Okaloosa County BOCC — January 8, 2013 — UpUnder Memo — reading text

MEMO Date: February 13, 2013 To: County Administrator Jim Curry From: Kay Rasmussen, Interim President Subject: Project UpUnder Project UpUnder Return on Investment: þ Current jobs: 0 New jobs: 67+ þ Average Wage: $40,400; 113% of the Okaloosa Average Wage þ Capital Investment: $22,600,000+ þ New company with the potential to employ 350 jobs in the first 5 years þ Diversification via shoulder season enhancement County Incentive Requested: Ad Valorem Tax Exemption Program State Incentive: Qualified Targeted Industry Tax Refund Program 0% $0 Local Incentive: Ad Valorem Tax Exemption 100% $316,304 100% $316,304 Local Exemption Schedule: (Assuming millage at 3.2899) Tangible Personal Real Year-to-Year Property Tax Property Tax Total Year 1 $28,370 $13,921 $42,291 Year 2 $26,392 $13,921 $40,313 Year 3 $23,295 $13,921 $37,216 Year 4 $20,876 $13,921 $34,797 Year 5 $18,477 $13,921 $32,398 Year 6 $16,600 $13,921 $30,521 Year 7 $13,659 $13,921 $27,580 Year 8 $11,419 $13,921 $25,340 Year 9 $9,524 $13,921 $23,445 Year 10 $8,482 $13,921 $22,403 Total $177,094 $139,210 $316,304 P.O. Box 4097, Fort Walton Beach, FL 32549 - (850)362-6467 Page 1 of 2 At the February 5, 2013 board meeting, the Economic Development Council of Okaloosa County requested that the Board of County Commission’s consider providing an Economic Development Ad Valorem Tax Exemption for Project UpUnder. Project UpUnder’s desire is to open their business in Destin, Florida. The documents that have been provided have been coded to protect confidentiality pursuant to Florida Statute 288.075. At this meeting, the BCC approved moving forward with providing an ED Ad Valorem Tax Exemption for Project UpUnder. The BCC scheduled the public hearing for the February 19, 2013 BCC meeting. A public notice was advertised on February 8, 2013. For this project, the Economic Development Ad Valorem Tax Exemption will be the only incentive that the company is eligible for and if approved, the only incentive the company will receive. This action is pivotal to the company’s final decision to open their business or not; if this incentive is not offered, the project may not come to fruition. It is important to note that this company has the potential to employ up to 350 employees in the next few years and will provide much needed, and desired, economic stability during the tourism shoulder season. The Economic Development Council is requesting that the county provide their predetermined maximum allowable amount through the ED Ad Valorem Tax Exemption program. This would be 100% over 10 years for Tangible Personal Property and Real Property taxes. The year-to-year values presented above are based on assessments conducted by the Okaloosa County Property Appraiser’s office. The proposed ordinance for adoption has also been provided After the public hearing and if adopted, the EDC requests that the Chairman of the Board approve and sign the ordinance. Additional Attachments o Property Appraiser’s Office Tangible Personal Property Exemption and Real Property calculations for Project UpUnder o Property Appraiser’s Form DR-418 regarding company’s investment in future purchases. 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