Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 22-R128, A Resolution to Approve an Amendment to the Impact Fee Mitigation Agreement between Accel International Holdings, Inc., Accel Florida, LLC, and the City of Port St Lucie.
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Submitted By: Elijah Wooten, Economic Development Administrator, City Manager’s Office.
Strategic Plan Link: The City's Goal of a diverse local economy and employment opportunities.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Elijah Wooten, Economic Development Administrator, City Manager’s Office.
2. Parties: City of Port St. Lucie, Accel International Holdings, Inc., and Accel Florida, LLC.
3. Purpose: Accel International requested an amendment to the Impact Fee Mitigation Agreement extending the new jobs schedule one year, due to construction supply constraints and other impacts caused by the COVID-19 pandemic.
4. New/Renewal/Modified: Modification to the Impact Fee Mitigation Agreement between the City of Port St. Lucie, Accel International Holdings, Inc. and Accel Florida, LLC.
5. Duration: The Impact Fee Mitigation Agreement is for a period of ten years from the date of issuance of the Certificate of Occupancy for Accel International’s manufacturing facility. It is anticipated the Certificate of Occupancy will be issued by the Building Department in the first quarter of 2023 and the duration of the Impact Fee Mitigation Agreement is from 2023 to 2033.
6. Benefits to Port St. Lucie: Benefits include the expansion of Accel International to Port St. Lucie, the creation of 125 high-wage manufacturing jobs and the $43 million capital investment in real property and personal tangible property in the Tradition Center for Commerce located in the City’s jobs corridor.
7. Cost to Port St. Lucie (Annual and Potential): The City paid $168,555 for Accel International’s impact fee mitigation in 2022. Amending the Impact Fee Mitigation Agreement does not include any additional cost to the City.
Presentation Information: Elijah Wooten, Economic Development Administrator, will make a brief 10-minute presentation.
Staff Recommendation: Move that the Council Approve the second amendment To The Impact Fee Mitigation Agreement with Accel International.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the second amendment to the Impact Fee Mitigation Agreement with Accel International.
2. Move that the Council not approve the second amendment to the Impact Fee Mitigation Agreement with Accel International and provide staff direction.
Background: In July 2018, the City Council approved an economic incentive packet including impact fee mitigation, economic development ad valorem tax exemption and expedited site plan review and permitting to attract Accel International’s manufacturing facility to the Tradition Center for Commerce. Due to the COVID-19 pandemic, the company delayed the construction on their new manufacturing facility. In December 2021, the City Council approved the Impact Fee Mitigation Agreement for Accel International. The construction of the manufacturing facility began the first quarter of 2022. It is anticipated the building will receive its Certificate of Occupancy from the Building Department in the first quarter of 2023. Due to the supply constraints in building materials and other impacts to their business caused by the pandemic, Accel International is requesting a one-year extension of their new job creation requirements and the subsequent new jobs schedule.
Issues/Analysis: The global COVID-19 pandemic is still impacting Accel International nationally and in Port St. Lucie. Due to supply constraints in construction materials, the construction of the manufacturing facility was delayed until the first quarter of 2022. Accel International is requesting a one-year extension of the job creation schedule to 2023. The revised jobs schedule is as follows:
• Year 1 2023 - 60 jobs,
• Year 2 2024 - 40 jobs,
• Year 4 2026 - 25 jobs.
Financial Information: The City paid $168,555 for Accel International’s impact fee mitigation in 2021. The amendment of the Impact Fee Mitigation Agreement does not include any additional cost to the City. If the amendment to the Impact Fee Mitigation Agreement is not approved and Accel International fails to meet its job creation performance standard set forth in the agreement for any year during the ten (10) year period, the company will be required to pay the waived impact fee on a pro rata basis for each year or partial year it is out of compliance.
Special Consideration: Due to the economic and supply chain issued caused by the COVID-19 pandemic, the construction of Accel International’s facility was delayed to the first quarter of 2022. It is anticipated the Certificate of Occupancy will be issued by the Building Department in the first quarter of 2023. The company is requesting the job performance and subsequent new jobs schedule be extended one year, with the new jobs reporting to begin December 2023. The duration of the impact fee mitigation agreement is 2023 to 2033.
Location of Project: 11775 SW Tom Mackie Blvd, Port St. Lucie, FL 34987.
Attachments:
1. Resolution.
a. Amendment to Accel International’s Impact Fee Mitigation Agreement.
2. Accel International’s letter requesting COVID-19 modifications.
3. Presentation on TAMCO and Accel.
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: 9237
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.