File Number: 130962
|Printable PDF Format Clerk's Official Copy|
|File Number: 130962||File Type: Resolution||Status: Adopted|
|Version: 0||Reference: R-403-13||Control: County Commission|
|Requester: Regulatory and Economic Resources||Cost:||Final Action: 5/21/2013|
|Sunset Provision: No||Effective Date:||Expiration Date:|
|Registered Lobbyist:||None Listed|
|Acting Body||Date||Agenda Item||Action||Sent To||Due Date||Returned||Pass/Fail|
|Board of County Commissioners||5/21/2013||14A2||Adopted||P|
|Office of the Chairperson||5/16/2013||Additions||5/21/2013|
|County Attorney||5/15/2013||Assigned||Shannon D. Summerset|
|County Mayor||5/14/2013||Assigned||County Attorney||5/21/2013|
|REPORT:||RER (ASST. COUNTY ATTY: SHANNON SUMMERSET- WILLIAMS) (BCC SPONSOR: CMSR DIAZ) (NO CMTE ASSIGNMENT)|
|County Mayor||5/14/2013||Assigned||Jack Osterholt||4/26/2013||5/14/2013|
RESOLUTION APPROVING CONFIDENTIAL PROJECT 13-00439 AS A QUALIFIED TARGET INDUSTRY BUSINESS PURSUANT TO FLORIDA STATUTE 288.106; CONFIRMING THAT THE COMMITMENTS OF LOCAL FINANCIAL SUPPORT NECESSARY FOR CONFIDENTIAL PROJECT 13-00439 EXIST; AND PROVIDING FOR AN APPROPRIATION OF UP TO $42,000.00 FROM GENERAL REVENUE FUNDS AS LOCAL PARTICIPATION IN THE STATE OF FLORIDA QUALIFIED TARGET INDUSTRY TAX REFUND PROGRAM FOR FISCAL YEARS 2014 THROUGH 2019 INCLUSIVE, OR OVER A TIME PERIOD AS DETERMINED BY THE STATE OF FLORIDA IN ITS APPROVAL OF CONFIDENTIAL PROJECT 13-00439; AND PROVIDING FOR AN EFFECTIVE DATE
WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum, Economic Impact Overview and General Project Overview, copies of which are incorporated herein by reference; and
WHEREAS, The Beacon Council has submitted an application for economic development incentives from the State of Florida and Miami-Dade County on behalf of Confidential Project 13-00439 in order for Confidential Project 13-00439 to be recognized by the State as a Qualified Target Industry business and entitled to the financial benefits afforded under the Qualified Target Industry Tax Refund Program; and
WHEREAS, Confidential Project 13-00439 commits to create 105 full-time equivalent jobs, as defined in Florida Statute 288.106, in Miami-Dade County by December 31, 2015 with an average salary of $48,000.00, which is at least 115 percent of the state average wage; and
WHEREAS, the tax refunds provided under the Florida Qualified Target Industry Tax Refund Program to Confidential Project 13-00439 may be prorated by the State of Florida pursuant to the terms of the General Project Overview in the event that Confidential Project 13-00439 creates fewer than 105 full-time equivalent jobs,
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board approves Confidential Project 13-00439 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 Confidential Project 13-00439, as required under Florida Statute 288.106, exists in an amount not to exceed $42,000.00 from Miami-Dade County’s general funds and this local financial support will be available in the following increments:
Fiscal Year 2013-2014 $7,000.00
Fiscal Year 2014-2015 $7,000.00
Fiscal Year 2015-2016 $7,000.00
Fiscal Year 2016-2017 $7,000.00
Fiscal Year 2017-2018 $7,000.00
Fiscal Year 2018-2019 $7,000.00
or payable over a time period and at annual amounts as determined by the State of Florida in its approval of the Confidential Project 13-00439 application, as long as the $42,000.000 is not exceeded with the provision that any tax abatement grant to Confidential Project 13-00439 under Florida Statute 196.1995 reduces any Qualified Target Industry tax refund by the amount of any such abatement granted, in compliance with Florida Statute 288.106(6)(d); and 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 13-000439, in compliance with the Qualified Target Industry Program.
The necessary commitment of local financial support shall be contingent upon Confidential Project 13-00439 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 the job creation and disbursement of the 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 as determined by the County Mayor or the County Mayor’s designee.
To: Honorable Chairwoman Rebeca Sosa
and Members, Board of County Commissioners
From: Carlos A. Gimenez
Subject: Resolution Approving Qualified Target Industry Tax Refund for Confidential Project 13-00439
The Beacon Council, on behalf of a firm that requests confidentiality, 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 (Board). It is recommended that the Board approve the attached resolution authorizing Confidential Project 13-00439 to be recognized by the State as a Qualified Target Industry business and entitled to the financial benefits afforded under the Qualified Target Industry Tax Refund Program.
The attached documents relating to the application for a tax refund under the Florida Qualified Target Industry business incentive program, pursuant to Florida Statutes Section 288.106, have been prepared by The Beacon Council and reviewed by the Miami-Dade Department of Regulatory and Economic Resources.
The business operations of this project will create 105 new full-time equivalent jobs, as defined in Florida Statute 288.106, over a three-year period. This project is considering leasing and renovating approximately 24,000 square feet of an existing building in District 12 (Commissioner Diaz) to establish its multinational business enterprise and a regional headquarters for its Latin American operations. However, the jobs will have a positive countywide impact through indirect employment and a multiplier effect. Confidential Project 13-00439 is also considering the southwest region in the United States as a potential location for this expansion.
Fiscal Impact / Funding Source
Confidential Project 13-00439 has applied for a total of $210,000.00 in Qualified Target Industry funds, of which 80% ($168,000.00) would be provided by the State. If the accompanying resolution is approved by the Board, the County is committed to providing an award of up to $42,000.00 (or $400.00 per new job) in matching funds from countywide general fund revenues over a six-year period beginning in FY 2013-2014, providing a positive cost-benefit ratio to the County of 1:1.23. 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.
Qualified Target Industry 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 Qualified Target Industry 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 Qualified Target Industry application and all other conditions of the incentive program. Qualified Target Industry incentive payments are contingent upon the company meeting its jobs target.
On March 7, 2013, The Beacon Council submitted an application on behalf of Confidential Project 13-00439 for the State of Florida’s Qualified Targeted Industry Tax Refund Program. The application and the General Project Overview are attached. The parent company of Confidential Project 13-00439 is a global security services company that was founded in the 1930s with national and international offices including a subsidiary in Miami-Dade County. Confidential Project 13-00439 is seeking to establish a regional shared service center to support their Latin American operations in over ten countries. The primary activities of the shared center will be to support the day-to-day needs of the Latin American countries in the areas of accounts payable, accounts receivable, payments, collections, cash management, account reconciliations, fixed assets and general ledger accounting. In the near future, the shared service center will become the regional headquarters for their operations in Latin America.
Confidential Project 13-00439 currently has a facility in the southwest region of the United States with room for expansion. It is also evaluating a location in Medley (Miami-Dade County) and in the southwest region of the United Stated to establish the shared service center.
Confidential Project 13-00439 would be a new business unit (Shared Service Center) providing financial/professional services for their Latin American operations (NAICS Code #541940) in Miami-Dade County. It would employ 105 new workers paying an average annual salary of $48,000.00, which represents over 115% of the State average wage. Employee benefits associated with each new job created will be $7,200.00, according to the documents submitted by The Beacon Council.
If approved, the project plans to commit to an investment of $2,567,000.00, of which $1,820,000.00 is allocated to construction/renovation, and $747,000.00 to capital equipment purchases.
The Beacon Council projects that the $2,567,000.00 in direct investment by Confidential Project 13-00439 and the local economic impact from operations will generate approximately $51,806.00 in countywide general fund revenues to Miami-Dade County over the six years the company is eligible for Qualified Target Industry tax refund incentives.
The details of this project are summarized in the below chart:
CONFIDENTIAL PROJECT 13-00439 SUMMARY SHEET
APPLICANT: Confidential Project 13-00439
HEADQUARTERS LOCATION: Eastern region of the United States
PROPOSED LOCATION IN
MIAMI-DADE COUNTY: Medley (Considering)
OTHER LOCATIONS UNDER
CONSIDERATION: Southwest region of the United States
DATE OF QUALIFIED TARGET
INDUSTRY /TARGETED JOB
INCENTIVE FUND APPLICATIONS: March 7, 2013
ACTIVITY/MISSION: To lease and renovate a 24,000 square feet (approximately) office space
BUSINESS ACTIVITY: A new business unit (shared service center) providing professional/financial services to Latin America.
PROPOSED CAPITAL INVESTMENT: $2,567,000.00
TARGETED QUALIFIED TARGET
INDUSTRY /TARGETED JOB
INCENTIVE FUND INDUSTRIES: Financial/Professional Services
PROPOSED LOCATION IN DESIGNATED
PRIORITY AREA: No
NEW BUSINESS OR
EXPANDING BUSINESS: New Business Unit
TOTAL NUMBER OF DIRECT
JOBS TO BE CREATED/RETAINED: 105
EFFORT IN HIRING RESIDENTS
IN LOCAL AREA: unknown
AVERAGE WAGES FOR NEW JOBS: $48,000.00
ANNUAL EMPLOYEE BENEFIT PACKAGE: $7,200.00 (not a condition of incentive award)
NUMBER OF INDIRECT
JOBS TO BE CREATED: 42
NUMBER OF YEARS TO
CREATE NEW JOBS: 3
MAXIMUM TAX REFUND PER
JOB DIRECT JOBS CREATED: $2,000.00
AWARD APPLIED FOR: $210,000.00
COUNTY TAX REVENUE: $51,806.00
COUNTY’S MAXIMUM 20% QUALIFIED
TARGET INDUSTRY AWARD: $42,000.00
STATE’S MAXIMUM 80% QUALIFIED
TARGET INDUSTRY AWARD
TYPE OF FUNDS REQUESTED
IN APPLICATION: Countywide General Fund Revenues
COMMENTS: This summary sheet was prepared by the Miami-Dade Department of Regulatory and Economic Resources with information and data provided by The Beacon Council.
Jack Osterholt, Deputy Mayor
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