Subject:
Title
Resolution approving A7010327720 as a qualified applicant for the Qualified Target Industry Tax Refund program.
Recommended Action
Recommended Action
Adopt a resolution approving A7010327720 as a qualified applicant pursuant to Section 288.106, Florida Statutes, and identify sources of local County financial support of Project A7010327720 as local participation in the Qualified Target Industry Tax Refund program.
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 A7010327720 is a defense manufacturing and engineering facility that is expanding with both job creation and capital investment components.
Background Information:
Project A7010327720 is a defense manufacturing and engineering facility that is expanding within unincorporated Pinellas County. The economic impact of the project’s capital investment is $17 million. An estimated 147 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 $46,346.00. These earnings would result in an economic impact of $10.8 million and a total of 250 direct and indirect new jobs. An additional site the company is considering is in Kansas.
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 $735,000.00 which is calculated at $5,000.00 per job with a total of 147 new jobs. The $5,000.00 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% 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 A7010327720 is requesting the Board of County Commissioners to provide 100% of the local match necessary to facilitate the State approval process due to the company expanding in unincorporated Pinellas County. The total local financial support requested is $147,000.00, which 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:
N/A
Attachment:
Resolution