Okaloosa County BOCC — February 17, 2015 — FINAL Project Proud Memo to Hofstad - Feb 17 BCC Meeting

MEMO Date: February 11, 2015 To: John Hofstad, Okaloosa County Administrator From: Nathan Sparks, EDC Executive Director Subject: Request consent agenda placement for the February 17, 2015 BCC meeting for consideration of an Economic Ad Valorem Tax Exemption for Project Proud. Request for public hearing at March 3, 2015 BCC meeting. Project Proud The Economic Development Council of Okaloosa County requests the Board of County Commissioner’s consideration in providing an Economic Development Ad Valorem Tax Exemption for Project Proud. Project Proud is a business located in Crestview, FL. The project and all corresponding documents are being coded to protect confidentiality pursuant to Florida Statute 288.075. Project Specs þ Current jobs: 101 þ End employment (dependent on approval of this incentive): 141 o Retention: 101 o New jobs: 40 þ The company is seeking incentives from the state for 40 new jobs to be created should the company choose to remain in Florida and expand þ Average wage of the 40 new employees will be $36,152 þ Capital Investment: $16,850,000 within 5 years þ Retention and Expansion of a company that has been in the county for 11 years þ Industry Diversification - Manufacturing Enterprise Florida, through the State of Florida, is willing to consider providing $256,000 as their 80% match in Qualified Target Industry (QTI) Tax Refund Incentives for the creation of 40 new jobs at an average wage of $36,152. Per Florida Statute, all QTI Incentives require a Local Financial Support (LFS) match of 20%, which in this project is $64,000. Together, the total incentive package, if the county chooses to provide $64,000 (20% LFS) through EDATE, will be $320,000. Acceptable forms of Local Financial Support for this program can be in the form of cash or through the county’s approved Economic Development Ad Valorem Tax Exemption (EDATE) Program. Historically, Okaloosa County provides their match through the EDATE program and that is the route that the Economic Development Council recommends. If the BCC approves to move forward in considering providing an ED Ad Valorem Tax Exemption for Project Proud, the EDC requests that the BCC schedule and advertise a public hearing for the next north county meeting on March 3, 2015 due to time sensitivity. It is important to note that the company’s anticipated average wage of $36,152 for 40 employees was 100% of the average wage in Okaloosa at the time of their state application. We are seeking a wage waiver for this project as the wage falls below the self-prescribed 110% average wage requirement that the county set when drafting criteria for the EDATE application P.O. Box 4097, Fort Walton Beach, FL 32549 - (850)362-6467 Page 1 of 3 process in 2010. The Board of County Commissioners is asked to consider the fact that Florida Statute 288.106 (4)(b)1.b (full excerpt below) allows local governing bodies, in the case of QTI Incentives, to waive the average wage requirement for projects that are located in an Enterprise Zone and/or manufacturing projects, both applicable to this project. We ask that a similar provision be considered when the county considers EDATE for Project Proud. If a public hearing were to occur on March 3, 2015, the EDC proposes the attached resolution (Exhibit A) reflecting the Ad Valorem Tax Exemption year-to-year values based on assessments conducted by the Okaloosa County Property Appraiser’s office (Exhibit B). Per county policy, an ordinance should also be drafted. After the public hearing and, if adopted, the EDC requests that the Chairman of the Board approve and sign the appropriate resolution in conjunction with the ordinance. County Incentive