Miami-Dade Legislative Item
File Number: 112379
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File Number: 112379 File Type: Resolution Status: Adopted
Version: 0 Reference: R-1071-11 Control: County Commission
File Name: QTI TAX REFUND FOR CHOPARD MARKETING SERVICES Introduced: 11/8/2011
Requester: Sustainability, Planning & Economic Enhancement Cost: Final Action: 12/6/2011
Agenda Date: 12/6/2011 Agenda Item Number: 8N2
Notes: Title: RESOLUTION APPROVING CHOPARD MARKETING SERVICES, INC., AS A QUALIFIED TARGET INDUSTRY BUSINESS PURSUANT TO FLORIDA STATUTE 288.106; CONFIRMING THAT THE COMMITMENTS OF LOCAL FINANCIAL SUPPORT NECESSARY FOR CHOPARD MARKETING SERVICES, INC., EXIST; AND PROVIDING AN APPROPRIATION OF UP TO $18,000 FROM GENERAL REVENUE FUNDS AS LOCAL PARTICIPATION IN THE STATE OF FLORIDA QUALIFIED TARGET INDUSTRY TAX REFUND PROGRAM FOR FISCAL YEARS 2013 THROUGH 2019, INCLUSIVE, OR OVER A TIME PERIOD AS DETERMINED BY THE STATE OF FLORIDA IN ITS APPROVAL OF CHOPARD MARKETING SERVICES, INC.; AND PROVIDING FOR AN EFFECTIVE DATE
Indexes: QUALIFIED TARGET INDUSTRY
Sponsors: Rebeca Sosa, Co-Prime Sponsor
  Xavier L. Suarez, Co-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 12/6/2011 8N2 Adopted P

Economic Development & Social Services Committee 11/9/2011 3I Forwarded to BCC with a favorable recommendation P

County Mayor 11/8/2011 Additions

County Attorney 11/8/2011 Assigned Brenda Kuhns Neuman 11/8/2011

County Mayor 11/8/2011 Assigned County Attorney 12/6/2011
REPORT: SPEED - Brenda Neuman assisted - Comm. Sosa Sponsor - pending cmte - Attachment: QTI

County Mayor 11/8/2011 Assigned Jack Osterholt 11/8/2011

Legislative Text


TITLE
RESOLUTION APPROVING CHOPARD MARKETING SERVICES, INC., AS A QUALIFIED TARGET INDUSTRY BUSINESS PURSUANT TO FLORIDA STATUTE 288.106; CONFIRMING THAT THE COMMITMENTS OF LOCAL FINANCIAL SUPPORT NECESSARY FOR CHOPARD MARKETING SERVICES, INC., EXIST; AND PROVIDING AN APPROPRIATION OF UP TO $18,000 FROM GENERAL REVENUE FUNDS AS LOCAL PARTICIPATION IN THE STATE OF FLORIDA QUALIFIED TARGET INDUSTRY TAX REFUND PROGRAM FOR FISCAL YEARS 2013 THROUGH 2019, INCLUSIVE, OR OVER A TIME PERIOD AS DETERMINED BY THE STATE OF FLORIDA IN ITS APPROVAL OF CHOPARD MARKETING SERVICES, INC.; 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 30 full-time equivalent jobs, as defined in Florida Statute Section 288.106, to Miami-Dade County by December 31, 2014 with an average salary of $50,000, which is at least 115 percent of the state average wage; 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 30 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 Chopard Marketing Services, Inc., (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 Chopard Marketing Services, Inc. as required under Florida Statute 288.106, exists in an amount not to exceed $18,000 from General Revenue Funds; and this local financial support will be available in the following increments:
Fiscal Year 2013 - 2014 $3,000.00
Fiscal Year 2014 - 2015 $3,000.00
Fiscal Year 2015 - 2016 $3,000.00
Fiscal Year 2016 - 2017 $3,000.00
Fiscal Year 2017 - 2018 $3,000.00
Fiscal Year 2018 - 2019 $3,000.00 TOTAL $18,000.00

Or payable over a time period and at annual amounts as determined by the State of Florida in its approval of Chopard Marketing Services, Inc. application, as long as the $18,000 is not exceeded with the provision that any tax abatement granted to Chopard Marketing Services, 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 Chopard Marketing Services, Inc. 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 30 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 Chopard Marketing Services, Inc. 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.

HEADER
Date:

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

From: Carlos A. Gimenez
County Mayor

Subject: Resolution Approving Qualified Target Industry Tax Refund for Chopard Marketing Services, Inc.

STAFF RECOMMENDATION
Recommendation
The Beacon Council, on behalf of Chopard Marketing Services, 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 Chopard Marketing Services, Inc., (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.

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 Sustainability, Planning, and Economic Enhancement Department.

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 30 new full-time equivalent jobs, as defined in Florida Statute Section 288.106, over a three-year period. It is expected that this project will impact Commission District 7 but also have a positive countywide impact through indirect employment and a multiplier effect.

This Business is considering leasing and renovating approximately 22,000 square feet of an existing building in Miami-Dade County to establish its regional headquarters. The Business is also considering New York and New Jersey as potential locations for this expansion.

Fiscal Impact / Funding Source
The Business has applied for a total of $90,000 in QTI funds, of which 80 percent ($72,000) would be provided by the State. If the accompanying resolution is approved by the BCC, the County is committed to providing an award of no greater than $18,000 (or $600 per new job) in matching funds from countywide general fund revenues over a six-year period beginning in FY 2013-2014.

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
Chopard Marketing Services, Inc. is a 150-year-old Swiss based family-owned business specializing in high-end luxury watches, jewelry and accessories. The business unit, currently located in Coral Gables, manages the company’s operations in the Caribbean and Latin America. The plans are to expand the Latin American operations and create a state-of-the-art service and training center for the western hemisphere.

The Business would be an expanding company seeking to establish its regional headquarters (NAICS Code # 551114) in Miami-Dade County. The Business would employ 30 new employees at its Miami-Dade County facility, while maintaining its 14 current employees. The new employees would be paid an average annual salary of $50,000, which represents over 115 percent of the state average wage. Employee benefits associated with each new job created will be $5,000 according to documents submitted by The Beacon Council.

If approved, the Business plans to commit to an investment of $1.7 million, of which $1,000,000 is allocated to construction/renovation, $500,000 to manufacturing and equipment, and $200,000 to computer and office equipment.

The Beacon Council projects that the $1.7 million in direct investment by the Business and the local economic impact from operations will generate approximately $32,362 in countywide general fund revenues to Miami-Dade County over the six years the company is eligible for QTI cash incentives.

Attachments



_______________________________
Deputy Mayor


































PROJECT CHOPARD MARKETING SERVICES, INC. SUMMARY SHEET

APPLICANT: Chopard Marketing Services, Inc. HEADQUARTERS LOCATION: Miami-Dade County (proposed) PROPOSED LOCATION IN MIAMI-DADE COUNTY: TBD OTHER LOCATIONS UNDER CONSIDERATION: New York and New Jersey DATE OF QTI/TJIF APPLICATIONS: October 26, 2011 OVERALL BUSINESS ACTIVITY/MISSION: To purchase and renovate a 22,000 square feet facility PROPOSED LOCAL BUSINESS ACTIVITY: Regional Headquarters (Latin American and Caribbean) PROPOSED CAPITAL INVESTMENT: $1.7 million TARGETED QTI/TJIF INDUSTRIES: Regional Headquarters and training center PROPOSED LOCATION IN DESIGNATED PRIORITY AREA: No NEW BUSINESS OR EXPANDING BUSINESS: Expansion TOTAL NUMBER OF DIRECT JOBS TO BE CREATED/RETAINED: 30/14 EFFORT IN HIRING RESIDENTS IN LOCAL AREA: unknown ESTIMATED ANNUALIZED AVERAGE WAGES FOR NEW JOBS: $50,000 ANNUAL EMPLOYEE BENEFIT PACKAGE: $5,000 (not a condition of incentive award) NUMBER OF INDIRECT JOBS TO BE CREATED: 12 NUMBER OF YEARS TO CREATE NEW JOBS: 3 MAXIMUM TAX REFUND PER JOB DIRECT JOBS CREATED: $3,000 MAXIMUM INCENTIVE AWARD APPLIED FOR: $90,000 PROJECTED INCREMENTAL COUNTY TAX REVENUE: $32,362 COUNTY’S MAXIMUM 20% QTI AWARD: $18,000 STATE’S MAXIMUM 80% QTI AWARD CONTRIBUTION: $72,000 TYPE OF FUNDS REQUESTED IN APPLICATION: Countywide General Fund Revenues COMMENTS: This summary sheet prepared by SPEED from information and data provided by the Beacon Council.
Honorable Chairman Joe A. Martinez
and Members, Board of County Commissioners
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