Agenda 01/29/2008 Item #16A 1
Agenda Item No. 16A 1
January 29, 2008
Page 1 of 6
EXECUTIVE SUMMARY
Recommendation that the Board of County Commissioners adopt a Resolution pursuant to
Section 288.106, Florida Statutes, recommending that the Governor's Office of Tourism, Trade
and Economic Development approve Inovo, Incorporated as a qualified target industry business,
confirming that the commitments of local financing necessary to support this target industry are
in place, and appropriating a total of $25,600 as local participation in the Qualified Target
Industry Tax Refund Program (QTI) for Fiscal Years 2009-2012
OBJECTIVE: That the Board of County Commissioners (Board) adopt the attached Resolution
recommending that the Governor's Office of Tourism, Trade and Economic Development (OTTED)
approve lnovo, Incorporated (Inovo) as a qualified target industry business, confirming that the
commitments of local financing necessary to support this target industry are in place, and appropriating
a total of $25,600 as local participation in the Qualified Target Industry Tax Refund Program (QTI)
for Fiscal Years 2009-2012.
CONSIDERATIONS: Inovo is a leading medical device manufacturer of oxygen regulators and
conserving devices. The business ha~ been located in Collier County since 1996 with a current staff of
~ 49 people. Inovo is in the process of purchasing Chad Therapeutics which is a California based
medical device company. The acquisition of Chad Therapeutics will nearly triple the size of Inovo by
relocating 32 high wage jobs to Collier County and will provide Inovo a 50% share of their product
market.
Inovo has applied to OTTED for certification as a qualified target industry business under the State's
QTI Program set forth by Section 288.106, Florida Statutes. This application process requires a
resolution adopted by the Board of County Commissioners in which the proposed project is to be
located, recommending that the target business be approved as a qualified target industry and stating
that the commitment of local financial support necessary for the target business industry exists.
It is the public policy of the State of Florida and Collier County to encourage the growth of high value-
added employment and the economic base by providing tax refunds to qualified targeted business
industries that create high-wage job opportunities. The QTI Program is an incentive program that
provides qualified applicants refunds on their corporate income, sales, ad valorem, intangible personal
property, insurance premium and certain other taxes.
This QTI incentive will provide an additional inducement for Inovo to relocate up to 32 new positions
to Collier County by September 2008, with a minimum average wage of $58,157 which is 150% of
Collier County's 2006 average wage.
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Enterprise Florida has contacted OTTED about the QTI Program and they agree that the project is
eligible for QTI tax refunds up to $128,000 (including local match). The Collier County portion of the
QTI tax refunds provides up to $25,600 to Inovo over the four-year period. Such payments will be
made to the Florida Economic Development Trust Fund, upon approval by Enterprise Florida, with the
Agenda Item No. 16A1
January 29. 2008
Page 2 of 6
stipulation that the funds are intended to represent the "local participation" required by Section
288.106, Florida Statutes.
FISCAL IMPACT: The General Fund will be obligated for a total of$25,600 with the increments of
payments to occur as follows:
FY 2009 - $ 6,400
FY 2010 - $ 6,400
FY 2011 - $ 6,400
FY 2012 - $ 6,400
TOTAL - $25,600
The local match is budgeted as part of the Economic Incentives Programs budget (Fund 00 I) within
the Community Development and Environmental Services Division. The local financial support is
contingent upon a determination annually by Enterprise Florida that the program requirements have
been met. which includes Inovo maintaining the specified jobs at or above the required wage scale
during the life of the incentive.
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."
Approval of this Resolution is also in accordance with the requirements of Section 288.106, Florida
Statutes.
LEGAL CONSIDERATIONS: The attached Resolution is legally sufficient for Board consideration
and approval.
RECOMMENDA TION: That the Board of County Commissioners adopt the attached Resolution
recommending that the Office of Tourism, Trade and Economic Development approve Inovo,
Incorporated as a qualified target industry business, confinning that the commitments of local
financing necessary to support this target industry arc in place, and appropriating a total of $25,600 as
local participation in the Qualified Target Industry Tax Refund Program for Fiscal Years 2009-2012.
Prepared by: Amy Patterson, Impact Fcc/Economic Development Manager
Business Management and Budget Office, CDES
RESOLUTION NO. 08_
A RESOLUTION OF THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY, FLORIDA,
SUPPORTING INOVO INCORPORATED AS A
QUALIFIED APPLICANT IN THE QUALIFIED TARGET
INDUSTRY (QTI) TAX REFUND PROGRAM PURSUANT
TO SECTION 288.106, FLORIDA STATUTES; PROVIDING
FOR FOUR ANNUAL PAYMENTS FOR A TOTAL
APPROPRIATION OF $25,600.00 AS THE LOCAL
PARTICIPATION MATCH FOR FISCAL YEAR(S) 2009
THROUGH 2012; AND PROVIDING FOR AN EFFECTIVE
DATE.
WHEREAS, the business under consideration is a medical device manufacturing
company, specifically, Inovo Incorporated ("loovon); and
WHEREAS, Inovo currently has its corporate headquarters and a manufacturing facility
in Collier County, Florida; and
WHEREAS, lnovo intends to acquire a complimentary California based company and is
considering relocating said company to Collier County. Florida; and
WHEREAS, it is policy of the State of Florida and Collier County to encourage the
growth of high value-added employment and the economic base by providing tax refunds to
qualified targeted industries that create high~wagc job opportunities; and
WHEREAS, the State requires the applicant requesting certification as a qualified
targeted industry business to provide, among other things, a resolution adopted by the Board of
County Commissioners of the county in which the proposed project is to be located.
recommending that the target business be approved as a qualified target industry and confmning
that the necessary commitment of local financial support for the target industry exist; and
WHEREAS, this incentive will provide an inducement for Inovo to relocate this
acquired business to Collier County; and
WHEREAS, tci qualify for the Qualified Targeted Industry (QTI) Tax Refund Program, a
participant must create IO new jobs or not less than a 10% increas'e in employment for an
expansion of an existing business; and
WHEREAS, Inovo has committed to creating up to 32 net new jobs in Collier County by
September, 2008, with a required minimum average wage of $58,157.00, which is 150% of the
Collier County's 2006 average wage; and
WHEREAS, to qualify for this program, Enterprise Florida, Inc., will confirm with the
Governor's Office of Tourism Trade and Economic Development (OTTED) about the Qualified
Targeted Industry (QTI) Tax Refund Program that they agree the project is eligible for QTI tax
refunds up to $128.000.00 (including local match).
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF COLLIER COUNTY. FLORIDA, that:
The Board of County Commissioners hereby recommends that Inovo be approved as a
Qualified Target Industry Business pursuant to Section.288.106, Florida Statutes, and
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Agenda Item No. 16A 1
January 29, 2008
Page 3 of 6
BE IT FURTHER RESOLVED that the County has reviewed the public resources for
local financial support and determined that the County can provide the necessary commitment of
local financial support for Inovo as a Qualified Targeted Industry Business, in the amount of up
to $25,600.00; that this amount will therefore be so encumbered, and shall be made available for
payment from future revenues generated from the projected ad valorem taxes collected as a result
of this project. Payment is proposed to be made in the following increments: FY 2009-
$6.400.00. FY 2010-$6.400.00. FY 2011-$6,400.00. and FY 2012-$6.400.00 Monies are to be
paid to tne Florida Economic Development Trust Fund with the stipulation that these funds are
intended to represent the "local participation" required by Section.288.106, Florida Statutes. The
necessary commitment of local financial support shall be contingent on !novo maintaining the
jobs during the life of the incentive and ensuring that its hiring practices are consistent with and
reflect the diversity of Lhe Collier County community.
This Resolution adopte,d after motion, second and majority vote favoring same. this
day of
2008.
A TrEST:
DWIGHT E. BROCK. CLERK
BOARD OF COUNTY COMMISSIONERS
COLLIER COUNTY. FLORIDA
By:
By:
. Deputy Clerk
, Chainnan
Approv d as to form
and le su lC' ocy:
Jeffrey .
Chief A sis
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Agenda Item No. 16A1
January 29. 2008
Page 4 016
Item Number:
Item Summary:
Meeting Date:
Page 1 of 1
Agenda Item No. 16A 1
January 29, 2008
Page 5 of 6
COLLIER COUNTY
BOARD OF COUNTY COMMISSIONERS
16A1
Recommendation that the Board of County Commissioners adopt a Resolution pursuant to
Section 288.106, Florida Statutes, recommending that the Governors Office of Tourism,
Trade and Economic Development approve lnovo, Incorporated as a qualified target industry
business, confirming that the commitments of local financing necessary to support this target
industry are in place, and appropriating a total of $25,600 as local participation in the
Qualified Target Industry Tax Refund Program (OTI) for Fiscal Years 2009~2012
1/29/20089:00:00 AM
Prepared By
Amy Patterson
Community Development &
Environmental Services
Impact Fee Manager
Date
Approved By
Financial Admin. & Housing
1/11/20081:18:53 PM
Judy Puig
Community Development &
Environmental Services
Operations Analyst
Community Development &
Environmental Services Admin.
Date
Approved By
1/14/20089:52 AM
Joseph K. Schmitt
Community Development &
Environmental Services
Community Development &
Environmental Services Adminstrator
Date
Community Development &
Environmental Services Admin.
1/16/200811:01 AM
Approved By
Jeff Klatzkow
County Attorney
Assistant County Attorney
Date
Approved By
County Attorney Office
1/16/20083:59 PM
OMB Coordinator
County Manager's Office
OMS Coordinator
Date
Approved By
Office of Management & Budget
1/17/20089:42 AM
Mark Isackson
County Manager's Office
Budget Analyst
Date
Approved By
Office of Management & Budget
1/18/200810:09 AM
James V. Mudd
Board of County
Commissioners
County Manager
Date
County Manager's Office
1/20/200812:25 PM
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Agenda Item No. 16A 1
January 29, 2008
Page 6 016
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Michael J. Mulroy
Vice President
Inovo, Inc.
2975 Horseshoe Drive South, Suite 600
Naples, FL 34104
Dear Mr. Mulroy:
A request has been made by officials of Collier County for a non-binding opinion as to the
eligibility of your company's project under the Qualified Target Industry (QTI) program.
Enterprise Florida has reviewed your application and we have determined the following:
1. The project is eligible under the QTI program; and
2. The project is eligible for refunds up to $128,000 (including local match)
This determination is based on Enterprise Florida's review of the project and the following:
1. The QTI award is vital to Inovo's decision to expand its operations in the State of
Florida;
2. The local community supports this project;
3. Inovo will create 32 net new-to-Florida jobs at an average wage of $58,157 which is
150% of the average 2006 Collier County wage; and,
4. Inovo will invest an estimated $775,000 in leasehold improvements and equipment
purchases.
Again, please keep in mind that this letter serves as only an opinion as to the type of award for
which Inovo will likely be eligible. A final decision cannot be made until a completed application
has been received and evaluated by the Govemor's Office of Tourism trade and Economic
Development.
We look forward to continuing to work with you and your company to ensure the success of
this project. If you have any questions about this opinion or the incentive application process,
please do not hesitate to call me at (305) 808-3384.
Sincerely,
~~
Michelle Lay
Incentives Manager
cc: Wynnelle Wilson, Office of Tourism, Trade & Economic Development
Joan Yasharian, EDC of Collier County
Governor Charlie Crist, Chairman . Tom Kuntz, Vice Chair . John A. Adams Jr., President & CEO
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The Atrium Building, Suite 201 . 325 John Knox Road' Tallahassee, FlOrida 32303 . T 850.298.6620 . F 850.298.6659