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RESOLUTION APPROVING PROJECT ESTEEL AS A TARGETED JOBS INCENTIVE FUND PROGRAM BUSINESS PURSUANT TO CHAPTER 2, ARTICLE LXXXVI OF THE CODE OF MIAMI-DADE COUNTY, FLORIDA; CONFIRMING THAT THE COMMITMENT OF INCENTIVE AWARDS FOR PROJECT ESTEEL EXISTS; PROVIDING AN APPROPRIATION OF UP TO $4,892,000.00 FROM COUNTYWIDE GENERAL FUND REVENUES FOR FISCAL YEARS 2022-23 THROUGH 2031-32; AUTHORIZING THE COUNTY MAYOR OR COUNTY MAYOR�S DESIGNEE TO MAKE NON-SUBSTANTIVE MODIFICATIONS OR TO MODIFY THE JOB CREATION AND DISBURSEMENT DATES TIMELINE, AND TO EXECUTE ALL CONTRACTS, AGREEMENTS AND AMENDMENTS, AND PROVIDING FOR AN EFFECTIVE DATE

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WHEREAS, this Board desires to accomplish the purposes outlined in the accompanying memorandum and Targeted Jobs Incentive Fund (TJIF) Project ESTEEL Application and Agreement for Targeted Jobs Incentive Fund (TJIF), copies of which are incorporated herein by reference; and

WHEREAS, Project ESTEEL qualifies as a target industry business under Chapter 2, Article LXXXVI of the Code of Miami-Dade County, Florida (TJIF Ordinance),

NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF MIAMI-DADE COUNTY, FLORIDA, that this Board hereby:

Section 1. Adopts and ratifies the matters set forth the foregoing recitals.

Section 2. 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.

Section 3. Authorizes the County Mayor or County Mayor�s designee to execute the Application and Agreement for TJIF between Miami-Dade County and Project ESTEEL, as a TJIF program business pursuant to the TJIF Ordinance, in substantially the form attached hereto and incorporated herein by reference.

Section 4. Further authorizes the County Mayor or County Mayor�s designee to make non-substantive modifications, including modifications to the job creation and disbursement dates timeline, and to execute all contracts, agreements, and amendments necessary to further the purposes set forth in this resolution.

Section 5. Finds that the commitment of incentive awards for Project ESTEEL exists in an amount not to exceed $4,892,000.00, from Countywide General Fund revenues, and is conditioned on and subject to specific annual appropriations by the Board in the following increments:

Fiscal Year 2022-23 - $489,200.00
Fiscal Year 2023-24 - $489,200.00
Fiscal Year 2024-25 - $489,200.00
Fiscal Year 2025-26 - $489,200.00
Fiscal Year 2026-27 - $489,200.00
Fiscal Year 2027-28 - $489,200.00
Fiscal Year 2028-29 - $489,200.00
Fiscal Year 2029-30 - $489,200.00
Fiscal Year 2030-31 - $489,200.00
Fiscal Year 2031-32 - $489,200.00
TOTAL $4,892,000.00

with the provision that any tax abatement granted to Project ESTEEL under section 196.1995, Florida Statutes, reduces any TJIF incentive award granted by the amount of any such tax abatement granted, and will be paid to Project ESTEEL with the stipulation that Project ESTEEL is in compliance with the TJIF program as set forth in the TJIF Ordinance, including but not limited to the requirement that at least 180 jobs be created. In no event shall this resolution operate to obligate the County to make disbursements to Project ESTEEL in an amount that contradicts or violates the program requirements as set forth in the TJIF Ordinance.

Section 6. Requires that the commitment of incentive awards shall be contingent on Project ESTEEL maintaining the jobs during the life of the incentive and ensuring that its hiring practices are consistent with and reflect the diversity of the Miami-Dade County community. Project ESTEEL also agrees to a �good faith� effort to hire, to the maximum extent, residents from Miami-Dade County.

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Date:

To: Honorable Chairwoman Audrey M. Edmonson
and Members, Board of County Commissioners

From: Jack Osterholt
Deputy Mayor

Subject: Resolution Approving Targeted Jobs Incentive Fund Tax Refund for Project ESTEEL

STAFF RECOMMENDATION
Recommendation
The Beacon Council, on behalf of Project ESTEEL, has submitted an application for economic development incentives under the County�s Targeted Jobs Incentive Fund (TJIF) Program, Article LXXXVI of the Miami-Dade County Code. It is recommended that the Board of County Commissioners (Board) approve the request for Project ESTEEL to participate in the TJIF Program. It is also recommended that the Board make available $4,892,000.00 in TJIF assistance from Countywide General Fund Revenues.

Scope
Project ESTEEL is a steel micro and rolling mill company seeking to develop a new facility in Miami-Dade County. The proposed development will be located near Southwest 127th Avenue and Saint Nazaire (Folio Number 30-7901-000-120). The company is committing to create 180 new manufacturing full-time equivalent jobs, as defined in Florida Statute Section 288.106, in Commission District 9, which is represented by Commissioner Dennis C. Moss. The jobs will have a positive Countywide impact through indirect employment and an economic multiplier effect.

Fiscal Impact/Funding Source
Based on a total capital investment of $224,000,000.00 as stated in the attached application, Project ESTEEL is projected to generate $7,211,279.00, over a ten-year period, in incremental property tax revenues to the Countywide General Fund. As a result, the business is eligible to receive $4,892,000.00 in TJIF assistance, to be paid over a ten-year period. The business has also applied for a Qualified Target Industry Refund (QTI) incentive award, as a separate agenda item, in the amount of $540,000.00, of which $432,000.00 would be provided by the State and $108,000 is the local match to be provided by the County. If approved, the County will provide a total of $5,000,000.00 in economic incentives to this business. The Beacon Council projects that the County will realize a positive fiscal impact of $2,211,279.00 over the 10-year period of the TJIF award.

The actual disbursement of the TJIF Program award is contingent upon verifying creation of the new jobs and the capital investment appearing on the tax roll. The TJIF Program award may equal up to 2.140 percent of the total real property capital investment and 1.440 percent of the tangible personal property capital investment to remain in compliance with the TJIF Program. Disbursements of the TJIF Program award is capped to not exceed the amount of incremental Countywide General Fund revenues the County generates by the capital investment.

Track Record/Monitor
The TJIF Program specifies that a Board approved TJIF Program project must create at least 10 new jobs, retain those jobs in accordance with the program�s criteria, and make a significant capital investment to receive the incentive. Project ESTEEL is promising to make a capital investment of $224,000,000.00 and create 180 new manufacturing jobs.

Upon the company�s request for incentive payment, staff from the Research and Planning Section for the Department of Regulatory and Economic Resources will verify that it has met the required number of new jobs created, at the required wage rate and in accordance with the TJIF Program agreement. Staff will also confirm that the ad valorem and/or the tangible personal property taxes are sufficient to cover the TJIF Program payment

Background
Project ESTEEL is planning to purchase land to construct a new national headquarters for their steel micro and rolling mill facility consisting of 400,000 square feet (North American Industry Classification System Code #331210 and #331110). The company will use over 98 percent recycled scrap material collected by local scrap metal yards, obtained by discarded automobiles and indoor appliances, to manufacture construction steel rebar, merchant bars and wire rods. The company plans to commence construction during FY 2020. Alternative locations include Utah and Navajo Reservation Tribal Lands New Mexico.

As a condition of the TJIF award, Project ESTEEL agrees that the 180 new workers hired will have an average annual salary of $48,750.00 (excluding benefits) and all employees earn at least the County�s Living Wage Rate as defined in Section 2-8.9 of the Code of Miami-Dade County, as adjusted annually by the Internal Services Department, Small Business Development Division or its successor department.

The anticipated dates for job creation and incentive award disbursements are set forth in the resolution, but are subject to change upon the approval of the County Mayor or the County Mayor�s designee so long as they remain consistent with the TJIF Program.

The attached documents relating to the application of the incentive have been prepared by The Beacon Council and reviewed by the Department of Regulatory and Economic Resources.


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________________
Jack Osterholt
Deputy Mayor