BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY

Transcription

1 7A BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY PLACEMENT: REQUESTS AND PRESENTATIONS PRESET: TITLE: THE BUSINESS DEVELOPMENT REQUESTS AN OPPORTUNITY TO PRESENT TO THE BOARD THEIR PROPOSED JOBS CREATION TOOLKIT AGENDA ITEM DATES: MEETING DATE: 5/4/2010 COMPLETED DATE: 4/22/2010 COUNTY ATTORNEY: 4/12/2010 ASSISTANT COUNTY ADMINISTRATOR: 4/19/2010 REQUESTED BY: DEPARTMENT: PREPARED BY: Name: Ron Bunch, BDB Executive Director Name: Procedures: None EXECUTIVE SUMMARY: Department of Administration David Graham Director of Administration The Job Creation Toolkit is an innovative proposal to the Board of County Commissioners that addresses competitive disadvantages in economic development and better positions the community to create high wage jobs, generate recurring sales to existing small businesses, and diversify the tax base. With unprecedented community support, including the business community and social service providers, the Job Creation Toolkit provides a structure for conservative incentives to targeted businesses for expansion and relocation as an inducement to job creation. Funds allocated for the Job Creation Toolkit are limited to incentives and capacity building projects for initiatives that directly benefit targeted businesses. APPROVAL: CA 800c08b1 PDF Page 1 of 45

2 BACKGROUND/RELATED STRATEGIC GOAL: Detail of the Job Creation Toolkit will be provided via Supplemental Memorandum prior to the meeting. ISSUES: N/A RECOMMENDED ACTION: RECOMMENDATION Please refer to the Supplemental Memorandum. ALTERNATIVE RECOMMENDATIONS See above. FISCAL IMPACT: RECOMMENDATION Please refer to the Supplemental Memorandum. Funding Source County Funds Non-County Funds Authorization Subtotal Project Total ALTERNATIVE RECOMMENDATIONS See above. DOCUMENT(S) REQUIRING ACTION: Budget Transfer / Amendment Chair Letter Contract / Agreement Grant / Application Notice Ordinance Resolution Other: ROUTING: _ ADM _ BLD _ CDD _ COM _ ENG _ FRD _ GMD _ GSD _ ITS _ LIB _ MCA _ MPO _ PRD _ USD X CA _ ACA _ LEG 800c08b1 PDF Page 2 of 45

3 800c08b1 PDF Page 3 of 45

4 BCC MEETING DATE: May 4, 2010 AGENDA ITEM: 7A TO: VIA: FROM: MARTIN COUNTY, FLORIDA SUPPLEMENTAL MEMORANDUM Honorable Members of the Board DATE: April 29, 2010 of County Commissioners Taryn Kryzda Acting County Administrator David Graham, Director of Administration SUBJECT: THE BUSINESS DEVELOPMENT BOARD REQUESTS AN OPPORTUNITY TO PRESENT TO THE BOARD THEIR PROPOSED JOB CREATION TOOLKIT Representatives of the Business Development Board (BDB) will formally present to the Commission a Job Creation Toolkit. Following the BDB presentation and subsequent discussion, the Board will be asked to take four actions that would enable the toolkit to be implemented. Following are the actions that the Board will need to make decisions on: 1. ECONOMIC DEVELOPMENT FUND Established in 1974, in Chapter 71, Article 2 of the County s Code of Ordinances, the Economic Development Fund was created for the purpose of promoting and fostering the economic development of Martin County, inducing additional investment, desirable industries and agriculture in said County, and bringing additional year round payrolls to supplement the present economy. Such uses and purposes are hereby declared to be a County purpose. Please note that cap language, paralleling the County s general fund reserves policy is included for this fund. Recommended is a cap of 5% of the then current general fund balance with excess, above that ceiling, going directly into the general fund. To provide adequate and sustainable revenues for this fund, recommended is dedicating 50% of the property taxes that will be paid by the new FP&L Solar Array to the Economic Development Fund when those collections commence. Recommended Action: Dedicate funds from the new property tax collections of the FP&L Solar Array in an amount not to exceed 50% annually and initiate a cap on that fund of 5% of the General Fund balance with any excess amount going directly into the General Fund. Alternate Recommendation 1: Dedicate the funds from the FP&L Solar Array in an amount not to exceed a specific percentage determined by the Commission annually and initiate a cap on that fund of 5% of the General Fund balance with any excess amount going directly into the General Fund. Alternate Recommendation 2: Do not fund the Economic Development Fund beyond it current budget. Page 1 of 1 adm2010m417 SUPPLEMENTAL.docx PDF Page 4 of 45

5 BCC MEETING DATE: May 4, 2010 AGENDA ITEM: 7A 2. IMPACT FEE AND BUILDING PERMIT MITIGATION POGRAM As a means to help create jobs and encourage reuse of existing vacant or underutilized commercial/industrial space, the already established Impact Fee Relief program could be expanded to include building permit fees. The Board of County Commissioners may choose to sunset this program after 2 years, or review its continuation on an annual basis. Recommended Action: Direct staff to prepare amendments to the Impact Fee Mitigation Ordinance to include waiver of qualified building permit fees and to advertise for a Public Hearing on that ordinance to be held on June 8. Alternate Recommendation: Do not amend the ordinance. 3A. TAX ABATEMENT (EXEMPTION) PROGRAM Section , Fla. Stat., provides that the Board of County Commissioners may hold a referendum to allow the voters to determine whether to grant authority for economic development ad valorem tax exemptions to new and expanding businesses in Martin County under Section 3, Article VII of the State Constitution. To enhance our competitive position, the BBDBMC requests that the County call for a referendum on the question of whether Martin County may grant economic development ad valorem tax exemptions on the Primary Election Ballot scheduled for August 24, Recommended Action: Adopt the attached resolution directing the Martin County Supervisor of Election to place on the August 24, 2010 Primary Election ballot a referendum regarding the Tax Abatement Program. Alternate Recommendation: Do not adopt the resolution. 3B. TAX ABATEMENT (EXEMPTION) PROGRAM Recommended Action: Direct staff to advertise for a June 8, 2010 Public Hearing on the attached ordinance enabling the establishment of an ad valorem tax exemption program following an affirmative vote by the electorate on the August 24, 2010 Primary Election. Alternate Recommendation: Do not advertise the ordinance. Page 2 of 2 adm2010m417 SUPPLEMENTAL.docx PDF Page 5 of 45

6 Martin County Recommendations* What is the Job Creation Toolkit? Martin County and Florida compete with other states and even foreign countries for the high-wage jobs created by businesses in innovative sectors. The Job Creation Toolkit allows the County to offer conservative, performance-based business incentives to qualified, targeted businesses that will create jobs and expand the tax base for Martin County. This Toolkit allows the County to competitively vie for high-value employment opportunities for its citizens and generate return on investment for the County. The Job Creation Toolkit approach is based on a long-term, conservative combination of targeted incentives with an expected return on investment and investments in capacity building projects to enhance the competitive advantage of our targeted sectors. How will the Toolkit be funded? The Job Creation Toolkit will be funded through the existing Economic Development Fund, established in the 1970s and recently funded with $200,000 as part of the County s Economic Stimulus Package. Revenue for this fund initially will be generated by investing a minimum of 50% of the new revenue for the FPL Solar Project (targeting approximately $1M annually). In addition, a percentage of new revenue from future economic development projects would be invested in this fund. The fund will be allowed to grow rather than reverting to the general fund, up to a cap of 5% of the current general fund balance. (*Note: The County s Fiscal Policy establishes that the desired goal of the General Fund Reserve is at least 10% of the General Fund operating total.) Use of the Economic Development Fund will be restricted to qualified, targeted businesses or capacity building projects that directly benefit these businesses. Generally, targeted businesses do 50% or more of their business outside the state of Florida and are included on Enterprise Florida s targeted business list. The nature of these businesses makes them contributory meaning they bring new money into our economy, expanding it and creating jobs. What are the tools in the Toolkit? There are four tools contained within the Toolkit. These tools have four common elements: 1. Each is a discretionary incentive available only to targeted businesses that may be used singly or in any combination based on the individual project and recommended on a case-by-case basis 2. Return on Investment is calculated based on the entire amount of local incentives used. ROI is determined using IMPLAN and provided to Martin County staff and Commission by BDBMC prior to action appearing on a Commission meeting agenda. 3. Each is an inducement-based program, governed by a performance agreement with clawbacks relating to thresholds for jobs, taxable investment, and timing. This agreement is in place to protect the County s investment and ensure the community benefits from jobs and investment agreed to by the company. 4. Each parallels similar successful programs at the state level and are common with localities across Florida and the United States. *This document is only intended to be a recommendation to Martin County staff and elected officials. PDF Page 6 of 45

7 The tools in the Job Creation Toolkit are: 1. Martin County Opportunity Fund (MCOF) MCOF is a deal-closure program and may include anything of value to make a project happen, i.e. cash, land, lease concessions, or funds to leverage other state/federal funds like SBIR/STTR grants. 2. Martin County Job Creation Grant (MCJCG) MCJCG is similar to the Qualified Targeted Industry Tax Refund (QTI) program at the state level and, when applicable, will be the source of matching funds for QTI benefits. This grant rewards businesses for job creation and is paid out over 4 years according to the following tiers based on percentage of average wage paid: 100% of average wage = $2,000/job equating to 5.4% of the average wage paid 115% of average wage = $3,000/job equating to 7.0% of the average wage paid 150% of average wage = $4,000/job equating to 7.2% of the average wage paid 200% of average wage = $5,000/job equating to 6.7% of the average wage paid *Indiantown bonus: for qualified jobs created within the area boundaries intended as a state Enterprise Zone in Indiantown (regardless of Martin County achieving state designation for this area) a $500 bonus is recommended for each tier of average wage outlined above. MCJCG funds are distributed after Year 2 of a qualified project, following job creation and verification. Other bonuses could be enacted to encourage job creation in targeted areas, like CRAs, Enterprise Zones, and SBA HubZones. 3. Tax Abatements It is important to note that tax abatements require a referendum to be passed by each participating jurisdiction prior to implementation. If a ballot resolution on tax abatement passes, the abatement program would allow temporary tax relief for qualified targeted businesses. At such time as implementation is approved, a methodology would be devised to reward better projects at a higher rate taking into account ROI. 4. Fee Relief As a means to help create jobs and encourage reuse of vacant or underutilized commercial/industrial space, the already established Impact Fee Relief program could be expanded to include business permits and other fees. BCC may choose to sunset this program after 2 years, or review its continuation on an annual basis. Revised 4/20/10 PDF Page 7 of 45

8 Frequently Asked Questions about the Job Creation Toolkit Why do we need a Job Creation Toolkit? According to an economic analysis performed by Policom Corporation in 2008, the quality of Martin County s economy has been in decline for decades. Even more troubling, this decline, based on wages paid to citizens, mirrors that of the ten weakest economies in the United States. Decades of decline will not be resolved overnight. It will take long term commitment and investment by the community s leadership to diversify and stabilize our economy. We need a Job Creation Toolkit now because Martin County residents are unemployed and requests for basic human needs food, shelter, and clothing are rising exponentially. Until we take the initiative to increase employment opportunities, the state of our community will continue to decline and detract from our quality of life. 13.6% unemployment = 8,596 people * This doesn t take into consideration those who are underemployed, an additional 11-18% (7,079 11,584 people) that includes those who now work only part time but would like to work full-time, the employed who have downsized their careers taking a position of lesser responsibility, or the unemployed who have given up looking for work altogether. This is a total of 15,675-20,180 Martin County residents who are inadequately employed. More than 20,000 Floridians each week will lose unemployment benefits beginning in March.^ Based on the 2000 census, over 15,000 people commute out of Martin County daily. Rising gas prices and cost of living increases in general make it less and less affordable to maintain these patterns. *** Treasure Coast Food Banks will distribute 600,000 pounds of food this year (compared to 409,000 last) ** House of Hope experienced a 50% increase in emergency financial assistance requests in 2009 ** 2,082 Foreclosures in 2009 (compared to 154 in Cumulative total = 4,621) + Boys & Girls Club has seen a 50% increase in scholarship requests, even at the cost of $25/year ** Caring Children/Clothing Children has increased client services by 25% this year ** 27% of Martin County residents ages have no insurance ** During the school year, 33.38% of Martin County children qualified as eligible to participate in Free/Reduced Lunch programs. That translates to over 6,000 children whose families could not afford to pay $1.75 daily for school lunches. ++ Updated 4/20/2010 PDF Page 8 of 45

9 According to the Treasure Coast Homeless Services Council, 517 Martin County residents are homeless that includes 220 children. 40% of them said a job would be enough to get them out of homelessness. We no longer have the option of doing nothing. If we sit back and wait for the economy to turn around on its own, these statistics will continue to worsen, over-taxing the service capabilities of human services organizations, until they can no longer provide basic human services and our quality of life significantly and noticeably declines. Gone are the days of being successful by accepting what comes our way. It is time to take control of our economy...an economy by design, not default. It is our responsibility to offer Martin County residents what they need and deserve: quality, high-wage jobs. Quality of life starts with a good job. * US Bureau of Labor Statistics December Florida Department of Education **United Way of Martin County 2009 Annual Report on Community Needs ***US Department of Commerce +US Department of Housing and Urban Development ^Sun Sentinel article, , More than 20,000 Floridians each week stand to lose unemployment benefits unless Senate acts What is the Economic Development Fund? The Economic Development Fund was established by Martin County in the 1970s for the purpose of promoting and fostering the economic development of Martin County, inducing additional investment, desirable industries and agriculture in said County, and bringing additional year-round payrolls to supplement the present economy. It is governed by Martin County s Code of Ordinances, Chapter 71 Article 2. The Commission maintains control of the fund and can vote at any time to repurpose investment to or cease funding altogether. Why recommend that the funds stay in the County s Economic Development fund, rather than revert to the General Fund?** Martin County s economy did not get to its current crisis state overnight. It will also not recover overnight. The solution lies in a long-term investment towards job creation. Allowing the fund to build in value allows the County to consider greater investments in a more stable and diverse economy through capacity building projects that benefit targeted businesses and incentives to targeted businesses that generate a positive R.O.I. *$1 million of $344+ million total budget is a small investment that stands to make a large impact. **Recommendation is that the fund be allowed to grow up to a cap of 5% of the current general fund balance. How does the County measure the return on investment and ensure assets are protected? The BDBMC utilizes IMPLAN (Impact Analysis for Planning) software that allows estimation of economic impact, using data that is specific to Martin County. IMPLAN analysis will be run and shared PDF Page 9 of 45

10 with County staff and Commission before any incentive in the Job Creation Toolkit would appear before the Commission for vote. All incentives will have clear cut job creation, capital investment, and timing expectations and will be governed by a performance agreement with clawbacks if the agreement is not met. This agreement is in place to protect the County s investment and ensure delivery of a minimum set of expectations from the induced, targeted company. How are jobs and taxable investments verified? BDBMC will work closely with local and state officials such as the Florida Department of Revenue (DOR) and the Agency for Workforce Innovation (AWI) to verify job creation and investment. Via a detailed verification process, information submitted by participating companies is reviewed, analyzed, and submitted to Martin County. The BDBMC also schedules company visits where a visual review can be made of the operation and employment. BDBMC applies stringent standards when it comes to job and wage verification. What is IMPLAN? Economic impact does not end with direct hiring by a targeted company. Each direct job from a target business creates additional jobs throughout the community as dollars from the increased sales and payroll make their way through the local economy. The IMPLAN model is based on annually updated input-output information specific to the area. Its method is usually referred to as multiplier analysis or the multiplier effect. A dollar increase in final demand implies increased demand for inputs to produce the required output. This increase demand and income triggers further demand and income increases. IMPLAN, created by the University of Minnesota, is one of the most widely used tools for this sort of evaluation and data comes from the Bureau of Labor Statistics and other federal agencies and is tailored to the local geography, in our case Martin County, not a statewide measurement. IMPLAN allows the BDBMC and County to evaluate benefits to existing small businesses both onetime and recurring stimulus impact through new sales that support additional jobs. How does IMPLAN work? Based on data input, IMPLAN provides an estimate of the total economic activity generated from the actions of an economic unit. The economic impact is divided into three types: 1. Direct effects: changes in the targeted businesses for which a final demand change was provided. Essentially, direct effects refer to jobs and sales of the targeted company. 2. Indirect effects: changes in inter-company purchases as they respond to the new demands of the directly affected sectors of Martin County. Indirect effects are generated from sales among other firms in Martin County as a result of the targeted company s expansion. These sales directly benefit existing small businesses in the community. PDF Page 10 of 45

11 3. Induced effects:: changes in spending from households as income increases or decreases due to changes in production.. Induced effects are additional spending in local businesses of various sectors from payroll generated from benefitting companies companies. An example of IMPLAN analysis and economic impact from a targeted business Vought Aircraft Inc. with 100 additional employees and $5.1 million in annual payroll was obtained. DIRECT INDIRECT INDUCED TOTAL OUTPUT $20,000,000 $6,100,000 $4,400,000 $31,200,000 EMPLOYMENT LABOR INCOME $5,100,000 $2,200,000 $1,500,000 $8,800,000 Below is a visual representation of the jobs created by Vought:: direct, indirect and induced. induced Jobs in the outer ring represent indirect and induced employment as well as a $3.7M M annual payroll, while direct jobs are represented in the center: Healthcare 7 jobs Other Retail 37 jobs 12 jobs Vought Aircraft 100 direct jobs Construction & Real Estate $5.1M annual payroll 4 jobs Professional Services 25 jobs Personal Services 3 jobs PDF Page 11 of 45

12 BEFORE THE BOARD OF COUNTY COMMISSIONERS MARTIN COUNTY, FLORIDA RESOLUTION No. A RESOLUTION CALLING FOR A REFERENDUM PURSUANT TO SEC , FLA. STAT., ON THE QUESTION OF WHETHER MARTIN COUNTY MAY GRANT ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTIONS IN MARTIN COUNTY ON THE AUGUST 24, 2010, PRIMARY ELECTION BALLOT WHEREAS, the Board of County Commissioners of Martin County, Florida, has made the following determinations: 1. Section , Fla. Stat., provides that the Board of County Commissioners may hold a referendum to allow the voters to determine whether to grant authority for economic development ad valorem tax exemptions to new and expanding businesses in Martin County under Section 3, Article VII of the State Constitution. 2. This Board believes that calling for a referendum on the question of whether Martin County may grant economic development ad valorem tax exemptions for Martin County on the Primary Election Ballot on August 24, 2010, is in the best interest of the public health, safety and welfare of the citizens of Martin County, Florida. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MARTIN COUNTY, FLORIDA: 1. This Board does hereby direct the Supervisor of Elections to place on the August 24, 2010, Primary Election Ballot the following referendum to be voted upon by the electors of Martin County: ECONOMIC DEVELOPMENT INCENTIVE AD VALOREM TAX EXEMPTION The Economic Development Ad Valorem Exemption would allow the County to encourage the establishment of new businesses and the expansion of existing businesses by granting an exemption from County property taxes of up to 100 percent of only the assessed value of improvements and personal property for those businesses. Any exemption would only remain in effect for up to ten (10) years and would not apply to school, city or voter approved taxes. 1 PDF Page 12 of 45

13 Shall the Board of County Commissioners of Martin County be authorized to grant pursuant to Section 3, Article VII of the State Constitution, property tax exemption incentives to new businesses and expansions of existing businesses? Yes For authority to grant exemptions. No Against authority to grant exemptions. 2. If the referendum is approved by a majority of the electors voting at the August 24, 2010, election, the Board of County Commissioners, at its discretion, by ordinance may exempt from ad valorem taxation up to one hundred percent (100%) of the assessed value of all improvements to real property made by or for the use of a new business and of all tangible personal property of such new business, or up to one hundred percent (100%) of the assessed value of all added improvements to real property made to facilitate the expansion of an existing business and of the net increase in all tangible personal property acquired to facilitate such expansion of an existing business, provided that the improvements to real property are made or the tangible personal property is added or increased on or after the day the ordinance is adopted. After motion and second, the vote on this resolution was as follows: Chairman Doug Smith Vice Chairman Edward V. Ciampi Commissioner Patrick Hayes Commissioner Susan Valliere Commissioner Sarah Heard PASSED AND DULY ADOPTED this day of, ATTEST: BOARD OF COUNTY COMMISSIONERS MARTIN COUNTY, FLORIDA MARSHA EWING, CLERK BY DOUG SMITH, CHAIRMAN APPROVED AS TO FORM AND CORRECTNESS: STEPHEN FRY, COUNTY ATTORNEY 2 PDF Page 13 of 45

14 BEFORE THE BOARD OF COUNTY COMMISSIONERS MARTIN COUNTY, FLORIDA ORDINANCE NO. AN ORDINANCE AMENDING CHAPTER 71 (FINANCE AND TAXATION) OF THE CODE OF ORDINANCES OF MARTIN COUNTY, FLORIDA, BY CREATING ARTICLE 13 (ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTIONS) TO ENCOURAGE ECONOMIC DEVELOPMENT IN MARTIN COUNTY, AS PERMITTED BY SECTION , FLORIDA STATUTES; ESTABLISHING AN EXEMPTION FROM CERTAIN AD VALOREM TAXATION FOR CERTAIN NEW AND EXPANDING BUSINESS PROPERTIES; PROVIDING DEFINITIONS AND REQUIREMENTS; PROVIDING PROCEDURES FOR APPLICATION FOR EXEMPTION; SPECIFYING DUTIES OF THE PROPERTY APPRAISER IN CONNECTION WITH SUCH PROPERTY; PROVIDING FOR CONFLICTING PROVISIONS, SEVERABILITY AND APPLICABILITY AND FILING WITH THE DEPARTMENT OF STATE; PROVIDING FOR AN EFFECTIVE DATE FOR THIS ORDINANCE CONTINGENT UPON APPROVAL OF TAX EXEMPTION BY THE VOTERS OF MARTIN COUNTY, AS REQUIRED BY STATE LAW; AND PROVIDING FOR CODIFICATION WHEREAS, the Board of County Commissioners of Martin County, Florida, has made the following determinations: 1. Section , Florida Statutes, provides that the Board of County Commissioners may hold a referendum to determine whether it may grant Economic Development Ad Valorem Tax Exemptions under Section 3, Article VII of the State Constitution. 2. This Board believes that amending Chapter 71 (Finance and Taxation) of the Code of Ordinances of Martin County, Florida, by creating Economic Development Ad Valorem Tax Exemptions for new or expanding business is in the best interest of the health, safety and public welfare of the citizens of Martin County, Florida. NOW, THEREFORE, BE IT ORDAINED by the Board of County Commissioners of Martin County, Florida: Page 1 PDF Page 14 of 45

15 PART ONE: AMENDMENT OF CHAPTER 71 (FINANCE AND TAXATION) OF THE CODE OF ORDINANCES OF MARTIN COUNTY, FLORIDA. Chapter 71 (Finance and Taxation of the Code of Ordinances of Martin County, Florida, is hereby amended by creating Article 13 (Economic Development Ad Valorem Tax Exemptions) to read as follows: ARTICLE 13 ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTIONS Section Title. This Ordinance shall be known as the Economic Development Ad Valorem Tax Exemption Ordinance of Martin County, Florida. Section Enactment and Authority. Pursuant to Section 3, Article VII of the State Constitution and in accordance with Section , Fla. Stat., the County is authorized and empowered to adopt, amend or revise and enforce an ordinance relating to economic development ad valorem tax exemptions, after the electors of the county, voting on the question in a referendum, authorize the adoption of such ordinance. Section Jurisdiction. This Ordinance shall be applicable in all areas of Martin County where Martin County is the taxing authority. Section Purpose and Intent. The public health, safety, comfort, economy, order, convenience and general welfare require the harmonious, orderly and progressive development of new business and expansion of existing business in Martin County. It is the intent of this article to secure or to ensure: (1) The establishment of criteria for granting such exemptions to certain types of businesses or industries or for denying exemptions on a rational, non-arbitrary, nondiscriminatory basis by the Board of County Commissioners. (2) No precedent shall be implied or inferred by the granting of an exemption to a new or expanding business. Applications for exemptions shall be considered by the board of county commissioners on a case-by-case basis for each application, after consideration of the property appraiser's report on that application. Page 2 PDF Page 15 of 45

16 (3) Any exemption granted shall apply up to one hundred (100) percent of the assessed value of all improvements to real property made by or for the use of a new business and all tangible personal property of such new business, or up to one hundred (100) percent of the assessed value of all added improvements to real property, which additions are made to facilitate the expansion of an existing business and of the net increase in all tangible personal property acquired to facilitate such expansion of an existing business. (4) Any exemption shall be up to a full ten-year period from the time the exemption is granted. (5) No exemption shall be granted on the land which new or expanded businesses are to be located. (6) No exemption shall be granted on school or water management district taxes, or on taxes levied for payment of bonds or taxes authorized [by] a vote of the electors of the county pursuant to sections 9 or 12, Article VII, of the State Constitution. (7) No exemptions shall be granted for improvements to property or tangible personal property which have been previously included on the tax rolls. (8) The ability to receive an exemption for the period granted shall be conditioned upon the applicant s ability to maintain the new business or the expansion of an existing business as defined by the conditions of this application throughout the entire exemption period. The applicant shall be required to submit a report on an annual basis to the County evidencing satisfaction of this condition. In addition, any business granted an exemption shall furnish to the County such information/report as the County may reasonably deem necessary for the purpose of determining continuing performance by the business of the conditions stated in this ordinance, the ordinance granting the exemption and the representations made in the application process. Section Definitions. The following words, phrases and terms shall have the same meanings attributed to them in current Florida Statutes and the Florida Administrative Code, except where the context clearly indicates otherwise: (1) Applicant. Any person or corporation submitting an economic development ad valorem tax exemption application to the board. (2) Board. The Martin County Board of Commissioners. (3) Business. Any activity engaged in by any person, corporation or company with the object of private or public gain, benefit, or advantage, either direct or indirect. Page 3 PDF Page 16 of 45

17 (4) Department. The Florida Department of Revenue. (5) Expansion of existing business. a. A business establishing ten (10) or more jobs to employ ten (10) or more full-time employees in this county, which manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a fixed location and which comprises an industrial or manufacturing plant; or b. Any business establishing twenty-five (25) or more jobs to employ twenty-five (25) or more full-time employees in this county, the sales factor of which, as defined by section (5), Florida Statutes, for the facility with respect to which it requests an economic development ad valorem tax exemption is less than one-half (0.50) for each year the exemption is claimed, provided that such business increases operations on a site collocated with a commercial or industrial operation owned by the same business, resulting in a net increase in employment of not less than ten (10) percent or an increase in productive output of not less than ten (10) percent. No business engaged in retail operations as defined herein shall be eligible for an exemption pursuant to this subsection b. c. Any business located in an enterprise zone that increases operations on a site collocated with a commercial or industrial operation owned by the same business. (6) Improvements. Physical changes made to raw land, and structures placed on or under the land surface. All personal property acquired to facilitate an expansion of an existing business provided that the personal property is added or increased on or after the day the ordinance is adopted. However, property acquired to replace existing property shall not be considered to facilitate a business expansion. (7) New business. a. A business establishing ten (10) or more jobs to employ ten (10) or more fulltime employees in this county, which manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a fixed location and which comprises an industrial or manufacturing plant; b. A business establishing twenty-five (25) or more jobs to employ twenty-five (25) or more full-time employees in this county, the sales factor of which, as defined by section (5), Florida Statutes, for the facility with respect to which it requests an economic development ad valorem tax exemption is less than one-half (0.50) for each year the exemption is claimed. No business engaged in retail operations as defined herein shall be eligible for an exemption pursuant to this subsection b.; or Page 4 PDF Page 17 of 45

18 c. An office space in this state owned and used by a corporation newly domiciled in this county; provided such office space houses fifty (50) or more full-time employees of such corporation; provided that such business or office first begins operation on a site clearly separate from any other commercial or industrial operation owned by the same business. d. Any business located in an area designated enterprise zone that first begins operation on a site clearly separate from any other commercial or industrial operation owned by the same business. (8) Retail operations. A business engaged in a sale to a consumer or to any person of an item of tangible personal property for any purposes other than for resale. (9) Sales factor. A fraction the numerator of which is the total sales of the taxpayer in this state during the taxable year or period and the denominator of which is the total sales of the taxpayer everywhere during the taxable year or period. (See section (5), Florida Statutes, for specifics of computation). Section Application for exemption. (a) Application. Any eligible person, firm, partnership or corporation which desires an exemption shall file with the board a written application prescribed by the department (DR- 418), a copy of which is attached hereto and incorporated herein as exhibit A (which has not been set out herein, but is on file in the office of the county clerk). (b) Required information. The application shall request that the board adopt an ordinance granting the applicant the exemption and shall include, at a minimum, the following: (1) The name and location of the new business or the expansion of an existing business; (2) The name of the owner(s) of the new business or the expansion of an existing business; (3) A legal description of the real property and a description of the improvements to the real property for which an exemption is requested and the date of intended or actual commencement of construction of such improvement; (4) A description of the tangible personal property for which an exemption is requested and the dates when such property is to be purchased; Page 5 PDF Page 18 of 45

19 (5) Proof, to the satisfaction of the board, that the applicant meets the criteria for a new business or for an expansion of an existing business as defined in Section hereof; (6) The following information: a. The current number of full-time/equivalent (FTE) of the expanding business; the total number of FTE to be created and maintained by the new or expanding business, and the period (total number of years) needed to fill all of the new jobs; b. The expected number of employees who will reside in the county; c. The average annual wage of the new jobs, identifying the average annual salary with executives salaries included and with executives salaries excluded; d. The type of business; e. The environmental impact of the business; f. The current and anticipated volume (in dollars) of business or production, and the percentage of total product sales outside of the county; g. Whether relocation or expansion would occur without the exemption; h. The cost and demand for services; i. The source of supplies (local or otherwise); j. Whether the business will be/is located in a community redevelopment area and/or enterprise zone; and k. The total length (number of years) of the exemption period being requested. (7) Other information deemed necessary by the Board. (c) Job creation and maintenance. A business will be required to commence the creation of full-time jobs within the period of the exemption and to maintain any newly filled jobs for its facility in the county at minimum through to the expiration of the exemption granted by the board. Page 6 PDF Page 19 of 45

20 (d) Community redevelopment agency. If a new business is locating to, or an expansion of an existing business is occurring in, a community redevelopment area, the community redevelopment agency overseeing such area shall be provided a copy of the application for review and comment. Input from the community redevelopment agency will be considered in deciding whether an application is to be granted. Should a community redevelopment agency object to the grant of an exemption, the agency may submit said objection in the form of a duly adopted resolution to the board for its consideration. (e) Filing deadline. The application shall be filed on or before March 1 of the year in which an exemption is requested. (f) Review. Upon submittal of the application, the county administrator or his designee shall review same and notify the applicant of any facial deficiencies. Section Procedure. (a) Before the board acts on an application, it must be submitted to the property appraiser for review. After careful consideration, the property appraiser shall report to the board concerning the fiscal impact of granting exemptions. The property appraiser's report shall include the following: (1) The total revenue available to the county for the current fiscal year from ad valorem tax sources. (2) The amount of revenue foregone by the county for the current fiscal year because of economic development ad valorem tax exemptions previously granted. (3) An estimate of the amount of revenue which would be foregone for the current fiscal year if the exemption is granted to the new or expanding business. (4) A determination that the business meets the definition of a new or expanding business as defined in this article. Upon request, the department will provide the property appraiser such information as it may have available to assist in making this determination. (b) After consideration of the report of the property appraiser, the board may choose to adopt an ordinance granting the tax exemption to a new or expanding business. The ordinance shall be adopted in the same manner as any other ordinance of the county. The ordinance shall include the following information; (1) The name and address of the new or expanding business. (2) The amount of revenue available from ad valorem tax sources for the current fiscal year, revenue foregone for the current fiscal year because of economic Page 7 PDF Page 20 of 45

21 development ad valorem tax exemptions currently in effect, and the amount of estimated revenue which would be foregone because of the exemption granted to the new or expanding business. (3) The expiration date of the exemption. (Up to ten (10) years from date of board adoption of the ordinance granting the exemption). (4) A finding that the business meets the definition of a new business or an expansion of an existing business. (5) The board's authority to revoke an exemption if the business no longer satisfies the criteria for the exemption. Section Fees. Fees charged to offset the cost of processing the economic development ad valorem tax exemption application or any exemption ordinance shall be adopted by the board by resolution. Section Eligible business. Any business, as defined in section , that does not qualify as an ineligible business as defined in section When considering the issue of whether or not a business is an eligible business as defined herein, the board shall consider the anticipated number of employees, average wage, type of business, environmental impacts, volume of business or production or any other information relating to the issue of whether the proposed development in Martin County prior to accepting the economic development ad valorem tax exemption application. The criteria for determining the length of an exemption and the percentage amount of an exemption may be adopted by the Board by resolution. The criteria shall provide for incentives for businesses that employ Martin County residents who establish permanent domicile pursuant to Florida Statutes. Section Ineligible business. Any business in violation of any federal, state, or local law or regulation is ineligible to receive an exemption. The board may use this criteria to deny a request for an exemption or to revoke an exemption previously granted. The board may, in its discretion, determine that a business is eligible notwithstanding that the business is in violation. Section Revocation of exemption. (a) Board. Should any new business or expansion of an existing business fail to file the annual report with the board on or before March 1 of each year the exemption has been granted as required in sections (i)(1) and (2), or fail to continue to meet the definition of a new business or an expansion of an existing business, and/or fail to fulfill any other representation made to the board Page 8 PDF Page 21 of 45

22 during the application process, including the creation and maintenance of the total number of new jobs identified by a business in the application (exhibit A, not set out herein, but on file in the office of the county clerk), the board may adopt an ordinance revoking the ad valorem tax exemption. (b) Revocation. The revocation of an ordinance may occur for a business that fails to fulfill its obligations as provided for under the ordinance granting the business an exemption after the expiration of this article. The effective date for revocation of the exemption will be identified in the ordinance. (c) Notification. Upon revocation, the board shall immediately notify the property appraiser. (d) Reapply. Nothing herein shall prohibit a business from reapplying for an ad valorem tax exemption pursuant to state law. Section Appeals. The decision of the board not to grant an economic development ad valorem tax exemption to a particular business is subject only to judicial review pursuant to the Florida Rules of Appellate Procedure. PART TWO: CONFLICTING PROVISIONS. Special acts of the Florida legislature applicable only to unincorporated areas of Martin County, Martin County ordinances, and Martin County resolutions, or parts thereof, in conflict with this ordinance are hereby superseded by this ordinance to the extent of such conflict except for ordinances concerning either adoption or amendment of the Martin County comprehensive plan, pursuant to Chapter 163, Part II, Florida Statutes, or land development regulations relating specifically to community redevelopment areas established pursuant to Chapter 163, Part III, Florida Statutes. PART THREE: SEVERABILITY. If any portion of this ordinance is for any reason held or declared to be unconstitutional, inoperative or void, such holding shall not affect the remaining portions of this ordinance. If this ordinance or any provision thereof shall be held to be inapplicable to any person, property or circumstances, such holding shall not affect its applicability to any other person, property or circumstances. PART FOUR: APPLICABILITY OF ORDINANCE. This ordinance shall be applicable in all areas of Martin County where Martin County is the taxing authority. Page 9 PDF Page 22 of 45

23 PART FIVE: FILING WITH THE DEPARTMENT OF STATE. The Clerk be and is hereby directed to send a certified copy of this ordinance to the Bureau of Administrative Code, Department of State, R.A. Gray Bldg., Room 101, 500 S. Bronough Street, Tallahassee, Florida , forthwith after approval of the ballot question authorizing this ordinance by the voters of Martin County. PART SIX: EFFECTIVE DATE. The effective date of this ordinance is contingent upon approval by the voters of Martin County and shall take effect upon filing with the Department of State. PART SEVEN: CODIFICATION. Provisions of this ordinance shall be incorporated in the Martin County Code, and the word ordinance may be changed to section, article, or other appropriate word, and the sections of this ordinance may be renumbered or relettered to accomplish such intention; provided, however, that parts TWO through SEVEN shall not be codified. PASSED AND DULY ADOPTED this day of, ATTEST: Marsha Ewing, Clerk BOARD OF COUNTY COMMISSIONERS MARTIN COUNTY, FLORIDA BY: Doug Smith, Chairman APPROVED AS TO FORM AND CORRECTNESS: BY: Stephen Fry, County Attorney Page 10 PDF Page 23 of 45

24 Martin County - Job Creation Grant Example Project Project Assumptions: Wage thresholds (effective 1/1/10): New Jobs Martin County MSA Florida Average Wage $37,051 $42,609 $55,577 $74,102 Average $37,051 $17.81 $34,841 $16.75 $39,621 $19.05 Average Wage Threshold 100% 115% 150% 200% 115% $42,609 $20.49 $40,067 $19.26 $45,564 $21.91 Capital Investment TBD TBD TBD TBD 150% $55,577 $26.72 $52,262 $25.13 $59,432 $28.57 MC Job Creation Grant $2,000 $3,000 $4,000 $5, % $74,102 $35.63 $96,682 $46.48 $79,242 $38.10 TABLE 1 TABLE 2 TABLE 3 TABLE 4 TABLE 1 (100% AVG WAGE) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 New Jobs Martin County Job Grant Schedule - To Company Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Total Phase I $0 $50,000 $50,000 $50,000 $50,000 $0 $0 $200,000 Phase II $0 $0 $0 $0 $0 $0 $0 $0 Phase III $0 $0 $0 $0 $0 $0 $0 $0 Total Award by Year $0 $50,000 $50,000 $50,000 $50,000 $0 $0 $200,000 TABLE 2 (115% WAGE) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 New Jobs Martin County Job Grant Schedule - To Company Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Total Phase I $0 $75,000 $75,000 $75,000 $75,000 $0 $0 $300,000 Phase II $0 $0 $0 $0 $0 $0 $0 $0 Phase III $0 $0 $0 $0 $0 $0 $0 $0 Total Award by Year $0 $75,000 $75,000 $75,000 $75,000 $0 $0 $300,000 TABLE 3 (150% WAGE) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 New Jobs Martin County Job Grant Schedule - To Company Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Total Phase I $0 $100,000 $100,000 $100,000 $100,000 $0 $0 $400,000 Phase II $0 $0 $0 $0 $0 $0 $0 $0 Phase III $0 $0 $0 $0 $0 $0 $0 $0 Total Award by Year $0 $100,000 $100,000 $100,000 $100,000 $0 $0 $400,000 TABLE 4 (200% WAGE) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 New Jobs Martin County Job Grant Schedule - To Company Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Total Phase I $0 $125,000 $125,000 $125,000 $125,000 $0 $0 $500,000 Phase II $0 $0 $0 $0 $0 $0 $0 $0 Phase III $0 $0 $0 $0 $0 $0 $0 $0 Total Award by Year $0 $125,000 $125,000 $125,000 $125,000 $0 $0 $500, % 115% 150% 200% % grant to wage requirement 5.40% 7.04% 7.20% 6.75% Grant disbursement to wages paid: Year 1 Year 2 Year 3 Year 4 Year 5 TOTAL TABLE 1 Company wages paid $3,705,100 $3,705,100 $3,705,100 $3,705,100 $3,705,100 $18,525,500 Locality grant paid $0 $50,000 $50,000 $50,000 $50,000 $200,000 TABLE 2 Company wages paid $4,260,900 $4,260,900 $4,260,900 $4,260,900 $4,260,900 $21,304,500 Locality grant paid $0 $75,000 $75,000 $75,000 $75,000 $300,000 TABLE 3 Company wages paid $5,557,700 $5,557,700 $5,557,700 $5,557,700 $5,557,700 $27,788,500 Locality grant paid $0 $100,000 $100,000 $100,000 $100,000 $400,000 TABLE 4 Company wages paid $7,410,200 $7,410,200 $7,410,200 $7,410,200 $7,410,200 $37,051,000 Locality grant paid $0 $125,000 $125,000 $125,000 $125,000 $500,000 PDF Page 24 of 45

25 **Martin County - Job Creation Grant Example Project in Indiantown** Project Assumptions: Wage thresholds (effective 1/1/10): New Jobs Martin County MSA Florida Average Wage $37,051 $42,609 $55,577 $74,102 Average $37,051 $17.81 $34,841 $16.75 $39,621 $19.05 Average Wage Threshold 100% 115% 150% 200% 115% $42,609 $20.49 $40,067 $19.26 $45,564 $21.91 Capital Investment TBD TBD TBD TBD 150% $55,577 $26.72 $52,262 $25.13 $59,432 $28.57 MC Job Creation Grant $2,000 $3,000 $4,000 $5, % $74,102 $35.63 $96,682 $46.48 $79,242 $38.10 *Indiantown area Bonus $500 $500 $500 $500 Total MCJCG/Job $2,500 $3,500 $4,500 $5,500 TABLE 1 TABLE 2 TABLE 3 TABLE 4 TABLE 1 (100% AVG WAGE) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 New Jobs Martin County Job Grant Schedule - To Company Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Total Phase I $0 $62,500 $62,500 $62,500 $62,500 $0 $0 $250,000 Phase II $0 $0 $0 $0 $0 $0 $0 $0 Phase III $0 $0 $0 $0 $0 $0 $0 $0 Total Award by Year $0 $62,500 $62,500 $62,500 $62,500 $0 $0 $250,000 TABLE 2 (115% WAGE) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 New Jobs Martin County Job Grant Schedule - To Company Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Total Phase I $0 $87,500 $87,500 $87,500 $87,500 $0 $0 $350,000 Phase II $0 $0 $0 $0 $0 $0 $0 $0 Phase III $0 $0 $0 $0 $0 $0 $0 $0 Total Award by Year $0 $87,500 $87,500 $87,500 $87,500 $0 $0 $350,000 TABLE 3 (150% WAGE) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 New Jobs Martin County Job Grant Schedule - To Company Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Total Phase I $0 $112,500 $112,500 $112,500 $112,500 $0 $0 $450,000 Phase II $0 $0 $0 $0 $0 $0 $0 $0 Phase III $0 $0 $0 $0 $0 $0 $0 $0 Total Award by Year $0 $112,500 $112,500 $112,500 $112,500 $0 $0 $450,000 TABLE 4 (200% WAGE) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 New Jobs Martin County Job Grant Schedule - To Company Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Total Phase I $0 $137,500 $137,500 $137,500 $137,500 $0 $0 $550,000 Phase II $0 $0 $0 $0 $0 $0 $0 $0 Phase III $0 $0 $0 $0 $0 $0 $0 $0 Total Award by Year $0 $137,500 $137,500 $137,500 $137,500 $0 $0 $550, % 115% 150% 200% % grant to wage requirement 6.75% 8.21% 8.10% 7.42% Grant disbursement to wages paid: Year 1 Year 2 Year 3 Year 4 Year 5 TOTAL TABLE 1 Company wages paid $3,705,100 $3,705,100 $3,705,100 $3,705,100 $3,705,100 $18,525,500 Locality grant paid $0 $62,500 $62,500 $62,500 $62,500 $250,000 TABLE 2 Company wages paid $4,260,900 $4,260,900 $4,260,900 $4,260,900 $4,260,900 $21,304,500 Locality grant paid $0 $87,500 $87,500 $87,500 $87,500 $350,000 TABLE 3 Company wages paid $5,557,700 $5,557,700 $5,557,700 $5,557,700 $5,557,700 $27,788,500 Locality grant paid $0 $112,500 $112,500 $112,500 $112,500 $450,000 TABLE 4 Company wages paid $7,410,200 $7,410,200 $7,410,200 $7,410,200 $7,410,200 $37,051,000 Locality grant paid $0 $137,500 $137,500 $137,500 $137,500 $550,000 PDF Page 25 of 45

26 Job Creation Toolkit Presentation to the Martin County Board of Commissioners May 4, 2010 PDF Page 26 of 45

27 Broad Community Support PDF Page 27 of 45

28 Economic history Quality of Martin County s economy on decline for decades Illustrated by Policom study in 2008 This decline, based on wages paid to citizens, mirrors that of the ten weakest economies in the United States PDF Page 28 of 45

29 Current economic challenges Unemployment consistently over 12% % in March. 13.6% in January Additional 18% underemployment Total of 15,000 20,000 Martin County residents who are unemployed or inadequately employed Recurring annual County budget deficits PDF Page 29 of 45

30 Commuting Patterns and Foreclosures 30.94% of Martin County residents commute outside of the community to work 2,082 Foreclosures in in 2004 Cumulative total = 4,621 PDF Page 30 of 45

31 United Way Community Needs Data Treasure Coast Food Banks will distribute 600,000 pounds of food this year (compared to 409,000 last) House of Hope experienced a 50% increase in emergency financial assistance requests in 2009 Boys & Girls Club has seen a 50% increase in scholarship requests, even at the cost of $25/year Caring Children/Clothing Children has increased client services by 25% this year 27% of Martin County residents ages have no insurance PDF Page 31 of 45

32 United Way Community Needs Data 33.38% of Martin County children qualify for Free/Reduced Lunch programs. That is over 6,000 children whose families cannot afford $1.75 daily for school lunches. According to the Treasure Coast Homeless Services Council, 517 Martin County residents are homeless including 220 children. The Human Society of the Treasure Coast reports that the number of ownersurrendered animals for the reason can t afford has doubled since PDF Page 32 of 45

33 Solution: Job Creation Four discretionary incentives Only for Targeted businesses: retention, expansion, and new Allows Martin County to competitively vie for highvalue employment opportunities for citizens Funding mechanism will not affect any current operations of the County and will not increase residential taxes By design, will generate a positive ROI to County expanding tax base and economic diversity PDF Page 33 of 45

34 Role of Business in Local Economy $0.76 return from residential sector each $1 spent on services $1.38 return from agricultural sector for each $1 spent on services $4.21 return from commercial/industrial sector for each $1 spent on services 2006 NC State University Cost of Community Services Study PDF Page 34 of 45

35 PDF Page 35 of 45

36 Economic Impact in Martin County Case Study Vought Aircraft Inc. with 100 additional employees and $5.1 million in annual payroll DIRECT INDIRECT INDUCED TOTAL OUTPUT $20,000,000 $6,100,000 $4,400,000 $31,200,000 EMPLOYMENT LABOR INCOME $5,100,000 $2,200,000 $1,500,000 $8,800,000 PDF Page 36 of 45

37 Indirect and Induced Employment 88 additional jobs created in various sectors $3.7 million in additional payroll created PDF Page 37 of 45

38 Funding Mechanism Economic Development Fund In existence since the 1970s and governed by Martin County s Code of Ordinances, Chapter 71 Article 2. Commission maintains control of this fund not BDBMC Revenue stream from FPL Solar facility (non-residential) Recommended funding 50% of new FPL solar revenue Plus a percentage of new revenue from future economic development projects Recommended cap of 5% of current general fund balance Anticipated investments Capacity-building projects that directly support targeted businesses Incentives for targeted businesses PDF Page 38 of 45

39 Tools in Job Creation Toolkit 1. Impact Fee and Building Permit Mitigation Program 2. Tax Abatement (Exemption) Program 3. Martin County Opportunity Fund 4. Martin County Job Creation Grant PDF Page 39 of 45

40 Common Elements of the Tools Each is a discretionary incentive available only to targeted businesses Positive ROI is determined using IMPLAN Each is an inducement-based program, governed by a performance agreement with clawbacks Each parallels similar successful programs at the state level and are common with localities across Florida and the United States. PDF Page 40 of 45

41 Fee Relief Expand existing Impact Fee Mitigation Program passed as part of the Economic Stimulus Package Revised program to include building permit fees Encourages targeted businesses to locate in existing vacant or underutilized commercial/industrial space PDF Page 41 of 45

42 Tax Abatement Requires referendum Recommendation: Primary Election in August Allows temporary tax relief for qualified targeted businesses Induced project becomes fully taxable in perpetuity after the abatement period lapses Only applies to new County revenue Does not apply to existing tax on land or building not losing revenue Only applies to County portion of tax, not Schools, Water Management District, etc. these entities gain revenue PDF Page 42 of 45

43 Remaining Tools Martin County Opportunity Fund Martin County Job Creation Grant PDF Page 43 of 45

44 Timing is everything We no longer have the option of doing nothing. It is time to take control of our economy...an economy by design, not default. Quality of life starts with a good job. PDF Page 44 of 45

45 Discussion PDF Page 45 of 45