Miami-Dade Legislative Item
File Number: 112499
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File Number: 112499 File Type: Resolution Status: Adopted
Version: 0 Reference: R-1074-11 Control: Board of County Commissioners
File Name: QTI REFUND RE: BANAH INTERNATIONAL GROUP, INC. Introduced: 11/29/2011
Requester: Sustainability, Planning & Economic Enhancement Cost: Final Action: 12/6/2011
Agenda Date: 12/6/2011 Agenda Item Number: 8N5
Notes: TLL- 11/29/2011 Title: RESOLUTION APPROVING BANAH INTERNATIONAL GROUP, INC. AS A QUALIFIED TARGET INDUSTRY BUSINESS PURSUANT TO FLORIDA STATUTE 288.106; CONFIRMING THAT THE COMMITMENTS OF LOCAL FINANCIAL SUPPORT NECESSARY FOR BANAH INTERNATIONAL GROUP, INC., EXIST; AND PROVIDING AN APPROPRIATION OF UP TO $86,140 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 BANAH INTERNATIONAL GROUP, INC.; AND PROVIDING FOR AN EFFECTIVE DATE [SEE ORIGINAL ITEM UNDER FILE NO. 112378]
Indexes: QUALIFIED TARGET INDUSTRY
Sponsors: Rebeca Sosa, Co-Prime Sponsor
  Bruno A. Barreiro, 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 8N5 Adopted P

County Attorney 11/29/2011 Assigned Brenda Kuhns Neuman

County Mayor 11/29/2011 Assigned County Attorney 12/6/2011
REPORT: SPEED (AMEND TO LEG# 112378) (ASST. COUNTY ATTY: BRENDA K. NEUMAN)

County Mayor 11/29/2011 Assigned Jack Osterholt 11/29/2011 11/29/2011

Economic Development & Social Services Committee 11/9/2011 3H AMENDED Forwarded to BCC with a favorable recommendation with committee amendment(s) P
REPORT: The Committee forwarded the foregoing proposed resolution to the County Commission with a favorable recommendation with Committee amendments to correct scrivener’s errors existing in the title of the resolution, to reflect the Fiscal Years as “2013 THROUGH 2019” rather than “2014 THROUGH 2020;” and on handwritten page 7, Paragraph 2, to reflect the Fiscal Years at the top of the list as “2013 - 2014” rather than “2014 – 2015.”

Legislative Text


TITLE
RESOLUTION APPROVING BANAH INTERNATIONAL GROUP, INC. AS A QUALIFIED TARGET INDUSTRY BUSINESS PURSUANT TO FLORIDA STATUTE 288.106; CONFIRMING THAT THE COMMITMENTS OF LOCAL FINANCIAL SUPPORT NECESSARY FOR BANAH INTERNATIONAL GROUP, INC., EXIST; AND PROVIDING AN APPROPRIATION OF UP TO $86,140 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 BANAH INTERNATIONAL GROUP, 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 292 full-time equivalent jobs, as defined in Florida Statute Section 288.106, in Miami-Dade County by December 31, 2014 with an average salary of $45,834, 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 292 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 BANAH International Group, 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 BANAH International Group, Inc. as required under Florida Statute 288.106, exists in an amount not to exceed $86,140 from General Revenue Funds; and this local financial support will be available in the following increments:

Fiscal Year[[ 2014]]>>2013<< - [[2015]]>>2014<< $14,357.00
Fiscal Year 2014 - 2015 $14,357.00
Fiscal Year 2015 - 2016 $14,357.00
Fiscal Year 2016 - 2017 $14,357.00
Fiscal Year 2017 - 2018 $14,356.00
Fiscal Year 2018 - 2019 $14,356.00
TOTAL $86,140.00

Or payable over a time period and at annual amounts as determined by the State of Florida in its approval of BANAH International Group, Inc. application, as long as the $86,140 is not exceeded with the provision that any tax abatement granted to BANAH International Group, 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 BANAH International Group, Inc. in compliance with the QTI Program, including the requirement that the Business expand by or through additions to real and personal property, resulting in the net increase in employment of 292 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 upon BANAH International Group, 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 BANAH International Group, Inc.

This item was amended at the November 9, 2011 Economic Development and Social Services Committee to correct the following scrivener’s errors: 1) The incentive disbursement dates are from fiscal years 2013 through 2019, instead of fiscal years 2014 through 2020; and 2) The general fund revenues are over a six-year period beginning in FY 2013-2014, instead of FY 2014-2015. The incentive amount does not change as a result of these amendments.

STAFF RECOMMENDATION
Recommendation
The Beacon Council, on behalf of BANAH International Group, 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 BANAH International Group, 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 292 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 5 but also have a positive countywide impact through indirect employment and a multiplier effect.

This Business is considering leasing and renovating approximately 124,000 square feet of an existing building in Miami-Dade County to establish its international headquarters. The Business is also considering Alabama, Texas and Dominican Republic as potential locations for this expansion.

Fiscal Impact / Funding Source
The Business has applied for a total of $430,700 in QTI funds, of which 80 percent ($344,560) 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 $86,140 (or $292 per new job) in matching funds from countywide general fund revenues over a six-year period beginning in FY 2014-2015.

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.

MANAGER'S BACKGROUND
Economic Impact Overview
BANAH International Group, Inc. is a large sugar producer and import/export company headquartered in Miami-Dade County with partnerships with companies in Brazil, Colombia, Guatemala, Paraguay, Costa Rica, and Santo Domingo. The Business is seeking to expand its production to include a packaging and warehouse component as well as its output of various flavors of liquid sugars for distribution in the national market.

The Business would be an expanding company seeking to establish its internal headquarters which includes production/packing and warehouse (NAICS Code # 561910), Sales (NAICS Code #423990), and Administration (NAICS Code #561110) in Miami-Dade County. The Business would employ 292 new employees at its Miami-Dade County facility, while maintaining its 20 current employees. The new employees would be paid an average annual salary of $45,834, which represents over 115 percent of the state average wage. Employee benefits associated with each new job created will be $10,000 according to documents submitted by The Beacon Council.

If approved, the Business plans to commit to an investment of $7.7 million, of which $1.3 million is allocated to construction/renovation, $5,000,000 to manufacturing and equipment, and $1.4 million to computer and office equipment.

The Beacon Council projects that the $7.7 million in direct investment by the Business and the local economic impact from operations will generate approximately $104,319 in countywide general fund revenues to Miami-Dade County over the six years the company is eligible for QTI cash incentives.

Attachments




_______________________________
Deputy Mayor



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