Subject:
Title
Termination of the Tax Exemption Performance Agreement with Jabil Inc. for the Phase I Economic Development Ad Valorem Tax Exemption Program.
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Recommended Action:
Recommended Action
Approval and execution by the County Administrator of the termination of the Tax Exemption Performance Agreement between Pinellas County and Jabil Inc. associated with the Phase I Economic Development Ad Valorem Tax Exemption (ADVTE) Program.
• Jabil requested that the County revoke Ordinance No. 2020-31 and terminate the associated Performance Agreement.
• On April 7, 2026, the Board adopted Ordinance 26-15 providing for the revocation of Ordinance 2020-31 declaring the Ordinance repealed and null and void and of no further effect.
• Consistent with Revocation Ordinance No. 26-15, termination of the Performance Agreement will formally conclude the contractual obligations between the County and Jabil related to the Phase I ADVTE project.
• This termination of the Tax Exemption Performance Agreement itself has no fiscal impact on Pinellas County. The Agreement’s termination concludes the contractual obligations related to the revoked Phase I ad valorem tax exemption.
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Strategic Priorities:
Prosperity and Opportunity
3.5 Foster business growth
Summary:
On October 20, 2020, the Board of County Commissioners (Board) approved Ordinance No. 2020-31 granting Jabil Inc. a Phase I Economic Development Ad Valorem Tax Exemption for qualifying improvements to real property and tangible personal property at its facility located at 10900 Roosevelt Boulevard North in St. Petersburg.
As required by Ordinance No. 2020-31, Pinellas County and Jabil Inc. entered into a Tax Exemption Performance Agreement establishing the company's obligations related to job creation, investment, reporting requirements, and continued eligibility for the exemption.
Jabil requested that the County revoke Ordinance No. 2020-31 and terminate the associated Performance Agreement. On April 7, 2026, the Board adopted Ordinance 26-15 providing for the revocation of Ordinance 2020-31 declaring the Ordinance repealed and null and void and of no further effect. Consistent with Revocation Ordinance No. 26-15, termination of the Performance Agreement will formally conclude the contractual obligations between the County and Jabil related to the Phase I ADVTE project.
Background/Explanation:
Pursuant to Article VII, Section 3, of the Constitution of the State of Florida and Section 196.1995, Florida Statutes, the State has provided for a local Economic Development Ad Valorem Tax Exemption Program upon the successful passage of a referendum.
By a referendum held on August 26, 2014, the electors of Pinellas County authorized the local establishment of the program providing for the granting of ad valorem tax exemptions, which may be renewed for a subsequent ten-year period if approved by subsequent referendum.
On January 23, 2018, the Board of County Commissioners of Pinellas County, Florida (the “Board”) adopted Ordinance 2018-08, amending previously adopted Ordinance 2014-56, and codified in Chapter 118, Article VII of the Pinellas County Code (the “Master Ordinance”) authorizing the granting of such exemptions.
In a referendum held on August 20, 2024, the electors of Pinellas County renewed the authorization to grant ad valorem tax exemptions.
On November 19, 2024, the Board adopted Ordinance 24-37, amending Chapter 188, Section 118-181 of the Pinellas County Code extending the authority to grant economic development ad valorem tax exemptions to August 21, 2034.
On October 20, 2020, the Board adopted Ordinance 2020-31 approving Jabil, Inc.’s Phase I application to Pinellas County requesting an ad valorem tax exemption for 100% of the assessed value of the qualifying improvements to real property and qualifying tangible personal property specified in its application.
On December 15, 2020, as a condition of receiving the exemption, Jabil executed a Tax Exemption Performance Agreement with Pinellas County establishing the terms, conditions, reporting requirements, and performance obligations associated with the incentive.
Since approval of the Phase I exemption, Jabil has significantly expanded its manufacturing operations within Pinellas County, adding more than 1,000 high-wage manufacturing positions across additional facilities and investing substantially beyond the commitments originally contemplated under the Phase I project. However, due to changes in its business model and operational footprint, Jabil requested that the County revoke the Phase I exemption and terminate the associated Performance Agreement.
On April 7, 2026, the Board adopted Ordinance 26-15 providing for the revocation of Ordinance 2020-31 declaring the Ordinance repealed and null and void and of no further effect.
Section 3 of Ordinance No. 26-15 authorizes dissolution of the existing Performance Agreement upon staff's determination that all requirements of the Agreement have been satisfied and authorizes the County Administrator to execute any documents necessary to effectuate the dissolution and termination of the Agreement.
County staff has reviewed Jabil's performance under the Agreement and consulted with the Property Appraiser’s office and determined that the company has fulfilled its obligations under the Performance Agreement. Accordingly, staff recommends terminating the Agreement in accordance with Ordinance No. 26-15.
Termination of the Agreement will formally conclude the contractual relationship associated with the Phase I ADVTE incentive and eliminate any future reporting or administrative requirements related to that project.
Fiscal Impact:
Jabil was not entitled to receive the ad valorem tax exemption for years 2023, 2024, and 2025. Jabil was requested to pay the Property Appraiser a total sum not to exceed $32,601.28 as full and final payment. Per the Property Appraiser’s office, Jabil has reimbursed $4,656.34 Tangible Personal Property and $27,944.94 Real Property totaling $32,601.28 for years 2023, 2024, and 2025.
This termination of the Tax Exemption Performance Agreement itself has no fiscal impact on Pinellas County. The Agreement’s termination concludes the contractual obligations related to the revoked Phase I ad valorem tax exemption.
Delegated Authority:
Delegated authority was given to the County Administrator under Section 3 of Ordinance No. 26-15 to sign any necessary documentation to effectuate the dissolution and termination of the Performance Agreement.
Staff Member Responsible:
Dr. Cynthia Johnson, Director, Economic Development
Partners:
N/A
Attachments:
Termination of Agreement between Pinellas County and Jabil Inc.
Ordinance No. 26-15
Jabil Tax Exemption Performance Agreement FE