to their new advanced manufacturing facility. To avoid this delay, an alternative approach
was proposed in which a second transformer and feed would be installed by FPL, eliminating the need for the
metering components and disconnect switch that accounted for much of the delay.
To expedite the installation, AZT approached the Greater Naples Chamber and Collier County to fund the
expenditure and partner in the costs. There is a history of correspondence between the Greater N aples Chamber and
County Staff describing how AZT could utilize the innovation fund before the Collier Boulevard Interstate
Interchange Zoning Overlay (CBIIZO) provisions were enacted; the zoning overlay and the TIF fund are mutually
exclusive. This project has been planned since October 2022 with County staff and the Greater Naples Chamber.
AZT’s Innovation Zone Trust Fund Application was submitted on November 15, 2022. Approval of this item will
reimburse AZT for their expenses for this infrastructure project.
FISCAL IMPACT: Funding for this agreement, in the amount of $40,272.80, is available within IAC9 Trust Fund
(783).
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: This after-the-fact expenditure item has been reviewed by the County Attorney,
is approved as to form and legality and requires a majority vote for approval. -JAK
RECOMMENDATION: To approve an Economic Development Agreement with AZT Technology, LLC, in the
sum of $40,272.80 for infrastructure expenditure for a Florida Power and Light transformer and feeder conduits,
equipment feeds, and grounding for a precision metal component manufacturing facility in the Interchange Activity
Center No. 9 Innovation Zone, and authorize for reimbursement of these expenditures.
Prepared by: Cormac Giblin, Interim Director, Economic Development and Housing.
ATTACHMENT(S)
1. AZT Agreement with attachments (PDF)
2. Azimuth Site Plan (PDF)
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COLLIER COUNTY
Board of County Commissioners
Item Number: 16.A.11
Doc ID: 24975
Item Summary: Recommendation to approve an Economic Development Agreement with AZT Technology,
LLC, in the sum of $40,272.80 for infrastructure expenditure for a Florida Power and Light transformer and feeder
conduits, equipment feeds and grounding for a precision metal component manufacturing facility in the Interchange
Activity Center No. 9 Innovation Zone, and authorize for reimbursement of these expenditures.
Meeting Date: 04/25/2023
Prepared by:
Title: Operations Analyst – Planning Commission
Name: Diane Lynch
03/14/2023 4:18 PM
Submitted by:
Title: Department Head - GMD – Growth Management Department
Name: James C French
03/14/2023 4:18 PM
Approved By:
Review:
Growth Management Department Diane Lynch Growth Management Department Completed 03/21/2023 1:47 PM
Growth Management Development Review Cormac Giblin Additional Reviewer Completed
03/24/2023 1:44 PM
Growth Management Operations & Regulatory Management Michael Stark Additional Reviewer Completed
03/24/2023 4:19 PM
Growth Management Operations Support Evelyn Trimino Additional Reviewer Completed
03/28/2023 8:52 AM
Growth Management Department James C French Growth Management Completed 04/05/2023 6:01 PM
Office of Management and Budget Debra Windsor Level 3 OMB Gatekeeper Review Completed 04/10/2023 9:34 AM
County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 04/13/2023 1:38 PM
Office of Management and Budget Christopher Johnson Additional Reviewer Completed 04/15/2023 10:08 AM
County Manager's Office Geoffrey Willig Level 4 County Manager Review Completed 04/17/2023 11:26 AM
Board of County Commissioners Geoffrey Willig Meeting Pending 04/25/2023 9:00 AM
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Page 1
ECONOMIC DEVELOPMENT AGREEMENT
AZT Technology, LLC, dba Azimuth Technology
This Economic Development Agreement (hereinafter referred to as “Agreement”) is
entered into this ___ day of __________, 2023, by and between Collier County, a political
subdivision of the State of Florida, through its Board of County Commissioners (hereinafter
referred to as the "County"), and AZT Technology, LLC, dba Azimuth Technology (hereinafter
referred to as “Azimuth”), whose address is 10130 Market Street, Naples FL, 34112.
RECITALS:
WHEREAS, Collier County enjoys broad Home Rule Powers, which include the authority
to enter into agreements to enhance economic development within the County; and
WHEREAS, Florida Statute Sec. 125.045 expressly provides that “The governing body of
a county may expend public funds to attract and retain business enterprises, and the use of public
funds toward the achievement of such economic development goals constitutes a public purpose.
The provisions of this chapter which confer powers and duties on the governing body of a county,
including any powers not specifically prohibited by law which can be exercised by the governing
body of a county, must be liberally construed in order to effectively carry out the purposes of this
section;” and further that “it constitutes a public purpose 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, Azimuth is renovating a manufacturing facility within the Tollgate PUD in
Interchange Activity Center No. 9; and
WHEREAS, has requested that it be reimbursed in the sum of $40,272.80 for its costs
related to the installation of a transformer by Florida Power and Light (FPL); and
WHEREAS, Azimuth is current on all property taxes and business tax receipt payments;
and
WHEREAS, the Board expressly finds that this project will result in substantial economic
benefits to the County, including solidifying the workforce in critical industries that have ongoing
shortages of skilled workforce.
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Packet Pg. 1050 Attachment: AZT Agreement with attachments (24975 : Economic Development Agreement with AZT Technology, LLC)
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16.A.11.bPacket Pg. 1071Attachment: Azimuth Site Plan (24975 : Economic Development Agreement with AZT Technology, LLC)