Agenda 05/24/2016 Item #11B 5/24/2016 11 .B.
EXECUTIVE SUMMARY
Recommendation to approve a matching commitment of cash or in-kind services for the
proposed Project Nikita as a qualified applicant for the Quick Action Closing Fund
(QACF),providing up to $600,000 of local financial support for the 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
Quick Action Closing Fund(QACF).
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
$54,000 and average annual benefits of$17,000. The estimated capital investment is $63,350,000. This
prospect has alternative sites available and has made participation in the QACF program a condition for
further consideration of locating such a project at a Collier County site.
In order to receive funds, the prospect must create the number of new jobs contracted with the Florida
Department of Economic Opportunity (DEO) and provide wages averaging at least 125% of the County
average wage for each year of the agreement. Enterprise Florida, Inc. has offered $2,500,000 to Project
Nikita under the QACF program. The State program administrators have requested that the local
community provide a minimum 24% local match of cash or in-kind services for a total State and County
QACF incentive of $3,100,000. Upon final approval and execution of the Enterprise Florida, Inc.
agreement,the County would enter into separate local agreement with the applicant for up to $600,000 of
cash or in-kind commitments using the same or similar performance measures as the State program. A
copy of which is attached for reference. If Project Nikita fulfills the contractual obligations for the capital
investment and quality job creation, the County would pay 100% of the local match for this application
which would be up to $600,000 total spread over the term of the agreement. The source of the County's
match under the QACF can be cash,real estate conveyed,construction, services,and impact fee refunds.
FISCAL IMPACT: The maximum cost to the County for this QACF applicant is $600,000 spread over
the term of the agreement, anticipated to begin in FY 2018. Funding for Economic Development
Incentives is available in Economic Development Fund 001.
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: To approve a matching commitment of cash or in-kind services for the
proposed Project Nikita as a qualified applicant for the Quick Action Closing Fund(QACF),providing up
to $600,000 of local financial support for the 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
Attachment:DEO sample of payment and performance conditions
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COLLIER COUNTY
Board of County Commissioners
Item Number: 11.11.B.
Item Summary: Recommendation to approve a matching commitment of cash or in-kind
services for the proposed Project Nikita as a qualified applicant for the Quick Action Closing
Fund (QACF), providing up to $600,000 of local financial support for the corporate headquarters
project which will create 560 new quality jobs in Collier County, Florida. (lace Kentner, Office of
Business and Economic Development Interim Director)
Meeting Date: 5/24/2016
Prepared By
Name: BrockMaryJo
Title:Executive Secretary to County Manager,County Managers Office
5/17/2016 4:29:53 PM
Submitted by
Title:Executive Secretary to County Manager,County Managers Office
Name: BrockMaryJo
5/17/2016 4:29:55 PM
Approved By
Name: OchsLeo
Title: County Manager,County Managers Office
Date: 5/18/2016 3:57:47 PM
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5/24/2016 11 .B.
EXHIBIT A
PAYMENT AND PERFORMANCE CONDITIONS
Escrow Deposit Conditions
The Division of Strategic Business Development of the Florida Department of Economic
Opportunity ("DEO") will cause $2,500,000 (the "Award") to be deposited into an escrow
account (the "Escrow Account") managed by Enterprise Florida, Inc. ("EFI"), subject to the
satisfaction of the following conditions:
1. Execution and delivery of a Closing Fund Agreement("Closing Fund Agreement")by
and between DEO and(the"Company"); and
2. Execution and delivery of an Escrow Agreement, by and among DEO, EFI, and the
Company.
Payment Conditions
First Payment Conditions
Subject to the terms and conditions of the Closing Fund Agreement, with DEO's approval, EFI
will disburse $100,000 from the Escrow Account to the Company contingent on the Company's
satisfaction of the following conditions by December 31, 2017 (as such date may be extended
pursuant to the Closing Fund Agreement,the"First Performance Date"):
1. A public announcement by the Company that the Project will be located in Naples, Florida;
2. The Company must have created at least 150 net new-to-Florida full-time-equivalent paying
at least $54,000 (the "Project Wage") in connection with the Project at the Project's location
in Naples, Florida; and
3. A private capital investment of at least $5,000,000 (excluding the acquisition or leasing of
real property)must have been made by or on behalf of the Company in connection with the
Project in Naples, Florida.
Second Payment Conditions
Subject to the terms and conditions of the Closing Fund Agreement, with DEO's approval, EFI
will disburse $200,000 from the Escrow Account to the Company contingent on the Company's
satisfaction of the following conditions by December 31, 2018 (as such date may be extended
pursuant to the Closing Fund Agreement,the"Second Performance Date"):
1. The Company must have created at least 110 additional net new-to-Florida full-time-
equivalent jobs for an aggregate of at least 260 net new-to-Florida full-time-equivalent
paying at least the Project Wage in connection with the Project in Naples, Florida; and
2. An additional private capital investment of at least $10,000,000 for an aggregate private
capital investment of at least $15,000,000 (excluding the acquisition or leasing of real
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property)must have been maintained by or on behalf of the Company in connection with the
Project in Naples, Florida.
Third Payment Conditions
Subject to the terms and conditions of the Closing Fund Agreement, with DEO's approval, EFI
will disburse $280,000 from the Escrow Account to the Company contingent on the Company's
satisfaction of the following conditions by December 31, 2019 (as such date may be extended
pursuant to the Closing Fund Agreement,the"Third Performance Date"):
1. The Company must have created at least 120 additional net new-to-Florida full-time-
equivalent jobs for an aggregate of at least 380 net new-to-Florida full-time-equivalent
paying at least the Project Wage in connection with the Project in Naples, Florida; and
2. An additional private capital investment of at least $38,250,000 for an aggregate private
capital investment of at least $53,250,000 (excluding the acquisition or leasing of real
property)must have been maintained by or on behalf of the Company in connection with the
Project in Naples, Florida.
Fourth Payment Conditions
Subject to the terms and conditions of the Closing Fund Agreement, with DEO's approval, EFI
will disburse $370,000 from the Escrow Account to the Company contingent on the Company's
satisfaction of the following conditions by December 31, 2020 (as such date may be extended
pursuant to the Closing Fund Agreement,the "Fourth Performance Date"):
1. The Company must have created at least 130 additional net new-to-Florida full-time-
equivalent jobs for an aggregate of at least 510 net new-to-Florida full-time-equivalent
paying at least the Project Wage in connection with the Project in Naples, Florida; and
2. An additional private capital investment of at least $10,100,000 for an aggregate private
capital investment of at least $63,350,000 (excluding the acquisition or leasing of real
property)must have been maintained by or on behalf of the Company in connection with the
Project in Naples, Florida.
Fifth Payment Conditions
Subject to the terms and conditions of the Closing Fund Agreement, with DEO's approval, EFI
will disburse $400,000 from the Escrow Account to the Company contingent on the Company's
satisfaction of the following conditions by December 31, 2021 (as such date may be extended
pursuant to the Closing Fund Agreement,the"Fifth Performance Date"):
1. The Company must have created at least 50 additional net new-to-Florida full-time-
equivalent jobs for an aggregate of at least 560 net new-to-Florida full-time-equivalent (and
collectively the "Project Jobs") paying at least the Project Wage in connection with the
Project in Naples, Florida; and
2. An aggregate private capital investment of at least $63,350,000 (excluding the disposition or
disposal of personal property beyond its useful life) must have been maintained by or on
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behalf of the Company in connection with the Project in Naples, Florida.
Sixth Payment Conditions
Subject to the terms and conditions of the Closing Fund Agreement, with DEO's approval, EFI
will disburse $400,000 from the Escrow Account to the Company contingent on the Company's
satisfaction of the following conditions by December 31, 2022 (as such date may be extended
pursuant to the Closing Fund Agreement,the"Sixth Performance Date"):
1. The Company must provide evidence to DEO to DEO's reasonable satisfaction that it has
maintained the Project Jobs paying at least the Project Wage in connection with the Project
in Naples,Florida; and
2. An aggregate private capital investment of at least $63,350,000 (excluding the disposition or
disposal of personal property beyond its useful life) must have been maintained by or on
behalf of the Company in connection with the Project in Naples, Florida.
Seventh Payment Conditions
Subject to the terms and conditions of the Closing Fund Agreement, with DEO's approval, EFI
will disburse $375,000 from the Escrow Account to the Company contingent on the Company's
satisfaction of the following conditions by December 31, 2023 (as such date may be extended
pursuant to the Closing Fund Agreement,the "Seventh Performance Date"):
1. The Company must provide evidence to DEO to DEO's reasonable satisfaction that it has
maintained the Project Jobs paying at least the Project Wage in connection with the Project
in Naples, Florida; and
2. An aggregate private capital investment of at least $63,350,000 (excluding the disposition or
disposal of personal property beyond its useful life) must have been maintained by or on
behalf of the Company in connection with the Project in Naples, Florida.
Eighth Payment Conditions
Subject to the terms and conditions of the Closing Fund Agreement, with DEO's approval, EFI
will disburse $375,000 from the Escrow Account to the Company contingent on the Company
providing evidence to DEO to DEO's reasonable satisfaction that it has maintained the Project
Jobs paying at least the Project Wage in connection with the Project in Naples, Florida by
December 31, 2024 (as such date may be extended pursuant to the Closing Fund Agreement, the
"Eighth Performance Date" and collectively the "Performance Dates").
Performance Conditions
Subject to the terms and conditions of the Closing Fund Agreement, the Company must satisfy
the following performance conditions to avoid sanctions in accordance with the Closing Fund
Agreement:
1. The Company must provide evidence to DEO to DEO's reasonable satisfaction that the
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Company has created at least 150 net new-to-Florida full-time equivalent jobs paying at least
the Project Wage in connection with the Project at the Project's location in Naples, Florida
by December 31, 2017;
2. The Company must provide evidence to DEO to DEO's reasonable satisfaction that the
Company has created at least 110 net new-to-Florida full-time equivalent jobs for an
aggregate of at least 260 Project Jobs paying at least the Project Wage in connection with the
Project at the Project's location in Naples, Florida by December 31, 2018;
3. The Company must provide evidence to DEO to DEO's reasonable satisfaction that the
Company has created at least 120 net new-to-Florida full-time equivalent jobs for an
aggregate of at least 380 Project Jobs paying at least the Project Wage in connection with the
Project at the Project's location in Naples, Florida by December 31, 2019;
4. The Company must provide evidence to DEO to DEO's reasonable satisfaction that the
Company has created at least 130 net new-to-Florida full-time equivalent jobs for an
aggregate of at least 510 Project Jobs paying at least the Project Wage in connection with the
Project at the Project's location in Naples, Florida by December 31,2020;
5. The Company must provide evidence to DEO to DEO's reasonable satisfaction that the
Company has created at least 50 net new-to-Florida full-time equivalent jobs for an
aggregate of at least 560 Project Jobs paying at least the Project Wage in connection with the
Project at the Project's location in Naples, Florida by December 31, 2021;
6. The Company must provide evidence to DEO to DEO's reasonable satisfaction that the
Company has maintained the Project Jobs paying the Project Wage in connection with the
Project at the Project's location in Naples, Florida from January 1, 2022 until at least
December 31, 2024;
7. The Company must provide evidence to DEO to DEO's reasonable satisfaction that a private
capital investment of at least $1,000,000 (excluding the acquisition or leasing of real
property) has been made by the Company in connection with the Project in Naples, Florida
by December 31, 2016;
8. The Company must provide evidence to DEO to DEO's reasonable satisfaction that a private
capital investment of at least $4,000,000 for an aggregate private capital investment of at
least $5,000,000 (excluding the acquisition or leasing of real property)has been made by the
Company in connection with the Project in Naples, Florida by December 31, 2017;
9. The Company must provide evidence to DEO to DEO's reasonable satisfaction that a private
capital investment of at least $10,000,000 for an aggregate private capital investment of at
least $15,000,000 (excluding the acquisition or leasing of real property) has been made by
the Company in connection with the Project in Naples, Florida by December 31, 2018;
10. The Company must provide evidence to DEO to DEO's reasonable satisfaction that a private
capital investment of at least $38,250,000 for an aggregate private capital investment of at
least $53,250,000 (excluding the acquisition or leasing of real property) has been made by
the Company in connection with the Project in Naples, Florida by December 31, 2019;
11. The Company must provide evidence to DEO to DEO's reasonable satisfaction that a private
capital investment of at least $10,100,000 for an aggregate private capital investment of at
least $63,350,000 (excluding the acquisition or leasing of real property) has been made by
the Company in connection with the Project in Naples, Florida by December 31, 2020; and
12. The Company must provide evidence to DEO to DEO's reasonable satisfaction that a private
capital investment of at least $63,350,000 (excluding the disposition or disposal of personal
property beyond its useful life in the ordinary course of business) has been maintained in
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connection with the Project in Naples, Florida from January 1, 2021 until December 31,
2023.
Standard sanctions including the reduction or claw back of all or a portion of the QACF Award
plus interest will be set forth in the Closing Fund Agreement.
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