Agenda 09/24/2013 Item #11CProposed Agenda Changes
Board of County Commissioners Meeting
September 24, 2013
Add Item 10G: Recommendation to authorize the Chair to send a letter to the University of Florida expressing concern,
and requesting the inclusion of Collier County agribusiness industry and public sector stakeholders in discussions regarding
recently announced changes in staff, services provided, and future of the UFAFAS Southwest Florida Research and
Education Center (SWFREC) in Immokalee. (Commissioner Nance's request)
Withdraw Item 16D7: Recommendation to approve the Rivers Road Preserve Final Management Plan under the
Conservation Collier Land Acquisition Program. (Staffs request)
Continue Item 16E8 to the October 8, 2013 Meetine: Recommendation to authorize the County Manager and staff to
use Federal GSA schedules (i.e. Schedule 70 and 1122 Program); State of Florida Contracts, Agreements and Price Lists;
competitively solicited contracts by US Communities, Western States Contracting Alliance, National Intergovernmental
Purchasing Alliance (NIPA), National Joint Powers Alliance (NJPA) public purchasing consortiums; and, competitive
solicitations from State of Florida cities, counties, and other public municipalities (i.e. Sheriffs Association) for the
efficient purchase of goods and services for the delivery of public services and for which funds were approved in
operating budgets. (Staffs request)
Move Item 16K3 to Item 121): Recommendation to authorize the County Attorney to advertise for future consideration
an ordinance which would amend Ordinance No. 2013 -25, Collier County's Hearing Examiner Ordinance (Commissioner
Coyle's request)
Note:
Items 10D, 10E and 14A1: It is recommended these items be heard and discussed together before being
individually voted upon.
Item 11C Legal Considerations should read: This item has been reviewed by the
County Attorney. Fl. Stat. Section 125.045 (County economic development powers)
grants the Board extremely broad home rule powers with respect to economic
development. Any Board approved Economic Development Incentive Program will
always only be a part of the County's overall economic development tools, with the
Board retaining the broad powers under Fl. Stat. Sec. 125.045 to enter into an
individual economic development agreement tailored to meet the needs of particular
economic development projects. With that noted, this item is approved as to form
and legality, requiring majority support for approval. (County Attorney's request)
Item 16K3 Executive Summary and proposed Ordinance should read: Conditional Uses. ...any member of the
Board of County Commissioners may direct any conditional use to be heard by the Planning
Commissioner-
Commission in an advisory committee... (Commissioner Fiala's request)
Item 16K4 Executive Summary should read: "Employer and Employee shall negotiate ... a performance based
merit system through which Employee shall be eligible for a merit adjustment upon successful completion
of measurable goals and objects objectives to be completed or attained by the Employee..." (Commissioner
Fiala's request)
Time Certain Items
Item 11A to be heard at 10:00 a.m.
Court Reporter Break at 10:20 a.m.
Items 10D, 10E, 14A1 will be heard at 10:30 a.m. and discussed together before being individually voted upon.
Item 14A2 to be heard immediately following IOD, 10E and 14A1
Item 11E to be beard at 11:00 a.m.
Item 12C to be heard immediately following Item 12B
Item 13A to be heard at 11:30 a.m.
9/24/2013 11 .C.
EXECUTIVE SUMMARY
Recommendation to approve the proposed performance based Economic Development
Incentive Programs for new job creation in targeted industries.
OBJECTIVE: To obtain Board approval of the proposed Economic Development Incentive
Programs.
CONSIDERATIONS: Collier County's current Economic Development Incentive Ordinances
are set to expire on September 30, 2013. A Board agenda item on May 28, 2013 (See
Background Addendum) and a workshop held on June 4, 2013 reviewed and publicly vetted the
Office's proposed incentives to consolidate the County's incentive approach. Subsequent to the
workshop, the Office sought comments from several groups and interested parties on the
incentive proposals for consideration. The Office again presented the proposed incentive as part
of its FY 2014 Business Plan on September 10, 2013. As approved by the Board in the Office's
FY 2014 Business Plan, the Office has proposed three primary incentive programs to consolidate
and replace existing incentives. This approach will allow for increased program flexibility,
equity in application, fiscal responsibility, and alignment with community expectations.
The proposed incentives will establish a foundation for an incentive platform to achieve short
term objectives of quality job growth and a reduction in Collier County's unemployment rate,
while also achieving long-term objectives of broadening the County's industry mix, improving
net earnings, and increasing productivity.
The proposed incentives are designed to compliment state-level incentives, particularly the
Qualified Target Industry Tax Refund Program (QTI). The three programs include:
• Basic Industry Growth Promotion Incentive: A $1,500 per job grant for companies that
create at least ten Target Industry jobs with wages meeting or exceeding corresponding
Collier-specific averages for those industries. A $500 bonus is available for jobs that are
meet the definition of "Collier Quality Clean Jobs." Payments are equally distributed
over a four year period after performance verification. This provides an incentive for
export industries that may not meet QTI wage eligibility. See Attachment A for full
program description.
• Participation in State of Florida QTI: Provide local funding participation of 20%. Total
state awards range from $3,000-$5,000, with bonuses of $2,500 for jobs located in
Brownfields and $3,000 for those located in Enterprise Zones. QTI is available to
companies that create at least 10 Target Industry jobs with wages of at least 115% of the
county or state average. See Attachment B for full program description.
• Advanced Long Term Productivity Strategy (ALPS): This is incentive is designed to
provide a bonus incentive for those Targeted Industry companies that create at least 25
jobs with average wages of at least 150% of the County's average. The incentive is
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broken into two tiers: Tier 1 companies creating at least 25 jobs with average wages of at
least 150% of the County average may receive an incentive equal to 1% of payroll
annually for the new jobs created, while Tier 2 companies creating at least 25 jobs with
an average wage of at least 200% of the County average wage may receive an incentive
equal to 1.063% of total payroll for the new jobs. See Attachment C for full program
description.
FISCAL IMPACT: Each incentive application will require BCC approval and all funding is
subject to annual appropriation. Funding for Economic Development Initiatives is available in
the FY 2014 Proposed Budget Economic Development Fund 007. The anticipated FY 2014 fiscal
impact will be limited as these programs typically have significant lead time from authorization
to implementation and compliance verification. In subsequent years it is estimated that an
annual appropriation of approximately$300,000 will be necessary.
GROWTH MANAGEMENT IMPACT: None.
LEGAL CONSIDERATIONS: All negotiations relating to incentives between the County and
applicants are protected and confidential under s. 288.075, F.S.
RECOMMENDATION: That the Board approves the Office's proposed Economic
Development Incentive Programs. (Attachments A, B, C)
Prepared by: Logan Smith, Economic Research Analyst, Office of Business & Economic
Development
Attachments: Attachment A: Basic Industry Growth Promotion Incentive Program Overview
Attachment B: State of Florida QTI Program Overview,Attachment C: ALPS Program Overview
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COLLIER COUNTY
Board of County Commissioners
Item Number: 11.11.C.
Item Summary: Recommendation to approve the proposed performance based Economic
Development Incentive Programs for new job creation in targeted industries. (Bruce Register,
Business and Economic Development Director)
Meeting Date: 9/24/2013
Prepared By
Name: JenniferLeslie
Title: Office of Business&Economic Development
9/12/2013 5:18:57 PM
Approved By
Name: RegisterBruce
Date: 9/13/2013 3:07:06 PM
Name: IsacksonMark
Title:Director-Corp Financial and Mgmt Svs,CMO
Date: 9/16/2013 10:03:44 AM
Name: KlatzkowJeff
Title: County Attorney
Date: 9/18/2013 10:22:39 AM
Name: IsacksonMark
Title:Director-Corp Financial and Mgmt Svs,CMO
Date: 9/1 8/2013 10:52:37 AM
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Attachment A
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 through the expansion of local companies and recruitment of new companies which
may necessarily not qualify for the State of Florida's Qualified Targeted Industries(QTI)program.
"Basic industries,"also referred to as"export 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 the community's economic
recovery.
Basic Industry Growth Incentive Pro2ram
Qualified applicants are eligible to participate in the Basic Industry Growth Incentive. The incentive is a
grant of$1,500 per job for projects creating at least 10 new jobs within 12 months in a Targeted Industry,
and with wages meeting or exceeding the Collier County average of the applicant's specific 3 digit North
American Industry Classification System industry code. Only 5 jobs are required for projects located in
officially-designated distressed areas, and wage requirements are waived.There is no minimum capital
investment required for participation. An additional $500 per job bonus is available for businesses that
create jobs that meet the definition of"Collier Clean Quality Jobs,"which includes jobs that demonstrate
energy efficiency, reduction of pollution, or environmental sustainability in either the firm's operational
process or final products for sale. (See full definition below.) Grants will be paid in installments over
four years.
To become eligible,applicants must apply prior to commitment of intent, or change in land use or
permitting applicants are submitted. Employers must meet Collier County's program requirements
regarding reporting compliance of average wage and job levels. The BOCC must approve all applicants,
with all application forms, administrative procedures and required proof of performance compliance
developed by the County Manager or designated staff. Only official forms and procedures are deemed
sufficient for application to this program.
To participate,applicants must execute a formal agreement with the County stipulating the terms of the
award,which must include,but is not limited to:the award amount,the monitoring and evaluation
schedule,and the payment schedule. The applicant must agree to annual verification and certification of
job creation for each of the 4 years it receives payments under the award.The first performance
verification is due 14 months following the execution of an agreement between the applicant and the
County. Failure to maintain the required new jobs and the average aggregate wage at any point over the
four year payment period will result in the applicant forfeiting program eligibility.
General Pro2ram Requirements
• Applications must be submitted in advance of public announcements or any permit applications changing
usage or building occupancy related to the projected jobs.
• 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 10 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.
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Attachment A
• In officially designated economically distressed areas the wage requirement is waived and job eligibility is
reduced to 5 qualified industry jobs.
• "Collier Clean Quality Jobs"is defined to mean jobs that produce goods that improve energy efficiency,
including energy-efficient equipment,appliances,vehicles,or other such products,and products that
facilitate pollution reduction and removal,greenhouse gas reduction,and recycling and reuse,including
products that reduce or eliminate the creation or release of pollutants,greenhouse gas emissions,or reduce
or eliminate the creation of waste materials. The definition also includes jobs in which the the
establishment's production processes have been made significantly more environmentally friendly than
previous industry standards.This includes generating energy from renewable sources,using technologies
that increase energy efficiency within the establishment,or reduce or remove pollution,greenhouse gases,
and waste products from the environment.
• Each new employee hired 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.
• 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 Revenue Employer's Quarterly Report(UCT-6)Form for each new employee or an
acceptable equally reliable substitute.
• The program is administered by the County Manager or his or her designee.
• The County Manager is responsible for developing all required forms,including the BIGP Program
application form.
• Job creation beyond commitment within the four year payment term is eligible for extra per job awards.
• Award payments are subject to annual appropriations.
Program Name BASIC Industry Growth Promotion
Type Grant
Award Made to Whom Qualified Target Industry Employers
Wage requirement Pegged to the Collier County Avg
Wage for the 3 Digit North American
Industry Code (NAICS)
Number of Jobs Required 10
Capital Investment Requirement No
Expandable for Later Year Jobs Yes, up to two times the number of jobs
applied for during the initial four year
participation term.
Available to Existng Industry Yes each of the new Jobs lasting Four
years are eligible.
Available to New Industry Yes each of the new Jobs lasting Four
years are eligible.
Available for Retention No
Amount of Award $1,500 base, with a $500 Green Collier
Quality Clean Job Bonus
Agreement Required.
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Attachment A
Payout Schedule Paid in installments over four(4)years
Specified Use of Funds None
Local Support Required Yes - 100% paid by the County if jobs
are located in Unincorporated Collier
County.
"But For" Incentive Applications must be submitted in
advance of public announcements or
any permit applications changing usage
or building occupancy related to the
projected jobs
Eligible Industries/Business Economic Base Industries defined as
Activities Qualified Targeted Industries by
Enterprise Florida Inc.
Ineligible Activity Any retail activities, elect. utility
company, or phosphate or solid
minerals severance, mining or
processing operation.
Distressed Area Exception Wage requirement waived and job
eligibility is reduced to 5 qualified
industry jobs in designated
economically distressed areas.
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Attachment B
STATE OF FLORIDA QUALIFIED TARGET INDISTRY TAX REFUND
PROGRAM DESCRIPTION& OVERVIEW
The State of Florida's Qualified Target Industry Tax Refund Program(QTI) is designed to facilitate the
attraction of high-value, export industry jobs that generate new wealth and create jobs. The program seeks
to diversify Florida's economy by targeting certain industry clusters of strategic importance to the state's
economic diversity.
Qualified Target Industry Tax Refund Program
The Qualified Target Industry Tax Refund (QTI)program was created by the Legislature in 1994 to
encourage the recruitment or creation of higher-paying, higher-skilled jobs in the state by awarding
eligible businesses tax refunds in exchange for creating jobs in certain target industries.The refund award
level is based on wages paid,number of jobs created,and the location in the state that the business
chooses to locate or expand. The QTI program is set to expire on June 30,2020,under current law.
In order to qualify for the program, an applicant business must fall into one of Florida's target industry
categories,which are developed by DEO and Enterprise Florida, Inc. (EFI). A diagram of targeted
industries is below:
0� D, UU 1[D TARGETED iNDDSTR fS fOR INCENTIVE
tflorido.com
i t tri t;7"-a
,'11::a HOMELAND FINANCIAL/
A4 IATION
. A ccs d .LIFESCIENCES INFOTECH SECURITY/ PROFESSIONAL
,�.ffi� AEROSPACE OFFENSE SERVICES
.r d'ANUFACTURING
'" kr' '''',,';'''.1.,'; CORPORATE HEADQUARTERS
W
"'°fi s � z m 1.., RCH -0.::EWPMEN '` " °
Biomass& Biotechnology Modeling,Simulation AVIATION: EQUIPMENT FINANCIAL SERVICES
Bends Processing Pdart,u' and Training Aircraft and Aircraft Optical Instruments Banking
Ene E m mere D ti tsar J Pbotnnics Paris Manutacwnng
r9Y 9 P P Nadgga dr,Ads insurance
Manufaaunng DD!DL DEVICES: Di Aal Media Mainterwnce Repair
9 AmmanNOn Semrtties and
Energy Storage and Overhaul of
97' a9 Laboratory and Soft are Aircraft, Electronic Investments
Technologic, Surgical instruments
Efearunics Navigation
PhotavolFaic D''''''''T'''''' t PRDFESSIDNpL
@ Telemmmunsations instrument TRANSPORTATION: S RYiCES:
Environmental G Manutactunng tat,/vdigid
Cormun ng �_ � Ce+poraic
0 lrgI'it is}ator Shipbuilding and Headquarters
Training Repy a {
Eagmming 1l
AEROSPACE: TECHNDLOGY. dal I
Space tel and fomputer systems Arcounung I
Guided Missue Elevan
} tanufa:.erg Consuh��g
c Srmutanwn and
kk t ':na.
brie.1- training
,.Y. +s/ , CnnMUIi ri nn.
Space Tech mbeces
't iaunch Cuerations
} ..,a.??.:-s+x.. _^ i Yet _
Global Logistics Food and Beverage
Marine Sciences Automotive Marine i
Mat-rlalsScience - Plastics and Rubber
Nano-technology t Machine Malmo l
Additionally, a business must:
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Attachment B
• Agree to create 10 new jobs or, if a Florida business planning to expand its operations,agree to
create a net increase in employment of at least 10 percent. DEO may grant a waiver to an existing
business located in an enterprise zone or rural county.
• Agree to pay employees an annual average salary that is at least 115 percent of the average
private sector wage in the area or of the statewide private sector average wage.DEO may waive
the wage requirement for businesses that locate in a rural county or city, in an enterprise zone, or
in a brownfield area or for manufacturing project.
• Receive a commitment of a 20 percent local match.The form of the commitment must be
included in a resolution passed by the county commission of the county where the project will be
located.
The QTI program offers a tax refund of$3,000 per created job. The per job tax refund increases to
$6,000 if the business is located within a rural county or an enterprise zone. The program allows for
additional tax refunds beyond the standard awards:
• $1,000 per job if the business pays an average annual wage of at least 150 percent of the average
private sector wage in the area the project is located;
• $2,000 per job if the business pays an average annual wage of at least 200 percent of the average
private sector wage in the area the project is located;
• $1,000 per job if the local financial support is equal to that of the state's incentive award; and
• $2,000 per job if the business falls within one of the high-impact sectors designated under s.
288.108,F.S., or increases exports of its goods through a seaport or airport in the state by at least
10 percent in value or tonnage in each of the years that the business receives a tax refund.
QTI businesses may not receive more than $1.5 million in refunds in a single fiscal year, or more than
$2.5 million if the project is located in an enterprise zone.
QTI businesses may claim refunds from one or more of the following taxes paid:
• Sales and use tax;
• Documentary stamp tax;
• Ad valorem taxes;
• Corporate income taxes;
• Insurance premium taxes;
• Intangible personal property taxes;and
• Certain state communications services taxes under ch. 202,F.S.
Local Matching Program Requirements
• The BCC approves a 20%local match of the total QTI award.
• The BCC must approve the type of funding through passage of a resolution of support.
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Attachment B
Program Name Qualified Target Industry (QTI) Participation
QTI Local Match
Type Refund
Award Made to Whom Qualified Target Industry Employers approved by State
Wage Requirement 115% of the average private sector wage in the area or of
the statewide private sector average wage. Wage
requirements can be waived in brownfields and enterprise
zones.
Number of Jobs Required 10 jobs, or agree to increase new employment by 10% if
existing business.
Capital Investment Requirement No
Expandable for Later Year Jobs No
Available to Existing Industry Yes
Available to New Industry Yes
Available for Retention No
Amount of Award $3,000 per job base.Award increases to $6,000 for jobs
located in enterprise zones. Bonus awards include:
• $1,000/job if the business pays an average annual
wage of at least 150% of the average private
sector wage in the area the project is located;
• $2,000/job if the business pays an average annual
wage of at least 200% of the average private
sector wage in the area the project is located;
• $1.000/job if the local financial support is equal to
that of the state's incentive award; and
• $2,000/job if the business falls within one of the
high-impact sectors designated under s. 288.108,
F.S., or increases exports of its goods through a
seaport or airport in the state by at least 10% in
value or tonnage in each of the years that the
business receives a tax refund.
Agreement Required—State level
Payout Schedule Paid in installments over four (4) years, based on job
creation milestones.
Specified Use of Funds None
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Attachment B
Local Support Required Yes-20% match paid by the County.
"But For" Incentive Yes—Managed by State
Eligible Industries/Business Activities Industries defined as Qualified Targeted Industries by
Enterprise Florida, Inc.
Ineligible Activity N/A. Only QTI businesses are eligible.
Distressed Area Exception Wage requirements may be waived for projects locating in
enterprise zones or brownfields.
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Attachment C
ADVANCED LONG-TERM PRODUCTIVITY STRATEGY PROGRAM(ALPS)
PROGRAM DESCRIPTION& OVERVIEW
The Advanced Long-term Productivity Strategy Program(ALPS)is designed to expand Collier County's
competitiveness in attracting extraordinary high value economic development projects in order to augment
participation in the State of Florida's existing Qualified Targeted Industries(QTI)program. The program will
encourage the creation of high skilled/high wage jobs within Collier County and diversify the economic base in
Collier County. It also has the potential to enhance the number of corporate headquarters in Collier County
while stimulating productivity and net new earnings into our county's economy. In addition it will be a focal
point in aligning our objectives with those of our partners and local educational and training providers.
Advanced Long-term Productivity Strategy Incentive Program
Qualified applicants may participate in the ALPS Incentive if the project creates at least 25 new jobs whose
average wage meets or exceeds the 150%of the County's average wage(currently $59,958). A two tiered system
will determine the award amount. Tier One provides a bonus incentive equal to 1.000%of actual payroll for each of
four years provided that the project's aggregate employment meets a minimum of 150%of the State's average wage
and the minimum job creation threshold.Existing jobs of an expansion project are excluded if the applicant is an
existing business. Tier Two provides a bonus incentive equal to 1.063%of actual payroll for each of four years
provided that the project's aggregate employment meets a minimum of 200%of the State's average wage and the
minimum job creation threshold of 25 new jobs.Only 10 qualified jobs are required for jobs located in officially
Cdesignated distressed areas(brownfields and enterprise zones).All new jobs must be full-time equivalents working at
least 36 hours per week,and eligible for full benefits.
Employers must adhere to all rules of the State's QTI program,but also 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 submitted.The
BCC must approve all applicants; and administration of the Program will be conducted by the County Manager
or designated staff. Only official forms and procedures are deemed sufficient for application to this program.
To participate,applicants must execute a formal agreement with the County stipulating the terms of the award,
which must include,but is not limited to:the award amount,the monitoring and evaluation schedule,and the
payment schedule.The applicant must agree to annual verification and certification of job creation for each of
the 4 years it receives payments under the award.The first performance verification is due 18 months following
the execution of an agreement between the applicant and the County, allowing the applicant up to 18 months to
create the required number of jobs. Failure to maintain the required new jobs and the average aggregate wage at
any point over the four year payment period will result in the applicant forfeiting program eligibility.
General Program Requirements
To be eligible, projects and businesses must adhere to all rules of the State's QTI program and agree to the Collier
specific requirements as a contingency for eligibility in Collier County's Advanced Longterm Productivity Strategy
Incentive. A summary of qualifications includes but is not limited to:
• If applicable,applicants must notify Collier County of intent to apply to the County's Advanced Long-term
Productivity Strategy Program before Collier County approves the local match contribution to that project's State
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Attachment C
QTI application and in all cases the ALPS application must be approved by the BOCC prior to the project's
commitment of intent.
• New businesses or Expansions of existing businesses in Collier County must create at least 25 new jobs that meet
150%of the lowest of the County or State's annual average wage to qualify for Tier 1 and 200%to qualify for Tier
2.Tier 1 businesses are eligible to receive a grant equaling 1.00%of aggregate payroll;Tier 2 businesses are
eligible to receive a grant equaling 1.063%of aggregate payroll.Only new jobs created will be counted toward the
total payroll for the purpose of the award amount.
• Each new employee hire must be a full time equivalent working an average of 36 hours per week and eligible for
full benefits.
• Job creation requirement is reduced to 10 qualified new jobs in economically distressed areas.
• Applicants must execute an agreement with the County to participate in the program.The agreement must at a
minimum include the total award amount,the job and wage verification schedule,and the payment schedule.
• 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.
• The first performance verification is due 18 months from the execution of an agreement.
• Grant is disbursed over four annual installments,with aggregate payroll adjusted for inflation after the initial year
as compliance for each year is verified. Method of evidence verification will be substantiated by County-approved
records such as:IRS Form 941,Payroll Records,and a Florida Department of Revenue Employer's Quarterly
Report(UCT-6)Form for each new employee or an acceptable equally reliable substitute.
• The program is administered by the County Manager or his or her designee.
• The County Manager is responsible for developing all required forms,including the ALPS Program application
form.
• Award payments are subject to availability of funds.
Program Name Advancing Long-Term Productivity Strategy Incentive
QTI Augmentation
Type Grant
Award Made to Whom Eligible Target Industry Employers
Wage Requirement Tier One 150% of the lowest of County, MSA or State
Average Wage or$59,958; Tier Two 200% of the lowest
of County, State or MSA Average Wage or$79,944.
Number of Jobs Required 25
Capital Investment Requirement No
Expandable for Later Year Jobs Yes (Percentage of Payroll Captures Job Increases) up to
two times the number of jobs applied for during the initial
four year participation term.
Available to Existing Industry ` Yes each of the new Jobs lasting Four years are eligible.
Available to New Industry Yes each of the new Jobs lasting Four years are eligible.
Available for Retention No
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Attachment C
Amount of Award Variable annual award equates to a %of payroll,
provided an average aggregate wage is met. Tier One-
Average wages equaling 150% yield a 1.0% of payroll
award; Tier Two Average wages equaling 200% yield a
1.063% of payroll award. * Existing firm's annual award
will be based on segregated new job payroll, existing jobs
are excluded from calculation.
Agreement Required
Payout Schedule Paid in installments over four(4) years after each year's
performance is certified, each year's payroll is adjusted for
inflation over previous year First annual performance
evaluation is due 18 months from execution of the
agreement.
Specified Use of Funds None
Local Support Required Yes- 100% paid by the County if jobs are located in
Unincorporated Collier County.
"But For" Incentive Applications must be submitted in advance of commitment
of intent, public announcements or any permit applications
changing usage or building occupancy related to the
projected jobs
Eligible Industries/Business Activities Industries defined as Targeted Industries by Enterprise
Florida, Inc.
Ineligible Activity Any retail activities, elect. utility company, or phosphate or
solid minerals severance, mining or processing operation.
Distressed Area Exception Minimum Job eligibility threshold is reduced to 10 qualified
industry jobs in designated economically distressed areas.
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BACKGROUND 9/24/2013 11 .C.
ADDENDUM 5/28/2013 11.D.
EXECUTIVE SUMMARY
Recommendation to review the attached draft proposed changes to the Collier County
Economic Development Ordinances and direct the County Manager to present those options to
the community for input and additional recommendation. Proposed drafts of conceptual
changes include replacing and consolidating all existing economic development incentive
program ordinances with the exception of the Innovation Zones Ordinance into three simplified
incentive programs as Collier County Policy based on adoption by formal motion or resolution
rather than adopted ordinance.
OBJECTIVE: Implement Board of County Commissioners (Board) directive for County Attorney
and County Manager or his designee to initiate development of financially feasible, legally sound and
publicly vetted economic development programs utilizing the following suggested guidelines: 1)
amending and or extending existing economic development ordinances for conformity with existing
state standards, 2) address potential economic development confidentiality and disclosure issues
identified within those amended ordinances, and 3)propose other recommendations or approaches for
achieving the above mentioned goals.
CONSIDERATIONS: At its February 12, 2013 regular meeting, during discussions of
Commissioner Hiller's Agenda Item 10K, the Board directed that staff develop proposals to improve
the County's Economic Development Programs for the purpose of public vetting at a future Board
Workshop. The following draft proposals have been developed incorporating several safeguards and
features to help insure that each program addresses critical issues identified above and meets a
rigorous public policy test, holding effectiveness in competing for quality job growth yet maintaining
fiscal responsibility. A copy of the Board's discussion is included as back-up to this agenda item,
Public Policy Test
In general, the draft proposals integrate state incentive standards when feasible; adopt rules similar to
the established state statutes regarding disclosure and treatment of official economic development
prospect records and trade secrets F.S.( 288.075). That statute provides that subsequent to an official
request from a prospect,all county officers and employees with responsibility related to promoting the
general business interests or industrial interests, are bound to 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. Additionally,
compatibility with state guidelines regarding target industry eligibility and performance compliance
monitoring is mimicked whenever possible. Because the new proposals are structured as a
performance based incentives (compliance is required before payment) the County's exposure and
risk is minimized. Also, fiscal accountability is assured in that compliance certification will validate
that the annual perfonnance obligation has been met prior to awarding the grant. Also important,
each incentive proposal is structured to apply equitable treatment of all qualified applicants within
distinctive categories such as industry classification, wage levels and geographic location. Finally
each program has criteria which when applied establishes a rational business case for eligibility and
provides a suitable return based on the incentive expenditure.
Why Effective Business Inducements are Important
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Appeal as an inducement to a prospect or existing business is an obvious feature to be considered in
developing incentives. An incentives' monetary value to the prospect in comparison to other
jurisdiction's offers is obviously important, but is in many cases not the only competitive factor. In
any case, it is vital to remain relatively competitive, in effect enabling a community's inherent
comparative advantages to be appreciated, without becoming hyper-competitive with other
jurisdictions. Though out-bidding other jurisdictions is not always practical, it is imperative for the
community to extend positive overtures to prospects. Financial incentives, even those of relatively
modest value, provide an unmistakable signal of appreciation and validation of community support.
Incentives programs that are user friendly and incorporate simple, quicker application processes can
be distinct comparative advantages. A moderate financial incentive with favorable terms may hold a
higher comparable value for some prospects than a cumbersome but more significant financial
incentive. Incentive monitoring and process for compliance should be adequate for upholding the
governmental fiduciary duty, but also streamlined and commiserate with the level of risk exposure for
the County. In addition, less complex features in an incentive improve the ease and understanding of
communicating the program attributes to prospects while promoting expansions and recruitment of
new businesses. Prospects and expansions are potential investors in communities and expect a level
of certainty as well as a concise understanding of obligations and benefits from inducement programs.
Simplifying incentives also minimizes the complexity of administration and represents a distinct
advantage in minimizing staff's burden for monitoring and post performance audit operations of
programs.
Program Summaries and Performance Measures
Indicators of an improving and healthy economy generally include short term metrics such as growth
in employment and reduction of unemployment. Long term aspects such as a diverse industry mix,
improved net earnings, and an expanding productivity rate are equally important. Ideally, a
community's economic development approach should structure incentives to directly link
inducements to optimizing gains in short and Iong term metrics. To help achieve a balanced overall
incentive approach,three proposed programs(drafts attached)each include specific features to appeal
to categories of industries aggregated primarily by labor skills set demands and wage levels.
Base Industry Promotion: As a first level program platform, the draft proposed Base Industry
Promotion program would provide a$1,500 grant($500 bonus for green products/processes)per job
to qualified employers creating at least 10 new jobs to Collier County. The program is in general
designed for fines that produce goods, commodities or services with wages that typically fall below
the state's Qualified Target Industry Tax Refund wage standard. Only industries designated among
the state's target industries would be eligible. The wage requirement would be directly linked to the
latest Collier County specific industry average wage applied for, as published by the U.S. Bureau of
Economic Analysis or equivalent reliable data authority. (Attachment A)
QTI Participation: The second level program platform is a recommendation to continue the offer of
participation with a local financial match (20%) combined with the state's match (80%) match for
eligible applicants to the state's Qualified Target Industry Tax Refund program. Refunds between
$3,000 and$5,000 per job,with added bonuses of up to$2,500 for brownfields and$3,000 per job for
enterprise zones. Staff will continue to support the leveraging of Florida's most frequently utilized
incentive QTI. (Attachment B)
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Advancing Long-term Productivity Strategy (Concept): The highest level program platform is a draft
proposal still in development that would establish a premium incentive program to enhance
competitiveness and appeal to business prospects creating at least 25 new jobs with very high wages.
The proposed program would incorporate flexibility for the applicant in that the grant award amount
would be linked to the actual value of paid wages or earnings of eligible jobs. Strategically, linking
the award amount to payroll is beneficial as it leverages the increase in high value jobs to stimulate
productivity gains,a true indicator of a community's long term economic health.
The applicant would be accountable to meet the minimum threshold of job numbers, but would be
motivated to create more jobs than promised to capitalize on the annual grant payment for all new
eligible jobs created within the incentive agreement term (four years). Additional requirements
include an established baseline of aggregate average wages along with provisions to restrict eligibility
of jobs domiciled outside of Collier County. The program would require applicants to meet QTI
eligibility criteria for target industries and reporting requirements. Conceptually, the first tier
provides a wage minimum that would begin at 150%of the County's annual average wage(currently
$59,958). The award would be distributed over four years after annual performance compliance at a
rate of 1%or(.0100)of total annual payroll (adjusted for inflation). The second tier provides a wage
minimum that would begin at 200% of the County's annual average wage (currently $79,944). The
award would be distributed over four years after annual performance compliance at an annual rate of
(.01063) or 1.063% of total annual payroll (adjusted for inflation). The approach will provide a
unique flexibility to proactively reward creation of those types of jobs that can have the greatest
impact on improving Collier County's productivity growth rate.(Attachment C)
Flexibility of Policy by Resolution over Adopted Ordinance
Although Collier County's climate for quality job growth is improving, as evidenced by recent state
rankings in job growth rate,the persistent economic downturn has created a tough environment for our
citizens. The future economic well being of Collier County citizens could depend significantly on our
community's capacity to nurture industries that are innovative and competitive enough to survive in
the global economy. A community's adaptability to meet the challenges of attracting those fast
changing industries will be keys to long term economic sustainability. The flexibility offered by
generating incentive policy by resolution can help the County's administration be more responsive
allowing innovation and revisions within a timely, orderly fashion that retains rigor and enforcement
provisions comparable to incentive ordinances. The capacity for incentive policy by resolution also
projects a message of business friendliness, and reinforces to prospects the County's intent of
supporting businesses proactively.
In sum,these proposed changes with three levels of incentive programs equips the County's economic
development efforts to compete for differing industry expansion and recruitment opportunities to
optimize the probability of improving the community's economic prosperity. For the reasons
provided above, staff recommends acceptance of the attached draft proposed changes to Collier
County Economic Development Ordinances, and to direct the County Manager or his designee to
present those options to the community for input with the intention of convening a Board workshop
for additional consideration and discussion.
FISCAL IMPACT: To be determined with the final proposal.
GROWTH MANAGEMENT IMPACT: None at this time.
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LEGAL CONSIDERATIONS: The County Attorney will work with Mr. Register to develop these
proposals into a formal Economic Development Program for consideration at a later Board meeting.
Mr. Register's recommendation to accomplish this by Resolution rather than by formal ordinance
would give the Board the ability to more quickly adapt these programs to changes in the market as
well as greater flexibility in crafting economic development agreements with each applicant. Of the
current ordinances,only the Innovation Zone Ordinance (Ord. 2010-20) is being proposed to remain.
Features of the remaining Economic Development Ordinances which have proven valuable can be
incorporated into this new program. This item requires majority support for Board approval. -JAK
RECOMMENDATION: That the Board review the attached draft proposed changes to the Collier
County Economic Development Ordinances and direct County Manager or his designee to present
those options to the community for input and additional recommendation. Proposed drafts of
conceptual changes include replacing and consolidating all existing economic development incentive
program ordinances with the exception of the Innovation Zones Ordinance into three simplified
incentive programs as Collier County Policy based on adoption by formal motion or resolution rather
than adopted ordinance(Attachments A,B,C).
Prepared by:Bruce Register,Director,Business and Economic Development
Attachments: Current Collier County Economic Development Ordinances; Transcript of February
12,2013 Board discussion;Three proposed Incentive Programs(Attachments A,B,C)
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