Miami-Dade Legislative Item
File Number: 121879
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File Number: 121879 File Type: Resolution Status: Adopted
Version: 0 Reference: R-796-12 Control: Board of County Commissioners
File Name: RESOLUTION AMENDING RESOLUTION R-992-11 Introduced: 9/19/2012
Requester: Regulatory and Economic Resources Cost: Final Action: 10/2/2012
Agenda Date: 10/2/2012 Agenda Item Number: 8M2
Notes: Title: RESOLUTION AMENDING RESOLUTION NO. R-992-11 RELATED TO CONFIDENTIAL PROJECT NO. 12-00052; APPROVING CONFIDENTIAL PROJECT NO. 12-00052 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. 12-00052 EXIST; AND PROVIDING AN APPROPRIATION OF UP TO $82,800 FROM GENERAL REVENUE FUNDS AS LOCAL PARTICIPATION IN THE STATE OF FLORIDA QUALIFIED TARGET INDUSTRY TAX REFUND PROGRAM FOR FISCAL YEARS 2013 THROUGH 2021, INCLUSIVE, OR OVER A TIME PERIOD AS DETERMINED BY THE STATE OF FLORIDA IN ITS APPROVAL OF CONFIDENTIAL PROJECT NO. 12-00052 APPLICATION WITH THE PROVISION THAT ANY TAX ABATEMENT GRANTED TO CONFIDENTIAL PROJECT NO. 12-00052 UNDER FLORIDA STATUTE 196.1995 REDUCES ANY QUALIFIED TARGET INDUSTRY TAX REFUND TO CONFIDENTIAL PROJECT NO. 12-00052 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
Indexes: QUALIFIED TARGET INDUSTRY
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 10/2/2012 8M2 Adopted P
REPORT: Commissioner Sosa asked Deputy Mayor Russell Benford to ensure that a representative from the Beacon Council meet with Commissioner Bell regarding the reduction in the number of new jobs to be created from Confidential Project No. 12-00052.

County Attorney 9/19/2012 Assigned Shannon D. Summerset

County Mayor 9/19/2012 Assigned County Attorney 10/2/2012
REPORT: RER - Comm. Sosa Sponsor - Attachments: Application, QTI

County Mayor 9/19/2012 Assigned Jack Osterholt 9/19/2012

Legislative Text


TITLE
RESOLUTION AMENDING RESOLUTION NO. R-992-11 RELATED TO CONFIDENTIAL PROJECT NO. 12-00052; APPROVING CONFIDENTIAL PROJECT NO. 12-00052 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. 12-00052 EXIST; AND PROVIDING AN APPROPRIATION OF UP TO $82,800 FROM GENERAL REVENUE FUNDS AS LOCAL PARTICIPATION IN THE STATE OF FLORIDA QUALIFIED TARGET INDUSTRY TAX REFUND PROGRAM FOR FISCAL YEARS 2013 THROUGH 2021, INCLUSIVE, OR OVER A TIME PERIOD AS DETERMINED BY THE STATE OF FLORIDA IN ITS APPROVAL OF CONFIDENTIAL PROJECT NO. 12-00052 APPLICATION WITH THE PROVISION THAT ANY TAX ABATEMENT GRANTED TO CONFIDENTIAL PROJECT NO. 12-00052 UNDER FLORIDA STATUTE 196.1995 REDUCES ANY QUALIFIED TARGET INDUSTRY TAX REFUND TO CONFIDENTIAL PROJECT NO. 12-00052 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, Resolution No. R-992-11 approved confidential project as a Qualified Targeted Industry business, the applicant has requested certain changes to its application; and
WHEREAS, this project commits to creating an additional 112 full-time equivalent jobs, as defined in Florida Statute Section 288.106, to Miami-Dade County by December 31, 2016 with an average salary of $67,000, which is at least 150 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 112 full-time equivalent jobs,

NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, this Board hereby amends Resolution No. R-992-11 and 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. 12-00052 (the “Business”) be approved as a qualified target industry business pursuant to Florida Statute 288.106, which created the Qualified Target Industry (QTI) Tax Refund Program.
The necessary commitment of local financial support for Confidential Project No. 12-00052 as required under Florida Statute 288.106, exists in an amount not to exceed $82, 800 from General Revenue Funds; and that this local financial support will be available in the following increments:
Fiscal Year 2013 - 2014 $10,350.00
Fiscal Year 2014 - 2015 $10,350.00
Fiscal Year 2015 - 2016 $10,350.00
Fiscal Year 2016 - 2017 $10,350.00
Fiscal Year 2017 - 2018 $10,350.00
Fiscal Year 2018 - 2019 $10,350.00
Fiscal Year 2019 - 2020 $10,350.00
Fiscal Year 2020 - 2021 $10,350.00
TOTAL $82,800.00

Or payable over a time period and at annual amounts as determined by the State of Florida in its approval of Confidential Project No. 12-00052 application, as long as the $82,800 is not exceeded with the provision that any tax abatement granted to Confidential Project No. 12-00052, 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. 12-00052 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 112 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. 12-00052 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 Amending Resolution No. R-992-11 under the Qualified Target Industry Tax Refund for Confidential
Project No. 12-00052

STAFF RECOMMENDATION
Recommendation
It is recommended that the Board of County Commissioners (Board) approve the request to amend Resolution No. R-992-11, which authorized Confidential Project No. 12-00052 to participate in the Qualified Targeted Industry Tax Refund Program (QTI). The following revisions were made: 1) the number of new jobs decreased from 210 to 112; 2) the capital investment amount decreased from $6,500,000 to $6,445,000; 3) the square footage of the facility decreased from 65,000 to 54,000; and 4) the number of current employees decreased from 390 to 283; in the previous application consultation positions were inadvertently included (current full-time employee base remains the same).

Requested Revisions R-992-11 (current) Proposed Changes New jobs to be created 210 112 Capital Investment $6,500,000 $6,445,000 Square footage of facility 65,000 54,000 Current employees 390 283

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 Regulatory and Economic Resources 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 112 new full-time equivalent jobs, as defined in Florida Statute Section 288.106, over a five-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 a multiplier effect.

This Business is considering leasing and renovating approximately 54,000 square feet of an existing building in Miami-Dade County to establish its multinational business enterprise. The Business is also considering Toronto, Ontario as a potential location for this expansion.

Fiscal Impact / Funding Source
Confidential Project No. 12-00052 has applied for a total of $414,400 in QTI funds, of which 80 percent ($331,520) would be provided by the State. If the accompanying resolution is approved by the Board, the County is committed to providing an award of no greater than $82,880 (or $740 per new job) in matching funds from countywide general fund revenues over an eight-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 founded in the early 1990s and is a leader in the traditional and digital global advertising arena. It currently has locations throughout the U.S., South Asia, Europe, and Canada. Due to the popularity of social networking, the company has done extremely well with the growth of its e-commerce ad agency business. Thus, it is seeking to expand its office space and consolidate its personnel, currently housed in three separate locations throughout Miami-Dade County, in one location. This user-friendly facility will also be conducive to customers being able to interact with the creative and technical teams to create their end product.

Confidential Project No. 12-00052 would be an expanding advertising agency and information technology consulting company seeking to establish its multinational business enterprise office (NAICS Code # 541810/541519) in Miami-Dade County. The Business would employ 112 new workers at its Miami-Dade County facility paying an average annual salary of $67,000, which is equivalent to at least 150 percent of the state average wage, while maintaining its current 283 employees. Employee benefits associated with each new job created will be $19,000, according to documents submitted by The Beacon Council.

If approved, the Business plans to commit to an investment of $6,445,000, of which $5,095,000 is allocated to construction/renovation, and $1,350,000 to computer and office equipment.

The Beacon Council projects that the $6,445,000 in direct investment by the Business and the local economic impact from operations will generate approximately $185,663 in countywide general fund revenues to Miami-Dade County over the eight years the company is eligible for QTI cash incentives.

Attachments



_______________________________
Jack Osterholt, Deputy Mayor




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