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Ord 44-12ORDINANCE NO. 44 -12 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, ADOPTED IN ACCORDANCE WITH SECTION 196.1995, FLORIDA STATUES, CALLING FOR A REFERENDUM TO BE HELD ON MARCH 12, 2013, PROPOSING TO THE ELECTORATE OF THE CITY THAT THE CITY COMMISSION BE AUTHORIZED TO GRANT PROPERTY TAX EXEMPTION TO CERTAIN QUALIFIED BUSINESSES PURSUANT TO SEC. 3, ARTICLE VII OF THE STATE CONSTITUTION; PROVIDING FOR SUBMISSION OF THE PROPOSED BALLOT QUESTION TO THE ELECTORS OF THE CITY; SETTING FORTH THE FORM OF THE QUESTION TO BE VOTED UPON AT SUCH ELECTION; PROVIDING A CONFLICTS CLAUSE, A SEVERA.BILITY CLAUSE, AND AUTHORITY TO CODIFY; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES.. WHEREAS; the City Commission of the City of Delray Beach has determined that a recognized function of the City is to promote economic development within its jurisdiction by providing financial incentives that will encourage new businesses to relocate within its jurisdiction and existing businesses to expand creating employment opportunities that will benefit the entire community, and WHEREAS, the current economic climate has resulted in a high unemployment rate, which impacts the quality of life for City citizens and the sustainability of local businesses; and WHEREAS, die City Commission desires to offer an Econoinic Development Ad Valorem (property tax) Tax Exemption for new businesses relocating to the City of Delray Beach and to businesses already located in the City that are expanding in order to foster economic growth and increase employment as allowed by state law; and WHEREAS, the City Commission believes and desires that this issue be submitted for referendum of the City residents in order to determine if the City Commission should be authorized to grant economic ad valorem tax exemptions under Section 3, Atticle VII of the State Constitution. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMIVIISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section I. That the recitations are set forth above are incorporated herein. Section 2. The referendum question proposed by this Ordinance shall be submitted to the electors of the City of Delray Beach, Florida at the general election tdbe field on the 121' day of March, 2013, and shall be deemed adopted effective at 12:01 a.m. March 13, 2013, upon receiving an affirmative vote of a majority of the electors voting at the time upon the following question: CITY OF DELRAY BEACH REFERENDUM AUTHORIZATION TO GRANT ECONOMIC PROPERTY TAX EXEMPTIONS IN ACCORDANCE WITH THE STATE CONSTITUTION SHALL THE CITY COMMISSION BE AUTHORIZED TO GRANT, PURSUANT TO S. 3, ART. VII OF THE STATE CONSTITUTION, PROPERTY TAX EXEMPTIONS TO NEW BUSINESSES AND EXPANSIONS OF EXISTING BUSINESSES THAT ARE EXPECTED TO CREATE NEW, FULL -TIME JOBS IN THE CITY OF DELRAY BEACH? YES — For the authority to grant exemptions NO — Against authority to grant exemptions Section 3. The City Clerk The City Clerk shall cause a notice of this election called for the purpose of presenting the subject Chatter revision to a vote of the electorate to be published in accordance with the provisions of Section 100.342, Florida Statutes, at least twice; once in the fifth week and once in the third week prior to the week in which the referendum is to be held; provided that the first publication shall take place at least thirty (30) days before the date fixed for the referendum and shall be published in newspaper of general circulation within the City. Section 4. The City Clerk shall cause a notice of election to be published in accordance with the City's charter and ordinance requirements. Section 5_ That should any section or provision of this ordinance of any portion thereof, any paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof as a whole or part thereof other than the part declared to be invalid. Section 6. That all ordinances or parts of ordinances in conflict herewith be, and the same are hereby repealed. Section 7. This Ordinance shall become effective itiAnediately upon adoption. The City Commission's authority to grant, at its direction, property tax exemptions as set forth in Section 2 hereinabove shall become effective as of 12:01 a.m. on March 13, 2013, if tlhe question to be voted upon provided hereinabove receives an affirmative vote of the majority of the votes cast at the election held on March 12, 2013. PASSED AND ADOPTED in regular session on second and final reading on this the � day of 2013- ATTEST MAYOR City Clerk 2 ORD NO. 44.12 Coversheet MEMORANDUM TO: Mayor and City Commissioners FROM: Vincent Nolan, CEcD, Economic Development Director THROUGH: David T. Harden, City Manager DATE: December 5, 2012 Page 1 of 3 SUBJECT: AGENDA ITEM 12.A. -REGULAR COMMISSION MEETING OF DECEMBER 11, 2012 ORDINANCE NO. 44 -12 ITEM BEFORE COMMISSION Consideration of Ordinance 44 -12 which would place on the March ballot a question whether to authorize the City Commission to grant property tax exemptions to new or expanding businesses.. BACKGROUND Several weeks ago, Vice -Mayor Carney called attention to an ordinance recently passed by the City of Palm Beach Gardens. That ordinance afforded their City Commission the ability to grant property tax exemptions to companies wishing to relocate to their community, or to existing companies committed to expanding their facilities in Palm Beach Gardens. Staff began researching the necessary steps to enacting a similar ordinance here in Delray Beach. Initial investigation established the fact that such tax exemptions are authorized by State Statute and, like other property tax exemptions, they require approval of the voters to grant the use of such exemptions locally. The authority to grant exemptions expires 10 years after the date such authority is approved in an election, but such authority may be renewed for subsequent 10 -year periods if each 10 -year renewal is approved in a referendum called for that purpose. The voters of Palm Beach County just reauthorized such exemptions to be used by the County during the November 2012 elections. At the most recent stakeholders meeting of the Palm Beach County Business Development Board, BDB Chief Executive Officer Kelly Smallridge encouraged all communities in Palm Beach County to consider adding this tool to their economic development tool box, in addition to other local cash incentives which they may have already enacted. As with the incentives we have already adopted, property tax exemptions are not an "as of right" benefit but must be individually approved by the City Commission for each company requesting such an exemption. The referendum is a ten year authorization, granting the power to the City Commission to use exemptions as an economic development tool. The Commission would then consider each company request on a case by case basis. http:// itwebapp/ AgendalntranetB luesheet.aspx ?ltemID- 6272 &MeetingfD -397 12/26/2012 Coversheet Page 2 of 3 In considering any application for an exemption under this ordinance, the City would take into account the following: (a) The total number of net new jobs to be created by the applicant; (b) The average wage of the new jobs; (c) The capital investment to be made by the applicant; (d) The type of business or operation and whether it qualifies as a targeted industry as may be identified from time to time by the City Commission; (e) The environmental impact of the proposed business or operation; (f) The extent to which the applicant intends to source its supplies and materials within the City; (g) Any other economic - related characteristics or criteria deemed necessary by the City Commission; (h) The total amount of revenue available to the City from ad valorem tax sources for the current fiscal year, the total amount of revenue lost to the City for the current fiscal year by virtue of economic development ad valorem tax exemptions currently in effect, and the estimated revenue loss to the City for the current fiscal year attributable to the exemption of the applicant business; (i) The period of time for which the exemption will remain in effect and the expiration date of the exemption, which may be any period of time up to 10 years; and 0) A finding that the business meets the requirements of Florida Statutes 196.012(15) or (16). Upon approval of an application for a tax exemption under this ordinance, the City Commission and the applicant may enter into a written tax exemption agreement, which may include performance criteria and must be consistent with the requirements of the Statutes or other applicable laws. The agreement must require the applicant to report at a specific times before the expiration of the exemption the actual number of new, full -time jobs created and their actual average wage. The agreement may provide the City Commission with authority to revoke, in whole or in part, the exemption if the applicant fails to meet the expectations and representations made in the application. Enacting such an ordinance in Delray Beach will give the City one more tool to use in recruiting and retaining businesses. This tool is particularly effective when the business in question is acquiring real property or expanding its physical plant. It may be used independently or in concert with other incentives offered by the City through The Delray Beach Economic Development Fund. By taking action now, the City of Delray Beach will have the opportunity to move this forward on the March 12, 2013 ballot. This will place Delray Beach among the leading communities in Palm Beach County to employ the most aggressive economic development programs for recruitment and retention of business http:// itwebapp/ Agendalntranet /Bluesheet.aspx ?ltemiD= 6272 &MeetinglD =397 12/26/2012 Coversheet and the creation of jobs for its residents. RECOMMENDATION Recommend approval of Ordinance No. 44 -12 on First Reading. Page 3 of 3 http:// itwebapp/ Agendalntranet /.Bluesheet.aspx ?ItemlD= 6272 &McctingID =397 12/26/2012 CITY OF DELRAY BEACH REFERENDUM AUTHORIZATION TO GRANT ECONOMIC PROPERTY TAX EXEMPTIONS IN ACCORDANCE WITH THE STATE CONSTITUTION SHALL THE CITY COMMISSION BE AUTHORIZED TO GRANT, PURSUANT TO S_ 3, .ART. VII OF THE STATE CONSTITUTION, PROPERTY TAX EXEMPTIONS TO NEW BUSINESSES AND EXPANSIONS OF EXISTING BUSINESSES THAT ARE EXPECTED TO CREATE NEW, FULL -TIME JOBS IN THE CITY OF DELRAY BEACH? YES — For the authority to grant exemptions NO — Against authority to grant exemptions Section 3. The City Clerk The City Clerk shall cause a notice of this election called for the purpose of presenting the subject Charter revision to a vote of the electorate to be published in accordance with the provisions of Section 100.342, Florida Statutes, at least twice; once in the fifth week and once in the third week prior to the week in which the referendum is to be held; provided that the first publication shall take place at least thirty (30) days before the date fixed for the referendum and shall be published in newspaper of general circulation within the City. Section 4. The City Clerk shall cause a notice of election to be published in accordance with the City's charter and ordinance requirements. Section 5. That should any section or provision of this ordinance or any portion thereof, any paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof as a whole or part thereof other than the part declared to be invalid. Section 6. That all ordinances or parts of ordinances in conflict herewith be, and the same are hereby repealed. Section 7. This Ordinance shall become effective immediately upon adoption. The City Commission's authority to grant, at its direction, property tax exemptions as set forth in Section 2 hereinabove shall become effective as of 12:01 a.m. on Match 13, 2013, if the question to be voted upon provided hereinabove receives an affirmative vote of the majority of the votes cast at the election held on March 12, 2013. PASSED AND ADOPTED in regular session on second and final reading on this the day of .2013. ATTEST City Clerk MAYOR 2 ORD NO. 44 -12 First Reading Second Reading ORD NO. 44 -12 Coversheet MEMORANDUM TO: Mayor and City Commissioners FROM: Vincent Nolan, CEcD, Economic Development Director THROUGH: David T. Harden, City Manager DATE: December 26, 2012 Page 1 of 2 SUBJECT: AGENDA ITEM 11.C. - REGULAR COMMISSION MEETING OF JANUARY 3 2013 ORDINANCE NO. 44 -12 ITEM BEFORE COMMISSION This item is before Commission for a second reading to approve Ordinance No. 44-12. BACKGROUND On December 11, 2012, the City Commission approved at first reading an ordinance which would ultimately authorize the City Commission to grant property tax exemptions to companies wishing to relocate to Delray Beach, or to existing companies committed to expanding their facilities in Delray Beach. This would mirror a similar ordinance recently passed by the voters of Palm Beach Gardens, as well as the existing tax exemption ability renewed by the voters of Palm Beach County. As previously presented, such tax exemptions are authorized by State Statute and like all other property tax exemptions, they require approval of the voters to grant the use of such exemptions locally. If approved, the authority to grant exemptions expires 10 years after the date such authority is approved in an election, but such authority may be renewed for subsequent 10 -year periods if each 10 -year renewal is approved in a referendum called for that purpose. We have been encouraged by the Palm Beach County Business Development Board to adopt such an ordinance, as they are encouraging all communities in Palm Beach County to do so. BDB Chief Executive Officer Kelly Smallridge believes that this is an important tool in every community's economic development tool box, in addition to other local cash incentives which they may have already enacted. Once approved for use by the voters, each individual company exemption is not the subject of a referendum. The City Commission would consider each applicant request on a case by case basis and authorize such exemption by vote of the Commission. In considering any application for an exemption under this ordinance, the City would take into account a variety of factors, including: number of new jobs, the average wage of the new jobs, capital investment, type of business, environmental impact of the business, impact on other local businesses, availability of funds, and any other economic - related characteristics or criteria deemed necessary by the City Commission. There must also be a finding that the business meets the requirements of State Statute http: / /itwebapp/ Agendalntranet /Bluesheet.aspx ?ItemlD= 6345 &MeetinglD =429 2/12/2013 Coversheet s. 196.012(15) or (16). Page 2 of 2 Upon approval of an application for a tax exemption under this ordinance, the City Commission and the applicant will enter into a written tax exemption agreement, which may include performance criteria and must be consistent with the requirements of the Statutes or other applicable laws. The agreement must require the applicant to report at a specific time before the expiration of the exemption the actual number of new, full -time jobs created and their actual average wage. The agreement may provide the City Commission with authority to revoke, in whole or in part, the exemption if the applicant fails to meet the expectations and representations made in the application. Enacting such an ordinance in Delray Beach will give the City one more tool to use in recruiting and retaining businesses. This particular tool is particularly effective when the business in question is acquiring real property or expanding its physical plant. It may be used independently or in concert with other incentives offered by the City through The Delray Beach Economic Development Fund_ By taking action now, the City of Delray Beach will have the opportunity to move this forward on the March 12, 2013 ballot. This will place Delray Beach among the leading communities in Palm Beach County to employ the most aggressive economic development programs for recruitment and retention of business and the creation of jobs for its residents. RECOMMENDATION Recommend approval of Ordinance No. 44 -12 on Second Reading and refer the matter to the voters by public referendum on March 12, 2013. http:ll itwebapp/ Agendalntranet /Blueshect.aspx ?ItemlD= 6345 &MeetinglD =429 2/12/2013 ORDINANCE NO. 44-12 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, ADOPTED IN ACCORDANCE WITH SECTION 196.1995, FLORIDA STATUES, CALLING FOR A REFERENDUM TO BE HELD ON MARCH 12, 2013, PROPOSING TO THE ELECTORATE OF THE CITY THAT THE CITY COIMSSION BE AUTHORIZED TO GRANT PROPERTY TAX EXEMPTION TO CERTAIN QUALIFIED BUSINESSES PURSLrikNT TO SEC. 3, ARTICLE VII OF THE STATE CONSTITUTION; PROVIDING FOR SUBMISSION OF THE PROPOSED BALLOT QUESTION TO THE ELECTORS OF THE CITY; SETTING FORTH THE FORM OF THE QUESTION TO BE VOTED UPON AT SUCH ELECTION; PROVIDING A CONFLICTS CLAUSE, A SEVERABILITY CLAUSE, AND AUTHORITY TO CODIFY; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES.. WHEREAS, the City Commission of the City of Delray Beach has determined that a recognized function of the City is to promote economic development within its jurisdiction by providing financial incentives that will encourage new businesses to relocate within its jurisdiction and existing businesses to expand creating employment opportunities that will benefit the entire community; and WHEREAS, the current economic climate has resulted in a high unemployment rate, which impacts the quality of life for City citizens and the sustainability of local businesses; and WHEREAS, the City Commission desires to offer an Economic Development Ad Valorem (property tax) Tax Exemption for new businesses relocating to the City of Delray Beach and to businesses already located in the City that are expanding in order to foster economic growth and increase employment as allowed by state law, and WHEREAS, the City Commission believes and desires that this issue be submitted for referendum of the City residents in order to determine if the City Commission should be authorized to grant economic ad valorem tax exemptions under Section 3, Article VII of the State Constitution. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That the recitations are set forth above are incorporated herein. Section 2. The referendum question proposed by this Ordinance shall be submitted to the electors of the City of Delray Beach, Florida at the general election to be held on the 121h day of March, 2013, and shall be deemed adopted effective at 12:01 a.m. March 13, 2013, upon receiving an affirmative vote of a majority of the electors voting at the time upon the following question: CITY OF DELRAY BEACH REFERENDUM AUTHORIZATION TO GRANT ECONOMIC PROPERTY TAX EXEMPTIONS IN ACCORDANCE WITH THE STATE CONSTITUTION SHALL THE CITY CONMSSION BE AUTHORIZED TO GRANT, PURSUANT TO S. 3, ART. VII OF THE STATE CONSTITUTION, PROPERTY TAX EXEMPTIONS TO NEW BUSINESSES AND EXPANSIONS OF EXISTING BUSINESSES THAT ARE EXPECTED TO CREATE NEW, FULL -TIME JOBS IN THE CITY OF DELRAY BEACH? YES — For the authority to grant exemptions NO — Against authority to grant exemptions Section 3. The City Clerk The City Clerk shall cause a notice of this election called for the purpose of presenting the subject Charter revision to a vote of the electorate to be published in accordance with the provisions of Section 100.342, Florida Statutes, at least twice; once in the fifth week and once in the third week prior to the week in which the referendum is to be held; provided that the first publication shall take place at least thirty (30) days before the date fixed for the referendum and shall be published in newspaper of general circulation within the City_ Section 4. The City Clerk shall cause a notice of election to be published in accordance with the City's charter and ordinance requirements. Section -3. That should any section or provision of this ordinance or any portion thereof, any paragraph, sentence, or word be declared by a court of competent jurisdiction to be invalid, such decision shall not affect the validity of the remainder hereof as a whole or part thereof other than the part declared to be invalid. Section 6_ That all ordinances or parts of ordinances in conflict herewith be, and the same are hereby repealed. Section 7_ This Ordinance shall become effective immediately upon adoption. The City Commission's authority to grant, at its direction, property tax exemptions as set forth in Section 2 hereinabove shall become effective as of 12:01 a.m. on March 13, 2013, if the question to be voted upon provided hereinabove receives an affirmative vote of the majority of the votes cast at the election held on March 12, 2013. PASSED AND ADOPTED in regular session on second and final reading on this the day of .2013. EYE— —15 M City Clerk ffa C 2 ORD ISO. 44 -12 First Reading Second Reading ORB NO. 44 -12 Coversheet MEMORANDUM TO: Mayor and City Commissioners FROM: Vincent Nolan, CEeD, Economic Development Director THROUGH: David T. Harden, City Manager DATE: December 5, 2012 Pagel of 3 SUBJECT: AGENDA ITEM 12.A. - REGULAR COMMISSION MEETING OF DECEMBER 11, 2012 ORDINANCE NO. 44 -12 ITEM BEFORE CONU IISSION Consideration of Ordinance 44 -12 which would place on the March ballot a question whether to authorize the City Commission to grant property tax exemptions to new or expanding businesses.. BACKGROUND Several weeks ago, Vice -Mayor Carney called attention to an ordinance recently passed by the City of Palm Beach Gardens. That ordinance afforded their City Commission the ability to grant property tax exemptions to companies wishing to relocate to their community, or to existing companies committed to expanding their facilities in Palm Beach Gardens. Staff began researching the necessary steps to enacting a similar ordinance here in Delray Beach. Initial investigation established the fact that such tax exemptions are authorized by State Statute and, like other property tax exemptions, they require approval of the voters to grant the use of such exemptions locally. The authority to grant exemptions expires 10 years after the date such authority is approved in an election, but such authority may be renewed for subsequent 10 -year periods if each 10 -year renewal is approved in a referendum called for that purpose. The voters of Palm Beach County just reauthorized such exemptions to be used by the County during the November 2012 elections. At the most recent stakeholders meeting of the Palm Beach County Business Development Board, BDB Chief Executive Officer Kelly Smallridge encouraged all communities in Palm Beach County to consider adding this tool to their economic development tool box, in addition to other local cash incentives which they may have already enacted. As with the incentives we have already adopted, property tax exemptions are not an "as of right' ' benefit but must be individually approved by the City Commission for each company requesting such an exemption. The referendum is a ten year authorization, granting the power to the City Commission to use exemptions as an economic development tool. The Commission would then consider each company request on a case by case basis. littp:// itm,ebappl Agendalntranct /Bluesheet.aspx ?ItemlD= 6272 &McetingID =397 12/26/2012 Coversheet Page 2 of 3 In considering any application for an exemption under this ordinance, the City would take into account the following: (a) The total number of net new jobs to be created by the applicant; (b) The average wage of the new jobs; (c) The capital investment to be made by the applicant; (d) The type of business or operation and whether it qualifies as a targeted industry as may be identified from time to time by the City Commission; (e) The environmental impact of the proposed business or operation; (f) The extent to which the applicant intends to source its supplies and materials within the City; (g) Any other economic - related characteristics or criteria deemed necessary by the City Commission; (h) The total amount of revenue available to the City from ad valorem tax sources for the current fiscal year, the total amount of revenue lost to the City for the current fiscal year by virtue of economic development ad valorem tax exemptions currently in effect, and the estimated revenue loss to the City for the current fiscal year attributable to the exemption of the applicant business; (i) The period of time for which the exemption will remain in effect and the expiration date of the exemption, which may be any period of time up to 10 years; and 0) A finding that the business meets the requirements of Florida Statutes 196.012(15) or (16). Upon approval of an application for a tax exemption under this ordinance, the City Commission and the applicant may enter into a written tax exemption agreement, which may include performance criteria and must be consistent with the requirements of the Statutes or other applicable laws. The agreement must require the applicant to report at a specific times before the expiration of the exemption the actual number of new, full -time jobs created and their actual average wage. The agreement may provide the City Commission with authority to revoke, in whole or in part, the exemption if the applicant fails to meet the expectations and representations made in the application. Enacting such an ordinance in Delray Beach will give the City one more tool to use in recruiting and retaining businesses. This tool is particularly effective when the business in question is acquiring real property or expanding its physical plant. It may be used independently or in concert with other incentives offered by the City through The Delray Beach Economic Development Fund. By taking action now, the City of Delray Beach will have the opportunity to move this forward on the March 12, 2013 ballot. This will place Delray Beach among the leading communities in Palm Beach County to employ the most aggressive economic development programs for recruitment and retention of business http: l/ itwcbapp/ Agendalntranet /Bluesheet.aspx ?ltemlD- 6272 &MeetingID -397 12/26/2012 Coversheet and the creation of jobs for its residents. RECOMMENDATION Recommend approval of Ordinance No. 44 -12 on First Reading. Page 3 of 3 http: l/ itwebapp/ Agendalntranet /BIueshect.aspx ?ItemII]= 6272 &MeetinglD =397 12/26/2012 Coversheet MEMORANDUM TO: Mayor and City Commissioners FROM: Vincent Nolan, CEcD, Economic Development Director THROUGH: David T. Harden, City Manager DATE: December 26, 2012 Page 1 of 2 SUBJECT: AGENDA ITEM 11.C. -REGULAR COMMISSION MEETING OF JANUARY 3, 2013 ORDINANCE NO. 44 -12 ITEM BEFORE COMMISSION This item is before Commission for a second reading to approve Ordinance No. 44-12. BACKGROUND On December 11, 2012, the City Commission approved at first reading an ordinance which would ultimately authorize the City Commission to grant property tax exemptions to companies wishing to relocate to Delray Beach, or to existing companies committed to expanding their facilities in Delray Beach. This would mirror a similar ordinance recently passed by the voters of Palm Beach Gardens, as well as the existing tax exemption ability renewed by the voters of Palm Beach County. As previously presented, such tax exemptions are authorized by State Statute and like all other property tax exemptions, they require approval of the voters to grant the use of such exemptions locally. If approved, the authority to grant exemptions expires 10 years after the date such authority is approved in an election, but such authority may be renewed for subsequent 10 -year periods if each 10 -year renewal is approved in a referendum called for that purpose. We have been encouraged by the Palm Beach County Business Development Board to adopt such an ordinance, as they are encouraging all communities in Palm Beach County to do so. BDB Chief Executive Officer Kelly Smallridge believes that this is an important tool in every community's economic development tool box, in addition to other local cash incentives which they may have already enacted. Once approved for use by the voters, each individual company exemption is not the subject of a referendum. The City Commission would consider each applicant request on a case by case basis and authorize such exemption by vote of the Commission. In considering any application for an exemption under this ordinance, the City would take into account a variety of factors, including: number of new jobs, the average wage of the new jobs, capital investment, type of business, environmental impact of the business, impact on other local businesses, availability of funds, and any other economic- related characteristics or criteria deemed necessary by the City Commission. There must also be a finding that the business meets the requirements of State Statute http:// itwebapp/ AgendaIntranet /Bluesheet.aspx ?ItemID -63 45 &MeetingID-= 429 2/12/2013 Coversheet s. 196.012(15) or (16). Page 2 of 2. Upon approval of an application for a tax exemption under this ordinance, the City Commission and the applicant will enter into a written tax exemption agreement, which may include performance criteria and must be consistent with the requirements of the Statutes or other applicable laws. The agreement must require the applicant to report at a specific time before the expiration of the exemption the actual number of new, full -time jobs created and their actual average wage. The agreement may provide the City Commission with authority to revoke, in whole or in part, the exemption if the applicant fails to meet the expectations and representations made in the application. Enacting such an ordinance in Delray Beach will give the City one more tool to use in recruiting and retaining businesses. This particular tool is particularly effective when the business in question is acquiring real property or expanding its physical plant. It may be used independently or in concert with other incentives offered by the City through The Delray Beach Economic Development Fund. By taking action now, the City of Delray Beach will have the opportunity to move this forward on the March 12, 2013 ballot. This will place Delray Beach among the leading communities in Palm Beach County to employ the most aggressive economic development programs for recruitment and retention of business and the creation of jobs for its residents. RECOMMENDATION Recommend approval of Ordinance No. 44 -12 on Second Reading and refer the matter to the voters by public referendum on March 12, 2013. http:// itwebapp/ Agendalntranct/ Bluesheet .aspx ?ItemlD=6345 &MeetingID =429 2/12/2013 ORDINANCE NO. 44 -12 AN ORDINANCE OF THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, ADOPTED IN ACCORDANCE WITH SECTION 196.1995, FLORIDA STATUES, CALLING FOR A REFERENDUM TO BE HELD ON MARCH 12, 2013, PROPOSING TO THE ELECTORATE OF THE CITY THAT THE CITY COIvJMTSSION BE AUTHORIZED TO GRANT PROPERTY TAX EXEMPTION TO CERTAIN QUALIFIED BUSINESSES PURSUANT TO SEC. 3, ARTICLE VII OF THE STATE CONSTITUTION; PROVIDING FOR SUBMISSION OF THE PROPOSED BALLOT QUESTION TO THE ELECTORS OF THE CITY, SETTING FORTH THE FORM OF THE QUESTION TO BE VOTED UPON AT SUCH ELECTION; PROVIDING A CONFLICTS CLAUSE, A SEVERABILITY CLAUSE, AND AUTHORITY TO CODIFY; PROVIDING AN EFFECTIVE DATE; AND FOR OTHER PURPOSES.. WHEREAS, the City Commission of the City of Delray Beach has determined that a recognized function of the City is to promote economic development within its jurisdiction by providing financial incentives that will encourage new businesses to relocate within its jurisdiction and existing businesses to expand creating employment opportunities that will benefit the entire community; and WHEREAS, the current economic climate has resulted in a high unemployment rate, which impacts the quality of life for City citizens and the sustainability of local businesses; and WHEREAS, the City Commission desires to offer an Economic Development Ad Valorem (property tax) Tax Exemption for new businesses relocating to the City of Delray Beach and to businesses already located in the City that are expanding in order to foster economic growth and increase employment as allowed by state law; and WHEREAS, the City Commission believes and desires that this issue be submitted for referendum of the City residents in order to determine if the City Commission should be authorized to grant economic ad valorem tax exemptions under Section 3, Article VII of the State Constitution. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF DELRAY BEACH, FLORIDA, AS FOLLOWS: Section 1. That the recitations are set forth above are incorporated herein. Section 2. The referendum question proposed by this Ordinance shall be submitted to the electors of the City of Delray Beach, Florida at the general election to be held on the 12th day of March, 2013, and shall be deemed adopted effective at 12:01 a.m. March 13, 2013, upon receiving an affirmative vote of a majority of the electors voting at the time upon the following question: E6 'MM ! REAL NEWS STARTS HERE "iEP UvI EA-.' OST (551) 820-4343 1 FRIDAY, DECEMBER 21, 2012