Okaloosa County BOCC — February 11, 2013 — Project Talking Parents Memo — reading text

MEMO Date: April 10, 2013 To: Jim Curry, Okaloosa County Administrator From: Kay Rasmussen, Interim President Subject: Public hearing supporting documents for April 16, 2013 BCC meeting regarding Talking Parents. 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% $75,603 Local Incentive: Ad Valorem Tax Exemption 20% $18,900 (over 10 years) 100% $94,502 Local Exemption Schedule: (Assuming millage at 3.2899) Tangible Personal Real Year-to-Year Property Tax Property Tax Total Year 1 $1,575 $954 $2,529 Year 2 $1,450 $954 $2,404 Year 3 $1,302 $954 $2,256 Year 4 $1,100 $954 $2,054 Year 5 $950 $954 $1,904 Year 6 $811 $954 $1,765 Year 7 $671 $954 $1,625 Year 8 $556 $954 $1,510 Year 9 $490 $954 $1,444 Year 10 $456 $954 $1,410 Total $9,360 $9,540 $18,900 P.O. Box 4097, Fort Walton Beach, FL 32549 - (850)362-6467 Page 1 of 2 At the April 2, 2013 board meeting, the Economic Development Council of Okaloosa County requested that the Board of County Commissioners consider providing an Economic Development Ad Valorem Tax Exemption for Project Talking Parents. Project Talking Parents is a business located in Fort Walton Beach, FL who is looking to expand in Okaloosa County. The project has been coded to protect confidentiality pursuant to Florida Statute 288.075. The BCC scheduled a public hearing for the April 16, 2013 BCC meeting. A public notice was advertised on April 5, 2013 (Exhibit C). 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. The proposed resolution (Exhibit A) reflects the Ad Valorem year-to-year values based on assessments conducted by the Okaloosa County Property Appraiser’s office. The proposed ordinance for adoption has also been provided (Exhibit B). After the public hearing and, if adopted, the EDC requests that the Chairman of the Board approve and signed the appropriate resolution in conjunction with the ordinance. 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. Comments o The EDC is asking the BCC to consider supporting an Ad Valorem Tax Exemption for the Tangible Personal Property (TPP) and Real Property taxes not currently on the tax roll (future value) for this project. o The amount recommended is lower than the $24,000 max presented to the BCC at the April 2, 2013 board meeting. Based on the calculations presented by the Property Appraiser’s office, the EDC is recommending an $18,900 exemption over 10 years. o With a decreased award, the state’s match will also be lower. The company originally qualified for $6,000 per new job created for a total of $120,000, with the state providing 80% or $96,000 and the county providing 20% or $24,000 as its match over the a time period. However, the company will receive $4,725 per new job created with 80% or $75,602 from the state and 20% or $18,900 from the county should the BCC approve this exemption. o The average wage is to be $56,500 or at least 159% of the average wage in the Okaloosa County area. Comments o Exhibit D – Property Appraiser’s Office Tangible Personal Property and Real Property Exemption calculations for “Project Talking Parents” o Exhibit E – 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