BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY

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1 8A3 BOARD OF COUNTY COMMISSIONERS AGENDA ITEM SUMMARY PLACEMENT: DEPARTMENTAL PRESET: 1:30 PM TITLE: MARTIN COUNTY TANGIBLE PERSONAL PROPERTY GRANT PROGRAM AGENDA ITEM DATES: MEETING DATE: 2/17/2015 COMPLETED DATE: 2/5/2015 COUNTY ATTORNEY: 1/26/2015 ASSISTANT COUNTY ADMINISTRATOR: 2/2/2015 REQUESTED BY: DEPARTMENT: PREPARED BY: Name: Department of Administration Name: Procedures: None EXECUTIVE SUMMARY: Department of Administration Taryn Kryzda County Administrator On September 23, 2014, the Board of County Commissioners (Board) directed Staff to draft a one year Tangible Personal Property Grant Agreement with Florida Power and Light. Staff has drafted proposed Tangible Personal Property Grant Program Guidelines, a Resolution adopting such Program and Guidelines and a one year agreement implementing the Board s September 23, 2014 directives. APPROVAL: LEG CA BACKGROUND/RELATED STRATEGIC GOAL: 80683fd7 1 of 24

2 The Board initially discussed the concept of establishing a Tangible Personal Property Grant Program at its May 20, 2014 meeting. Follow-up agenda items were discussed at the Board s June 3, 2014, August 5, 2014, and September 23, 2014 Board meetings. The discussion arose as a result of a request by Florida Power and Light to consider such a program for its warehouse facility located within the Martin County Enterprise Zone in Indiantown. On September 23, 2014, after extensive discussions, the Board agreed to a one year agreement with Florida Power and Light to provide a grant which results in an effective millage rate of 4 mills for 2015 on the tangible personal property located on Florida Power and Light s warehouse site located within the Martin County Enterprise Zone. I. Guideline and Program Outline: The Guidelines and Program Outline provide that this is a discretionary tool for the retention and attraction of business investment within the Martin County Enterprise Zone. The program provides that the grant is paid, pursuant to a written agreement, following full payment by the qualified company of its tangible personal property tax for its property located within the Enterprise Zone and following receipt by the County of its portion of such tax from the Tax Collector. The program provides for the following criteria: 1. The business site must be located within the boundaries of the Martin County Enterprise Zone. 2. The business must maintain a substantial taxable value of tangible personal property on the business site as contained on the Martin County tangible personal property ad valorem tax roll and as reported on Tangible Personal Property (TPP) form DR-405. The value of the tangible personal property shall be determined on a yearly basis by the Martin County Property Appraiser pursuant to Florida Law. 3. The grant amount shall be determined by multiplying the negotiated lower millage rate and the total value of the business s TPP for the applicable parcel identification number and subtracting that amount from the total amount of TPP taxes levied by the total County millage for the applicable parcel identification number. The negotiated fixed millage rate will be set forth in the terms of the agreement. 4. Grant payments will be made each year only after the applicable tangible personal property tax bill has been paid for the appropriate year (January 1 to December 31) and funds have been received from the Tax Collector by the Board of County Commissioners. The grant funds will be paid by the County to the business within sixty (60) days receipt by County of such taxes from the Tax Collector. 5. Assuming eligibility each year, the TPPG may be awarded for a period to be determined by the Board of County Commissioners. The agreement may be extended, upon a complete re-evaluation of all factors, including the fixed millage rate, upon approval of the Board of County Commissioners. 6. The agreement may not be transferred or assigned fd7 2 of 24

3 The program specifically provides that this is not an entitlement program and that the BCC may accept or reject a request for such agreement without Cause. II. Resolution: The draft resolution formally establishes the Tangible Personal Property Grant Program and adopts the proposed Guidelines and Program Outline. The resolution sets forth the statutory authorization in Sections (2) and (3) Fla. Stat., the Martin CountyEnterprise Zone designation as well as the May 8, 2014 recommendation by the Martin County Enterprise Zone Development Agency to establish a Tangible Personal Property Program to encourage investment by new and existing businesses within the Enterprise Zone in accordance with the Enterprise Zone Strategic Plan. III. Agreement: 1. Agreement drafted by: Martin County Attorney s Office. 2. Parties to the Agreement: Martin County Board of County Commissioners and Florida Power and Light. 3. Purpose of the Agreement: To provide incentives for the retention and attraction of tangible personal property within the Enterprise Zone by providing a tangible personal property grant. 4. This is a new agreement. 5. Duration: This is a one year agreement and expires December 31, Benefits to Martin County: The retention and attraction of tangible personal property investment within the Martin County Enterprise Zone as well as increasing tax revenues for other taxing authorities. 7. Cost to Martin County: The cost is dependent on the total value of tangible personal property located at the FPL warehouse site on January 1, 2015 which determines the grant. Staff estimates the cost from $600, to $200, LEGAL SUFFICIENCY REVIEW: This item has been reviewed for legal sufficiency to determine whether it is consistent with applicable law, has identified and addressed legal risks, and has developed strategies for legal defensibility. ISSUES: The final version of the proposed Agreement will be provided via a Supplemental Memorandum fd7 3 of 24

4 RECOMMENDED ACTION: RECOMMENDATION Move that the Board approve the Resolution establishing the Martin County Tangible Personal Property Grant Program and authorize the Chairman to sign the Grant Agreement with Florida Power and Light. ALTERNATIVE RECOMMENDATIONS Per Board direction. FISCAL IMPACT: RECOMMENDATION $600, to $200, estimated. Funding Source County Funds Non-County Funds Authorization Subtotal Project Total ALTERNATIVE RECOMMENDATIONS N/A DOCUMENT(S) REQUIRING ACTION: Budget Transfer / Amendment Chair Letter X Contract / Agreement Grant / Application Notice Ordinance X Resolution Other: ROUTING: _ ADM _ BLD _ CDD _ COM _ ENG _ FRD _ GMD _ GSD _ ITS _ LIB _ MCA _ MPO _ PRD _ USD X CA _ ACA X LEG 80683fd7 4 of 24

5 BEFORE THE BOARD OF COUNTY COMMISSIONERS MARTIN COUNTY, FLORIDA RESOLUTION NO. A RESOLUTION BY THE BOARD OF COUNTY COMMISSIONERS OF MARTIN COUNTY, FLORIDA ESTABLISHING THE MARTIN COUNTY TANGIBLE PERSONAL PROPERTY GRANT PROGRAM TO BE UTILIZED WITHIN THE MARTIN COUNTY ENTERPRISE ZONE WHEREAS, Section (2), Fla. Stat., authorizes the governing body of a county to expend public funds to attract and retain business enterprises and declares the use of public funds toward the achievement of such economic development goals to be a public purpose; and WHEREAS, Section (3), Fla. Stat., declares the expenditure of public funds for economic development to be a public purpose for activities, including, but not limited to, making grants to private enterprises for the expansion of businesses or attraction of new businesses in the county; and WHEREAS, the State of Florida enacted the Florida Enterprise Zone Act, Sections , Fla. Stat., to provide incentives to induce private investment into distressed areas to create economic opportunities and sustainable economic development; and WHEREAS, the Florida Legislature authorized Martin County to apply to the S tate Division of Strategic Business Development within the Department of Economic Opportunity for designation of an enterprise zone within Martin County, of up to 10 square miles consisting of land within the primary urban services boundary and focusing on Indiantown, but excluding property owned by Florida Power and Light to the west, two areas to the north designated as estate residential, and the county-owned Timer Powers Recreational Area; and WHEREAS, the Department of Economic Opportunity granted such Enterprise Zone designation for the area more particularly described in Exhibit A which is attached hereto; and WHEREAS, on May 8, 2014 the Martin County Enterprise Zone Development Agency recommended that the Board of County Commissioners establish a Tangible Personal Property Program which would encourage the investment in equipment and machinery for new and existing Martin County businesses located within the Enterprise Zone in accordance with the Enterprise Zone Strategic Plan; and WHEREAS, creation of the Martin County Tangible Personal Property Grant Program within the Martin County Enterprise Zone will further such purposes in Martin County by granting incentives to businesses located within the Enterprise Zone to invest or increase its investment in machinery and equipment located in its Martin County location. 5 of 24

6 NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MARTIN COUNTY, FLORIDA: 1. The Board hereby establishes the Martin County Tangible Personal Property Gran t Program, which is a program which rewards businesses located within the boundaries of the Martin County Enterprise Zone for investing or increasing its investment in machinery and equipment in its Martin County location and which will utilize a grant agreement to attract and retain qualified businesses. 2. The Board hereby adopts Guidelines for the Martin County Tangible Personal Property Grant Program Guidelines which are attached hereto and incorporated herein as Exhibit B. 3. Applicants for a Martin County Tangible Personal Property Grant shall utilize the Guidelines and submit such information to the Martin County Community Development Department for review for compliance with Guidelines and recommendation to the Board of County Commissioners. 4. Following review by the Community Development Department and concurrence by the County Administrator, the Community Development Director shall agenda for Board consideration a Tangible Personal Property Grant Agreement, as well as any additional documentation requested by the County Administrator. 5. The Board specifically finds that this is not an entitlement program and reserves the right to accept or reject an application for a Tangible Personal Property Grant without cause. This resolution shall take effect immediately upon its adoption. DULY PASSED AND ADOPTED, this day of, ATTEST: BOARD OF COUNTY COMMISSIONERS MARTIN COUNTY, FLORIDA CAROLYN TIMMANN, CLERK OF THE CIRCUIT COURT AND COMPTROLLER ED FIELDING, CHAIRMAN APPROVED AS TO FORM AND LEGAL SUFFICIENCY: MICHAEL D. DURHAM COUNTY ATTORNEY 6 of 24

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13 EXHIBIT B MARTIN COUNTY TANGIBLE PERSONAL PROPERTY GRANT PROGRAM GUIDELINES AND PROGRAM OUTLINE In 2015 the Martin County Board of County Commissioners created the Martin County Tangible Personal Property Grant (TPPG) Program as a discretionary tool for the retention and attraction of business investment within the Martin County Enterprise Zone. This program is intended to encourage businesses to remain, locate or expand within the Martin County Enterprise Zone in Indiantown. It is not an entitlement grant program. The program is established in order to provide the Board of County Commissioners the opportunity, at its sole discretion, to provide an incentive to induce retention, expansion and new location of business operations within the Martin County Enterprise Zone. An agreement for the TPPG program must be approved by the Board of County Commissioners prior to the granting of funds under the program. The agreement will set forth the tangible personal property tax paid by the business identified by parcel identification code; will set forth the portion of such tax received by the County; set a fixed millage rate which will be applied to the property value to determine the grant amount; and set forth the length of the agreement. The foregoing instructions detail the requirements of the Program and the Application for qualifying businesses to seek the incentive. Scope of the TPP program Under the TPPG program, the owner of a qualifying business site pays the tax through the ad valorem assessment process to the Tax Collector, then, upon receipt of its portion of such payment, Martin County agrees to pay a grant to the business from the County s general fund. The amount of such grant payment is dependent upon the amount of tangible personal property tax received by the Board of County Commissioners and the terms of the grant agreement with the business. The TPPG program grant is limited to a portion of the total County ad valorem millage and does not include the ad valorem levies of other taxing authorities, such as the Martin County School District, the South Florida Water Management District or Florida Inland Navigation District. Minimum Applicability and Criteria 1. The business site must be located within the boundaries of the Martin County Enterprise Zone. 13 of 24

14 2. The business must maintain a substantial taxable value of tangible personal property on the business site as contained on the Martin County tangible personal property ad valorem tax roll and as reported on Tangible Personal Property (TPP) form DR-405. The value of the tangible personal property shall be determined on a yearly basis by the Martin County Property Appraiser pursuant to Florida Law. 3. The grant amount shall be determined by multiplying the negotiated lower millage rate and the total value of the business s TPP for the applicable parcel identification number and subtracting that amount from the total amount of TPP taxes levied by the total County millage for the applicable parcel identification number. The negotiated fixed millage rate will be set forth in the terms of the agreement. 4. Grant payments will be made each year only after the applicable tangible personal property tax bill has been paid for the appropriate year (January 1 to December 31) and funds have been received from the Tax Collector by the Board of County Commissioners. The grant funds will be paid by the County to the business within sixty (60) days of receipt by County of such taxes from the Tax Collector. 5. Assuming eligibility each year, the TPPG may be awarded for a period to be determined by the Board of County Commissioners. The agreement may be extended, upon a complete re-evaluation of all factors, including the fixed millage rate, upon approval of the Board of County Commissioners. 6. The agreement may not be transferred or assigned. County Administrator and Board of County Commissioners Review If the County Administrator finds that the applicant meets the requirements provided herein for the TPPG program, the County Administrator may authorize the TPP program agreement to be presented to the Board of County Commissioners. Because this program is not an entitlement program, the Board of County Commissioners may accept or reject the request without cause. Application Any Applicant seeking to participate in the TPPG program shall file a request with the County Administrator. Any request for TPPG program assistance must be submitted to the County by the Applicant prior to the Applicant deciding whether or not to remain, expand or locate in the Martin County Enterprise Zone (inducement of decision). Application Assistance The Business Development Board of Martin County will assist applicants with the application process prior to submission to the County Administrator. 14 of 24

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16 MARTIN COUNTY TANGIBLE PERSONAL PROPERTY GRANT PROGRAM AGREEMENT This AGREEMENT made and entered this day of, 2015, between MARTIN COUNTY BOARD OF COUNTY COMMISSIONERS, a political subdivision of the State of Florida, (the COUNTY ), and (the Company ), a Florida corporation. WITNESSETH: WHEREAS, the County established the Martin County Tangible Personal Property Grant Program (TPPG) to be utilized within the Martin County Enterprise Zone by adoption of Resolution No. ; and WHEREAS, such Resolution established guidelines for such TPPG program; and WHEREAS, pursuant to such TPPG Guidelines, the Company has submitted a request to the COUNTY for a grant from the Martin County Tangible Personal Property Grant Program (TPPG), attached hereto and incorporated herein as Exhibit A, as a Business Operation that is located or existing within the Martin County Enterprise Zone, and having a significant amount of existing and new tangible property investment, as hereinafter defined; and WHEREAS, the Company s request has been reviewed by County and determined to comply with its TPPG Guidelines; and WHEREAS, the County and the Company desire to set forth their understanding and agreement as to the requirements of the TPPG and the obligations of the parties regarding the TPPG. NOW, THEREFORE, in consideration of the foregoing, the mutual benefits, promises and undertakings of the parties to this Agreement, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby covenant and agree as follows. Section 1. Definitions. For purpose of this Agreement, the following terms shall have the following definitions: a. Tangible Personal Property (TPP) means all tangible personal property required to be reported on Florida Department of Revenue form DR-405 for the tax year beginning January 1, 2015 in accordance with all State laws, rules and regulations. Such TPP shall be further identified in the Martin County Property Appraiser s parcel identification number b. Facility means the Company s business operation located within the Martin County Enterprise Zone on which tangible personal property is located. The Facility is more particularly described in Exhibit A which is attached hereto and incorporated herein. 16 of 24

17 c. Martin County Enterprise Zone means an area within Martin County designated by the State of Florida pursuant to Section , Fla. Stat. which is targeted for economic revitalization using a variety of State and local incentives. The legal description for the Martin County Enterprise Zone is attached hereto and incorporated herein as Exhibit. d. Negotiated Lower Millage Rate means 4 mills. Section 2. Grant Amount and Payment. a. Grant Amount: The TPPG program grant amount for the 2015 tax year shall be determined by multiplying the negotiated lower millage rate by the total value of Company s TPP for parcel identification number and subtracting this amount from the total amount of TPP taxes levied by the total County millage for the above re ferenced parcel identification number. b. Payment: If the Company has fulfilled its obligations regarding its tangible personal property as set for herein, the County will remit the grant amount as calculated in paragraph (a) above following Company s full payment of the tax bill levied against Company s tangible personal property more particularly identified in Section 1a. herein and receipt by County of its portion of such taxes from the Tax Collector. Such payment shall be made by the County to the Company within sixty (60) days of receipt by County of such taxes from the Tax Collector. Section 3. Requirements for Payment. a. Minimum Requirements: This Agreement requires that the Company maintain, for the 2015 tax year, Tangible Personal Property of at least One Hundred Eighty Five Million Dollars ($185,000,000.00) at the Company s business location, within the Martin County Enterprise Zone (more particularly described in Exhibit A ) contained in the Martin County Property Appraiser s parcel identification number in order to be eligible for the TPPG Grant. If the Company fails to meet this eligibility requirement, the Company will not meet the requirements of this Agreement for the payment of the Grant. b. Determination of Inability to Comply: If the Company determines at any time that the Company is unable or unwilling to meet and maintain its tangible personal property as required above, the Company shall promptly notify the County of such determination. Section 4. 31, Section 5. Term. The term of this Agreement shall be effective from January 1, 2015 to December Notices. Any notices required or permitted under this Agreement shall be given in writing, and shall be deemed to be received upon receipt or refusal after mailing of the same in the United States Mail by certified mail, postage fully pre-paid or by overnight courier (refusal shall mean return of certified mail or overnight courier package not accepted by the addressee): If to the Company, to: With a copy to: 17 of 24

18 Attention: Attention: If to the COUNTY, to: With a copy to: Section 6. Miscellaneous. a. This Agreement is neither a general obligation of the COUNTY, nor is it backed by the full faith and credit of the COUNTY. b. Forum; Venue. This Agreement shall be governed by the laws of the State of Florida. Any and all legal action necessary to enforce the Agreement will be held in Martin County. No remedy herein conferred upon any party is intended to be exclusive of any other remedy, and each and every such remedy shall be cumulative and shall be in addition to every other remedy given hereunder or now or hereafter existing by law or in equity or by statute or otherwise. No single or partial exercise by any party of any right, power or remedy hereunder shall preclude any other or further exercise thereof. c. No Discrimination Certification. The Applicant warrants and represents that all of its employees are treated equally during employment without regard to race, color, religion, disability, sex, age, national origin, ancestry, marital status, or sexual orientation and in accordance with all applicable federal and state laws and regulations. d. Attorney s Fees. If any legal action or other proceeding is brought for the enforcement of this Agreement, or because of an alleged dispute, breach, default or misrepresentation in connection with any provisions of this Agreement, the parties expressly agree that each party will bear its own attorney s fees incurred in connection with this Agreement. The parties expressly and specifically hereby waive the right to a jury trial as to any issue in any way connected with this Agreement. e. Assignment. The Applicant shall not assign this Agreement to any other persons or firm without first obtaining County s written approval. f. Amendment. This agreement may be amended only by written agreement of the parties. A party requesting amendment of the Agreement must propose such amendment in writing to the other party prior to the proposed effective date of the amendment. 18 of 24

19 g. This Agreement incorporates and includes all prior and contemporaneous negotiations, correspondence, conversations, agreements, and understandings applicable to the matters contained herein and the parties agree that there are no commitments, agreements, or understandings concerning the subject matter of this Agreement that are not contained in this document. Accordingly, it is agreed that no deviation from the terms hereof shall be predicated upon any prior contemporaneous representatives or agreements, whether oral or written. h. If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent be held invalid or unenforceable for the remainder of this agreement, then the Application of such term or provision to person or circumstances other than those as to which it is held invalid or unenforceable shall not be affected, and every other term and provision of this agreement shall be deemed valid and enforceable to the extent permitted by law. IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above. ATTEST: BOARD OF COUNTY COMMISSIONERS MARTIN COUNTY, FLORIDA CAROLYN TIMMANN, CLERK OF THE CIRCUIT COURT AND COMPTROLLER ED FIELDING, CHAIRMAN APPROVED AS TO FORM AND LEGAL SUFFICIENCY: MICHAEL D. DURHAM COUNTY ATTORNEY WITNESS WITNESS (Name of Company) By: (Insert Name and Title) 19 of 24

20 BCC MEETING DATE: February 17, 2015 AGENDA ITEM: 8A3 TO: VIA: FROM: MARTIN COUNTY, FLORIDA SUPPLEMENTAL MEMORANDUM Honorable Members of the Board DATE: February 10, 2015 of County Commissioners Taryn Kryzda County Administrator David Graham, Director of Administration SUBJECT: MARTIN COUNTY TANGIBLE PERSONAL PROPERTY GRANT PROGRAM Please find attached a signed version of the Martin County Tangible Personal Property Grant Program Agreement. TK/dg Reviewed by County Attorney s Office 20 of 24 Page 1 of 1 adm2015m163 SUPPLEMENTAL

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