Okaloosa County BOCC — July 7, 2015 — Public Hearing – Adoption of Ordinance Granting Ad Valorem Tax — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: July 7, 2015 TO: Honorable Chairman and Members of the Board FROM: Rick Owen SUBJECT: Public Hearing – Adoption of Ordinance Granting Ad Valorem Tax Exemption for Project Rapid DEPARTMENT: County Administrator BCC DISTRICT: All STATEMENT OF ISSUE: On June 16, 2015, the Board of County Commissioners authorized the scheduling of a public hearing for the adoption of an Ordinance granting the Ad Valorem Tax Exemption for Project Rapid. The propose Ordinance has been advertised for consideration at the Boards July 7th, 2015 meeting. Additionally, should the Board approve the Ordinance, a separate Economic Development Ad Valorem Tax Exemption Performance Agreement would need to be considered which would set forth the parameters required to be complied with by Project Rapid to receive the Ad Valorem Tax Exemption. Those criteria would be evaluated annually. BACKGROUND AND ANALYSIS: Under the Florida Constitution and Florida Statutes, the County has the authority to grant property tax exemptions provided that the voters have authorized those actions. On August 26, 2014, the voters granted that authority to Okaloosa County. Project Rapid is an existing custom manufacturing operation serving prime contractors and commercial entities in Okaloosa County. Since beginning operations over 27 years ago, the company now accommodates customers all over the world. Project Rapid is considering purchasing equipment, with an estimated value of over $1.5 million which will allow them to expand their workforce by 30 employees with an average wage of $41,000 (110% of the average wage in Okaloosa County). If the company makes the decision to purchase the equipment and expand its workforce in Okaloosa County, the company will create the 30 new full-time jobs within the next 12 months. Furthermore, it should be noted that this company’s facility is located in a designated Brownfield area, which is a targeted redevelopment area. To grant the ad valorem tax exemption, the Board needs to adopt an Ordinance approving Project Rapid. Additionally, Economic Development Ad Valorem Tax Exemption Performance Agreement has been prepared which would set for the performance criteria for Project Rapid to receive the Ad Valorem Tax Exemption. The Agreement would be evaluated annually. Should the Board approve the Ordinance granting the Ad Valorem Tax Exemption, then it would also need to consider the approval of the Performance Agreement. Under the statute, a provision exists for the confidentiality of the granting of business subject to the Ordinance and the Performance Agreement. To maintain this confidentiality, there will be a separate Performance Agreement and Application entered into with Project Rapid and another that is with the actual Company’s name. The Performance Agreement and Application with the actual Company’s name remains confidential for a period of up to 12 months. Therefore, the Board if they approve the Ordinance and the Performance Agreement, will need to authorize the Chairman to execute the Performance Agreement in the name of Project Rapid and the Performance Agreement in the actual name of the Company. OPTIONS: Approve/Disapprove. RECOMMENDATION: Approve the proposed Ordinance granting the Economic Development Ad Valorem Tax Exemption for the Project Rapid. Additionally approve and authorize the Chairman to execute both the Economic Development Ad Valorem Tax Exemption Performance Agreements, one in the name of Project Rapid and the other in the actual name of the Company. RECOMMENDED BY: APPROVED BY: John Hofstad, County Administrator