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

3 3 w C C J U 0) cn N O) 7 7 o O J 14, N N J N N O f 7 J O) J W 4 co cn N co O N0 co W N CO N) 0 b co O J 1 00 0 C) 2. CO CO 71 C A Q CO AA, J O) O O Of O) O Ix co a T  4 ONE NP OKALOOSA ECONOMIC DEVELOPMENT COUNCIL MEMO Date: November 17, 2021 To: Michael Beedie, City Manager, City of Fort Walton Beach From: Nathan Sparks, One Okaloosa EDC Executive Director Subject: Request of an Economic Development Ad Valorem Tax Exemption ( EDATE) for Project Blue Waves Project Blue Waves One Okaloosa EDC requests that the Fort Walton Beach City Council consider the approval of an Economic Development Ad Valorem Tax Exemption for Project Blue Waves. The project and all corresponding documents are being coded to protect confidentiality pursuant to Florida Statute 288. 075. Project Specs Il Project Blue Waves is an existing Okaloosa County defense contractor located in the City of Fort Walton Beach The company currently leases the building where the expansion is contemplated D The building is located in the Fort Walton Beach Commerce and Technology Park, and the Okaloosa County Board of County Commissioners is also being asked to consider an Economic Development Ad Valorem Tax Exemption. IE The landlord is a co- applicant and has agreed to pass along any awarded tax exemption to the tenant. Potential new jobs( dependent on approval of this incentive): 12 Average wage of the 12 new employees will be$ 75, 000( 168% Okaloosa County' s$ 44, 703 average wage) RI The company' s capital Investment is projected at$ 2, 550, 000($ 2. 5 million of facility expansion/ upgrades and 50, 000 in capital equipment) El Project focuses on the addition of a new production capability in support of the US Department of Defense Beach, if for 100% over 10 years, would be IEt The potential EDATE award from the City of Fort Walton approved 108, 107 while the potential EDATE award from Okaloosa County, if approved for 100% over 10 years, would be 77, 709. El The company is also considering sites in Jacksonville, FL; St. Louis, MO; San Antonio, TX and Oklahoma City, OK for this competitive expansion project. RI At present, a final decision regarding the expansion location is expected to occur in January 2022. Entity Tangible Personal Real Property Exemption Property Exemption 1, 521 106, 586 City of Fort Walton Beach Okaloosa County 1, 093 76, 616 TEN YEAR TOTAL( Combined) 2, 614 183, 202 6467 Page 1 of 2 P. O. Box 4097, Fort Walton Beach, FL 32549-( 850) 362-  EDATE — City of Fort Walton Beach EDATE — Okaloosa County Exemption– TPP Exemption– Real Exemption– TPP Exemption– Real Year Estimated) Property( Estimated) Year Estimated) Property( Estimated) 245 10, 659 1 176 7662 1 224 10, 659 2 161 7662 2 3 211 10, 659 3 151 7662 4 191 10, 659 4 137 7662 170 10, 659 5 122 7662 5 6 142 10, 659 6 102 7662 113 10, 659 7 81 7662 7 89 10, 659 8 64 7662 8 72 10, 659 9 51 7662 9 64 10, 659 10 46 7662 10 Total 1521 106, 586 Total 1093 76, 616 Comments One Okaloosa EDC is asking the City of Fort Walton Beach City Council to consider supporting an Ad Valorem Tax Exemption for the Real Property and Tangible Personal Property( TPP) taxes which are not currently on the tax roll (future value) for this project in partnership with Okaloosa County. As you are aware, in 2014 the citizens of Fort Walton Beach through local referendum entrusted the Fort Walton Beach City Council with the authority to grant Economic Development Ad Valorem Tax Exemptions for new and existing employers committing to the creation of higher wage employment opportunities. The specific Florida Statute that provides guidance for these decisions is cited below. 196. 1995 Economic development ad valorem tax exemption.— Florida Statute 196. 1995 In considering any application for an exemption under this section, the board of county commissioners or the governing authority of the municipality must take into account the following: a) The total number of net new jobs to be