Okaloosa County BOCC — November 15, 2016 — Public Hearing Request - Consideration of Ad Valorem Tax Exemption — agenda request

BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: November 15, 2016 TO: Honorable Chairman and Members of the Board FROM: Nathan Sparks, President, EDC SUBJECT: Public Hearing Request - Consideration of Ad Valorem Tax Exemption STATEMENT OF ISSUE: The Economic Development Council of Okaloosa County has been working with an entity known as Project Hook II for the purpose of relocating operations into the County. Staff requests that the Board authorize the advertising of a public hearing for the Board’s December 20, 2016 meeting for the consideration of an Ordinance approving an ad valorem tax exemption for Project Hook II. 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. The Economic Development Council of Okaloosa County has received an Economic Development Ad Valorem Tax Exemption Supplemental Application for a business called, for confidentiality purposes, Project Hook II. Project Hook II is an operation located in another state that is looking to relocate their company into Okaloosa County. This company manufactures a product that serves both civil and military aircraft. Furthermore, their product is used internationally. The company will outsource parts of the manufacturing process to sub suppliers in close proximity to the potential new location. A decision date for this project will occur by the end of the 4th Quarter in 2016. Project Hook II is considering capital investment of $2.315M, with $1.31M being new equipment and $40K in new-to-Florida equipment over the next three years. The company would create 25 new jobs with an average wage of $65K to $70K (172%+ of the average wage in Okaloosa County). Furthermore, it should be noted that both facilities that the company is currently considering are 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 Hook II. Additionally, the Board will be asked to enter into an Economic Development Ad Valorem Tax Exemption Performance Agreement for Project Hook II. It is anticipated that it will be considered at the same time the as the proposed Ordinance. OPTIONS: Approve/Disapprove. RECOMMENDATION: Schedule and authorize the advertising of a public hearing to be held December 20, 2016 for the adoption of an Ordinance granting an ad valorem tax exemption for Project Hook II.