Agenda 01/29/2008 Item #10B
Agenda Item No. 10B
January 29, 2008
Page 1 of 17
EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners approve the application by Inovo,
Incorporated for the Job Creation Investment Program and the Advanced Broadband
Infrastructure Investment Program and provide direction on the request by the Economic
Development Council of Collier County related to the payment of an additional $1,000 per job
for 49 existing jobs to be retained in Collier County and tht: development of a Job Retention
Program Ordinance for future consideration by the Board of County Commissioners
OBJECTIVE: That the Board of County Commissioners approve the application by Inovo,
Incorporated (Inovo) for the Job Creation Investment Program and the Advanced Broadband
Infrastructure Investment Program and provide direction on the request by the Economic Development
Council of Collier County (EDC) related to the payment of an additional $1,000 per job for 49 existing
jobs to be retained in Collier County and the development of a Job Retention Program Ordinance for
future consideration by the Board of County Commissioners.
CONSIDERATIONS: On November 18, 2003, the Board of County Commissioners (Board) adopted
Ordinance No. 2003-59, which is Article V of Chapter 49 of the Collier County Code of Laws and
Ordinances (Code) thereby establishing the Advanced Broadband Infrastructure Investment Program,
and Ordinance No. 2003-60, which is Article III of Chapter 49 of the Code, which established the Job
Creation Investment Program. These programs are available to targeted high-wage companies that
desire to relocate or expand within specified areas of Collier County and are designed to reduce the
economic effects of relocation and/or expansion costs. The Programs have specific eligibility
requirements including the number of full-time jobs to be created and retained, the average wage of the
jobs, timing of the jobs being in place and the type of business being proposed.
On January 14, 2008, Inovo submitted an application to be considered for the Advanced Broadband
Infrastructure Investment Program and the Job Creation Investment Program. The project invo Ives the
acquisition of a California-based medical device company and thereby the relocation of 32 new jobs to
Collier County.
The following is a deseription of Inovo's current business as well as that of the business they will be
acquiring, as provided in their EDC incentive application package:
Inovo, Inc. develops, produces and markets respiratory care devices designed to improve the
efficiency of oxygen delivery systems for home health care and hospital treatment.
Inovo has signed a definitive agreement to acquire substantially all of the assets of Chad
Therapeutics. Inc.. based in Chatsworth, CA. Chad is the most widely recognized name in
oxygen conserving device industry...
\
Inovo proposes to create thirty-two (32) new jobs in Collier County, by September I, 2008, at an
average wage of $58,187, which is 150% of the 2006 Collier County average wage. Inovo is also
requesting to participate in the State of Florida's Qualified Target Industry (QTI) Tax Refund Program
which is a program that provides incentives for job creation and requires a $25,600 local match by
Collier County. Inovo's request to participate in the QTI Program is being placed on the same agenda
Agenda Item No. 10B
January 29, 2008
Page 2 of 17
date as this request under a separate agenda item. Based on Inovo's commitment to create 32 jobs, the
company is eligible for $32,000 in funding to be paid equally over three years after the jobs have been
created and verified.
Inovo has provided information regarding the categories and approximate salaries of the proposed new
employees in their EDC incentive application package as follows:
Category Annualized Wage Percentage of Employees
Management $83,000 34%
Research and Development $68,000 16%
Admin! AccountinglLegal $53,000 5%
Production $30,000 45%
In addition to the wage information above, Inovo has also provided information related to the benefits
provided to employees. The annualized average value of the benefits for each new job is
approximately $9,000. The henefit package includes the following: health insurance, 40] (k)
contributions, vacation and sick leave, and Workman's Compensation.
[novo has also requested to participate in the Advanced Broadband Infrastructure Investment Program.
The program is available to local companies either constructing a new building or renovating an
existing non-residential building and upgrading it to be a "smart building", facilitating the installation
of advanced broadband technology. The applicant has requested $25,000 of incentive funds, to he
paid in equal amounts of no more than $8,400 per year, over three years. Following the installation of
the system, the participating company may request the first of the authorized incentive payments. The
incentive award does not provide repayment for monthly service or maintenance and may not exceed
the actual cost of the installation or upgrade, or $25,000, whichever is less.
In addition to the local incentives discussed above, the Economic Development Council of Collier
County has requested that the Board of County Commissioners also provide $1,000 for each of the 49
existing jobs being retained for a total of $49,000. This request is in addition to the $32,000 in Job
Creation Investment funds, $25,000 in Advanced Broadband Infrastructure Investment funds and the
$25,600 QTI loeal mateh. The basis for this request is to retain Inovo's existing 49 jobs in Collier
County as well as facilitate the reloeation of 32 jobs from California to Collier County. Without the
incentives, the company is eonsidering moving their entire operation to Lee County, North Carolina or
California.
Collier County's economic incentive package does not currently include a program to provide
incentives for the retention of existing jobs. Therefore, staff is seeking direction to be provided to the
County Manager (or his designee) and the County Attorney related to: I) the EDC request for
additional funding for the retention of existing jobs and 2) the development of a Job Retention Program
Ordinance in order to establish and provide for the requirements and administration of the new
program. The Ordinance would be presented to the Board at a future regular meeting, as an Advertised
Public Hearing, for consideration.
Agenda Item No. 10B
January 29, 2008
Page 3 of 17
FISCAL IMPACT:
Broadband Infrastructure: The applieant has requested $25,000 of incentive funds, to be
paid in equal amounts of no more than $8,400 per year over three years. Following the
installation of the system, the participating company may request the first of the authorized
incentive payments. The company must submit copies of the invoices detailing the cost of the
installation along with the request. The incentive award does not provide repayment for
monthly service or maintenance and may not exceed the' actual cost of the installation or
upgrade, or $25,000, whichever is less. Additionally, the participating company must pay their
annual ad valorem property taxes to the County, in full, prior to a request for payment. This
incentive award will be funded by General Fund revenue that was specifically budgeted for the
adopted Broadband Infrastructure Investment Program.
Job Creation: The applicant is eligible for $1,000 per newly created job, for a total of
$32,000, to be paid equally over 3 years after the jobs are in place. All jobs will be created by
September I, 2008. Following creation of the specified jobs, the company may submit a
request for funds to the County Manager (or his designee). The Job Creation payments will be
paid at the beginning of the fiscal year following the date the newly created jobs are verified to
be in place. This request will require the allocation of $10,666.66 per year, for three years,
beginning in FY 09.
The current balance remaining for the Economic Incentive Programs for Fiscal Year 2008 is
$1,104,950, however, in accordance with the Code provisions, incentive payments are disbursed at the
beginning of the fiscal year following the date the newly created jobs are verified to be in place.
Therefore, the first payments related to these requests will be paid no sooner than Fiscal Year 2009, and
are subject to I) the availability of annual program funding; 2) verification of job creation and
fulfillment by citizens or legal residents of the United States; and 3) verification of valid costs related
to the installation of the broadband infrastructure related to the Broadband Infrastructure Investment
Program.
The Business Management and Budget Office of Community Development and Environmental
Services Division has been assigned responsibility for job verification as well as monitoring program
compliance.
The anticipated capital investment related to this project is estimated to be $750,000 for equipment and
potential building renovations. In addition, the creation of the 32 new jobs generates.a local payroll of
approximately $1.86 million annually.
Related to the request by the EDC for additional funds related to job retention, the eurrent Code
provisions provide economic incentives for job creation as follows:
(
49-34. Implementation.
(a) . . . If a company also participates in the State of Florida Qualified Targeted Industry (QTI)
tax incentive program, and is approved to participate in this job creation investment program,
the company will be eligible 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.
Agenda Item No.1 OB
January 29, 2008
Page 4 of 17
The Job Creation Investment Program is available for the creation of new, full-time jobs and does not
( provide incentives for the retention of existing jobs. This request constitutes an additional $49,000
incentives award, in addition to the $82,600 in incentives addressed above (Job Creation, Broadband,
and QTI). To date, Collier County has not provided additional incentives to retain existing jobs.
If the Board elects to provide the additional $49,000 in funding, the total incentive award related to
jobs will increase from $32,000 to $81,000. As discussed above, Collier County's economic incentive
package does not currently include a program to provide incentives for the retention of existing jobs.
Therefore, if the Board desires to provide the requested $49,000 an Ordinance should be prepared to
develop a Job Retention Program prior to the release of any funding.
Based on the final direction of the Board, staff and the County Attorney's Office will prepare the Job
Creation Investment Program Agreement and the Advanced Broadband Infrastructure Investment
Program Agreement for the Board's consideration and approval at a future regular meeting of the
Board of County Commissioners. The agreement will also be signed by the designated corporate
officer of Inovo and will be recorded in the Official Records of Collier County.
If directed to proceed with the development of a Job Retention Program Ordinance staff and tbe
County Attorney's Office will also develop a Job Retention Program Agreement.
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 application by Inovo for the Job Creation Investment Program
and the Advanced Broadband Infrastructure Investment Program is legally sufficient for Board
Consideration and approval.
Note: Inovo is requesting through the EDC an additional $1,000 per job for 49 existing jobs in Collier
County, as a "job retention" incentive, and have stated that they are considering relocating to Lee
County or beyond. If the Board wishes to create this additional funding, it is recommended by this
Office that, with direction by this Board, staff prepares a draft "Job Retention Program Ordinance" for
the Board's future consideration and approval prior to the release of any supplemental funding related
to 'job retention." -JAK
RECOMMENDATION: That the Board of County Commissioners approve the, application by
Inovo, Incorporated for the Job Creation Investment Program and the Advanced Broadband
Infrastructure Investment Program and provide direction regarding the request by the Economic
Development Council of Collier County related to the payment of an additional $1,000 per job for 49
existing jobs to be retained in Collier County and the development of a Job Retention Program
Ordinance for future consideration by the Board of County Commissioners.
Prepared by: Amy Patterson, Impact Fee/Economic Development Manager
Business Management and Budget Office, CDES
Item Number:
Item Summary:
Meeting Date:
Page I of I
Agenda Item No. 10B
January 29, 2008
Page 5 of 17
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
10B
This Item to be heard at 2:30 p_m Recommendation that the Board of County
Commissioners approve the application by lnovQ, Incorporated for the Job Creation
Investment Program and the Advanced Broadband Infrastructure Investment Program and
provide direction on the request by the Economic Development Council of Collier County
related to the payment of an additional $1,000 per job for 49 eXisting Jobs to be retained In
Collier County and the development of a Job Retention Program Ordinance for future
consideration by the Board of County Commissioners (Amy Patterson, Impact FeefEDC
Manager, Busmess Management & Budget Department COES)
-r/29/2008 90000 l\M
Prepared By
Amy Patterson
Community Development &
Environmental Services
Impact Fee Manager
Date
Financial Admin. & Housing
1f16/2008 9:56:34 ~\M
A pproved By
\
Judy PUlg
Community Development &
Environmental Services
Operations ,Analyst
Community Development &
Environmental Services Admin.
Date
1/16/200811 :14 AM
Approved By
Joseph K. Schmitt
Community Development &
Environmental Services
Community Development &
Environmental Services Admlnstrator
Date
Community Development &
Environmental Services Admin.
1/16/20083:09 PM
Approved By
Jeff Klatzkow
County Attorney
Assistant County Attorney
Date
County Attorney Office
1/16/20084:01 PM
Approved By
OMS Coordinator
County Manager's Office
OMS Coordinator
Date
Office of Management & Budget
1/17/20084:13 PM
Approved By
Mark Isackson
County Manager's Office
Budget Analyst
Date
Office of Management & Budget
1/18/20089:37 AM
Approved By
\
James V, Mudd
Board of County
Commissioners
County Manager
Date
County Manager's Office
1/22/20089:47 AM
.. file://C:\Agenda Test\Export\99-Januarv%2029 .'JIo202008\ I O. %20COI JNTY%?OMAN A GP....
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Agenda Item No.1 06
tnti:9. 008
.., 17
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ECONOMIC
DEVELOPMENT
COUNCIL
rlj'CQ/lier (:{)unty, F!flrida
Growing Great Idea!
Economic Stimulus Program Recommendation Form
for
Inovo Inc
Name of Business
1. Economic Stimulus Programs:
;>([] Broadband Infrastructure Investment
;>([] Fast Track Permitting
D Fee Payment Assistance
;>([] Job Creation
D Property Tax Stimulus
;>([] Local Match for aTI
2. Collier County location:
2S. Western Collier County- west of 951
D Eastern Collier County - east of 951
D Immokalee Enterprise Community! Enterprise Zone D Everglades City Enterprise Zone
3. Project qualifications:
Number of current Collier County employees:
Number of new jobs resulting from project
Total retained and new jobs:
49
32
81
Avg. Wage:
Avg. Wage:
Avg. Wage:
$ 44,684.00
$ 58,187.00
$ 50,006.66
Agenda Item No.1 08
January 29, 2008
Page 7 of 17
FY07/08 FY08/09 FY09/10 FY10/11 FY11/12 Total
Job Creation
Phase I $10,667.00 $10,667.00 $10,666.00 $32,000.00
Job Retention"
Phase 1 $16,333.00 $16,333.00 $16,334.00 $49,000.00
QTI Local Match
Phase I $6,400.00 $6,400.00 $6,400.00 $6,400.00 $25,600.00
QTI State Match
Phase I $25,600.00 $25,600.00 $25,600.00 $25,600.00 $102,400.00
Broadband
$8,300.00 $8,300.00 $8,400.00 $25,000.00
Total $8,300.00 $67,300.00 $67,400.00 $59,000.00 $32,000.00 $234,000.00
'Request by EDC for retention of existing jobs.
5. Economic Impact Multipliers:
NAICS Code: _339112- Surgical and Medical Instrument Manufacturing
SIC Code: 3841- Surgical and Medical Instrument and Apparatus
Earnings Multiplier: __1.5671
Employment Multiplier: _17920~______._______
Economic Development Council of Collier Countv Recommendation
Prepared by:
Krist! Bartlett
. (Print Name)
/~'~
(Signature)
I f I s;/U6"
Date
Approved:
~~'
mie Nemec ,President
4sJo~
Date
Effective 10107
Page 2 of 2
Agenda Item No.1 08
January 29, 2008
Page 8 of 17
GENERAL PROJECT
OVERVIEW
Inovo Inc.
_______ _m_._.__~__~_"__
Name of Business
_____ B.~!()cation IExpansion project____~_
Project Title or Code Name (1-5 word description)
-"~----
--~--_._--_._--_._--
FOR EDC USE ONLY
Date Received
Date Revised
Date Completed
2008.01
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
ECONO!\1IC
[)EVEIDPMENT
COUNCIL
;) f ~,I/i(;r ("{iU!l1I. flu:'.!"
Growing Great Idea!
3050 North Horseshoe Drive, Suite 120
Naples, FL 34104
Phone: 239.263.8989
Fax: 239-263-6021
:-1~.~~t~ <:ipL~:::? fjolls.JCi.!&!I!
Effective 10/07
Page 1 of 10
Client Approved \./}~f'- (initjals)
GENERAL PROJECT OVERVIEW
Agenda Item No. 108
January 29, 2008
Page 9 of 17
1. BUSINESS INFORMATION
A. Name of Business Unit: Inovo Inc.
B. Mailing Address: 2975 S. Horseshoe Drive
Street Address
Naples FL
c~ S~~
C. Name of Parent Company: Inovo Acquisition, I.LC
D. Primary Business Unit Contact: Mike MulroL_~._.___..._~.
Title: Vice President
._,__~._~__'" __.~.__.._~__m_..""'_""" _..~
Mailing Address: 2975 S. Horseshoe Drive
34101
Zip Code
S;reet Address
Naples.
City
FL
'-''-- State---
34101
Zip Code
Telephone: 239.643.6577
Email: rT1rTlulroy@inovoinc:.com
Fax: 239.643.6530
Website: www.lnovoinc.com
E. Business Unit's Federal Employer Identification Number:
59-3442153
F. Business Unit's Unemployment Compensation Number:
G. Business Unit's Florida Sales Tax Registration Number:
H. Collier County Business Tax Receipt Number:
I. Is the business unit minority owned?
Yes 0 No [S] If yes, explain:
J. What is the business unit's tax year (ex: Jan 1 to Dec 31): Jan. 1- Dec. 31
1618089
21-8012128936-7
.--.,-
031977
2. PROJECT OVERVIEW
A. Which of the following best describes this business unit:
o New business unit to Florida
[S] New business unit to Collier County
x Existing Collier County business creating and 1 or retaining jobs
If an expansion, how many jobs are currently in the expanding business unit? 49
B. How many individuals are employed at all Florida Locations? 49
C. How many individuals are employed at all Collier County
locations? 49
D. Are any jobs being transferred from other Florida locations?
Yes 0 No C8J If yes, how many jobs and from where?
E. Give a full description of this project, including the primary business activities
Effective 10/07
Page 2 of 10
/1
Client APproved_,~~___ (initials)
GENERAL PROJECT OVERVIEW
Agenda Item No.1 DB
January 29, 2008
Page 10 of 17
1 functions:
Inovo Inc. develops, produces and markets respiratory care devices designed to
improve the efficiency of oxygen delivery systems for home health care and hospital
treatment. Inovo manufactures all of its products in an integrated CNC machining
and assembly operation. Inovo's machinery includes multi-axis machining centers
combined with the latest equipment for testing and quality control. We recently
introduced a new product; Inovo AccuPulse. It is lightweight and compact unit
features the most conserving and continuous sottings in the industry and is
i"8commended by the FDA.
inovo has signed a definitive agreement to acquire substantially all of the assets of
Chad Therapeutics, Inc, based In Chatsworth, CA. Chad is the most widely
recognized name in oxygen conserving device industry and the combined
companies will make up roughly 50% market share. The acquisition will greatly
enhance Inovo's product offerings, intellectual property portfolio, and marketing
(~_~abiliti,"-~_ Post.acgulsiti()rlJ~\!<3n.LJe~ will be !ouatJ.IY.~~\;\fith the aC9.uislti()Il.:..___
Surgical and fv1edicallnstrument
F. What is the project's Targeted Industry(ies): Manufactllri.l:l.L_____
G. Break down the project's jlrimary function(s) and the corresponding wages:
~usiness Unit ActiViti~S ! NAICS Project ' Annualized!
Code/SIC Code Function Wage ($)
-- - (Total- 100"\)
Manaqement 339112 34~~ $83,000.
Research and Development _.
339112 16% $68,000.
Admin/ Accounting/Legal 339112 5% $53,000.
Production 339112 45% $30,000.
H. What is the project's proposed location address:
2975 Horseshoe Drive South Suite 600
Street Address
Naples FL 34104
Oty State Zip COd8
What is the project's current location address (if different):
21622 Plummer Street
Slreet Address
Chatsworth CA 91311
City Stale Zip Code
I. Is the project location within a current or proposed Brownfield site / area?
Yes 0 No [g] If yes, attach a copy of lhe official documont designating the Brownfield area.
Is the project location in an Enterprise Zone?
Yes 0 No ~ If yes, which zone?
J. Which of the following describes the applicant's operations (select all that apply):
o Multi-state business enterprise
X Multinational business enterprise
o Florida business enterprise
K. Which of the following describes this business unit (select all that apply):
EHective 10/07
Page 3 of 10
C. .-..,~/' ,-
Ilent Approved -.lL/H'!
I '
(initials)
GENERAL PROJECT OVERVIEW
Agenda Item No.1 OB
January 29, 2008
Page 11 of 17
o Regional headquarters office
x National headquarters office
x International headquarters office
o This is not a dedicated headquarters office
L. 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: Our technology will be sold domestically and
overseas.
Effective 10/07
Page 4 of 10
/1
Client Approved ,--=-_ (initials)
GENERAL PROJECT OVERVIEW
Agenda Item No.1 OB
January 29, 2008
Page 12 of 17
3. JOB AND WAGE OVERVIEW
A. How many jobs are expected to be created as part of this project? 32 ____
B. If an existing business unit, how many jobs are expected to be
retained as part of this project? (jobs in jeopardy of leaving Collier
County should only be included here: these jobs are not eligible for all) 49
C. What is the annualized average wage for existinQ Collier County
employees indicated in 3b? S44,6~4.0~ ".
D. What is the anticipated annualized average wage (excluding
benefits) of the lli!Y!! to Collier County jobs created as part of this
project? (Cash payments to the empioyees such as penormance bonuses
3nd overtime shouid be included I $58,157.00
---^_...__."._~._-
E. What is the annualized average value of benefits associated with
each new job created as part of this project? $~,000.09__
F. What benefits are included in this value? (healtl11r1SlIrance, 401(1\) contributions,
vacation and sick leave. etc.) Health insurance, work.man's compensation. vacation. and sick
ieave.
4. CAPITAL INVESTMENT OVERVIEW
A. Describe the capital inves1ment in real and personal property (Examples:
construction of new facility; remodeling of lacility; upgrading, replacing, or buying new
equipment. Do not include the value of land purchased for construction ot a new building):
Purchasing new equipment and space renovations approximately $775,000. __
B. Will this facility be:
X Leased space with renovations or build out
o Land purchase and construction of a new building
o Purchase of existing building(s) with renovations
o Addition to existing building(s) (already owned)
o 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: (attach separate schedule if investment
,
will be made over more than three vears'
Year 1 Year 2 Year 3
Land $ $ $
Construction 1 Renovations $100,000.00 $ $
Manufacturinq Equipment $500,000.00 $ $
R&D Eauioment $100,000.00 $50,000.00 $25,000.00
Other Equipment (computer $ $ $
eauioment, office furniture, el~. \
Total Capital Investment $700,000.00 $50,000.00 $25,000.00
D. What is the estimated square footage of the new or
expanded facility?
30,000 sq. ft.
Effective 10/07
Page 5 of 10
/11/J-
Client Approved -----,____
_ (initials)
GENERAL PROJECT OVERVIEW
Agenda Item No. 108
January 29, 2008
Page 13 of 17
E. When is the final location decision anticipated (date)?
F. What is the anticipated date construction will begin?
G. What is the anticipated date operations will commence?
February 2008
February 2008
May 2008
5. COMPETITIVE LANDSCAPE
A. What role will the incentilfe(s) play in the business unit's decision to locate,
expand, or remain in Collier County?
Inovo would iike to continue on in its role as a significant contributor and employer
to Collier County. As we will be acquiring a company that is currently based in
California, the costs associated with that move are significant. The assistance
provided by incentives is a necessary component for us to make the best decision
for the business, our employees and our investors. The incentives will also allow us
to make a greater capital investment, integrate the two businesses and put the new
jobs in place more quickly. We are considering two other communities and incentive
arelJeing offered to us to I.~oca!(';._____.._________ .. _._.___._.._ _ _..____
-------~--------_._--"---"'_._.,----"---~-_... _..-_.._-------_._._-,----,-~-~------_._--
B, What other cities, states, or countries are being considered for this project?
We are considering relocating/consolidating the entire business to a tocation in
California or I~orth Carolina.
,
C. What advantages or incentives offered by these locations do you consider
important in your decision?
Our decision is whether we move our new acquisition here to Collier County
Florida, or move it all to California or to North Carolina. Financial incentives are
needed to help to cover the costs of moving the business, down-time associated
with that move and consolidating our existing business and our new business unit
under one roof. They would also assist us in getting up and running and creating
the new jobs.
We 11ave considered the locations and find benefits in each location;
California offers more available real estate, a significant pool of medical device
engineering resources and other highly skilled talent and available workforce.
Disadvantage is that cost of living and real estate is high.
North Carolina offers and experienced and available engineering talent pool,
skilled labor, and while offering lower overall costs 01 doing business, lower cost of
living and real estate. No notable disadvantages.
Both will provide tax credits for creating jobs, purchasing equipment. power and
offer paid employee training.
At this point, we would like to consolidate the operation and expand in Florida as
we believe it to be the best option to attract new employees, with the advantage of
no personal tax and provide a location where customers would like to visit.
Disadvantages cost of living and real estate and some workforce issues, but those
could be addresses. Without incentives will consider the relocating the new and
existing business outside of Florida.
Effective 10/07
Page 6 of 10
.....
Client Approved I'/Y}f ____ (initials)
GENERAL PROJECT OVERVIEW
Agenda Item No.1 08
January 29, 2008
Page 14 of 17
D. indicate any additional internal or external competitive issues impacting this
project's location decision?
Offers from the all of the communities will be considered and the most compelling
offer is the one that we will choose.
6. ECONOMIC IMPACT AND CORPORA TE 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. (1000
words or more)'add sheets If necessary
Inovo Ine has been in Collier County since 1996. We are a leading medical device
manufacturer of oxygen regulators and conseNing devices seNing home
healthcare, EMS and Hospital marl<ets. To grow our business we found a
company that will compliment and enhance us, and we are working to diligently
purchase them. We will be making ollr decision very soon. This California based
medical device company was established over twenty years ago and has a global
presence. They have been In the business of developing, producing and marketing
respiratory care devices designed to Improve the efficiency of oxygen delivery
systems for home health care and hospital treatment 01 patients suflering from
pulmonary diseases, such as COPO. With this acquisition, Inovo Inc. will not only
be creating jobs, but will make making future capital investments in Collier County.
We expect to create additional 32 jobs that will pay $58,157 which is 150% 01
Collier County's current average wage of $38.771. Currently, we empioy 49
people. This acquisition will increase our employee head count by an additional
32, bringing the total to 81 employees. These jobs require skilled and highly skilled
employees. Incentives are a critical part 01 our decision as to whether or not to
move these new jobs here, keep them in California, or move the entire operation to
North Carolina. Our expansion will result in a positive impact for the community
we choose to locate in. The annual economic impact of those 32 proposed jobs
for Coliier County is over $6 million dollars, and an additional 30 jobs will be
created. Currently we empioy 49 people. The annual economic impact of those
jobs is $7 million dollars. as weli as creating another 35 indirect jobs.
We expect to create additional jobs beyond the numbers indicated here, as we
continue to grow in the future.
Our mission is to manufacture products that improve the lives of patients. We do
this with relentless focus on innovation, quality, and customer seNice. We hold
that same belief for our company, our employees and the community. We believe
that we provide solid opportunity for people who work for us and that we provide
high skill high wage jobs and have a focus on continuous improvement for our
staff, our business and our investors.
Effective 10107
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. 4"'... I)
Client Approved ~~ (I Mia s
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GENERAL PROJECT OVERVIEW
Agenda Item No. 10B
January 29, 2008
Page 15 of 17
B. Provide a summary of past activities in Florida and in other states particularly
as they relate to environmental or growth management impacts. For example,
what kind of corporate citizen has the applicant been? Also list awards or commendations.
As previously stated, our mission is to manufacture products that improve the lives
of patients. We are a clean manufacturer, FDA approved with an ISO Certification
ISO 13485 certification for medical devices; a standard specifically for medical
devices.
We believe that the quality of our environment is directly related to our success.
We believe in good corporate citizenship and it's important to us and to our
employees that we are responsible in what we do and how we do it. We live and
work here and it's important to ensure that quality of life is maintained for all.
Inovo has operated clean manufacturing facilities since 1996 and has provided
long-term employment in both management and labor positions since inception.
Etfectiv810/07
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Client APprOVed'ryy,~_ (initials)
V
GENERAL PROJECT OVERVIEW
Agenda Item No. 10B
January 29, 2008
Page 16 of 17
C. List and explain any criminal or civil fines or penalties or ongoing
investigations that have been imposed upon the company, its executives, or
its affiliates and any recent bankruptcy proceedings of the applicant or its
parent company.
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.
Inovo manufactures products that help patients and therapy providers in the oxygen
therapy industry. With the acquisition of Chad Therapeutics, Inovo will nearly triple
in size, and therefore greatly enhance Its opportunities for success and growth in
the future. Chad Therapeutics currently operates a fully integrated facility in
California with a stable and longstanding workforce. Although our preference would
be to combine the operations of Inovo and Chad, thel.e is considerable costs and
risks In doing so. Not only will we have to hire additional employees in Florida, but
these employees would have to be trained very quickly to manufacture Inovo's and
Chad's products. By keeping certain portions of the operation in California we can
avoid some of these risks. However, with the right Incentives we can mitigate these
nsks and reduce the financial impact of making the move.
7. CONFIDENTIALITY
A. You may request that your project information (including 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.
Please indicate your confidentiality preference:
X Yes
D No
*"Be sure to attach the proper incentive attachment sheet(s)***
Effective 10/07
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Client Approved ~~J!J.f---~- (initials)
GENERAL PROJECT OVERVIEW
Agenda Item No.1 OB
January 29, 2008
Page 17 of 17
&9//{f-
To the best of my knowledge, the
information included in this
application is accurate.
X'# '
//1-1C/ /6 .
Signature (A~thorized Company Olficer)
REQUIRED
_n\Y~~i::J\(A e \../1.,\ LA \ VV:7L------
Name
___~l.i.cL_ t' reS L~I\\ _____
Tille
Application Completed By:
. Mi'2ha~U0ulrQY.______.._
Name
Vice President
Title
.I.novo, Inc. .
Company
, \ v,Ov n. Tine .
_ ___m_""=-LC~___"_"____'_'_'1_.______.,.:JL_,,......___.____
Company
Same as 111.a.i!i~g__.___.
Address, it different than mailing address
____5::lr\',Q 0 \_'9.-\cuJ~.
Address, if different than maiting addresS'
239.643.6577
'2'Y (olj:::;'.(PSll
_n__' :2.':1___~_.__.__
Phone Numbs!
Phone Number
__.2 '1:; (c 4 3 . 0530
239.643.6530
Fax Number
Fax Number
1/10/2008
Dale
trnfY\U\Vfj e Inovo.CDVI)
Email Address
\I I 0 \ 2006
,
mmulroy@inovo.com
Email Address
Date
Name of contact person, if different than above
Phone Number
"
Address
Email Address
Effective 10/07
Page 10 of 10
Client Approved /"'0A"J--_ (initials)
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