Agenda 09/27/2016 Item #16F6 16.F.6
09/27/2016
EXECUTIVE SUMMARY
Recommendation to approve an Agreement between the Board of County Commissioners and
Project Ice for the Advanced Long-term Productivity Program ("ALPS") Economic Incentive
Award, consistent with the Board's prior approval of Project Ice as a qualified applicant for this
award.
OBJECTIVE: That the Board of County Commissioners approves the Agreement for the Advanced
Long-term Productivity Program between Collier County, Florida, and Project Ice.
CONSIDERATIONS: On July 12, 2016,Agenda Item 16.F.7. (Attachment), the Board of County
Commissioners approved 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. Enterprise
Florida brought the proposed project to Collier County in March 2016. The corporate headquarters
project will create 57 new jobs which 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
company's 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.
The attached agreement outlines the terms and conditions for receipt of the award. Project Ice would be
eligible for the ALPS incentive if at least 25 new jobs are created 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 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 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 creation threshold(25). Project Ice has committed to the creation of 57 new jobs under
ALPS. However, Project Ice has indicated that 25 jobs will not be created until year 3 of the Agreement
and is requesting waiver of the ALPS minimum job creation of 25 new jobs before the County will begin
payment of the ALPS incentive. Project Ice requests payment to commence year 2 of the agreement after
the creation of 23 new jobs.
The applicant has requested the Board to approve the ALPS Agreement confidentially under the name
Project Ice. The applicant will announce its name in the near future as it concludes its planning related to
its commitments made in the ALPS Agreement.
FISCAL IMPACT: The maximum cost to the County for this ALPS applicant is $483,452 spread over
four years. 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: 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
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16.F.6
09/27/2016
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 Florida
Statutes Section 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 Ice 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 and inserted in the agreement in place of
Project Ice. This item is approved as to form and legality, and requires majority vote for approval. -
HFAC
RECOMMENDATION: To approve an Agreement between the Board of County Commissioners and
Project Ice for the Advanced Long-term Productivity Program("ALPS") Economic Incentive Award,
consistent with the Board's prior approval of Project Ice as a qualified applicant for this award, and
waiver of the ALPS minimum job creation of 25 new jobs before the County will begin payment of the
ALPS incentive. Payment will commence under the Agreement after the creation of 23 new jobs.
Prepared by: Jace Kentner, Interim Director, Office of Business &Economic Development
ATTACHMENT(S)
1.Project Ice July 12 2016 16F7 (DOC)
2.Project Ice ALPS agreement CAO initialed (PDF)
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16.F.6
09/27/2016
COLLIER COUNTY
Board of County Commissioners
Item Number: 16.F.6
Item Summary: Recommendation to approve an Agreement between the Board of County
Commissioners and Project Ice for the Advanced Long-term Productivity Program ("ALPS") Economic
Incentive Award, consistent with the Board's prior approval of Project Ice as a qualified applicant for this
award.
Meeting Date: 09/27/2016
Prepared by:
Title: Administrative Assistant—Business and Economic Development
Name: Jennifer Leslie
09/20/2016 9:16 AM
Submitted by:
Title: Economic Research Analyst—Business and Economic Development
Name: Jace Kentner
09/20/2016 9:16 AM
Approved By:
Review:
County Attorneys Office Heidi Ashton-Cicko Level 2 Attorney of Record Review Completed 09/20/2016 9:34 AM
County Attorneys Office Jeffrey A.Klatzkow Level 3 County Attorneys Office Review Completed 09/20/2016 2:53 PM
Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 09/20/2016 3:20 PM
Budget and Management Office Ed Finn Level 3 OMB 1st Reviewer 1-4 Completed 09/20/2016 5:08 PM
County Manager's Office Nick Casalanguida Level 4 County Manager Review Completed 09/21/2016 9:08 AM
Board of County Commissioners MaryJo Brock Meeting Pending 09/27/2016 9:00 AM
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I6.F.6.a
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.
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CONSIDERATIONS:
On June 28, 2016, Agenda Item # I 6.F.5 the Board of County Commissioners approved Project a
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. o
The corporate headquarters project will create 57 new jobs in Collier County, Florida, that will a
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 N
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 o
also has the potential to enhance the number of corporate headquarters in Collier County and a.
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 E
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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I6.F.6.a
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 c
General Fund(001).
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GROWTH MANAGEMENT IMPACT: This request is consistent with Objective 3 of the
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Economic Element of the Collier County Growth Management Plan which states: "Collier a
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."
a)
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LEGAL CONSIDERATIONS: This item is approved as to form and legality. A majority vote
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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 i
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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. N
Prepared by: Jace Kentner, Interim Director, Office of Business &Economic Development j
Attachments: Project Ice ALPS application,ALPS Incentive description and QTI Program
Overview
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ADVANCED LONG-TERM PRODUCTIVITY STRATEGY PROGRAM AGREEMENT
This Agreement for Advanced Long-term Productivity Strategy Program ("ALPS")
Program (hereinafter referred to as "Agreement") is entered into this day of September,
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 Ice, a
corporation (hereinafter referred to as"Project Ice").
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RECITALS:
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WHEREAS, Collier County enjoys broad Home Rule Powers, which include the
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authority to enter into agreements to enhance economic development within the County; and z
WHEREAS, Sections 125.045(2) and (3), Florida Statutes, expressly provide 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 p
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 rn
to: developing or improving local infrastructure, issuing bonds to finance or refinance the cost of a
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
a.
WHEREAS, Collier County created the Advanced Long-term Productivity Strategy
Program ("ALPS") on September 24, 2013, with an objective to expand Collier County's r
competitiveness in attracting extraordinary high value economic development projects that
augment our existing Qualified Target Industries (QTI) program. The program encourages the
creation of high-skilled/high-wage jobs within Collier County and diversification of the
economic base in Collier County. It also has the potential to enhance the number of corporate
headquarters in Collier County and net new earnings into our county's economy, while
stimulating productivity; and
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16.F.6.b
WHEREAS, Project Ice has applied for the County's ALPS program as a financial
incentive for the inducement of"Project Ice" consisting of expanding its corporate headquarters.
Project Ice is a company denoted by North American Industry Classification
System 2012 (NAICS),Number (hereinafter referred to as "Project"), and creating
57 jobs within 5 years; and
WHEREAS, on June 28, 2016 by Resolution No. 2016-144, the Board of County a
Commissioners approved Project Ice as a qualified applicant for the County's QTI program; and
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WHEREAS, on July 8, 2016, the State of Florida approved Project Ice for the State's
Qualified Target Industry Tax Refund Program; and
WHEREAS, Project Ice estimates that this Project will require it to expend
approximately $1,500,000 in capital improvements, consisting of leasehold improvements and
tangible personal property for the headquarters facility; and N
WHEREAS, the Board expressly finds that assistance to expand the employment
opportunities provided by this target industry business will result in substantial economic
benefits to the County, including but not limited to the creation of quality jobs and a net increase 0
to the County's tax base; and
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WHEREAS, Collier County finds it is in the public interest to facilitate the growth of
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Project Ice's Targeted Industry Business expansion as defined in Section 288.106, Florida a
Statutes and desires to enter into this Agreement to fund Project Ice in accordance with the
County's ALPS program. a
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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: Q
1. The foregoing Recitals are true and correct and are incorporated by reference
herein.
2. Payment. The Board agrees to fund Project Ice in an amount not to exceed
$483,452, subject to the terms of this Agreement. Payments shall be made in 4 annual
installments and calculated pursuant to Section 3. The County shall pay Project Ice the annual
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ALPS incentive within 30 days of each performance verification by the Collier County Clerk of
Courts. Verification shall be based on a review of the documentation submitted by Project Ice
pursuant to Section 5 and review of the Project Ice records described in Section 6.
3. Payment Calculation: Annual payments shall be calculated based on the actual new
payroll times the ALP's Tier One or Tier Two multiplier (based on the percentage of the
County's average annual wage that Project Ice's wages are determined to be). Tier One provides
a bonus incentive equal to 1.000% of actual new payroll for each of four years, provided that the
project's average annual wage meets a minimum of 150% of the lowest of the County's average
wage and the minimum job-creation threshold. Tier Two provides a bonus incentive equal to
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1.063% of actual new payroll for each of four years, provided that the project's average annual
wage meets a minimum of 200% ($86,362) of the County's annual average wage and the
minimum job creation threshold. Should at any time over the term of this Agreement the new o
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actual payroll amounts are less than set forth in Section 4, the County Manager or his designee a
will authorize a lesser sum be paid based on the verified new actual payroll for such payment N
period. This diminution of incentive funds shall be the County's sole remedy should Project Ice
not meet the scheduled job creation and new actual payroll amounts. Project Ice understands and $
agrees that there is no defined funding source for this Project, and as such these grants are
subject to annual appropriation.
4. Job Creation and Wages: Over a period of four years commencing with the
execution of this Agreement, Project Ice will endeavor to create a minimum of 57 eligible jobs.
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The job creation schedule shall consist of the following: a
• 3 jobs created in FY 2016,
• 20 eligible jobs created in FY 2017, with average wages meeting or exceeding
200% ($86,362) of the County's annual average wage and new actual payroll of 0-
$5,720,000.
$5,720,000. The ALPS incentive may not exceed$73,241 for FY 2017.
• 14 eligible jobs created in FY 2018, with average wages meeting or exceeding
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200% ($86,362) of the County's annual average wage and new actual payroll of
$9,340,000. The ALPS incentive may not exceed $99,284 for FY 2018.
• 15 eligible jobs created in FY 2019, with average wages meeting or exceeding
200% ($86,362) of the County's annual average wage and new actual payroll of
$13,450,000. The ALPS incentive may not exceed $142,974 for FY 2019.
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• 5 eligible jobs created in FY 2020, with average wages meeting or exceeding
200% ($86,362) of the County's annual average wage and new actual payroll of
$15,800,000. The ALPS incentive may not exceed$167,954 for FY 2020.
For purposes of this Agreement,the fiscal year("FY") shall be July 1 thru June 30.
5. Monitoring and Evaluation. Project Ice shall submit each year, before July 31, an
annual verification and certification of job creation, on a form acceptable to the County. Each
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annual verification shall also provide sufficient evidence that new job and wage levels were d
maintained. The County may require IRS Form 941, Payroll Records, and a Florida Department
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of Revenue Employer's Quarterly Report (UCT-6) Form for each new employee, or an
acceptable equally reliable substitute. The first verification and certification of job creation is
due 18 months from the execution of this Agreement and shall occur annually through FY 2020
concurrent with the State of Florida's existing Qualified Targeted Industries (QT1) program a`
verifications to minimize the cost of administration of this ALPS.
6. Access to Records. As a precondition to each payment by County, Project Ice shall
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give the County, including the Collier County Clerk of Courts, reasonable access to review its r
business records relevant to Project Ice's performance under this Agreement, which are required o
to certify the newly created jobs, including wages. Project Ice shall be given 10 business days
prior written notice of this review. For the duration of this contract, any documents or copies of
a)
documents retained by the County that are held as evidence of the employment and wage
requirements of this contract, and that contain any individual employee's personal identifying a
information, will be confidential,in accordance with Section 288.075, Florida Statutes. a
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7. Neither the payment of funds, nor this Agreement, may be transferred, assigned,
credited or otherwise conveyed without prior written approval from the County, which approval o
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may be freely withheld.
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Legal Matters
8. 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.
9. This Agreement constitutes the entire agreement between the parties with respect
to the matters set forth herein and supersedes and takes the place of any and all previous
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1 6.F.6.b
representations, undertakings, and agreements between the parties relating to this transaction.
This Agreement does not constitute a lien on the property, and cannot be assigned or transferred
by Project Ice without prior written consent of the County. 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.
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THE REMAINDER OF PAGE INTENTIONWLLY LEFT BLANK
SIGNATURE PAGE TO FOLLOW.
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