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Agenda 09/24/2013 Item #11D 9/24/2013 11 .D. EXECUTIVE SUMMARY Recommendation to Adopt a resolution approving the Collier County Office of Business & Economic Development Prospect #13-011, as a Qualified Applicant to Florida's Qualified Target Industries (QTI) Tax Refund Program, providing up to $65,000 of local financial support for an expansion of an existing high value added manufacturing firm in Collier County that will create 65 new quality jobs. OBJECTIVE: That the Board of County Commissioners (Board) approves Collier County Office of Business & Economic Development Prospect #13-011 as a qualified applicant pursuant to section 288.106, Florida Statutes; and identifying sources of local financial support of $65,000 as local participation in the qualified target industry tax refund program for fiscal year(s) 2015-2021. CONSIDERATIONS: A business prospect of the Collier County Office of Business & Economic Development (#13-011) proposes to expand an existing high value added manufacturing firm in Collier County, creating 65 new quality jobs with average wages of at least 115% of the Naples-Marco Island MSA's private sector average wage, which is equivalent to approximately $45,968. This prospect is also expected to generate up to $2 million in capital investment. 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 115% of the MSA average wage over the four year term. 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 the case that Prospect #13-011, 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 $1,000 per job or $65,000 total spread over at least four years. The maximum cost to the County for this applicant creating new jobs within Collier County is $65,000 spread over four years or more. FISCAL IMPACT: The maximum cost to the County for this QTI applicant is $65,000 spread over a minimum of four years, anticipated to begin in FY 2015. Subject to appropriations, funding will continue for this project through FY 2021. As necessary, a budget amendment will be brought to the Board prior to funds being expended. Funding for Economic Development Initiatives is available in the FY 2014 Proposed Budget Economic Development Fund 007. GROWTH MANAGEMENT IMPACT: None. LEGAL CONSIDERATIONS: This item is approved as to form and legality and requires majority vote for approval. -JAK Packet Page-456- 9/24/2013 11 .D. RECOMMENDATION: Adopt a resolution approving the Collier County Office of Business & Economic Development Prospect #13-011, as a Qualified Applicant to Florida's Qualified Target Industries (QTI) Tax Refund Program, providing up to $65,000 of local financial support for an expansion of an existing high value added manufacturing firm in Collier County that will create 65 new quality jobs. Prepared by: Bruce Register, Director, 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 Packet Page-457- 9/24/2013 11 .D. COLLIER COUNTY Board of County Commissioners Item Number: 11.11.D. Item Summary: Recommendation to adopt a resolution approving the Collier County Office of Business and Economic Development Prospect#13-011, as a Qualified Applicant to Florida"s Qualified Target Industries (QTI)Tax Refund Program, providing up to $75,000 of local financial support for an expansion of an existing high value added manufacturing firm in Collier County that will create 75 new above average wage jobs. (Bruce Register, Business and Economic Development Director) Meeting Date: 9/24/2013 Prepared By Approved By Name: IsacksonMark Title:Director-Corp Financial and Mgmt Svs,CMO Date: 9/18/2013 6:21:45 PM Name: IsacksonMark Title:Director-Corp Financial and Mgmt Svs,CMO Date: 9/18/2013 6:36:54 PM Packet Page-458- 9/24/2013 11 .D. RESOLUTION NO.2013- A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, RECOMMENDING THAT COLLIER COUNTY OFFICE OF BUSINESS & ECONOMIC DEVELOPMENT PROSPECT #13-011, A CONFIDENTIAL PROJECT PURSUANT TO SECTION 288.075, FLORIDA STATUTES, BE APPROVED AS A QUALIFIED TARGET INDUSTRY BUSINESS PURSUANT TO SECTION 288.106, FLORIDA STATUTES; AND IDENTIFYING SOURCES OF LOCAL FINANCIAL SUPPORT OF $65,000 AS LOCAL PARTICIPATION IN THE QUALIFIED TARGET INDUSTRY TAX REFUND PROGRAM FOR FISCAL YEAR(S) 2015-2021. WHEREAS, Collier County Office of Business & Economic Development Prospect#13- 011 is a confidential project pursuant to Section 288.075. Florida Statutes, and a Qualified Target Industry business as defined in Section 208.106,Florida Statutes; 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 Board of County Commissioners of Collier County, Florida recognizes and acknowledges the importance of expanding the creation of Qualified Targeted Business in Collier County: and WHEREAS, Collier County Office of Business & Economic Development Prospect#13- 011 has applied to the State of Florida's Qualified Target Industry Tax Refund Program ("Program"); and WHEREAS, the Company identified as the Collier County Office of Business & Economic Development Prospect #13-011, wishes to expand a Collier County operation consisting of 65 new qualifying value-added jobs in three phases; and WHEREAS, the Company identified as the Collier County Office of Business & Economic Development Prospect #13-011 will provide high-wage, value-added employment to 1 Packet Page-459- 9/24/2013 11 .0. Collier County citizens with average wages of at least $45,968 or 115% 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 Collier County Office of Business & Economic Development Prospect #13-011 is vital to the public purpose of employing Collier County citizens and ensuring the County's economic vitality. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA that that the Board hereby recommends that the Collier County Office of Business&Economic Development Prospect#13- 01 1 be approved as a Qualified Target Industry Business pursuant to Section 288.106, Florida Statutes. This recommendation is based upon the creation of the specified jobs and is contingent upon Collier County's review of Collier County Office of Business & Economic Development Prospect #13-011'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 $65,000; 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 24th day of September, 2013. ATTEST: BOARD OF COUNTY COMMISSIONERS DWIGHT E. BROCK, CLERK COLLIER COUNTY, FLORIDA By: By: , Deputy Clerk GEORGIA A. HILLER, ESQ. CHAIRWOMAN Approved as to form and legality: Jeffrey A. Klatzkow, County Attorney 2 Packet Page-460-