Okaloosa County BOCC — February 11, 2013 — reading text

events Packet Pg. 8  2.1.a FY14 Budget Review Schedule Attachment: PIO UPDATE 4-16 (1614 : Public Information Officer Presentation)  Workshops:  July 18 – 6:00 PM – Crestview  July 23 – 1:00 PM – FWB  July 30 – 8:30 AM – FWB  Aug. 6 – 1:00 PM - Crestview  Aug. 8 – 6:00 PM – FWB Sept. 5 Tentative Public Budget Hearing, 6 PM, Crestview Sept. 17 Final Public Budget Hearing, 6 PM, FWB Packet Pg. 9  5.1 BOARD OF COUNTY COMMISSIONERS AGENDA REQUEST DATE: April 16, 2013 TO: Honorable Chairman and Members of the Board FROM: Kay Rasmussen, Interim President, Economic Development Council SUBJECT: Public Hearing - Tax Exemption Approval Talking Parents Documents from the Economic Development Council are attached related to a proposed tax exemption for Project Talking Parents. Packet Pg. 10  5.1.a MEMO Attachment: Project Talking Parents Memo (1601 : Public Hearing - Tax Exemption Approval Talking Parents) Date: April 10, 2013 To: Jim Curry, Okaloosa County Administrator From: Kay Rasmussen, Interim President Subject: Public hearing supporting documents for April 16, 2013 BCC meeting regarding Talking Parents. Project Talking Parents Return on Investment: þ Current jobs: 30 þ End employment (dependent on approval of this incentive): 50 o Retention: 10 o New jobs: 20 þ Average Wage: $56,500; 159% of the Okaloosa Average Wage þ Capital Investment: $1,400,000 þ Retention and Expansion of a company that has been in the county for 12 years þ Industry Diversification County Incentive Requested: Ad Valorem Tax Exemption Program State Incentive: Qualified Targeted Industry Tax Refund Program 80% $75,603 Local Incentive: Ad Valorem Tax Exemption 20% $18,900 (over 10 years) 100% $94,502 Local Exemption Schedule: (Assuming millage at 3.2899) Tangible Personal Real Year-to-Year Property Tax Property Tax Total Year 1 $1,575 $954 $2,529 Year 2 $1,450 $954 $2,404 Year 3 $1,302 $954 $2,256 Year 4 $1,100 $954 $2,054 Year 5 $950 $954 $1,904 Year 6 $811 $954 $1,765 Year 7 $671 $954 $1,625 Year 8 $556 $954 $1,510 Year 9 $490 $954 $1,444 Year 10 $456 $954 $1,410 Total $9,360 $9,540 $18,900 P.O. Box 4097, Fort Walton Beach, FL 32549 - (850)362-6467 Page 1 of 2Packet Pg. 11  5.1.a At the April 2, 2013 board meeting, the Economic Development Council of Okaloosa County requested that the Board of County Commissioners consider providing an Economic Development Ad Valorem Tax Exemption for Project Talking Parents. Project Talking Parents is a business located in Fort Walton Beach, FL who is looking to expand in Okaloosa County. The project has been coded to protect confidentiality pursuant to Florida Statute 288.075. The BCC scheduled a public hearing for the April 16, 2013 BCC meeting. A public notice was advertised on April 5, 2013 (Exhibit C). Attachment: Project Talking Parents Memo (1601 : Public Hearing - Tax Exemption Approval Talking Parents) The ED Ad Valorem Tax Exemption will provide the 20% required local financial support match for the Qualified Target Industry Tax Refund program administered by the state. The proposed resolution (Exhibit A) reflects the Ad Valorem year-to-year values based on assessments conducted by the Okaloosa County Property Appraiser’s office. The proposed ordinance for adoption has also been provided (Exhibit B). After the public hearing and, if adopted, the EDC requests that the Chairman of the Board approve and signed the appropriate resolution in conjunction with the ordinance. The Economic Development Council is requesting that the county provide their predetermined maximum allowable amount through the ED Ad Valorem Tax Exemption program. This would be 100% over 10 years for Tangible Personal Property and Real Property taxes. Comments o The EDC is asking the BCC to consider supporting an Ad Valorem Tax Exemption for the Tangible Personal Property (TPP) and Real Property taxes not currently on the tax roll (future value) for this project. o The amount recommended is lower than the $24,000 max presented to the BCC at the April 2, 2013 board meeting. Based on the calculations presented by the Property Appraiser’s office, the EDC is recommending an $18,900 exemption over 10 years. o With a decreased award, the state’s match will also be lower. The company originally qualified for $6,000 per new job created for a total of $120,000, with the state providing 80% or $96,000 and the county providing 20% or $24,000 as its match over the a time period. However, the company will receive $4,725 per new job created with 80% or $75,602 from the state and 20% or $18,900 from the county should the BCC approve this exemption. o The average wage is to be $56,500 or at least 159% of the average wage in the Okaloosa County area. Comments o Exhibit D – Property Appraiser’s Office Tangible Personal Property and Real Property Exemption calculations for “Project Talking Parents” o Exhibit E – Property Appraiser’s Form DR-418 regarding company’s investment in future purchases. Thank you for your consideration to this request and future development! P.O. Box 4097, Fort Walton Beach, FL 32549 - (850)362-6467 Page 2 of 2Packet Pg. 12  5.1.b Exhibit A QUALIFIED TARGET INDUSTRY TAX REFUND PROGRAM RESOLUTION NO. _____________________ A RESOLUTION BY THE GOVERNING BOARD OF OKALOOSA COUNTY, FLORIDA, RECOMMENDING THAT PROJECT TALKING PARENTS, BE APPROVED AS A QUALIFIED APPLICANT PURSUANT TO §288.106, FLORIDA STATUTES; AND PROVIDING AD VALOREM TAX EXEMPTION OF $18,900 AS LOCAL PARTICIPATION IN THE QUALIFIED TARGET INDUSTRY TAX REFUND PROGRAM WITH HIGH-IMPACT Attachment: Exhibit A - Resolution (1601 : Public Hearing - Tax Exemption Approval Talking Parents) SECTOR BONUS FOR FISCAL YEAR(S) 2014 to 2023, AND PROVIDING FOR AN EFFECTIVE DATE. THE AD VALOREM TAX EXEMPTION YEAR TO YEAR VALUE SHALL BE: 2014 $2,529 2015 $2,404 2016 $2,256 2017 $2,054 2018 $1,904 2019 $1,765 2020 $1,625 2021 $1,510 2022 $1,443 2023 $1,410 BE IT RESOLVED BY THE GOVERNING BOARD OF OKALOOSA, FLORIDA as follows: WHEREAS, the business under consideration is an Information Technology company, specifically, Project Talking Parents; and WHEREAS, Project Talking Parents’ company was first established in the Okaloosa County, Florida area in 2001, is currently located in Fort Walton Beach, Florida and has 30 employees; and WHEREAS, Project Talking Parents is considering an expansion of 20 full time employees through the 2015 time frame, to create high-wage job opportunities and will commit to pay an average wage of $56,500; and WHEREAS, Project Talking Parents has been identified as a Target Industry Business and, moreover, falls within one of the high-impact sectors designated under Florida Statute 288.108, specifically Information Technology and is eligible to apply for the Qualified Target Industry Tax Refund with a High-Impact Sector Bonus, pursuant to s.288.106; and WHEREAS, it is understood by the county that the local participation is required and understood under the provisions of s. 288.106, Florida Statutes, governing the State’s Qualified Target Industry Tax Refund Program; NOW, THEREFORE, BE IT RESOLVED BY THE GOVERNING BOARD OF OKALOOSA COUNTY, FLORIDA that the Board hereby recommends Project Talking Parents be approved as a Qualified Business pursuant to S.288-106, Florida Statutes for the creation of 20 new jobs. BE IT FURTHER RESOLVED, that the Governing Board of Okaloosa County has determined the basis of this project’s average private sector wage commitment calculation shall be 159% of the average annual wage in Okaloosa County; and Packet Pg. 13  5.1.b Exhibit A BE IT FURTHER RESOLVED that the necessary commitment of local financial support for the Qualified Target Industry Tax Refund with High-Impact Sector Bonus exists for Project Talking Parents in the amount of $18,900, which includes $12,000 for the Qualified Target Industry Tax Refund and $6,900 for the High-Impact Sector Refund. This amount will be made available via county ad valorem tax exemption, as authorized under Section 196.1995 Florida Statutes. The County has authorized a tax exemption for Project Talking Parents for a term of 10 years as provided by the aforesaid statute. This resolution shall take effect immediately upon its adoption. Attachment: Exhibit A - Resolution (1601 : Public Hearing - Tax Exemption Approval Talking Parents) DULY ADOPTED BY THE GOVERNING BOARD OF OKALOOSA COUNTY, FLORIDA this 16th day of April, 2013. Okaloosa County, Florida Board of County Commissioners ___________________________________