Agenda 01/28/2025 Item #16A 8 (Approve ArborX as a qualified applicant to the Collier County Basic Industry Growth Promotion Incentive Program)1/28/2025
Item # 16.A.8
ID# 2024-2251
Executive Summary
Recommendation to approve ArborX Inc., as a qualified applicant to the Collier County Basic Industry Growth
Promotion Incentive Program and authorize the Chairman to execute the attached agreement for Project “CARBO” and
approve all necessary Budget Amendments.
OBJECTIVE: That the Board of County Commissioners (“Board”) consider an economic development financial
incentive to facilitate the growth of ArborX’s (Biochar) Manufacturing operations, add above-average market wage
jobs, to further diversify Collier County’s economy.
CONSIDERATIONS:
ArborX, Inc., (“ArborX”), a clean technology company that diverts clean green wood debris from traditional
waste streams and turns it into biochar based in Naples, Florida, has proposed expanding the company
operations to 2951 SR 29, Immokalee, Florida 34142. Biochar is a carbon matrix, similar to charcoal that is
however not fully incinerated and is environmentally friendly and more sustainable/renewable. It is used as
an organic soil additive, absorbing or insulating material, water treatment solution, air cleaner, silage agent or
feed supplement.
ArborX, under the Project name “CARBO,” made an application for the Basic Industry Growth Promotion
Incentive (BIGPI) Application job grant on November 12, 2024. The project’s operation and directly related
employment will support the diversification of Collier County’s economy and growth in manufacturing jobs
in Collier County. ArborX requested confidentiality as provided by F.S. 288.075, which provides a 1 year
exemption from F.S. 119.07 for proprietary confidential business information i.e. business plans, trade
secrets, for private enterprises with interest to locate or expand in Florida. ArborX was approved for
participation in the County’s Fast Track Program under ordinance 2016-247 on September 25, 2024.
ArborX proposes to create at least 14 new full-time equivalent jobs that pay at least $50,654. Beyond meeting
the minimum annual pay of $50,654, each new employee must be either a full-time employee working an
average of 36 hours per week, or the business will be allowed to count two employees working a minimum of
20 hours weekly as one full-time equivalent as long as these employees are eligible to receive full benefits.
ArborX will be required to create 5 new full-time equivalent jobs in Collier County in the first year of
operation. By the second year, the company will maintain these 5 positions and create 3 additional full-time
equivalent local jobs bringing the total to 8. In the third year, ArborX will maintain the 8 existing jobs and
create 4 more full-time equivalent local jobs. By the 4th anniversary of the issuance of the Certificate of
occupancy (CO) of the new facility, the company will maintain the 12 full-time jobs, add 2 additional local
full-time equivalent jobs, and contribute $5,000 towards local Municipal Solid Waste Disposal.
The incentive under BIGPI for this project will be up to $3,500 per job created in Collier County, with up to
14 new full-time equivalent jobs created to be paid during the first four years of operation. The BIGPI
provides for $3,000 per job if the project creates at least 5 jobs within 12 months which are at least at the
County’s average salary for those job classification, and the jobs are also eligible for a $500 per job bonus
over the base of $3000 to businesses that demonstrate energy efficiency, resource conservation, or
environmental sustainability, ArborX’s BIGPI will be paid annually based on jobs created and maintained in
Collier County.
County staff estimates CARBO’s Return on Investment (ROI) as positive (i.e. the project is expected to
generate enough revenues to recover a portion of the County’s incentive payment), with an estimated change
of almost $900,000 in earnings and 18 direct and induced jobs among manufacturing, construction, and
transportation clusters by year 4 of operations. CARBO proposes around $2.5 million in Capital Expenditure
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1/28/2025
Item # 16.A.8
ID# 2024-2251
over the first 4 years of operation.
The BIGPI commences with the first anniversary of the issuance of the Certificate of Occupancy for the
ArborX facility in Collier County and will continue each year thereafter until 4 years from the issuance of the
Certificate of Occupancy when the full grant amount of $49,000.00 is paid as under the provisions of the
BIGPI agreement (see Table 1). Should the number of qualifying jobs be less than the number set forth in the
payment schedule above at any time during the term of this Agreement, the County Manager or their designee
will authorize a lesser sum to be paid based on the actual number, not to exceed $3,500.00 per new full-time
equivalent job created.
Table 1: Incentive Payments Schedule
Year from issuance of Certificate of
Occupancy
Jobs created/maintained Maximum Annual
Payment
Year 1 5 $ 17,500
Year 2 3/5 (total 8) $ 10,500
Year 3 4/8 (total 12) $ 14,000
Year 4 2/12 (total 14) $ 7,000
Total $ 49,000
County Staff will coordinate with ArborX and the Clerk’s staff concerning timelines for project monitoring,
as well as data requirements needed by County Staff and the Clerk, such as IRS Form 941, Payroll records,
and a Florida Form RT-6 for each new employee. The County’s Housing Policy and Economic Development
Division receives the initial payment requests from ArborX, and reviews that the company remains current on
business tax receipts, and property taxes, and their Sunbiz Company registration is active, the division will
also ensure that all required supporting data is included in the company’s submission. Once that is done then
the payment request is submitted to the Clerk, who’s Office of Inspector General does the audit. County staff
will also participate in the Clerk’s project audits which are required prior to any incentive payments. These
Annual reports are posted on the Clerks Website.
In addition to the salary and benefits requirements, each payment is also conditioned and contingent upon the
continued operation of the Facility as an All Other Miscellaneous Wood Product (Biochar) Manufacturing
related company specified by 2017 (North American Industry Classification System- NAICS) Number
321999 as evidenced by a certified County approved method or an equivalent Targeted Industry Business
operation acceptable to the County. ArborX will pay to the County a contribution of $5,000 towards local
Municipal Solid Waste Disposal by the fourth anniversary of the issuance of the Certificate of Occupancy for
the Facility.
FISCAL IMPACT: The projected cost to the County is $49,000.00 over four years beginning with the first anniversary
of the issuance of the Certificate of Occupancy for the Facility, available in the Economic Development Incentive Fund
0001.
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 item is approved as to form and legality and requires a majority vote for approval.
–DDP
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1/28/2025
Item # 16.A.8
ID# 2024-2251
RECOMMENDATIONS: To approve ArborX Inc., as a qualified applicant to the Collier County Basic Industry
Growth Promotion Incentive Program and authorize the chairman to execute the attached agreement for Project
“CARBO” and approve all necessary Budget Amendments.
PREPARED BY: Cormac Giblin, Director, Housing Policy &Economic Development Division
ATTACHMENTS:
1. ArborX BIGPI Agreement_FINAL
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