Okaloosa County BOCC — May 4, 2013 — EDC Request for Public Hearing — reading text

MEMO Date: March 27, 2013 To: Jim Curry, Okaloosa County Administrator From: Kay Rasmussen, Interim President Subject: Request agenda placement at the April 2, 2013 BCC meeting for consideration of an Economic Ad Valorem Tax Exemption for Project Talking Parents. Request for public hearing at April 16, 2013 BCC meeting. Project Talking Parents Return on Investment: þ Current jobs: 30 þ End employment (dependent on approval of this incentive): 50 o Retention: 10 o New jobs: 20 þ Average Wage: $56,500; 159% of the Okaloosa Average Wage þ Capital Investment: $1,400,000 þ Retention and Expansion of a company that has been in the county for 12 years þ Industry Diversification County Incentive Requested: Ad Valorem Tax Exemption Program State Incentive: Qualified Targeted Industry Tax Refund Program 80% $96,000 Local Incentive: Ad Valorem Tax Exemption 20% $24,000 (over 10 years) 100% $120,000 Local Exemption Schedule: Tangible Personal Property Tax TBD P.O. Box 4097, Fort Walton Beach, FL 32549 - (850)362-6467 Page 1 of 2 The Economic Development Council of Okaloosa County requests the Board of County Commissioner’s consideration in providing an Economic Development Ad Valorem Tax Exemption for Project Talking Parents. Project Talking Parents is a business located in Fort Walton Beach, FL. The project has been coded to protect confidentiality pursuant to Florida Statute 288.075. However, the EDC expects the company to be present at the public hearing and the company name will be announced at that time. The ED Ad Valorem Tax Exemption will provide the 20% required local financial support match for the Qualified Target Industry Tax Refund program administered by the state. If the BCC approves to move forward with providing an ED Ad Valorem Tax Exemption for Project Talking Parents, the EDC requests the BCC to schedule and advertise a public hearing for the earliest BCC meeting due to time sensitivity. To expedite this project before the company makes its decision, the EDC is requesting a public hearing at the earliest south county BCC meeting, April 16, 2013. At that time, the EDC will have the proposed resolution reflecting the Ad Valorem Tax Exemption year-to-year values based on assessments conducted by the Okaloosa County Property Appraiser’s office. Additionally, the EDC will supply a proposed ordinance for adoption. After the public hearing and, if adopted, the EDC requests that the Chairman of the Board approve and sign the appropriate resolution in conjunction with the ordinance. Comments It is anticipated that: o There will be no real personal property tax to be considered. The EDC is asking the BCC to consider supporting an Ad Valorem Tax Exemption for the Tangible Personal Property (TPP) taxes not currently on the tax roll (future value) for this project. o The request will not exceed $24,000 (over 10 years) in Tangible Personal Property Tax Exemptions. o The formula for this amount is based on the state’s calculations of $6,000 per new job created times 20 new full time positions totaling $120,000. The average wage is to be $56,500 or at least 159% of the average wage in the Okaloosa County area. o Of the $120,000 that “Project Talking Parents” is eligible for, the state will provide 80% or $96,000 if the county provides 20% or $24,000 as its match over the a time period recommended by the PA. Thank you for your consideration to this request and future development! P.O. Box 4097, Fort Walton Beach, FL 32549 - (850)362-6467 Page 2 of 2