Subject:
Title
Award of bid to Clocktower Tax Credits, LLC for brokerage services pertaining to the sale of tax credits.
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Recommended Action:
Recommended Action
Approval and execution of the Agency Agreement with Clocktower Tax Credits, LLC. (Clocktower) for brokerage services pertaining to the sale of tax credits.
Provide authority for the County Administrator to execute subsequent Purchase Agreements for state tax credits between the County and the Purchaser.
Contract 178-0192-B(AM) in an amount of $305,321.04 on the basis of being the most responsive, responsible bid meeting specifications in the form of the best combined net revenue to the County. Chairman to sign and Clerk of Court to attest.
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Strategic Plan:
Practice Superior Environmental Stewardship
3.3 Protect and improve the quality of our water, air, and other natural resources
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:
The purpose of this competitive process was to retain brokerage services to market County tax credit certificates for the purpose of maximizing the County’s return on investment. These tax credit certificates were received under the Voluntary Cleanup Tax Credit (VCTC) Program for site rehabilitation activities at the 126th Avenue Landfill and in Dansville. The combined face value of the three (3) certificates available for sale is $338,831.47 with a net revenue to the County in the amount of $305,321.04.
Background Information:
The State of Florida VCTC program serves as the primary state financial incentive to encourage the voluntary cleanup and redevelopment of Brownfield sites and plays a key role in driving investment in Brownfield areas. Tax credits are issued by the state following application and successful completion of cleanup activities. VCTC certificates are used to offset Florida corporate income tax. Local governments can transfer their tax credit certificates to an entity that has a Florida corporate income tax liability. Sale of the tax certificates generates revenue now, which can be used to perpetuate cleanup activities at other County Brownfield sites.
The application for the Brownfield VCTC incentive resulting from completion of environmental responsibilities performed at the 126th Avenue landfill (certificate number 680) was approved by the Board of County Commissioners (Board) in January, 2015. The applications for the VCTC incentives for cleanup activities at the Dansville North and South Historic Landfill sites, certificate numbers 707 and 712 respectively, were approved by the Board on March 2, 2016.
On February 8, 2018, the Purchasing Department, on behalf of the Real Estate Management Department, released an invitation to bid for these services resulting in two (2) responsive submittals.
Fiscal Impact:
Under the terms of the Agency Agreement with Clocktower, the County will pay Clocktower a fee equal to all proceeds in excess of $0.9011 per dollar of tax credit sold to any purchaser. Sale of Tax Certificates 680, 707, and 712 will generate combined revenue in the amount of $305,321.04, inclusive of Clocktower’s fee.
The VCTC revenue will be directed back to the General Fund.
Staff Member Responsible:
Andrew W. Pupke, Director, Real Estate Management
Joe Lauro, Director, Purchasing
Partners:
Florida Department of Environmental Protection
Attachments:
Agency Agreement