Subject:
Title
Resolution approving B4100252787 as a Qualified Applicant for the Qualified Target Industry Tax Refund Program.
label
Recommended Action
Recommended Action
Approve Project B4100252787 as a qualified applicant pursuant to Section 288.106, Florida Statutes, and identify sources of local county financial support for local participation in the Qualified Target Industry Tax Refund Program.
Project B4100252787 is a food manufacturer wishing to expand its headquarters within the County. The economic impact of the project’s capital investment is $6.9 million. An estimated 12 employees are projected to be hired with annual pay scales at least 115% of the average annual wage for the state. These earnings would result in an economic impact of $984,569 and a total of 19 direct and indirect new jobs. The company is also considering sites in Malaysia, France and China.
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 B4100252787 is a food manufacturer that would like to expand its headquarters, with both job creation and capital investment components.
Background Information:
Project B4100252787 is a food manufacturer that wishes to expand its headquarters within the County. The economic impact of the project’s capital investment is $6.9 million. An estimated 12 employees are projected to be hired with annual pay scales of at least 115% of the average annual wage for the State of Florida, which is $42,904. These earnings would result in an economic impact of $984,569 and a total of 19 direct and indirect new jobs. Additional sites the company is considering are in Malaysia, France and China.
The economic impacts were calculated using the U.S. Bureau of Economic Analysis Regional Input Modeling System (RIMS II) Model for the County.
Fiscal Impact:
The total tax refund is $60,000 which is calculated at $5,000 per job with a total of 12 new jobs. The $5,000 per job calculation is based on pay scales of at least 115% 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 B4100252787 is requesting the Board to provide 50% of the local match necessary to facilitate the State approval process, with the City of Clearwater providing the additional 50%. The total local financial support requested is $12,000 of which $6,000 (50% of the local match) is being requested through the County 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
Partners:
City of Clearwater