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Agenda 03/24/2015 Item #16F2 3/24/2015 16.F.2. EXECUTIVE SUMMARY Recommendation to adopt a resolution amending and restating Resolution No. 2015-36 in support of Prospect #15-011, as a Qualified Applicant to Florida's Qualified Target Industries (QTI) Tax Refund Program, providing up to $48,000 of local financial support for an expansion of an existing business management firm in Collier County that will create 40 new quality jobs, and approve any budget amendments necessary to process this transaction. OBJECTIVE: To obtain Board approval to revise Resolution No. 2015-36 by increasing Collier's local match commitment from $32,000 to $48,000 for an approved Florida Qualified Target Industries Tax Refund Program applicant. CONSIDERATIONS: On February 24, 2015, the Board approved the Partnership for Collier's Future Economy's Prospect #15-011 as a Qualified Applicant to Florida's Qualified Target Industries Tax Refund Program and committed local financial support of up to $32,000 based on the job creation and wage information provided to staff Subsequent to Board approval, Enterprise Florida advised staff that this application has been revised to reflect the prospect's eligibility for QTI's high impact sector bonus, which provides eligibility for an additional tax refund bonus of$2,000 per job for projects with industry classifications falling within one of the high impact sectors designated by Enterprise Florida pursuant to state law. The net result of these changes will increase the per job refund from $4,000 per job to $6,000 per job ($4,000 base QTI incentive + $2,000 bonus incentive), of which 20% is required as local match. The net financial impact to Collier County for adopting this revision will increase the commitment by $16,000 for a total of $48,000 as local participation in the qualified target industry tax refund program for this applicant. The project consists of an existing business management firm in Collier County proposing to expand, creating 40 new high wage jobs with an expected capital investment of up to $2.2 million. This prospect has alternative sites available and has made receipt of tax refunds a condition for further consideration of locating such expansion 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 150% of the MSA average wage for each year of the agreement. The state program requires that the local community provide 20% of the total tax refunds. This local match is paid to the state, not the applicant. If Prospect #15-011 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 $1.200 per job or$48,000 total spread over at least four years. FISCAL IMPACT: The maximum cost to the County for this QTI applicant is $48,000 spread over a minimum of four years, anticipated to begin in FY 2015. Funding for Economic Development Incentives is available in Economic Development Fund 001. Packet Page-920- 3/24/2015 16.F.2. 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 adopt a resolution amending and restating Resolution No. 2015-36 in support of a Partnership for Collier's Future Economy' Prospect #15-011, as a Qualified Applicant to Florida's Qualified Target Industries (QTI) Tax Refund Program, providing up to $48,000 of local financial support for an expansion of an existing business management firm in Collier County that will create 40 new quality jobs, and approve any budget amendments necessary to process this transaction. Prepared by: Bruce Register,Director, Office of Business & Economic Development Attachments: Revised QTI Resolution: Project#15-011, Resolution#2015-36 Packet Page-921- 3/24/2015 16.F.2. COLLIER COUNTY Board of County Commissioners Item Number: 16.16.F.16.F.2. Item Summary: Recommendation to adopt a resolution amending and restating Resolution No. 2015-36 in support of Prospect#15-011, as a Qualified Applicant to Florida' s Qualified Target Industries (QTI) Tax Refund Program, providing up to$40,000 of local financial support for an expansion of an existing business management firm in Collier County that will create 40 new quality jobs, and approve any budget amendments necessary to process this transaction. Meeting Date: 3/24/2015 Prepared By Approved By Name: RegisterBruce Title: Division Director-Business &Econ Dev, Office of Business &Economic Development Date: 3/16/2015 4:37:08 PM Name: OchsLeo Title: County Manager, County Managers Office Date: 3/17/2015 10:02:38 AM Packet Page -922- 3/24/2015 16.F.2. RESOLUTION NO. 2015 - A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, AMENDING AND RESTATING RESOLUTION NO. 2015-36 TO RECOMMEND THAT THE PARTNERSHIP FOR COLLIER'S FUTURE ECONOMY'S ECONOMIC DEVELOPMENT PROSPECT #15-011, BE APPROVED AS A QUALIFIED APPLICANT PURSUANT TO SECTION 288.106, FLORIDA STATUTES; AND IDENTIFYING SOURCES OF LOCAL FINANCIAL SUPPORT OF $48,000 AS LOCAL PARTICIPATION IN THE QUALIFIED TARGET INDUSTRY TAX REFUND PROGRAM FOR FISCAL YEAR(S) 2015-2023. WHEREAS, pursuant to Resolution No. 2015-36 adopted by the Board of County Commissioners of Collier County, Florida (the "Board") on February 24, 2015, it was recommended that the Partnership for Collier's Future Economy Prospect #15-011, be approved as a qualified target industry business; and WHEREAS, it is necessary to amend and restate Resolution No. 2015-36 in order to revise the amount of the identified commitment of local financial support resulting from a revision to the Prospect#15-011's Qualified Target Industry Business application; and WHEREAS, the Legislature of the State of Florida has enacted Chapter 94-136, Laws of Florida, creating Section 288.106, 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 WHEREAS, Section 288.106, Florida Statutes, requires 20% local financial participation as tax refunds become due; and WHEREAS, the Company identified as the Partnership for Collier's Future Economy's Prospect #15-011, wishes to expand a Collier County operation consisting of 40 new qualifying value-added jobs in five phases; and WHEREAS, the Company identified as the Partnership for Collier's Future Economy's Prospect #15-011, will provide high-wage, value-added employment to Collier County citizens with average wages of at least $63,738 or 150% of the Naples-Marco Island MSA's private sector average wage; and WHEREAS, the Board of County Commissioners finds that providing tax refunds and other tax incentives to the Partnership for Collier's Future Economy's Prospect #15-011 is vital to the public purpose of employing Collier County citizens and ensuring the County's economic vitality. Packet Page -923- 3/24/2015 16.F.2. WHEREAS, Section 288.108, Florida Statutes, identifies Qualified Target Industries that fall within one of the High Impact Sectors and are eligible for a High Impact Sector Bonus, pursuant to Florida Statute 288.106; and WHEREAS, Partnership for Collier's Future Economy's Prospect #15-011 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 the Partnership for Collier's Future Economy's Prospect #15-011, 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 Partnership for Collier's Future Economy's Prospect #15-011's final application to be a Qualified Target Industries Business and confirmation of the information therein. BE IT FURTHER RESOLVED that the necessary commitment of local financial support for the Qualified Target Industry Business for the Qualified Target Industry Tax Refund Program has been identified in the amount of $48,000; 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. If the site of the Qualified Target Industry Business changes to or becomes part of a Tax Increment District in a municipality within Collier County, the County will reduce its contribution to 10% of the local match. THIS RESOLUTION ADOPTED after motion, second, and majority vote favoring same this day of , 2015. ATTEST: BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, Clerk COLLIER COUNTY, FLORIDA By: By: , Deputy Clerk TIM NANCE, CHAIRMAN Approved as to form and legality: Jeffrey A. Klatzkow County Attorney 2 Packet Page-924-