Miami-Dade Legislative Item
File Number: 111148
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File Number: 111148 File Type: Resolution Status: Before the Board
Version: 0 Reference: Control: Board of County Commissioners
File Name: QTI TAX REFUND FOR BIOAXONE BIOSCIENCES, INC. Introduced: 5/23/2011
Requester: Ofc of Economic Development & International Trade Cost: Final Action:
Agenda Date: Agenda Item Number: 9A1
Notes: SEE AMENDED 111404. IB 05.23.11 Title: RESOLUTION APPROVING BIOAXONE BIOSCIENCES, INC. AS A QUALIFIED TARGET INDUSTRY BUSINESS PURSUANT TO FLORIDA STATUTE 288.106; CONFIRMING THAT THE COMMITMENTS OF LOCAL FINANCIAL SUPPORT NECESSARY FOR BIOAXONE BIOSCIENCES, INC. EXIST; AND PROVIDING AN APPROPRIATION OF UP TO $ 16,500 FROM GENERAL REVENUE FUNDS AS LOCAL PARTICIPATION IN THE STATE OF FLORIDA QUALIFIED TARGET INDUSTRY TAX REFUND PROGRAM FOR FISCAL YEARS 2012 THROUGH 2017, INCLUSIVE, OR OVER A TIME PERIOD AS DETERMINED BY THE STATE OF FLORIDA IN ITS APPROVAL OF BIOAXONE BIOSCIENCES, INC. APPLICATION WITH THE PROVISION THAT ANY TAX ABATEMENT GRANTED TO BIOAXONE BIOSCIENCES, INC. UNDER FLORIDA STATUTE 196.1995 REDUCES ANY QUALIFIED TARGET INDUSTRY TAX REFUND TO BIOAXONE BIOSCIENCES, INC. BY THE AMOUNT OF ANY SUCH TAX ABATEMENT GRANTED, IN COMPLIANCE WITH FLORIDA STATUTE 288.106(6)(D); AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR’S DESIGNEE TO MAKE NON-SUBSTANTIVE MODIFICATIONS AND EXECUTE ALL CONTRACTS, AGREEMENTS, AND AMENDMENTS; AND PROVIDING FOR AN EFFECTIVE DATE [SEE AMENDED ITEM UNDER FILE NO. 111403]
Indexes: QUALIFIED TARGET INDUSTRY
Sponsors: Audrey M. Edmonson, Prime Sponsor
  Rebeca Sosa, Co-Sponsor
Sunset Provision: No Effective Date: Expiration Date:
Registered Lobbyist: None Listed


Legislative History

Acting Body Date Agenda Item Action Sent To Due Date Returned Pass/Fail

Economic Development & Social Services Committee 6/15/2011 3B Amended
REPORT: See 3B Amended (Legislative File No. 111403).

County Attorney 6/3/2011 Assigned Brenda Kuhns Neuman 6/7/2011

County Manager 6/1/2011 Assigned County Attorney 7/7/2011
REPORT: REVISED OEDIT; (EDSS 6/15/11); (SPONSOR: COMMISSIONER EDMONSON) ASSISTANT COUNTY ATTORNEY BRENDA NEUMAN

County Manager 5/27/2011 Assigned Howard Piper 5/27/2011
REPORT: RETURNED FOR CHANGES-RM

County Attorney 5/23/2011 Assigned Brenda Kuhns Neuman

County Manager 5/23/2011 Assigned County Attorney 7/7/2011
REPORT: OEDIT; PENDING COMMITTEE ASSIGNMENT; SPONSORSHIP: COMMISSIONER EDMONSON; ASSISTANT COUNTY ATTORNEY BRENDA NEUMAN

County Manager 5/23/2011 Assigned Tony Ojeda 5/23/2011

Legislative Text


TITLE
RESOLUTION APPROVING BIOAXONE BIOSCIENCES, INC. AS A QUALIFIED TARGET INDUSTRY BUSINESS PURSUANT TO FLORIDA STATUTE 288.106; CONFIRMING THAT THE COMMITMENTS OF LOCAL FINANCIAL SUPPORT NECESSARY FOR BIOAXONE BIOSCIENCES, INC. EXIST; AND PROVIDING AN APPROPRIATION OF UP TO $16,500 FROM GENERAL REVENUE FUNDS AS LOCAL PARTICIPATION IN THE STATE OF FLORIDA QUALIFIED TARGET INDUSTRY TAX REFUND PROGRAM FOR FISCAL YEARS 2012 THROUGH 2017, INCLUSIVE, OR OVER A TIME PERIOD AS DETERMINED BY THE STATE OF FLORIDA IN ITS APPROVAL OF BIOAXONE BIOSCIENCES, INC. APPLICATION WITH THE PROVISION THAT ANY TAX ABATEMENT GRANTED TO BIOAXONE BIOSCIENCES, INC. UNDER FLORIDA STATUTE 196.1995 REDUCES ANY QUALIFIED TARGET INDUSTRY TAX REFUND TO BIOAXONE BIOSCIENCES, INC. BY THE AMOUNT OF ANY SUCH TAX ABATEMENT GRANTED, IN COMPLIANCE WITH FLORIDA STATUTE 288.106(6)(d); AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR’S DESIGNEE TO MAKE NON-SUBSTANTIVE MODIFICATIONS AND EXECUTE ALL CONTRACTS, AGREEMENTS, AND AMENDMENTS; AND PROVIDING FOR AN EFFECTIVE DATE

BODY
WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum, Economic Impact Overview, and application, copies of which are incorporated herein by reference;

WHEREAS, this Project commits to bringing an additional 11 jobs to Miami-Dade County by December 31, 2013 with an average salary of $55,500, which is over 115 percent of the average State wage.

NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board hereby finds that attracting, retaining and providing favorable conditions for the growth of target industries provides quality employment opportunities for residents of the County and enhances the County’s economic foundations and recommends that BioAxone Biosciences, Inc. be approved as a qualified target industry business pursuant to Florida Statute 288.106, which created the Qualified Target Industry Tax Refund Program.

The necessary commitment of local financial support for BioAxone Biosciences, Inc. as required under Florida Statute 288.106, exists in an amount not to exceed $16,500 from General Revenue Funds; and that this local financial support will be available in the following increments:

Fiscal Year 2012 - 2013 $3,300
Fiscal Year 2013 - 2014 $3,300
Fiscal Year 2014 - 2015 $3,300
Fiscal Year 2015 - 2016 $3,300
Fiscal Year 2016 - 2017 $3,300

TOTAL $16,500

Or payable over a time period and at annual amounts as determined by the State of Florida in its approval of BioAxone Biosciences, Inc. application, as long as the $16,500 is not exceeded with the provision that any tax abatement granted to BioAxone Biosciences, Inc. , under Florida Statute 196.1995, reduces any QTI tax refund by the amount of any such abatement granted, in compliance with Florida Statute 288.106(6)(d); the County’s funds will be paid to the Florida Economic Development Trust Fund with the stipulation that these funds are intended to represent the “local financial support” required by Florida Statute 288.106 for BioAxone Biosciences, Inc. in compliance with the QTI Program, including the requirement that at least eleven (11) jobs be created.

The necessary commitment of local financial support shall be contingent on BioAxone Biosciences, Inc. maintaining the jobs during the life of the incentive. The business shall also aspire to have hiring practices are consistent with and reflect the diversity of the Miami-Dade County community.

This Board further authorizes the County Mayor or County Mayor’s designee to make non-substantive modifications and execute all contracts, agreements, and amendments.

HEADER
Date:

To: Honorable Chairman Joe A. Martinez
and Members, Board of County Commissioners

From: Alina T. Hudak
County Manager

Subject: Resolution Approving Qualified Target Industry Tax Refund for BioAxone Biosciences, Inc.

STAFF RECOMMENDATION
Recommendation
The Beacon Council, on behalf of BioAxone Biosciences, Inc., has submitted an application for economic development incentives from the State of Florida (State) and Miami-Dade County that require approval from the Board of County Commissioners (BCC). It is recommended that the BCC approve the attached resolution authorizing BioAxone Biosciences, Inc. to be recognized by the State as a Qualified Target Industry (QTI) business and entitled to the financial benefits afforded under the QTI tax refund program. This approval is contingent on BioAxone Biosciences, Inc. providing proof of its incorporation as a U.S. entity prior to its approval by the appropriate Committee of the Board of County Commissioners.

The attached documents relating to the application of a tax refund under the Florida QTI business incentive program pursuant to Florida Statutes Section 288.106 have been prepared by The Beacon Council and reviewed by the County’s Office of Economic Development and International Trade (OEDIT).

The anticipated dates for job creation and disbursement of incentive awards are set forth in the Resolution but are subject to change at the direction of the County Mayor or the County Mayor’s designee.

Scope
The business operations of this project will create 11 new jobs that will primarily impact Commission District 3, but also will have a positive countywide impact through indirect employment and multiplier effect.

This business is considering leasing space and building out a 3,500 square feet research laboratory and international headquarters in the University of Miami Life Science and Technology Park in Miami-Dade County. The business is also considering Boston, MA as a potential location for this expansion.

Fiscal Impact / Funding Source
BioAxone Biosciences, Inc. has applied for a total of $82,500 in QTI funds, of which 80 percent ($66,000) would be provided by the State. If the accompanying resolution is approved by the BCC, the County is committed to provide an award of no greater than $16,500 (or $1,500 per new job) in matching funds from countywide general fund revenues over a five-year period beginning in FY 2012-2013.

Track Record/Monitor
QTI funds awarded for job creation are provided on a matching basis upon the State invoicing the County for jobs created and verified by the State. The State effectively monitors the creation of the QTI jobs and provides such information to the County. The County’s matching funds are distributed only if the applicant complies with the commitment to create the number of new jobs indicated in the accompanying QTI application (Attachment to the General Project Overview) and all other conditions of this incentive program. QTI incentive payments are contingent upon the company meeting its target of additional jobs. In the event the company is unable to attain the employment targets specified in the application, it may be entitled to receive a prorated amount of incentive payments for the additional employment positions it was able to achieve.

Economic Impact Overview
The business was founded as BioAxone Therapeutic Inc., a Canadian Corporation. The shareholders voted to sell the intellectual property to Dr. Mckerracher, one of its founders, who will start a new entity in the U.S. known as BioAxone Biosciences.

BioAxone Biosciences, Inc. would be a new biotechnology research and development in medical sciences company (NAICS Code # 541711) in Miami-Dade County that is seeking to establish and expand its international headquarters and research and development operations. The business would employ 11 new workers at its Miami-Dade County facility paying an average annual salary of $55,500, which is over 115 percent of the average State wage. Employee benefits associated with each new job created will be $20,000, according to documents submitted by The Beacon Council.

It is important to note that the goal of BioAxone Biosciences is to complete a U.S. Food and Drug Administration Phase 2b clinical trial to treat acute spinal cord injury. The County’s approval is not contingent on the company’s participation in Phase 2b clinical trials, but the company must provide proof of incorporation as a U.S. entity before the June meeting of the Committee of jurisdiction or staff will request a deferral of the item until the company is incorporated. Once the company is incorporated as a U.S. entity, it must create the 11 jobs at the average annual salary of $55,000 to be eligible for the QTI award.

If the QTI award is approved, the company plans to include an investment of $1.274 million, of which $460,000 is allocated to construction/renovation, $79,000 to equipment, and $735,000 to research and development. The Beacon Council projects that the $1.274 million in direct investment by the company and the local economic impact from operations will generate nearly $20,016 in countywide general fund revenues to Miami-Dade County over the five years the company is eligible for QTI cash incentives.

Attachments


_______________________________
J.A. Ojeda, Jr., Executive Director
Office of Economic Development and International Trade




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