Miami-Dade Legislative Item
File Number: 121884
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File Number: 121884 File Type: Resolution Status: Adopted
Version: 0 Reference: R-801-12 Control: Board of County Commissioners
File Name: BROWNFIELD REDEVELOPMENT REFUND APPLICATION Introduced: 9/20/2012
Requester: Regulatory and Economic Resources Cost: Final Action: 10/2/2012
Agenda Date: 10/2/2012 Agenda Item Number: 8M7
Notes: Title: RESOLUTION SUPPORTING CONFIDENTIAL PROJECT NO. 13-00055 FOR A STATE OF FLORIDA BROWNFIELD REDEVELOPMENT BONUS REFUND PURSUANT TO FLORIDA STATUTES § 288.107 WHILE OPTING OUT OF THE LOCAL MATCH AND FURTHER PROVIDING FOR AN EFFECTIVE DATE
Indexes: BROWNFIELD REDEVELOPMENT
Sponsors: Jean Monestime, 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 8M7 Adopted P

County Attorney 9/20/2012 Assigned Shannon D. Summerset 9/20/2012

County Mayor 9/20/2012 Assigned County Attorney 10/2/2012
REPORT: RER - Comm. Monestime Sponsor - exempt from cmte - Attachment: Project Overview, Statutes

County Mayor 9/20/2012 Assigned Jack Osterholt 9/20/2012

Legislative Text


TITLE
RESOLUTION SUPPORTING CONFIDENTIAL PROJECT NO. 13-00055 FOR A STATE OF FLORIDA BROWNFIELD REDEVELOPMENT BONUS REFUND PURSUANT TO FLORIDA STATUTES § 288.107 WHILE OPTING OUT OF THE LOCAL MATCH AND FURTHER PROVIDING FOR AN EFFECTIVE DATE

BODY
WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum, a copy of which is incorporated herein by reference; and
WHEREAS, the business under consideration is a retail discount grocery store; and
WHEREAS, Confidential Project No. 13-00055 is located in Northwest Miami-Dade County; and
WHEREAS, Confidential Project No. 13-00055 is an expanding business with retail discount grocery stores throughout Miami-Dade County, and this project will invest $20 million in land acquisition, capital site improvements, including upgrades to the construction of the building, and on-site and off-site improvements to infrastructure; and
WHEREAS, this project will hire 315 residents with annualized wages of $20,000 from the local area for its retail discount grocery store operations; and
WHEREAS, participation in the local financial support is optional and understood; and
WHEREAS, the Board of County Commissioners of Miami-Dade County requests a waiver from the local financial support requirement authorized under the Brownfield Redevelopment Bonus Refund Program pursuant to Florida Statutes § 288.106, and will exercise that option,

NOW THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board supports Confidential Project No. 13-0005 for the State of Florida Brownfield Redevelopment Bonus Refund pursuant to Florida Statutes § 288.107.

HEADER
Date:

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

From: Carlos A. Gimenez
County Mayor

Subject: Resolution in Support of Confidential Project No. 13-00055 for a State of Florida Brownfield Redevelopment Bonus Refund

STAFF RECOMMENDATION
Recommendation
It is recommended that the Board of County Commissioners (Board) support the approval of Confidential Project No. 13-00055 for a State of Florida (State) Brownfield Redevelopment Bonus Refund to expand into a new facility in Northwest Miami-Dade County. Because the State assumes that the locality is providing financial support, the County must request a waiver to opt out of the 20 percent match.

Scope
The business operations of this project will create 315 new jobs that will primarily impact District 2, Commissioner Jean Monestime. The construction of this project will also have a positive countywide impact due to direct and indirect employment and capital investment.

Fiscal Impact / Funding Source
Approval of this Brownfield Redevelopment Bonus Refund will not create a negative fiscal impact to the County. Through this program, the business is eligible to receive up to $2,500 for each job created and the State will pay 80 percent (or $2,000) for each job created or up to $630,000 for the estimated 315 jobs to be created. The County opts out of its 20 percent match in the Brownfield Redevelopment Bonus program because it can support businesses through other incentive programs, such as the Qualified Targeted Industry (QTI) and the Targeted Jobs Incentive Fund (TJIF) programs. This particular project is not eligible for a QTI or a TJIF incentive, as retail is not a targeted industry under either of these two programs. However, under Florida Statute 288.107 the business is eligible for the Brownfield Redevelopment Bonus incentive providing that certain criteria are met, as specified in the statute and fully defined later in this memorandum.

Track Record/Monitor
This new facility will be an expansion of the company’s retail discount stores in Miami-Dade County. The company currently has over 90,000 employees in the State of Florida. The State will pay the incentive and verify that all conditions have been met.

MANAGER'S BACKGROUND
Background
The State of Florida created the Brownfield Redevelopment Bonus Refund Program as codified in Section 288.107 of the Florida Statutes. The Brownfield Redevelopment Bonus is available to encourage redevelopment and job creation within designated brownfield areas. Pre-approved applicants receive tax refunds of up to $2,500 for each new job created. The amount of the refund is equal to 20 percent of the average annual wage of the new jobs created. While a minimum wage salary could be as low as $15,400, the company has stated in its application that the average wage for its new jobs will be $20,000. Refunds are based on taxes paid by the business, including corporate income, sales, ad valorem, intangible personal property, insurance premiums, and certain other taxes. No more than 25 percent of the total refund approved may be paid in any single fiscal year. Under Florida Statute 288.107 Confidential Project No. 13-00055 is eligible to apply for the Brownfield Bonus to help offset cost spent to date to investigate and address legacy environmental issues associated with the property and their potential impact on redevelopment, costs that Confidential Project No. 13-00055 would not have incurred on a greenfield site. Such legacy environmental issues include: (i) former contamination and/or contamination remediation associated with a petroleum underground storage tank at the subject property; (ii) indiscriminate above ground dumping and below ground disposal of solid waste, since removed and/or remediated, at the subject property; (iii) mercury, chlorinated solvents and phenols contamination and contamination remediation associated with a former apparel company and/or a printing business on the adjoining western parcel being retained by the seller; (iv) former use of up to 85 septic tanks at the subject property for domestic sewage; (v) documented contamination associated with at least one underground storage tank at an automotive body shop located directly adjacent to the north of the subject property; (vi) contamination and contamination remediation associated with petroleum underground storage tanks at one current and one former retail fueling station located adjacent to the north of the subject property; and (vii) contamination associated with at least one petroleum underground storage tanks at a former retail fueling station located directly adjacent to the northeast of the subject property.  In addition, given the significance of the nature and history of contamination and the likely costs associated with any residual contamination that could be uncovered during the redevelopment process, the risk of incurring even greater environmental costs is real and presents obstacles to closing on the transaction and moving forward with the project. 

As provided in Florida Statutes 288.107(3)(a)-(e) the criteria for participation in the program are, in relevant part:
1) Create at least ten new Florida full-time jobs with benefits, excluding construction and site remediation jobs. Confidential Project No. 13-00055 is projecting the creation of 315 new jobs.
2) Be a business that can demonstrate a fixed capital investment of at least $2 million in mixed-use business (including multi-unit housing, commercial, retail, and industrial) activity located in a brownfield area. Confidential Project No. 13-00055 is investing approximately $20 millions.
3) Demonstrate that the project will diversify and strengthen the economy of the area surrounding the site. Confidential Project No. 13-00055 will invest towards the cleanup and redevelopment of the site and will diversify the economy by bringing in new retail and commercial development. As a result, the area’s tax revenues will increase.
4) Demonstrate that the project will promote capital investments in the area beyond that contemplated for the rehabilitation of the site. This is criterion is expected to be achieved due to the significant investment and scope of the project.
5) Provide a local government resolution supporting the project with a local match, or in the alternative, a resolution supporting the project, but opting out of the match. This item, if approved, will meet this criterion.

This project involves the construction of a new 185,000 square foot retail discount grocery store which will provide a wide variety of grocery and household items to consumers. The details of this project are listed below:

APPLICANT: Confidential Project No. 13-00055 LOCATION: Confidential COMMISSION DISTRICT: District 2 DATE OF APPLICATION: August 27, 2012 OVERALL BUSINESS ACTIVITY/MISSION: To construct and operate a 185,000 square foot retail grocery store PROPOSED LOCAL BUSINESS ACTIVITY: National retail discount grocery store chain PROPOSED CAPITAL INVESTMENT: $20 million TARGETED INDUSTRY: Retail PROPOSED LOCATION IN DESIGNATED PRIORITY AREA? Yes, Brownfield NEW OR EXPANDING BUSINESS? Expanding NUMBER OF DIRECT JOBS TO BE CREATED/RETAINED: 315 COMMENTS: Project information provided by The Goldstein Environmental Law Firm, P.A. Attachments

____________________________________
Jack Osterholt, Deputy Mayor
Honorable Chairman Joe A. Martinez



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