Fort Walton Beach Ordinance — 2034--EDATE American Elite PPE- Project PPE — reading text

READING 1) 7 18t 2nd ORDINANCE 2034 AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA, GRANTING AN ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTION TO PROJECT PPE; 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 OF THE FLORIDA STATUTES AND CITY ORDINANCE 1905; PROVIDING FOR PROOF OF ELIGIBILITY FOR EXEMPTION; PROVIDING SEVERABILITY; AND PROVIDING AN EFFECTIVE DATE NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA AS FOLLOWS: 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 the " City of Fort Walton Beach Economic Development Incentive Ordinance"; and WHEREAS, Project PPE ( the " Company") has submitted an application to the City for an Economic Development Ad Valorem Tax Exemption; and WHEREAS, the Economic Development Council of Okaloosa County, Florida ( the EDC") has 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 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) 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. 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 of the Florida Statutes, the City Council is empowered to grant Economic Development Ad Valorem Tax Exemptions after the electors of the City, voting on the question in a referendum, authorize such exemptions. In a referendum held on August 26, 2014, the voters of the City of Fort 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 This Economic Development Ad Valorem Tax Exemption is hereby granted to the Company for the facility that they are considering at 161 Hill Avenue NW, Fort Walton Beach, Florida 32548, ( the " Property") for its 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 City tares. 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 of the exemption hereby granted are in accordance with Paragraphs I, II, III and IV of the 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 and shall be for a term of ten ( 10) years commencing with the taxes for the year 2021 and ending with the taxes for the year 2030 ( the " Exemption Period"). The Ad Valorem Tax 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 $23, 073, as more fully set forth on the Application for Economic Development Tax Exemption, attached hereto as Exhibit `B". Such 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 2021 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 the invalid provision or application and, to this end, the provisions of this Ordinance are declared severable. Section 5. EFFECTIVE DATE. This Ordinance shall take effect immediately upon approval on second reading by the City Council and the signature of the Mayor, and shall be filed with the Okaloosa County Clerk of Court. Adopted: kT̀ s i o i . Richard A. Rynearson, Mayor Attest: Approved for form, Kim M. arnes, City Clerk Jr.,  ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTION PERFORMANCE AGREEMENT BETWEEN THE CITY OF FORT WALTON BEACH AND AMERICAN ELITE PPE This Economic Development Ad Valorem Tax Exemption Performance Agreement ( the " Agreement'), made and entered into this day of A,,, „ s} , 2020, by and between the City of Fort Walton Beach, a political subdivision of the State of Florida (the " City") and Project PPE (the " 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 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, the City of Fort Walton Beach 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 City to ensure that it satisfies all requirements associated with the creation of jobs in the City, the fulfillment of other representations made in applying for the EDATE Exemption, and the granting of the EDATE Exemption by the City. 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 SECTION 2: EXEMPTION. Subject to the terms and conditions of this Agreement, the City 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 City granting the EDATE Exemption, agrees to: [ INCLUDE PROVISIONS THAT APPLY] A. FACILITY CONSTRUCTION EXPANSION Qnitial 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, 2022, in accordance with the Application, the Company will invest a minimum of three million, seven hundred thousand Dollars ($3, 700, 000) in the: 1. Construction of a new facility for the operation of its business within the City of Fort Walton Beach, including the purchase of new equipment; and/or X_ 2. Expansion of an existing facility for its operations, located within the City of Fort Walton Beach, including the purchase of new equipment. C. JOB CREATION: Create at least 50 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. D. 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 City 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. B. Submit an annual report and