Miami-Dade Legislative Item
File Number: 112268
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File Number: 112268 File Type: Resolution Status: Amended
Version: 0 Reference: R-929-11 Control: County Commission
File Name: GENERAL PURPOSE FOREIGN TRADE ZONE Introduced: 10/25/2011
Requester: Port of Miami Cost: Final Action:
Agenda Date: 11/3/2011 Agenda Item Number: 8K1
Notes: SEE 112268 FOR FINAL VERSION AS ADOPTED Title: RESOLUTION AUTHORIZING THE MAYOR OR HIS DESIGNEE TO APPLY TO THE U.S. FOREIGN-TRADE ZONES BOARD FOR THE PURPOSE OF ESTABLISHING AND ADMINISTERING A GENERAL-PURPOSE FOREIGN TRADE ZONE [SEE ORIGINAL ITEM UNDER FILE NO. 111910]
Indexes: FOREIGN TRADE ZONE
Sponsors: Rebeca Sosa, Prime 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

Board of County Commissioners 11/3/2011 8K1 Amended
REPORT: (SEE AGENDA ITEM 8K1 AMENDED; LEGISLATIVE FILE NO. 112406.)

County Attorney 10/26/2011 Assigned Richard Seavey

County Mayor 10/25/2011 Assigned County Attorney 11/3/2011
REPORT: Port of Miami (amended version to 111910) - Comm. Sosa Sponsor

County Mayor 10/25/2011 Assigned Jack Osterholt 10/25/2011

Economic Development & Social Services Committee 9/14/2011 3E AMENDED Forwarded to BCC with a favorable recommendation with committee amendment(s)
REPORT: Assistant County Attorney Terrence Smith read the foregoing proposed resolution. Assistant County Attorney Robert Seavey advised the Committee members of proposed amendments to change the title to read “RESOLUTION AUTHORIZING THE MAYOR HIS DESGINEE TO APPLY TO THE U.S. FOREIGN-TRADE ZONES BOARD FOR PURPOSE OF ESTABLISHING AND ADMINISTERING A GENERAL PURPOSE FOREIGN TRADE ZONE” ; and to change Section 3 to read as follows: “The Board hereby authorizes the County Mayor or designee to apply to the U.S. Foreign-Trade Zones for a grant of authority to establish and administer a general purpose foreign trade zone.” Chairwoman Sosa relinquished the Chair to Vice Chairman Monestime. Commissioner Sosa, the sponsor, provided an overview of the intent of this proposed resolution. Mr. Arcelio Gerardo, representing the current Foreign Trade Zone (FTZ), appeared before the Committee seeking additional information. He stated that the current Foreign Trade Zone was informed that the Port of Miami was seeking to establish a new FTZ in Miami-Dade County. He informed the Committee members that the current FTZs could expand their boundaries to incorporate other areas located within this county. Commissioner Sosa noted her concern was for protection of free trade within Miami-Dade County. Commissioner Bell questioned who would administer and operate the proposed FTZ recommended in this resolution. In response to Commissioner Bell’ question regarding who would administer and operate the FTZ, Mr. Kevin Lynskey, Seaport Department, Assistant Director of Business Initiatives, explained that the County would be the administrator for the new general purpose FTZ. He noted that all of the individual companies would be responsible for the operating and financing costs of the individual zone operations. Commissioner Moss questioned if any dialogue occurred with the existing FTZs on whether they would expand their boundaries. In response to Commissioner Moss’ question, Mr. Lynskey noted Port Director Bill Johnson did have discussions with the Greater Miami Chamber of Commerce, administrator of the existing FTZ. An extensive discussion ensued between Commissioner Moss and Mr. Lynskey regarding the two active Zones that existed in the County and their boundaries, and the ultimate goal of this FTZ to incorporate all areas of the County. Commissioner Moss stated that if the ultimate intent was to incorporate all areas not part of existing FTZs within Miami-Dade County eventually could this proposed resolution be amended today (9/14). In response to Commissioner Moss’ question regarding a proposed amendment to incorporate areas, Assistant County Attorney Robert Seavey stated that he was not privy to any previous discussions held with the existing FTZs; therefore; he noted that he would have to work with staff to review whether an amendment, to this proposed resolution, would be appropriate at this time. Commissioner Sosa asked Deputy Mayor Jack Osterholt, along with Mr. Kevin Lynskey, Assistant Director of Business Initiatives, Seaport, to meet with Chairman Martinez and Commissioners Moss and Bell to discuss the feasibility of incorporating the three commission districts excluded from this proposal, before it was forwarded to the County Commission. A discussion ensued between Commissioner Bell and Mr. Lynskey regarding the administrator and the operator of this proposed FTZ. Vice Chairman Monestime spoke in support of moving this proposed resolution forward and waiting for the new item that would come forth after incorporating the concerns of the commissioners not outlined in this proposed resolution. It was moved by Commissioner Sosa that the foregoing proposed resolution be forwarded with a favorable recommendation with Committee amendment(s) to change the language contained with the title of the resolution to read as follows: “RESOLUTION AUTHORIZING THE MAYOR HIS DESIGNEE TO APPLY TO THE U.S. FOREIGN-TRADE ZONES BOARD FOR PURPOSE OF ESTABLISHING AND ADMINISTERING A GENERAL PURPOSE FOREIGN TRADE ZONE”; and to change the language contained within Section 3 of the body of the resolution as follows: “The Board hereby authorizes the County Mayor or designee to apply to the U.S. Foreign-Trade Zones for a grant of authority to establish and administer a general purpose foreign trade zone,” as requested by Assistant County Attorney Seavey. This motion was seconded Commissioner Bell, and upon being put to a vote, passed by a vote of 4-1 (Commissioner Moss voted “No” and Commissioner Barreiro was absent).

Legislative Text


TITLE
RESOLUTION AUTHORIZING THE MAYOR OR HIS DESIGNEE TO APPLY TO THE U.S. FOREIGN-TRADE ZONES BOARD FOR THE PURPOSE OF ESTABLISHING AND ADMINISTERING A GENERAL-PURPOSE FOREIGN TRADE ZONE

BODY
WHEREAS, this Board wishes to promote investment and employment opportunities within Miami-Dade County, and
WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum, a copy which is incorporated herein by reference,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that: 1
Section 1. The foregoing recitals are incorporated in this resolution and is approved.
Section 2. This Board hereby approves the application for establishment of a general purpose foreign trade zone.
Section 3. The Board hereby authorizes the County Mayor or designee to apply >>to<< [[for and subsequently execute an agreement with]] the U.S. >>Foreign-Trade Zones Board<< [[Department of Commerce]] for >>a grant of authority to<< establish[[ing]] and administer[[ing]] a general purpose foreign trade zone.2

This item was amended at the September 14, 2011 Economic Development and Social Services Committee meeting to clarify that the application is with the United States Foreign Trade Zones Board, and not the Department of Commerce, for a grant of authority to establish and administer a general purpose foreign trade zone.

HEADER
Date:

To: Honorable Chairman Joe A. Martinez
and Members, Board of County Commissioners From: Carlos A. Gimenez
Mayor

Subject: General Purpose Foreign Trade Zone

STAFF RECOMMENDATION
Recommendation
It is recommended that the Board adopt the accompanying Resolution authorizing the Mayor or his designee to apply for, and execute an agreement with, the U.S. Foreign Trade Zones Board. The agreement will lead to the establishment of a general purpose Foreign Trade Zone to help serve the needs of Miami-Dade County’s international trade community.

Scope
The Foreign Trade Zone will encompass Miami-Dade County north of Southwest 8th Street (U.S. 41). It will include District 1 - Commissioner Barbara J. Jordan; District 2 - Commissioner Jean Monestime; District 3 - Commissioner Audrey M. Edmonson; District 4 - Sally A. Heyman; District 5 - Commissioner Bruno A. Barreiro; District 6 - Commissioner Rebeca Sosa; District 7 - Commissioner Xavier L. Suarez; District 10 - Commissioner Senator Javier D. Souto; District 12 - Commissioner Jose “Pepe” Diaz; and District 13 - Commissioner Esteban Bovo, Jr. The impact of this agenda item is countywide as the Port of Miami (“Port”) is a regional asset and generates employment for residents throughout Miami-Dade County.

Fiscal Impact/Funding Source
The Port of Miami as the Foreign Trade Zone administrator will publish and charge fees to cover its administrative costs. All costs of operating and financing the individual site operations will be borne by subzone operators. Individual companies will be responsible for the operating and financing costs of their zone operations. No additional fiscal impact is anticipated.

Track Record/Monitor
The Seaport Department staff members responsible for monitoring the application are Bill Johnson, Director, Juan Kuryla, Deputy Director, and Kevin Lynskey, Assistant Director of Business Initiatives.

MANAGER'S BACKGROUND
Background
Miami-Dade County seeks to establish through the Port of Miami a new general purpose Foreign Trade Zone (FTZ). FTZs are geographically designated areas adjacent to ports of entry where commercial merchandise receives the same Customs treatment it would if it were outside the commerce of the United States. Merchandise may be held in the FTZ without being subject to Customs duties and other ad valorem taxes. FTZs are best administered as a public utility wherein Zone benefits are extended to any eligible entity wishing to conduct foreign trade activities. It is very common for ports to administer Zones, as is the case with both Port Everglades and JaxPort. Consequently, the Port of Miami and the Miami-Dade community will remain competitive as it seeks to expand its trade, warehousing and advanced manufacturing base.

Miami-Dade County currently has an established international trade industry that will benefit from this new zone. Two active Zones exist in the County. FTZ #166 is administered by the Vision Council and serves the needs of Homestead. It has only one active site. FTZ Zone #32 is located in Doral and has traditionally been confined to the location occupied by the Miami Free Zone on 107th Avenue. The Greater Miami Chamber of Commerce is the sponsor, though a private entity acts as the administrator. A third Zone was established two decades ago in Wynwood, FTZ #180, but the site has never been activated, suffered through a bankruptcy and other litigation with the City of Miami, no longer has associated property, and has not filed its status papers with the Foreign Trade Zone Board in a number of years.

The Miami-Dade County FTZ will encompass all land area located within Miami-Dade County which is north of Southwest 8th Street, including the Port of Miami. Portions of this area are part of the County’s Empowerment Zone and Central Enterprise Zone, designated areas offering fiscal incentives to businesses that locate or expand within the zone. The application includes three initial sites which seek designation; they are the Port of Miami, the Flagler Logistics Hub and Flagler Station. These three sites are connected by rail service which links to the national railroad system. The southern half of Miami-Dade County (south of Southwest 8th Street) is already designated a FTZ (albeit under the ‘site specific’ model) and is administered by the Vision Council.

It is the County’s intent to administer the FTZ through the Port of Miami as a public utility so that any eligible property owner within the Zone can receive Custom’s benefits. This model wherein any qualifying site can receive the benefits of being in a FTZ is the preferred mode of operation of the Foreign Trade Zones Board. Over the decades, the national model shifted from being ‘site specific’ to being ‘site flexible,’ wherein multiple subzones exist within the boundaries of a FTZ.

As noted above, costs of operating and financing individual site operations will be borne by subzone operators. Individual companies will be responsible for the operating and financing costs of their zone operations, with the Port of Miami charging customary fees for helping to establish subzone sites and for administrative costs associated with periodic reporting to the Foreign Trade Zones Board.


_____________________
Deputy Mayor




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