Subject:
Title
Termination Agreement for the Employment Sites Program Grant Funding Agreement with Sunshine Properties, LLP.
label
Recommended Action:
Recommended Action
Approval and execution by the County Administrator of a Termination Agreement between Pinellas County and Sunshine Properties, LLP relating to the original Employment Sites Program Grant Funding Agreement that Pinellas County and Sunshine Properties, LLP entered into on May 23, 2023 which was recorded in Official Records Book #22468 at Page #919, of the Public Records of Pinellas County, Florida.
• Sunshine Properties, LLP requested the termination of the ESP Agreement on December 30, 2024. At the time of the termination request, they had received one of three payments in the amount of $135,090.00.
• Sunshine Properties, LLP issued Pinellas County a refund of the payment through check #508 in the amount of $135,090.00, meeting the obligations required to terminate the ESP Agreement.
• The check was deposited on January 28, 2025 and cleared the bank on February 5, 2025.
• The project, construction of two industrial buildings totaling 11,755 square feet, will continue without the assistance of the ESP funds.
• Funding for this project was included in the FY25-FY30 Capital Improvement Program plan under the Economic Development Capital Projects (project 004149A). This project was 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.
• Approval of the termination of this agreement will decrease the total amount of Penny IV Economic Development funds committed to $46,774,694.00 out of the $93,382,000.00 currently estimated in all ten years of Penny IV.
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:
Sunshine Properties, LLP represented Dosatron, the original inventor of the water-powered dosing pump, and the full tenant of the space at 2090 Sunnydale Boulevard in Clearwater. In October 2022, Ingersoll Rand purchased Dosatron, but the transaction did not include the industrial facility. Sunshine Properties, LLP decided to terminate the ESP Agreement on December 30, 2023, when they were unable to provide the necessary information on the required Annual Report portion of the Agreement. Following the termination request, economic development staff provided Sunshine Properties, LLP a request for repayment of $135,090.00 that had been paid as part of a three-payment process to the organization. Check #508 in the amount of $135,090.00 was issued to the County and was deposited and cleared the bank on February 5, 2025. The Termination Agreement will be the final piece of the process to terminate the existing ESP Agreement. Once the document is executed, economic development staff will request that the document be recorded with the property to show the original agreement has been terminated. The business has remained in the space, and the construction of the new buildings are underway with a completion date later this summer.
Background/Explanation:
The third application cycle for the County’s Employment Sites Program opened on February 1, 2022 and closed on April 4, 2022. Sunshine Properties LLP requested assistance to fund the unexpected infrastructure costs associated with the expansion of the existing site to accommodate two new industrial buildings. Additional requirements include a fire sprinkler system installation and costs associated with stormwater regulations.
The Employment Sites Program Grant Funding Agreement was executed on May 23, 2023 and made a public record with the property (2090 Sunnydale Blvd, Clearwater). One payment was made to Sunshine Properties, LLP on August 23, 2023 in the amount of $135,090.00.
On December 30, 2024, economic development staff received a notice from Sunshine Properties, LLP requesting the termination of their agreement. Economic development staff provided next steps including the repayment of funds that the owner received. Sunshine Properties, LLP returned the funds in full.
This Termination Agreement is the next step in the process to terminate the original ESP Agreement. Following an executed Termination Agreement, economic development staff will then request that the document be recorded through the Clerk’s office.
Fiscal Impact:
Funding for this project was included in the FY25-FY30 Capital Improvement Program plan under the Economic Development Capital Projects (project 004149A). This project was 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.
Approval of the termination of this agreement will decrease the total amount of Penny IV Economic Development funds committed to $46,774,694.00 out of the $93,382,000.00 currently estimated in all ten years of Penny IV.
Delegated Authority:
Funding for the net new 11,755 square foot industrial structures in the amount of $405,275.00 was approved by the Board at its September 22,2022 meeting, and delegated authority was given to the County Administrator to negotiate and execute all agreements and documentation. It is due to the original delegated authority that the County Administrator can also execute the Termination Agreement.
Staff Member Responsible:
Cynthia Johnson, Director, Economic Development
Teresa Brydon, Business Development Manager, Economic Development
Partners:
N/A
Attachments:
Termination Agreement