Subject:
Title
Employment Sites Program Funding Agreement for a sum of not-to-exceed $223,000.00 to McCormick Stevenson for the redevelopment of an existing 16,000 square foot retail furniture space into their headquarter and manufacturing operations.
label
Recommended Action:
Recommended Action
Approval and execution by the County Administrator of an Employment Sites Program (ESP) Funding Agreement for a sum of not-to-exceed $223,000.00 to McCormick Stevenston for the redevelopment of an existing 16,000 square foot retail furniture space into their headquarter and manufacturing operations in Dunedin.
• Funding for the redevelopment of the 16,000 square foot headquarter and manufacturing operations space in the amount of $221,000.00 was approved by the Board at its June 11, 2024, meeting, and delegated authority was given to the County Administrator to negotiate and execute all agreements and documentation. (Granicus Item 24-0875A)
• The redevelopment of the former retail space into office and manufacturing space will provide Pinellas County with new location for industrial use that should provide employment opportunities to the county residents and to bring in new revenue opportunities.
• The total project budget is estimated to be $1,015,000.00 million. The total requested County portion of this project is a not-to-exceed amount of $223,000.00. The $2,000.00 increase from the recommended amount of $221,000.00 is due to the cost of ESP Financial Reviews, which will cover some or all of the cost associated with a third-party review.
• The business intends to add 12 new science and engineering jobs with the completion of the project.
• The grant will fund the retrofits required to convert the retail space into industrial space to accommodate the new manufacturing and test facility component of their expansion.
• Funding for this project is included in the FY24-FY29 Capital Improvement Program plan under the Economic Development Capital Projects (project 004149A). This project is funded by Local Infrastructure Sales Surtax (Penny for Pinellas), as part of the 8.3% countywide investment for Economic Development and Housing, half of which, or 4.15%, is set aside for Economic Capital Projects specifically. Total available funding is the amount of the full project allocation as represented in the approved budget. Available funding in excess of the recommended not-to-exceed amount is available for other project costs.
Body
Strategic Plan:
Foster Continual Economic Growth and Vitality
4.1 Proactively attract, expand, and retain businesses with targeted jobs to the county and the region
4.4 Invest in infrastructure to meet current and future needs
Deliver First Class Services to the Public and Our Customers
5.1 Maximize partner relationships and public outreach
5.2 Be responsible stewards of the public’s resources
Summary:
McCormick Stevenson has grown to become a significant leader in Pinellas County’s Defense Industrial base. Founded in 1999, they currently have 50 engineering and technology positions and they are a growing Department of Defense Prime Contractor. Economic Development’s Business Development team has been assisting this company since 2005, helping them with expansions, workforce and training grants.
Background/Explanation:
The sixth application cycle for the County’s Employment Sites Program opened on December 11, 2023, and closed on February 16, 2024. McCormick Stevenson, applied for funding to assist in the redevelopment of an existing 16,000 square foot retail furniture space into their headquarter and manufacturing operations. Improvements will convert a portion of the existing retail space into manufacturing and laboratory areas and will require, among other things, raising the ceiling height in the premises to allow for on-site prototyping and precision measurement equipment, as well as the addition of a ground floor roll-up door to permit military vehicle access.
The Agreement has a termination date of twenty (20) years from the Effective Date and has three payments based on benchmarks on obtaining two mid-point permit approvals and the final payment with the completion of the Installation of the Overhead Doors. For a period of the first ten (10) years of the Agreement, the owner will provide an annual report to Pinellas County identifying the total commercial square footage used and the total number of jobs with their average wages for the structure.
The owner will be responsible for maintaining and operating the industrial manufacturing building for the term of the Agreement. If the owner defaults on the Agreement, there is a process identified for the repayment of grant funds based on the time of the default.
Fiscal Impact:
Funding for this project is included in the FY24-FY29 Capital Improvement Program plan under the Economic Development Capital Projects (project 004149A). This project is funded by Local Infrastructure Sales Surtax (Penny for Pinellas), as part of the 8.3% countywide investment for Economic Development and Housing, half of which, or 4.15%, is set aside for Economic Capital Projects specifically.
Total available funding is the amount of the full project allocation as represented in the approved budget. Available funding in excess of the recommended not-to-exceed amount is available for other project costs.
Delegated Authority:
Funding for the assist in the redevelopment of an existing 16,000 square foot retail furniture space into their headquarter and manufacturing operations was approved by the Board at its June 11, 2024 meeting, and delegated authority was given to the County Administrator to negotiate and execute all agreements and documentation.
Staff Member Responsible:
Cynthia Johnson, Director, Economic Development
Teresa Brydon, Business Development Manager, Economic Development
Partners:
City of Dunedin
Attachments:
Employment Sites Program Funding Agreement
Applicant Overview Page