TITLE
RESOLUTION APPROVING CONFIDENTIAL PROJECT NO 11-00454 AS A QUALIFIED TARGET INDUSTRY BUSINESS PURSUANT TO FLORIDA STATUTE 288.106; CONFIRMING THAT THE COMMITMENTS OF LOCAL FINANCIAL SUPPORT NECESSARY FOR CONFIDENTIAL PROJECT NO. 11-00454 EXIST; AND PROVIDING AN APPROPRIATION OF UP TO $80,800 FROM GENERAL REVENUE FUNDS AS LOCAL PARTICIPATION IN THE STATE OF FLORIDA QUALIFIED TARGET INDUSTRY TAX REFUND PROGRAM FOR FISCAL YEARS 2012 THROUGH 2018, INCLUSIVE, OR OVER A TIME PERIOD AS DETERMINED BY THE STATE OF FLORIDA IN ITS APPROVAL OF CONFIDENTIAL PROJECT NO. 11-00454 APPLICATION WITH THE PROVISION THAT ANY TAX ABATEMENT GRANTED TO CONFIDENTIAL PROJECT NO. 11-00454 UNDER FLORIDA STATUTE 196.1995 REDUCES ANY QUALIFIED TARGET INDUSTRY TAX REFUND TO CONFIDENTIAL PROJECT NO.11-00454 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 MODIFICATIONS INCLUDING CHANGES TO DATES FOR JOB CREATION AND DISBURSEMENT OF INCENTIVE AWARDS IF IN THE BEST INTEREST OF THE COUNTY 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 General Project Overview (attached) copies of which are incorporated herein by reference; and

WHEREAS, this Project commits to creating an additional 101 full-time equivalent jobs, as defined in Florida Statute Section 288.106, to Miami-Dade County by December 31, 2013 with an average salary of $70,000, which is 161 percent of the average wage in Miami-Dade County; and

WHEREAS, the tax refund may be prorated by the State of Florida pursuant to the terms of the General Project Overview in the event the Project creates fewer than 101 full-time equivalent jobs,

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 Confidential Project No. 11-00454 (the �Business�) 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 Confidential Project No. 11-00454, as required under Florida Statute 288.106, exists in an amount not to exceed $80,800 from General Revenue Funds; and that this local financial support will be available in the following increments:

Fiscal Year 2012 - 2013 $13,466.67
Fiscal Year 2013 - 2014 $13,466.67
Fiscal Year 2014 - 2015 $13,466.67
Fiscal Year 2015 - 2016 $13,466.67
Fiscal Year 2016 - 2017 $13,466.67
Fiscal Year 2017 - 2018 $13,466.65

TOTAL $80,800.00

Or payable over a time period and at annual amounts as determined by the State of Florida in its approval of Confidential Project No. 11-00454 application, as long as the $80,800 is not exceeded with the provision that any tax abatement granted to Confidential Project No. 11-00454, 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 Confidential Project No. 11-00454 in compliance with the QTI Program, including the requirement that at the Business expand by or through additions to real and personal property, resulting in the net increase in employment of 101 full-time equivalent jobs, unless prorated by the State pursuant to the General Project Overview.

The necessary commitment of local financial support shall be contingent on Confidential Project No. 11-00454 maintaining the jobs during the life of the incentive and ensuring that its hiring practices aspire to be consistent with and reflect the diversity of the Miami-Dade County community.

The anticipated dates for job creation and disbursement of incentive awards are subject to change at the direction of the County Mayor or the County Mayor�s designee if in the best interest of the County.

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Date:

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

From: Carlos A. Gimenez
Mayor

Subject: Resolution Approving Qualified Target Industry Tax Refund for Confidential Project 11-00454

This substitute differs from the original in the following: 1) The company�s current employees are 266 instead of 254 as originally reported; 2) the company is committing to create the 101 new jobs over a two-year period instead of over a three-year period; 3) the company is committing to pay an average salary $70,000 to its new hires instead of $73,526.17, which is 161 percent of the average wage in Miami-Dade County; and 4) the QTI Application and cover letter has been revised and submitted by the Beacon Council to reflect the changes. The incentive amount does not change as a result of these adjustments.

STAFF RECOMMENDATION
Recommendation
The Beacon Council, on behalf of a firm that requests confidentiality, 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 Confidential Project 11-00454 (the �Business�) 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.

MANAGER'S BACKGROUND
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 101 new full-time equivalent jobs, as defined in Florida Statute Section 288.106, over a two-year period. The district location of this project has not been determined; however, the jobs will have a positive countywide impact through indirect employment and an economic multiplier effect.

This Business is considering leasing and renovating approximately 63,000 square feet of an existing building in Miami-Dade County to establish its multinational regional headquarters office. The Business is also considering Atlanta, Georgia; New York City; and various cities in Latin American as potential locations for this expansion.

Fiscal Impact / Funding Source
Confidential Project 11-00454 has applied for a total of $404,000 in QTI funds, of which 80 percent ($323,200) 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 $80,800 (or $800 per new job) in matching funds from countywide general fund revenues over a six-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 (see Attachment to the General Project Overview) and all other conditions of the incentive program. QTI incentive payments are contingent upon the company meeting its target of additional jobs.

Economic Impact Overview
The Business was established in Broward and Miami-Dade counties in 1999 in the film, video, and entertainment media industry. It currently has operations in South Florida and numerous countries in Latin American. The Business produces high quality award-winning media content which is used to entertain audiences primarily in Latin America, and Portuguese and Spanish speaking audiences in the US and other countries. The Business is the largest single customer for regional offices of five Fortune 500 companies located in Miami-Dade and Broward counties with an annual spending of over $172.2 million. The Business also has a network of over 210 smaller vendors with an annual spend of over $16.6 million.

Confidential Project 11-00454 would be an expanding film, video, and entertainment media company seeking to establish its multinational regional headquarters office (NAICS Code # 5124110/512120) in Miami-Dade County. The Business would employ 101 new workers at its Miami-Dade County facility paying an average annual salary of $70,000, which is equivalent to 161 percent of the average wage in Miami-Dade County, while maintaining its current 266 employees. Employee benefits associated with each new job created will be $15,198, according to documents submitted by The Beacon Council.

If approved, the Business plans to include an investment of $6.12 million, of which $4.42 million is allocated to construction/renovation, and $1.7 million to research and development equipment.

The Beacon Council projects that the $6.12 million in direct investment by the company and the local economic impact from operations will generate approximately $143,719 in countywide general fund revenues to Miami-Dade County over the six years the company is eligible for QTI cash incentives.

Attachments


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Deputy Mayor