HomeMy WebLinkAboutR-2019-128 The City, in Support of the Dania Beach Community Redevelopment Agency Resolution No. 2019-CRA-020; Recommending Approval of Project Magic as a Qualified Target Industry Business RESOLUTION NO. 2019-128
A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF DANIA
BEACH, FLORIDA, IN SUPPORT OF THE DANIA BEACH COMMUNITY
REDEVELOPMENT AGENCY RESOLUTION NO. 2019-CRA-020;
RECOMMENDING APPROVAL OF PROJECT MAGIC AS A QUALIFIED
TARGET INDUSTRY BUSINESS PURSUANT TO SECTION 288.106, FLORIDA
STATUTES; PROVIDING FOR SEVERABILITY; PROVIDING FOR
CONFLICTS; FURTHER, PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS,the purpose of the Qualified Target Industry("QTI")Tax Refund Program is to
retain and expand job opportunities within the City of Dania Beach and part of the program is to
provide certain tax refund benefits to targeted industries; and
WHEREAS,Project Magic is a transportation and logistics company considering relocating
and expanding its operations into the Community Redevelopment Area of the City of Dania Beach,
Florida and anticipates creating approximately two hundred twenty-five(225)new jobs at an average
annual salary of Seventy Eight Thousand Eight Hundred Fifty-Four Dollars($78,854.00),which is
one hundred fifty percent(150%) of the Broward County average annual wage; and
WHEREAS, at its September 10, 2019 meeting, the Dania Beach Community
Redevelopment Agency(the"CRA")recommended approval of Project Magic as a Qualified Target
Industry Business under the Qualified Target Industry Tax Refund Program and as a Qualified Target
Industry High-Impact Sector Business under the High-Impact Sector Tax Refund Bonus Program
with a Brownfield Redevelopment Bonus Refund by Resolution No. 2019-CRA-020; and
WHEERAS,Resolution No.2019-CRA-020 is attached as Exhibit"A"and made a part of
and incorporated into this Resolution by this reference; and
WHEREAS,on September 24,2019,the Broward County Board of County Commissioners
recommended approval of Project Magic as a Qualified Target Industry Business and as a Qualified
Target Industry High-Impact Sector Business with a Brownfield Redevelopment Bonus Refund by
Resolution No. 2019-426; and
WHEREAS, Resolution No. 2019-426 is attached as Exhibit `B" and made a part of and
incorporated into this Resolution by this reference; and
WHEREAS,the above referenced Resolutions specify the commitments of local financial
support for the QTI and High-Impact Sector Bonus programs in accordance with Section 288.106
and Section 288.108, Florida Statutes, respectively; and
WHEREAS,in review of the approved resolutions by both the CRA and Broward County,
the Department of Economic Opportunity(DEO)has requested a resolution of support by the City
Commission;
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE
CITY OF DANIA BEACH,FLORIDA:
Section 1. That the foregoing"Whereas"clauses are ratified and confirmed as being true
and correct, and they are made a specific part of and incorporated into this Resolution by this
reference.
Section 2. That the City Commission is in support of the Dania Beach Community
Redevelopment Agency("CRA")Resolution-2019-CRA-020, attached as Exhibit"A"and made a
part of and incorporated into this Resolution by this reference.
Section 3. That the City Commission recommends that Project Magic be approved as a
Qualified Target Industry Business pursuant to Section 288.106,Florida Statutes, and as a Qualified
Target Industry High-Impact Sector Business pursuant to Section 288.108, Florida Statutes.
Section 4. That the City Commission further acknowledges the necessary commitment of
local financial support for the Qualified Target Industry Business for the Qualified Target Industry
Tax Refund Program and the High-Impact Sector Tax Refund Bonus Program by the CRA in the
amount of One Hundred Thirty Five Thousand Dollars ($135,000.00) in accordance with CRA
Resolution No. 2019-CRA-020.
Section 5. That the CRA's commitment of local financial support will be made available
in accordance with the guidelines set forth by the Florida Department of Economic Opportunity
required by Section 288.106, Florida Statutes and is conditional upon the application meeting all
statutory requirements of the program and obtaining all necessary approvals from,without limitation,
the State of Florida, Broward County, and the CRA.
Section 6. That this Resolution does not make any additional commitments regarding this
matter beyond the CRA's commitments described in CRA Resolution No. 2019-CRA-020.
Section 7. That this Resolution shall be submitted to the Florida Department of
Economic Opportunity.
Section 8. That all resolutions or parts of resolutions in conflict with this Resolution are
repealed to the extent of such conflict.
2 RESOLUTION#2019-128
Section 9. That this Resolution shall be in force and take effect immediately upon
passage and adoption.
PASSED AND ADOPTED on October 7, 2019.
ATTEST:
THOMAS SCHNEIDER, CMC ��A�e oP ORI L LEN
CITY CLERK ISHEO MAYOR
APPROVED A O F RM AND CORRECTNESS
1
T MA J. A S O
CITY A T EY
3 RESOLUTION#2019-128
RESOLUTION NO.2019-CRA-020
A RESOLUTION OF THE BOARD OF DIRECTORS OF THE DANIA
BEACH COMMUNITY REDEVELOPMENT AGENCY ("CRA") OF THE
CITY OF DANIA BEACH, FLORIDA, RECOMMENDING PROJECT MAGIC
BE APPROVED AS A QUALIFIED TARGET INDUSTRY BUSINESS
PURSUANT TO FLORIDA STATUTES, SECTION 288.106; AFFIRMING
THE SITE OF THIS PROJECT IS IN A DESIGNATED BROWNFIELD AREA;
PROVIDING FOR LOCAL FINANCIAL SUPPORT IN THE FORM OF CASH
IN THE AMOUNT OF ONE HUNDRED THIRTY FIVE THOUSAND
DOLLARS ($135,000.00) FOR THE QUALIFIED TARGET INDUSTRY TAX
REFUND WITH HIGH-IMPACT SECTOR BONUS AS THE CRA'S LOCAL
MATCH FOR FISCAL YEARS 2023 THROUGH 2O30; REQUESTING A
WAIVER OF LOCAL FINANCIAL SUPPORT FOR THE BROWNFIELD
BONUS PORTION; PROVIDING FOR SEVERABILITY; PROVIDING FOR
CONFLICTS; AND FURTHER, PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, the corporation referred to as Project Magic, for the purpose of this
Resolution, has requested that the Dania Beach Community Redevelopment Agency ("CRA")
maintain the confidentiality of its name and business information pursuant to Florida Statutes,
Section 288.075;and
WHEREAS, Project Magic, the business under consideration, is a transportation and
logistics company considering relocating and expanding its operations into the Community
Redevelopment Area of the City of Dania Beach, Florida to include its corporate headquarters
and operations facility at Dania Pointe,which is a 102-acre mixed-use development site; and
WHEREAS, Project Magic has been identified as a Qualified Target Industry Business
and, moreover, falls within one of the high-impact sectors designated under Section 288.108,
Florida Statutes, and is eligible to apply for the Qualified Target Industry Tax Refund with a
High-Impact Sector Bonus,pursuant to Florida Statutes, Section 288.106; and
WHEREAS, Project Magic intends to locate in the Dania Beach Community
Redevelopment Area at Dania Pointe, which is a 102-acre mixed-use development site between
Interstate 95 to the west, Bryan Road to the east and Stirling Road to the south;and
WHEREAS, this site is in a Designated Brownfield Area within the City of Dania
Beach, specifically known as the Dania Beach Brownfield Area ID BF060801000; and
WHEREAS, as a result of this location, Project Magic is eligible to apply for the
Qualified Target Industry Tax Refund with a Brownfield Bonus; pursuant to Section 288.107,
Florida Statutes;and
WHEREAS, Project Magic, as the Applicant, is eligible for the local financial support
exemption option of the Brownfield Redevelopment Bonus Refund Program authorized under
Section 288.106,Florida Statutes,and desires to exercise that option; and
WHEREAS, the Board of Directors of the Dania Beach Community Redevelopment
Agency hereby acknowledges that local financial support of ten percent (10%) of the total tax
refund is required under the provisions of Florida Statutes, Section 288.106, governing the
State's Qualified Target Industry Tax Refund Program and will contribute local financial support
in the form of cash for the Qualified Targeted Industry Tax Refund with High-Impact Sector
Bonus;
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF
THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF DANIA
BEACH,FLORIDA:
Section 1. That the foregoing"Whereas" clauses are ratified and confirmed to be true
and correct and they are made a part of and are incorporated into this Resolution by reference.
Section 2. That the CRA Board recommends Project Magic to be approved as a
Qualified Target Industry Business and a High-Impact Sector Business, both pursuant to Florida
Statutes, Section 288.108.
Section 3. That the Dania Beach Community Redevelopment Agency requests a
waiver of the local financial support required for the Brownfield Bonus, as authorized under the
Qualified Target Industry Refund Program,pursuant to Florida Statutes, Section 288.106(2)(1).
Section 4. That the CRA Board recommends and approves the necessary
commitment of local financial support for Project Magic as a Qualified Target Industry Business
under the Qualified Target Industry Tax Refund Program and the High-Impact Sector Tax
Refund Bonus Program in the total amount of One Hundred Thirty Five Thousand Dollars
($135,000.00), for fiscal years 2023 through 2030, per the attached Exhibit "A" which is
incorporated and made a part of this Resolution by this reference, subject to the condition that
Broward County commit for the same period to provide a match of local financial support for a
2 RESOLUTION#2019-CRA-020
Qualified Target Industry in the amount of One Hundred Thirty Five Thousand Dollars
($135,000.00).
Section 5. The CRA's commitment for local financial support will be made available
in accordance with the guidelines set forth by the Florida Department of Economic Opportunity
with the stipulation that these funds are intended to represent local financial support pursuant to
Section 288.106,Florida Statutes.
Section 6. In furtherance of Project Magic's request for approval,the CRA Board has
determined that the basis of this proposed project's private sector wage commitment calculation
is one hundred fifty percent(150%)of the Broward County average annual wage.
Section 7. That all resolutions or parts of resolutions in conflict with this Resolution
shall be repealed to the extent of such conflict.
Section 8. That this Resolution shall be in full force and take effect immediately
upon passage and adoption.
PASSED and ADOPTED on September 10,2019.
ATTEST:
THOMAS SCHNEIDER, CMC O L EN
CRA CLERK CHAIR
APPROVED AS TO VRMAND CORRECTNESS:
DANIAOLAACH
TH 4A ANSBR
C A RNEY
3 RESOLUTION#2019-CRA-020
QTl Payout Schedule Project Magic
In u2
Number of Jobs 225 Calculation
QTI Award Amount $ 6,000
Total QT1 Refund $1,350,000
112/31120221 12131/2023112/311202411213112025112/31/202611213112027112/31/202811213112029112131/20301 Total
Jobs 1 251 50 1 50 1 50 1 50 1 - I - 225i
12131/2022 12/3112023 12131/2024 12131/2025 12/31/2026 1213112027 1213112028 12/3112029 1213112030 Total
Phase 1 $ 37,500 $ 37,500 $ 37,500 $ 37,500 $ 150,000
Phase 11 $ 75,000 $ 75,000 $ 75,000 $ 76,000 $ 300,000
Phase III $ 75,000 $ 75,000 $ 75,000 $ 76,000 -$ 300,000
Phase IV $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 300,000
Phase V $ 75,000 $ 75,000 $ 75,000 $ 75,000 $ 300,000
Total Refund Payment $ $ 37;500 1$ 112,500 .$187,500 $262,500, $300,000 ,$225,000 ,$1504000 . $ 75,000 . $ 1,350,000
State Contribution(80%) $ $ 30.000 $ 90,000 $ 150,000 $210,000 $240,000 $ 180,000 $120,000 $ 60,000 $ 1,080,000
Local Contribution(20%) $ 7,500 $ 22,500 $ 37,500 $ 52,500 $ 60,000 $ 45,000 $ 30,000 $ 15,000 $ 270,000
Local Contribution(10%) $ 3,760 $ 11,250 $ 18,750 $ 26,250 $ 30,000 $ 22,500 $ 15,000 $ 7,500 $ 135,000
Note:Refund payments are offset from the job creation by one year because the refund payment is made to the company after July 1 (the beginning of the state's
fiscal year),the year following the job creation.For example,for jobs created 12131115,the refund payment would be made in July 2016.
Minimum Program Requirements(288,106,Florida Statutes)
Criterias Met Unmet
Proposed annual average wage is at least 115%of local area or Statewide wage X
Creation of at least ten(10)jobs X
Expansion of a least ten percent 110%)net increase in jobs X
Targeted industry as approved by the legislature X
Project Characteristics and Waivers(288,106, Florida Statutes)
CrIterias Yes No
150%Average Wa2e Bonus $4.000 per job X
200%Average Wage Bonus
High Impact Sector Bonus (HQ) $2,000 per job X
Port Bonus
Local Financial Support Bonus I
Brownfield Area X
Enterprise Area
Rural County
Average Wage Waiver Requested
Local Financial Support Waiver Requested
Ad Valorem Tax Abatement OR Land Discount Used as Match
Exhibit 1:Project Magic Resolution
Page 1 of 5
RESOLUTION NO. 2019-
1
A RESOLUTION OF THE BOARD OF COUNTY
2 COMMISSIONERS OF BROWARD COUNTY, FLORIDA,
RELATING TO ECONOMIC DEVELOPMENT;
3 RECOMMENDING APPROVAL OF THE APPLICATION OF
THE CORPORATION REFERRED TO AS PROJECT
4 MAGIC, PURSUANT TO SECTION 288.075, FLORIDA
STATUTES, AS A QUALIFIED TARGET INDUSTRY
5 BUSINESS APPLICANT PURSUANT TO
SECTION 288.106, FLORIDA STATUTES, WITH A
6 BROWNFIELD REDVELOPMENT BONUS REFUND
PURSUANT TO SECTION 288.107, FLORIDA STATUTES,
7 AND AS A QUALIFIED TARGET INDUSTRY HIGH-IMPACT
SECTOR BUSINESS APPLICANT PURSUANT TO
8 SECTION 288.108, FLORIDA STATUTES; REQUESTING A
WAIVER OF LOCAL FINANCIAL SUPPORT FOR THE
9 BROWNFIELD REDEVELOPMENT BONUS PORTION OF
THE QUALIFIED TARGET INDUSTRY TAX REFUND;
10 PROVIDING FOR A COMMITMENT TO APPROPRIATE
THE TOTAL SUM OF ONE HUNDRED THIRTY-FIVE
11 THOUSAND DOLLARS ($135,000) AS BROWARD
COUNTY'S LOCAL MATCH FOR THE QUALIFIED
12 TARGET INDUSTRY TAX REFUND AND THE QUALIFIED
TARGET INDUSTRY HIGH-IMPACT SECTOR BONUS TAX
13 REFUND PROGRAMS FOR FISCAL YEARS 2022
THROUGH 2O30; RECOMMENDING APPROVAL OF
14 PROJECT MAGIC FOR A BROWARD COUNTY DIRECT
CASH/JOB CREATION INCENTIVE GRANT PURSUANT
15 TO SECTION 9%-52, BROWARD COUNTY CODE OF
ORDINANCES; PROVIDING FOR A COMMITMENT TO
16 APPROPRIATE THE TOTAL SUM OF TWO HUNDRED
TWENTY-FIVE THOUSAND DOLLARS ($225,000) FOR A
17 DIRECT CASH/JOB CREATION INCENTIVE GRANT FOR
FISCAL YEARS 2022 THROUGH 2O30; AND PROVIDING
18 FOR SEVERABILITY AND AN EFFECTIVE DATE.
19
20
21 WHEREAS, the corporation referred to as Project Magic has requested that
22 Broward County maintain the confidentiality of its name and business information
23 pursuant to Section 288.075, Florida Statutes;
24
Exhibit 1:Project Magic Resolution
Page 2 of 5
1 WHEREAS, Project Magic, a transportation company currently located in Florida,
2 is considering relocating its operations to the City of Dania Beach, Florida;
3 WHEREAS, Project Magic is requesting certification as a "Qualified Target
4 Industry Business" under the State of Florida Qualified Target Industry Tax Refund
5 Program ("QTI") pursuant to Section 288.106, Florida Statutes, and the Qualified Target
6 Industry High-Impact Sector Bonus Tax Refund Program ("QTI High-Impact Sector
7 Bonus Tax Refund") pursuant to Section 288.108, Florida Statutes;
8 WHEREAS, Project Magic is requesting local financial support from the Broward
9 County Board of County Commissioners ('Board") for its QTI/QTI High-Impact Sector
10 Bonus Tax Refund Program application;
11 WHEREAS, Project Magic intends to relocate to a site in a Designated
12 Brownfield Area within the City of Dania Beach, Florida, and is therefore eligible to apply
13 for the QTI with a Brownfield Redevelopment Bonus Refund pursuant to
14 Section 288.107, Florida Statutes;
15 WHEREAS, Broward County is required to provide financial support to any QTI
16 applicant whose project is located within a brownfield area pursuant to Section 288.107,
17 Florida Statutes;
18 WHEREAS, QTI applicants have the option to forego local financial support for
19 the Brownfield Redevelopment Bonus Refund Program pursuant to
20 Section 288.106(2)(k), Florida Statutes ("Local Financial Support Exemption Option");
21 WHEREAS, QTI applicants that exercise the Local Financial Support Exemption
22 Option receive no more than eighty percent of the total tax refunds allowed under the
23 Brownfield Redevelopment Bonus Refund Program;
24
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Exhibit 1:Project Magic Resolution
Page 3 of 5
1 WHEREAS, the State of Florida Department of Economic Opportunity has
2 decided to fund the entire amount of the Brownfield Redevelopment Bonus Refund for
3 this project once Project Magic exercises its Local Financial Support Exemption Option
4 and Broward County requests a waiver from the State of Florida of its required local
5 financial support for this Brownfield Redevelopment Bonus Refund pursuant to
6 Section 288.106(2)(k), Florida Statutes;
7 WHEREAS, Project Magic therefore desires to exercise its Local Financial
8 Support Exemption Option and recommends that the Board request a waiver from the
9 State of Florida Department of Economic Opportunity for its required local financial
10 support for the Brownfield Redevelopment Bonus Refund; and
11 WHEREAS, Project Magic is requesting a Direct Cash/Job Creation Incentive
12 Grant from Broward County pursuant to Section 9Y2-52, Broward County Code of
13 Ordinances, NOW, THEREFORE,
14
15 BE IT RESOLVED BY THE BOARD OF COUNTY COMMISSIONERS OF
16 BROWARD COUNTY, FLORIDA:
17
18 Section 1. The Board hereby recommends that Project Magic be approved as
19 a Qualified Target Industry Business pursuant to Section 288.106, Florida Statutes, and
20 as a QTI High-Impact Sector Business pursuant to Section 288.108, Florida Statutes.
21 Section 2. The Board hereby recommends and approves the necessary
22 commitment of local financial support for Project Magic as a Qualified Target Industry
23 Business under the QTI Program and as a Qualified Target Industry Business under the
24 QTI High-Impact Sector Tax Refund Bonus Program, in the total amount of One
- 3 -
Exhibit 1:Project Magic Resolution
Page 4 of 5
1 Hundred Thirty-five Thousand Dollars ($135,000) for the period of Fiscal Years 2022
2 through 2030, subject to the condition precedent that the City of Dania Beach, Florida,
3 also commit for the same period to appropriate the total required local financial QTI
4 match of One Hundred Thirty-five Thousand Dollars ($135,000) for the project. Broward
5 County's commitment for local financial support will be paid to the Florida Economic
6 Development Trust Fund with the stipulation that these funds are intended to represent
7 the "local financial support" required by Section 288.106, Florida Statutes.
8 Section 3. The Board acknowledges that Project Magic intends to exercise its
9 Local Financial Support Exemption Option pursuant to Section 288.106(2)(k), Florida
10 Statutes, and therefore requests a waiver, by the State of Florida Department of
11 Economic Opportunity, of Broward County's required local financial support for Project
12 Magic's Brownfield Redevelopment Bonus Refund.
13 Section 4. The Board hereby also approves a Direct Cash/Job Creation
14 Incentive Grant in the total amount of Two Hundred Twenty-five Thousand Dollars
15 ($225,000) for the period of Fiscal Years 2022 through 2030, through Broward County's
16 Direct Cash/Job Creation Incentive Program, subject to the condition precedent that the
17 City of Dania Beach, Florida, also commit for the same period to appropriate a direct
18 cash incentive of Two Hundred Twenty-five Thousand Dollars ($225,000) for the
19 project.
20 Section 5. In furtherance of Project Magic's request for approval, the Board
21 has determined that the basis of this proposed project's private sector wage
22 commitment calculation shall be one hundred fifteen percent (115%) of the Broward
23 County average annual wage.
24
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Exhibit 1:Project Magic Resolution
Page 5 of 5
1 Section 6. The amounts authorized herein shall constitute Broward County's
2 total commitment to this project for participation in the QTI, QTI High-Impact Sector
3 Bonus Tax Refund, and Direct Cash/Job Creation Incentive Programs.
4 Section 7. Severability.
5 If any portion of this Resolution is determined by any court to be invalid, the
6 invalid portion will be stricken, and such striking will not affect the validity of the
7 remainder of this Resolution. If any court determines that this Resolution, in whole or in
8 part, cannot be legally applied to any individual, group, entity, property, or circumstance,
9 such determination will not affect the applicability of this Resolution to any other
10 individual, group, entity, property, or circumstance.
11 Section 8. Effective Date.
12 This Resolution is effective upon adoption.
13
14 ADOPTED this day of 12019.
15
16
Approved as to form and legal sufficiency:
17 Andrew J. Meyers, County Attorney
18
19 By /s/Tricia Q. Brissett 09/09/19
Tricia D. Brissett (date)
20 Assistant County Attorney
21
By Is/Rene Q. Harrod 09/09/19
22 Rene D. Harrod (date)
23 TDB/hb Deputy County Attorney
24 Project Magic Reso.doc
09/09/19
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