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02-08-11 Workshop MeetingCITY COMMISSION r' "' `~' "' ' ` " CITY OF DELRAY BEACH, FLORIDA WORKSHOP MEETING -TUESDAY, FEBRUARY 8, 2011 Ac~~~r,ene~~~r~ 6:00 P.M. DELRAY BEACH CITY HALL ~ i ,~ :. .,,, . w The City will furnish appropriate auxiliary aids and services where necessary to afford an individual with a disability an equal opportunity to participate in and enjoy the benefits of a service, program, or activity conducted by the City. Contact Doug Smith at 243-7010, 24 hours prior to the program or activity in order for the City to reasonably accommodate your request. Adaptive listening devices are available for meetings in the Commission Chambers. WORKSHOP AGENDA 1. Presentation on the Florida Atlantic University (FAU) Football Program. 2. Presentation regarding the Police and Firefighters' Retirement System 3. Discussion of the Community Redevelopment Agency (CRA) Incentive Programs 4. Discussion of the State Qualified Target Industry (QTI) Tax Credit Program 5. Discussion regarding Resolution No. OS-ll modifying the Financial ReviewBoard 6. Commission Comments n .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... .... Please be advised that if a person decides to appeal any decision made by the City Commission with respect to any matter considered at this meeting, such person will need to ensure that a verbatim record includes the testimony and evidence upon which the appeal is based. The City neither provides nor prepares such record. MEMORANDUM TO: Mayor and City Commissioners FROM: David T. Harden, City Manager DATE: February 3, 2011 SUBJECT: AGENDA ITEM WS.1 -WORKSHOP MEETING OF FEBRUARY 8, 2011 PRESENTATION ON THE FLORIDA ATLANTIC UNIVERSITY (FAU) FOOTBALL PROGRAM ITEM BEFORE COMMISSION The item before the Commission is a presentation on the Florida Atlantic University (FAU) Football Program. BACKGROUND A representative from Florida Atlantic University will provide the Commission with a presentation about their new football stadium at the workshop meeting. MEMORANDUM TO: Mayor and City Commissioners FROM: Douglas E. Smith, Assistant City Manager THROUGH: David T. Harden, City Manager DATE: February 2, 2011 SUBJECT: AGENDA ITEM WS.2 -WORKSHOP MEETING OF FEBRUARY 8, 2011 PRESENTATION REGARDING POLICE AND FIREFIGHTERS' RETIREMENT SYSTEM ITEM BEFORE COMMISSION The item before the Commission is a presentation regarding the Police and Firefighters' Retirement System. BACKGROUND The City requested that the Police and Firefighters' Retirement System actuary (Foster and Foster) attend a Commission workshop meeting to discuss the funding status of the pension plan with the Commission, and they will be represented at the February 8 workshop meeting. The Police and Firefighters' Retirement System performance monitoring firm (The Bogdahn Group) will also be in attendance to discuss the plan's investments. Foster and Foster and The Bogdahn Group previously made a presentation to the Commission at the June 2009 Commission workshop meeting. Brad Heinrichs will be presenting for Foster and Foster and Joe Bogdahn will be presenting for The Bogdahn Group. They have been asked to discuss the following issues with the Commission: Police-Fire Pension Plan Actuary (Foster and Foster): • Explain key terms associated with the Pension Plan Funding (Unfunded Actuarial Accrued Liability, Actuarial Present Value of Accrued Benefits, etc.) • Provide an overview of the funding status and level of City contributions to the Police-Fire Pension Plan • Describe the Police-Fire Pension Plan actuarial assumptions Police-Fire Pension Performance Monitor (The Bogdahn Group): • Describe the investment strategy of the Police-Fire Pension Plan (types of assets the plan is invested in and changes in investment strategy in the last year/two years) Describe the Police-Fire Pension Plan performance since June 2009 MEMORANDUM TO: Mayor and City Commissioners FROM: Douglas E. Smith, Assistant City Manager THROUGH: David T. Harden, City Manager DATE: February 2, 2011 SUBJECT: AGENDA ITEM WS.3 -WORKSHOP MEETING OF FEBRUARY 8, 2011 DISCUSSION OF THE COMMUNITY REDEVELOPMENT AGENCY (CRA) INCENTIVE PROGRAMS ITEM BEFORE COMMISSION This item is before Commission to discuss the Community Redevelopment Agency's (CRA) Economic Incentive Programs. BACKGROUND The CRA Board is requesting that the City Commission consider implementing City-wide Economic Incentive Programs similar to those that the CRA has created. Information on the CRA Job Creation Bonus Program, the CRA Relocation and Development Incentive Program, and the Palm Beach County Job Growth Incentive Grant Program is attached for your review. Staff is seeking direction from the Commission regarding whether or not to move toward implementing Economic Incentive Programs on a City-wide basis. ~~~~ ~,RA DfLRAY B~A[H COMIMUNITY REDEVELOPMENT AGENCY JOB CREATION BONUS PROGRAM (JCB) ~~ ~r. ''~I~ ~~ ~~ ~, ~ `. t~ tt~-. ~ ,f; :~. ::" Ali. i ~ ~ r- ~, ~ ~'... ..~ ~°1~'~. ~~;;,- Delray Beach Community Redevelopment Agency April 23, 2010 Job Creation Bonus (JCB) Incentive Program Introduction New or existing non-retail businesses in the City of Delray Beach Community Redevelopment Agency (CRA) may be eligible for an incentive known as the Job Creation Bonus Program (JCB). This incentive will be instituted to accelerate development in the CRA Redevelopment Area, create jobs that support other activities and to increase the supply of professional office jobs in the City. Targeted projects are Class "A" office buildings whose tenants may include the following industries: ~ Communications/Information Technology ~ Life Science ~ Business /Financial Services ~ Clean Energy ~ Emerging Technologies ~ Aviation /Aerospace ~ Corporate Headquarters The applicant must generate a minimum value of five (5) New or Relocated qualifying jobs whose annual wages equal or exceed 115% of the County's Average Annual Wage. Annual wages exclude commissions and tips. History The 2009 amendment to the CRA Plan identified sections of the Downtown Master Plan which emphasized the importance of the creation of new office space and high-paying jobs in the downtown to complement the service sector jobs. Attracting ayear-round day-time population of business people will support the downtown merchants and downtown restaurants. In addition, well paying jobs in the City of Delray Beach would strengthen the City's tax base, the economic wellbeing of the local residents, and the local residential real estate markets. The CRA Plan recognizes that the downtown's pedestrian friendly nature, unique amenities, proximity to I-95 and Tri-Rail, and the CRA funded shuttle bus make it an attractive location for the development of office buildings. The addition of high-paying jobs to the CRA Districts would complete a sustainable and successful district where both businesses and residents can support a healthy tax base. PROGRAM & FUNDING LIMITS The incentive program is a grant contribution program that is paid out over afive-year period, in equal installments. The amount of the total grant contributed by the CRA to a project is based upon the qualifying jobs generated by the project according to the following criteria: a) 5% of all certifiable annual wages -up fo $10,000 per job or $50,000 per year for five years- for the new qualifying jobs created anywhere in the CRA District; b) 1 0% of all certifiable annual wages -up fo $10,000 per job or $50,000 per year for five years- for new qualifying jobs created in a newly constructed Class-A office building; 2 c) 20% of all certifiable annual wages -up fo $10,000 per job or $50,000 per year for five years- for new qualifying jobs created in: 1) A newly constructed Class-A Office Buildings in the CRA's Redevelopment Sub-Area 3 (West Atlantic Avenue between Swinton Avenue and Interstate 95) 2) A newly constructed or rehabilitated office building with the CBD-RC Zoning District The incentive amounts shall be calculated based on the annual wages that are paid to the qualifying employees at the start of employment. A salary raise given to a qualifying employee after the job starts will not increase the incentive amount. However, a salary reduction that occurs after the job starts will automatically void the grant approval for the entire company. Applications to the JCB program will be accepted for afive-year period commencing on May 1ST, 2010. The Delray Beach CRA will initially budget a maximum of $250,000 per Fiscal Year to the JCB program, starting on October 1ST 2010 for the 20101 1 FY. ELIGIBILITY REQUIREMENTS Applicants must meet all of the following requirements in order to be eligible to receive assistance through the Business Development Assistance Program: The minimum number of new qualifying jobs for grant consideration is five (5). Qualifying Jobs must be full-time equivalent W-2 employees whose wages are reported to the state and federal government. Qualifying Employee wages shall be equal to or exceed 115% of the most recent County's Average Annual Wage published by the Workforce Alliance. At the start of the program, on April 2010, the Average Annual Wage for Palm Beach County is listed as 44 510; therefore, the CRA qualifying annual wage for this program is set at $51,186.50. Applicants shall check with the CRA's Economic Development Director for actual CRA qualifying annual wage at the time of application, as the number may change. Annual wages exclude commissions and tips. Employment positions occupied by the business owner or majority shareholders of the business shall not count toward the qualifying job positions. 2. The qualifying jobs must be maintained for a full calendar year each year before payment is issued. The Applicant must provide the CRA with copies of W-2 forms for each qualifying wage each year, as verification of compliance by the company with the performance standards of the grant agreement. 3. In order to qualify for funding under the JCB Program the qualifying jobs must be either New Jobs or Relocated Jobs, defined as follows: a. A New Job must be full time (minimum of 2,080 hours annually) and shall: be created in the Delray Beach CRA District and add to the City's total job base; add incrementally to the company's payroll; result in a net increase in the number of employees of the Applicant Company; and involve only a new employee working on-site at the company's facility that is located in the Delray Beach CRA District. A New full time or equivalent job may include permanent salaried and leased employees. All jobs must be located in the Delray Beach CRA District building. A New Employee excludes an existing employee on current payroll of a business located in the City of Delray Beach or in a municipality immediately adjacent to the borders of the City of Delray Beach. 3 b. A Relocated Job involves full time (minimum of 2,080 hours annually) positions currently identified on the company's payroll that is being relocated to the Delray Beach CRA District, and shall: add to the City's total job base; and involve only an employee working on-site at the new company's facility that is located in the Delray Beach CRA District. A Relocated Job may include permanent salaried and leased employees. A Relocated Job exclude an existing employee of an Applicant Company located in other areas of the City of Delray Beach, or in a municipality immediately adjacent to the borders of the City of Delray Beach. Employees relocating from un-incorporated areas of Palm Beach County will be evaluated for eligibility on a case by case basis. 4. Grant Approval by CRA Board and the approval of the Grant Agreement by the CRA Board must occur before the jobs are added. A business that enters into a Grant Agreement with the CRA must add the jobs within 6 months of execution of the Grant Agreement by the CRA; if the jobs are not added within the 6 month period, the grant approval will expire. When jobs are being created in a newly constructed office building, jobs shall be added within 24 months of the execution of the Grant Agreement, or the approval will expire. 5. A Business must either own the property or have an executed multi-year lease (5-year minimum) for the location in the eligibility area. b. A Business must be properly licensed and approved by the State, County and the City of Delray Beach. 7. Businesses that do not report employees' wages are not eligible for assistance under the JCB Program. 8. Retail Businesses, Bank Branches, Restaurants, bars, and/or entertainment venues are not eligible for assistance under the JCB Program. 9. The JCB incentive is contingent on funding availability, CRA Board approval, and the execution of a Grant Agreement by the CRA and the Applicant, and is not to be construed as an entitlement or right of a property owner or applicant. Properties in the CRA areas are not eligible for CRA funded programs when such funding conflicts with the goals expressed in the CRA Redevelopment Plan. PROCEDURES FOR IMPLEMENTATION 1. Application Process -All applicants are strongly encouraged to meet with CRA staff in order to determine eligibility before submitting an application. Funding requests will not be considered until all required documentation is submitted to the CRA office. Application packets must include the following documentation: a. Completed/executed application b. Copy of executed multi-year commercial lease or proof of ownership c. Business plan, including executive summary and three-year financial projections of revenues and expenses d. 3-year historical financials (for existing businesses only) e. List of all jobs being created. Include qualifying jobs as well as non-qualifying jobs. Also, include brief job descriptions, salaries and benefits f. Additional items as required in the Application Form 4 2. Approval of Funding Request -Once eligibility is verified and all required documentation has been submitted, CRA staff will present the funding request to the CRA Board of Commissioners for approval. Staff will notify the applicant and landlord of approval, if granted. 3. Grant Agreement -Following approval of the Grant Application by the CRA Board of Commissioners, the CRA and the Applicant shall negotiate and enter into a Grant Agreement which will clarify the terms and conditions of the JCB Grant, subject to the approval of the CRA Board of Commissioners. 4. Grant Payments -Subject to the terms and conditions of the Grant Agreement, the JCB incentive grant shall be paid out over afive-year period, in equal installments. The first of the five payments will commence within 90 days after: a) the jobs have been in place for a full calendar year; and b) payroll statements and any and all forms of job verification documents are provided to the CRA. Subsequent payments will be made each additional year in the same manner. 5. Site Visits -CRA staff will conduct a site visit before grant payments begin in order to verify that the business is in operation. Staff may also conduct unannounced site visits periodically in order to ensure compliance with the terms of the grant agreement. b. Reporting - By accepting the grant, the applicant agrees to comply with any reporting procedures deemed necessary by CRA staff to verify that the required job positions are properly fulfilled and maintained. Reporting may include, but is not limited to, payroll records, work schedules, and reporting forms. 7. Discontinuation of Payment -The receipt of past payments is not a guarantee of future payments. The CRA retains the right to discontinue payments at any time according to its sole and absolute discretion. Program Inquiries Please direct inquiries on the Job Creation Bonus Program, including obtaining a complete application packet, to the following: Francisco Perez-Azua, Economic Development Director, Delray Beach CRA, 20 North Swinton Avenue, Delray Beach, FL 33444, 561-276-8640; perezazua(C~ci.delray-beach.fl.us Please note that the Delray Beach CRA is a public agency. As such, the CRA is governed by Section 119.07, et.seq., Florida Statutes, the "Florida Public Records Law." Any documents provided by the Applicant may be subject to production by the CRA, upon receipt of a public records request, subject to any exemptions provided by Florida Law. 5 PLEASE READ THE FOLLOWING PRIOR TO APPLICATION SUBMITTAL 1) If deemed necessary, the Community Redevelopment Agency (CRA) reserves the right to have the application and its contents evaluated and analyzed by an outside third party including but not limited to: the proposed business plan, partnership/ownership information with equity positions, mortgage on the property, lease agreements, letter of Intent from lending institution and any other documents provided by the applicant. 2) Property to be occupied must be free of all municipal and county liens, judgments or encumbrances of any kind. Upon grant approval, the property must remain free of all municipal and county liens, judgments or encumbrances of any kind under the term of the agreement. 3) The Applicant is prohibited from lobbying any member of the CRA Board or the City commission. Failure to meet this requirement may result in automatic denial of the application. 4) The Applicant will provide annually certified wage statements to the CRA including W-2 forms, employee leasing contracts, subcontractor contracts or other as requested by the CRA. 5) The Applicant may not employ or retain any company or person, other than a bona fide employee working solely for the applicant, to solicit or secure the grant award, and not pay or agree to pay any person, company, corporation, individual or firm, other than a bona fide employee working solely for the applicant, any fee, commission, percentage, gift, or any other consideration contingent upon or resulting from the award or making of the grant award. b) The Applicant agrees that the project shall meet the following criteria in order to qualify as a Class -A Office Building: a) Office space shall have ten feet minimum clear ceiling heights b) Office building must be multi-story, and Floor to Floor heights shall not be less than 13 feet c) There must be a public entrance lobby at the ground floor, and the entrance Lobby at ground floor shall be large enough to accommodate information desk and to allow occupants and guests to congregate. d) Elevator access must be through an interior lobby, and lobbies in all floors shall be air- conditioned e) All common exit corridors and public access ways to upper floor tenant occupied spaces shall be air-conditioned space (no exterior walkways) f) HVAC system shall be free of HCFC's and Halons g) Project must utilize impact resistant glazing and impact resistant entry points h) First floor lobby floor finishes shall be a hard surface such as granite or similar (no thin-set the with grout joints, no carpet) I have read completely and understand the program, including the application guidelines and grant reimbursement process. Date Applicant Signature Date Property Owner Signature 6 APPLICATION FORM JOB CREATION BONUS PROGRAM Date of Application: 1. Applicant Name: 2. Business Name: 3. Is the Applicant tax exempt? 4. New Business Address in the CRA District: 5. Mailing Address: b. Phone: 7. Email: 8. FederallD#: 9. Dates at New Location: 10. Monthly Rent: 1 1. Landlord Name: 12. Landlord SSN/EIN: Fax: 7 13. Landlord's Contact Information: a. Mailing Address: b. Telephon c. Landlord's Email: 14. Was this business previously located at another site: ^ Yes ^ No Dates: 15. If relocating, provide current Address: 1 b. Current total number of employees: 17. Proposed total number of emplo 18. For Existing Business: a. Does the addition of employees require the business to expand into additional office space? b. If so, is new construction required? c. When is it anticipated that construction could begin or move-in will occur, assuming the project receives a grant from this program? (A detailed project schedule must accompany the application) 8 19. Include with this application: a. Description of the business; b. Description of proposed improvement to the property, if any; c. Office Floor Plan d. Site Plan of building e. Preliminary project and move-in schedule; f. Resume of business owner(s); g. List of all jobs and corresponding anticipated salaries; separate the qualifying jobs from the non-qualifying jobs; provide copies of employee management contracts, and other contract types of jobs located within the space of the business; h. Business and financial Information: i. Business Plan of applicant or corporate brochure ii. Mortgage information on property (If applicable) iii. Copy of executed Lease agreements with landlord (if applicable) iv. Itemized cost of tenant improvements, identifying costs covered by tenant and costs covered by landlord. v. Letter of Intent from lending institution, if financing required; Provide a minimum of 3 copies of the completed application and required documentation. The JCB Program benefits are contingent on funding availability, approval of the Grant Application by the CRA Board of Commissioners, and the approval and execution of the Grant Agreement by the CRA Board of Commissioners, and are not to be construed as an entitlement or right of a property owner or applicant. Properties in the CRA areas are not eligible for City/CRA funded programs when such funding conflicts with the goals expressed in the CRA Redevelopment Plan. The CRA may obtain an analysis by a third party or outside firm hired by the CRA to evaluate the application. Signature of Applicant Date Signature of Property Owner Date Please note that the Delray Beach CRA is a public agency. As such, the CRA is governed by Section 119.07, et.seq., Florida Statutes, the "Florida Public Records Law." Any documents provided by the Applicant may be subject to production by the CRA, upon receipt of a public records request, subject to any exemptions provided by Florida Law. 9 i BRA DELRAY BEACH COMMUNITY" REDEUELOPMEN'T AGENCY RELOCATION AND DEVELOPMENT INCENTIVE PROGRAM (RDI) ri ~~~~ ~:~> I I~ +~ ~" d ~.>a..~`; ~ ~~ .. r :, io ~, ~ ~ ~~ V _, ~ i>, iii P '" ~' ~r ~ ~ 4-;; b. ~ ~ i' ~ - ~ ~ ~ ~~ , Delray Beach Community Redevelopment Agency April 23, 2010 Relocation and Development Incentive Program ~nfrn~~~~finn Non-retail businesses relocating to the City of Delray Beach Community Redevelopment Area (CRA) may be eligible for an incentive known as the Relocation and Development Incentive Program (RDI). This incentive's intent is to attract businesses that bring a minimum of twenty-five (25) jobs whose wages are equal to at least 1 1 5% of the County's Average Wage ("Qualifying Jobs"). Targeted industries include the following: ~ Communication/Information Technology ~ Life Science ~ Business /Financial Services ~ Clean Energy ~ Emerging Technologies ~ Aviation /Aerospace ~ Corporate Headquarters Generally the program's objective is to attract new businesses with high-paying jobs into Delray Beach's CRA District. Other objectives include the following: ~ Assist property owners who need to attract an important tenant to its building; ~ Encourage the Development of new office buildings ~ Help attract companies to Delray Beach that are receiving State and/or County incentives, and are sponsored by the Business Development Board of Palm Beach County; ~ Assist property owners in obtaining the highest and best use of vacant and semi-occupied properties; History The 2009 amendment to the CRA Plan identified sections of the Downtown Master Plan which emphasized the importance of the creation of new office space and high-paying jobs in the downtown to compliment the service sector jobs. Attracting ayear-round day-time population of business people will support the downtown merchants and downtown restaurants. In addition, well paying jobs in the City of Delray Beach would strengthen the economic wellbeing of the local residents, and the local residential real estate markets. The CRA Plan recognizes that the downtown's pedestrian friendly nature, unique amenities, proximity to I-95 and Tri-Rail, and the CRA funded shuttle bus make it an attractive location for the development of office buildings, which would complete a sustainable and successful district where both businesses and residents can support a healthy tax base. Program The incentive program is a grant contribution program that is paid out within 90 days after a business has relocated or moved to the CRA District and the qualifying jobs are in place. The business must hold a current City of Delray Beach business license after occupancy and must have received a certificate of occupancy from the City, if applicable. The amount of grant contributed by the CRA to a business is based upon the company's relocation costs. The CRA will analyze the 2 cost estimate provided by the applicant and would provide a grant equal to twenty percent (20%) of the costs, up to $50,000. The applicant must provide paid receipts and invoices for the costs of the relocation. Any RDI incentive that is approved by the CRA Board will be paid after construction of the improvements are complete; after a certificate of occupancy (or certificate of completion) is received from the City of Delray Beach; and after the qualifying jobs are in place. FUNDING LIMITS & ELIGIBILITY REQUIREMENTS Applications to the RDI program will be accepted for afive-year period starting on May 1ST, 2010. The CRA will budget a maximum of $250,000 per year for RDI Grants. The maximum funding for each business is 20% of eligible relocation expenses up to $50,000. The use of the CRA Grant is limited to several categories as described below. The total funds allocated to the RDI program will be identified in the CRA annual budget, which is entirely contingent on approval by the CRA Board. CRA payments to the Applicant will be made after invoices and proof of payment has been presented by the applicant. Applicants must meet all of the following requirements in order to be eligible to receive assistance through the Relocation and Development Incentive Program: 1. Business must be relocating to the Delray Beach CRA District. A CRA District Map may be downloaded from the Delray Beach CRA website, www.delraycra.org 2. Companies relocating from within the City of Delray Beach or from cities immediately adjacent to the City of Delray Beach do not qualify for the RDI Program. Companies relocating from unincorporated areas of Palm Beach County will be evaluated on a case by case basis. 3. Grant Approval by CRA Board and approval of the Grant Agreement by the CRA Board must occur before company relocates. A business that enters into a Grant Agreement with the CRA must relocate within 6 months of receiving the approval. If the business does not relocate within that time frame, the grant approval will expire. When jobs are being created in a newly constructed office building, jobs shall be added within 24 months of the execution of the Grant Agreement, or the approval will expire. 4. Business must either own the building or must have an executed multi-year lease (5-year minimum) for the new location in the eligibility area. 5. Business must employ a minimum of twenty-five (25) qualifying full-time equivalent W-2 employees whose wages are reported to the state and federal government. Qualifying Employee wages shall be equal to or exceed 115% of the most recent County's Average Annual Wage published by the Workforce Alliance. At the start of the program, on April 2010, the Average Annual Wage for Palm Beach County is listed as 44 510; therefore, the CRA qualifying annual wage for this program is set at $51,186.50. Applicants shall check with the CRA's Economic Development Director for actual CRA qualifying annual wage at the time of application, as the number may change. Annual wages exclude commissions and tips. Employment positions occupied by the business owner or majority shareholders of the business shall not count toward the qualifying job positions. 3 b. Business must be properly licensed and approved by the State, County and the City of Delray Beach. 7. Businesses that do not report employees' wages are not eligible for assistance under the RDI Program. 8. Retail Businesses, Bank Branches, Restaurants, bars, and/or entertainment venues are not eligible for assistance under the RDI Program. 9. The RDI incentive is contingent on funding availability, CRA Board approval, and the execution of the Grant Agreement by the CRA and the Applicant, and is not to be construed as an entitlement or right of a property owner or applicant. Properties in the CRA areas are not eligible for CRA funded programs when such funding conflicts with the goals expressed in the CRA Redevelopment Plan. Eligible Reimbursable Costs The following are costs that qualify for the grant: ~ Moving Expenses paid to a licensed moving company ~ Signage ~ Interior Tenant Improvements ~ Fixed Equipment Costs subject to CRA Approval ~ Other Costs approved in advance by the CRA PROCEDURES FOR IMPLEMENTATION 1. Application Process -All applicants are strongly encouraged to meet with CRA staff in order to determine eligibility before submitting an application. Funding requests will not be considered until all required documentation is submitted to the CRA office. Application packets must include the following documentation: a. Completed/executed application b. Copy of executed multi-year commercial lease or proof of ownership c. Business plan, including executive summary and three-year financial projections of revenues and expenses d. 3-year historical financials (as applicable) e. List of all jobs to be relocated to or created in the Delray Beach CRA. Include qualifying jobs as well as non-qualifying jobs. Also, include brief job descriptions, salaries and benefits f. Schedule of proposed Eligible Reimbursable Costs g. Additional items as required in the Application Form 2. Approval of Funding Request -Once eligibility is verified and all required documentation has been submitted, CRA staff will present the funding request to the CRA Board of Commissioners for approval. Staff will notify the applicant and landlord of approval, if granted. 3. Grant Agreement -Following approval of the Grant Application by the CRA Board of Commissioners, the CRA and the Applicant shall negotiate and enter into a Grant Agreement 4 which will clarify the terms and conditions of the RDI Grant, subject to the approval of the CRA Board of Commissioners. 4. Grant Payments - Subject to the terms and conditions of the Grant Agreement, reimbursement will be made within ninety days from the CRA receiving the following: a. Invoices and proof of payment for Eligible Reimbursable Costs b. Certificate of Occupancy or Certificate of Completion (if construction was involved) c. Verification that jobs are in place including payroll records. 5. Site Visits -CRA staff will conduct a site visit before grant payment is made in order to verify that the business is in operation. Staff may also conduct unannounced site visits periodically in order to ensure compliance with the terms of the grant agreement. b. Reporting - By accepting the grant, the applicant agrees to comply with any reporting procedures deemed necessary by CRA staff to verify that the required job positions are properly fulfilled and maintained. Reporting may include, but is not limited to, payroll records, work schedules, and reporting forms. Program Inquiries Please direct inquiries on the Relocation and Development Incentive Program, including obtaining a complete application packet, to the following: Francisco Perez-Azua, Economic Development Director, Delray Beach CRA, 20 North Swinton Avenue, Delray Beach, FL 33444, 561-276- 8640; perezazua(a7ci.delray-beach.fl.us. For website information go to www.businessdelray.org. Please note that the Delray Beach CRA is a public agency. As such, the CRA is governed by Section 119.07, et.seq., Florida Statutes, the "Florida Public Records Law." Any documents provided by the Applicant may be subject to production by the CRA, upon receipt of a public records request, subject to any exemptions provided by Florida Law. 5 PLEASE READ THE FOLLOWING PRIOR TO APPLICATION SUBMITTAL a) Prior to application submittal, a preliminary review of proposed tenant renovations to a property must be completed by the CRA and City Planning Department. b) The applicant understands that the maximum incentive is $50,000 and that twenty-five (25) qualifying jobs must be created that equal 1 1 5% of the County Average wage. The applicant must have a signed lease for a minimum of five (5) years. c) After approval process, the CRA will provide the applicant with a Grant Agreement for signature. NO CONSTRUCTION shall begin until the Grant Agreement is approved by the CRA Board of Commissioners, and signed by all parties. Improvements completed prior to approval by the CRA Board are not eligible for reimbursement. d) If deemed necessary, the Community Redevelopment Agency (CRA) reserves the right to have the application and its contents evaluated and analyzed by an outside third party, including but not limited to: the proposed business plan, partnership ownership information with equity positions, mortgage on the property, lease agreements, letter of Intent from lending institution and any other documents provided by the applicant. e) The Applicant is prohibited from lobbying any member of the CRA Board or the City commission. Failure to meet this requirement may result in automatic denial of the application. f) Property to be improved must be free of all municipal and county liens, judgments or encumbrances of any kind. Upon grant approval, said property must remain free of all municipal and county liens, judgments or encumbrances of any kind under the term of the agreement. I have read completely and understand the program, including the application guidelines and grant reimbursement process. Applicant Signature Printed Name Date Date 6 APPLICATION FORM RELOCATION and DEVELOPMENT INCENTIVE PROGRAM Date of Application: 1. Applicant Name: 2. Business Name: 3. Is the Applicant tax exempt? 4. New Business Address in the CRA District: 5. Mailing Address: b. Phone: 7. Email: 8. FederallD#: 9. Dates at New Location: 10. Monthly Rent: 1 1. Landlord Name: 12. Landlord SSN/EIN: 13. Landlord's Contact Information: a. Mailing Address: Fax: 7 b. Telephone c. Landlord's Email: 14. Was this business previously located at another site: ^ Yes ^ No Dates: 15. Business previous Address: 1 b. If tenant improvement or construction project is required, please provide project information: a. Brief Description of project: b. Property Control Number: c. Zoning District: d. Existing Use of Property: e. Project size: sq. ft. f. Total project cost: 100% 8 Construction cost: Other costs: 17. Proposed Incentive amount and use(s): 1 8. Incentive Information: Will the business be located in the West Atlantic Avenue Target Area? Will the business likely Increase Property Values? Is there an increase in square footage of leasable space to the property? Will the business help attract additional tenants to the area? Explain: Will the improvements to the property have a substantial visual impact? Explain: Will the business Increase the City's employment base? Does the business have a successful track record? How many years? Is the business a targeted Industry, and if so, which one? 19. Term of Lease: 9 20. How many total employees will be working upon occupancy? How many new jobs will be created because of the new space? Are any jobs being lost due to downsizing? 21. If Construction is involved, when is it anticipated that construction could begin, assuming the project receives assistance from this program? (A project schedule must accompany the application) 22. Include with this application: a. Description of the business; b. Description of proposed improvement to the property, if any; c. Office Floor Plan d. Site Plan of building e. Preliminary project and move-in schedule; f. Resume of business owner(s); g. List of all jobs and corresponding anticipated salaries; separate the qualifying jobs from the non-qualifying jobs; provide copies of employee management contracts, and other contract types of jobs located within the space of the business; h. Business and financial Information: i. Business Plan of applicant or corporate brochure ii. Mortgage information on property (If applicable) iii. Copy of executed Lease agreements with landlord (if applicable) iv. Itemized cost of tenant improvements, identifying costs covered by tenant and costs covered by landlord. v. Letter of Intent from lending institution, if financing required; Provide a minimum of 3 copies of the completed application and required documentation. The Relocation and Development Incentive Program benefits are contingent on funding availability, approval by the CRA Board of the Grant Application, and the approval and execution of the Grant Agreement by the CRA Board of Commissioners, and are not to be construed as an entitlement or right of a property owner or applicant. Properties in the CRA areas are not eligible for City/CRA funded programs when such funding conflicts with the goals 10 expressed in the CRA Redevelopment Plan. The CRA may obtain an analysis by a third party or outside firm hired by the CRA to evaluate the application. I, the undersigned, being a principal of the business applying for a Grant under the Relocation and Development Incentive (RDI) Program, certify that the business represented herein is a new business to the Delray Beach CRA District, and has never been in business in the City of Delray Beach before. I understand that A CRA staff person will visit my business on a monthly basis or as otherwise deemed appropriate to verify that staffing and operating requirements are being adhered to. I understand that this application is not a guarantee of assistance. I understand that if this application is incomplete, it will not be processed. Applicant's Signature Date Printed Name Title Please note that the Delray Beach CRA is a public agency. As such, the CRA is governed by Section 119.07, et.seq., Florida Statutes, the "Florida Public Records Law." Any documents provided by the Applicant may be subject to production by the CRA, upon receipt of a public records request, subject to any exemptions provided by Florida Law. 11 ~~~ACH.cOG a~~~~~,~I . `~~~ IMP .10B GROWTH INCENTIVE GRANT PROGRAM PALM BEACH COUNTY, FLORIDA CRITERIA & PROCESS I. FUND AMOUNT: The total funds allocated to the Job Growth Incentive (JGI) Grant Program will be identified in the economic development program budget for the fiscal year, which is entirely contingent on approval by the Board of County Commissioners (BCC). II. OVERALL GOAL: Support the economic stimulus of Palm Beach County to achieve an appreciable long term expansion of the local economy, enhance the prospects for business growth, and provide additional full time employment opportunities (preferably skilled and good paying jobs) for the residents of Palm Beach County. ELIGIBILITY CRITERIA III. APPLICATION SELECTION CRITERIA: Incentive Intent of Program: Relocation of commercial, industrial, office, and agricultural-related entities to Palm Beach County; or expansion of same, provided the JGI applicant can adequately demonstrate that such relocation or expansion would otherwise take place outside of Palm Beach County; retail businesses are ineligible; and 2. Job &Salarv Commitments: Relocation or expansion project will be required to: a) create and/or relocate 50 or more new full time non-retail jobs in Palm Beach County; and b) pay an average annual salary at or above the current average annual salary for all privately owned businesses in Palm Beach County or an industry average wage per annum. Other Important Considerations: It is highly desirable that the proposed project will a) involve a targeted cluster industry (identified on Page 9); b) locate/expand in areas of Palm Beach County designated for economic development/ redevelopment; c) diversify the local economy; and d) increase the tax base of Palm Beach County; and e) involve a major investment, such as construction or renovation of a facility. JGI Grant Average Annual Salarv Identification: The applicant will identify and commit to providing an average annual salary for the new jobs which will be at or above the current average annual salary in Palm Beach County (average of all local privately-owned businesses) or an industry average wage per annum. An important consideration to Palm Beach County is whether an applicant will commit to paying a high or very high average annual salary for the newly created/relocated jobs which exceeds or preferably far exceeds the County's average annual wage (pertains to private sector only). A business proposing to pay a high or very high salary for the new jobs might possibly increase the prospects that County Administration will support increasing the amount of the award per job and thereby the total grant amount. The applicant will be required in the JGI application to identify two average annual salaries for the new jobs: a) All New Jobs. Identify the average annualized salary for all new jobs. Include all exempt and non-exempt employees and all officers and senior corporate executives that will represent the total number of new full time jobs to be created/relocated in Palm Beach County. b) Low and Mid Echelon New Jobs Only. Identify the average salary per annum of the new exempt and non-exempt employees only; exclude from these calculations the average annual salary of the officers and senior corporate executives which are included in (a) above. The salary figure (excluding benefits) for (a) above will be the salary commitment in the agreement and is derived according to (c) below: c) Determining Average Annual Salary of New Jobs: The salary commitment that the applicant identifies in the application will be based on the wage criteria of the Covered Employment and Wages Program, referred to as the ES-202 Program (* see below). Include total pay for work, earned wages and remuneration on an annual basis: Direct actual salaries, tips, bonuses, commissions, overtime, stock options, drawing accounts (against future earnings), paid leave, sick pay, vacation pay, and other payments such as cash value of meals and lodging, and employer contributions to deferred compensation plans including 401(k) plans. Exclude benefits: Employer contributions to Old-age, Survivors', and Disability Insurance (OASDI), health, life and unemployment insurance, worker's compensation, private pension and welfare funds. * The ES-202 Program is a cooperative program involving the Bureau of Labor Statistics (BLS) of the U.S. Department of Labor and at the state level the State Employment Security Agencies (SESAs). In Florida, the ES-202 Program is under the jurisdiction of the Agency for Workforce Innovation (AWI). U.S. Bureau of Labor Statistics: Fla. Agency for Workforce Innovation: Fla. Labor Market Statistics: www. bls. gov/cew/cewover. htm hp one: (202) 691-6567 www.floridaiobs.org hp one: (850) 921-6966 www.labormarketinfo.com 4. New Job Performance, Maintenance & Verification: a) The required number of jobs will be provided and filled (i.e., any position or job classification identified on the payroll that is actually filled by a new employee) within an agreed to number of months of the commencement date of the grant agreement. b) The company and Palm Beach County will negotiate a job creation/relocation timeframe, which generally can range from 12 months to 36 months (e.g., 17 months, 22 months, 34 months, etc.). 2 c) Section VII below elaborates on the requirements for the audit that the independent Certified Public Accountant (CPA) must adhere to in order for the performance audit that is completed by the CPA to be deemed acceptable to Palm Beach County; and d) The new jobs will be maintained at minimum for an additional 24 months, commencing upon the company providing Palm Beach County with an independent audit providing verification of compliance by the company with the performance standards of the grant agreement. Exceptions to Criteria: The Economic Development Office (EDO) may apply criteria to a particular application that differs from the standard criteria set forth above in order to insure compliance with the goals and mandates of the JGI Grant Program. County Administration must initially review and support any exceptions to the program criteria. This is in order for EDO at a later date to present a JGI grant agreement to the BCC which recommends that the Board: a) waive a standard criteria of the JGI Program (note: waiver is rarely considered or justified); and b) approve the grant agreement. IV. GRANT LIMITS: Base Award Per Job: The base award per application will be from $500 to $2,000 per job created. The EDO may recommend deviations from this base award amount as circumstances warrant. EDO submits its recommendation to County Administration for a final decision on the amount of the award per job. The AWARD PER JOB GUIDELINES are identified in EXHIBIT "B" on Page 12. 2. Maximum Grant Award: The maximum award per application is $500,000, with the potential for a larger award upon recommendation by the EDO. The final determination on the recommendation of the total award amount can only be made by County Administration to whom EDO reports. Minimum Grant Award: The minimum award per application is $25,000. V. ELIGIBLE FUND USES: Grant funds will be disbursed as reimbursement for expenses related to the relocation/expansion project. The categories of ELIGIBLE REIMBURSABLES are identified below and in EXHIBIT "A" on Pages 10 and 11. a) Payment of impact fees and special assessments b) Land improvement costs c) Environmental compliance d) Leasehold improvements e) Construction and renovation costs c) Employee hiring and training g) Relocating company assets h) Day care (for employees children during work hours) i) Local match for state tax refund program Irrespective of the documented reimbursable expenses submitted to OFMB, disbursements will be limited to the verified per-job grant award times the number of jobs created as documented in the independent accountant's performance report. VI. DEFINITIONS: New Job: A full time or equivalent job (minimum of 2,080 hours annually) that is created in or relocated to Palm Beach County which adds to the County's total job base, adds incrementally to the company's payroll, results in a net increase in the number of employees, and involves only a new employee working on-site at the 3 company's facility that is located in Palm Beach County. A full time or equivalent job may include permanent salaried, part-time, leased employees, and contractors and subcontractors. Excludes an existing employee on current payroll of a business located in a county adjacent to the borders of this County or in the InternetCoast (counties of Dade, Broward and Palm Beach) who is to be transferred to a Palm Beach County facility. Relocating Employee: A full time or equivalent employee currently identified on the company's payroll that is being relocated to Palm Beach County. Excludes an existing employee of a JGI applicant located in a county adjacent to the borders of this County or in the InternetCoast (counties of Dade, Broward and Palm Beach) who is to be transferred to a Palm Beach County facility. APPLICATION PROCESS & REQUIREMENTS VII. PROGRAM PROCESS: JGI Fund: BCC establishes funding for JGI Grant Program through the annual budget process. 2. Business Development Board Assistance: The company is encouraged to request assistance from the Business Development Board (BDB) of Palm Beach County, Inc. to help determine whether the company will qualify under the JGI Program's eligibility criteria. a) The BDB will assist the company to completely and satisfactorily fill out the application and submit it (enclosing all required documentation) to County Administration for processing by EDO. b) The application will identify the total number of new full time jobs and the average annual salary (excluding benefits) of the new jobs. c) For an expansion project of a business currently located in Palm Beach County, the BDB will ensure that the applicant provides a certified or notarized letter by an officer of the company verifying the current number of full time employees on its payroll in Palm Beach County at the time of application. d) The BDB's involvement in the application process provides Palm Beach County with additional input on an application which is helpful recognizing that there is competition among applicants for funding assistance. JGI funds may be limited. e) An applicant choosing not to seek BDB's assistance and instead filing the application directly with the County may do so but the application would lack the BDB input/recommendation desired by the County. Application Submittal with Audited Financials: a) FINANCIAL AUDIT: The Business or BDB on behalf of the company submits the JGI application to County Administration for processing by EDO with independent CPA audited financial statements for the most recent three (3) years included. Exception: Business has existed less than three (3) years. b) In instances where independently audited financial statements for most recent three (3), two (2) or one (1) years are submitted by a business for its subsidiary, with the subsidiary business identified as the JGI applicant on the application form, the parent or holding company of the subsidiary applicant must therefore agree to be a party to and co-signee of a JGI grant agreement along with the subsidiary applicant signing (and thereby obligated per) the agreement. 4 c) Tax returns for the most recent three (3) years may be submitted in lieu of independent audited statements for most recent three (3) years for a business which is not required by federal, state or financial institution regulatory requirements or policies to have audited statements prepared for its business and operations. The applicant must however explain in writing when the JGI application is submitted to County Administration which federal, state or financial institution regulatory requirements or policies do not require the company to have audited statements prepared. The applicant must identify whether it is a publicly held company or a privately held company. d) In the event the date of the most recent audited statements indicate that more than six (6) months will have elapsed since their preparation and the anticipated date of the completion /submittal of the JGI application to EDO, the applicant may be required to provide to the County interim financial statements that may be prepared internally. e) The audit at the time of application, which must be performed by an independent CPA and provided on the CPA's letterhead, must be an audit for which the auditor did "examine" the applicant company's financial statements and expresses a written "opinion" on the financial statements; (i.e., "in our opinion"). f) The examination must be conducted in accordance with standards established by the American Institute of Certified Public Accountants. g) The applicant's annual report to stockholders, including an independent accountant's report is acceptable, provided audited financial data for three (3) years is included. h) A report by an independent CPA that is a "review or agreed-upon procedures report" on the financial statements is unacceptable to Palm Beach County, and will result in the following: i) Applicant is informed by staff that the application cannot be processed unless the company provides Palm Beach County with appropriate audited documentation as specified above. ii) Upon receipt of the appropriate audited documentation, processing can continue. iii) Within a reasonable and mutually agreed to period of time, if the applicant either cannot or does not provide County staff with the appropriate audited documentation, processing of the application will cease. Application will be considered null and void. i) EDO reviews and screens application. EDO may, if it is deemed necessary for a complete review, forward an application to an appropriate designee having expertise in a given industry. j) All financial statements and application are forwarded to OFMB for review and comment. k) Whenever the financials or consolidated financials of a parent or holding company are submitted with the application on behalf of and in lieu of financials of the actual applicant, which is a subsidiary of the parent/holding company, the parent/holding company must be party (i.e., additional signee) to any future agreement. Under these circumstances, the name of the business entity for whom the financials pertain and the name of the applicant business will both appear in the grant agreement. 4. Review Completion & Application Disposition: a) After EDO's initial screening of the application, and OFMB's review of the applicant's financials, EDO and County Administration will meet to review the application and OFMB's comments in order to determine whether County Administration will issue a Letter 5 of Intent recommending that the BCC approve a JGI grant award for the applicant or release a Letter of Denial to the company. b) In the event of a Letter of Denial, County Administration will give the company additional time to provide any pertinent documentation and/or clarification that the company believes might alter County Administration's disposition to not support the application and to not recommend a grant award. Notice of Intent: a) Following County Administration's issuance of a written notice of intent (with negotiated grant agreement enclosed) to recommend approval of a JGI application, the company has 60 days to finalize (execute and return) the agreement for processing for BCC action. b) Failure to complete the agreement within this 60 day period will nullify the recommendation. However, the company may request a time extension on executing the agreement. The request should be submitted in writing prior to expiration of the 60 day period. c) County Administration will review the request and determine whether to grant a time extension for the company to execute the agreement and return same to the EDO. d) A notice of intent issued without a grant agreement enclosed, which normally occurs due to timing considerations, will require that the company and EDO immediately begin negotiating an agreement. Grant Submittal to BCC: a) Upon receipt of an executed grant agreement from the company, EDO prepares an agenda item on the JGI grant agreement for presentation to the BCC for approval and execution. b) BCC, at its sole discretion, may accept, reject or modify any grant agreement. Grant Performance Compliance & Reimbursement Procedure: a) Upon the company satisfying the new job and salary commitments of the JGI grant, the company may seek reimbursement for eligible costs. b) Pursuant to the agreement, the company submits the reimbursement request to the EDO, which must be accompanied by the CPA's report on the jobs created/relocated, the average annualized salary of the new jobs and the invoices, as specified in (c) and (d) below: c) INVOICE DOCUMENTATION: OFMB reviews invoices and supporting documentation from a grantee, checks the invoices for compliance with grant agreement and JGI Grant Program. i) The grant funds will be provided only for reimbursement of expenses set forth in the list of Eligible Reimbursables, which will be identified in the JGI agreement. ii) Reimbursable expenses must not occur and thus must not be dated prior to the commencement date of the JGI agreement, and must be directly related to the applicant's relocation/expansion project in Palm Beach County. iii) All requests for payment of eligible "out-of-pocket" expenses for reimbursement, not otherwise reimbursable by the company's insurance provider, must include copies of paid receipts, canceled invoices, or other documentation acceptable to the Palm Beach County Office of Financial Management & Budget (OFMB) and 6 the Finance Department of the Clerk of the Circuit Court. iv) All reimbursement requests must adequately describe the expenses and establish that the expense was actually incurred by the company in association with the applicant's relocated or expanded business operations in Palm Beach County. v) Refer to #10 below in the event any grant funds will be reserved for a local match requirement. d) PERFORMANCE AUDIT: Reimbursement requests must be submitted to EDO and accompanied by documentation satisfactory to Palm Beach County, including an examination by an independent CPA as set forth below. i) The JGI agreement will require that there be an independent examination by a CPA to verify the accuracy of the number of the new full time jobs which were created and/or relocated pursuant to the JGI agreement, and the average annual salary (excluding benefits) of those new jobs. ii) This audit must be performed by an independent CPA, must be provided on the CPA's letterhead, and must be an audit for which the auditor did "examine" the grantee's representations for the facility located in Palm Beach County. The CPA must express a written "opinion" on the attached schedule(s) of new jobs created/relocated and the average annualized salary for the jobs created/relocated. iii) The examination must be conducted in accordance with standards established by the American Institute of Certified Public Accountants and include examining evidence supporting the company's schedules of new jobs and average annualized salary of the new jobs. iv) An audit by an independent CPA that is a "review or agreed-upon procedures report" concerning the company's schedules is unacceptable to Palm Beach County. v) Applicant is informed by staff that the review of the audit and reimbursement request cannot move forward until the company provides Palm Beach County with the appropriate audited documentation specified above. vi) Upon receipt of the appropriate audited documentation, processing can continue. vii) Within a reasonable and mutually agreed to period of time, if the grantee either cannot or does not provide County staff with the appropriate audited documentation, processing of the audit and reimbursement request will cease. Pursuant to the terms of the JGI grant agreement, the agreement will automatically terminate if the grantee is unable to comply with the audit and timeframe provisions of the grant agreement. viii) Thus, OFMB will not forward invoices to Clerk of the BCC (Finance Department) for payment until grantee meets the agreed upon performance measures as verified by an independent audit. Clerk's Office Payment: OFMB submits approved invoices to Clerk for pre-audit and payment. Clerk will reserve and not release any funds from the grant directly to the company that may be required as the local match under the State of Florida Qualified Industry Tax Refund Program, as explained below. Eligible Costs Dispute & Resolution. If there is any dispute over the eligibility of costs submitted for reimbursement, such dispute shall be submitted to the EDO for final resolution. 10. Qualified Target Industry Tax Refund Program: In the event the company enters into an agreement with the State of Florida to receive State tax refunds pursuant to the State of Florida Qualified Target Industry (QTI) Tax Refund Program as set forth in Chapter 288, Florida Statutes, as may be amended, the following shall apply: a) Maximum Match Amount. Any grant funds provided for under a JGI agreement may be used by Palm Beach County as reimbursement toward the required QTI local match of up 7 to 20%, with the total match amount of the County not to exceed the total JGI grant amount. b) Match Payment Procedure. The grant funds paid by the County on behalf of the company as part of the required QTI local match, and as provided for under an agreement, shall be paid directly by the County to the State of Florida Economic Development Trust Fund in accordance with the QTI Program. c) QTI Commitment Nullified. If the company does not satisfy all of its QTI contractual obligations with the State of Florida, which results in the termination of the QTI agreement, but complies fully with its grant commitments with the County, the company shall be entitled to seek reimbursement of expenditures of funds pursuant to its JGI grant. However, any funds that may have been provided to the State of Florida toward the QTI match shall be subtracted from the total grant amount. 11. Grant Maintenance Compliance: a) MAINTENANCE REPORT: The JGI agreement will require the submittal of an agreed- upon procedures report to the EDO to verify that the number of new full time jobs which were created and/or relocated (for which the company was reimbursed based on the specified award per job) have been maintained for an additional 24 months, and at the average annual salary identified in the performance audit. b) The 24 month job maintenance period will immediately commence upon the company having been reimbursed by the Clerk's Office following the Clerk's determination as to the extent of the grantee's compliance with the JGI agreement. c) The agreed-upon procedures report must be performed by an independent CPA, provided on the CPA's letterhead, involve the auditor's testing of the grantee's payroll records and representations on the positions maintained at the required wage level for the facility located in Palm Beach County pursuant to the JGI contractual obligations, and identify the procedures performed by the CPA in accordance with standards established by the American Institute of Certified Public Accountants. Procedures will include testing of not less than eight (8) payrolls to determine the number of maintained employees in Palm Beach County and the average annual salary during the maintenance period. The report must be satisfactory to the County in its sole discretion. d) The company will be informed by County staff whenever the review of the job maintenance report cannot move forward until the company provides Palm Beach County with additional, appropriate documentation, as specified above. e) Upon receipt of the appropriate documentation, processing of the report can continue. f) Within a reasonable and mutually agreed to period of time, if the grantee either cannot or does not provide County staff with the necessary and appropriate documentation, processing of the report will cease. Pursuant to the terms of the JGI agreement, the agreement will automatically terminate if the grantee is unable to comply with the job maintenance provisions of the agreement. g) Under the circumstances of (f) above and according to the terms of the JGI agreement, the County will seek a refund from the grantee of the funds provided to the grantee based on the performance audit and the amount of the award per job. Calculation: total refund amount is number of jobs not maintained times actual amount of award per job. h) EDO will inform the grantee, the pertinent County departments and the BDB as to the final outcome and disposition of the maintenance report following staff completing its review of the report. 12. Business Survey: EDO will periodically distribute a Business Survey to the recipients of a JGI grant award to determine the ongoing economic impact of the relocation or expansion. The results of the survey will be forwarded to County Administration. VIII. PROGRAM INQUIRES: Please direct inquiries on the Job Growth Incentive Grant Program, including obtaining a complete application packet, to either of the following agencies. In addition, questions concerning the State of Florida Qualified Target Industry (QTI) Tax Refund Program, and the possible use of the County's JGI grant funds toward the required local match under the State's QTI Program, may be handled by either agency: Palm Beach County Economic Development Office P.O. Box 1989, West Palm Beach, FL 33402-1989 301 N. Olive Avenue, West Palm Beach, FL 33401 - 10th Floor (561) 355-3624 FAX (561) 355-6017 www.pbcgov.com Business Development Board of Palm Beach County, Inc. 301 Evernia Street, West Palm Beach, FL 33401 (561) 835-1008 FAX (561) 835-1160 www.bdb.org NOTE: The Job Growth Incentive Grant Program was approved by the Board of County Commissioners on November 16, 1993 (R93-1519), and subsequently amended (R94-45, R94-198, R95-1104D, R96- 302D, and R-97-1267D). In addition to satisfying the above identified requirements of the JGI Program Criteria and Process, the applicant is advised: Not to employ or retain any company or person, other than a bona fide employee working solely for the applicant, to solicit or secure the grant award, and not pay or agree to pay any person, company, corporation, individual or firm, other than a bona fide employee working solely for the applicant, any fee, commission, percentage, gift, or any other consideration contingent upon or resulting from the award or making of the grant award. Taraeted Cluster Industrv (industries identified are subject to chanae: BCC may add/delete an industr aerospace /engineering marine agribusiness /equine medical /pharmaceutical /health care business /financial services science /technology communications /information technology tourism /recreation /entertainment film /television (*) (*) PBC Film Commission, Inc. assists film /television businesses with the Film & TV Incentive Grant Program. Acronyms BCC Board of County Commissioners BDB Business Development Board of Palm Beach County, Inc. CPA Certified Public Accountant EDO Palm Beach County Economic Development Office (County Administration) ES Employment Statistics JGI Job Growth Incentive Grant Program OFMB Office of Financial Management & Budget QTI Qualified Target Industry Tax Refund Program (State of Florida) 9 EXHIBIT "A" ELIGIBLE REIMBURSABLES USE OF FUNDS JGI grant funds may be used to reimburse a company for the following expenses associated with the expansion of an existing local business and/or relocation of a company to Palm Beach County. Invoices submitted for reimbursement must be accompanied by copies of canceled checks, with the front and back sides of the canceled checks copied. Payment of Impact Fees and Special Assessments (a) Impact fees assessed by Palm Beach County include fees for roads, parks, fire-rescue, libraries, law enforcement, and public buildings. (b) Impact fees assessed by local governments and special assessments by special districts. 2. Land Improvement Costs (a) Off-site land improvements. (b) Road improvements. (c) Construction of recreational facilities open to the public. (d) Reimbursement for any government required dedications. (e) Water and sewer connection fees. (f) Telecommunication connection fees and costs. (g) Infrastructure design and construction plan preparation. (h) Drainage facilities in conjunction with new roadway construction or on-site improvements. (i) Construction of new curbs, curb cuts, medians, shoulders and sidewalks. (j) Relocating utilities to accommodate new roadway construction. (k) Facade redevelopment in eligible community redevelopment agency or downtown development authority designated areas subject to prior approval of all governing bodies. (I) Landscaping and road beautification costs. (m) All fees and dedications required by entities other than Palm Beach County (subject to prior approval by the County's Economic Development Office). (n) Palm Beach County permitting, licensing, or other approval costs associated with land improvements. Environmental Compliance (a) Costs associated with design and installation of equipment needed for compliance with existing federal, state, and local environmental standards. (b) Costs associated with asbestos removal. 4. Leasehold Improvements (a) Costs of improvements to leased property required by expansion or relocation, including wiring and other installation costs involving communication and computer systems. Construction and Renovation Costs (a) Costs of constructing or renovating the real property for which a company must possess title, with such costs directly related to the expansion or relocation. (b) Architect, design and technical fees associated with the expansion or relocation. 10 Employee Hiring and Training (a) Costs associated with providing for employee hiring and training, such as advertising, job fairs, and reasonable hotel and transportation costs for employee training. All out of town travel by trainers and trainees (new employees) directly necessitated by the expansion or relocation must be fully documented and will be reimbursed in accordance with the provisions of Florida Statute, Chapter 112, Part I, 112.061; www.leg.state.fl.us (select: Statutes & Constitution). Relocating Company Assets (a) Costs associated with relocation of company assets required by expansion or relocation. Day Care (a) Improvement costs associated with establishing a company sponsored day care facility for children of employees filling new jobs, with facility physically located on or adjacent to site of relocation or expansion project. Local Match for State Tax Refund Program (a) Up to 20% of State Tax refund subject to State Law and procedures established pursuant to this Job Growth Incentive Grant Program. 11 EXHIBIT "6" AWARD PER JOB GUIDELINES The awards per job identified below are only guidelines. The award per job is not based solely on the number of jobs. Other factors influence establishing an appropriate amount for the award per job, including but not limited to: applicant company is a targeted industry; relocation/expansion site is in a development region and/or enterprise zone; involves construction/renovation of a facility; average annual salary of new jobs; limited available funds in JGI Fund; and competition among applicants for the remaining funds. Also shown below is the required job maintenance period that immediately follows the job creation period. NUMBER OF NEW JOBS 50 - 99 100 - 149 150 - 249 250 - OTHER FACTORS Taraeted Cluster Industr AMOUNT OF MINIMUM REQUIRED JOB AWARD PER JOB MAINTENANCE PERIOD $ 500 - 900 36 months $ 1,000 - 1,400 48 months $ 1,500 - 1,900 60 months $ 2,000 72 months aerospace /engineering marine agribusiness /equine medical /pharmaceutical /health care business /financial services science /technology communications /information technology tourism /recreation /entertainment film /television (*) Relocation/Expansion Site & Facility in Palm Beach County site is within a development region and/or florida enterprise zone involves major investment, including construction or renovation of a facility Average Salary of New Jobs applicant will meet or exceed Palm Beach County's average annual wage of $36,548 (figure excludes benefits) or industry average annual wage or applicant will provide a high to very high average annual salary (far in excess of $36,548) (*) PBC Film Commission, Inc. assists film /television businesses with the Film & TV Incentive Grant Program. H:\JGI\JGI Application PacketWPPLIC_PACKET_criteria_costs_guidelines.doc JGI Criteria as of November 16, 2004 12 ~~~ACX cOG • • \LORI~/ .10B GROWTH INCENTIVE GRANT PROGRAM PALM BEACH COUNTY, FLORIDA APPLICATION NOTICE: Prior to filling out the application, please read the P OG A C IT°E IA ~ P OCESS handout on the program's eligibility requirementse O N®T° ALT°E O ELET°E SECTIONS ®F T° E APPLICATION, Program Purpose: The Job Growth Incentive (JGI) Grant Program is one of several economic development initiatives established by the Board of County Commissioners to provide funding assistance toward attracting businesses to Palm Beach County and supporting local expanding businesses. This program is designed to stimulate the creation of new full-time jobs in Palm Beach County, preferably quality, high skill and high salary positions. However, an application involving a large number of new jobs at a lower skill level and lower average annual salary will also be considered. Application Instructions: The JGI application must be filled out completely and signed for it to be processed. Attachments and exhibits may be included. A cover letter must accompany the application that adequately explains the scope of the company's planned expansion or relocation project, and the intended use of funds. Application Date: COMPANY INFORMATION Applicant Name: Mailing Address: Telephone: Fax: Web Site: 2. INCORPORATION INFORMATION Federal ID#: Type: State: Date of Incorporation: 3. CONTACT PERSON Name & Title: Mailing Address: Telephone: Fax: E-mail Address: 4. PRODUCT AND/OR SERVICE Business activities involving the project site in Palm Beach County: 5. COUNTY ASSISTANCE -PAST & PRESENT Identif below "past" incentive assistance provided to the applicant b Palm Beach Count Identif below "current" requests b the applicant for an other assistance from Palm Beach Count 6. PROJECT Relocation will result in moving entire business operation to Palm Beach County; or Relocation involves establishing a new branch or subsidiary facility in this County; or Expansion of an existing local business presently located in Palm Beach County. 7. POTENTIAL LOCATION Are you considering geographic areas other than Palm Beach County? 0 Yes 0 No 2 The local expanding business or the company not presently located in Palm Beach County is to identify below the potential sites of the expansion or relocation both inside and outside of Palm Beach County. Provide the names of the communities outside of this County or elsewhere in the State of Florida or the United States. The applicant should adequately demonstrate that there are other alternative locations under serious consideration as the possible site of the relocation or expansion project. Potential sites "inside" Palm Beach County: Potential sites "outside" Palm Beach County: 8. STRATEGIC PLAN Provide a brief overview of the proposed project in Palm Beach County. 9. REGISTERED WITH STATE OF FLORIDA Expansion Project: An applicant business planning an expansion and currently located in Palm Beach County must be registered with the Florida Department of State, Division of Corporations, in order to conduct business operations in Florida. It is required that the applicant's status be "Active" according to the Division of Corporations' latest record when submitting the JGI application to Palm Beach County. Local expansion applicant is registered with State of Florida: 0 Yes 0 No Verification of registration must be included with application's submittal. Verification enclosed: 0 Yes 0 No Relocation Project: In anticipation of commencing business operations in Palm Beach County the newly established business must register with the State of Florida in a timely manner. Florida Department of State, Division of Corporations, Corporate Records Section P.O. Box 6327, Tallahassee, FL 32314 telephone: (850) 488-9000 web site: www.dos.state.fl.us 10. 0 Public Company 0 Non-Public Company 11. TARGETED DEVELOPMENT AREA Relocation or expansion facility will be in an area designated: 0 Development Region and/or 0 Enterprise Zone These are areas targeted for economic development assistance by Palm Beach County and the State of Florida. The Business Development Board of Palm Beach County, Inc. (561-835-1008) and the Palm Beach County Economic Development Office (561-355-3624) can help the applicant determine whether the proposed business site in Palm Beach County is situated in or adjacent to a Development Region or in an Enterprise Zone. Maps of these areas are on website: www.pbcgov.com/pubinf/edo/Map.htm 12. FACILITY Gross square feet required: sq. ft. Existing Space and/or sq. ft. New Space The expanding or relocating business that will occupy the facility will: 0 Lease 0 Own 13. SCHEDULE OF JOB CREATION & INCURRING ELIGIBLE COSTS JOBS: commencement date to begin filling new jobs. JOBS: completion date for filling new jobs. COSTS: anticipated date to begin incurring eligible expenses. COSTS: anticipated date for incurring last eligible expenditure. 14. NEW FULL-TIME JOBS The following numbers must involve full-time jobs only. Current Emalovees: ~ ~ Existing payroll (total number of filled and unfilled positions). An "expansion" application by a local business in Palm Beach County must provide an affidavit (signed by an officer of the company) to verify the total number of employees on the company's current payroll. JGI A lication Commitment: Relocating Jobs (employees relocating to Palm Beach County) + New Hirees (excludes relocating employees) TOTAL NEW JOBS 15. LOCAL EXPANSION PROJECTS (applies to existing businesses in Palm Beach County only) Certified Copy of Payroll: A business presently located in Palm Beach County must provide a certified copy of its total full-time payroll as of December 31St for each of the most recent three vears. Employer's Quarterly Report: Enclose with the application a copy of Florida Department of Revenue form UCT-6 for each quarter of the most recent three vears. If the applicant has employees working at one or more sites outside of Palm Beach County but in Florida, the UCT-6 will include those employees. In this instance, the applicant is not required to submit the UCT-6. Florida Department of Revenue, 5050 W. Tennessee St., Tallahassee, FL 32399-0180. Telephone: 800-482-8293. www.myflorida/dor/forms 4 16. SALARY Refer to the PROGRAM CRITERIA & PROCESS handout for information on deriving the average annual salary (PART III, 3.) and for definitions of a new iob and relocating employee (PART VI). A. ALL NEW JOBS: Identify the average annualized salary (without benefits) for all new jobs. Include all exempt and non-exempt employees and all officers and senior corporate executives that will represent the total number of new full time jobs to be created/relocated in Palm Beach County. Total new jobs. Average Annual Salary (excluding benefits). This will be a salary commitment included in the agreement. Do not identify a range for this salary figure. B. LOW AND MID ECHELON NEW JOBS: Identify the average salary per annum of the new exempt and non-exempt employees only. Exclude from calculations the average annual salary of officers and senior corporate executives. Low and Mid Echelon Jobs Only. Average Annual Salary (excluding benefits). This will also be a salary commitment included in the agreement. Do not identify a range for this salary figure. 17. QTI TAX REFUND In the event that an applicant files an application for the Qualified Target Industry (QTI) Tax Refund Program with the State of Florida, the QTI Program requires that a 20% match be provided by the local government. The source for the match funds will be the JGI grant funds. The match funds are not in addition to the total amount of the grant award. Consideration is being given to filing a QTI application: 0 Yes 0 No If "Yes" is checked above: Date the QTI application was submitted to Enterprise Florida, Inc. Anticipated date of submitting the QTI application 18. CLUSTER INDUSTRY Identify whether your products and/or services places your business under one of the following industries. Check only one box: non-applicable communication /information technology aerospace /engineering marine agribusiness /equine medical /pharmaceutical /health care business /financial services science /technology tourism /recreation /entertainment 19. ELIGIBLE REIMBURSABLES Funds will be disbursed on a reimbursement basis for one or more of the following eligible costs. Check more than one box, if applicable: impact fees and special assessments employee hiring and training land improvement costs relocating company assets environmental compliance day care leasehold improvements local match for Florida's Qualified Target construction and renovation costs Industry(QTI) Tax Refund Program 20. AUDITED STATEMENTS It is very important that the applicant read the FINANCIAL AUDIT section (PART VII. 3.) of the PROGRAM CRITERIA & PROCESS handout which identifies the requirements regarding appropriate documentation. Financial statements for the applicant business audited by independent CPA for the most recent three 3 ears must be included with the application's submittal. Identify the audited business name (subject of audit): Is the audited business name different than the applicant business name? 0 Yes 0 No If "Yes" is checked above, provide an explanation and the Federal ID# of that business entity below: 21. NOTICE The applicant is advised not to employ or retain any company or person, other than a bona fide employee working solely for the applicant, to solicit or secure the grant award, and not pay or agree to pay any person, company, corporation, individual or firm, other than a bona fide employee working solely for the applicant, any fee, commission, percentage, gift, or any other consideration contingent upon or resulting from the award or making of the grant award. All documents provided to Palm Beach County are subject to the Public Records Act, State of Florida. 22. QUESTIONS & ASSISTANCE Business Development Board: The JGI applicant is encouraged to contact the Business Development Board (BDB) of Palm Beach County, Inc. to request assistance with the JGI Program requirements and with filling out the application. This would need to occur to enable the BDB to submit the application to the Palm Beach County Economic Development Office on your behalf. BUSINESS DEVELOPMENT BOARD OF PALM BEACH COUNTY, INC. 310 Evernia Street, West Palm Beach, FL 33401 (561) 835-1008 FAX (561) 835-1160 www.bdb.org Economic Development Office: The JGI application submitted by the BDB to the Palm Beach County Economic Development Office (EDO) will be processed for review. EDO may contact the applicant for a clarification regarding the application or to request additional information during the review process. In the event that a JGI Grant Agreement is to be prepared, EDO will contact the business when preparing the agreement and later when scheduling the agreement for action by the County Commission. 6 PALM BEACH COUNTY ECONOMIC DEVELOPMENT OFFICE P.O. Box 1989, West Palm Beach, FL 33402-1989 301 N. Olive Avenue, West Palm Beach, FL 33401 - 10th Floor (561) 355-3624 FAX (561) 355-6017 www.pbcgov.com/pubino/edo REMINDER: An application cannot be processed if it is incomplete, unsigned or lacks required documentation. 23. AUTHORIZED SIGNATURE The signature appearing below must belong to an employee of the company who is authorized to sign the application on behalf of the company. I attest to the accuracy of the information which is provided hereinabove. (signature) (print name) H:\JGI\JGI Application PacketWpplication_JGI_Boxes_rev_2_10_05.doc (title) (date) MEMORANDUM TO: Mayor and City Commissioners FROM: Douglas E. Smith, Assistant City Manager THROUGH: David T. Harden, City Manager DATE: February 2, 2011 SUBJECT: AGENDA ITEM WS.4 -WORKSHOP MEETING OF FEBRUARY 8, 2011 DISCUSSION OF THE STATE QUALIFIED TARGET INDUSTRY (QTI) TAX CREDIT PROGRAM ITEM BEFORE COMMISSION This item is before Commission to discuss the State Qualified Target Industry (QTI) Tax Credit Program. BACKGROUND Economic Development Director Francisco Perez-Azua provided the attached information on the State Qualified Target Industry (QTI) Tax Credit Program. This program provides a certain level of tax refunds to pre-approved applicants that create new jobs in Florida. Further information about the QTI program and a sample resolution for City support of the program are attached. The program would involve a committment from the City to provide a local match equaling 20% of the tax refund. City staff is supportive of the State QTI Tax Credit Program. BEACH, FLORIDA, FINDING THAT A QUALIFIED APPLICANT APPROVED BY THE STATE OF FLORIDA TO RECEIVE A QUALIFIED TARGET INDUSTRY TAX REFUND, PURSUANT TO s.288.106, FLORIDA STATUTES, BE APPROVED FOR A GRANT INCENTIVE TO SERVE AS REQUIRED LOCAL PARTICIPATION IN THE STATE OF FLORIDA QUALIFIED TARGET INDUSTRY TAX REFUND PROGRAM. BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA as follows: WHEREAS, the State of Florida Qualified Target Industry Tax Refund (QTI) Program is designed to encourage the creation of high-skill jobs and encourage the growth of corporate headquarters and other targeted industries. WHEREAS, QTI provides a tax refund of $3,000 per net new full-time equivalent Florida job created; a business is eligible fora $1,000 per job bonus if it pays over 150% average wage in the area, and a $2,000 job bonus if over 200%.. WHEREAS, the eligibility for this incentive will be determined by Enterprise Florida. The City of Delray Beach will provide the required local match for State and/or County economic development incentive programs that require a local government participation contribution or match. The application process will be through the State or County agency that is responsible for the specific economic development program, and will coordinate with the Palm Beach County Business Development Board (BDB) as appropriate. The City will review the application based on the eligibility requirements of the particular incentive program, the application submittal and approval history, the specifics of the proposed business plans including financial information, and the application evaluation factors outlined in this policy. If approved, the City of Delray Beach will enter an agreement with the company or business outlining the terms of the incentive. If incentives are awarded based on the creation of jobs, the jobs must be maintained throughout the incentive period. 2011. PASSED AND ADOPTED in regular session on this day of ATTEST By: By: City Clerk Mayor -..~.-. Incentive Information Sheet The Qualified Target Industry (QTI) Tax Refund is a tool available to Florida communities to encourage quality job growth in targeted high value-added businesses. Pre-approved applicants who create jobs in Florida receive tax refunds of $3,000 per net new full-time equivalent Florida job created; $6,000 in an Enterprise Zone or Rural County. For businesses paying 150 percent of the average annual wage, add $1,000 per job; for businesses paying 200 percent of the average annual salary, add $2,000 per job. New or expanding businesses in selected targeted industries or corporate headquarters are eligible. If approved, the applicant may receive refunds on the taxes it pays. This includes ~ ;;°' corporate income, sales, ad valorem, intangible personal property, insurance ,';:'r~~~ ~~ premium, communications services, and certain other taxes. There is a cap of 4~~°~~,rpx $S million per single qualified applicant in all years, and no more than 25 percent of the total refund approved maybe taken in any single fiscal year. i~ Eligibility In order to participate, a company must apply to Enterprise Florida (EFI) prior to making a decision to locate or expand in Florida. All final decisions on applications are based upon all available information at that time. Any business decisions, such as announcements, leasing of space or hiring of employees, made prior to submission of a complete, effective QTI application will be grounds for disapproval. Projects that clearly do not require inducement will not be approved. In order to qualify for consideration under the program, an applicant must: • be in a target industry (see attached Target Industries List); • submit an application before making a decision to locate or expand in Florida, and demonstrate that the tax refund will make a material difference in the company's decision to locate or expand in the community; • create at least 10 net new full-time equivalent Florida jobs and, if an expansion project, increase employment by at least 10 percent (whichever is greater). For a project located in a rural community or an enterprise zone, the net increase in employment may be waived in special i cur ~s~, ~~~m~ I Illllll~iiii,,,,,~ circumstances; • pay an average annual wage that is at least 115 percent of the state, metropolitan statistical area (MSA), or the local average wages. For a project located in a rural county, rural community, a designated brownfield area or an enterprise zone, the wage requirement may be waived in special circumstances; • show that the jobs make a significant economic contribution to the area economy; and II - • provide a resolution from the city or county commission recommending the applicant for the incentive and committing the community to provide a local match equaling 20 percent of the tax refund. If located in a Rural County or designated brownfield area, the business may elect to be exempt from the local match and accept a refund equal to 80 percent of the refund for which "" they would otherwise qualify. Application Process • EFI staff will shepherd businesses and communities through the entire application process, ensuring that the company and community understand what is required for a complete, effective application. • EFI reports its evaluation of the application and recommendation to the Director of the Governor's Office of Tourism, Trade and Economic Development (OTTED) who makes the final decision on the project. While the law allows a maximum of 45 days to evaluate the completed application, EFI makes every effort to expedite the process to meet the applicant's schedule. {Page 1 of3} =~.-. Incentive Information Sheet Approval Process • OTTED's approval or disapproval of the application is in the form of a letter of certification. • If the application is approved, the certification will indicate the amount and schedule of tax refunds approved, as well as the number ofjobs and average wage rate for the projectjobs. These must be the same as stated in the application. • While the law allows a maximum of 30 days to evaluate the completed application, OTTED makes every effort to expedite the process to meet the applicant's schedule. • Once the QTI application is approved, the business will begin working directly with OTTED to finalize the tax refund agreement. Within 120 days of issuance of the certification, the QTI business and the Director of OTTED must sign a written tax refund agreement. Refund Process • The business submits a claim each year for the scheduled tax refund and the community must pay its local match into the Economic Development Trust Fund. • If all the terms of the tax refund agreement are met, then OTTED pays the refund, including the local match, directly to the business. • The Economic-Stimulus Exemption (Chapter 288.106 (4)(b)4, F.S.) can be requested for claims scheduled to be submitted after January 1, 2005, but before July 1, 2006 by existing QTI businesses negatively affected by a named hurricane or tropical storm. A waiver of the local financial support may be requested by certain communities if the QTI match payment will place a financial hardship on the municipality. Statutory Reference: ,~.w~~~~a~~~r ~~5°5°°. ~~f~~, f ~~~~aa~~~,~»~~~~~~~~~.s Enterprise Florida, Inc. The Atrium Building, Suite 201 •325 John Knox Road • Tallahassee, Florida, 32303 Phone: 850.298.6620 • Fax: 850.298.6659 {Page 2 of3} www.eflorida.com r;~ ~. c~:r/r~ i _ 1'~ J'~~~~ ~~_rJ1 J.~ .~~~~~~. ~ ~1 ~.~J~ ~~~~~~ ~. Incentive Information Sheet Effective January 15, 2009 Only businesses able to locate in other states and serving multi-state and/or international markets are targeted. Retail activities, utilities, mining and other extraction or processing businesses, and activities regulated by the Division of Hotels and Restaurants of the Department of Business and Professional Regulation are statutorily excluded from consideration. All projects are evaluated on an individual basis and therefore operating in a target industry does not automatically indicate eligibility. ~,.. ~' ~ Manufacturing Facilities .~' , ^~ Information Industries Food & Beverage Products Textile Mills & Apparel Wood & Paper Products Printing & Related Support Activities Chemicals Ethanol & Biodiesel Fuel Manufacturing Pharmaceutical Manufacturing Plastics & Rubber Products Metal &Non-Metallic Mineral Products Ultra High Purity Silicon Manufacturing Machinery Electronic Flight Simulator Manufacturing Optical Instruments Manufacturing Turbine and Turbine GeneratorManufacturing Electrical Equipment Computer & Electronic Products Electromedical Apparatus Manufacturing Laser & Optoelectronics Manufacturing Semiconductor Manufacturing Photovoltaic & Hydrogen Fuel Cells Software Reproducing Transportation Equipment Aircraft Manufacturing Marine Manufacturing Aerospace Manufacturing Aircraft Maintenance, Repair & Overhaul Furniture & Related Products Miscellaneous Surgical & Medical Instrument Manufacturing Finance & Insurance Services ..~_ _ 'J Credit Intermediation & Related Activities Nondepository Credit Institutions Securities, Commodity Contracts Insurance Carriers Funds, Trusts & Other Financial Vehicles ~~ Corporate Headquarters ~:~ Corporate, Subsidiary & Regional Managing Offices Offices of Bank & Other Holding Companies Publishing Industries Software Publishing Music Publishing Film, Video, Sound Recording & Electronic Media Production (Excluding temporary'on location"filming) Postproduction Services Integrated Record Production/Distribution Telecommunications Satellite Communications Data Processing, Hosting & Related Services Other Information Services Internet Publishing & Broadcasting Web Search Portals v ,~ Professional, Scientific & Technical Services Professional, Scientific &Technical Computer Programming/Software Development Computer System Design Management, Scientific &Technical Services Research & Development Scientific &Technical Consulting Services Simulation Training Testing Laboratories Space Launch Activities Flight Training Services Centralized Corporate Training Services ~' WholesaleTrade& ® Distribution Merchant Wholesalers, Durable &Non-Durable Distribution Centers Electronic Markets Agents & Brokers Administrative & ~~~~~~ Support Services Customer Care Centers Telephonic & Online Business Services Customer &Technical Support Transaction Processing Credit Bureaus Those industries in italics are examples of the subsections. {Page 3 of 3 } ** Someindustrieshavespecificeligibilitycriteriabeyondthoseoutlinedinstatute.Forquestionsregardingprojecteligibility,contactEnterpriseFlorida. ~;~,,,.~~,>„~ Qualified Target Industry Tax Refund Attachment to the General Project Overview Name of Business FOR EFI USE ONLY Date Received Date Revised Date Completed EFI Project Number Must be a separate business unit or reporting unit of a business unit that is or will be registered with the State of Florida for unemployment compensation purposes. IMPORTANT NOTE: This application must be filed and the incentive approved prior to making the decision to expand an existing Florida business unit or to locate a new business unit in Florida. * * *Be sure to submit the General Project Overview and Local Support Resolution' following passage bythe Cityl County" A. What is the total number of net new full-time equivalent Florida jobs created by the project at the business unite? B. Provide the job creation schedule to which you commit: (Please limit the phases to a maximum of three consecutive years and job creation to no less than ten jobs in the first year). Phase Number of net new full-time equivalent Florida jobs created in the business unit Date by which jobs will be created I 12/31 / I I 12/31 / III 12/31/ Total C. For the purposes of certification, agreement, and claim review, indicate the average wage and corresponding threshold (percentage) to which you commit: Check the relevant box onl one) and fill in the first field (wage commitment) and second field (county, state, or MSA used). ^ $ ,which is at least 115% of the average wage in ^ $ ,which is at least 150% of the average wage in ^ $ ,which is at least 200% of the average wage in A. Identify the local government(s) anticipated to provide local financial support3: B. Indicate the date(s) the QTI support resolution(s) is /are anticipated to be passed by the local government: Submit the resolution adopted by the local governing body recommending the applicant be approved as a QTI Business unit and indicating the amount of local financial support that has been committed. Resolution should clearly indicate waivers requested and justification for such waivers. Must be a minimum of 10 new jobs and a 10 percent increase in current business unit employment (if an existing Florida business). s The total QTI award may not exceed five times the local financial support provided by the community. If the community has requested a local financial support waiver or the support is provided in the form of ad valorem tax abatement, the QTI award will be reduced by this amount. Revised 06/10 Page 1 of 2 Qualified Target Industry Tax Refund Attachment to the General Project Overview Signature of Individual Completing this Attachment (if different from General Project Overview) Address (if different) Signature (Authorized Company Officer) REQUIRED Name and Title of Authorized Officer Date Phone Number (if different) Date • The tax refund claim form will be due by January 31St each year for the number ofjobs on December 31St of the previous calendar year. Tax refunds paid per state fiscal year (July 1 -June 30) may not exceed 25 percent of the total tax refund award associated with the phase(s) scheduled. • The total award will be equal to $3,000 ($6,000 in Enterprise Zones or Rural Counties) times the number ofjobs reported in item 1A. Additional perjob bonuses may be available; however, the QTI award may not exceed five times the local financial support paid by the community. o $1,000 perjob if the average annual wage is at least 150% of the area's average; or $2,000 perjob if the average annual wage is at least 200%. o $2,000 perjob if the business falls within a designated high impact sector OR if the business increases exports of its goods through a seaport of airport in the state by at least 10 percent in value or tonnage in each year of receiving a QTI refund. o $2,500 perjob if the project locates in a designated Brownfield area (Brownfield Bonus). o $1,000 perjob if the local financial support is equal to the base QTI award. • If in any year the applicant does not achieve the job creation schedule outlined in item 1 C, but achieves at least 80% of the required net new jobs, the company will receive apro-rated refund less a 5% penalty of the scheduled award amount for that year. If job creation falls below 80% of the required jobs, the company will not receive a refund and will be terminated from the program. Similarly, if the average wage falls below the wage committed to in 1 C, the company will not receive a refund and will be terminated from the program. • For an expanding Florida business unit: o Existing number of full-time equivalent Florida jobs must be maintained for the duration of the QTI agreement. o The average wage commitment should include wages paid for only the net new to Florida lobs, as shown on the unit's UCT-6 form. The applicant will be required to establish a tracking mechanism to distinguish between existing versus new jobs and employees filling those jobs. Contact Enterprise Florida for more information. • QTI eligible jobs are those that are physically located within the State of Florida and located at the facility listed as the proposed location address in question 2G of the General Project Overview or subsequent QTI contract with the State of Florida. If any jobs will not be physically located at the proposed location address, contact Enterprise Florida to discuss the situation. Jobs that are paid out of the proposed location address facility but are not located at that facility or in the State of Florida are not considered net new lobs for QTI purposes. • A qualified target industry business that fraudulently claims a refund under 288.106(2), Florida Statutes: o Is liable for repayment of the refund to the account, plus a mandatory penalty in the amount of 200 percent of the tax refund which shall be deposited into the General Revenue Fund. o Is guilty of a felony of the third degree, punishable as provided in s. 775.082, s. 775.083, ors. 775.084. • Qualified Target Industry Tax Refund: Section 288.106. Florida Statutes. Revised 06/10 Page 2 of 2 MEMORANDUM TO: Mayor and City Commissioners FROM: R. Brian Shutt, City Attorney DATE: February 3, 2011 SUBJECT: AGENDA ITEM WS.S -WORKSHOP MEETING OF FEBRUARY 8, 2011 AMENDMENT TO FINANCIAL REVIEW BOARD RESOLUTION ITEM BEFORE COMMISSION Discussion regarding Resolution OS-11 modifying the Financial Review Board. BACKGROUND This Resolution previously came before the Commission on January 18, 2011, where it was tabled and staff was directed to review the proposed language in the resolution that provided that no officer or director of any organization could sit on the board where the organization had requested, within the past 3 years, or would request financial assistance from the City. It was felt that this requirement may be more restrictive than necessary. Based on that discussion Resolution OS-11 has been modified (the portions regarding the direction of the board and that no employee may sit on the board have not been changed) to provide that no officer, director or member of an organization may lobby any member of the City Commission regarding funding or services for that organization. Language was also added to provide that Section 2 of the resolution (related to employees) would not apply to the present term of any current board members. RESOLUTION NO. OS-11 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AMENDING RESOLUTIONS 55-09 AND 58-09, WHICH ESTABLISHED THE RESPONSIBILITIES OF THE FINANCIAL REVIEW BOARD AND ITS MEMBER REQUIREMENTS, TO CLARIFY THAT THE BOARD'S DUTIES SHALL FALL UNDER THE DIRECTION OF THE CITY MANAGER OR CITY COMMISSION AND TO RESTRICT THE MEMBERSHIP OF THE BOARD; PROVIDING AN EFFECTIVE DATE. WHEREAS, the City Commission of the City of Delray Beach, Florida, desires to amend Resolutions 55-09 and 58-09 to provide that the responsibilities and duties of the Board shall fall under the direction of the City Manager, or his/her designee, and/or the City Commission; and WHEREAS, the City Commission of the City of Delray Beach, Florida, desires to prohibit employees of the City from serving on the Financial Review Board to reduce the possibility of a conflict with the employee's employment; and WHEREAS, The City Commission of the City of Delray Beach, Florida desires to prohibit officers, directors and members of organizations, who are appointed to the Financial Review Board, from lobbying, while a member of the Financial Review Board, the City Commission for funding or services on behalf of their organization, in order to reduce the possibility of a conflict of interest. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That the responsibilities and duties of the Financial Review Board, as set forth in Resolutions 55-09 and 58-09, shall be carried out under the direction of the City Manager, or his/her designee, and/or the City Commission. The Board shall undertake the reviews or take action in furtherance of such reviews as approved or directed by the City Manager or his/her designee, or the City Commission. Section 2. No City employee shall be eligible to serve on the Financial Review Board. Section 3. Any person who is appointed to the Financial Review Board, who is also an officer, director or member of another organization, shall be prohibited from personally or directly lobbying, while a member of the Financial Review Board, any member of the City Commission for funding or services on behalf of that organization. Section 4. Section 2 of this Resolution shall not apply to the present term of any members currently on the board. PASSED AND ADOPTED in regular session on the day of , 2011. MAYOR Attest: City Clerk RES. NO. OS-11