Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 22-R55, A Resolution of the City of Port St. Lucie Approving the Impact Fee Mitigation Agreement for Cheney Bros., Inc.
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Submitted By: Elijah Wooten, Economic Development Administrator.
Strategic Plan Link: The City's Goal of a diverse local economy and employment opportunities.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Deputy City Attorney Elizabeth Hertz.
2. Parties: City of Port St. Lucie Cheney Bros., Inc.
3. Purpose: The City approved an impact fee mitigation agreement to attract Cheney Bros. Inc.’s food wholesale and distribution facility to Port St. Lucie.
4. New/Renewal/Modified: New agreement.
5. Duration: The attached agreement is for a term of ten (10) years after the issuance of a Certificate of Occupancy.
6. Benefits to Port St. Lucie: The attraction of Cheney Bros., Inc. food wholesale and distribution facility will create 275 jobs and secures a $72 million capital investment in new construction, machinery and equipment in Legacy Distribution Park at Tradition located in the City’s jobs corridor.
7. Cost to Port St. Lucie (Annual and Potential): The Company is entitled to an impact fee waiver up to $962,500 in Port St. Lucie Mobility, Parks, Public Buildings, and Law Enforcement, impact fees for the project. The impact fees will be paid from the Tradition Economic Development Fund and/or from the Governmental Finance Corporation’s sales proceeds that are allocated for infrastructure improvements in the Tradition Center for Commerce.
Presentation Information: Staff will make a brief five minute presentation.
Staff Recommendation: Move that the Council approve the economic development impact fee mitigation agreement between the City of Port St. Lucie and Cheney Bros., Inc.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the economic development impact fee mitigation agreement.
2. Move that the Council not approve the economic development impact fee mitigation agreement and provide staff direction.
Background: In 2021 the City Council approved a packet of economic development incentives to attract the expansion of Cheney Bros., Inc. to Legacy Distribution Park at Tradition located in the Tradition Center for Commerce. Established in 1925, Cheney Bros., Inc. is a fourth generation, privately held food wholesaler and distributor. The employs 2,900 employees and is located in Florida, Georgia, North Carolina and South Carolina. The expansion includes a capital investment of $65 million in new construction and $7 million in machinery and equipment. The company will create 275 jobs over a three year period paying an average wage of $63,000 plus benefits. The Company will create 175 jobs in year one; 50 jobs in year two; and 50 jobs in year three.
Issues/Analysis: The Company purchased 53 acres and will construct a 365,000 square foot distribution facility in Legacy Distribution Park at Tradition.
Financial Information: The Company is eligible to receive up to $3,500 per job in mobility and impact fee mitigation based on the creation of 275 new jobs paying an average wage of $63,000 plus benefits. The total amount of mobility and impact fees that will be mitigated is up to $962,500. The mobility and impact fees will be paid from the Tradition Economic Development Fund and/or from the Governmental Finance Corporation’s sales proceeds that are allocated for infrastructure improvements in the Tradition Center for Commerce.
Special Consideration: The executive summary of the direct, indirect and induced economic benefits from Cheney Bros., Inc.’s expansion is attached as back-up to the agenda memo.
Location of Project: Legacy Distribution Park at Tradition.
Attachments:
1. Impact fee mitigation application.
2. Resolution.
3. Impact fee mitigation agreement (Exhibit A to Resolution).
4. Code provision (Exhibit A to Agreement).
5. Parcel boundary legal description (Exhibit B to Agreement).
6. Executive Summary
7. Site Plan
NOTE: All of the listed items in the “Attachment” section above are in the custody of the City Clerk. Any item(s) not provided in City Council packets are available upon request from the City Clerk.
Internal Reference Number: 8045
Legal Sufficiency Review:
Reviewed by Elizabeth L. Hertz, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.