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Agenda 04/10/2018 Item #16F 2Proposed Agenda Changes Board of County Commissioners Meeting April 10, 2018 Move Item 16F2 to Item 11D: *** This item was continued from the February 27, 2018 *** Recommendation to waive the contract term regarding payment of business license tax “when due” and authorize payment of the Business Location Inducement Grant to Position Logic, LLC. (Commissioner McDaniel’s request) Note: Item 16A23: The Executive Summary requires clarification that a portion of this project will be constructed by the County and the amount of the security provided by the Developer shall only reflect the costs of the improvements for the developer’s portion of the property. The amount of this security is equal to a total of $202,892.25 – 110% of the cost of the developer’s portion of the project ($184,447.50). (Staff’s request) Time Certain Items: Item 11A to be heard at 10:00 a.m. Item 13A to be heard at 11:15 a.m. 4/10/2018 8:47 AM 04/10/2018 EXECUTIVE SUMMARY Recommendation to waive the contract term regarding payment of business license tax “when due” and authorize payment of the Business Location Inducement Grant to Position Logic, LLC. OBJECTIVE: That the Board of County Commissioners (Board) waive the contract term regarding payment of business license tax “when due” and direct the Collier County Clerk of the Circuit Court to pay the Business Location Inducement Grant to Position Logic, LLC. CONSIDERATIONS: On February 24, 2015, the Board approved its Business Location Inducement Grant with Position Logic LLC to support the diversification of Collier County’s economy and growth in high technology jobs for Collier citizens by securing the retention and expansion of Position Logic at a Collier County site. Position Logic provides business solutions that address the areas of enterprise asset management, in-house GPS asset tracking solutions, hosted GPS tracking, location-based security solutions, and professional consulting services. Numbered paragraphs 2 and 4 of the Business Location Inducement Grant Agreement, respectively, requires Position Logic to remain “current on all local tax liabilities” and “pay its tax bill in full to the Tax Collector’s Office annually, on or before the date it is due.” Paragraph 4 provides that the failure to pay such tax bill is a substantial breach that results in an automatic termination of the grant agreement. Position Logic failed to timely pay its $30 local business tax in fiscal years 2015 and 2016 . The Tax Collector initially informed Position Logic that is was unable to process Business Tax Receipts payments in arrears. However, after a diligent search of its records the Tax Collector was recently able to properly document and invoice Position Logic for its FY 2015 and 2016 Business License Tax. Accordingly, payment was tendered to the Tax Collector on March 13, 2018 as shown by the receipt made back -up to this item. Although all persons engaging in or managing any business, profession or occupation is required by County Ordinance No. 07-51 and Florida Statutes Chapter 205 to pay the applicable local business tax, it was not the intent of the parties that this nominal dollar omission terminate the agreement. Position Logic is now current on its business tax receipts during the term of the Business Location Inducement Grant, Staff recommends that the agreement be continued in full force and aside from the failure to pay the $30 business license tax, Position Logic has otherwise complied with the terms of the agreement. The expanded location resulting from this grant has contributed 57 high technology jobs for Collier Citizens and continues to expand. It is also important to mention Position Logic received its certificate of occupancy/completion on August 11, 2015. Since that time, they have been current on all their property tax obligations (which are approximately $5,500 per year) and registered to do business in Florida with the Florida Division of Corporations. Staff recommends that the Bo ard waive the contract term regarding payment of business license tax “when due” with regard to payment of the local business license tax in fiscal years 2015 and 2016 which have been subsequently paid, see attached paid receipt. FISCAL IMPACT: The Board agreed to assist Position Logic with this project by providing a Business Inducement Grant paid in four equal annual installments of $29,400 commencing with the first anniversary of the issuance of the Certificate of Occupancy, August 11, 2016, for the facility, and will continue each year thereafter until the full grant amount of $117,600 is paid. No funds have yet been paid to Position Logic. Funding is provided in the Economic Development Incentives budget (001- 138763). 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 that are designed to promote and encourage the recruitment of new industry, as well as the expansion and retention of existing industries to diversify the County’s economic base.” 16.F.2 Packet Pg. 919 04/10/2018 LEGAL CONSIDERATIONS: This item is approved for form and legality and requires a majority vote for Board approval. - JAB RECOMMENDATION: To waive the contract term regarding payment of business license tax “when due” and authorize payment of the Business Location Inducement Grant to Position Logic, LLC. Prepared by: Jace Kentner, Director, Office of Business & Economic Development ATTACHMENT(S) 1. PAID tax receipt for 2015 and 2016 (PDF) 2. Position Logic Grant Agreement FINAL fully executed (PDF) 16.F.2 Packet Pg. 920 04/10/2018 COLLIER COUNTY Board of County Commissioners Item Number: 16.F.2 Doc ID: 5160 Item Summary: *** This item was continued from the February 27, 2018 *** Recommendation to waive the contract term regarding payment of business license tax “when due” and authorize payment of the Business Location Inducement Grant to Position Logic, LLC Meeting Date: 04/10/2018 Prepared by: Title: Manager - Technical Systems Operations – Administrative Services Department Name: Michael Cox 03/19/2018 2:50 PM Submitted by: Title: Director – Business and Economic Development Name: Jace Kentner 03/19/2018 2:50 PM Approved By: Review: Business and Economic Development Jace Kentner Additional Reviewer Completed 03/30/2018 1:05 PM County Attorney's Office Jennifer Belpedio Level 2 Attorney of Record Review Completed 04/02/2018 8:45 AM Office of Management and Budget Valerie Fleming Level 3 OMB Gatekeeper Review Completed 04/02/2018 9:08 AM County Attorney's Office Jeffrey A. Klatzkow Level 3 County Attorney's Office Review Completed 04/02/2018 10:03 AM Budget and Management Office Ed Finn Additional Reviewer Completed 04/02/2018 3:08 PM County Manager's Office Leo E. Ochs Level 4 County Manager Review Completed 04/03/2018 10:00 AM Board of County Commissioners MaryJo Brock Meeting Pending 04/10/2018 9:00 AM 16.F.2 Packet Pg. 921 16.F.2.a Packet Pg. 922 Attachment: PAID tax receipt for 2015 and 2016 (5160 : Business Location Inducement Grant with Position Logic) 16.F.2.bPacket Pg. 923Attachment: Position Logic Grant Agreement FINAL fully executed (5160 : Business Location Inducement Grant with Position Logic) 16.F.2.bPacket Pg. 924Attachment: Position Logic Grant Agreement FINAL fully executed (5160 : Business Location Inducement Grant with Position Logic) 16.F.2.bPacket Pg. 925Attachment: Position Logic Grant Agreement FINAL fully executed (5160 : Business Location Inducement Grant with Position Logic) 16.F.2.bPacket Pg. 926Attachment: Position Logic Grant Agreement FINAL fully executed (5160 : Business Location Inducement Grant with Position Logic) 16.F.2.bPacket Pg. 927Attachment: Position Logic Grant Agreement FINAL fully executed (5160 : Business Location Inducement Grant with Position Logic)