Fort Walton Beach Resolution — 2016-24--EDATE--Project Hook II — reading text

i RESOLUTION 2016- 24 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA, RECOMMENDING PROJECT HOOK II, BE APPROVED AS A QUALIFIED TARGET INDUSTRY BUSINESS PURSUANT TO SECTION 288. 106, FLORIDA STATUTES; AFFIRMING THIS IS A MANUFACTURING PROJECT; . PROVIDING FOR LOCAL FINANCIAL SUPPORT IN THE FORM OF AD VALOREM TAX EXEMPTION FOR THE QUALIFIED TARGET INDUSTRY TAX REFUND WITH HIGH-IMPACT SECTOR AND HIGH-WAGE BONUS; PROVIDING FOR AN EFFECTIVE DATE. THE AD VALOREM TAX EXEMPTION YEAR-TO- YEAR VALUE SHALL BE: 2018 - 1, 673 2019 -$ 5, 209 2020 - $ 5, 315 2021 - $ 4, 854 2022 - $ 4, 325 2023 - $ 3, 910 2024 -$ 3, 526 2025 - $ 3, 087 2026 -$ 2, 725 2027 - $ 2, 490 BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA, as follows: WHEREAS, the business under consideration is a manufacturing business, specifically, Project Hook II; and WHEREAS, Project Hook II is an operation located in another state that is looking to relocate their company into the City of Fort Walton Beach in Okaloosa County, Florida. This company manufactures a product that serves both civil and military aircraft. Furthermore, their product is used internationally and the company will outsource parts of the manufacturing process to sub suppliers in close proximity to the potential new location; and WHEREAS, Project Hook II intends to locate in one of two potential locations in the Fort Walton Beach Commerce and Technology Park, specifically 629 Anchors Street NW or 654 Anchors Street NW. 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; and WHEREAS, Project Hook II 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 Transportation Equipment Manufacturing, and is eligible to apply for the Qualified Target Industry Tax Refund with High-Impact Sector Bonus; and WHEREAS, Project Hook II has committed to pay an average annual wage of$ 65, 000, which is approximately 172% of the average wage in Okaloosa County, and is eligible for the 150% high wage bonus; and WHEREAS, the City of Fort Walton Beach hereby acknowledges that local financial support of 20% of the total tax refund is required under the provisions of Section 288. 106, . Florida Statutes, governing the State' s Qualified Target Industry Tax Refund Program; WHEREAS, Okaloosa County has agreed to participate in the provision of local financial support by committing $ 22, 069, which is less than 20 percent of the total required QTI local financial support. When combined with the City of Fort Walton Beach' s exemption, it will then be more than 20 percent of the total refund requested, and will be provided in the form of ad i RESOLUTION 2016- 24 valorem tax exemptions granted to Project Hook II, pursuant to Section 196. 1995, Florida Statutes. This amount will be made available in accordance with the guidelines set forth by the Department of Economic Community with the stipulation that these funds are intended to represent local financial support pursuant to Section 288. 106, Florida Statutes. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA, that the City Council hereby recommends Project Hook II be approved as a Qualified Target Industry Business pursuant to Section 288. 106, Florida Statutes. BE IT FURTHER RESOLVED that the necessary local financial support for the Qualified Target Industry Tax Refund with High- Impact Sector Bonus and High- Wage Bonus exists for Project Hook II in the amount of $37, 115, which includes $ 4, 000 for the Qualified Target Industry Tax Refund and $ 2, 000 for the High- Impact Sector Refund. This resolution shall take effect immediately upon its adoption. DULY ADOPTED BY THE CITY COUNCIL OF THE CITY OF FORT WALTON BEACH, FLORIDA, this 13`" day of December, 2016. Adopted: / 7eCem hP, e !. 3 ,. ai Mike Anderson, Mayor Attest: Approved for form, legal s cy Ki , .< Barn ;,_ ' Clerk aywa ykes, Jr., Ci orne t `: , t,•;, ti ;. a s r; -- ;:>- a U ; t-----' . .. p a' {, t, ^ a• fi '':_` `