Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 23-R30, A Resolution of the City Council of Port St. Lucie Approving an Economic Development Incentives Package for LactaLogics, Inc.; Providing for Conflicts; Providing for Severability; and Providing for 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): LactaLogics is seeking to establish a human breast milk processing facility in Port St. Lucie. The new processing facility will service the United States.
Presentation Information: Wes McCurry, Senior Vice President - Economic Development Council of St. Lucie County, will make a brief presentation.
Staff Recommendation: Move that the Council approve the packet of economic development incentives for LactaLogics’ expansion.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the packet of economic development incentives for LactaLogics’ expansion.
2. Move that the Council not approve the packet of economic development incentives for LactaLogics’ expansion and provide staff direction.
Background: LactaLogics combines the latest in milk processing technology with holistic donor care to increase access to the life-saving benefits of breast milk. The company is positioned as an affordable, high-volume supplier of human-milk fortifiers and donor milk, improving food safety and security in Florida for the United States.
Issues/Analysis: LactaLogics intends to purchase a 60,000 sq. ft. facility. The company will invest $24 million in renovations and $33 million in machinery and equipment. The company will create 60 new jobs paying an average wage of $49,000 plus benefits, which is 107% of St. Lucie County’s average wage.
Financial Information: The economic development incentive packet consists of ad valorem tax exemption, impact fee mitigation and expedited site plan and permitting. The proposed ad valorem tax exemption on tangible personal property is for a ten-year period with the first five years at 100%; year six at 90%; year seven at 80%; year eight at 60%; year nine at 40% and year ten at 20%. The company is eligible to receive up to $3,500 per job in impact and mobility fee mitigation based on 60 full time positions that will be created paying 107% of St. Lucie County’s average wage. The impact and mobility fees will be paid from the general fund.
Special Consideration: The following is a brief summary of the direct, indirect and induced economic benefits from LactaLogics’ expansion in Port St. Lucie.
New Construction (One Time Impact)
|
Impact |
Employment |
Labor Income |
Output |
|
Direct |
105.03 |
$4,819,138.44 |
$24,230,501.00 |
|
Indirect |
56.15 |
$2,281,307.14 |
$9,384,247.18 |
|
Induced |
22.49 |
$892,601.95 |
$3,446,777.57 |
|
Total |
183.67 |
$7,993,047.54 |
$37,061,525.75 |
New Jobs (Recurring Impact)
|
ImpactEmploymentLabor IncomeOutput |
|
|
|
|
Direct |
60 |
$5,276,758.48 |
$39,837,086.21 |
|
Indirect |
52.29 |
$1,966,756.28 |
$9,876,869.09 |
|
Induced |
23.84 |
$944,929.63 |
$3,653,253.11 |
|
Total |
136.12 |
$8,188,444.39 |
$53,367,206.41 |
Location of Project: 8883 US Highway 1, Port St. Lucie, FL
Attachments:
1. Resolution,
2. Executive Summary,
3. Presentation.
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: 9773
Legal Sufficiency Review:
Reviewed by Ella M. Gilbert, Senior Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.