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Agenda 05/13/2008 Item #16A11 Agenda Item No. 16A11 May 13, 2008 Page 1 of 4 EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners approve a second extension of the required time frame for fee payment assistance and job creation for Salazar Machine and Steel, Incorporated, an approved participant in the Fee Payment Assistance Program and the Job Creatiou Investment Program; direct staff to allocate $50,500 in funding for FY 2008 for this applicant; and specify this as the final time extension for meeting the program requirements OBJECTIVE: Recommendation that the Board of County Commissioners (Board) approve a second extension of the required time frame for fee payment assistance and job creation for Salazar Machine and Steel, Inc. (Salazar), an approved participant in the Fee Payment Assistance Program and the Job Creation Investment Program and specify this as the fmal time extension for meeting the program requirements, CONSIDERATIONS: On September 27,2005, the Board approved the application for Salazar to participate in the Fee Payment Assistance Program and the Job Creation Investment Program (Item 16A[12]) for the proposed expansion of their facility at the Florida Trade Port in ImmokaJee. As listed in the application, the construction of the building was scheduled for completion in December of 2006. Additionally, five of the required new jobs were to be created by December 31, 2006 with five more by each December 31, 2007 and December 31, 2008, for a total of fifteen new jobs. On June 12, 2007, the Board approved a time extension for the creation of the required jobs, which resulted in the requirement for five new jobs to be created by December 31, 2007 and five more by each December 31, 2008 and December 31, 2009 (Item lOA). The Board also granted an extension for the fee payment assistance based on an estimated building completion date of May 31, 2008. Staff has received correspondence (attached) from Mr. Pete Salazar III, owner of Salazar Machine and Steel, Inc requesting a second extension to complete the new building and create the required jobs. As stated in the correspondence, there have been unforeseen delays, primarily related to financing, however Mr. Salazar anticipates that the financing will be in place no later than June of 2008 and the building complete for occupancy by December 31, 2008. Therefore, based on this request, the required time frame for creation of the new jobs would be extended to five new jobs by December 31, 2008 and five more by each December 31, 2009 and December 31,2010, for a total of fifteen new jobs. If the Board elects to allow for the extension, staff recommends that the Board specify that this will be the final time extension granted for this project. If the building is not constructed and the required jobs are not created within the new time frame, the applicant will be removed from the Job Creation Investment Program and the Fee Payment Assistance Program. N D funding related to either Program has been provided to the applicant to date. Agenda Item No, 16A 11 May 13, 2008 Page 2 of 4 FISCAL IMPACT: Salazar qualified for $101,000 in Fee Payment Assistance Program funds and $45,000 in Job Creation Investment Program Funds based on the application approved by the Board on September 27,2005. During the discussion of Item 10D on April 22, 2008 the Board approved the eannark of the remaining budgeted incentive funds for the Arthrex Inc. expansion, less the pending and in process commitments for Fiscal Year 2008. The budget related to the Economic Incentive Programs for Fiscal Year 2008 is $1,147,100. If the Board elects to grant this request for extension, staff also recommends that the Board consider Salazar as "in process." Based on the timeline proposed in this extension, the upfront payment of Transportation Impact Fees (at Site Development Plan approval) may be due before the end of Fiscal Year 2008. Therefore, based on Fee Payment Assistance Funds approved in an amount not to exceed $101,000, staff recommends that $50,500 be identified to be funded in Fiscal Year 2008. The balance of the funds that Salazar may receive ($95,500) will be subject to the future availability of funding. Similarly, should Salazar fail to utilize the funds by the end of Fiscal Year 2008 the $50,500 will be subject to the availability of funding in Fiscal Year 2009. If the Board elects to identify funds for Salazar, the remaining balance of funding that was directed to be allocated to Arthrex Inc. still exceeds $1 million. GROWTH MANAGEMENT IMPACT: The economic incentive programs are consistent with Objective 3 of the Economic Element of the Collier County Growth 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 industries in order to diversifY the County's economic base." LEGAL CONSIDERATIONS: This request is completely at Board discretion. The Board is free to grant the request, reject the request, or modify the recommended action. RECOMMENDATION: Recommendation that the Board of County Commissioners approve a second extension of the required time frame for fee payment assistance and job creation for Salazar Machine and Steel, Inc., an approved participant in the Fee Payment Assistance Program and the Job Creation Investment Program; direct staff to allocate $50,500 in funding for FY 2008 for this applicant; and specifY this as the final time extension for meeting the program requirements. Prepared by: Amy Patterson, Impact Fee and Economic Development Manager Business Management and Budget Office, CDES Item Number: Item Summary: Meeting Date: Page I of I Agenda Item No. 16A 11 May 13, 2008 Page 3 of 4 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS 16A11 Recommendation that the Board of County Commissioners approve a second extension of the required time frame for fee payment assistance and job creation for Salazar Machine and Steel, Incorporated, an approved participant in the Fee Payment Assistance Program and the Job Creation Investment Program: direct staff to allocate $50,500 in funding for FY 2008 for this applicant; and specify this as the final time extension for meeting the program requirements. 5/13120089:00:00 AM Prepared By Amy Patterson Community Development & Environmental Services Impact Fee Manager Date Approved By Financial Admin. & Housing 41181200810:22:45 AM Judy Puig Community Development & Environmental Services Operations Analyst Community Development & Environmental Services Admin. Date Approved By 4123120082:17 PM Jeff Klatzkow County Attorney Assistant County Attorney Date County Attorney Office 412812008 1 :48 PM Approved By Garrett Mullee Community Development & Environmental Services Financial Operations Manager Date Financial Admin. & Housing 5111200812:47 PM Approved By Joseph K. Schmitt Community Development & Environmental Services Community Development & Environmental Services Adminstrator Date Community Development & Environmental Services Admin. 511120087:12 PM Approved By Mark Isackson County Manager's Office Budget Analyst Date Office of Management & Budget 512120089:17 AM Approved By James V. Mudd Board of County Commissioners County Manager Date County Manager's Office 51512008 3:52 PM file://C:\Agenda Test\Export\ 107 -Mav%20 13.%202008\ 16. %20CONSENT%20AGENDA \ 16... 517/2008 r SIlLR~R. 1/MJI/Ma. -\ aT.~" 111#. Agenda Item No. 16A11 May 13, 2008 Page 4 of 4 160 Airpark Blvd., #109 I Immokalee, FL 34142 I P: (239) 657-2325 I F: (239) 658-2513 March 26, 2008 Mrs. Amy Patterson Collier County Impact Fee Manager, Community Development Environmental Services 2800 Horseshoe Drive North Naples Fl34104 Re: Extension Mrs. Patterson, let me first begin by thanking you and your staff for all of your patience in regards to the construction of our new facility located at the Immokalee Regional Airport. However due to some setbacks our operations will not be occupying the new building by the previous deadline of May 31, 2008. This is primarily attributed to delays in financing. Our firm is fully committed to complete this ambitious endeavor and is determined to secure financing no later than June 30, 2008. This would result in the complete erection of our brand new steel building (projected) for December 31, 2008. We apologize for the delays, but as you may know setbacks and rescheduling are synonymous with construction projects. That aside, we would like to request an additional extension on the Fee Payment Assistance Program as well a~ extending the job creation time line by one year to December 31, 2008, 2009, and 2010. It is not the intention of our organization to inconvenience you or inhibit the growth of the airport. On the contrary, it is our goal to be part of that growth strategy with Immokalee Regional Airport and the rest of the community of Immokalee. We hope you will grant our request and we eagerly anticipate your decision. Please contact me if you have any questions or if you need any more information. Thank you again for your time and patience in this matter. Sinc~ ( I \ ~ )/l5~'~ Pete Salazar III Copy: Mrs. Joan R. Yasharian, EDC