Loading...
Agenda 03/25/2008 Item # 8B Agenda Item No. 8B March 25, 2008 Page 1 of9 EXECUTIVE SUMMARY Recommendation that the Board of County Commissioners consider adopting an Ordinance to establish a Job Retention Investment Program available to targeted, high wage local companies in order to preserve the existing targeted workforce and encourage the expansion of additional high wage jobs; the Ordinance has been prepared in accordance with the request by the Economic Development Council of Collier County and the prior direction of the Board of County Commissioners OBJECTIVE: That the Board of County Commissioners (Board) consider adopting an Ordinance to establish a Job Retention Investment Program available to targeted, high wage local companies in order to preserve the existing targeted workforce and encourage the expansion of additional high wage jobs. The Ordinance has been prepared in accordance with the request by the Economic Development Council of Collier County and the prior direction of the Board of County Commissioners. CONSIDERATIONS: On January 29, 2008, during the discussions related to item lOB, the Board directed the County Manager (or his designee) and the County Attorney to prepare an Ordinance to establish a program to provide incentives for the retention of existing high-wage jobs in Collier County in accordance with the request by the Economic Development Council (EDC) of Collier County. Based on the Board's direction and guidance from EDC staff, the County Attorney's Office and staff have developed an Ordinance establishing the Job Retention Investment Program. The following is an overview of the program eligibility criteria and other guidelines: · The company must have been legally operating in Collier County for a minimum of 2 years · The company must meet the requirements of and participate in the State of Florida Qualified Targeted Industry (QTI) Tax Refund Program which is available to new or expanding businesses in selected targeted industries that create at least 10 net new full-time equivalent jobs or if an expansion project, increase employment by at least 10 percent (whichever is greater) · The average wage of the retained jobs must be at least 115% of the average wage for Collier County · The company must retain a minimum of 5 jobs · 50% of the company's revenue must be generated from outside of Southwest Florida · Participation in the program is limited to the following industry clusters: Aviation and Aerospace, Health and Life Sciences, Computer Software and Services, Manufacturing or Wholesale Trade and Distribution · The company may be awarded $1,000 per existing job retained, payable over 3 years after the creation of the new jobs required under the QTI Program · Incentive awards are subject to the availability of funding Agenda Item No. 88 March 25, 2008 Page 2 of 9 Also included in this Ordinance, at the recommendation of the County Attorney's Office, is a provision that provides the express authority for the County to review and audit the performance of the participating company related to compliance with the terms of the Program and Agreement. The County Attorney has previously included the monitoring requirements in the executed Agreements related to the other economic incentive programs and has recommended that the language also be added to the governing provisions of the other programs during their next update. Retention of existing employers is critical to the overall economic diversification efforts of the community. In order to emphasize the importance of the adoption of this Job Retention Investment Program the following information was provided by the Economic Development Council in support of this program. o Stable businesses play vital roles in their communities. Locally owned businesses usually have a long-term commitment to their community. They relate to the community's lifestyle, and they have a vested interest in the community's quality oflife. o Existing businesses are major contributors to the community's economy and tax base. Cumulatively, they employ the greatest numbers and, as they grow and expand, they can generate up to 80 percent of the community's new jobs. o A Business Retention Program benefits everyone. When existing businesses thrive, so do their communities. o Support of existing businesses also demonstrates suppOli of job creation and additional community cash flow. o Supporting a Business Retention Program is important because existing businesses can relocate thus leaving a void in our community. Local businesses should not be taken for granted. o The Collier County Business Retention Program is designed to help provide sustainability of key, high wage business in our community. o Business Retention programs are low-risk, positive community outreach activities. A retention program and its related activities displays that our community is interested in the continued well-being of existing businesses and the people who run them. Through the Public/Private Partnership between the Economic Development Council of Collier County and the Collier County Board of Commissioners, the commitment to provide a comprehensive Business Retention Program which promotes interaction with local businesses and supports the goal of maintaining high wage employers in Collier County is displayed. FISCAL IMPACT: The fiscal impact of this Program is directly related to the number of jobs that are retained under the program at $1,000 per job. The budget for the local Economic Agenda Item No. 8B March 25, 2008 Page 3 of 9 Incentive Programs for Fiscal Year 2008 is $1,147,100. However, incentive payments related to the proposed program will be eligible for disbursement at the beginning of the fiscal year following the date the newly created jobs and the retained jobs are verified to be in place. Therefore, the first payments related to applicants for this program would be paid no sooner than Fiscal Year 2009. On January 29, 2008, the Board approved the application by Inovo, Incorporated for the State QTI Program, the local Job Creation Investment Program, the Advanced Broadband Infrastructure Investment Program and a request for $1,000 per job for 49 jobs being retained in Collier County, which is the basis for the request to establish this program. Based on the timeframe outlined in the application, the first payment of Job Retention funds would occur in Fiscal Year 2009, in the amount of $16,333, with subsequent payments in Fiscal Years 2010 and 2011, assuming that the company meets all of the criteria to participate in the program. The current local Economic Incentive Programs are subject to the availability of funding, and as proposed, the same restriction would apply to the Job Retention Investment Program. Additionally, the Code currently provides that the Economic Incentive Programs automatically sunset on October 1, 2008, unless otherwise extended by the Board. The EDC is requesting that a sunset date of October 1, 2013 be established for the Job Retention Investment Program as a request will be brought forward at a future regular meeting of the Board to extend the sunset date of the other incentive programs to October 1, 2013 as well. If the Board elects to implement this program staff will require direction on the maximum number of jobs that may be retained under this Program per fiscal year in order to accurately budget for the potential incentive awards. GROWTH MANAGEMENT IMPACT: This request is consistent with Objective 3 of the Economic Element of the Collier County Growth Management Plan which states: "Collier County will support programs 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: The Office of the County Attorney participated in the preparation of this proposed Ordinance, which is legally sufficient for Board consideration and approval. -JAK RECOMMENDATION: That the Board of County Commissioners consider adopting an Ordinance to establish a Job Retention Investment Program available to targeted, high wage local companies in order to preserve the existing targeted workforce and encourage the expansion of additional high wage jobs. The Ordinancc has been prepared in accordance with the request by the Economic Development Council of Collier County and the prior direction of the Board of County Commissioners. Prepared by: Amy Patterson, Impact Fee/Economic Development Manager Business Management and Budget Office, CDES Reviewed and Approved by: Tammie Nemecek, President & CEO Economic Development Council of Collier County Item Number: Item Summary: Meeting Date: Page lof2 Agenda Item No. 8B March 25, 2008 Page 4 of 9 COLLIER COUNTY BOARD OF COUNTY COMMISSIONERS 88 Recommendation that the Board of County Commissioners consider adopting an Ordinance to establish a Job Retention Investment Program available to targeted, high wage local companies in order to preserve the existing targeted workforce and encourage the expansion of additional high wage jobs; the Ordinance has been prepared In accordance with the request by the Economic Development Council of Collier County and the prior direction of the Board of County Commissioners. (Tammie Nemecek, Economic Development Council) 3/25/200890000 AM Prepared By Amy Patterson Community Development & Environmental Services Impact Fee Manager Date Financial Admin. & Housing 3/3/20083:01 :14 PM Approved By Judy Puig Community Development & Environmental Services Operations Analyst Community Development & Environmental Services Admin. Date 3/5/200812:20 PM Approved By Jeff Klatzkow County Attorney Assistant County Attorney Date County Attorney Office 3/12/20082:04 PM Approved By Garrett Mullee Community Development & Environmental Services Financial Operations Manager Date Financial Admin. & Housing 3/13/20083:59 PM Approved By Joseph K. Schmitt Community Development & Environmental Services Community Development & Environmental Services Adminstrator Date Community Development & Environmental Services Admin. 3/14/200812:46 PM Approved By OMS Coordinator Administrative Services Applications Analyst Date Information Technology 3/17/20087:39 AM Approved By John A. Y onkosky County Manager's Office Director of the Office of Management Date Office of Management & Budget 3/18/20089;30 AM Approved By James v. Mudd County Manager Date file://C:\Agenda Test\Export\ 1 03-March%2025, %202008\08. %20ADVER TlSED%20PUBL... 3/19/2008 Page 20f2 Agenda Item No. 88 March 25, 2008 Page 5 of 9 Board of County Commissioners County Manager's Office 3/18/20084:58 PM file:IIC:IAgendaTestIExportl 1 03_March%2025,%202008108.%20ADVERTISED%20PUBL... 3/19/2008 Agenda Item No. 88 March 25. 2008 Page6 of 9 ORDINANCE NO. 2008 - AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, ESTABLlSIDNG THE JOB RETENTION INVESTMENT PROGRAM, TO BE AVAILABLE TO TARGETED, HIGH. WAGE LOCAL COMPANIES IN ORDER TO PRESERVE THE EXISTING TARGETED WORKFORCE AND ENCOURAGE THE EXPANSION OF ADDITIONAL IDGH WAGE JOBS; PROVIDLl\'G FOR APPLICABILITY AND PURPOSE; PROVIDING FOR A MAXIMUM AWARD AMOUNT; PROVIDING FOR PROGRAM ELlGffiILITY CRITERIA; PROVIDING FOR INCLUSION IN THE CODE OF LAWS AND ORDINANCES; PROVIDING FOR AN EFFECTIVE DATE; AND PROVIDING FOR A TERMINATION DATE. WHEREAS, Collier County has historically depended on tourism, agriculture and construction as major components of its economic base, all ofwbich are susceptible to economic cycles and dovmturns in the economy; and WHEREAS, the Board of County Commissioners desires to promote and foster economic diversification through the creation and retention of high wage jobs in targeted industries; and WHEREAS, the creation of a Job Retention Investment Program will provide further incentives to encourage the retention of existing companies and employees and is critical to the overall economic diversification efforts of Collier County; and WHEREAS, the.adoption of a Job Retention Investment Program serves a valid public purpose. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF COLLIER COUNTY, FLORIDA, that: SECTION ONE. A new Article VI , Sections 49-60 through 49-64 of Chapter 49 of the Collier County Code of Laws and Ordinances is hereby created to read as follows: ARTICLE VI. JOB RETENTION INVESTMENT PROGRAM Section 49-60. Anolicabilitv This article aoolies to the unincornorated area of Collier County. Florida. and to all incoroorated areas of Collier County to the IZreatest extent authorized bv Article VIII. Section un of the Florida Constitution as it may be implemented bv an interlZ:overnmental or interlocal asrreement. Section 49.61. Purnosc The ourooses of this article are to: (1) orovide a oerfonnance~based oroQTam offerin!! financial incentives to elilrible tar!!eted industries in Collier County to mitilZate the effects of escalating: relocation and exuansion costs: (2) urovide for the economic wellbeinll of Collier Page 1 of4 Underlined text is added; str\lel~ tar6Ugft text is deleted. Agenda Item No. 86 March 25, 2008 Page 7 of 9 County residents bv oroviding: hillh-waQe emnlovment onoortunities in Collier County: and (3) encouraae investment o'Ooortunities for the exnaD.sion of existinJ.! businesses. thus increasinlZ and diversifvimz the County's tax base. Section 49-62. Proe:ram Eli2'ibilitv Criteria fa) To be considered elilZible under this Prol!I'am a comnanv must meet all of the fol1owinl! criteria: 1. The comnanv must have been ooeratina in Collier Count\! for a minimum of two (2) years and at all times be in full comnliance with all applicable laws and rellUlations: 2. Participation in this ProQ1"am is limited to the followiml industrv clusters: A viatioa and Aerospace. Health and Life Sciences. Comouter Software and Services. Manufacturimr and Wholesale Trade and Distribution: 3. The comoanv must meet the criteria and narticinate in the State of Florida ~ualified Targeted Industrv rom Tax Refund Program as set forth bv Section 288.106. Florida Statutes; 4. The averalle walle of the retained lobs must be at least 115% of the averalle wal!e for Collier County: 5. The comnanv must retain a minimum of five (5) iobs: and 6 A minimum of 50% of the company's revenue must be llenerated from outside of Southwest Florida (Sarasota. Lee. Charlotte. Glades. Hendry and Collier County). Section 49-63. Job Retention Investment Prolmlm. (a) General Reauirements. Pursuant to the orovisions set forth in this section. the County hereby establishes a Job Retention Investment PrOi!l"arn to orovide incentives to retain snecifled existinll lobs in Collier County. (b) Armlication Process. Any entity seekine: elie:ibility and payment throullh the Job Retention Investment Prmrrarn will file with the County Mana1!er an apolication for the Prolrr3l11 after receivinll the aonroval of the Economic Develonment Council of Collier County as an elilrible oarticinant in the ProirnUIl. The aeolication must contain the followinl!: 1. The name and address of the business owner: 2: The comolete address and lel!al descriotion of the site where the business is located. or the comnlete address and lellal descriotion of the erooosed site if the business is relocatinl!: 3. The tyne of business beiDlz monosed usinl! Standard Industrial Classification (SIC) or North American Industrial Classification System (NArCS): 4. The number of full-time iobs beinl! created: 5. The number of full-time lobs beimz. retained; 6. The averal!e Wal!e of those lobs created and retained: Page 2 of 4 Underlined text is added; st'niek 1:hrsldga text is deleted. Agenda Item No. 8B March 25, 2008 Page 8 of 9 7. The amount of time that the existim! business has onerated in Collier County: and 8, The date (month and year) when the new iobs will be in nlace. Section 49-64. Imnlementation (a) Under this Job Retention Investment Prorrram the elilZible COIDnanv may be awarded $1.000 per existing iob retained. with a minimum of five (5) existing iobs to be retained. The comnanv must meet the criteria and narticinate in the State of Florida ~ualified Tan!eted Industrv (OTD tax incentive nroeram. (b) The elil!ible comoanv under the Job Retention Investment Protrram will enter into a Job Retention Allreement with Collier County. which shall be nreoared bv the County Attorney's Office consistent with this Article. An annual review and audit of oerformance under such A~eement shall be nerfonned bv the County Manal!er or his desilZllee to determine whether there has been !load faith comnliance with the tenns of the Alrreement. Emolover shalllrive the County auditor full access to its business records and business uremises as reauired to certify the retained and created iobs. If the County Manarrer or his desirnee fInds. on the basis of substantial comnetent evidence. that there has been a failure to comnlv with the terms of anv such Aereement. the A2Teement may be revoked or unilaterally modified bv the County. Emnlover shall be 2:iven 10 business davs Drior written notice of any review and audit. In addition to an annual audit. within 10 business days from the County's written reauest. the Emulover will urovide the County \\lith all reouested documentation reauired to verify comoliance with the terms of the Ordinance or anv Aereement. (c) Job Retention Investment ProQ'I'am funds will be paid. based on the number of exist:in2 iobs retained. in eaual amounts over a three vear time neriod. Unoo creation of the new iobs as rcouired bv the State of Florida Oualified Tarlleted Industrv (OIn tax incentive OTOI!T3I11. the comnanv may submit a reauest to the County ManB.2:er for navment of Job Retention Investment PrOlmUD funds alone with documentation related to the retained iobs, Such documentation shall be verified bv the County orior to the release of funds. Anv award under this nrOlZTam is subiect to the availability of fundimz. (d) In the event that the comnanv fails to comnlv with the terms of the PTOlZram. includinlZ failure to aualifv or maintain aualification for the State of Florida ~ualified Tanreted Industrv (Om tax incentive DTOlZ1'Bm. or any other default occurs. the default must be cured within thirtY (30) davs from written notice beinll provided to the owner. The Board is entitled to recover all fees. costs. includinlZ attornev's fees and costs. incurred bv the County in enforcin12 the Al!Teement Dlus interest at the then maximum statutorY rate for final iudlZroents. calculated on a calendar dav basis until oaid. (e) The orovisions of this Article \ViII exoire and be void on October 1. 2013 unless continued bv a vote of the Board of County Commissioners nrior to this date. Page 3 of 4 Underlined text is added; strW;:>,k threagh text is deleted. Agenda Item No. 86 March 25, 2008 Page 9 of 9 SECTION TWO. CONFLICT AND SEVERABILITY. In the event this Ordinance conflicts with any other Ordinance of Collier County Of any other applicable law, the more restrictive shall apply. If any phrase or portion of this Ordinance is held invalid or unconstitutional by any court of competeDt jurisdiction, such portion shall be deemed a separate. distinct and independent provision and such holding shall not affect the validity Qf the remaining portions. SECTION THREE. INCLUSION IN THE CODE OF LAWS AND ORDINANCES. The provisions of this Ordinance shall be made a part of the Code of Laws and Ordinances of Comer County, Florida. The sections of the Ordinances may be re-numbered or fe-lettered to accomplish such, and the word ';ordinance" may be changed to "section," "article," or any other appropriate word. SECTION FOUR: EFFECTIVE DATE. This Ordinance shall become effective upon filing with the Florida Department of State. PASSED AND DULY ADOPTED by majority vote of the Board of Coonty Commissioners of Collier County, Florida, this _ day of ,2008. ATTEST: DW1GHT E. BROCK, CLERK BOARD OF COUNTY COMMISSIONERS COLLIER COUNTY. FLORIDA By: . Deputy Clerk By: TOM HENNING, CHAIRMAN Page 4 of 4 Underlined text is added; SffiiEk tflr8l.igR text is deleted.