Agenda 07/12/2016 Item #16F10 7/12/2016 16.F.10.
EXECUTIVE SUMMARY
Recommendation to approve the attached agreement with Project Nikita which provides for up to
$600,000 of local financial support for the Florida Quick Action Closing Fund (QACF) economic
development incentive inducing the corporate headquarters project which will create 560 new
quality jobs in Collier County.
OBJECTIVE: That the Board of County Commissioners (Board) approves the economic development
financial incentive agreement to induce the corporate headquarters project which will create 560 new
quality jobs in Collier County.
CONSIDERATIONS: On May 24, 2016, Agenda Item #11.B, the Board approved Project Nikita as a
qualified applicant for the QACF. Since that approval, the Department of Economic Opportunity through
Enterprise Florida, Inc. has finalized their agreement. Per F.S. 288.075, the agreement remains
confidential until such time that all agreements have been executed by the entity, the State, and the local
government.
The corporate headquarters project anticipates creating 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 million
dollars. 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.
Under the Agreement in order to receive closing fund dollars, Project Nikita 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. Project Nikita has
entered into an Agreement with the DEO which provides $2,500,000 in state funding under the QACF
program. The QACF program requested that Collier County provide a local match of up to $600,000, to
augment the State's $2,500,000 investment for a total Closing Fund related incentive of$3,100,000. This
local match is paid to the applicant, not the state. In order to structure our agreement for compliance with
the State agreement and to maintain consistency with performance measures, our agreement is based on
following the State's payment schedule with a prorated payout not to exceed $600,000. In other words as
Project Nikita satisfies State requirements and receives payment from the State, Collier County will fund
their portion within 30 days.
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 $600,000 total spread over five years. The
source of the County's match under the QACF can be cash, real estate conveyed, and impact fee refunds.
The County's agreement will remain confidential until such time that Project Nikita executes the
agreement and the Board, through delegation to the County Manager, endorses the same. Project Nikita
anticipates finalizing this agreement in conjunction with a public announcement to establish their
corporate headquarters in Collier County.
FISCAL IMPACT: The maximum cost to the County for this QACF applicant is $600,000 spread over
five years, anticipated to begin in FY 2018. Funding for Economic Development Incentives is available
in Economic Development Fund 001 and Fund 007.
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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 has been reviewed by the County Attorney. Florida Statutes
Section 288.075 provides, in relevant part,that"If a private corporation,partnership, or person requests in
writing before an economic incentive agreement is signed that an economic development agency maintain
the confidentiality of information concerning plans, intentions, or interests of such private corporation,
partnership, or person to locate, relocate, or expand any of its business activities in this state, the
information is confidential and exempt from s. 119.07(1) and s. 24(a), Art. I of the State Constitution for
12 months after the date an economic development agency receives a request for confidentiality or until
the information is otherwise disclosed, whichever occurs first." At this moment in time, the applicant
known as Project Nikita wishes to remain anonymous in order to maintain confidentiality. Should the
applicant elect to enter into the proposed agreement, at such time its name will be disclosed. It is the
recommendation of the County Attorney that the Board authorizes the County Manager to enter into this
Agreement on behalf of the County during the Board's summer recess should the applicant elect to move
forward, and that the Board further authorizes the County Manager to finalize and make changes to the
proposed agreement,provided that the essential terms that this will be a 24%match of the State incentives
up to $600,000 remain. With that noted, this item is approved as to form and legality, and requires
majority vote for approval.-JAK
RECOMMENDATION: That the Board approves the attached agreement with Project Nikita which
provides for up to $600,000 of local financial support for the Florida Quick Action Closing Fund (QACF)
economic development incentive inducing the corporate headquarters project which will create 560 new
quality jobs in Collier County, and delegates signature authority to the County Manager in order to
preserve confidentiality until such time a public announcement has been made.
Prepared by: Jace Kentner,Interim Director, Office of Business &Economic Development
Attachment: County QACF Agreement
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7/12/2016 16.F.10.
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.16.F.16.F.10.
Item Summary: Recommendation to approve the attached agreement with Project Nikita
which provides for up to $600,000 of local financial support for the Florida Quick Action Closing
Fund (QACF) economic development incentive inducing the corporate headquarters project
which will create 560 new quality jobs in Collier County.
Meeting Date: 7/12/2016
Prepared By
Name: BrockMaryJo
Title: Executive Secretary to County Manager, County Managers Office
7/5/2016 4:43:14 PM
Submitted by
Title: Executive Secretary to County Manager, County Managers Office
Name: BrockMaryJo
7/5/2016 4:43:16 PM
Approved By
Name: OchsLeo
Title: County Manager, County Managers Office
Date: 7/6/2016 5:08:58 PM
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7/12/2016 16.F.10.
LOCAL CONTRIBUTION AGREEMENT
This Agreement for local contribution (hereinafter referred to as "Agreement") is entered
into this day of July, 2016, 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 Project Nikita, a Delaware corporation (hereinafter jointly referred to as "Project
Nikita" or "Company"), and any Subsidiary Closing Fund Awardee and Affiliate Closing Fund
Awardee (as such terms are hereinafter defined) (collectively with the Company, the "Closing
Fund Awardee").
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, Project Nikita has proposed its corporate headquarters in Naples, Collier
County, Florida ("Project"). The 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 $54,000 and average annual benefits of $17,000. The estimated capital
investment is $63,350,000 million dollars.
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The Project's operation and directly related employment support diversification of Collier
County's economy and growth in high technology jobs for Collier Citizens; and
WHEREAS, Project Nikita has identified alternative sites available in other States and
has made receipt of the Quick Action Closing Fund incentive a condition for further
consideration of locating the Project at a Collier County site; and
WHEREAS, the County expressly finds that the Project will result in substantial
economic benefits to the County, including but not limited to the creation of high wage jobs and
an increase to the County's tax base, and that such economic benefits will continue to flow to the
County as long as Project Nikita remains open, as measured by continued operation and annual
payment of its local tax liabilities; and
WHEREAS, Collier County finds it is in the public interest to facilitate the growth of
Project Nikita's Targeted Industry Business expansion as defined in F.S. 288.106 in Collier
County and provide support of Project Nikita; and
WHEREAS, based on the Project Nikita's Application and the Quick Action Closing
Fund attachment to the Application and any amendments thereto (collectively, the "Application")
submitted by or on behalf of the Company (in such capacity, the "Applicant"), the Florida
Division of Strategic Business Development of the Florida Department of Economic Opportunity
("DSBD") recommended Applicant to the Governor of the State of Florida for an award from the
Quick Action Closing Fund (the "Closing Fund") pursuant to Section 288.1088 of the Florida
Statutes, which the Governor approved as of June 27, 2016 following the expiration of the
legislative consultation period pursuant to Section 288.1088(3)(c)(3) of the Florida Statutes (the
"Approval Date"); and
WHEREAS, DSBD and Project Nikita entered into a Quick Action Closing Fund
Agreement on June 28, 2016 ("QACF Agreement"). The QACF Agreement is subject to
confidentiality for a period of days after execution. Upon the expiration of the confidentiality of
the QACF Agreement it shall become Exhibit A hereto; and
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WHEREAS, the Closing Fund program has requested that Collier County provide a local
contribution or local match of up to $600,000, 24% of DSBD's $2,500,000 for a total Closing
Fund related incentive of$3,100,000. This local match is paid to Applicant, not the state.
NOW, THEREFORE, in consideration of the foregoing Recitals, and other good and
valuable consideration, the receipt and sufficiency of which is hereby mutually acknowledged,
the Parties agree as follows:
1. The foregoing Recitals are true and correct and are incorporated by reference
herein.
2. The QACF Agreement provides for a number of performance based Award
Payments by the State to Project Nikita. Project Nikita shall provide County a copy of proof of
each of these Award Payments. Within 30 days of receipt of such proof, the County shall
provide Project Nikita with a payment equal to 24% of the Award Payment, with total payments
under this agreement by the County not to exceed $600,000.
3. The County shall rely on the State's issuance of each Award Payment as proof
that Project Nikita has met all of the required terms and conditions under the QACF Agreement,
and no further proof that Project Nikita has met these terms and conditions will be required by
the County.
4. This Agreement will terminate upon the termination of the State Agreement, and
in such an event, neither party will have any further obligation to the other.
5. Project Nikita understands and agrees that there is no defined funding source for
this Project, and as such these grants are subject to annual appropriation.
Legal Matters
6. This Agreement shall not constitute a lien on the property.
7. Except as otherwise provided herein, this Agreement shall only be amended by
mutual written consent of the parties hereto or by their successors in interest.
8. This Agreement constitutes the entire agreement between the parties with respect
to the activities noted herein and supersedes and takes the place of any and all previous
agreements entered into between the parties hereto relating to the transactions contemplated
herein. All prior representations, undertakings, and agreements by or between the parties hereto
with respect to the subject matter of this Agreement are merged into, and expressed in, this
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Agreement, and any and all prior representations, undertakings, and agreements by and between
such parties with respect thereto hereby are canceled.
9. Nothing contained herein shall be deemed or construed to create between or
among any of the parties any joint venture or partnership nor otherwise grant to one another the
right, authority or power to bind any other party hereto to any agreement whatsoever. This
Agreement is personal to Project Nikita, and as such cannot be assigned or transferred by Project
Nikita without the prior written consent from the County.
10. This Agreement shall be governed by and construed under the laws of the State of
Florida. In the event of any dispute under this Agreement, the parties shall attempt to resolve
such dispute first by means of the County's then-current Alternative Dispute Resolution
Procedure, if any. Following the conclusion of such procedure, if any, either party may file an
action for injunctive relief in the Circuit Court of Collier County to enforce the terms of this
Agreement, and remedy being cumulative with any and all other remedies available to the parties
for the enforcement of the Agreement.
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