HomeMy WebLinkAboutR-2018-124 City Consenting To Project Red's Request FL Dept Of Economic Opportunity (DEO) Initiate The One-Time Option To Extend Job Creation Table,Tax Refund, Job Maintenance Not To Exceed $34,000.00 RESOLUTION NO. 2018-124
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA BEACH,
FLORIDA, CONSENTING TO PROJECT RED'S REQUEST TO THE FLORIDA
DEPARTMENT OF ECONOMIC OPPORTUNITY (DEO) TO INITIATE THE ONE-
TIME OPTION TO EXTEND THE JOB CREATION TABLE, THE TAX REFUND
SCHEDULE AND THE JOB MAINTENANCE PERIOD FOR A QUALIFIED
TARGET INDUSTRY FOR AN INDUSTRY TAX REFUND PURSUANT TO
SECTION 288.106, FLORIDA STATUTES; PROVIDING FOR LOCAL FINANCIAL
SUPPORT IN THE FORM OF CASH NOT TO EXCEED THIRTY FOUR
THOUSAND TWO HUNDRED DOLLARS ($34,200.00); AUTHORIZING THE CITY
MANAGER TO PROVIDE A LETTER OF CONSENT TO DEO; PROVIDING FOR
SEVERABILITY; PROVIDING FOR CONFLICTS; FURTHER, PROVIDING FOR
AN EFFECTIVE DATE.
WHEREAS, the Florida Department of Economic Opportunity (DEO), by Section
288.106, Florida Statutes, developed the Qualified Target Industry Tax Refund as a statewide
tool for Florida communities to encourage quality job growth in targeted high value-added
businesses; and
WHEREAS, under the Qualified Target Industry Tax Refund Program, companies may
receive refunds on the taxes it pays including corporate income, sales, ad valorem, intangible
personal property, insurance premium, communications services, and certain other taxes; and
WHEREAS, no more than 25 percent of the total refund approved may be taken in any
single fiscal year and a qualified business may receive no more than $1.5 million in tax refunds
in a single fiscal year; and
WHEREAS, in 2015, Project Red, which is a local transportation logistics business
known as Total Quality Logistics, LLC, received designation from the Florida DEO as a
Qualified Target Industry business as defined by Section 288.106, Florida Statutes; and
WHEREAS, as a stipulation of approval from the Florida DEO, Project Red agreed to
provide 60 jobs at 20 jobs per phase (20 jobs by December 31, 2017, 20 more jobs by December
31, 2018, and 20 more jobs by December 31, 2019) at their local facility in the City of Dania
Beach; in return, the State would provide 80 percent of the annual tax return and the City and
Broward County would split the remaining 20 percent balance of the annual tax return over a
three (3) year period; and
WHEREAS, on February 11, 2015, the City Commission of the City of Dania Beach
("City Commission") adopted Resolution No. 2015-003, which acknowledged local financial
support of 10 percent of the total tax refund as required by Section 288.106, Florida Statutes in
the form of cash for a total of Thirty Six Thousand Dollars ($36,000.00) to be paid over the three
(3) year tax refund period; and
WHEREAS, on March 1, 2018, Project Red requested a one-time push option for the
Florida DEO to extend the job creation schedule, the tax refund schedule, the job maintenance
period, and the expiration date by twelve (12) months; and
WHEREAS, on April 10, 2018, the Florida DEO notified the City of Project Red's
request to initiate the one-time push option, which requires the City to provide a letter of support
for Project Red and reduces the scheduled tax refund by 5 percent from Thirty Six Thousand
Dollars ($36,000.00)to Thirty Four Thousand Two Hundred Dollars ($34,200.00); and
WHEREAS, the City Commission desires to continue to support Project Red with the
local financial support as required by Section 288.106, Florida Statutes in the form of cash; and
WHEREAS, City staff recommends approval of the proposed Thirty Four Thousand
Two Hundred Dollars ($34,200.00) to be paid to the Florida Department of Economic
Opportunity in annual increments of Eleven Thousand Four Hundred Dollars ($11,400.00) as tax
incentive payments for Project Red's relocation and operation in the City of Dania Beach as a
Qualified Target Industry defined by Section 288.106, Florida Statutes; and
WHEREAS,payments shall be made to DEO pending completion of an audit by DEO of
Total Quality Logistics, LLC and submission of an invoice to the City of Dania Beach;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE
CITY OF DANIA BEACH,FLORIDA THAT:
Section 1. That the foregoing "WHEREAS" clauses are ratified and confirmed as
being true and correct, and they are made a part of and incorporated into this Resolution by this
reference.
Section 2. That the City Commission agrees that a cash commitment of local
financial support by the City of Dania Beach for the Qualified Target Industry Tax Refund
Program as defined by Section 288.106, Florida Statutes for Project Red exists in the amount of
Thirty Four Thousand Two Hundred ($34,200.00) to be paid over a three (3) year period in
accordance with the guidelines set forth by the Florida Department of Economic Opportunity.
These funds are intended to represent the local financial support pursuant to Section 288.106,
Florida Statutes.
Section 3. That all resolutions or parts of resolutions in conflict with this Resolution
shall be repealed to the extent of such conflict.
Section 4. That this Resolution shall take effect immediately upon City Commission
adoption.
2 RESOLUTION#2018-124
PASSED and ADOPTED on September 11, 2018.
ATTEST: OQN,A
� y
THOMAS SCHNEIDER, CM AMARA JA S
CITY CLERK MAYOR
9e��SH�1�P
APPROVED AS TO FOW AND CORRECTNESS:
THOMAS J. NS V v
CITY ATTORNE.
3 RESOLUTION#2018-124