Okaloosa County BOCC — December 18, 2012 — EDC UpUnder — reading text

MEMO Date: January 30, 2013 To: County Administrator Jim Curry From: Kay Rasmussen, Interim President Subject: Project UpUnder Project UpUnder Return on Investment:  Current jobs: 0 New jobs: 67+  Average Wage: $40,400; 113% of the Okaloosa Average Wage  Capital Investment: $22,600,000+  New company with the potential to employ 350 jobs in the first 5 years  Diversification via shoulder season enhancement County Incentive Requested: Ad Valorem Tax Exemption Program State Incentive: Qualified Targeted Industry Tax Refund Program 0% $0 Local Incentive: Ad Valorem Tax Exemption 100% $316,304 100% $316,304 Local Exemption Schedule: (Assuming millage at 3.2899) Tangible Personal Real Year-to-Year Property Tax Property Tax Total Year 1 $28,370 $13,921 $42,291 Year 2 $26,392 $13,921 $40,313 Year 3 $23,295 $13,921 $37,216 Year 4 $20,876 $13,921 $34,797 Year 5 $18,477 $13,921 $32,398 Year 6 $16,600 $13,921 $30,521 Year 7 $13,659 $13,921 $27,580 Year 8 $11,419 $13,921 $25,340 Year 9 $9,524 $13,921 $23,445 Year 10 $8,482 $13,921 $22,403 $177,094 $139,210 $316,304 P.O. Box 4097, Fort Walton Beach, FL 32549 - (850)362-6467 Page 1 of 2 The Economic Development Council of Okaloosa County requests the Board of County Commission’s consideration in providing an Economic Development Ad Valorem Tax Exemption for Project UpUnder. Project UpUnder’s desire is to open their business in Destin, Florida. For this project, the Economic Development Ad Valorem Tax Exemption will be the only incentive that the company is eligible for and if approved, the only incentive the company will receive. This action is pivotal to the company’s final decision to open their business or not; if this incentive is not offered, the project may not come to fruition. It is important to note that this company has the potential to employ up to 350 employees in the next few years and will provide much needed, and desired, economic stability during the tourism shoulder season. 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. If the BCC approves to move forward with assisting this company to set up business through the Ad Valorem Tax Exemption, the EDC requests the BCC to schedule and advertise a public hearing for an upcoming BCC meeting. The year-to-year values presented above are based on assessments conducted by the Okaloosa County Property Appraiser’s office. 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 2