Subject:
Title
Resolution approving B6030335555 as a Qualified Applicant for the Qualified Target Industry Tax Refund Program.
label
Recommended Action
Recommended Action
Approve B6030335555 as a qualified applicant pursuant to Section 288.106, Florida Statutes, and identify sources of local county financial support for participation in the Qualified Target Industry Tax Refund Program.
B6030335555 is an attraction project in the aviation/aerospace industry wishing to relocate to Pinellas County. The economic impact of the project’s capital investment is $698,000. An estimated 125 employees are projected to be hired with annual pay scales of at least 150% of the average annual wage for the state. These earnings would result in an economic impact of $15.8 million and a total of 238 direct and indirect new jobs. The company is also considering a site in New Jersey.
Body
Strategic Plan:
Foster continual economic growth and vitality
4.1 Proactively attract and retain businesses with targeted jobs to the county and the region.
Summary:
Project B6030335555 is an attraction project in the aviation/aerospace industry that wishes to relocate to Pinellas County, with both job creation and capital investment components.
Background Information:
Project B6030335555 is an attraction project in the aviation/aerospace industry that wishes to relocate to Pinellas County. The economic impact of the project’s capital investment is $698,000. An estimated 125 employees are projected to be hired with annual pay scales of at least 150% of the average annual wage for the State of Florida, which is $42,904. These earnings would result in an economic impact of $15.8 million and a total of 238 direct and indirect new jobs. An additional site the company is considering is in New Jersey.
This project was previously submitted to the Board and approved at the July 21, 2015 Board meeting with a QTI award amount $7,000 per job based on pay scales of at least 200% of the average annual wage for the State of Florida, which is $42,904.
The economic impacts were calculated using the U.S. Bureau of Economic Analysis Regional Input Modeling System (RIMS II) Model for Pinellas County.
Fiscal Impact:
The total tax refund is $750,000 which is calculated at $6,000 per job with a total of 125 new jobs. The $6,000 per job calculation is based on pay scales of at least 150% of the State of Florida's average annual wage, and a high impact sector bonus. This incentive returns a portion of taxes paid by the business after the company meets its job creation and wage commitments. Additionally, no more than 25 percent of the total refund approved may be taken in any single fiscal year.
Florida Statute requires 20% local financial participation as tax refunds become due. Project B6030335555 is requesting the Board to provide 50% of the local match necessary to facilitate the State approval process, with the City of Seminole providing the additional 50%. The total local financial support requested is $150,000 of which $75,000 (50% of the local match) is being requested through Pinellas County Government and will be budgeted within the Department of Economic Development through the general fund. The tax refund will be paid over a series of fiscal years as determined by the State
Staff Member Responsible:
Michael Meidel, Director, Economic Development Department
Partners:
City of Seminole