Placement: Proclamations and Special presentations
Action Requested: Motion / Vote
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Hear a Presentation from St. Lucie County on the 2022 Economic Development Ad Valorem Tax Exemption Reauthorization
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Submitted By: Kate Parmelee, Director of Strategic Initiatives & Innovation
Strategic Plan Link: The City's Goal of a diverse local economy and employment opportunities.
Executive Summary (General Business): Staff from the St. Lucie County Board of County Commissioners will brief the City Council on the upcoming 2022 Economic Development Ad Valorem Tax Exemption Reauthorization which will be considered by St. Lucie County voters in the August 2022 Primary Election. Due to the success of the economic development ad valorem tax exemption program over the past ten (10) years, the Board of County Commissioners authorized a referendum that will, if passed, grant authority for the Board to grant economic ad valorem tax exemptions during the ten (10) year period from 2022 to 2032.
Presentation Information: A 10-minute PowerPoint presentation will be provided by staff from the St. Lucie County Board of County Commissioners.
Staff Recommendation: Move that the Council hear the presentation.
Alternate Recommendations:
1. Move that the Council amend the recommendation and hear the presentation.
2. Move that the Council provide staff direction.
Background: Florida law allows the St. Lucie County Board of County Commissioners to hold a referendum to allow the voters to determine whether to authorize the Board to grant new or expanding businesses in St. Lucie County economic development ad valorem tax exemptions. The law provides that any exemption would only remain in effect for ten (10) years and would not apply to school, city or voter-approved taxes. In addition, the exemption, if granted, would only apply to the improvements that are constructed and personal property that is installed by the new or expanding business. The real property (land) owned by the new or expanding business would continue to be assessed and taxed. Voters in St. Lucie County have approved prior referendums granting the economic development ad valorem tax exemptions in 1992, 2002 and 2012. During the ten (10) year period from 2012 to 2022, the County has used the economic development ad valorem tax exemption to attract new businesses such as Builders First Source Truss Company and encourage the expansion of existing businesses such as Maverick Boat Group, Pursuit Boats, Tropicana, and Expert Shutters. Approximately 1,020 new jobs were created by the businesses that utilized the economic development exemption. A list of businesses that received the exemption from 2012 to the present is included in the presentation. Both County staff and Economic Development Council staff have advised that the ad valorem tax exemption is an essential component of the County's economic development strategy.
A referendum will be held on the August 23, 2022, primary election that, if adopted, would grant authority for the Board to grant economic ad valorem tax exemptions during the ten (10) year period from 2022 to 2032.
Issues/Analysis: Voters in the City of Port St. Lucie authorized the Higher-Paying Jobs for PSL Referendum on December 7, 2021, which is limited to businesses located within the City of Port St Lucie. This proposed reauthorization would apply to St. Lucie County.
Financial Information: N/A
Special Consideration: N/A
Location of Project: St. Lucie County
Attachments: 1. Presentation on the Higher-Paying Jobs for SLC August 23 Referendum
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: N/A
Legal Sufficiency Review:
Reviewed by Margaret M. Carland, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.