Okaloosa County BOCC — January 5, 2016 — Ordinance with Attachments — reading text

ORDINANCE NO. 16- AN ORDINANCE OF THE BOARD OF COUNTY COMMISSIONERS OF OKALOOSA COUNTY, FLORIDA, GRANTING AN ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTION TO PROJECT VETERAN’S PRIDE; PROVIDING ENACTMENT AUTHORITY; PROVIDING THE AMOUNT OF THE EXEMPTION; PROVIDING THE TERM OF THE EXEMPTION; FINDING THAT THE BUSINESS MEETS THE REQUIREMENTS OF SECTION 196.012, FLORIDA STATUTES; PROVIDING FOR PROOF OF ELIGIBILITY FOR EXEMPTION; PROVIDING SEVERABILITY; PROVIDING FOR INCLUSION IN THE COUNTY CODE OF ORDINANCES; PROVIDING AN EFFECTIVE DATE. WHEREAS, economic development and the creation of jobs within Okaloosa County are a priority of the Board of County Commissioners of Okaloosa County (the “Board”); and WHEREAS, on August 26, 2014, pursuant to section 196.1995, Florida Statutes, the voters of Okaloosa County authorized the Board to grant property tax exemptions to new businesses and expansion of existing businesses for economic development purposes (“Economic Development Ad Valorem Tax Exemption”); and WHEREAS, Project Veteran’s Pride (the “Company™) has submitted an application to the County for an Economic Development Ad Valorem Tax Exemption; and WHEREAS, the Okaloosa County Economic Development Council (the “EDC”) has recommended approval of the Economic Development Ad Valorem Tax Exemption for the Company; and WHEREAS, the Property Appraiser has provided the Board with its report as required by section 196.1995(9), Florida Statutes; and WHEREAS, the Company has executed an Economic Development Ad Valorem Tax Exemption Performance Agreement (the “Agreement”) which sets forth the performance and reporting requirements for the Economic Development Ad Valorem Tax Exemption, a copy of which is attached to this Ordinance as Exhibit “A”; and WHEREAS, based upon the review of the information, it has been determined that the Company meets the requirements of section 196.012(15), Florida Statutes; and WHEREAS, section 196.1995(11), Florida Statutes, requires that any action of the Board granting an Ad Valorem Tax Exemption to a new or expanding business be established by an ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE BOARD OF COUNTY COMMISSIONERS OF OKALOOSA COUNTY, FLORIDA: Section 1. RECITALS. The Recitals set forth above are incorporated as part of this Ordinance. Section 2. ENACTMENT AUTHORITY. Pursuant to Article VII, Section 3 of the Constitution of the State of Florida, and section 196.1995, Florida Statutes, the County is empowered to grant Economic Development Ad Valorem Tax Exemptions after the electors of the County, voting on the question in a referendum, authorize such exemptions. In a referendum held on August 26, 2014, the voters of Okaloosa County authorized the Board to grant Economic Development Ad Valorem Tax Exemptions to new businesses and expansions of existing businesses for economic development purposes. Section 3. GRANT OF ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTION. A. This Economic Development Ad Valorem Tax Exemption is hereby granted to the Company for its potential new business location at 656 Lovejoy Road, Fort Walton Beach, (the “Property™) for its new construction and tangible personal property added or increased on or after the date of this Ordinance. No exemption shall be granted on the land upon which the improvements are made. Such Economic Development Ad Valorem Tax Exemption shall only be applicable to County taxes. B. The total amount of revenue available to the County from ad valorem tax sources, revenue lost to the County for the current Tax Year by virtue of economic development Ad Valorem Tax Exemptions previously granted, and the amount of estimated revenue which will be lost because of the exemption hereby granted are in accordance with Paragraphs I, 11, 1l and IV of the Property Appraiser’s findings on the Application for Economic Development Tax Exemption, which is included as an exhibit to the Agreement attached as Exhibit “A” to this Ordinance. C. The Economic Development Ad Valorem Tax Exemption hereby granted to the Company for the Property and shall be for a term of 10 years commencing with the taxes for the year 2017 and ending with the taxes for the year 2026 (the “Exemption Period”). The Ad 2 Valorem Tax Exemption shall be applied against taxes for the net increases in tangible personal property acquired to facilitate the expansion of the existing business and against taxes of all added improvements to real property made to facilitate the expansion if the existing business, in a total amount over the Exemption Period of $18,847, as more fully set forth on the Application for Economic Development Tax Exemption, which is included as an exhibit to the Agreement attached as Exhibit “A” to this Ordinance. Such exemption shall only be applied against taxes for new tangible personal property and new improvements to real property taxes added or increased after the date of this Ordinance through the Exemption Period. D. In accordance with the findings of the Board and the Property Appraiser, the Property hereby exempted meets the definition of a new or expanded business, as defined by section 196.012, Florida Statutes. E. For Tax Year 2017 and all remaining years thereafter for which the Company is entitled to an Economic Development Ad Valorem Tax Exemption, such Exemption shall be granted from the payment of the taxes due by the Company for new tangible personal property and new improvements to real property taxes added or increased after the date of this Ordinance through the Exemption Period. Section 4. SEVERABILITY. In the event any provision of this Ordinance or the application thereof to any person or circumstance is held invalid, it is the intent of the Board that such invalidity shall not affect any other provisions of the Ordinance which may be given effect without the invalid provision or application and, to this end, the provisions of this Ordinance are declared severable. Section S. INCLUSION IN THE OKALOOSA COUNTY CODE OF ORDINANCES. The provisions of this Ordinance shall become and be made a part of the Okaloosa County Code of Ordinances. The sections of the Ordinance may be renumbered or relettered to accomplish such, and the word “Ordinance” may be changed to “Section”, “Article”, or other appropriate word. Section S. EYFECTIVE DATE. A certified copy of this Ordinance shall be filed with the Department of State by the Clerk of the Board within ten (10) days after enactment by the Board and shall take effect upon its filing with the Department of State as provided by law. DULY ADOPTED by the Board of County Commissioners of Okaloosa County, Florida in regular session, this day January, 2016. OKALOOSA COUNTY BOARD OF COUNTY COMMISSIONERS Charles K. Windes, Jr., Chairman ATTEST: J.D. Peacock, 11 Clerk of Court APPROVED AS TO FORM: Gregory T. Stewart County Attorney ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTION PERFORMANCE AGREEMENT BETWEEN OKALOOSA COUNTY AND PROJECT VETERAN’S PRIDE This Economic Development Ad Valorem Tax Exemption Performance Agreement (the “Agreement”), made and entered into this day of , 2016, by and between Okaloosa County, Florida, a political subdivision of the State of Florida (the “County”) and Project Veteran’s Pride (the “Company”). WITNESSETH: WHEREAS, Article VII, Section 3 of the Florida Constitution and Section 196.1995, Florida Statutes, authorize the County to grant Economic Development Ad Valorem Tax Exemptions to New Businesses and Expansions of Existing Businesses, as defined in Sections 196.012(14) and (15), Florida Statutes, subject to voter approval (the “EDATE Exemption™); and WHEREAS, on August 26, 2014, Okaloosa County electors approved a referendum authorizing such exemptions; and WHEREAS, pursuant to Section 196.1995(8), Florida Statutes, the Company submitted an application consisting of the EDATE Supplemental Application and the DR 418 Form (the “Application”) requesting an EDATE Exemption, a copy of which is attached hereto and incorporated as part of this Agreement as Exhibit “A”; and - WHEREAS, as a condition of the EDATE Exemption being granted, the Company is required to enter into an Agreement with the County to ensure that it satisfies all requirements associated with the creation of jobs in the County, the fulfillment of other representations made in applying for the EDATE Exemption, and the granting of the EDATE Exemption by the County. NOW THEREFORE, in consideration of the above and the mutual covenants contained herein, the parties agree as follows: SECTION 1: INCORPORATION. The above recitals are incorporated as essential terms of this Agreement. All capitalized terms used in this Agreement and not defined herein shall have the same meanings as ascribed to them in Section 196.012, Florida Statutes. 1 EXHIBIT "A" TO ORDINANCE SECTION 2: EXEMPTION. Subject to the terms and conditions of this Agreement, the County agrees to provide the Company with the EDATE Exemption as set forth in the Exemption Ordinance. SECTION 3: BUSINESS MAINTENANCE AND CONTINUING PERFORMANCE CONDITIONS. The Company, pursuant to its representation contained within the Application, and in consideration for the County granting the EDATE Exemption, agrees to: [INCLUDE PROVISIONS THAT APPLY] A. FACILITY CONSTRUCTION EXPANSION (Initial applicable provisions): The Company shall construct the following facilities, which shall be completed in accordance with the Application: 1. Construct a new facility consisting of square feet of space; and/or 2. Expand an existing facility by adding an area consisting of square feet of space. B. FINANCIAL INVESTMENT (Initial applicable provisions): Through January 1, 2020, in accordance with the Application, the Company will invest a minimum of one million, six hundred and eighty five thousand and three hundred and seventy six Dollars ($1,685,376) in the: 1. Construction of a new facility for the operation of its business within Okaloosa County, including the purchase of new equipment; and/or X 2. Expansion of an existing facility for its operations, located within Okaloosa County, including the purchase of new equipment. JOB CREATION: Create at least 11 full-time equivalent jobs paying an average annual wage equal to or in excess of 110% of the average annual wage for Okaloosa County during each of the tax years for which the EDATE Exemption is sought. In determining compliance with the job creation requirements of this Agreement, the Company shall demonstrate that it has created the requisite number of jobs as of January 1 of each Tax Year of the Exemption Period, as set forth in the Application. LOCAL EFFORT: The Company shall use its best efforts to hire employees residing within Okaloosa County and to use local suppliers for its goods and services. SECTION 4: ANNUAL FILING. Pursuant to Section 196.1995, Florida Statutes, the Company shall: A. Notify the County and the Economic Development Council of Okaloosa County (the “EDC”), in writing within ten (10) business days as to any changes in ownership of the Company. Submit an annual report and certification statement (the “Annual Report”) to the Economic Development Council of Okaloosa County and Okaloosa County on or before February 15 of each Tax Year of the Exemption Period, which shall be definedas () tax years commencing with Tax Year 20 through Tax Year 20 . 1. The Annual Report shall verify that (1) the information provided in the Application has not changed, or (2) in the event the information has changed, that the Annual Report shall set forth the changes in detail and any supporting documentation that may be necessary. The Business Maintenance and Continuing Performance Conditions contained in Section 3 may not be altered by the Annual Report. The Annual Report shall certify and provide documentation that demonstrates the Company’s compliance with the Business Maintenance and Continuing Performance Conditions as set forth in