Subject:
Title
Execution of the Purchase Agreement with The Sherwin-Williams Company for state tax credits.
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Recommended Action:
Recommended Action
Execution by the County Administrator of the Purchase Agreement for state tax credits with The Sherwin-Williams Company (Sherwin).
Contract 178-0192-B(AM); this purchase agreement results in a net revenue amount of $305,321.04 to the County General Fund.
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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:
This purchase agreement represents the sale of three (3) tax credit certificates to Sherwin, owned by the County with a combined face value of $338,831.47. The purchase agreement is the result of brokerage services performed by Clocktower Tax Credits, LLC (Clocktower) to market County tax credit certificates in an attempt to maximize the County’s investment to voluntarily cleanup three Brownfield sites.
Background/Explanation:
The tax credit certificates were obtained by the County through the State of Florida Department of Environmental Protection Voluntary Cleanup Tax Credit (VCTC) Program. The program provides incentives for the cleanup up to $500,000, and then an additional incentive for achieving a Site Rehabilitation Completion Order (SRCO).
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 utilized 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) 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 June 19, 2018, The Board of County Commissioners approved the Agency Agreement with Clocktower Tax Credits, LLC for brokerage services pertaining to the sale of tax credits and further authorized the County Administrator to execute subsequent purchase agreements.
Fiscal Impact:
The sale of Tax Certificates 680, 707, and 712 will generate net combined revenue in the amount of $305,321.04, inclusive of face value revenue less Clocktower’s brokerage fee.
Summary of Site Cleanup Costs and VCTC Face-Value Revenues:
Eligible cleanup costs for the Dansville North Landfill Site were $690,008 in 2011. In 2014, the County applied for a tax credit face-value of $438,047 and in 2017 the County applied for a tax credit face-value of $172,502.
Eligible cleanup costs for the Dansville South Landfill Site were $345,202 in 2011. In 2014, the County applied for a tax credit face-value of $172,601 and in 2017 the County applied for a tax credit face-value of $114,930.
Eligible Cleanup costs for the 126th Avenue landfill were $103,500 in 2015. In 2016, the County applied for a tax credit face-value of $51,399.
The VCTC net revenue of $305,321.04 will be returned to the General Fund.
Delegated Authority:
Authority for the County Administrator to execute this purchase agreement was granted by the Board on June 19, 2018.
Staff Member Responsible:
Andrew W. Pupke, Director, Real Estate Management
Joe Lauro, Director, Purchasing
Partners:
Florida Department of Environmental Protection
Attachments:
Purchase Agreement for State Tax Credits