Fort Walton Beach Ordinance — 2093--EDATE--Project Blue Waves — reading text

READING 1st ao 2nd ORDINANCE 2093 AN ORDINANCE OF THE CITY COUNCIL OF THE CITYECONOMIC OF FORT BEACH, FLORIDA, GRANTING AN WALTON DEVELOPMENT AD VALOREM TAX EXEMPTION TO PROJECT BLUE ENACTMENT AUTHORITY; PROVIDING THE WAVES; PROVIDING AMOUNT OF THE EXEMPTION; PROVIDING THE TERM OF THE THAT THE BUSINESS MEETS THE EXEMPTION; FINDING REQUIREMENTS OF SECTION 196.012 OF THE FLORIDA STATUTES AND CITY ORDINANCE 1905; PROVIDING FOR PROOF OF ELIGIBILITY FOR SEVERABILITY; AND PROVIDING AN EXEMPTION; PROVIDING EFFECTIVE DATE. WHEREAS, economic development and the creation of jobs within the City of Fort Walton Beach are a priority of City Council; and WHEREAS, on August 26, 2014, pursuant to Section 196. 1995 of the Florida Statutes, the voters of the City of Fort Walton Beach authorized City Council 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, on October 14, 2014, the City Council adopted Ordinance 1905 establishing Development Incentive Ordinance"; and the" City of Fort Walton Beach Economic WHEREAS, Project Blue Waves ( the " Company") has submitted an application to the City for an Economic Development Ad Valorem Tax Exemption; and EDC") has WHEREAS, the One Okaloosa Economic Development Council ( the " recommended approval of the Economic Development Ad Valorem Tax Exemption for the Company; and WHEREAS, the Property Appraiser has provided City Council with its report as required by Section 196. 1995( 9) of the Florida Statutes; and WHEREAS, the Company will be required to execute an Economic Development Ad Agreement") which sets forth the Valorem Tax Exemption Performance Agreement ( the " performance and reporting requirements for the Economic Development Ordinance Ad Valorem Tax Exhibit" A"; as and Exemption; a draft of the proposed Agreement is attached to this WHEREAS, based upon the review of the information, it has been determined that the Company meets the requirements of Section 196.012( 15) of the Florida Statutes; and WHEREAS, Section 196. 1995( 11) of the Florida Statutes requires that any action of City Council granting an Ad Valorem Tax Exemption to a new or expanding business be established by an ordinance. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA: Section 1. RECITALS. part of this Ordinance. The Recitals set forth above are incorporated as  Section 2. ENACTMENT AUTHORITY. Pursuant to Article VII, Section 3 of the Constitution of the State of Florida and Section 196. 1995 ofthe Florida Statutes, the City Council is empowered to grant Economic Development Ad Valorem Tax Exemptions after the electors ofthe City, voting on the question in a referendum, authorize such exemptions. In a referendum held on August 26, 2014, the voters ofthe City ofFort Walton Beach authorized City Council 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. This Economic Development Ad Valorem Tax Exemption is hereby granted to the Company for the facility that they areWalton considering an expansion for within the Commerce & for its real property and Technology Park in the City of Fort Beach ( the " Property") tangible personal property added or increased on or after the date ofthis 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 City taxes. The total amount of revenue available to the City from ad valorem tax sources, revenue lost to the City 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 ofthe exemption hereby granted are in accordance with Paragraphs I, II, III and IV ofthe Property Appraiser' s findings on the Application for Economic Development Tax Exemption, attached hereto as Exhibit" B". The Economic Development Ad Valorem Tax Exemption hereby granted to the Company for the Property shall be for a term of ten(2032 10) years ( commencing the " with the taxes for the year 2023 Exemption Period"). The Ad Valorem Tax and ending with the taxes for the year Exemption shall be applied against Tangible Personal Property Tax and Real Property Tax for the Property in a total amount over the Exemption Period of$ 108, 107, ashereto Development Tax Exemption, more fully attached set forth on the Exhibit " B". Such as Application for Economic exemption shall only be applied against new Tangible Personal Property and Real Property Tax added or increased after the date of this Ordinance through the Exemption Period. In accordance with the findings of City Council and the Property Appraiser, the Property hereby exempted meets the definition of a new or expanded business, as defined by Section 196.012 of the Florida Statutes and the City of Fort Walton Beach Economic Development Incentive Ordinance. For Tax Year 2023 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 on the new Tangible Personal Property Tax and Real Property Tax on the Property 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 City Council that such invalidity shall not affect any other provisions of the Ordinance which may be given effect without declared the invalid provision or severable. and to this end, the provisions of this Ordinance are application,  Section 5. EFFECTIVE DATE. This Ordinance shall take effect immediately upon approval on second reading by the City Council and the signature ofthe Mayor and shall be filed with the Okaloosa County Clerk of Court. Adopted: io1/ 4y0 pc ‘ l n z_z 4.1.Q 1 Richard A. Rynearson, ayor Approved for form, legal su -- ncy Attest: Kim . Barnes, City Clerk FOPS WALrok Hay . rd Dykes,,. ., City : • ey s r• ak* u_---.•%.- 0 FLORIO,' /  ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTION PERFORMANCE AGREEMENT BETWEEN THE CITY OF FORT WALTON BEACH AND PROJECT BLUE WAVES This Economic Development Ad Valorem Tax Exemption Performance Agreement ( the " Agreement"), made and entered into this R'+" day of January, 2022, by and between the City of Fort Walton Beach, the a political subdivision of the State of Florida ( the " City") " and Project Blue Waves ( Company"). WITNESSETH: WHEREAS, Article VII, Section 3 of the Florida Constitution and Section 196. 1995, Florida Statutes, authorize the City to grant Economic Development Ad Valorem Tax Exemptions to New Businesses and Expansions of Existing and ( 15), Florida Statutes, subject Businesses, as defined in Sections 196. 012( 14) to voter approval ( the " EDATE Exemption"); and WHEREAS, on August 26, 2014, the City of Fort Walton Beach electors approved a referendum authorizing such exemptions; and Section 196. 1995( 8), Florida Statutes, the WHEREAS, pursuant to of the EDATE Supplemental Company submitted an application consisting 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 the with the jobs with