Agenda 12/08/2015 Item #11D12/8/2015 11. D.
EXECUTIVE SUMMARY
Recommendation to approve Five Star Gourmet Foods of Florida as a qualified
applicant to the Collier County Basic Industry Growth Promotion Incentive
Program and approve the attached agreement for Project "Top Shelf."
OBJECTIVE: Implement Board economic development policy to support and encourage quality job
creation in targeted industries to diversify our economy and provide sustainable employment opportunities
for Collier County citizens.
CONSIDERATION& The attached Program application of Five Star Gourmet Foods of Florida, or
Project "Top Shelf' proposes an expansion of their national specialty food manufacturing operation that
does not have a presence in Collier or the Eastern United States, creating at least 250 new quality jobs
with average wages of approximately $28,000 over a two -year period. The project located at 3600 Shaw
Blvd. Naples, Florida 34117, will represent approximately $4,000,000 in new capital investment and
approximately $6,000,000 in acquisition of an existing facility in Collier County.
On September 24, 2013, with revisions of January 13, 2015, the Board authorized and approved the
Collier County Basic Industry Growth Promotion Incentive Program, providing a $3,000 grant and
$500 green process bonus paid over four years, for each new job with wages equal to or greater than the
Collier average of the applicant's specific North American Industry Classification System industry code.
Based on the applicant's submittals, this project meets the program requirements of targeted industry
designation, green environmental sustainability, and average wage requirement meeting that of compatible
NAIC code industry local wages.
Five Star must further meet all Collier County program requirements including compliance reporting of
wages and job creation levels to remain eligible for the grant. The grant would be disbursed in annual
payments for each job over the four -year term as compliance is verified. To encourage the company to
consider job growth beyond what is applied for, the program provides that the total number of jobs
eligible for the grant annual payment over the four year participation term can be expanded up to two
times; or double the number of jobs submitted for in the initial application. The applicant requested
confidentiality as provided by F.S. 288.075. In accord with program rules, having secured eligibility for
this application by submitting application to this program prior to public announcements or permit
approvals, the application remains confidential until a formal definitive announcement and/or the
agreement with the County is considered.
FISCAL IMPACT: Total incentives available under this agreement range from $875,000 for 250 jobs
to a maximum of $1,750,000 for 500 jobs. Annual payments will not exceed 25% of the total award in
any single year. The maximum FYI incentive payment will not exceed $262,500. The maximum
possible annual payment in following years will not exceed $437,500. The FYI budget allocation for
job creation and capital investment incentive payments and strategic business partnership agreements is
$894,400.
Funding is subject to annual appropriation by the Board. The first payment under this agreement will occur
no earlier than FY17. The FYI economic incentive budget will be developed to include funding for
anticipated annual incentive payments.
GROWTH MANAGFMENT IMPACT: This project supports the goals and objectives of the
Economic Element of the adopted Collier County Growth Management Plan.
LEGAL ON ID .RATIONS: Section 125.045, Florida Statutes, confers broad economic
development powers upon the Board of County Commissioners and the Basic Industry Growth
Promotion Incentive Program is a Board approved incentive program. Accordingly, this item is approved
as to form and legality and requires majorit - ' -SRT
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12/8/2015 11. D.
RECOMMENDATION: That the Board of County Commissioners approve Five Star Gourmet Foods
of Florida as a qualified applicant to the Collier Count y Basic Industry Growth Promotion
Incentive Program and approve the attached agreement for Project "Top Shelf'.
Prepared by: Bruce Register, Director, Office of Business & Economic Development.
Attachment: Basic Industry Growth Promotion Incentive Program Agreement
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COLLIER COUNTY
Board of County Commissioners
Item Number: 11.11.1).
12/8/2015 11. D.
Item Summary: Recommendation to approve Five Star Gourmet Foods of Florida as a
qualified applicant to the Collier County Basic Industry Growth Promotion Incentive Program
and approve the attached agreement for Project "Top Shelf." (Bruce Register, Office of
Business and Economic Development Division Director)
Meeting Date: 12/8/2015
Prepared By
Name: JenniferLeslie
Title: Administrative Assistant, Office of Business & Economic Development
11/24/2015 3:12:43 PM
Submitted by
Title: Division Director - Business & Econ Dev, Office of Business & Economic Development
Name: RegisterBruce
11/24/2015 3:12:44 PM
Approved By
Name: FinnEd
Title: Management/Budget Analyst, Senior, Office of Management & Budget
Date: 11/24/2015 6:35:54 PM
Name: KlatzkowJeff
Title: County Attorney,
Date: 11/25/2015 9:26:44 AM
Name: IsacksonMark
Title: Division Director - Corp Fin & Mgmt Svc, Office of Management & Budget
Date: 12/1/2015 8:14:53 AM
Name: OchsLeo
Title: County Manager, County Managers Office
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Date: 12/2/2015 9:58:07 AM
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12/8/2015 11. D.
12/8/2015 11. D.
BASIC INDUSTRY GROWTH PROMOTION INCENTIVE PROGRAM AGREEMENT
This Agreement for Basic Industry Growth Promotion Incentive ( "BIGPI ") Program
(hereinafter referred to as "Agreement ") is entered into this 8h day of December, 2015, 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 Five Star Gourmet Foods
of Florida, Inc. (hereinafter referred to as "Five Star").
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, Collier County created the Basic Industry Growth Promotion Incentive
( "BIGPI ") Program on September 24, 2013, with revisions on January 13, 2015, the objective of
which is to advance Collier County's economy by encouraging near term job growth
opportunities for expansions and recruiting new target industry companies that might not qualify
for the State of Florida's incentive program for Qualified Target Industries (QTI) program; and
c9
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12/8/2015 11. D.
`WHEREAS, Five Star has applied for this program as a financial incentive for the
inducement of confidential project "Top Shelf," consisting of the acquisition and equipping of a
65,000 square foot food manufacturing facility located at 3600 Shaw Blvd., Naples Florida
34117 as real property in Collier County, Florida, owned or controlled by Five Star, for food
manufacturing processes fully regulated by the United States Department of Agriculture for the
manufacture and packaging of prepared food products as defined by North American Industry
Classification System, 2012 (NAICS) Number 311400, and creating 150 jobs within 12 months
and 250 jobs within 24 months; and
WHEREAS, Five Star estimates that this Project will require it to expend approximately
$10 million in Capital Improvements, consisting of $6 million for facility acquisition, and $4
million for updating tangible personal property with energy efficient manufacturing equipment;
and
WHEREAS, the Board expressly finds that the opening of this un- operated and vacant
facility and development of the project will result in substantial economic benefits to the County,
including but not limited to the creation of quality jobs and a net increase to the County's tax
base; and
WHEREAS, Collier County and the Southwest Florida Regional Planning Council have
conducted a REMI Policy Impact® 10 year economic impact model which estimates that as a
result of this project's investment and job growth the County's long term gross product will have
an average increase of approximately $50 million per year and total County economic output will
have an average increase of approximately $100 million per year; and
WHEREAS, Collier County finds it is in the public interest to facilitate the growth of
Five Star's Targeted Industry Business expansion as defined in F.S. 288.106 in Collier County
and approve Five Star as a qualified applicant to the Collier County Basic Industry Growth
Promotion Incentive Program.
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:
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12/8/2015 11. D.
1. The foregoing Recitals are true and correct and are incorporated by reference
herein.
'I
2. The Board hereby agrees to enroll Five Star into the BIGPI Program inclusive of
the green process bonus, a copy of which is attached hereto and incorporated into this
Agreement. As adopted, the Program and agreement provides that Five Star's demonstrated job
creation performance would be eligible for payments corresponding to the number of jobs
applied for, plus additional per job payment eligibility up to twice the number of jobs submitted
on an October 7, 2015 Program application, a copy which is attached and incorporated into this
Agreement.
3. In consideration for such assistance, Five Star hereby accepts the benefits and
burdens set forth below. Five Star's application stipulates to the creation of 250 eligible jobs in
two phases. The job creation schedule will consist of the following: (a) First Phase, 150 eligible
jobs created by December 8, 2016; and (b) Second Phase, an additional 100 new jobs for a total
of 250 by December 8, 2017. Annual Incentive payments shall be distinctly calculated and
exclusive for each phase over a four year tenn, and be equivalent to the sum of 25 % of $3,500
for each job created upon verification of the eligibility of the jobs, and be paid within 90 days of
validation by the Collier County Clerk of Courts. The total four year cost of this agreement will
range from $875,000 to a not to exceed amount of $1,750,000 depending how many jobs exceed
the initial application (limited to double) during the four year tern. The annual payment will
not exceed 25% of the total award in any single year.
4. Should at any time over the tern of this Agreement the number of qualifying jobs
be less then set forth in the payment schedule set forth above, for such payment period the
County Manager or his designee will authorize a lesser sum be paid based on the actual number
of jobs created and verified. This diminution of grant funds shall be the County's sole remedy
should Five Star not meet the scheduled job creation. Five Star understands and agrees that there
is no defined funding source for this Project, and as such these grants are subject to annual
appropriation.
5. As a precondition to payment, Five Star shall give the County, including the Collier
County Clerk of Courts, access to review its business records required to certify the created jobs.
Five Star shall be given 10 business days prior written notice of this review. Any documents or
copies of documents retained by the County that contains any individual employee's personal
a
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12/8/2015 11. D.
identifying information that is held as evidence of the employment and wage requirements of this
contrast will be confidential in accordance with F.S. 288.075 for the duration of this contract.
6.- 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
may be freely withheld.
Lesal Matters
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 matters set forth herein and supersedes and takes the place of any and all previous
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 Five Star without the prior written consent from 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.
IN WITNESS WHEREOF, the Parties have executed this Agreement on the date and
year first above written.
Attest:
DWIGHT E. BROCK, Clerk BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY, FLORIDA
By: By:
Deputy Clerk Tim Nance, Chairman
Approved as to form and legality:
Jeffrey A. Klatzkow, County Attorney
I
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i
AS TO FIVE STAR GOURMET FOODS of FLORIDA, INC.,
Signed, sealed and
Delivered in the presence of
By:
Signature Tal Shoshan, CEO,
Five Star Gourmet Foods of Florida, Inc.
Printed Name
Signature
Printed Name
STATE OF FLORIDA
COUNTY OF COLLIER
The foregoing Agreement was acknowledged before me this day of December,
2015, by Tal Shoshan, CEO of Five Star, Inc., who is personally known to me or has produced
as proof of identity.
[NOTARIAL SEAL]
Signature of Person Taking Acknowledgment
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12/8/2015 11. D.
BASIC INDUSTRY GROWTH PROMOTION INCENTIVE
PROGRAM DESCRIPTION & OVERVIEW
The Basic Industry Growth Promotion Incentive recognizes Collier County's desire for near term job
growth opportunities for expansions of local companies and recruiting new companies which might not
qualify for the Qualified Targeted Industries (QTI) program. Basic industries, even those with wages
under QTI thresholds, tend to export a significant percentage of their product and as a result create net
new wealth and net new spending power in a local economy. Growth in those industries will help our
community's economic recovery.
Basic Industry Growth Incentive Promm
Collier County offers qualifying applicant's eligibility to the Basic Industry Growth Incentive for a grant
of $3,000 per job if the project creates at least 5 new jobs within 12 months in a Targeted Industry with
wages meeting or exceeding the Collier County average of the applicant's specific 3 digit North
American Industry Classification System industry code. Eligibility for a $500 per job bonus over the base
grant will apply to businesses that demonstrate energy efficiency, resource conservation, or environmental
sustainability in either the firm's operational process or products. Employers 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 approved. The BCC must approve all applicants, and all application forms, administrative
procedures and required proof of performance compliance will be developed by the County Manager or
designated staff. Only official forms and procedures are deemed sufficient for application to this
program.
General Promm Requirements
• Applications must be submitted in advance of public announcements or any permit approvals changing
usage or building occupancy related to the projected jobs.
• In officially designated economically distressed areas the wage requirement is waived but Targeted Industry
is required.
• The new jobs and business must be a for profit business operating within Collier County and qualified
under the State's listed Target Industries, creating 5 new jobs within 12 months of the BCC application
approval. In addition, for existing firms, the net new jobs must be reflected as the increase of full -time
equivalents over the latest quarter prior to application.
• 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.
• Grant disbursements in four equal installments over four years as compliance for each year is verified.
Method of evidence verification will be based on records such as: IRS Form 941, Payroll Records, and a
Florida Department of Economic Opportunity Form RT -6 (Formerly UCT -6) for each new employee or an
acceptable equally reliable substitute.
• Each new employee hire must be either a full time employee working an average of 36 hours per week, or
business will be allowed to count two employees working a minimum of 20 hours per week as one full time
equivalent employee as long as these employees are eligible to receive full benefits.
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12/8/2015 11. D.
A
Industry
BASIC Indust Growth Promotion
o r m_- anew.
e
Grant
;,) :����� �Fr
Awad;Jilade toWham_ r
Qualified Target Industry Employers
�1llage reuiremient,
Milli�
Pe ed to the Collier
99 County Avg
Wage for the 3 Digit North American
r
Industry Code (NAICS)
s A
I�wmbercf' JobsRqured
5
Capital livestmen>f Requ�rennen "�!
No
Expan able foter Year Job
Yes, up to two times the number of jobs
applied for during the initial four year
participation term.
Available to Existng Indust MNF2
Yes each of the new Jobs lasting Four
Years are eligible.
,rw, ..����'i . r .a'
Available to ldew I dustrybj °
Yes each of the new Jobs lasting Four
d
years are eligible.
14N2illable fQrRetent�on� a'
No
Annou t pf waTd M �
$3,000 base, with a $500 Green
Product/Process Bonus
z
Payout Schedule,+ ��..
Paid in installments over four (4) years
SpecifiedUse f Fur�dsw,
None
Local Support Required
� ��
Yes - 100% paid by the County if jobs
are located in Unincorporated Collier
,"
County.
"Bu>c�r" Incentrve���,.
Applications must be submitted in
3
advance of public announcements or
any permit applications changing usage
�� "� {��
or building occupancy related to the
r
projected jobs
ar,9
r" .+, .tYhi„�34$4 J;n'T '' '07
Eligible Industries /Business j
Economic Base Industries defined as
Qualified Targeted Industries by
°
Enterprise Florida Inc.
IneligibleActvii ty €k` g%��
Any retail activities, elect. utility
z
company, or phosphate or solid
M
minerals severance, mining or
a 4 _ �
processing
P 9
Distressed Area Exception
Wage requirement waived but qualified
�
industry is required in designated
fig_'
^
economically distressed areas.
abf
il
.1a J'"'.+.x*i. 4`.'.'A' 1:���;„', in. J, :'�'^•twt�Y£ "".Y.',4.,y,. *Y "..
Contacts t4 TM
Collier County Business &Economic
t
Development Office (239) 252 -4040.
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COLLIER COUNTY 2015
BASIC INDUSTRY GROWTH PROMOTION INCENTIVE
APPLICATION
An affidavit certifying continued compliance of employment requirements for the berm 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).
Collier Economic Development Project "Top Shelf"
Applicant Business name:
Contact & Phone:
Confidentiality Requested per Florida Statute 268.075 and on file wjCol3ier
Business & Econ. Dev. Division
Mailing address:
Federal Employer Identification # See above Florida Sales Tax Registration# -T!!
Project location (Collier only): 3600 Shaw Blvd., Naples, FL 34117
Anticipated dates of project start and completion? (Ap Iication approval required prior to making decisions
to locate new business in Collier County) From O�tober 2015 on
Industry description: Food manufacturing industry NAILS codes: 311400
Description & types of new positions: General and executive positions required in the food industry
See above
Description of parent companies or corporate affiliations:
Total number of new positions to be created by the proposed project?
150 within 12 months
If positions are to be ph�tsed in, please provide dates employment will be complete for each phase.
250 within 24 maizths
Provide aggregate annual average wages of new positions created by NAICS grouping
Approx. $28,000
Describe expansions; to real & , ?ersonal prone j including major capital Investments by type of
investment' Facility acquis� ion cost $S,0 0,000 New equipment and improvemen s 54,000,000
Applying tor green energy saving process a igi i i y
Describe why this incentive is needed or if it will impact the decision of the applicant whether to locate in
CoilierCounty: This incentive will increase competitiveness of Collier County with other
locations un er consi eration.
What othei ;mates /pommpnities are competing for this project and what incentives are being offered?
Ca i ornxa an Texas
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: None
Has the applicant business ever been subjected to criminal or civil fines or penalties? No
1 hereby s ar that the information contained in this application is accurate.
F1 ; E Sworn to d subscribed to me this thk day of 0 GM k y- 20
Notary Public, State of+lorida wi � Empio mess authorize gent
so�
Co.
Submit applications and questions to: Collier County Office of Business and Economic Development, 2800 N. Horseshoe
Dr., Naples FL, 34904. Contact Jacs Kentner, (239) 252 -4040.
Information and documents released to Collier County are subiect to Public Disclosure Regulations.
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12/8/2015 11. D.
A notary public or other officer completing this certificate verifies only the
identity of the individual who signed the document to which this certificate
is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
County of
Subscribed and sworn to (or affirmed) before me on this day of 114 c ,
2015 by '14-L- !` lit..! �! s44 A r4
proved to me on the basis of satisfactory evidence to be the person(4who appeared
before me.
MICHAEL. 1stAS
"' .. Commission X 1451189 y
Signature p -; Notory Public • coutornio 5
(Seal) .Son Botrwtdinc COunty —
Mrc«,m�ar��12o.zc�ss
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l
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