Loading...
Agenda 06/28/2011 Item #10A 6/28/2011 Item 10A EXECUTIVE SUMMARY Recommendation to approve the application by Arthrex, Inc. and Arthrex Manufacturing, Inc. to participate in the Fee Payment Assistance Program, the Job Creation Investment Program, the Advance Broadband Infrastructure Investment Program, and the Fast Track Regulatory Process Program. (Fiscal Impact Estimate: $2,282,969) OBJECTIVE: To receive Board of County Commissioners approval of the June 9, 2011 economic stimulus program application (Exhibit A) by Arthrex, lnc, and Arthrex Manufacturing, Inc. ("Arthrex") to participate in the Fee Payment Assistance Program, the .lob Creation Investment Program, the Advance Broadband Infrastructure Investmcnt Program, and the Fast Track Regulatory Process Program. BACKGROUND: The Economic Incentive Programs, established by Collier County, are intended to: (I) Provide performance-based programs offering financial relief for eligible targeted industry development or expansion projects in Collier County to mitigate the effects of rising development costs; (2) Provide for the economic well being of Collier County residents by providing high-wage employment opportunities in Collier County: (3) Lessen the seasonal cycle of Collier County's economy; and (4) Encourage investment opportunities for new or existing compal1les thus increasing and diversifYing the county's tax base. - Collier County offers six local incentive programs. Each program is codified in Chapter 49 of the Collier County Code of Laws and Ordinances (Exbibit B). To participate in these programs a new or expanding business must meet specified criteria related to the type of industry proposed, number of jobs created and the average wage of the new jobs, GENERAL PROJECT OVERVIEW: Arthrex is a privately beld corporation and a long- established member of the Collier County business community, The company is committed to providing the finest quality products and educational services to mcct the special needs of orthopedic surgeons and their patients. Since locating in Florida in ] 991, the company has experienced exceptional growth and now employs 1,029 people at their Collier County location. Currently Artbrex is proposing to undertake a 5-year, multi-step expansion plan with a capital investment of $50 million that includes construction of a new 160,000sf building footprint facility in Eastern Collier County (with 20,000 of second floor mezzanine office space), 100,000sf of renovation/expansion at tbe Arthrex Creekside complex, $20 million purcbase of new equipment, and the creation of 600 new Collier County jobs. --- CONSIDERATIONS: On June 9, 2011, tbe Economic Development Council submitted a revised Economic Stimulus Program Recommendation Form (Exhibit A) changing Altbrex's (Arthrex, Inc, and Arthrex Manufacturing, Inc.) original May 18, 20] 1 economic stimulus program application to change their economic stimulus participation 10: . Fee Payment Assistance Program Packet Page -118- 6/28/2011 Item 10A . Job Creation Investment Program . Advance Broadband Infrastructure Investment Program . Fast Track Regulatory Process Program. The Board's review and approval process of an economic stimulus program contains two steps: (1) Approval of the Economic Stimulus Program Application, and (2) Final approval of the Economic Stimulus Program Agreement. The local Economic Incentive Programs are performance based and "job verification" as well as monitoring "program compliance" is performed by tbe Impact Fee Administration Section of the Grow1b Management Division. Fee Payment Assistance - actual incentive award may not exceed the impact fees due and payable for the proposed development (see Exhibit B for details): Eastern Collier: Construction is proposed to begin in FY2012 Fiscal Impact: $1,198,568 maximum eligible based on capital investment** Estimated Impact: $ 565,198 Western Collier: Construction/renovation is proposed to begin in FY2014 Fiscal Impact: $941,732 maximum eligible based on capital investment*- Estimated Impact: $ 475,000 "ACTUAL I"'CENTlYE AWARD MA Y NOT EXCEED THE IMPACT .-EES Dt'E A"'D PA YABLE FOR THE PROPOSE!) DEVELOPMENT. CONVERSELY, A'IV IMPACT FEES DIrE IN EXCESS OF THE INCE",TlYE AWARD ARE THE RESJ'ONSIBILlT\' OF THE PROPERTY OW'IER. Job Creation Investment - pays $2,000 for each new job created (see Exhibit B for details): Eastern Collier: Must create 10jobs at 1 15% of the average wage or $44,527 Al1hrex proposes to create 150 jobs at an average wage of $59,580. Fiscal Impact: $300.000 Western Collier: Must create 20 jobs at 150% of the average wage or $58,079 Al1hrex proposes to create 450 jobs at an average wage of $59,580. Fiscal Impact: $900,000 Advance Broadband Infrastructure Investment Program - pays up to $25,000 to advance the deployment of telecommunications infrastructure (see Exhibit B for details): Fiscal Impact: $25.000 maximum (reimbursable) Fast Track Regulatory Process - expedite development review for qualified projects: The company qualifies for tbc program and has been administratively approved for participation as provided in Rcsolution No. 2006-12, Fiscal Impact: None associated with this Program, aside from stafftimc. FISCAL IMPACT: Two independent economic impact studies are attacbed: Innovation Insight, Inc.- The Economic Impact of Arthrex, Inc. and Dr. Gary Jackson. FGCU - Expansion of 011 Existing Medical Equipment and Supplies Manufacturing Company (Exbibits C & D respectively). Page 2 of 4 Packet Page -119- 6/28/2011 Item 10A According to Dr. Gary Jackson, Director, Regional Economic Research Institute, Lutgert College of Business at Florida Gulf Coast University, the firm's value added economic impact on the completed expansion project from the year 2017 and beyond is forecasted to be $124.8 miliion annually. As the company grows to add the 600 full-time employees, the expansion project will create 1,084 total employees (includes direct, indirect and induced employment). The economic impacts of construction will result in the creation of 103 new construction jobs and will have an overall employment impact of 147 jobs in FY2012. The additional labor income is $7.6 million and the value added is $10.4 million. See the ch3li below. 2017 Employment Gains in Collier County Employment Labor Income Value Added Expenditures Direct. 600 $57,996,720 $75,740,899 $208,594,477 Indirect.. 262.2 $16,519,292 $28,250,814 $50,020,748 Induced'" 222.6 $10,307,694 $20,800,815 $34,154,291 Total 1084 $84,823,706 $124,792,528 $292,769,516 Employment Labor Income Value Added Expenditures Direct 103.1 $5,567,107 $6,752,851 $17,000,000 Indirect 21.6 $1,155,638 $1,769,584 $3,307,905 Induced 22.7 $929,496 $1,877,792 $3,080,029 Total 147,4 $7,652,241 $10,398,226 $23,387,933 2012 Construction Expenditures in Collier County .Dlrel:t impacts consist of permanent jobs, wales and output of tl1l!! company itself. "Indirect impacts are tM Jobs, wages and output created by businesses, which provide Coods and services essential to the construction of the project, the special event, tourist activity, or to the n@wcompany. TIley are also referred to as "supplierH impacts. These businesses fa"le from manufacturers (who make .oods) to wholesalers (who deliver loods) to janitorial firms who clean the buildings. .. -Induced Impacts art! the result of spendinc of the Willes and Alaries of the direct .nd indirect employees on items such as food, housing, transportation and medical services. this spendinc creates induced employment In nearly all sectors of the economy. especially service sectors. Fiscal Year Budgeting: Local economic incentive programs are subject to the availability of funding, as budgeted by the BCC annually through the Gcncral Fund (001). . The current FY20 11 budget contains $192,700 to fund appl icants with executed agreements or agreements pending approval of which $34,001 has been paid to date. See Exhibit E for FY2011 Economic Development Incentive Budget. . If the castern portion of thc construction phase of this project is accclerated and a site plan is approved, tbe potential cxists for a FY 11 fee payment assistance payout totaling $151,648, A majority if not all of this incentive payout can be funded from existing appropriations within the General Fund Economic Development budget. . Funding for FY2012 and following years will be budgetcd in the Economic Development budget. All of the financial information relatcd to the local incentive programs is reviewed annually as part of the budget preparation in order to accurately providc a recommended funding level for the programs each fiscal year. Estimated Direct Fiscal Impact to Collier County Budget - $2.282,969 (Exhibit F): Page 3 of 4 Packet Page -120- 6/28/2011 Item 10A Fee Pavment Assistance lmpact: The calculations in Exhibit F are for a I 60,000sf building footprint that will contain 20,000sf of second floor mezzanine space -, for a total Impact Fee calculation of 180,000sf of commercial space. Based on the proposed capital investment of $50 million, Arthrex is eligible for a total incentive of $2, 140,300: bowever an estimated impact to the County is $565,198 for eastern Collier location and $475,000 for western Collier - total of$1,040,198. If General Fund (001) Impact Fee Fund payments are made over five years, 2% interest payments are estimated at $17,771. The total estimated fiscal impact is $1,057,969. Job Creation Investment Impact: Based on the projected creation of 600 jobs, Arthrex is eligible for an incentive of $ 1200,000, paid over three years following year the job was created and validated. Advanced Broadband Infrastructure Investment Impact: Up to $25,000 (a reimbursable expense). GROWTH MANAGEMENT IMPACT: This request is consistcnt with Objective 3 of the Economic Element of the Collier County Gro'Wih Management Plan which states: "Collier County will support programs which are designed to promote and encourage the recruitment of new industry as well as the expansion and retention of existing industrics in order to diversify the County's economic base." LEGAL CONSIDERATIONS: Approval of this item is only the tirst of two steps in this process, and does not bind the Board. If this item is approved, staff will come back to the Board with both a proposed funding mechanism and proposed agreements; one each for Fee Payment Assistance Agreement, Job Creation Invcstment and Advanced Broadband Infrastructure Investment which the Board may approve or reject. This item is legally sufficient for Board action. A majority vote is required for approval. -JAK RECOMMENDATION: That the Board of County Commissioners approve the June 9, 201 I economic stimulus program application by Arthrex, Inc. and Arthrex Manufacturing, Inc. to participate in the Fce Payment Assistance Program, the Job Creation Investment Program. the Advance Broadband Infrastructure Investment Program, and the Fast Track Regulatory Process Program, and for Staff to return with agreements for Board apprO\'a1. Prepared by: Amy Patterson, Impact Fee and Economic Development Manager David Jackson, Executive Director, Business and Economic Development Attachments: Exhibit A - Incentive Application and EDC Request Package Exhibit B - Chapter49 Economic Incentives Ordinance Exhibit C - Innovation Insight. Inc, Economic Impact Report (Artbrex, Inc,) Exhibit D - FGCU Economic Impact Study (Arthrex, Inc.) Exhibit E - FY20I I Economic Development Incentive Budget Exbibit F - Artbrex Inccntive Request Sprcadsheet Page 4 of 4 Packet Page -121- 6/28/2011 Item 10A COLLIER COUNTY Board of County Commissioners Item Number: IDA Item Summary: Recommendation to approve tbe application by Arthrex, Inc. and Artbrex Manufacturing, Inc. to participate in the Fee Payment Assistance Program, the Job Creation Investment Program, the Advance Broadband Infrastructure Investment Program, and the Fast Track Regulatory Process Program. (Fiscal Impact Estimate: $2,282,969) (David Jackson, Executive Director, Business & Economic Development) Meeting Date: 6/28/2011 Prepared By Name: lacksonDavid Title: Executive Director, CRA, 6/20/20 11 9: 15:05 AM Submitted by Title: Executive Director, CRA, Name: lacksonDavid 6/20/20 11 9: I 5:07 AM Approved By Name: Patterson Amy Title: Manager - Impact Fees & EDC,Busincss Management & Date: 6/20/2011 10: 11 :54 AM Name: KJatzkow.leff Title: County Attol11ey, Date: 6/21/2011 3:45:33 PM Name: Klatzkow.leff Title: County Attorney, Date: 6/21/2011 3:56:51 PM Name: IsacksonMark Title: Director-Corp Financial and Mgmt Svs,CMO Packet Page -122- 6/28/2011 Item 10A Date: 6/21/20114:27:06 PM Name: OchsLeo Title: County Manager Date: 6/21/20114:37:07 PM Packet Page -123- ---- I c;.OI'Ntr ~.......roy -..........-. ,,~.~_...,.~..,. .--, ,- "',~._- '.~'- I EXHIBIT A-I -~_._-----,- ..- --.~_._--,_..._--_._,. 6/28/2011 Item 10.A. I;~ ECONOMIC DEVEWPMENT C.oUNClL oj' ~,N,"1r "."'1. 1 [M"l,' --~ Economic Stimulus Program Recommendation Form for Anhre:w. Inc and Arthrex Manufacturino Name of Business 1. Economic Stimulus Progrems: 1!; Broadtland Infrastructure Investment 2!( Fast Track Permitting 1!; Fee Payment Assistance 1\. Job Creation 2. Collier County location: 1!; Westem Collier County- west of 951 1!; Eastern Collier County. east of 951 o Immokalee Enterprise Communityl Enterprise Zone 0 Everglades City Enterprise Zone 3. pro;ect quelIficetions: Number of current Colloer County employees: Number of new jobs resulting from project: Total retained and new ,obs: 1029 600 1629 Avg. Wage: Avg. Wage: Avg, Wage: S63.ooo 559.580 S61,740 Packet Page -124- 6/28/2011 Item 10A ~, . '. I ,-'- ! 4. Schedule of inc:entive fund~ ;J~~tiH?(~y Collier County fiscal year Oc:tober-September): _, ,,__ n _ '" _..J IT FY FY FY IT FY FY Total 2011 2014 2015 2016 2017 2018 ill! Job Creation Phase , $266,666 $266,667 $266.667 $800.000 Phase " $66.666 $66.667 $66,667 $200,000 Phase III $66,666 $66.667 $66.667 $200,000 Fee Payment Up 10 Up to Asslstanc:e $1,198,568 $941.732 Program Broadband $8.333 $8,333 $8,334 $25,000 Total $1,198,568 $941,732 $ 274,999 $341.666 $408.334 $133.334 $66.667 $ 3,365,300 5. Ec:onomic: Impact Multipliers: NAtCS Code: 339112 SIC Code: Earnings Multiplier: __ Employment Multiplier. _nn_ Economic: Davalo_nt Counc:1I of Collier County Recommeodldlon Approved: 8N2011 o.te Tammie NerrlIlcek, Prnldent & CEO Effective 03108 Page 2 of 2 Packet Page -125- 6/28/2011 Item 10.A. GENERAL PROJECT OVERVIEW GENERAL PROJECT OVERVIEW Arthrex, Inc. and Arthrex Manufacturing, Inc. Name of Business Arthrex Expansion Project Title or Code Name (1-5 word description) FOR EDC USE ONLY Date Received Date Revised Date Completed EDC Project Number Contact the Economic Development Council of Collier County to discuss your project and application before submitting a formal proposal. The completed and signed application must be filed with: ~oc ECONOMIC DEVEWPMEN'l' COUNCIL ()j'"Co!f':f" (:'.'#/(,); Fltnidl Growing Great Idea! 3050 North Horseshoe Drive, Suite 120 Naples, FL 34104 Phone: 239-263-8989 Fax: 239.263.6021 www.eNsolesFlorida.com J& CP Packet Page -126- 6/28/2011 Item 10A GENERAL PROJECT OVERVIEW 1. BUSINESS INFORMATION A. Legal Name of Applicant: Arthrex, Inc. and Arthrex Manufacturing, Inc. B. Mailing Address: 1370 Creekside Blvd street Address Naples City C. Name of Parent Company: D. Primary Business Unit Contact: Title: Mailing Address: FL State 34108 Zip Code Arthrex, Inc. Kevin Grieff Vice President of Operations 1370 Creekside Blvd street Address Naples FL City State Telephone: 239-643-5553 Fax: Email: Kevin.arieff@arthrex.com Website: www.arthrex.com E. Business Unit's Federal Employer Identification Number: (Please complete either the substitute W-9 Fa"" at the end of this application or attach a completed IRS Form W-9.) 34108 Zip Code I. 06-1121728; Arthrex, Inc. 1325343 Arthrex Manufacturing, Inc, 2374576 Arthrex, Inc. 21-8012122369-5 Arthrex Manufacturing, Inc, G. Business Unit's Florida Sales Tax Registration Number: 21-8011964444-2 H. Will the business unit or Its parent company have Federal Corporate Income Tax liability attributable to this project? If yes, will there also be State Corporate Income Tax Liability Yes x No attributable to this project? Is the business unit minority owned? Yes 0 No [8J If yes, explain: F. Business Unit's Unemployment Compensation Number: Yes o No x J. What is the business unit's tax year (ex: Jan 1 to Dee 31): Jan 1 to Dec 31 K. Has this business unit, or any related entities, applied for andlor been approved for State incentives in the past? Yes [8J No 0 If yes, explain: Qualified Target Industry Packet Page -127- ..v qy 6/28/2011 Item 10A GENERAL PROJECT OVERVIEW 2. PROJECT OVERVIEW A. Which ofthe following best describes this business unit: o New business unit to Florida t8J Existing Florida business creating and / or retaining jobs' If an expansion, how many jobs are currently in 1he expanding business unit? Arthrex, Inc. 490, Arthrex Manufacturing, Inc. 591 (1,081 Total) B. How many individuals are employed at all Florida locations? C. Are any jobs being transferred from other Florida locations? Yes 0 No t8J If yes, how many jobs and from where? Why are these jobs moving and why is it justified in light of the statutory language governing the applicable incentive program(s)? N/A D. Give a full description of this project, including a company overview, the primary activities I functions of this business unit and project, and the reasons for contemplating an expansion In I relocation to Florida: Project is a multi step expansion plan that includes the construction of a 160,000 square foot manufacturing and distribution center in eastern Collier County. the purchase of additional land in the Creekside location and the construction of additional parking, and the retrofitting and/or construction of 100,000 square feet of space into additional administration capacity. This expansion plan is required in order to bring additional manufacturing capacity in-house and away from out of state vendors and to accommodate the Company's expended CAGR of 11% over the next 7 years. E. In what Targeted Industry(ies) does Manufacturing, Corporate Headquarters. the proposed project operate?: Life Sciences F. Break down the project's primary functlon(s) and the corresponding wages: Based on com an of em 10 ment Arthrex, Inc. versus Arthrex Manufacturin . Inc Project Function total = 100% Arthrex lnc, 438 Arthrex Mfg. Inc. 591 (1,029 Total) Business Unit Activities 5 Digit NAlCS Code(s) nnuallzed Wage ($) Surgical and Medical Instrument Mf - M mt - Arthrex, Inc. Surgical and Medicallnst. Mfg - Arthrex Manufacturin , Inc. 339112 37.72% $82,000 339112 62.28% 100% $46,000 $59,580 avera e G. What is the project's proposed location address: Creekside Blvd & Parkway and Ave Maria Street Address City Stata Zip Coda What is the project's current location address (if different): 1360 & 1370 Creekside Blvd and 1250 Creekside Parkway Street Address Naples FL 34108 Packet Page -128- Cjy}~ 6/28/2011 Item 10A GENERAL PROJECT OVERVIEW City State Zip Code H. Is the project location within a current or proposed Brownfield site I area? Yes 0 No [8j If yes, attach a copy of the official document designating the BrolNnfield area. Is the project location in an Enterprise Zone? Yes 0 No [8J If yes, which zone? Is the project location in a designated Rural area? Yes 0 No [8J If yes, which Rural area? ___ Is the project location in an Urban area? Yes 0 No [8J If yes, describe? I. Which of the following describes the applicant's operations (select all that apply): o Multi-state business enterprise [8J Multinational business enterprise o Florida business enterprise (eligible for Brownfield Redevelopment Bonus Incentive only) J. Which of the following describes this business unit (select all that apply): o Regional headquarters office o National headquarters office [8J International headquarters office o This is not a dedicated headquarters office K. What is the estimated percentage of gross receipts or final sales resulting from this project that will be made outside of Florida (if sales is not a reasonable measure. use another basis for measure and provide explanation below): 96% Explain, if necessary: Sales are national and international , . A. How many Florida jobs are expected to be created as part of this project? 600 B. If an existing business unit, how many Florida jobs are expected to be retained as part of this project? Gobs in jeopardy of leaving Florida should only be included here; these jobs are not eligible for QTI) 1,029 C. What is the anticipated annualized average wage (excluding benefits) of the new to Florida jobs created as part of this project? (Cash payments to the employees such as performance bonuses and overtime should be included. The wage reported here is only an estimate of the average wage to be paid and will not be used in the certification, agreement. and claim evaluation process,) $59.580 D, What is the annualized average value of benefits associated with each new job created as part ofthis project? $14,066 E. What benefits are included in this value? (health insurance, 401(k) contributions, vacation and sick leave, etc.) Blue Cross/Blue Shield Heath Insurance, 401 (k) contributions. GyrnJWellness reimbursements, Short Term Disability, Long Term Disability, Vacation and Sick Time, Dental Insurance, Vision Benefits qSJL.- Packet Page -129- 6/28/2011 Item 10A GENERAL PROJECT OVERVIEW 4. CAPITAL INVESTMENT OVERVIEW A. Describe the capital investment in real and personal property (Examples: construction of new facility; remodeling of facility; upgrading, replacing. or buying new equipment.): Construction of a new 160,000 square foot facility in Ave Maria, installation of a second clean room in new facility, an addilional100,000 square feet of new/ remodeled facility in Creekside. Purchase of manufacturing equipment quantified in 4C below. B. Will this facility be: o Leased space with renovations or build out 181 Land purchase and construction of a new building o Purchase of existing building(s) with renovations 181 Addition to existing building(s) (already owned) 181 Other (please describe in 4A above) C. List the anticipated amount and type of major capital investment to be made by the applicant in connection with this project: (in Thousands) Calendar Yaar: 2012 2013 2014 2015 2016 Total Land or BuUding Purchase Construction I Renovations Manufacturing Equipment R&D Equipment Other Equipment (computer equipment, office furniture, etc.) Total Capital Investment D. What is the estimated cost of machinery and equipment or other resources for this project expected to be purchased outside of Florida? $20,000,000 E. Describe the type(s) of machinery and / or other resources to be purchased outside of Florida. CNC machines, Rollamatics, Clean Room, Quality Control equipment, injection molding, $17,000 $3.000 : $0 $00 $0 $20.000 $0 $0 $10.000 $0 $0 $10,000 $2 000 $6.000 $6.000 $3,000 $3,000 $20.000 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 - $0 $19000 $9 000 $16.000 $3 000 $3.000 $50.000 F. What is the estimated square footage of the new or expanded facility? G. When Is the tinallocation decision anticipated (date)? H. What is the anticipated date construction will begin? I. What is the anticipated date operations will commence? New 160,000 + New/renovated 100,000" 260,000 total ASAP ASAP ASAP 5. COMPETITIVE LANDSCAPE A. What role will the incentlve(s) play in the business unit's decision to locate, expand, or remain in Florida? With each expansion the decision of whether to stay in Collier county or seek a lower cost environment is in play. Each time such a decision is required, Arthrex looks to the support that the county has given historically. These incentives help Arthrex senior management to understand a tangible level of the county's commitment. The Packet Page -130- ,. '>0 if q; 6/28/2011 Item 10A GENERAL PROJECT OVERVIEW incentives, both current and future, will be weighed as part of our overall facilities decision making. Incentives help offset a modest portion of the additional costs of doing business in Collier County and encourage Arthrex to continually expand in Collier County. For example, expansion at Ave Maria in turn affords the company with the opportunity to allocate additional space for management and professional staff at the Creekside complex. These additional high paying professional and technical jobs are being situated in Collier County despite the real opportunity to centralize them in a lower cost area of the country. Again, the incentive program is one of the factors that is weighted in the ongoing decision making process. B. How will the incentive dollars be used by the business? Reinvestment in people, equipmertt, research and training. C. What other cities, states, or countries are being considered for this project? Carolinas, Texas and Tennessee D. What advantages or incentives offered by these locations do you consider important in your decision? Affordable housing to attract and retain employees combined with financial incentives to locate an operation in that area. E. What advantages or disadvantages offered by the proposed Florida location do you consider important in your decision? Proximity to established location, state and local incentive programs F. Indicate any additional internal or external competitive issues impacting this project's location decision? Affordable housing, training facilities in close proximity, overall cost of doing business, available work pool, shipping logistics 6 ECONOMIC IMPACT AND CORPORATE RESPONSIBILITY A. Provide a brief synopsis of the special impacts the project Is expected to stimulate in the community, the state, and the regional economy. include the impact on indicators such as unemployment rate, poverty rate. and per capita income. Arthrex will bring 600 new jobs to the area. Unlike other businesses in the county, employment at Arthrex is not on a seasonal basis, This provides much needed year- round stability to the county's economy.__,_,_ B. Provide a summary of past activities in Florida and in other states. For example, what kind of corporate citizen has the applicant been? Also list awards or commendations. Arthrex has been in Florida since 1991, In that time, the company has experienced phenomenal 9rowth and established Arthrex as one of the top arthroscopy companies in the industry. We continue to develop our technOlogy and increase market share in the orthopedic industry through our teamwork approach. Our ability to attract and hire qualified, conscientious employees has been a key ingredient to our success. Arthrex strives to maintain a safe and productive teamwork environment, which, in turn, promotes creativity and growth for our business as well as our individual employees, Our good community standing is evident in the local and national awards presented to Arthrex. Awards include Excellence in industry and Industries Park Beautificati()n Award from the EDC; Leadership and Support Packet Page -131- qt 6/28/2011 Item 10A GENERAL PROJECT OVERVIEW from the United Way; Award for Excellence in Arthroscopy and Soft Tissue Repair from Knowledge Enterprises; and Orthopedic Innovation Award for Handheld Instruments-Knowledge Enterprises Advertising Achievement Awards for the Joumal of Bone & Joint Surgery and the AORN Joumal. C. List and explain any criminal or civil fines or penalties, recent or ongoing investigations and lawsuits, federal, state andlor local tax liens, and environmental issues that have been imposed upon the company, Its executives, or its affiliates and any recent bankruptcy proceedings of the applicant or Its parent company. Failure to disclose relevant Information may mean automatic disqualification. If there are no issues to be identified, answer "None". Do not leave this question blank. None D. Provide any additional information you wish to be considered as part of this incentive application or items that may provide supplementary background information on your project or company. NAp 7. CONFIDENTIALITY A. You may request that your proJect mformatlon (mcluding information contained in this application) be confidential per F.S. 288.075, Confidentiality of Records for a 12 month period, with an additional 12 month extension available upon request for projects still under consideration. If you wish to request confidentiality for information contained within the General Project Overview to be held confidential pursuant to section 288.075, Florida Statutes, please submit to Enterprise Florida, Inc. a request on company letterhead and signed by an authorized company officer including the following statement: "On behalf of (Legal Name of Applicant), please accept this letter as a request for a/l documents, records, reports, correspondence, conversations, applications, data and other sources of information concerning our business plans, interests, or intention to evaluate or locate in Florida as we/l as other trade secrets, identification, account, and registration numbers, and proprietary confidential business information be held confidential pursuant to section 288.075, Florida Statues for a period of 12 months after the date of receipt of this request for confidentiality or until the information is otherwise disclosed, whichever occurs first." .... Be sure to attach the proper incentive attachment sheet(s) .... Packet Page -132- Jr./ ff 6/28/2011 Item 10A GENERAL PROJECT OVERVIEW JlW ' \. . '- ~ .." - S~natUte--"/ \ To the best of my knowledge, the information included in this application Is accurate. /~ ( / ,{)/ / vj _ (.c-,"<,z,_ ~ . I 6-, !JD I l Date ~." ~LIJ. C?A (Authorized Company Officer) ED flM /9; 2...1/ Date ~,J iU (,) REE.l( Name o L,,- (,\r < k "-- Name I,j,u= ) 1((','<;;'1 DE'~ r Tille HJL\i...Q~ +--\-L. Company Tille f\ R.. 'fT--<iu:. IC, ='L.N c Company Address, it different than mailing address Address, if different than mailing address () >~.- _' ~ c;. ,':":, \._ r/ _',; _-' j i, _<if I \1. ' . Phone Number Phone Number "', .. ~.!- i.' Fax Number Fax Number . " . ',P [mail Address Email Address Name of contact person, if different than above Phone Number Address Email Address Packet Page -133- ttU 6/28/2011 Item 10A Economic Stimulus Program Attachment to the General Project Overview Arthrex Inc. and Arthrex Manufacturing, Inc. Name of Business Must be a sepBrate business unIt or reporting unit of a business un" tha, ;s or will be registered with the State of Florida for unemployment compen..tion purposes. IMPORTANT NOTE: This application must be filed and the incentive approved prior to making the decision to expand an existing Collier County business unit or to locate a new business unit in Collier County, 1. PROJECT INFORMATION AND EMPLOYMENT AND WAGE COMMITMENTS Phase Number of net new full-time equivalent Collier Date by which jobs will County lobs created in the business unit be created I 400 6/30/2014 II 100 6/30/2015 III 100 6/30/2016 Total 600 A. For the purposes of certification, agreement, and claim review, Indicate the average wage and corresponding threshold (percentage) to which you commit for all new jobs created: Based on physical location of job for both companies. Arthrex, Inc, and Arlhrex Manufacturing, Inc will each have new employees in both Eastern and Coastal Collier County $46.000, which is at least 118% of the average wage in Eastern Collier County. $64,361, Which is at least 166% of the average wage in coastal Collier County, B. Collier County Business Tax Receipt Number: Arthrex. Inc. 962352, Arthrex Manufacturina. Inc. 903044 How many jobS are currently employed at all Collier County locations? Arthrex. Inc. 438, Arthrex Manufacturina. Inc. 591 - Total 1.029 What is the annualized average wage (excluding benefits) of the employees indicated in 1c.? Arthrex, Inc. $84.961 Arthrex ManufacturinQ, Inc. $46,725 C. D. 2, LOCAL FINANCIAL SUPPORT A. Identify the local government(s) anticipated to provide local financial support: Collier County B. Indicate the date(s) the approval is I are anticipated to be passed by the iocal government: ASAP C. Has the applicant ever participated in an EDC-assisted ProQram? l2J Yes 0 No If Yes, how many new and retained jobs were included in that project? 650 Revised 03/08 Page 1 of 7 Client Approved (J..~~' (initials) Packet Page -134- 6/28/2011 Item 10A . A. Type of Project (check all that apply): Rezone Permit [2;JTenant Improvement 0 Other _ B. Site Folio Number: 00226441809. 00168049000. 29334000029. 29331193104. 29331190741. 29331193120 Project Street Address& Suite Number: Legal, 17 48 29 THAT PORTION OF SECS 17 & 18 DESC AS FOLLOWS: COMM SE CNR OF SWl/4 OF SEC 17, N OlDEG W 150FT TO NORTH R/W Strap No, 482917 006.0003E17 27 48 25 COMM NW CNR SEC 27, S 125.02FT, N 44DEG E 34,99FT, S 89DEG E 573.45FT, S 89DEG E 500.61FT, S 89DEG E 768.26PT CREEKSIDE FLEX I A COMMERCIAL LAND CONDOMIKIUM UNIT 1 1250 Creekside Parkway, 1370 Creekside Blvd, 1360 Creekside Blvd D. Legal description: _ E. OwnertDeveloper Name: Arthrex, Inc, Phone: 239-643-5553 Email: KeYln.olieff@arthrex.com Fax: F. Architectural Firm: NAy Contact: Phone: Email: Fax: G. Engineering Firm: NAy Contact: Phone: Email: Fax: H. Contractor: NAy Contact: Phone: Email: Fax: I. Other: (i.e. Attorney, Land Planner) NAv Contact: Phone: Email: Fax: 4, BACKGROUND CHECK I agree to allow the Economic Development Council of Collier County perform a Company and/or Personal Background Check. [2;J Yes 0 No Revised 03/08 Page 2 of 7 Client Approved ~_(injliaIS) Packet Page -135- 6/28/2011 Item 10A (\ (\ -:"'-~I Signature of Individual Completing this Attachment \ r: I , \ 'I.;)"}t ('",I ~",r. ",,,,.(\ .,; .,.' '. ~ "',...' . . ' -I "' l.C' i IC") k: i 1_'5,'-)1" i Address "'j n ;,Jet! Date JTT" YC;" {/1'-i! Phone Number <_/ ~1 {c: // /<'- l Si ture (Authorized Company Officer) REQUIRED " ) ,,)~'., _! tl.. ()f<t,6i.. ,- t j(f, ('t'S (1)( -JI Name and Title of Authorized Officer ."> i 7 Date ."-/1 Revised 03/08 Page 3 of 7 Client Approved, f..tt (initials) " Packet Page -136- 6/28/2011 Item 10A Attachment A: Roles & Responsibilities --Meet all requirements of Fast Track I Regulatory Process Program I -SIte selection I --Hire contractors, consultants, engineers, i architects -Submit Development Order application within 60 business days of acceptance as a Fast Track project --Attend pre-application meeting, if possible --Attend scheduled meeting to discuss outstandin issues as needed. Economic Development Counct! of Colllel County --Attract and qualify businesses under the Fast Track program -Contact the Special Projects Manager as soon as a company is qualified. -Attend the pre-application meeting. -Maintain consistent contact with Special Projects Manager to ensure timeframes are being met. --Monthly review status of projects, particularly those with issues or potential issues --Attend scheduled meeting to discuss outstanding issues as needed. --Copy all vested parties with correspondence. Revised 03/08 -Attend pre-application meeting with sufficient plans for quality review --Submit complete application that meets current LOC and other code requirements --Submit updates after receiving rejection comments, within 20 business days -- Attend scheduled meeting to discuss outstanding issues as needed. Collier County Community Development and Environmental Services Division , --Assign Special Projects Manager o Provide guIdance on permitted use of site. o Organize pre-app meeting o Lead project Team . Handle dispute resolution by involving appropriate decision makers o Shepard projects through the process from start to finish/manage project plan o Main point of contact for EOC, applicant and owner o Prepare monthly status reportslemphasls on exception or "red fiag" Items o Schedule hearings and external meetings, as required . Provide value-added services such as occasional site visits when under construction Page4of7 Client Approved (initials) Packet Page -137- 6/28/2011 Item 10A -Develop project team ..l . Attend pre-application meeting . Review submissions within stated number of business days . Attend scheduled meeting to discussJ outstanding issues as needed. . Copy all vested parties with corresDondence. Attachment B: Potential Obstacles There are certain known issues that can lead to a less than smooth approval process. as listed below. At the pre-application meeting (or before then if applicable) the Special Projects Manager will complete this section relative to the facts as presented at that time. Items that may cause a delay Anticipated Delay and related information Requires re-zoning: Site in existing PUO: Site contains wetlands: Site requires an Environmental Impact Statement: LOC amendment required: Permits from outside agency: Utilities issues: Other: Note: this list is not intended to be exhaustive of all items that may cause conflicts or delays in the approval process, but is to identify those most common and those most likely to significantly hold up the swift approval of the project. Project Notes (Special Proiects Manaaer) Client Approved Page 5of7 (inItials) Rftvised 03108 Packet Page -138- .-._---~.._---_. 6/28/2011 Item 10A Items the Developer or ADDlicant wishes to disclose concemina unusual reauirements: Attachment C: Proposed Timeline (to be completed at pre-application meeting) Special Projects Mana er Applicant Day 30 Day 45 Submit complete SDP or PPL (within 60 days of FT acce lance First review - SDP (7 business days) First review - PUO (15 business da s~~ First re-submittal - SOP or PUO [must address all comments (20 business da s Second review - SOP or PUO (7 business days) Apply for building permits First review - building permits (25 business days) First re-submittal -- building permits (20 business da s , S,=d ""'~ - boJ";", ".~" (25 b",;"~, dO,,) lproj'ct T,~ Approval- SOP _ _____ Approval- Building permits __ Anticipated CO date _____ _ I Project team Applicant Oay 65 Project Team I Applicant Project Team Applicant __--.1 __ We, the undersigned, fully accept our roles and responsibilities in this project and have offered all information in good faith and in an attempt to be thorough. We recognize that new information may be presented as the project moves through the review phases. We also recognize that until the review process begins it is not reasonable to identify every possible issue with a project. As any new material information is identified that may cause a change to this plan in any way, the Special Projects Manager is to be contacted to coordinate as needed. Owner/Developer Name: Date: Applicant Name: Date: EDC Representative: Date: Revised 03/08 Page 6 of7 Client Approved (initials) Packet Page -139- 6/28/2011 Item 10.A. Collier County Special Projects Manager Name: Revised 03108 Date: Page 7 of 7 Client Approved (inItials) Packet Page -140- ~vl unicode D"...~ 1 HI' I Q ^. 6/28/2011 Item 10A t).. Chapter 49 - ECONOMIC DEVELOPMENT !!ill -, j ~ -.' - -'-, -'.. --------------,.-.-.. .. ",I", - p~ "': - c';;- ., " - '~~, ,:.;;-~:_!~~,-;::, , '-" '''. n_____________ "J FOOTNOTE:'S'): ARTICLE I. - IN GENERAL ARTICLE II. - FEE PAYMENT ASSISTANCE PROGRAM Thi:::- 3ni:::i~ 3.;Jpi<-::s ;.~.t It;-:,, l:nin:"':j';J,::.r2\:,eci a.r-::~ ui CJlile' C'::.;untv_ ':J~~ja, o'-::! [u at: wr:::orovrmed Jreas of C,)file~ C:>:)Llnt\ 10 'ti,E; greatest e~len1 <'\,:thC'rized bv Artde 'JilL SeC',;):1 1 ;'f. ot the Fiorida Cons~ltulion as may be Impiemented by ac: Inte~:;:rY.'errHn&n~al o~ mtelcv,ai agree_me-'ll hup:;/lit'rar~ _mUllii.'{Hle.com/pJlIlL!-;P\ :...'iiciltIl)= i 05;S&!-jT\1RC(!1I:::--;\=llltr(-~; Ja :( :.rr:;'2I1i... :\,'2{)/20 It Packet Page -141- Municode Pa2e 2 of 18 6/28/2011 Item 10.A. Sec. 49-21. . Purpose. The purposes of this article are to: (1) provide a performance-based program offering financial relief for eligible targeted industry development or expansion projects in Collier Counfy to mitigate the effects of rising impact fee rates: (2) provide for the economic well being of Collier County residents by providing high-wage employment opportunities in Collier County; (3) lessen the seasonal cycle of Collier County's economy; and (4) encourage investment opportunities for new or existing companies thus increasing and diversifying the county's tax base. fOrd. No. 03-61. S 1, 11.18~03) Sec. 49-22, - Speci1ic definitions. When used in this article, the following terms have the meaning stated. unless the context clearly indicates otherwise. (1) "Average wage" is the annual rate paid to private-sector employees within Collier County, from highest to lowest divided by number of persons employed full,time. as reported by private-sector employers in the State of Florida who are covered by federal and state unemployment compensation laws (UC). and reported annually based on figures released by the Florida Agency for Workforce Innovation. (2) "Eastern Collier County" is that area of unincorporated Collier County that includes those parcels of land immediately adjacent to, and east of, Collier Boulevard, except for those parcels designated as part of the Immokalee Rural Federal Enterprise Community. (3) "High impact"is that designation given to qualifying economic development projects located outside of Eastern Collier County and the Immokalee Rural Federal Enterprise Community. (4) "Impact fee" means the fee imposed by the county pursuant to seelian 74-201 or. if applicable, the alternative impact fee. (4.1) "Jobs" are limited to individual permanent legal residents of the United States who are employed in each new created position of employment at a primary location in Collier County, and as applicable maintained, as a result of the program. (5) "Rural Federal Enterprise Community" is that jurisdiction so designated by the U.S. Department of Agriculture as a multi'jurisdictional entity including Immokalee (census tracts 112,04, 112.05. 113.114). parts of Hendry County and the Seminole Indian Reservation: the Enterprise Community boundaries in Collier County follow the lmmokalee Enterprise Zone boundaries, a designation by the State of Florida, pursuant to F,S. SS 290,001-290.016, (6) "Targeted industry" is one that is aggressively pursued for relocation to, or expansion within, the local jurisdiction by the Economic Development Council of Collier County, \t may include, but is not limited to, the following industries: Aviation, information technology, biomedical, manufacturing, corporate headquarters, research and development, wholesale trade and distribution, and businesses locating or expanding within the Immokalee Rural Federal Enterprise Community. rOrd. No. 036j S 1. : 1 /80:1, Oid. ('vo_ 200636. 5 II Sec, 49-23, . Fee payment assistance program, (a) General requirements. Pursuant to the provisions set forth in this section, the county establishes a fee payment assistance program for the payment of impact fees for eligible development projects. The fee payment assistance program will be eligible to projects located within commercial. industrial, business park, and technology park land uses, (1) Application process. Any business seeking eligibility for payment through the fee payment assistance program must file with the county manager an application for payment prior to making the decision to locate or expand within Collier County. The application must contain the following: a. The name and address of the business owner: and b. A current and complete legal description of the site upon which the project is proposed to be located: and c. The type of business proposed. using Standard Industrial Classification (SIC) or North American Industrial Classification System (NAICS): and d, The number of jobs to be created and retained as a resuit of the project: and e. The average wage of those jobs created and retained: and f. The total capital investment of the expansion or relocation project including land, building, and equipment costs: and g. The date (month and year) when the project will be substantially complete, (2) Packet Page -142- httn://l ihrarv .municodc.com/orint,asox "clicntID= I 057~&HTMRc(lucst=htto'X,3aclr2f%2fli... 5120/2011 Municodc PU!!C 3 of 18 6/28/2011 Item 10.A. Agreement. If the proposed project meets the requirements for payment under the fee payment assistance program as set forth in this article, the county manager is authorized to enter into an agreement with the business owner as set forth below. The fee payment assistance program will pay no more than the amount of impact fees due pursuant to section 74-202 of the Collier County Laws and Ordinances. ,'Ora'. t\/o. 03.(jl, s I. i 1-18-03: Ord. No. 04--i5 r"1 ()re. ,."Jc :"'OD5-30 9 1) Sec. 49-24. - Implementation. (a) Under this fee payment assistance program the eligible bUSiness will pay its tax bill in full to the tax collector's office annually, on or before the date it is due. The program obligation period will be no longer than ten years jf the project is located outside the rural federal enterprise community (hereinafter "enterprise community"), or no longer than 15 years if the project is located within the enterprise community. Companies located in a high impact area, that is an area outside the enterprise community and eastern Collier County, must be pre-approved for program participation by the board of county commissioners and, if so approved, are obligated to this program for a maximum of ten years. Companies will be eligible for an incentive award which will be calculated by multiplying the above- described total capital investment by the current millage rate then multiplied by either ten (projects located in areas outside the enterprise community) or 15 (projects located within the enterprise community). The incentive award may not exceed the dollar amount of the impact fees due for the project. Any payment made under this program is subject to funding availability. A development project participating in the fee payment assistance program is not eligible to also participate in the property tax stimulus program or the charitable organization waiver program that may be offered by the county. Companies will be eligible for an incentive award which will be calculated by multiplying the above- described total capital investment by the current millage rate then multiplied by either ten (projects located in areas outside the enterprise community) or 15 (projects located within the enterprise community). The incentive award may not exceed the dollar amount of the impact fees due for the project. Any payment made under this program IS subject to funding availability. A development project participating in the fee payment assistance program is not eligible to also participate in the property tax stimulus program that may be offered by the county. (b) The eligible business under the fee payment assistance program will enter into a fee payment assistance program agreement (the agreement) with the county, and the agreement must provide for, as a minimum, the following and will include such provisions as may be deemed necessary by the Board to effectuate the provisions of this article: (1) The legal description of the development. (2) That the amount of the impact fees paid by the program will in all events become due and payable and shall be immediateiy re-pald to the county by the property owner if the property is sold or transferred without prior written approval from the county at any time affer the first certificate of occupancy has been issued for the development and prior to the ten-year obligation period, or prior to the 15-year obligatior. period for a project within an enterprise community, and the impact fees must be paid in full to the county. Any outstanding (i.e., as yet not repaid) impact fee amounts previously paid under this program will become due and payable and must then be immediately repaid to the county in the event of sale or transfer prior to expiration of the program obligation period. If not so repaid. the obligation will be a lien on the property under the following subsection. (3) The payment of impact fees via the fee payment assistance program will constitute a lien on the eligible business's property which lien may be foreclosed upon in the event of non-compliance with the requirements of the agreement. The amount specified in an approved agreement will serve as the amount of a lien against the development and the real property upon which the development is located. Neither the payment of impact fees, nor the agreement providing for the payment of impact fees, may be transferred. assigned, credited or othervvise conveyed from the property without prior written approval hom the county. (4) The county's interest may be subordinated 10 all first mortgages or other co-equal security interests, and will automatically be subordinate to the owner's previously recorded first mortgage and/or any government funded affordable business loan such as the U.S. Small Business Administration (SBA) or the U.s. Department of Agriculture (USDA) loan (5) Upon satisfactory completion of all requirements of the agreement. the county may record any necessary documentation evidencing same, including, but not limited to, a I'elease of lien. The lien will not terminate except upon the recording of a release or satisfaction of lien in the public records of Collier County. Such release will be recorded upon payment in full or satisfaction. (6) In the event the non-county party is in default under the agreement, and the default is not cured within 30 days after written notice is provided to the owner, the Board may bring a civil action to enforce fhe agreement m declare that program's payment of the impact fees not yet recouped and previously paid under this program are thence immediately due and payable. The Board is entitled to recover all fees and costs, including attorney's fees and costs, incurred by the county Packet Page -143- httn://lihrarv.lllunicodc.colll/orinl.asDx'!clicntID= I 057S&IITMRcllllcst=htto%3a';,,21";';'2fli... 5/20/20 II Municode Pa2e 4 of 18 6/28/2011 Item 10.A. in enforcing the agreement. plus interest at the then maximum statutory rate for final judgments, calculated on a calendar day basis until paid. (7) Approved agreements will be recorded in the offiCial records of Collier County at no cost to the county, (c) Termination. The provisions of this article will expire and be void on October 1, 2013, unless continued by a resolution of the Board of County Commission prior to this date. (Ord. No. 03-61, S 1, 11-15-03: Ord. No. 04"45. ~"2, Ord. No. 2005-30. ~ 2. Ord. No. 2008.46. g 1. 9-9-081 Sec. 49-25. - Program eligibility criteria. To be considered eligible for approval under this program, a business or project must meet the criteria of one of the following categories: (1) Be located within Eastern Collier County and meet the following criteria: a. Type of business conducted is within the targeted industry list of the Economic Development Council of Collier County: and b. Creates a minimum of ten new full-time jobs; and c. The newly created jobs pay an average wage of at least 115 percent of the County's current private-sector average wage. (2) Be located within the boundary of the Immokalee Rural Federal Enterprise Community and meet the following criteria: 3. Create a minimum of five new jobs: and b. The newly created jobs pay an average wage equal to or greater than 50 percent of the county's current private-sector average wage. (3) Be located within the boundary of the Immokalee Community Redevelopment Area and meet the following criteria: a. Create a minimum of five new job; and b. The newly created jobs pay an average wage equal to or greater than 50 percent 01 the county's current private-sector average wage. (4) Be a high impact project and be located outside the enterprise community and Eastern Collier County and meet the following criteria: a. Type of business conducted is within the targeted industry list of the Economic Development Council of Collier County: and b. Creates a minimum of 20 new full.time jobs: and c. The newly created jobs pay an average wage equal to or greater than 150 percent of the county's current private-sector average wage. d. Each application for program participation musl have approval by the Board of County Commissioners. (5) An existing targeted industry company expanding within Collier County may include Ihe wages of the existing jobs and the newly created jobs to calculate the average wage for the purpose of qualifying for the Fee Payment Assistance Program. lOrd No. 03.61 S 1. ! )-18.03- Ord. 1''';0.04-24 :? 2. Ord. No. 2008-25. ,9 l' Sees, 49-26-49-29. - Reserved. Coliier County, Florida, Code of Ordinances>> PART 1- CODE>> Chaoter 49 - ECONOMIC DEVELOPMENT>> ARTICLE III. - JOB CREATION INVESTMENT PROGRAM>> _.___.....____'"_.._____"_._._.,__..._._..______-._"_..~___N__.~,._.__.___________.__.__..____..____._._._..__.~__,.__ I ARTICLE III.. JOB CREATION INVESTMENT PROGRAM Sec:. 4930. ApDiicabilitv. See.49-31 . Puroose See 49-32 .. Soecific definiliol~s S8:: 49-33. . Job creation investment oroaram. SO" 49-34. - ImDlelllentation See 49-35 . Prooram elioibilitv cri;eri2 Se::::s. ~9-36-49-39 - Reserved Packet Page -144- htto:/Ilibrarv ,municodc,col11/orint,asox'!clicntlD=! 0578&HTMRcQucst=http%3a%2f%2IJi... 5/20/20 11 Municodc Pauc 5 of ] 8 6/28/2011 Item 10.A. See, 49-30, - Applicability. This article applies to the unincorporated area of Collier County. Florida, and to all incorporated areas of Collier County to the greatest extent authorized by Article VIII, Section 1 (f) of the Florida Constitution as may be implemented by an inlergov8mmental or interlocal agreement. lOrd. No 03-60_ s) .: 7 r 8 03! Sec. 49-31. - Purpose. The purposes of this article are to: (1) provide a performance-based program offering financial relief for eligible targeted industry development or expansion proj8cts in Collier County to mitigate the effects of rising fees, along with escalating relocation and expansion costs, associated with these projects: (2) provide for the economic well being of Collier County residents by providing high-wage employment opportunities in Collier County; (3) lessen the seasonal cycle of Collier County's economy: and (4) encourage investment opportunities for new or existing businesses thus increasing and diversifying the county's tax base. ,Ore;' rv:; D3 (;:), :~' 1 liS 03 Sec. 49-32. - Specific definitions. When used in this article, the following terms have the meaning stated, unless the context clearly indicates otherwise: iCf'j t,);", (.\', (1) "Average wage" is the annual rate paid to private. sector employees within Collier County, from highest pay rate to lowest pay rate divided by number of persons employed full-time, as reported by private-sector employers in the State of Florida who are covered by federal and state unemployment compensation laws (UC), and reported annually based on figures released by the Florida Agency for Workforce Innovation. "Eastern Collier County" is thai area of unincorporated Collier County that includes those parcels of land immediately adjacent to, and east of, Collier Boulevard. except for those parcels designated as part of the Immokalee Rural Federal Enterprise Community. "High impact" is that designation given to Qualifying economic development projects located outside of Eastem Colliel" County and the Immokalee Rural Federal Enterprise Community. "Jobs" are limited to individual permanent legal residents of the United States who are employed in each new created posilion of employment at a pnmary location in Collier County, and as applicable maintained, as a result of the program. "Rural Federal Enterprise Cornmunity" is that jurisdiction so designated by the U.S, Department of Agriculture as a multi. jurisdictional entity including Immokalee (census tracts 112.04, 112.05, 113. 114), parts of Hendry County and the Seminole Indian Reservation: the Enterprise Community bounaaries In Collier County follow the Immokalee Enterprise Zone boundaries, a deSignation by the State 01 Florida, pursuant to F.S. 99290.001-290.016, pursuant to F.S. 99 290.001-290.016. "Targeted industry" is one that is aggressively pursued for relocation to, or expansion within, the local Jurisdiction by the Economic Deveiopment Council of Collier County. It may include, but is not limited to the following industries: Aviation. information technology, biomedical, manufacturing, corporate headauarters. research and development, wholesale trade and distribution, and businesses locating or expanding within the Rural Federal Enterprise Community. (2) (3) (3.1) (4) (5) ',~- .:. (a) See, 49-33. - Job creation investment program. (b) General requirements. Pursuant to the provisions set forth in this section, the county establishes a job creation investment program for the payment of costs associated with the relocation and/or expansion of tal'geted projects, including but nollimited to relocation costs, company sponsored day care facilities, land improvement costs, and/or existing facility improvements. These projects may include commercial, industrial, and technology park land uses Application process. Any pe!'son seeklllg eligibility and payment through the job creation investment program will file with the county manager an application for payment prior to making the decision to locate or expand within Collier County. The application must contain the following: (1) The name and address of the business owner: and (2) Packet Page -145- httn:lll ihrarv ,lllunicodc,L'Olll/orint,asDx '!clicntID= 1 057S& HTMRcltucsl=hltDCh"a'ii,2Cck2Jli... 5/20/20 I I Municoue Pat!e 6 of ] 8 6/28/2011 Item 10.A. A current and complete legal description of the site upon which the project is proposed to be located; and (3) The type of business proposed, using Standard Industrial Classification (SIC) or North American Industrial Classification System (NAICS); and (4) The number of full-time jobs to be created and. if applicable, retained as a result of the prolect; and (5) The average wage of those jobs created and retained; and (6) The total capital investment of the expansion or relocation project, including land, building. and equipment costs: and (7) The date (month and year) when the new jobs will be In place. If the proposed project meets the requirements for payment under the job creation investment program as set forth in this article, the county manager is authorized to enter into an agreement with the business owner. After the specified new jobs are in place within the predetermined time frame, the company will complete and submit to the county manager a request for funds, along with documentation that the stated lobs are in place. At the beginning of each county fiscal year. following the date the newly created jobs are in place and verified by the county manager. general revenue funds will be set aside under the job creation investment program. fOrd. No. O~;.BO, S 1. i 1.18031 Sec. 49-34. - Implementation. (a) Under this job creation investment program, the eligible company located within Eastern Collier County may be awarded $2.000.00 per new full,time job created, with a minimum of ten new full,time jobs to be created: or the eligible company may be awarded $3,000,00 per full,time job created If the project is located within the enterprise communlty, with a minimum of five new jobs created: or, as approved by the sole discretion of the board. a company may be awarded $2.000.00 per job created within a high impact area, with a minimum of 20 new jobs created. Any award under this program is subject to funding availability. If a company also participates in the State of Florida Qualified Targeted Industry (OTI) tax incentive program, and is approved to participate in this job creation investment program, the company will be eiigible for only $1.000.00 per new job created regardless of its location within Collier County. The funds will be paid, based on the number of new full-time jobs created, in equal amounts over a three-year time period. (b) The eligible business under the job creation investment program will enter into a job creation investment program agreement (the agreement) with the counfy, and the agreement must provide for, as a minimum, the following and will include any provisions deemed necessary by the board to effectuate the provisions of this article: (1) The legal description of the development. (2) Neither the payment of funds, nor the agreement providing tor the payment of funds. may be transferred, assigned, credited or otherwise conveyed from the property without prior written approval from the county. (3) In the event the non,county party is in detault under the Agreement. and the default is not cured within 30 days after written notice is provided to the owner, the board may bring a civil action to enforce the agreement or declare that the grant funds are thence Immediately due and payable. The board is entitled to recover all fees and costs, including attorney's fees and costs, incurred by the county in enforcing the agreement, plus interest at the then maximum statutory rate for final judgments, calculated on a calendar day basis until paid. (4) The agreement must be recorded in the official records of Collier County at no cost to the county. (d) Termination. The provisions of this article will expire and be void on October 1, 2013. unless continued by a resolution of the board of county commission prior to this date. lOrd. No. 0::.60. S: ), 7 -18-('3: ()-r!, ,\10_ 200(';'46, !? 2 9-0 :}S Sec. 49-35. - Program eligibility criteria. To be considered eligible for approval under this program, a business or project must meet the criteria of one of the following categories: (1) Be located wilhin Eastern Coliier County and meet the following criteria; a. Type of business conducted is within the targeted industry list of the Economic Development Council of Collier County; and b. Creates a minimum of ten new full-time jobs: and c. The newly created jobs pay an average wage of at least 115 percent of the county's current private-sector average wage. (2) Be located within the boundary of the lmmokalee Rural Federal Enterprise Community and meet the following criteria: Packet Page -146- htlo://] ihrtll'v ,lllunicodc.colll/Drint.asDx "clicntID= I 0578&HTMRequcst=bttp%3a%2f%2t1i... 5/20/20 I] Municodc Pa~e 7 of 18 6/28/2011 Item 10.A. (3) a. Creates a minimum of five new full-time jobs: and b. The newly created jobs pay an average wage equai to or greater than 50 percent of the county's current private-sector average wage. Be a high impact project and be located outside the enterprise community and Eastern Collier County and meet the following criteria: a. Type of business conducted is within the targeted industry list of the Economic Development Council of Collier County: and b. Creates a minimum of 20 new full-time jobs: and c. The newly created jobs pay an average wage equal to or greater than 150 percent of the county's current private-sector average wage. d. Each application for program participation must have approval by the board of county commissioners. (Om' t,ju (:::60 (: f ,: I 3L!:]' Sees. 49-36-49-39. - Reserved. Collier County, Florida, Code of Ordinances >> PART I - CODE >> Chapter 49 - ECONOMIC DEVELOPMENT>> ARTICLE IV. . PROPERTY TAX STIMULUS PROGRAM >> ARTICLE IV. . PROPERTY TAX STIMULUS PROGRAM See 49-40 - Aonllcabilitv. See 49-41 - PUrDose. See: 49-42 . Specific definitions. See 49..:13. - Pl"Ooertv tax stimulus proor8m. See: 49-44 .11"lDlemelltatioll. See 49-45 . Proaram elicibilitv cnteria. Sees. ~9-4G-L9.49 - Reserved Sec. 49-40, - Applicability, This article applies to the unincorporated area of Collier County, Florida, and to all incorporated areas of Collier County to the greatest extent authorized by Article VIII. Section 1 (I) at the Florida Constitution as may be implemented by an intergovernmental or interlocal agreement. ;Oru.I\I:) C:;-C2. :;.(' : :3('," See, 49.41. - Purpose. The purpose of this article is to: (1) provide a performance-based program offering financial assistance for eligible targeted industry development or ey.pansion projects in Collier County to mitigate the effects of rising costs associated with these projects: (2) provide for the economic well being of Collier County residents by providing high-wage employment opportunities in Collier County: (3) lessen the seasonal cycle of Collier County's economy: and (4) encourage investment opportunities for new or existing companies thus increasing and diversifying the County's tax base. ,()oJ :\:' '-.:~~c:.:: See, 49-42. - Specific definitions, When used in this article, the foliowing terms have the meanings below, unless the context clearly indicates otherwise: (1) "Average wage" is the annual rate paid to priva:e-sector employees within Collier County, from highest to lowest divided by number of persons employed fu!Hime, as reported by private-sector employers in the State of Florida who are covered by federal and state unemployment compensation laws (UC), and reported annually based on figures released by the Florida Agency for Workforce Innovation. Packet Page -147- hi In'!!l ihr:Jrv ,lllLlllicodc ,colll/nrillt.asnx "el iCIlII[)= I O:i7K&HTMRellucst=bttp%3a9t 2r9f.211 i." :i/20/20 I I Municodc Pa!!c 8 of 18 6/28/2011 Item 10.A. (2) "Eastern Collier County" is that area of unincorporated Collier County that includes those parcels of land immediately adjacent to. and east of, Collier Boulevard, except for those parcels designated as part of the Immokalee Rural Federal Enterprise Community. (3) "High impact" is that designation given to qualifying economic development projects located outside of Eastern Collier County and the Immokalee Rural Federal Enterprise Community. (3.1) "Jobs" are limited to individual permanent legal residents of the United States who are employed in each new created position of employment at a primary location in Collier County, and as applicable maintained. as a result of the program, (4) "Rural Federal Enterprise Community" is that jurisdiction so designated by the U.S, Department of Agriculture as a multi-jurisdictional entity including Immokalee (census tracts 112,04. 112.05, 113,114), parts of Hendry County and the Seminole Indian Reservation; the Enterprise Community boundaries in Collier County follow the Immokalee Enterprise Zone boundaries, a designation by the State of Florida, pursuant to F.S, !j!j290.001-290.016. (5) "Targeted industry" is one that is aggressively pursued for relocation to. or expansion within, the local jurisdiction by the Economic Development Council of Collier County, It may include, but is not limited to the following industries: Aviation, information, technology, biomedical, manufacturing, corporate headquarters, research and development, wholesale trade and distribution, and companies locating or expanding within the Immokalee Rural Federal Enterprise Community. fOrd. No 0362. S ;,,1} 1803. Ord. No. 2006 36. S 3) Sec. 49-43. " Property tax stimulus program. Genera! requirements. Pursuant to the provisions set forth in this section, the county establishes a property tax stimulus program providing payments (hereinafter the "payment") to offset the costs associated with the relocation and/or expansion of targeted industries. The payment is a local option economic incentive for new or expanding businesses that may be approved at the sole discretion of the board subject to the criteria for such projects set forth below. The payments shall not accrue to improvements to real property made by or for the use of new or expanding businesses when such improvements have been assessed and included on the tax rolls of the calendar year preceding the effective date of the agreement specifically approving the business as eligible, as provided in section 49 ..:14 herein. (1) Application process. Any business owner seeking eligibility through the property tax stimulus program (program) will file an application with the county manager requesting participation in the program. The application will be filed prior to the business owner making the decision to locate or expand within Collier County. The application must contain the following: a. The name and address of the business owner: and b. A current and compiete legal description of the site upon which the project is proposed to be located: and c. The type of business proposed, using Standard Industrial Classification (SIC) or North American Industriai Classification System (NAICS): and d. The number of jobs to be created and retained as a result of the project: and e. The average wage of those jobs created and retained: and f. The total capital investment of the expansion or relocation project, including land, building, and equipment costs: and g. The date (month and year) when the project will be substantially complete. (2) Agreement. If the proposed project meets the requirements under the program as set forth in this articie, the board may choose to approve participation by. and make payments to. a new or expanding business. No precedent shall be implied or inferred by such payments when made to a new or expanding business. Applications for participation will be considered by the board on a case-by-case basis for each application, lOrd. ,\'0, 0';:'-62 S 1. 1 L~r:.(':~,1 (a) Sec. 49-44. - Implementation, (a) The eligible business will notify the county manager, in writing, when all at their employment obligations are met in year one and, in subsequent years, that their employment base is still viable, which is then verified by the county manager. The company will pay its tax bill in fuilto the tax collector's office annually on or before the date it is due. Under this program, applicants are not eligible to pay their taxes on an installment basis. The applicant will then submit a copy of their ad valorem property tax payment receipt to the county manager verifying all taxes have been paid in full and on time. Upon receipt, and verification of compliance with the terms of this article and corresponding approved agreement, payment to the applicant will be authorized within 60 days. (b) Packet Page -148- httn://librarv ,municodc,com/orint.asox'\:licntlD= I 0578&HTMRcuucst=htto%3a%2fck2f1i... 5/20/2011 Municodc Pa!!c \) of 18 6/28/2011 Item 10A No payment will be authorized tor improvements to real property made or tangible personal property added before the board approves an initial agreement granting such payment, Additionally, payment will only be made based upon the amount of ad valorem taxes levied by the county, and then paid by the eligible business. The payment amount will not include the amount of any taxes or special assessments levied by a municipality, school district, or water management district, or to such taxes or special assessments levied tor the payment of bonds or taxes authorized by a vote of the electors pursuant to Section 9 and Section 12. Article Vii of the State Constitution. A project participating in the property tax stimulus program is not eligible to also participate in the fee payment assistance program that may be offered by the county. (c) Under this program. any payment approved may apply to 100 percent at the assessed value of all improvements to reai property made by, or for the use of, a new business and of all tangible personal property of such new business, or up to 100 percent of the assessed value of all added improvements to real property made to facilitate the expansion of an existing business, and of the net increase in all tangible personal property acquired to facilitate such expansion of an existing business. The payment period may be up to ten years from the date of issuance of the first certificate of occupancy for a Duilding occupied by an eligible business. (d) All approved businesses under the property tax stimulus program will enter into a property tax stimulus program agreement (the agreement) with the county, and the agreement must provide for, at a minimum, the following and will include such provisions deemed necessary by the board to effectuate the provisions of this article: (1) The legal description of the project. (2) Neither the requirement for payment of ad valorem property taxes, nor the agreement providing for the payment of such taxes, may be transferred, assigned, credited, or otherwise conveyed separate from the property without prior written approval from the county. (3) Approved agreements will run with the land, and will be recorded in the official records of Collier County at no cost to the county. (e) If the property which is subject to an approved agreement is delinquent in the payment of its annual taxes or special assessments at any time within the payment period, then any outstanding balance otherwise eligible to be paid under this program will not be made unless and until all outstanding ad valorem property taxes and special assessments are paid in full. (f) Termination. The provisions of this article will expire and be void on October 1, 2013. unless continued by a resolution of the board of county commission prior to this date criteria. ;CJ((7 ,''J(l [\3(2. (' i: 1 7S U3.' ()rJ ':':") :0'[:(; 7--i(; ,'; ~::, 9-,9 (\,:'i Sec, 49-45. - Program eligibility criteria, To be considered eligible for approval under this program, a business or project must meet the criteria of one of the following categories: (1) Be located within Eastern Collier County and meet the following criteria: a. Type of business conducted is within the targeted industry list of the Economic Development Council of Collier County: and b. Creates a minimum of ten new full-time jODS: and c. The newly created jobs pay an average wage of at least 115 percent of the county's current private-sector average wage. (2) Be located within the boundary of the Immokalee Rural Federal Enterprise Community and meet the following criteria: a. Create a minimum of five new jobs: and b. The newly created jobs pay an average wage equal to or greater than 50 percent of the county's current private-sector average wage. (3) Be located within the boundary of the Immokalee Community Redevelopment Area and meet the following criteria: a. Create a minimum of five new job: and b. The newly created jobs pay an average wage equal to or greater than 50 percent of the county's current private-sector average wage. (4) 8e a high impact project and be located outside the enterprise community and Eastern Collier County and meet the following criteria: a. Type of business conducted IS within the targeted industry list of the Economic Development Council of Collier County: and b. Creates a minimum of 20 new full-time jobs: and c. The newly created jobs pay an average wage equal to or greater than 150 percent of the county's current private-sector average wage. iO'U' '\':J. ~\;;- <, Packet Page -149- httn://librarv .mull icodc,com/Dri nLaSDX '!c1 icntID= I 057S&HTMRcltUcst=httP'!f'3a'!f2fc;" 2fli,,, 5/20/20 II Municode Pa~e J 0 of 18 6/28/2011 Item 10.A. Sees. 49-46-49-49. . Reserved. Collier County, Florida, Code of Ordinances >> PART 1- CODE >> Chapter 49 - ECONOMIC DEVELOPMENT>> ARTICLE V. - ADVANCED BROADBAND INFRASTRUCTURE INVESTMENT PROGRAM >> 'ARTICLE V. _ ADVANCED BROADBAND INFRASTRUCTURE INVESTMENT PROGRAM lli;ll See 49.50 - Aoolicabilitv. Sec. 49.51 ,Pumose. Sec. 49-52 - Soecific definitions. Sec. 49-53. - Advanced broadband infrastructure investment oroaram Sec. 49.1:',4 - Imolementation. See 49-55. - Proaram eliaibilitv criteria. Sees 49.56~49.59. ' Reserved, Sec. 49-50. . Applicability. This article applies to the unincorporated area of ColHer County, Florida, and to all incorporated areas of Collier County to the greatest extent authorized by Article VIII. Section 1 (f) of the Florida Constitution as may be implemented by an intergovernmental or interlacal agreement. (Ord. No. 2005-56. f) 1,1 Sec. 49-51, . Purpose. The purpose of this article is to: (1) (2) (3) (4) Establish an advanced broadband infrastructure investment program for the purpose of enhancing Collier County's economic diversification efforts; Provide for the economic well being of Collier County residents by providing better opportunities for high'wage employment in Collier County; Lessen the seasonal cycle of Collier County's economy: and Encourage investment opportunities for new or existing companies thus increasing and diversifying the county's tax base. (CJrd, !Vo. 20[)556 S ! Sec. 49-52. - Speci1ie definitions. When used in this article, the following terms have the meaning stated, unless the context clearly indicates otherwise: "Advanced broadband infrastructure" means the components of network architecture consisting of physical cable piant andior a wireless technology platform and associated customer premise end equipment (CPE) and structured wiring required to support broadband data transfer, which can provide mechanisms for providing specified quality of service (OoS) levels specified by fhe end user. "Average wage" is the annual rate paid to private~sector employees within Collier County, from highest to lowest divided by number of persons employed full--time, as reported by private~sector employers in the State of Florida who are covered by federal and state unemployment compensation laws (UC), and reported annually based on figures released by the Florida Agency for Workforce Innovation. "Broadband" means high speed digitai data rate transfer typically associated with digital data rates of ten megabits per second and higher: broadband is capable of accommodating all media, including voice, data, and video transfer. Packet Page -150- htto://1 ibrarv ,l11lmicodc,com/orint.asox'!clicntJD= I 0571\&HTMRcquCSI=http%3a%2f<;;,20i,.. 5/20/201 J Municode Pa L!e I ] of ] 8 6/28/2011 Item 10.A. "Customer premise equipment (CPE)" means the electronic equipment located on the premises of the end user required to support advanced broadband services. "Eastern Collier County" is that area of unincorporated Collier County that includes those parcels of land immediately adjacent to. and east of. Collier Boulevard, except for those parcels designated as part of the Immokalee Rural Federal Enterprise Community. "High impact" is that designation given 10 qualifying economic development projects located outside of Eastern Collier County and the Immokalee Rural Federal Enterprise Community. "Jobs" are limited to individual permanent legal residents of the United States who are employed in each new created position of employment at a primary location in Collier County, and as applicable maintained, as a result of the program. "Ouality of service (ODS)" means those requirements which are determined by applications employed by the end user. "Rural Federal Enterprise Community" is that jurisdiction so designated by the U,S. Department of Agriculture as a multi-jurisdictional entity Including immokaiee (census tracts 112.04. 112,05. 113. 114). parts of Hendry County and the Seminole Indian Reservation; the Enterprise Community boundaries in Collier County follow the immokalee Enterprise Zone boundaries, a designation by the State of Florida. pursuant to FS. ss 290001-290,016. "Structured wiring" means the cable network located within a customer's premises that is required to deliver advanced broadband services. "Targeted industry"is one that is aggressively pursued for relocation to, or expansion within, the local jurisdiction by the Economic Development Council of Collier County. It may include, but is not limited to the following industries: aviation, information, technology, biomedical, manufacturing, corporate headquarters, research and development, wholesale trade and distribution, and companies locating or expanding within the Immokalee Rural Federal Enterprise Community. iOr:1. lV:..' :''00:, 56_ :~- 1 OrJ. '\In '::''(1 "',)~) y ," Sec. 49-53. . Advanced broadband infrastructure investment program. (al Genera! requirements. Pursuant to the provisions set forth in this section, the county establishes an advanced broadband infrastructure investment program providing payments (hereinafter the "payment") to offsef the costs associated with the installation or upgrade of advanced broadband infrastructure in commercial and industrial buildings to encourage the relocation and/or expansion of high-wage targeted industries. The payment is a local option economic incentive for new or upgraded advanced broadband infrastructure projects that may be approved al the sole discretion of the board. (1) Application process, Any bUSiness owner seeking eligibility through the advanced broadband infrastructure investment program will file an application with the county manager I'equesting participation in the program. The application will be filed prior to the business owner making the decision to invest in the advanced bmadband infrastructure. The application must contain the following: a. The name and address of the business owner: and b. A current and complete legal description of the site upon which the project is proposed to be located: and c. The type of business proposed, using Standard Industrial Classification (SIC) or North American Industrial Classification System (NAICS): and d. The total cost incurred by the business to enable broadband services, including but not limited to: 1) charges assessed by the service pl"Ovider for establishing and/or extending the service pl"Ovider's broadband infrastructure, and 2) customer premise equipment and structured wiring required to support broadband services: and e. Tile date (month and year) when the project will be substantially complete: and f. The number of full.time employee positions 10 be created and retained as a result of the project: and g. The average wage of those positions created and retained: and h. The total capital investment of the expansion or relocation project, including land, building and equipment costs (2) Agreement. If the proposed project meets the requirements under the advanced broadband infrastructure investment program as set forth in this article, the board may approve an agreement granting participation by, and payments to. a business owner, No precedent is to be Packet Page -151- nttn://l ihr:rrv,ll1l1llicodc ,coll1/nrint.asnx .'eI iCllll [)= I OS 7S&HTMRc(luesl=httoC,+3aclr-2I'q.2Ili." S120120 I] Municodc Pa ~c 12 of ] 8 6/28/2011 Item 10.A. implied or inferred by such payments to a new or expanding business. Applications for participation will be considered by the board on a case-by'case basis for each application. fOrd. No. 2005.56. g 1) Sec. 49-54. - Implementation. (a) The total value of payments to be approved under this advanced broadband infrastructure investment program will be the cost of the eligible business project's system installation or upgrade. up to a maximum of $25.000.00, The business is eligible to be paid an amount not to exceed $8.400.00 per year, beginning in the fiscal year after the infrastructure improvements have been verified as complete by the county manager. (b) The eligible business will notify the county manager, in writing, once the broadband infrastructure installation is complete. The county manager will verify project completeness and obtain a copy of all invoices detailing costs related to such project. The business will pay, or have already paid, its tax bill in full to the tax collector's office annually on or before the date it is finally due. Under this program, applicants are not eligible to pay their taxes on an installment basis. The applicant will then submit a copy of their ad valorem tax payment receipt to the county manager verifying all taxes have been paid in tull and on time for each year the company is eligible for payment under this program. Upon receipt, and verification of compliance with the terms of this article and corresponding approved agreement, payment to the applicant will be authorized within 60 days. (c) Improvements to real property made before the board approves the Initial application described above will not be eligible for payment. Additionally, payment will only be based upon the amount of broadband infrastructure expenditures, as set forth above. (d) The eligible business under the advanced broadband infrastructure investment program must enter into an advanced broadband infrastructure investment program agreement (the agreement) with the county, and the agreement must provide for, at a minimum, the following and include any provisions deemed necessary by the board to effectuate the provisions of this article: (1) The legal description of the project or development. (2) Neither the requirement for payment nor the agreement providing for such payment. may be transferred, assigned, credited, or otherwise conveyed separate from the property without prior written approval from the county. Approved agreements will run with the land. (3) Approved agreements must be recorded in the official records of Collier County at no cost to the county. (e) If the property which is subject to an approved agreement is delinquent in the payment of its annual taxes or special assessments at any time within the payment period, then any outstanding balance to be paid under this advanced broadband infrastructure investment program will not be made unless and until all outstanding ad valorem property taxes and special assessments are paid in full. (I) Termination. The provisions of this article Will expire and be void on October 1, 2013, unless continued by a resolution of the board of county commission prior to this date. (Ord, f\lC! 2005.56. S 1 Ord. ,~~O 2008-46. 9 4.9-9-08) Sec. 49-55. - Program eligibility criteria. To be considered eligible for approval under this program, a business or project must meet the criteria of one of the following categories: (1) Be located within Eastern Collier County and meet the following criteria: a. Type of business conducted is within the targeted industry list of the Economic Development Council of Collier County: and b. Creates a minimum of ten new full-time employee positions: and c, The newly created positions pay an average wage of at least 115 percent of the county's current private-sector average wage. (2) Be located Within the boundary of the Immokalee Rural Federal Enterprise Community and meet the following criteria: a. Create a minimum of five new full-time employee positions: and b. The newly created positions pay an average wage equal to or greater than 50 percent of the county's current private-sector average wage. (3) Be located within the boundary of the Immokalee Community Redevelopment Area and meet the following criteria: a. Create a minimum of five new full-time employee positions: and b. The newly created positions pay an average wage equal to or greater than 50 percent of the county's current private-sector average wage. (4) Packet Page -152- htto://J ibnu'v .municodc.wm/Drint.aspx'?clicntID= I 0578&HTMRcqucst=httP'Yc3a%2f%2fli,.. 5/20/20] I Municodc P,we 13 of 18 6/28/2011 Item 10.A. Be a high impact project and be located outside the enterprise community and Eastern Collier County and meet the following criteria: a. Type of business conducted is within the targeted industry list of the Economic Development Council of Collier County: and b. Creates a minimum of 20 new full.time employee positions; and c. The newly created positions pay an average wage equal to or greater than 150 percent of the county's current private-sector average wage: and d. Each application tor program participation must have approval by the board of county commissioners. f()'-d. N" :l005-56 ~; 21 Sees. 49-56-49-59. - Reserved. _EQ9TNOTE(?1______,_______ . - ---..----, ... -- - ----- ... --------_..__.__.,~~--~.-- .. ._--~._- . --. ~--_.,.,-_._- Editor's note- Ord. No. 20055(3. !}y i .lllri 2. arf:Jptucf Nov 1 20()f5. (lrmmded art V /1) ,Its entirely to rC:Ie] as IJerem sel our ,~ormerf\'. sam' a"lr::le pw/cunod 10 S'mrrC-!: sutxec1 m,Jlte':Is enac:recf hv S 7 olOrd. No 03 59 (Back) Collier County, Florida, Code of Ordinances>> PART 1- CODE>> Chapter 49 - ECONOMIC DEVELOPMENT>> ARTICLE VI. - JOB RETENTION INVESTMENT PROGRAM >> -------'-~._----------"-,-"-------_.,_.,'-------------"-'-"--,. ARTICLE VI. - JOB RETENTION INVESTMENT PROGRAM Sec. 49-60 . Aoolicabilitv See 49-61 - Purpose, See 49-62 - Pmoram p.lioibililv c!'iteria, Sec, 49-63. - Job !'etention investment proaram Sa:: 49.64 Implementation Secs. 4965---49-89 ' Reserved Sec. 49-60. - Applicability. This article applies to the unincorporated area of Collier County, Florida, and to all incorporated areas of Collier County to the greatest extent authorized by Article VIII, Section 1 (f) of the Florida Constitution, as it may be implemented by an intergovernmental or interlocal agreement. (, ,,'0 ,-.:" '6, S' See, 49-61. - Purpose. The purposes of this article are to' (1) provide a performance-based program offering financial incentives to eligible targeted industries in Collier County to mitigate the effects of escalating relocation and expansion costs: (2) provide tor the economic well-being of Collier County residents by providing high-wage employment opportunities in Collier County: and (3) encourage investment opportunities for the expansion of existing businesses, thus increasing and diversifying the county's tax base, :c: ) See, 49-62, - Program eligibility criteria. To be considered eligible under this program a company must meet all of the following criteria: (1) (2) The company must have been operating in Collier County for a minimum of two years, and at all times be in full compliance with all applicable laws and regulations: Participation in this program is limited to the following industry clusters: Aviation and Aerospace, Health and life Sciences, Computer Software and Services, Manufacturing and Wholesale Trade and Distribution: Packet Page -153- httn://lihral'\',lllullicodc,colll/DI'illt.asDx'!clicntlD= J 057X&HTMRculIcst=httP%3a%2f'!f-211i... 5/20/20 II Municode Pal!C 14 of]8 6/28/2011 Item 10A (3) The company must meet the criteria and participate in the State of Florida Qualified Targeted Industry (QTI) Tax Refund Program as set forth by F.S. 9288.106; (4) The average wage of the retained jobs must be a11east 115 percent of the average wage for Collier County; (5) The company must retain a minimum of five jobs; and (6) A minimum of 50 percent of the company's revenue must be generated from outside of Southwest Florida (Sarasota, Lee. Charlotte, Glades, Hendry and Collier County). lOrd. No. 08- 16, 9 I) Sec. 49-63. - Job retention investment program. (a) General requirements. Pursuant to the provisions set forth in this section, the county hereby estabiishes a job retention investment program to provide incentives to retain specified existing jobs in Collier County. (b) Application process. Any entity seeking eligibility and payment through the job retention investment program will file with the county manager an application for the program after receiving the approval of the Economic Development Councii of Collier County as an eligible participant in the program. The application must contain the following: (1) The name and address of the business owner; (2) The complete address and legal description of the site where the business is located, or the complete address and legal description of the proposed site if the business is relocating; (3) The type of business being proposed using Standard Industrial Classification (SIC) or North American Industrial Classification System (NAICS); (4) The number of full-time Jobs being created; (5) The number of full-time jobs being retained: (6) The average wage of those jobs created and retained: (7) The amount of time that the existing business has operated in Collier County: and (8) The date (month and year) when the new jobs will be in place. (Ord. No. OS-: 6. S 1 j Sec. 49-64. - Implementation. (a) Under this job retention investment program the eligible company may be awarded $1.000.00 per existing job retained, with a minimum of five existing jobs to be retained. The company must meet the criteria and participate in the State of Florida Qualified Targeted Industry (OTI) Tax Incenfive Program. The eligible company under the job retention investment program will enter into a job retention agreement with Collier County. which sr,all be prepared by the county attorney's office consistent with this article. An annual review and audit of performance under such agreement shall be performed by the county manager or his designee, to determine whether there has been good faith compliance with the terms of the agreement Employer shall give the county audifor full access to its business records and business premises as required to certify the retained and created jobs. If the county manager or his designee finds, on the basis of substantial competent evidence, that there has been a failure to comply with the terms at any such agreement, the agreement may be revoked or unilaterally modified by the county. Employer shall be given ten business days prior written notice of any review and audit. In addition to an annual audit, within ten business days from the county's written request, the employer will provide the county with all requested documentation required to verify compliance with the terms of the ordinance or any agreement. Job retention investment program funds will be paid, based on the number of existing jobs retained, in equal amounts over a three. year time period. Upon creation of the new jobs, as required by the State of Florida Qualified Targeted Industry (QTI) Tax Incentive Program, the company may submit a reeuest to the county manager for payment of job retention investment program funds along with documentation related to the retained jobs. Such documentation shall be verified by the county prior to the release of funds. Any award under this program is subject to the availability of funding. In the event that the company fails to comply with the terms 0; the program. including failure to qualify or maintain qualification lor the State of Florida Qualified Targeted Industry (QTI) Tax Incentive Program, or any other default occurs, the default must be cured within 30 days from written notice being provided to the owner. The board is enl1tled to recover all fees, costs, including attorney's fees and costs, incurred by the county in enforcing the agreement. plus interest at the then maximum statutory rate for final judgments, calculated on a calendar day basis until paid. The provisions of this article will expire and be void on October 1,2013, unless continued by a vote of the board of county commissioners prior to this date. (b) (c) (d) (e) {Or:j. {\,;o_ ,)[:5. g: Packet Page -154- httn'lf1ihr"rv 11111nicndecnl11/nrint."",x'h,lientID= I ()'i7X&HTMReouesl=htto'k.3ack-2l"%20i... 'i/20/20 11 Municodc Pauc 15 of 18 6/28/2011 Item 10A Secs. 49-65-49-89. - Reserved. Collier County, Florida, Code of Ordinances>> PART 1- CODE>> Chapter 49 - ECONOMIC DEVELOPMENT>> ARTICLE VII. - INNOV ATION ZONES >> ARTICLE VII. -INNOVATION ZONES Sec. 49-90. - Purpose. So.... 49.91. - Findinas. Sac 49-92 - Definitions See 4R-93 - Creation of innovation lone" i'lnd the Ci1IGulajion of annual tax increment amount. See 49-94. - Annual fundino of economic develooment trust fund. See: 49-95 - C"ealion Of economic develonment trust fund for each lone, See 49-96 - Pledoe or aooroDl'iatioll of trust funds See 49-97 - Preoaration of f'collomic deveiaoment oIJr]. See 49-98 - Initial determination of a tax increment. See 49-99 - Imolementation SOG.49100, Conflict Clnd severabilitv. Sec. 49-90. - Purpose. It is the policy of the Board to promote economic growth which results in high wage jobs and helps diversify the economy of Collier County. To further this policy, it is the intent of the Board to create a dedicated source of revenue to fund an economic development program and to advance economic development initiatives in zones of geographic concentration within the unincorporated areas of the County. These zones, to be called Innovation Zones, will be designated by the Board from time to time through the implementation of Economic Development Plans adopted by resolution for each Innovation Zone. (Dr:;', {Ve: :..\, IC :"'J_ {' ,':' Sec. 49-91. - Findings. It is hereby ascertained, determined and declared that: (6) The use of available Tax Increment revenues within an Innovation Zone as a dedicated economic development 1001 and funding source enhances the general welfare of the County through the advancement of new employment opportunities. the implementation of redevelopment initiatives, the creation of new economic development opportunities and locations and the expansion of existing employment centers. Each Innovation Zone is intended to encompass a defined geographic area used to determine the Tax Increment paid and applied pursuant to ordinance, resolution or agreement within the meaning of the term "dedicated increment value" defined in F.S. !l200.001 (8)(h). Commencing in the Initial Tax Incremenl Year for each Innovation Zone, the Tax Increment calculated pursuant to Section 4 of this Ordinance is intended to be a dedicated increment value referenced in the calculation of the "rolled back rate" under the method established in F.S. 9065 (1 J. Florida Statutes. (A) (e) "'1. .,\':- Sec. 49-92. - Definitions. As used in this Ordinance, the following words and terms have the following meanings, unless the context otherwise requires a different definition. "Aggregate Ad Valorem Millage Rate" means that millage rate obtained from the quotient of the sum of ad valorem taxes levied by the Board for countywide programs and within a municipal service taxing unit plus the ad valorem tax levied for all districts dependent to the Board divided by lhe total taxable value of the County. excluding Voted Millage Packet Page -155- htln:/Il ihrarv .11111nieodc.com/nrint.asnx 'lei icnl]D= 1 057X& HTMRcUlIcst=hun'7r:J,6,.2f')(-2Ili... 5/20/20 II Municodc Pa~e 16 of ] 8 6/28/2011 Item 10A "Aggregate Ad Valorem Taxes" means ad valorem revenue generated by a levy of the Aggregate Ad Valorem Millage Rate against the total taxable value of the County considered for any of the discrete Collier County Real Property Assessment Rolls referenced in Section 4 of this Ordinance. "Base Year Assessment Roll" means the last Collier County Real Property Assessment Roll certified by the Property Appraiser prior to the date of adoption of the Tax Increment Resolution. "Board" means the Board of County Commissioners of the County. "County" means Collier County. Florida. "County Manager" means the chief administrative officer of the County or such person's designee. "Economic Development Plan" means the economic development program referred to in Section 8 of this Ordinance established by resolution of the Board for each Zone. "Economic Development Trust Fund" or "Trust Fund" means that Trust Fund created by resolution in Section 6 of this Ordinance for each Zone for the deposit, maintenance and accounting of the Tax Increment revenues annually generated within each Zone. "Initial Tax Increment Year" means the tax year commencing October 1,2010 or such subsequent tax year as established in the Tax Increment Resolution for the initial determination of a Tax Increment for the annual funding by the County of an Economic Development Trust Fund for a Zone. "Innovation Zone" or "Zone" means a geographic area created by resolution pursuant to Section 4 of this Ordinance used to determine a Tax Increment to be paid into an Economic Development Trust Fund to fund the Economic Development Plan approved for each Zone. "Property Appraiser" means the Property Appraiser of the County. "Tax Increment" means the annual determination for each Zone of the tax increment revenues calculated for each Zone pursuant to the formula adopted in Section 4 of this Ordinance. "Tax Increment Resolution" means the resolution adopted by the Board pursuant to Section 9 of this Ordinance. "Voted Millage" means ad valorem taxes levied in excess of maximum millage amounts authorized by law approved for periods not longer than lwo years by vote of the electors pursuant to Article VII, section 9(b), Florida Constitution, or ad valorem taxes approved by the electors and levied as provided in Article VII, section 12, Florida Constitution, whether required and authorized by law, ordinance or the Florida Constitution. (Ord, No. 201020, 2 ~') Sec. 49-93. - Creation of innovation zones and the calculation of annual tax increment amount. (A) (B) The Board shall create Innovation Zones by adopting a resolution defining the geographic area comprising the Zone. The Tax Increment amount for each Zone shall be determined annually by the application of the following formula within the geographic area defined for each Zone and shall be that amount equal to the percentage rate set in the Tax Increment Resolution applied to the difference between: (1) the amount of Aggregate Ad Valorem Taxes received each year by the County from ad valorem taxes levied on taxable real propel1y contained within the geographic boundaries of a Zone: and (2) the amount of Aggregate Ad Valorem Taxes which wouid have been produced by a levy of the Aggregate Ad Valorem Millage Rate each year by the County upon the taxable real propeny within the geographic boundaries of a Zone as shown on the Base Year Assessment Roll. The amount to be funded by the County for each Zone shall not be less than the percentage applied to the difference between subparagraphs (B)(1) and (B)(2) of this Section as set in the Tax Increment Resolution or the resolution creating an Economi: Development Plan adopted for each Innovation Zone. The County Manager shall cenify to the Property Appraiser by May 1 of the year prior to the Initial Tax Increment Year, the boundaries of the designated geographic areas of each Zone, the reference to the Base Year Assessment Roll to be applied, and the specific proportion of the cumulative increase in taxable value to be applied in determining the Tax Increment. Any change in geographic boundaries, the Base Year Assessment Roll or percentage of the specific proportion of the cumulative increase in taxable value shall be certified to the Property Appraiser prior to May 1 of the year in which the change IS to occur. (C) (D) Packet Page -156- httn://1 ibrarv .l11unicode.col11/nrint.asnx ?clicntID= 1 057H&HTMRcqucst=http%3ac/r:.2f<if.2fli... 5/20/20] I Municodc Pa~c 17 of IS 6/28/2011 Item 10A (Qrd. No. 2010 20. S...1,1 Sec. 49-94. - Annual funding of economic development trust fund. Prior to January 1 of each County Fiscal Year and subsequent to any certification of the County Manager to the Property Appraiser required pursuant to Section 4(D), the Board sr,all appropriate and transfer to the Economic Development Trust Fund created for each Zone the Tax Increment for such defined geographic area, in an amount not less than that calculated pursuant to the formula provided in Section 4 of this Ordinance. (():"O' .1\)0 207020 S 5,1 Sec. 49-95. - Creation of economic development trust fund for each zone. There is hereby created an Economic Development Trust Fund for each Zone hereafter created by the Board in accordance with this Ordinance. The Tax Increment determined annually for each Zone shall be deposited in the Trust Fund prior to January 1 of each year as provided in Section 5 of this Ordinance and maintained for such Zone until paid or pledged for the implementation of the Economic Development Plan created for the Zone. By resolution of the Board, available funds maintained in one Economic Development Trust Fund can be paid or applied for a joint project or program with available funds maintained in a separate Economic Development Trust Fund or a percentage of future Tax Increment revenues can be pledged and applied for two or more Economic Development Trust Funds to jointly fund a program or project affecting multiple Zones. ,'o!C) :\"_, ::01020. ~;. 61 Sec. 49-96. - Pledge or appropriation of trust funds. By subsequent resolution or agreement the Board shall have the authority to provide for the use of funds maintained in an Economic Development Trust Fund for any purpose that accords with the requirements of Florida law, including without limitation issuing revenue bonds secured by a pledge of available funds maintained in an Economic Development Trust Fund, or authorizing lease purchase obligations subject to annual appmpriation from such available funds. In the event the Board decides to pledge such funds as security for revenue bonds, then such bonds can be secured from available funds maintained in the separate Economic Development Trust Fund created for each Zone or from available funds jointly available in multiple Economic Development Trust Funds for multiple Zones as determined in such subsequent resolution or agreement. iO:a r\in ::I_s..\~::," ;'1 Sec. 49-97. - Preparation of economic development plan. The Board shall adopt, and revise as necessary, by resolution, an Economic Development Plan for each Zone created by Ordinance, to provide for: (C) The appropriation or pledge of trust funds deposited or maintained in the Economic Development Trust Fund created for those Zones. An economic development progr'am identifying the public benefit to be derived, infrastructure necessary and required to implement and support such program, any incentives, regulatory or procedural changes, donations or contributions as may be deemed necessary to further economic development and.;or redevelopment within the respective Innovation Zone and a fiscal and/or economic analysis as and to the extent deemed appropriate by the Board. A partnership agreement, from one or more private entities, detailing a commitment to provide support in the form of frnancial funding, infrastructure improvements, land donations or 01her contributions, which in the discretion of the Board promotes the viability and success of the Innovation Zone. (AI (B) ,(irj ;'j~- Sec. 49-98. - Initial determination of a tax increment. The Board shall adopt for each Zone a Tay, Increment Resolution: (1) designating the Base Year Assessment Roll: (2) setting the percentage to be applied to the formula set forth in Section 4(8) of this Ordinance for the calculation of the Tax Increment: (3) specifying the number of County fiscal years to be utilized in determining the annual Tax Increment: and (4) setting the Initial Tax Increment Year. At the Packet Page -157- httn:lfl ihrarv .lllunicodc.L'OIll!iJrint.asDx "e! icntID= 1 05 78&HTf\1Rcltllcst=http'lHa'!r2f7r.2Ili... 5/20/2011 Munieode Pa~e 1 8 of 18 6/28/2011 Item 10A discretion of the Board, the resolution adopting and revising the Economic Development Plan and the initial Tax Increment Resolution can be combined into a single resolution serving both functions. (Ord. No 2010 20. ~ 9) Sec. 49.99. . Implementation. The Board may establish, from time to time, rules and regulations to implement and govern the administrative procedures that will be necessary for staff to implement this Ordinance, including minimum application requirements. These rules and regulations will be published and made readily available to the public. (Ord No 201020. 9 iO) Sec. 49-100. - Conflict and severability. In the event this Ordinance conflicts with any other ordinance of Collier County or other applicable law. the more restrictive shall apply. If any phrase or portion of the Ordinance is held invalid or unconstitutional by any court of competent jurisdiction, such portion shall be deemed a separate, distinct and independent provision and such holding shall not affect the validity of the remaining portion. (Ord. No. 2010-20. fji 1) Packet Page -158- ht to://I ibrarv .mul1 icodc .eom/oril1t .asox?e I iCl1tl D= 1 057 g& HTMRequcst=http'ii.-3a %2 f% 20 i... 51201201 1 , 6/28/2011 Item 10A 'FHIBIT C.- November 0. 2010 Packet Page -159- Introduction Summary of Findings About Arthrex Inc. Detailed Impact: Arthrex Inc. Current Operations Expansion Plans Detailed Future Impacts: One Time Impacts Detailed Future Impacts: Additional Annual Impact Future Impacts: Combined Background and Sources Research Considerations Appendix: General Impact Definitions Appendix: Tax Impact Definitions INNOVATION INSIGHT I Economic Impact of Arthrex lnc. . November 9,2010 t!l11;1U\t~.~L Packet Page -160- ~ll_~i_.lilL' ,. 1 1 1 2 4 5 6 7 8 8 11 12 6/28/2011 Item 10A IntiOduction This report presents the results of a formal impact analysis of Arthrex Inc. on the economies of Florida's Collier and Lee counties. More than a simple manufacturing operation, the Arthrex corporation contributes to local economies in a number of distinct ways. Its corporate headquarters are based in Naples, Florida, and currently supports 377 high-wage service and administrative jobs for Collier and Lee county employees. Its manufacturing operations produce parts for worldwide distribution and support 479 local manufacturing jobs for Collier and Lee county-based employees. The Arthrex Foundation invests more than $1 million annually, with most charitable contributions going to local organizations. Finally, approximately 6.000 healthcare professionals and business visitors travel to the Arthrex headquarters each year to receive special training, each of which contributes to local tourism spending al a high level. These direct activities combine and create an economic impact that includes all of the jobs and spending, both direct and indirect, that reiy and benefit from them. This report will present the combined impact of Arthrex's operations, and will also estimate the impact of the company's projected Collier I Lee 2015 footprint. Summary of Findings . At present, Arthrex Inc's current operations support more than 2,200 direct and indirect local jobs and annually contribute more than $435 million (direct and indirect) to the local economy. . By 2015, we project that Arthrex Inc.'s combined annual economic impact will increase to approximately 4.549 local jobs and more than $915 million annually in direct and indirect economic activity. . Current (2010) Future (2015) Type of Impact Jobs 2.201 4,549 Sales I Output $435.0 million $915.7 million GDP 3226.8 million $463 million . By 2015, a planned expansion of Arthrex manufacturing and headquarters activities will create a separate one-time impact of 626 jobs and 385.3 million in local economic impact through construction and investment in new facilities and equipment. About Arthrex Inc. Arthrex inc. is a sales and manufacturing company in the orthopedic medical device industry. Incorporated in 1984 and headquartered in Naples Florida since 1991, the company provides implants, instrumentation and medical education services for orthopedic surgeons and their patients. Arthrex provides products and services for the surgical specialties of shoulder. knee, hip and small joint surgery for human and veterinary markets. In addition to the Arthrex headquarters and manufacturing facilities in Florida, the company also has subsidiaries in Europe. Asia and South America and distributes its products to more than 90 countries worldwide. Arthrex holds a patent portfolio for its products comprised of more than 100 U.S. patents and additional foreign patents (source: Arthrex Inc.). INNOVATION INSIGHT I Economic Impact of Arthrex lnc. . November 9, 2010 Packet Page -161- r"iIl~ ~r ",,",. ',""'" . '." ,-" ",,' c' ,. ,," -',':; 6/28/2011 Item 10A Recent History In 1997 the Company's European based operations were consolidated with the Company's North America operations. In 1998 the consolidated Arthrex Inc. and subsidiaries recorded worldwide revenues of $68.9 million USD and had 53 Naples based employees. Since 1998 the company has enjoyed a compound annual growth rate of 24.3% and in its most recent fiscal year has recorded worldwide revenues of $944.2 million USD. Arthrex currently employs 921 people in its Naples based operations. The 27% compound annual growth rate for headcount exceeds revenue growth as the Company has added rapidly to its manufacturing capacity. The strategy of bringing production in-house is one that Arthrex plans to accelerate over the next five years, and the Company projects that its headcount needs will double over the next five years of operation. The Future Arthrex has enjoyed above-market growth rates and long term prospects for continued growth are positive. The Company competes in markets that have long term projected growth rates of between 7 and 9 percent. Given its competitive position the company expects to experience double digit growth annually for the foreseeable future. Detailed Impact: Arthrex Inc. Current Operations At present, Arthrex Inc.'s combined operations generate an annual economic impact of almost $435 million in Collier and Lee counties. The company's activities also create an ongoing impact of more than $226 million on the region's gross regional product (GDP), and support an estimated 2,201 direct and indirect local jobs. This combined impact also annually generates almost $12.4 million in local and state tax revenue. Impact Overview Impact Type Direct Effect Indirect Effect Ind uced Effect Total Effect Output $262.768,416 $89.092.080 $83.141,144 $436,001,632 Employment 934 584 682 2,201 Labor Income $96,258528 $30.779,788 $26,425,536 $153,463.856 GDp I Value Added $127.294,720 $48.546,048 $5P~46.048 $226,786,81" Based on estimates from our economic model, this total impact constitutes 0.80% of Collier and Lee counties' total economic output, and 0.46% of the two counties' combined employment. It also impacts 0.41 % of the region's corporate real estate tax, and 0.28% of the region's personal real estate tax. In other words, our economic model estimates that the presence of Arthrex Inc.'s manufacturing and headquarter operations has increased Collier and Lee counties' properly values by about one-third of a percent. How do we reach these figures, and what do they mean? Direct Effect impacts are the actual Arthrex investments into the community, and the actual inputs into the IMPLAN economic modeling software that we use to create our impact estimates. The 934 direct jobs are the sum of the activities listed in the following table. Please note that the direct jobs from visitor spending and charitable contributions (denoted by an asterisk) are job-equivalents calculated by the IMP LAN software based upon annual investment and spending levels, and not actual employees of Arthrex Inc. INNOVATION INSIGHT I Economic Impact of Arthrex Inc. . November 9,2010 2 Packet Page -162- L~lli_giit . Arthrex Ino. Manufacturing Jobs Arthrex Inc. Service and Administrative Jobs 6/28/2011 Item 10A 479 377 . -. . ... . . ".1<_.,.-"..:',. .:....;...: ' Arthrex Inc. Annuai Charitable Contribution Activity' ",::,:"-,,,,:,-,.:>',,:>;,,> ._i:;":'~"': . . -., Annual Vi~itor Spending from Arthrex Inc. Training I Education Operations' Combined direct total 18 60 934 Indirect Effect impacts are those resulting from Arthrex Inc.'s operational expenditures in the community, such as supplies and vendors supporting its service and administrative activities, raw goods. supplies and equipment to support its manufacturing, or any other services. goods, or inputs necessary for ongoing operations. This is the demand that Arthrex Inc. 's activities create within the local economy. The IMPLAN economic software contains a model of indirect local spending activity in Collier and Lee counties based upon national industry averages and local employment, population, industry and tax records. For this report, we have calibrated local spending inputs to be half of what IMPLAN predicts as average, for the purpose of building a very conservative impact estimate. Induced Effect impacts are the "ripple" effects created in the economy; the impacts of where employees, vendors, and service providers locally spend their money such as restaurants, stores, and other industries. State and Local Fiscal Impact Detail Description DividendS Social Ins Tax- Employee Contribution Social ins Tax- Employer Contribution Indirect Bus Tax: Sales Tax Indirect Bus Tax: Property Tax Indirect Bus Tax: Motor Vehicle Lie Indire~ Bus Tax: Severance' Tax Indirect Bus Tax: Other Taxes Indirect Bus Tax: S/L NonTaxes Corporate Profits Tax Personal Tax: Income Tax Personal Tax: NonTaxes (Fines- Fees Personal Tax: Motor Vehicle License Personal Tax: Properly Taxes Personal Tax: Other Tax (Fish/Hunt) Total Slate and Local Tax Indirect Employee Business Compensation Tax Households Corporations Combined 5496.374 557,124 ,245 766 4,965030 3,887.332 76.840 16,298 1.211.776 442,904 5237,679 $302,890 $10.600,180 5528,704 5',67.753 577 .809 511.236 $785,501 $734,054 $12,422,625 INNOVATION INSIGHT I Economic Impact of Arthrex Inc. . November 9, 2010 3 Packet Page -163- [,r.---,117'_'-~ Top Ten Employment Sectors Impacted, Detail SurgiCal ~n<:\. m'edical ",strume,;\. laborator . and ' medical, inst~u~ent. manufacturi ' .....{,....<..,.,.~'.....-tF01~....:>.r,..,...:.,...-.,."....<...,'.'::..-..1....' Management of companieS' F;;"ds~~i~~s~i"i 'drinki R!,~I~s~i~e;i~n~h';;~n Wholesale trade"tiusiness Offices of physicians, dentists, and' oth p rac~~I:~,~:r~'; " , :':;..:;, '1 '-~}g',,'~.;[ftj~:~i;;!:::;,~:;??,-:~~A~:~::: Leg~,iseJ"\.r1 ,-,',".' ..;.)~,-- ..'iU~ili:-.:;.'.:,:'. Securities', com' ntracts, investments';,: ane;.r~~:-~!~j;,~.~t~:~!~,~i~il}~i1~;i~'~i(:,~::i-.~-:-::,:';~-;i~~;.:...:,.:.' :!. Employrp~pt~e:J'VJpes,'[~frv_\<.~".:'>:,0'j_.,;::~_':.. ",,"!""';"____ .. Mar1ageme~( sqfentific. and tecnnical consulting serviceS;;': -,.:i"'_',:;!5':":-:':::'>: "- >f',.<: _,-:,"'"VC!i: ';':.: ....';...','(" :"""':.: :-', ',': 479.8 395.7 124.3 108.1 57.0 41.5 40.8 37.6 37.2 336 $41,752,212 $54,142,592 $3,086.798 $2.352.429 $4.162.230 $3.334.145 $3.017.756 $2.058.585 $785.363 $2,444,421 Total Total Value Total ":: Added.. ' Output ty~~?, $54,343.320 $143,455.24E 572,421.992 $117.567.896 $4,525,424 $8,493,689 $10,991,533 $14,405,677 $7,196.577 $10,763.530 $3,876.221 55,677.560 $3,902,755 $6,383.708 $2,097.181 55.601.935 $848,108 $1.202.806 $2,809.176 $5.140.067 To calculate Arthrex Inc.'s impact relative to the Lee and Collier counties' combined economies, we compare the company's baseline economic impacts (as described above) to the baseline economic activity that IMPLAN estimates for the two counties as described below, Please keep in mind that this compares Arthrex Inc.'s combined impact (direct, indirect, and induced) relative to the total local economy, Export manufacturing companies like Arthrex Inc. make a disproportionate contribution their local economies, as they inject critical new dollars, growth, and resources into the economy, and their contribution is not dependent upon local economic cycles. This is why exporters are often referred to as "primary economic contributors", relative to "secondary contributors" which largely circulate money that is already within the economy (such as restaurants, retail stores, etc,). Arthrex total" impaCt $435,001,632 2.2009 $3,965.141 Lee + Collier' County Ba~eline $54.563.256,466 475.610 $984.920.323 %, 0.80% 0.46% 0.40% Expansion Plans Arthrex Inc. projects strong growth over the next several years that will necessitate an expansion of their current production and administrative infrastructure. If this expansion takes place in Collier or Lee counties, this of course means Arthrex Inc.'s economic impact will increase as weil. This future impact will consist of two parts: 1) a one-time impact resulting from investment in facilities, construction, and capital equipment; and 2) increased annuai impact from added jobs and investment from manufacturing, headquarters operations, and healthcare professionals and others visiting for training and education in Arthrex products. We will estimate these two types of impacts separately. INNOVATION INSIGHT I Economic Impact of Arthrex Inc. . November 9,2010 4 Packet Page -164- ~.__-<1 :U~-~~ 6/28/2011 Item 10A Detailed Future Impacts: One Time Impacts Projected expansion needs will involve an estimated $93 million investment in facilities and capital by Arthrex Inc. by year 2015. This will result in a one-time impact of more than $85.2 million in Collier and Lee counties. This will also create a temporary impact of an estimated 626 direct, indirect, and induced jobs, and add nearly $29.3 million to the local economy's gross regional product. The expansion will also add a one-time increase of more than $2.4 million in state and local tax revenues collected. Impact Overview . Impact Type . Direct Effect Indirect Effect , Induced Effect Total Effect Output.. $53.431.196 $15.990,384 515.826.163 $85,247,744 Employment' 384 112 130 626 Labor Income, GDP I Value Added. $18,634.344 521,489.024 55.663.945 $8,512.384 55.027.793 59.696,512 $29,326,082 $39,697,920 State and Local Fiscal Impact Detail Description ',. . Dividends Social Ins Tax- Employee Contribution Social Ins Tax- Employer Contribution Indirect Bus Tax: Sales Tax Indirect Bus Ta~: Property Tax Indirect Bus Tax: Motor Vehicle Lie Indirect Bus Tax: Severance Tax Indirect Bus Tax: Other Taxes ".,..:.....,..,....-...:... :..i:. Indirect Bus Tax: S/L NonTaxes Corporate Profits Tax. ',::.;),:",;-,_:"", Personal Tax: Income Tax Per~onal Tax: NonTaxes (Fines- Fees Personal Tax: Motor Vehicle License Personal Tax: Property Taxes Personal Tax: Other Tax (Fish/Hunt) Total State and Local Tax Indirect Employee . Business Compensation .." Tax" . -,..;," . ;...:....,... ,.,......: ........, -,',',' .... -','-,.",',. ,- Households Corporations Combined 564.717 510.265 544162 5997.575 5781044 S 15439 53 275 5243.470 588.988 530.989 $0 5101,423 532.181 514.926 52.155 $54,427 $2,129,791 $150,685 $95,706 $2,430,609 INNOVATION INSIGHT I Economic Impact 01 Arthrex lnc. . November 9,2010 5 Packet Page -165- r~ldll!lftlj]II'-~~~~ 197.6 $9,741.526 $11,790.898 $31.910.644 146.6 $7,202.954 $7.623,033 $20.689,778 40.8 $1,723.433 $2.116.536 $872.943 21.7 $1,268.410 $1,286.673 $2.589.550 18.6 $461.628 $676.773 $1.270,224 17.5 $380.552 $1.778.097 $2.330.402 12.8 5936.228 $1,618,757 $2.421.087 10.2 $216.029 $233.289 $330.855 7.9 $632.814 $735.699 $1,077,589 7.5 5553.198 $715.431 $1,170.225 Detailed Future Impacts: Additional Annual Impact Arthrex Inc. projects that by 2015, it will have to expand its total employment by an additional 906 jobs to meet demand and growth needs. Annually, it also projects that the number of healthcare and business professionals that travel to Arthrex headquarters for training and education will increase by 33%. Combined with market rate payroll base increases of its current (2010) employee base, these expanded operations will generate an additional $480.7 million each year in local economic impact. The expansion will contribute an additional 2,349 direct and indirect jobs, $236.2 million in increased gross regional product, and an additional $12.9 million in collected state and local taxes, each year. Impact Overview V<<-"'-:.'.:""',:, "i', .. Impact Type Direci' Effect Indir~ct Effect ,".<"""',,:' ,:,-.,<,-,- .... Induced Effec~ Total Effect Output 5296,184,896 $98,316.000 .. $86.182,528 - $480,683.424 Employment 1,003 639 707 2,349 Labol' Income . $98.183608 $33,766,924 $27,386.756 $159,337,280 GDP I Value Added $129.240,320 $54.155.392 $52.806.912 $236,202,496 INNOVATION INSIGHT I Economic Impact of Arthrex Inc. . November 9, 201 0 6 Packet Page -166- ifl':', ~.. ',: .,'. ",.,' ..' .-' ," '. .. State and Local Fiscal Impact Detail .ID.'_____h.._,.,"" p,""-' 6/28/2011 Item 1 OA Descriptiori~-::{- -, Dividends . Social Ins T~~: E!,,~loyee Contribution S?ci~llns Tax; Employer Contribution Indirect Bus TaX: Sales Tax'; . "<<_:"<>;":'",,;.,:, ::<<:'~;,,-,; Indirect Bus Tax: Property Tax (,",_ ::,C_//;"::,...:",,,,: Indi~ect Bus Ta~.: .Motor Vehicle lic Indirect Bus T~~: Seve;~nceTax , Indirect Bus Tax:. ~he~.~axes ..' Indirect Bus Tax: S/L NonTaxes ,:', ,I.:'"J; Corporate Profits Tax. Personal Tax:: Income Tax" Personal Tax: NonTaxes (Fines- Fees Personal Tax;. M,ol~r v:~i~l~ li~nse Personal Tax:: Property Taxes. . Personal Tax:: Other Tax (Fish/Hunt) Total State and Local Tax Employee Compensation Indirect . 1:: Business'..:,'". -.': ,<',-' ::':',::()-:':'::";::,' ..':"', - ", ::" ," ..'L Tax Households Corporations Combined $521.076 $57.821 $248.765 $5.166.287 $4 044,904 $79,955 $16.959 $1.260895 5460857 $306,586 50 $549,831 5174,456 $80.918 $11.685 $11,029,860 $816,891 Top Ten Employment Sectors Impacted, Detail Total . Total Labor Descriptiol) EmplOYment Income Surgical and medical instrument, laboratory and medical instrument manufacturing Management ofcompaf1i~ and ent~rprises Foodse",ices a~ddrlnking places' Real estate establishments . Wholesale trade businesses Offices of ph~sicians; dentists, and other health practitiol1e~ ." " . Legal services SecLlrities, commodity contracts, investments, and related activities Employment services Retail Stores - Food and beverage 7501 565.269248 2626 535.930884 1173 $2.912.723 1105 52,402 962 754 55,506.304 430 53,451887 41 9 53100.149 41 5 52274,453 392 5827.728 358 51.080,208 5249.507 $770,583 $12,923,920 Total Total Value Total Added 'Oulput 584.952,336 $224,256.784 548.061.724 $78.022,104 54.270.221 $8,014,702 511.227,643 $14.715,127 59.520,507 $14,239.309 54,013,107 54009.311 52317,096 5893.858 51,662.466 55,878.059 56,558.001 56.189.368 51267.689 52.572.414 Future impacts: Combined Not including one-time impacts. we estimate that by 2015 Arthrex Inc. will have the following annual impact on the Collier and Lee countie5' economy, plus an additional $25.35 million in state and federal tax revenue: Impact Overview Impact Type Direct Effect Indirect Effect Induced Effect Total Effect Output 5558.953,312 5187408,080 5169.323.672 5915,685,056 Employment 1,937 1.223 ., 389 4.549 INNOVATION INSIGHT I Economic Impact of Arlhrex lnc. . November 9, 2010 Packet Page -167- r.~~",JrijI,,'l2IIlr~il,"'F_V!","",lmi'..w,:"--"7':"::jj;:r' kt~~~~~1~~':~~ Labor Income $194,442136 564,546712 553,812292 $312,801,136 GDP I Value Added 5256535.040 $102.701.440 $103,752.960 $462,989,312 7 -*"":",;r:'~ Background and Sources Innovation Insight Inc. is a Florida research consulting firm specializing in marketing and public relations research services for high-technology industries. The firm and its founder, Guy Hagen, have produced dozens of industry studies for Florida economic development agencies, Enterprise Florida, and state and national technology industry organizations. From 1999 to 2000, Guy Hagen co-chaired a state task force to provide guidelines for consistent and transparent application of economic impact studies such as this one (the Florida Governor's Office Cluster Metrics Task Force). Innovation Insight Inc. is a private, for-profit corporation. Information of a proprietary or business sensitive nature may be anonymized, aggregated or withheld in order tD protect individual research participants and companies. This study was conducted by Innovation Insight on behalf of Arthrex Inc. Economic impact forecasting was performed Dn the Minnesota IMPLAN Group (MIG) IMPLAN software (version 3, social accounts model) using a 2009 statewide Florida data model. Arthrex company data, investment activity, visitor levels, and growth projections were provided by Arthrex inc. Additional data regarding visilor spending activities were drawn from the US Bureau of Economic Analysis (BEA), Hotels com, Travel.Yahoo Com. Wikioedia com, and the Florida Department of Transportation (Aviation Office). Other sources of data for this report are indicated in-text. Research Considerations It is the practice of InnDvation insight to utilize a very conservative research framework when conducting economic impact studies. Further, we strive to utilize a transparent, replicable methodology that can be verified by any competent economist utilizing the same inputs and same models. Detailed inputs to this study may be made available upon request; however, these inputs may contain information of a competitive I business-sensitive nature and access may require special permissions and execution of non-disclosure agreements. The impact estimate described in the section "Detailed Impact: Arthrex Inc. Current Operations" was structured as a subtractive analysis; in other words, the IMPLAN model was executed by removing the amount of Arthrex Inc's annual activity from the economy. This is the most common and widely accepted method for documenting the impact of an existing industry sector, company, or activity. For editorial consistency and to reduce confusion. however, all impact figures are presented as non-negative. The impact estimates described in the "Future" sections were structured as additive analyses; projected future construction investments and increased Arthrex corporate activity were added to the model's representation of the local economy. This is the most standard praclice when modeling new impacts to an economy. All dollar figures are adjusted for inflation and presented in 2010 US dollars. Inputs to the impact modeling process were structured according to the following assumptions: . Manufacturing operations where categorized as IMPLAN sector 305, "Surgical and medical instrument manufacturing". Note that in order to support the most reasonably conservative estimate of Arthrex Inc. impacts, the IMPLAN default estimate of local spending activity (intermediate spending) for this sector was reduced by 50%. INNOVATION INSIGHT J Economic Impact of Arthrex lnc. It November 9, 2010 8 . Headquarters service and administrative jobs were categorized as IMPLAN sector 381, "Management of companies and enterprises". Note that in order to support the most reasonably conservative estimate of Arthrex Inc. impacts, the IMPLAN default estimate of local spending activity (intermediate spending) for this sector was reduced by 50%. . Arthrex Inc. charitable investment activities were categorized as IMPLAN sector 424, "Grantmaking, giving, and social advocacy organizations". . Both "Current" and "Future" impact estimates modeled traveler spending activity of visitors to Arthrex Inc.'s headquarters. These visitors consist of approximately 6,000 healthcare and business professionals who each year travel to Arthrex Inc.'s corporate headquarters for specialized training and education. Lacking a formal survey of visitor expenditures, a conservative template of spending was based upon the US Bureau of Economic Analysis' schedule of tourist spending as a general guideline. This template was populated with the best data available, and structured as follows; .:. 6.000 visitors annually, each spending 2.5 days (average) in the region. As these visitors were healthcare and business professionals (including many orthopedic surgeons and doctors) it was assumed that they would have a liberal per diem and personal spending budget and prefer above-average lodging, travel, and dining options. '.' A survey of hotels.com 4- and 5-star hotels within 10 miles of the Arthrex corporate headquarters, sampled at four non-holiday periods throughout the year established an average nightly hotel cost of $220.92 (IMPLAN sector 411, "Hotels and motels, including casino hotels") '.' A survey of travel.vahoo.com car rental prices, "Full" and "Premium" car models available from the Southwest Florida Internalional Airport, sampled at four non- holiday periods throughout the year established an average daily rental cost of $73.84 (IMPLAN sector 362, "Automotive equipment rental and leasing"). .:. 6,000 visitors were calculated to constitute roughly 0.08% of the annual passengers of Southwest Florida International Airport (source: Wikioedia.com). This was extended pro rata to the Airport's annual direct employment, as documented in a 2010 report by the Florida Department of Transportation entitled "The Economic Impact of Southwest Florida International Airport (RSW)". ',' Combined per-visitor impacts were allocated to the following categories, based upon conservative estimates and anecdotal information: Sector 413 409 410 327 329 330 IMPLAN Sector Description Food services and drinking places (10+20+40) Amusement parks. arcades. and gambling industries Other amusement and recreation industries (eg fishing, sailing) Retail - Clothing and clothing accessories Retail - General merchandise Retail - Miscellaneous . INNOVATION INSIGHT I Economic Impact of Arthrex Inc. . November 9, 2010 9 Packet Page -169- !ITI~~~ . Future (one-time) construction inputs were modeied as the following; Sector 35 36 207 322 254 IMPLAN Sector Description Construction of new nonresidential manufacturing structures Construction of other new nonresidential structures Other industrial machinery manufacturing Retail - Electronics and appliances (Office Equipment / Computers) Analytical laboratory instrument manufacturing INNOVATION INSIGHT I Economic Impact of Arlhrex Inc. . November 9,2010 111. 10 Packet Page -170- Appendix: General Impact Definitions . Output: Output represents the value of industry production. In IMPLAN these are annual production estimates for the year of the data set and are in producer prices. For manufacturers this would be sales plus/minus change in inventory. For service sectors production = sales. For Retail and wholesale trade, output = gross margin and not gross sales. Economic impact figures, without definition, usually refer to Output. . Labor Income: All forms of employment income, including Employee Compensation (wages and benefits) and Proprietor Income. . Direct Impacts: take place only in the industry sector immediately affected, such as direct jobs and investments. . Indirect Impacts: concern inter-industry transactions; if an analyzed sector is removed from the economy, sector companies will no longer have a demand for locally produced materials needed to produce their product. This will affect all of their suppliers. . Induced Effects: measure the effects of the changes in household income: employees laid-off by removing the analyzed sector from the economy may reduce their expenditures in restaurants and shops since they are no longer employed. These changes effect the related industries. . GDP: Industry Gross Domestic Product is the contribution of each private industry and of government to the nation's output, or GDP. An industry's GDP, or its "value added," is equal to its gross output (which consists of sales or receipts and other operating income, commodity taxes, and inventory change) minus its intermediate inputs (which consist of energy. raw materials, semi-finished goods, and services that are purchased from domestic industries or from foreign sources). It can also be measured as the sum of incomes related to production, such as wages and salary accruals and gross operating surplus. (SEA) Sources: Imolan.com; Wikioedia com INNOVATION INSIGHT I Economic Impact of Arthrex Inc. . November 9,201 0 11 Packet Page -171. r w:~\ "-. .'. .' . ' .'" , "~-i 6/28/2011 Item 10A Appendix: Tax Impact Definitions . Dividends: Any payment to administrative government is considered a tax. It represents a source of revenue to state and local government. . Social Ins Tax- Employee Contribution; Employees' social contributions are the amounts payable by employees to social security funds and private funded social insurance schemes. . Social Ins Tax- Employer Contribution: Employers' social contributions are payments by employers which are intended to secure for their employees the entitlement to social benefits should certain events occur, or certain circumstances exist, that may adversely affect their employees' income or welfare - sickness, accidents, redundancy, retirement, etc. . Indirect Bus Tax: Prior to the 2003 comprehensive NIPA revision, 1ST was the name of one of the three components of value added. It consists of tax and nontax iiabilities that are chargeable to business expenses when calculating profit-type incomes and of certain other business liabilities to government agencies that are trealed like taxes. Thus, I ST includes taxes on sales, property, and production, but it excludes employer contributions for social insurance and taxes on income. As part of the NIPA revision, this component was modified and termed "taxes on production and imports less subsidies." The major differences between the two are attributable to the treatments of subsidies and non-taxes. (SEA) . Indirect Bus Tax: Sales Tax: Includes sales tax charged to both businesses and individuals. Sources; Imalan.com; Wikiaedia.com INNOVATION INSIGHT I Economic Impact of Arlhrex Inc. . November 9,2010 12 ~1 ,~N ~-.,...'" INNOVATION INSIGHT \VVI/W, j n nova ti on i n ~ ig ht. com '_t F~ ::I1CJni '=:CH;', ',' _:~". i Packet Page -173- ,,;"i_ . ~ . I EXHIBIT ]) A Collier County Economic Impact Study: Expansion of an Existing Medical Equipment and Supplies Manufacturing Company 6/28/2011 Item 10A Prepared for ~~ ECONOMIC DEVELOPMENT COUNCIL ({C'ollie,' ("mOll). F/orir/rI Growing Great Idea~ Dr. Gary Jackson Director, Regional Economic Research Institute Lutgert College of Business Florida Gulf Coast University May 16, 2011 Packet Page -174- 6/28/2011 Item 10A Executive Summary This study has forecast the economic impact on Collier County of an expansion of an existing firm that will create 600 positions in Collier County by June 30, 2016, at an average annual wage of $59,580. The average value of benefits associated with each new job is 19 percent of the average wage, resulting in an average total compensatiDn of $73,646 per new employee. Project Overview A medical equipment and supplies manufacturing company is considering an expansion in Collier County that will add 600 new employees and require an investment of $30 million for the construction of new and renovated facilities. In addition, the company will purchase $20 million in manufacturing equipment through 2016 to support the expansion. The information for the study was provided by the Economic Development Council of Collier County (EDC) which is not allowed to disclose the company's identity at this time. The EDC is able to provide sufficient information to cDmplete an economic impact study of the firm's expansion on the local Collier County economy. The company has a North American Industrial Classification (NAICS) code of 3391, medical equipment and supplies manufacturing. Examples of products made by these establishments are surgical and medical instruments, surgical appliances, and supplies. Operating Economic Impacts The value added economic impact of the firm's completed expansion (2017 and beyond) to Collier County is forecast to be $124.8 million annually. 1 The present values2 (measured in 2011 dollars) of the variDus econDmic impact measures of the expansion of the firm for the five years 2012-2016 are: Economic Measure Increase Value Added $2784 million Labor Income $190.2 million Expenditures $6515 million The projected overall employment gain in Collier County is 1,085 employees by 2017. 1 Value added is the additional Income created in Collier County plus indirect business taxes and is shown in 2017 dollars. This assumes that the company continues to operate at the expanded level. 2 The four-year present value IS calculated using a discount rate based on the 3D-year National Municipal Bond Yields of 4.5 percent, wwwbloombergcomlmarkefslrates/index.html. as of May 12. 2011. 21 ? ~ -, ~ Packet Page -175- 6/28/2011 Item 10A Description of Company The informatiDn for the study was provided to the Economic Development Council of Collier County (EDC) which is not allowed to disclose the company's identity at this time. The Economic Development Council of Collier County is able to provide sufficient information to complete an economic study of the firm's impact on the Collier County economy. The North American Industry Classification System (NAICS) code for the company considering the expansiDn is 3391, a medical equipment and supplies manufacturing company. This industry is comprised of establishments primarily engaged in manufacturing medical equipment and supplies. Examples of products made by these establishments are surgical and medical instruments, surgical appliances, and supplies. The company is planning to spend $30 million dollars between 2012 and 2014 on the construction of new and renovated manufacturing facilities. In addition, the company is planning to spend $17 million on new manufacturing equipment. The company plans to hire 600 new employees at an average annual salary of $59,580 by June 30, 2016. This would include the following assumptions for the economic model runs: . Construct a new manufacturing facility in 2012 valued at $17 million and a supporting expenditure of $2 million fDr new manufacturing equipment; . Additional construction in 2013 of $3 million on faculties and $6 million for supporting manufacturing equipment; . Renovate and construct another facility in 2014 valued at $10 million and an additional expenditure of $6 million for manufacturing equipment; . Additional expenditures of $3 million in 2015 and another $3 million in 2016 for manufacturing equipment. . Hire 400 new employees by June 30, 2014, with an average annual wage of $59,580; . Hire an additional 1 00 employees by June 30, 2015; and . Hire an additional 1 00 employees by June 30, 2016. Although the economic analysis reported in this paper extends only to 2017, the eCDnomic benefit to Collier County of gaining 600 new positions will continue as long as firm continues to prosper and operate at the expanded level in Collier County. The average annual wage for each new position $59,580 and the average value of benefits associated with each new job is 19.1 percent of the average wage. This results in an average estimated total compensation of $73,646 per new employee in 2013 dollars. The study assumes that the equipment expenditures are from manufacturing companies outside Collier County and do not have any economic impact on Collier County. The analysis assumes that the manufacturing company employees live in Collier County. 31Page Packet Page -176- 6/28/2011 Item 10A Study Results The economic impact model, IMPLAN, provides four measures of economic impact for CDllier County. . Employment represents the gain of employment in Collier County as a result of the company expansion; . Labor income represents the gain in wages. salaries, and benefits paid to workers in Collier County; . Value added represents the gain of labor income, proprietary income, other property income, and indirect business taxes created within Collier County; and . Expenditures is a measure of the increase in expenditures resulting from the company's operations in Collier County. The model accounts not only for the expenditures by the company (direct), but also indirect gains created by other firms which are suppliers of services and products to the existing (indirect) and the additional expenditures by the new employees and their families (induced) for housing, food, and other goods and services. Economic Impacts of Hiring 600 Additional Employees: 2013- 2017 The company plans to hire 600 new employees between 2013 and 2016. The information provided by the EDC shows that the company will have hired the equivalent of 120 full-time annual employees in 2013 The economic impact is shown in employment, labor income, value added, and expenditure increases in Table 1. The direct employment gain is 120 full-time annual employees and the overall employment impact for Collier County is forecast to be 217 full-time equivalent annual employees created in 2013. The direct labor income gain is $105 million with the overall county- wide impact of $154 million. The direct value-added economic increase for Collier County is $13.7 million with the overall economic increase of $226 million. Direct expenditures by the company are estimated to increase by $37.8 million with the overall expenditure increase for Collier County of $530 million. The total or Dverall economic impact includes the direct increases by the company plus the additional increases in business-to-business activity as well as the additional economic activity created by the increased expenditures of households for various products and services. mp ovment alns In o ier ountv Labor Value Emolovment Income Added Exoenditures Direct 120.0 $10,508,433 $13,723,503 $37,795,260 Indirect 524 $2.993,133 $5,118,769 $9,063,266 Induced 445 $1.867.652 $3,768,902 $6,188,420 Total 2170 $15.369.218 $22.611,174 $53.046.946 2013 E Table 1 G . C II C 41" - - .. ,.... C' "..: ";,.~ Packet Page -177- 6/28/2011 Item 10A The company plans to have hired the equivalent of 370 new full-time annual jobs in 2014, as shown in Table 2. These include the jobs created in 2013. The direct employment gain is 370 new employees and the overall or total economic impact on the Collier business community is the creation of 669 new employees. Direct labor income gain is $33.2 million and the total labor income created by the additional employment is $48.6 million. Direct value added increase is $43.4 million and the total value added increase for Collier County is $71.5 million. The direct expenditures by the company are increased by $119.4 million and the total expenditures for Collier County rise by $167.7 million. 2014 Em 10 Table 2 ment Gains in Collier Count Labor Value Income Added $33,211,027 $43,371,989 $9,459,546 $16,177,441 $5,902,560 $11,911,302 $48,573,134 $71,460,732 Ex enditures $119,448,770 $28,643,696 $19,557,987 $167,650,453 Direct Indirect Induced Total Em 10 ment 370.0 161.7 137.3 669.0 By 2015, the company plans to hire the full-time equivalent annual employment of 498 emplDyees with a total employment gain for Collier County of 900 employees as shown in Table 3. This includes the new employees hired in 2013 and 2014. The new direct labor income paid by the company is $45.8 million and the total Collier County labor income gain will total $670 million. The direct value added created by the expansion is $59.8 million and the total increase in value added for Collier County is $98.6 million. The direct expenditures are estimated to increase by $164.8 million and the total expenditures will increase by $231.3 million. 2 5 mplo ment ains In oilier ountv Labor Value Employment Income Added Expenditures Direct 498.0 $45.817,754 $59,835,761 $164,790,878 Indirect 217.6 $13,050,339 $22,318,311 $39,516,688 Induced 1848 $8,143,139 $16,432,768 $26,982,093 Total 900.4 $67,011,232 $98,586,840 $231.289,659 01 E Table 3 G C C Employment continues to grow in 2016 with the full-time annual equivalent company employment rising to 586, as shown in Table 4. The total employment gain for Collier CDunty is estimated to reach 1,060 employees. Company or direct labor income increase is predicted to be $55.3 million with total labor income in Collier County increasing by $808 million Direct value added increases by $72.2 million and total value added for Collier County increases by $118.9 million. Direct expenditures increase by $1988 million with total expenditures increasing by $229.0 million. 5lPage Packet Page -178- 6/28/2011 Item 10A Table 4 2016 Employment Gains in Collier County Labor Employment Income Value Added Expenditures Direct 5860 $55,261,915 $72,169,377 $198,758,315 Indirect 2561 $15,740,334 $26,918,661 $47,662,046 Induced 217.4 $9,821.640 $19.819.964 $32,543,763 Total 1059.5 $80.823,889 $118,908,003 $278.964,124 The expansion results in the company adding 600 full-time annual employees and the total employment for Collier County grows to 1.085 in 2017 as shown in Table 5. The direct labor income gain is $58.0 million and the totallabDr income increase is $84.8 million. The direct value added increase is $75.7 million in 2017. The total value added for Collier County increases to $1248 million with direct expenditures of $208.6 million and total expenditures of $292.8 million. The economic benefits Df the additional employment wouid continue as long as the employees continue to work, so the overall economic impact can be expected to continue past 2017. Table 5 20 7 Employment Gains in 01 ier ounty Labor Employment Income Value Added Expenditures Direct 600 $57.996,720 $75,740,899 $208,594,477 Indirect 262.2 $16,519.292 $28.250,814 $50,020,748 Induced 2226 $10.307,694 $20,800,815 $34,154,291 Total 1084.8 $84.823.706 $124,792.528 $292,769.516 1 C I C Economic Impacts of Construction Expenditures: 2012- 2014 The company plans to spend $17 million constructing a new manufacturing facility in Collier County. This will result in the creation of 103 new construction jobs and has an overall employment increase of 147 jobs in 2012 as shown in Table 6. The additional labor income is $7.6 million and the value added is $10.4 million. The total expenditure increase is $23 million. The gains in employment, labor income, value added, and expenditures will last only as long as the construction is active Once the construction is complete, the gain in jobs and income will not continue past the year or years of construction. 61 P ,. "C , .J. >,... ~. Packet Page -179- 6/28/2011 Item 10A Table 6 2012 Construction Ex enditures in Collier Coun Labor Value Income Added $5,567,107 $6,752,851 $1,155,638 $1,769,584 $929,496 $1,875,792 $7,652.241 $10,398,226 Direct Indirect Induced Total Em 10 ment 103.1 21.6 22.7 147.4 Ex enditures $17,000,000 $3,307,905 $3,080,029 $23,387,933 Construction expenditures in 2013 are shown in Table 7. The expansion of the company would result in an additional $3.0 million spent on construction. The direct economic impact is 18 new construction employees. Total Collier County employment would increase by 26 in 2013. Total labor income would increase by 1.4 million, value added would rise by $1.8 million, and overall expenditures in the Collier county would rise by 4.1 million in 2013. Table 7 2013 Construction Expenditures in Collier County Labor Value Employment Income Added Expenditures Direct 18.2 $982,431 $1,191,680 $3,000,000 Indirect 3.8 $203,936 $312,279 $583,748 Induced 4.0 $164,029 $331,022 $543,534 Total 26.0 $1.350,395 $1,834,981 $4,127,282 The company plans to spend additional construction expenditures of $1 0 million for renDvation and expansion in 2014, as shown in Table 8. The direct economic impact is 61 new cDnstruction employees with a labor income of $3.3 million and a value added to Collier County of $4.0 million. The overall econDmic impact for Collier County is larger with employment increasing by 87 jobs and labor income increasing by $4.5 million. The overall value added is $6.1 million higher and overall expenditures increase by $13.8 million. Table 8 2014 Construction Ex enditures in Collier Count Labor Value Income Added $3,274,769 $3,972,265 $679,787 $1,040,932 $546,762 $1,103,407 $4,501,318 $6,116,604 Direct Indirect Induced Total Em 10 ment 60.6 12.7 13.4 86.7 Ex enditures $10,000,000 $1,945,826 $1,811,782 $13,757.608 In addition, the company plans to invest $17 million in new manufacturing equipment that will make the existing and new employees more productive and SUPPDrt the 7lPage Packet Page -180- 6/28/2011 Item 10A planned expansion. Since the manufacturing equipment is being purchased outside of Collier County, no direct economic impacts are included. Sales and Property Tax Impacts The model provides estimates of the additional saies and property tax, as shown in Table 9. These are approximations based on historical information obtained in 2008. The taxable property values are assumed to have declined by 110 percent from 2008 to 2009 and by 12.2 percent from 2009 to 2010 based on information obtained from the Florida Department of Revenue. The estimates a5sume that taxable property values are unchanged for 2010 to 2011. Estimated Additional Taxes bv Year Year Sales tax Property Tax 2012 $750,334 $459,401 2013 $2,313241 $1.620,479 2014 $3,111.984 $2,145.548 2015 $3,665,226 $2,604,377 2016 $3,751.670 $2,657,303 Table 9 The gain in tax collection estimates provide part of the information necessary to complete a cost-benefit analysis. The increase in employees will increase the services needed from the county, which would be expected to increase county costs. Summary This study has forecast the economic impacts for Collier CDunty of an existing medical equipment and supplies manufacturing company expanding its operations and adding 600 employees by June 30, 2016. The overall employment impact due to additional business-to-business activity and the additional expenditures of the household incomes created will result in an overall increase in employment of 1.085 in Collier County by 2017. The value added, which is a measure of income generated in Collier County, has a present value over the five years from 2012 to 2016 of $278 million and the present value of the labor income generated between 2012 and 2016 is $190 million. These values are based on the direct creation of 600 new Collier County jobs at an average annual wage of $59,580 plus benefits worth an additional 19 percent resulting in an average annual total compensation of $73,746. The present value of the additional expenditures for 2012 to 2016 is $652 million 8 I '" - c. . c: ;:.,,;:,: Packet Page -181- 6/28/2011 Item 10A Appendix A IMPLAN Pro: An Economic Impact Analysis Model This study was completed using an established and accepted economic impact model, IMPLAN, that is currently in use by over a thousand licensed mDdel users in the United States including universities, government agencies, and private companies. The model is based on an understanding of inter-industry relationships and the work of Wassily Leontief. He developed the concept of multipliers from input-output tables and received the Nobel Prize in 1973 for his work. 3 The model was originally developed for the United States Department of Agriculture and in the late 1980s was refined and enhanced with the assistance of the University of Minnesota. The model includes a mathematical input-output (1-0) data set for Collier County that allows one to forecast the gains from a firm's expenditures and expansion on other Collier County businesses. The existing company and its employees will need various products and services leading to additional expenditures, jobs, value added, and labDr income. The value added includes employee compensation, proprietary income, other property type income, and indirect business taxes. Indirect business taxes consist of excise taxes, property taxes, fees, licenses, and sales taxes paid by businesses. The additional demand for goods and services in Collier County as a result of the expanding manufacturing firm will lead to additional business-to-business activity and the additional household incomes will increase business activity for household goods and services. 3 "User's, Analysis, and Date GUide," IMPLAN ProfessionaI2.0. Stillwater Minnesota. www.implan.com 91?age Packet Page -182- I- u.J Q 0 ::l c:Q u.J > I- Z u.J U UJ Z l- I- M Z M CO u.J 0 - 2: N I >- X "- '-'- UJ 0 ...J u.J > u.J 0 u 2: 0 z 0 u u.J EXHIBIT E . 0 0 0 0 0 0 0 0 c!C\~ 0 0 0 0 0 0 0 0 "'- 0 ..... M 0 0 M ..... ~ Lr, N co- .n- o' ~ N- ~ N .... N co en D'ii:2 ~ -.' .'/;. f-'-. w 0 0 0 c:;:: c:;:: 0 ~ 0 z 0 0 w u 0 0 :2 z 6 6 ~ ~ ~ ~ (/) u.f (/) w .~ " u.. '. fZ 0 0 0 0 c:;:: 0 0 0 0 I" 1'" . - a:l l- .. 0 z ..., W f-'- W a:: '.... (/) ~ ~ '" ~ ~ 0 0 '" ~ ::l M M ....J 0 0 a:: ::l '-0 '-O- W :2 i0 ~ ll... i= 0 (/) a:: >< ll... ~ 0 ~ M ~ 0 ~ g 0 M Z M 0 0 M <l: M M M en_ .. a:l ~ ;7;. ~ '" 0 ct . <l: 0 a:: a:l 0 r-- en 0 0 0 0 M Z 0 en en 0 0 '" '" m 0 '" en en 0 0 .....- a:l ~ C0 en en 0 LD .... 0 '" N '" ~ N it/> '" '" '" ..., w a:: u ~ . ~ f-'- ~ <f) 19 Z OJ ro ~ ~ <l: ~ L co 0 U u ~ - ~ '0 :J '" ~ <t OJ OJ OJ ll... OJ Q. ~ OJ :r: (j') Cl. c ll... ~ :::l OJ <l: ro ~ C <f) u 0 co co OJ U -' 0 L 0 "0 "0 C OJ ;:: > u > 2 co >- u . "0 C C :::l co ro 0 <t <t lJ.J u. CJ I cc. I- Packet Page -183- 6/28/2011 Item 10A ii ~ i !::cc !!! !I 8" ~ .Ii ~ 9 ~ ~ 1 ~ ~ l'l ~ ::f III i m '" ~ ;l ~ g ~ i:i " " " " " " " ~ ~ 0 0 " " Ii 0 ~ '" :Ji ~ ~ " " i ~ i!i " ~ ~ $ III ~ " " ~ ~ ~ i!i ro ~ ~ ~ 5i ~ ~ ;1; ~ ~ ~ ~ ; ~ ::: :l ~ ~ ;:I ~ ~ a '" ~ ::: . ~ ) Iii !'! :!; ~. ~ !! Ii! III 0 '" of ~ ~ ~ it Ii ~ 0 . ~ .. ~ ~ ;g ~ ~ " " ~ ~ ~ ~ of . "' 0 \!l ~ " ili " " 1 '" a ~ ~ !'! :I: " " " :z ~ ~. :: i' 0 ~ ! " " 0 " ~ ~ Bf '" ~ ~ ~!!l. ~~ n u !!l! ~""- :<I"" E1! <l~ S ~ ..~ ~:J. aa ~- j;; ill! ll" ~~ i1 "1 c . ~ .. " . p ~ .Ii :0 ;;; .Ii .li li l I i H :Ii . I.! ~ ~~ "~ ~ t II i ~ ~8 g ~ ~~ .. . cE ~~ I;!~ " . . - . 1 1 E~ ~ ~ E E I ~ ; ~ ~ i; i ~ f ~ 6:: e~'" " b";;; 5: .- i . - . . t ~ '''~ B~'l; 83.. " " " ; Il ! . l II i . ~ i R E~ . i !' i i lin l f ~ e .;: ~ -' . i 1 ~ t;_ c r-~ Ii . : ~ ~ ! tl . ~ ~~ ~ i Packet Page -184- i ~ ~ ~ 6/28/2011 Item 10A t:::.AHIt:S11 r i ~ j !S .i ~ 'U 'Ii ~ il. i - J:i -if iliI 11!ll tlH h!B 13-ofIl.j;! ~ .E III ~~!hj .l.~'~ ~ =- i! ~.2- ! l\l !to "',ji ;N~R.~.l!I: ~';~~!j l"S';:ll'1i ~ihH H~HH " . "5 l:!!l "'''' 1!-e 11Uu ~ i,sH>l j iUH ! ll~i!..c !~li"ai~ ii....ii....S:.!~ " i1. ~ ii g-- 1; iiiI'! !tIll'll 1::l!I".!lBI~ ...a:~~!1:~ ..: '00 tI ,to c: 8 ~ U E r~ iHnlH OM . . . . ,.s: '