Agenda 07/12/2016 Item #16F 7 7/12/2016 16.F.7.
EXECUTIVE SUMMARY
Recommendation to approve the proposed Project Ice as a qualified applicant to Collier County's
Advanced Long-term Productivity Strategy Program ("ALPS"), providing up to $483,452 in
performance based high wage job creation incentives, spread over four years, for a corporate
headquarters project.
OBJECTIVE: To approve Project Ice as a qualified applicant for Collier County's Advanced
Long-term Productivity Strategy (ALPS) performance based high wage job creation economic
development incentive program.
CONSIDERATIONS:
On June 28, 2016, Agenda Item # 16.F.5 the Board of County Commissioners approved Project
Ice, as a qualified applicant, for the State of Florida Qualified Target Industries program (QTI).
Under the state QTI program, Project Ice is eligible for up to $399,000 in State financial
incentives. Collier County's local match for the QTI program would be up to $79,800 over five
years. Enterprise Florida Inc. brought the proposed project to Collier County in March 2016.
The corporate headquarters project will create 57 new jobs in Collier County, Florida, that will
provide high-wage, value-added employment in Collier County with an average annual wage of
$180,000 and benefits valued at approximately 23% of salaries. The estimated capital investment
is $1,500,000. This prospect has an alternative site available outside of Collier County and has
made participation in ALPS a required condition for further consideration of this headquarters
project in Collier County.
In addition to the local QTI incentive program, Project Ice has completed the ALPS application
to request funding from Collier County. The Board created the ALPS program on September 24,
2013, Agenda Item # 11.C, with an objective to expand Collier County's competitiveness in
attracting extraordinary high-value economic development projects that augment the County's
existing Qualified Targeted Industries program. The ALPS program encourages the creation of
high-skilled, high-wage jobs within Collier County and diversification of the economic base. It
also has the potential to enhance the number of corporate headquarters in Collier County and
new net earnings into our county's economy, while stimulating productivity. Employers must
adhere to all rules of the QTI program, but also must meet Collier County's ALPS requirements
regarding reporting compliance of average wage and job levels.
In order to receive the ALPS incentive, the prospect must create at least 25 new eligible jobs.
Project Ice would be eligible for the ALPS incentive if Project Ice creates at least 25 new jobs
with an average wage meeting or exceeding 150% ($64,772) of the County's average wage. A
two-tiered system determines the award amount. Tier One provides a bonus incentive equal to
1.000% of actual payroll for each of the eligible four years, provided that the project's aggregate
employment meets a minimum of 150% of the County's average wage and the minimum job-
creation threshold (25). Tier Two provides a bonus incentive equal to 1.063% of actual new
payroll for each of the eligible four years, provided that the project's aggregate employment
meets a minimum of 200% ($86,362) of the County's annual average wage and the minimum job
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creation threshold (25). Under ALPS, Project Ice is eligible for up to $483,452, spread over four
years.
If the Board approves the ALPS application, staff will return in the fall with an agreement
between the County and Project Ice for Board approval in accordance with the County's
procedures for ALPS incentives.
FISCAL IMPACT: The maximum cost to the County for this ALPS applicant is $483,452
spread over four years. The ALPS incentive may not exceed: $73,241 for FY 2017; $99,284 for
FY 2018; $142,974 for FY 2019; and $167,954 for FY 2020. Funding for Economic
Development Incentives is provided in the Economic Development Incentives budget within the
General Fund (001).
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. A majority vote
is needed for Board approval. —HFAC
RECOMMENDATION: That the Board approves the proposed Project Ice as a qualified
applicant to Collier County's Advanced Long-term Productivity Strategy Program, providing up
to $483,452 of performance based, high wage job creation incentives, spread over four years, for
a corporate headquarters project and directs the County Manager or his designee to bring back an
agreement for Board approval.
Prepared by: Jace Kentner, Interim Director, Office of Business &Economic Development
Attachments: Project Ice ALPS application, ALPS Incentive description and QTI Program
Overview
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7/12/2016 16.F.7.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.F.16.F.7.
Item Summary: Recommendation to approve the proposed Project Ice as a qualified
applicant to Collier County"s Advanced Long-term Productivity Strategy Program ("ALPS"),
providing up to$483,452 in performance based high wage job creation incentives, spread over
four years, for a corporate headquarters project.
Meeting Date: 7/12/2016
Prepared By
Name: BrockMaryJo
Title: Executive Secretary to County Manager, County Managers Office
7/5/2016 3:36:56 PM
Submitted by
Title: Executive Secretary to County Manager, County Managers Office
Name: BrockMaryJo
7/5/2016 3:36:58 PM
Approved By
Name: OchsLeo
Title: County Manager, County Managers Office
Date: 7/6/2016 3:07:27 PM
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7/12/2016 16.F.7.
COLLIER COUNTY
ADVANCED LONG-TERM PRODUCTIVITY STRATEGY
INCENTIVE APPLICATION
An affidavit certifying continued compliance of employment requirements for the term of the agreement is
required annually before incentive payments will be released.* Certification methods must be approved by
the County Manager and meet the equivalent validity of the Florida Department of Economic Opportunity
Form RT-6(Formerly UCT-6). Applications must be submitted prior to BCC approval of an applicant's local
match contribution for the State's Qualified Target Industry tax refund program.
Applicant Business name:
Contact&Phone: Bryan_(corporate Tax I I brYarIIIIIIIIIIIIIIIIIIII
Mailing address:
Federal Employer Identification# Florida Sales Tax Registration#
Project location(Collier only): Naples
Anticipated dates of project start and completion?(Application approval required prior to making decisions
to locate new business in Collier County) Start=>July 2016 I Completion=>December 2020(when new jobs arc hired)
Industry description: Corporate headquarters Industry NAICS codes: 551114
Description&types of new positions: Operations,product management,IT,HR.finance.accounting.marketing
Description of parent companies or corporate affiliations: Same as applicant business name
Total number of new positions to be created by the proposed project? 57 by Dec-2020
If positions are to be phased in, please provide dates employment will be complete for each phase.
3 in 2016 120 in 2017 14 in 2018115 in 201915 in 2020
Provide aggregate annual average wages of new positions created by NAICS grouping
515,800.000 by Dec-2020
Describe expansions to real & personal property including major capital investments by type of
investment: 5500,000 in leasehold improvements 15500,000 in computers&office equipment
5500,000 in furniture&fixtures
Describe why this incentive is needed or if it will impact the decision of the applicant whether to to a in
Collier County: The ALPS incentive is needed to help close the economic gap with a feasible alternative in
unities are competing for this project and what incentives are being offered?
Do you certify that all positions covered by by this application are bonafide new positions and have not
existed in any form in Collier County or any of its political subdivisions within 24 months?
Yes
List all other state and federal economic development or financial support:
OTI Program'Florida Flex
Has the applicant business ever been subjected to criminal or civil fines or penalties? No
'` e b w r hat the information contained in this application is accurate.
Em, lover 1 Business authorized agent
Submit applications and questions to: Collier County Office of Business and Economic Development,2660 N.
Horseshoe Dr.,Suite105,Naples FL,34104,Contact: Jace Kentner,(239)2524040.
Information and documents released to Collier County are subject to Public Disclosure Regulations.
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COLLIER COUNTY 2014
ADVANCED LONG-TERM PRODUCTIVITY STRATEGY
INCENTIVE APPLICATION
Note: This Program is meant to supplement the QTI program; consequently applicants must first meet all
of the requirements of the State .QTI Program. To be eligible, projects and businesses must adhere to all
rules of the.State's.QTI program and agree to the Collier specific requirements as a contingency for eligibility
in Collier County's Advanced Long Term Productivity Strategy Incentive.
Submit applications and questions to: Collier County Office of Business and Economic Development,2660 N.
Horseshoe Dr.,Suite905,Naples FL,34104.Contact: Jace Kentner,(239)252-4040.
Information and documents released to Collier County are subject to Public.Disclosure Regulations.
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ADVANCED LONG-TERM PRODUCTIVITY STRATEGY PROGRAM (ALPS)
PROGRAM DESCRIPTION& OVERVIEW
The Advanced Long-term Productivity Strategy Program(ALPS)is designed to expand Collier County's
competitiveness in attracting extraordinary high value economic development projects in order to augment
participation in the State of Florida's existing Qualified Targeted Industries (QTI)program. The program will
encourage the creation of high skilled/high wage jobs within Collier County and diversify the economic base in
Collier County. It also has the potential to enhance the number of corporate headquarters in Collier County
while stimulating productivity and net new earnings into our county's economy. In addition it will be a focal
point in aligning our objectives with those of our partners and local educational and training providers.
Advanced Long-term Productivity Strategy Incentive Program
Qualified applicants may participate in the ALPS Incentive if the project creates at least 25 new jobs whose
average wage meets or exceeds the 150%of the County's average wage(currently $59,958). A two tiered system
will determine the award amount. Tier One provides a bonus incentive equal to 1.000%of actual payroll for each of
four years provided that the project's aggregate employment meets a minimum of 150%of the State's average wage
and the minimum job creation threshold.Existing jobs of an expansion project are excluded if the applicant is an
existing business. Tier Two provides a bonus incentive equal to 1.063%of actual payroll for each of four years
provided that the project's aggregate employment meets a minimum of 200%of the State's average wage and the
minimum job creation threshold of 25 new jobs.Only 10 qualified jobs are required for jobs located in officially
designated distressed areas(brownfields and enterprise zones).All new jobs must be full-time equivalents working at
least 36 hours per week,and eligible for full benefits.
Employers must adhere to all rules of the State's QTI program, but also must meet Collier County's program
requirements regarding reporting compliance of average wage and job levels. To become eligible, applicants
must apply prior to commitment of intent, or change in land use or permitting applicants are submitted. The
BCC must approve all applicants; and administration of the Program will be conducted by the County Manager
or designated staff. Only official forms and procedures are deemed sufficient for application to this program.
To participate, applicants must execute a formal agreement with the County stipulating the terms of the award,
which must include, but is not limited to: the award amount,the monitoring and evaluation schedule, and the
payment schedule. The applicant must agree to annual verification and certification of job creation for each of
the 4 years it receives payments under the award. The first performance verification is due 18 months following
the execution of an agreement between the applicant and the County, allowing the applicant up to 18 months to
create the required number of jobs.Failure to maintain the required new jobs and the average aggregate wage at
any point over the four year payment period will result in the applicant forfeiting program eligibility.
General Program Requirements
To be eligible, projects and businesses must adhere to all rules of the State's QTI program and agree to the Collier
specific requirements as a contingency for eligibility in Collier County's Advanced Longterm Productivity Strategy
Incentive. A summary of qualifications includes but is not limited to:
• If applicable,applicants must notify Collier County of intent to apply to the County's Advanced Long-term
Productivity Strategy Program before Collier County approves the local match contribution to that project's State
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QTI application and in all cases the ALPS application must be approved by the BOCC prior to the project's
commitment of intent.
• New businesses or Expansions of existing businesses in Collier County must create at least 25 new jobs that meet
150%of the lowest of the County or State's annual average wage to qualify for Tier 1 and 200%to qualify for Tier
2.Tier 1 businesses are eligible to receive a grant equaling 1.00%of aggregate payroll;Tier 2 businesses are
eligible to receive a grant equaling 1.063%of aggregate payroll.Only new jobs created will be counted toward the
total payroll for the purpose of the award amount.
• Each new employee hire must be a full time equivalent working an average of 36 hours per week and eligible for
full benefits.
• Job creation requirement is reduced to 10 qualified new jobs in economically distressed areas.
• Applicants must execute an agreement with the County to participate in the program.The agreement must at a
minimum include the total award amount,the job and wage verification schedule,and the payment schedule.
• The level of new jobs and wages comprising the grant must be maintained and documented to be eligible for the
annual payment over the four(4)year term of the program. In addition,the applicant must agree to provide
sufficient evidence the new job and wage levels were maintained.
• The first performance verification is due 18 months from the execution of an agreement.
• Grant is disbursed over four annual installments,with aggregate payroll adjusted for inflation after the initial year
as compliance for each year is verified. Method of evidence verification will be substantiated by County-approved
records such as:IRS Form 941,Payroll Records,and a Florida Department of Revenue Employer's Quarterly
Report(UCT-6)Form for each new employee or an acceptable equally reliable substitute.
• The program is administered by the County Manager or his or her designee.
• The County Manager is responsible for developing all required forms,including the ALPS Program application
form.
• Award payments are subject to availability of funds.
Program Name Advancing Long-Term Productivity Strategy Incentive
QTI Augmentation
Type Grant
Award Made to Whom Eligible Target Industry Employers
Wage Requirement Tier One 150% of the lowest of County, MSA or State
Average Wage or$59,958; Tier Two 200% of the lowest
of County, State or MSA Average Wage or$79,944.
Number of Jobs Required 25
Capital Investment Requirement No
Expandable for Later Year Jobs Yes (Percentage of Payroll Captures Job Increases)
Available to Existing Industry Yes each of the new Jobs lasting Four years are eligible.
Available to New Industry Yes each of the new Jobs lasting Four years are eligible.
Available for Retention No
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Amount of.Award ._ Variable annual award equates to a %of payroll,
provided an average aggregate wage is met. Tier One-
Average wages equaling 150% yield a 1.0% of payroll
award; Tier Two-Average wages equaling 200% yield a
1.063% of payroll award. * Existing firm's annual award
will be based on segregated new job payroll, existing jobs
are excluded from calculation.
Agreement Required
Payout Schedule Paid in installments over four(4)years after each year's
performance is certified, each year's payroll is adjusted for
inflation over previous year. First annual performance
evaluation is due 18 months from execution of the
agreement.
Specified Use of Funds None
Local Support Required Yes- 100% paid by the County if jobs are located in
Unincorporated Collier County.
"But.for!! Incentive Applications must be submitted in advance of commitment
of intent, public announcements or any permit applications
changing usage or buildingoccupancy related to the
cte jobs
d
Eligible Industries/Business Activities Industries defined as Targeted Industries by Enterprise
Florida, Inc.
Ineligible Activity Any retail activities, elect. utility company, or phosphate or
solid minerals severance, mining or processing operation.
Distressed Area Exception Minimum Job eligibility threshold is reduced to 10 qualified
industry jobs in designated economically distressed areas.
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STATE OF FLORIDA QUALIFIED TARGET INDISTRY TAX REFUND PROGRAM
DESCRIPTION &OVERVIEW
The State of Florida's Qualified Target Industry Tax Refund Program (QTI) is designed to facilitate the
attraction of high-value, export industry jobs that generate new wealth and create jobs. The program
seeks to diversify Florida's economy by targeting certain industry clusters of strategic importance to the
state's economic diversity.
Qualified Target Industry Tax Refund Program
The Qualified Target Industry Tax Refund (QTI) program was created by the Legislature in 1994 to
encourage the recruitment or creation of higher-paying, higher-skilled jobs in the state by awarding
eligible businesses tax refunds in exchange for creating jobs in certain target industries. The refund
award level is based on wages paid, number of jobs created, and the location in the state that the
business chooses to locate or expand. The QTI program is set to expire on June 30, 2020, under current
law.
In order to qualify for the program, an applicant business must fall into one of Florida's target industry
categories,which are developed by DEO and Enterprise Florida, Inc. (EFI) and:
• Agree to create 10 new jobs or, if a Florida business is planning to expand its operations, agree to
create a net increase in employment of at least 10 percent. DEO may grant a waiver to an existing
business located in an enterprise zone or rural county.
• Agree to pay employees an annual average salary that is at least 115 percent of the average private
sector wage in the area or of the statewide private sector average wage. DEO may waive the wage
requirement for businesses that locate in a rural county or city, in an enterprise zone, or in a
Brownfield area or for a manufacturing project.
• Receive a commitment of a 20 percent local match. The form of the commitment must be included
in a resolution passed by the county commission of the county where the project will be located.
QTI Tax Refunds
The QTI program offers a tax refund of $3,000 per created job. The per-job tax refund increases to
$6,000 if the business is located within a rural county or an enterprise zone. The program allows for
additional tax refunds beyond the standard awards:
• $1,000 per job if the business pays an average annual wage of at least 150 percent of the average
private sector wage in the area the project is located;
• $2,000 per job if the business pays an average annual wage of at least 200 percent of the average
private sector wage in the area the project is located;
• $1,000 per job if the local financial support is equal to that of the state's incentive award; and
• $2,000 per job if the business falls within one of the high-impact sectors designated under s.
288.108, F.5., or increases exports of its goods through a seaport or airport in the state by at least 10
percent in value or tonnage in each of the years that the business receives a tax refund.
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QTI businesses may not receive more than $1.5 million in refunds in a single fiscal year, or more than
$2.5 million if the project is located in an enterprise zone.
QTI businesses may claim refunds from one or more of the following taxes paid:
• Sales and use tax;
• Documentary stamp tax;
• Ad valorem taxes;
• Corporate income taxes;
• Insurance premium taxes;
• Intangible personal property taxes; and
• Certain state communications services taxes under Ch. 202, F.S.
Local Matching Program Requirements
• The BCC approves a 20% local match of the total QTI award.
• The BCC must approve the type of funding through passage of a resolution of support.
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