Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 24-R58, a Resolution of the City Council of the City of Port St. Lucie Approving an Economic Development Incentive Package for Project King; Providing for Conflicts; Providing for Severability; and Providing an Effective Date.
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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): Project King is one of the United States largest grocery retail and food service wholesale and distribution companies. The company is seeking a location for a food distribution headquarters/distribution facility that will serve independent supermarkets, restaurants and local chains. The company is considering locations across Georgia, North Carolina and South Carolina.
Presentation Information: A brief presentation will be provided by Elijah Wooten (Economic Development Administrator) and Wes McCurry (Senior Vice President, Economic Development Council of St. Lucie County).
Staff Recommendation: Move that the Council approve the packet of economic incentives for Project King’s relocation.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the packet of economic incentives for Project King’s relocation.
2. Move that the Council not approve the packet of economic incentives for Project King’s relocation and provide staff direction.
Background: Project King is one of the United States largest grocery retail and food service wholesale and distribution companies. The company is considering a relocation to the Tradition Center for Commerce to open a 160,000 sf headquarters and food distribution facility that will serve independent supermarkets, restaurants and local chains. The company will invest $30,900,000 in real property and $1,800,000 in tangible personal property by December 31, 2030. The company will create one hundred twenty-one (121) new full-time equivalent (FTE) jobs whose aggregate wages will be above 107% of the county average wage. The projected employment schedule consists of ninety-one (91) new jobs in Year 1; nine (9) new jobs in Year 2; eight (8) new jobs in Year 3; eight (8) new jobs in Year 4 and five (5) new jobs in Year 5.
Issues/Analysis: In addition to the details outlined in the “Background” section above, the company plans to invest a total capital expenditure in equipment of $14,950,000 over fourteen (14) years and create a total of two hundred thirty-five (235) new jobs over fourteen years.
Financial Information: The Economic Incentive Packet consists of ad valorem tax exemption, impact fee mitigation, and expedited site plan and permitting. The proposed ad valorem tax exemption on real property and tangible personal property is for a ten (10) year period with the first five years at 100%. The subsequent five years are tiered at 90% in year six; 80% in year seven; 60% in year eight; 40% in year nine and 20% in year ten. The company is eligible to receive up to $3,500 per job in impact and mobility fee mitigation based on the one hundred twenty-one (121) full-time positions that will be created paying 107% of St. Lucie County’s average wage. The impact fees will be paid from the Tradition Economic Development Fund and/or from the Government Finance Corporation’s sales proceeds that are allocated for infrastructure improvements in the Tradition Center for Commerce.
Special Consideration: A summary of the direct, indirect, and induced economic benefits from Project King’s relocation to Port St. Lucie is included in the attached Executive Summary.
Location of Project: Tradition Center for Commerce,
Attachments:
1. Deed
2. Executive Summary - Project King
3. Project King presentation
4. Economic Packet Resolution for Project King
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: 24227-04.
Legal Sufficiency Review:
Reviewed by Carly Fabien, Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.