Placement: Second Reading of Ordinances
Action Requested: Motion / Vote
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Ordinance 24-34, an Amendment to Ordinance 22-70 of the City of Port St. Lucie, Florida, Amending the Name of FedEx Ground Package System, Inc. (“FedEx Ground”) to Federal Express Corporation (“FedEx Corp.”) due to a Company Merger. Providing an Ad Economic Development Ad Valorem Tax Exemption for the Property Located at 13701 SW Sansone Sr. Blvd., Port St. Lucie, Florida, to Encourage Economic Development within the City for the Expansion of an Existing Port St. Lucie Business.
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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.
Executive Summary (General Business): FedEx Ground Package System, Inc. submitted a Notice of Merger. The company requests the Economic Development Ad Valorem Exemption Ordinance be amended to grant the remaining years of the ad valorem tax exemption to Federal Express Corporation under the same terms and conditions as the ordinance to be effective as of the June 1, 2024, the merger date.
Presentation Information: A brief ten (10) minute presentation will be made by Elijah Wooten, Economic Development Administrator.
Staff Recommendation: Move that the Council approve the amendment to Ordinance 22-70, changing the company name from FedEx Ground Package System, Inc. to Federal Express Corporation and granting the remaining years of the ad valorem tax exemption to Federal Express Corporation under the same terms and conditions as the ordinance.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the amendment to Ordinance 22-70 changing the company name from FedEx Ground Package Systems, Inc. to Federal Express Corporation.
2. Move that the Council not approve the amendment to Ordinance 22-70 and provide staff direction.
Background: FedEx Ground Package System, Inc. (FedEx Ground), a subsidiary of FedEx Corporation, and Federal Express Corporation (FedEx Corp.), expect to consummate a transaction by which FedEx Ground will merge with and into Federal Express Corp. In accordance with the merger, all assets and liabilities of FedEx Ground will be transferred by operation of law to, and all its rights and obligations will become those of FedEx Corp. FedEx Corp. and FedEx Ground expect to effectuate the merger as of June 1, 2024 (the merger date).
Issues/Analysis: FedEx Corp. and FedEx Ground are requesting a new ordinance be adopted to grant the remaining years of the ad valorem tax exemption to FedEx Corp. under the same terms and conditions as Ordinance 22-70, to be effective as of the merger date to reflect the internal reorganization previously referenced.
Financial Information: N/A.
Special Consideration: N/A.
Location of Project: 13701 SW Sansone Sr. Blvd, Port St. Lucie, FL.
Attachments:
1. Amended Ordinance 24-34.
2. Notice of merger,
3. FedEx Ground Package System, Inc. - DE - Merger Document
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: 24129-03,
Legal Sufficiency Review:
Reviewed by Carly Fabien, Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, Interim City Attorney.