Agenda 05/24/2016 Item #11A 5/24/2016 11 .A.
EXECUTIVE SUMMARY
Recommendation to adopt a resolution approving the proposed Project Nikita as a
qualified applicant to Florida's Qualified Target Industry (QTI) Tax Refund program,
providing up to $560,000 of local financial support for a corporate headquarters project
which will create 560 new quality jobs in Collier County,Florida.
OBJECTIVE: To obtain Board approval for the proposed Project Nikita as a qualified applicant for the
Qualified Target Industry Tax Refund(QTI)program.
CONSIDERATIONS: Enterprise Florida, Inc. brought the proposed project to Collier County in April
2016. The corporate headquarters project will create 560 new jobs in Collier County, Florida, that will
provide high-wage, value-added employment to Collier County citizens with an average annual wage of
$49,658 and average annual benefits of$17,000. The estimated capital investment is$63,350,000 million
dollars. This prospect has alternative sites available and has made participation in the QTI program a
condition for further consideration of locating such a project at a Collier County site.
In order to collect the annual tax refunds, the prospect must create the number of new jobs contracted
with the Florida Department of Economic Opportunity(DEO) and provide wages averaging at least 115%
of the County average wage for each year of the agreement. The state QTI program provides a base
incentive of$3,000 per job created plus an additional bonus $2,000 incentive because the proposed jobs
fall within one of the "high impact" sectors for a total possible incentive of$5,000 per job created by
Project Nikita. Under the state QTI program Project Nikita is eligible for up to $2,800,000 (560 jobs x
$5,000). The state program requires that the local community provide 20% of the total tax refunds and
cash funding. This local match is paid to the state, not the applicant. If Project Nikita fulfills the
contractual obligations for quality job creation, the County would pay 100% of the local match for this
application which would be up to$560,000.
FISCAL IMPACT: The maximum cost to the County for this QTI applicant is $560,000 spread over
five years, anticipated to begin in FY 2017. Funding for Economic Development Incentives is available
in Economic Development Funds 001 and 007.
GROWTH MANAGEMENT IMPACT:None.
LEGAL CONSIDERATIONS: This item has been reviewed by the County Attorney, is approved
as to form and legality, and requires majority vote for approval. -JAK
RECOMMENDATION: Adopt a resolution approving the proposed Project Nikita as a qualified
applicant to Florida's Qualified Target Industry (QTI) Tax Refund program, providing up to $560,000 of
local financial support for a corporate headquarters project which will create 560 new quality jobs in
Collier County,Florida.
Prepared by: Jace Kentner,Interim Director, Office of Business&Economic Development
Attachments: Resolution#2016-XX
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5/24/2016 11 .A.
COLLIER COUNTY
Board of County Commissioners
Item Number: 11.11.A.
Item Summary: Recommendation to adopt a resolution approving the proposed Project
Nikita as a qualified applicant to Florida' s Qualified Target Industry(QTI)Tax Refund program,
providing up to$560,000 of local financial support for a corporate headquarters project which
will create 560 new quality jobs in Collier County, Florida. (Jace Kentner, Office of Business and
Economic Development Interim Director)
Meeting Date: 5/24/2016
Prepared By
Approved By
Name: IsacksonMark
Title:Division Director-Corp Fin&Mgmt Svc, Office of Management&Budget
Date: 5/18/2016 12:54:14 PM
Name: KlatzkowJeff
Title: County Attorney,
Date: 5/18/2016 1:36:20 PM
Name: OchsLeo
Title: County Manager,County Managers Office
Date: 5/18/2016 3:50:45 PM
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5/24/2016 11 .A.
RESOLUTION NO. 2016 -
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
COLLIER COUNTY, FLORIDA, TO RECOMMEND THAT PROJECT
NIKITA BE APPROVED AS A QUALIFIED APPLICANT PURSUANT TO
SECTION 288.106 AND SECTION 288.108, FLORIDA STATUTES; AND
IDENTIFYING SOURCES OF LOCAL FINANCIAL SUPPORT IN AN
AMOUNT NOT TO EXCEED $560,000.00 AS LOCAL PARTICIPATION
IN THE QUALIFIED TARGET INDUSTRY TAX REFUND PROGRAM
FOR FISCAL YEAR(S)2017-2021.
WHEREAS, the Legislature of the State of Florida has enacted Chapter 94-136, Laws of
Florida, creating Section 288.106, Florida Statutes, and 288.1088, Florida Statutes, to encourage
the growth of Florida's high-value-added employment; and
WHEREAS, Section 288.106, Florida Statutes, authorizes the Florida Department of
Economic Opportunity to accept, review and approve applications for tax refunds to qualified
target industry businesses; and requires 20% local financial participation as tax refunds become
due; and
WHEREAS, the Company identified as Project Nikita will create 560 new qualifying
value-added jobs in five phases in Collier County; and
WHEREAS, the Company identified as Project Nikita, will provide high-wage, value-
added employment to Collier County citizens with average wages of $49,658 or 115% for
Qualified Target Industry;and
WHEREAS, the Board of County Commissioners finds that providing tax refunds and
other tax incentives to Project Nikita is vital to the public purpose of employing Collier County
citizens and ensuring the County's economic vitality; and
WHEREAS, Project Nikita has been identified as a Florida Target Industry Business,
falls within one of the high impact sectors designated under Section 288.108, Florida Statutes,
and therefore is eligible for a $2,000 per job High Impact Bonus under the Qualified Target
Industry Program.
NOW, THEREFORE BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA that the Board hereby recommends
that Project Nikita be approved as a Qualified Target Industry Business pursuant to Section
288.106, Florida Statutes and eligible for the High Impact Sector Bonus pursuant to Section
288.108. This recommendation is based upon the creation of the specified jobs and is contingent
upon Collier County's review of Project Nikita's final application to be a Qualified Target
Industry Business and confirmation of the information therein.
BE IT FURTHER RESOLVED that the necessary commitment of local financial support
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5/24/2016 11 .A.
for the Qualified Target Industry Business for the Qualified Target Industry Tax Refund Program
has been identified in an amount not to exceed $560,000; consisting of 100% of the local
contribution coming from Collier County subject to annual appropriations; and will be paid to
the Florida Economic Development Trust Fund as tax refunds become due with the stipulation
that these funds are intended to represent the local financial support required by Section 288.106,
Florida Statutes and are conditional upon the applicant meeting all requirements of the program
and Collier County.
THIS RESOLUTION ADOPTED after motion, second, and majority vote favoring same
this 24th day of May, 2016.
ATTEST: BOARD OF COUNTY COMMISSIONERS
DWIGHT E. BROCK, Clerk COLLIER COUNTY, FLORIDA
By: By:
,Deputy Clerk DONNA FIALA, CHAIRMAN
Appr ►v:• as. brr and legality:
ie..',
Jeffrey A. `;latzkow
County\
A }i rney
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