Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 22-R133, A Resolution to Approve the Second Amendment to the Impact Fee Mitigation Agreement between City Electric Supply 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 and City Electric Supply.
3. Purpose: City Electric Supply requested a second amendment to the reporting of the baseline jobs and new jobs schedule in the Impact Fee Mitigation Agreement, due to workforce reductions and business disruptions caused by COVID-19.
4. New/Renewal/Modified: Modification to the Impact Fee Mitigation Agreement between City Electric Supply and the City of Port St Lucie.
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 City Electric Supply’s TAMCO manufacturing facility. The Certificate of Occupancy was issued by the Building Department in December 2019 and the duration of the Impact Fee Mitigation Agreement is from 2019 to 2029.
6. Benefits to Port St. Lucie: The expansion and retention of City Electric Supply, the creation of 50 new jobs and the $38 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 $146,182.44 for City Electric Supply’s impact fee mitigation in 2018. 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 The Impact Fee Mitigation Agreement with City Electric Supply.
Alternate Recommendations:
1. Move that the Council amend the recommendation and move that the Council approve the second amendment to the Impact Fee Mitigation Agreement with City Electric Supply.
2. Move that the Council not approve the second amendment to the Impact Fee Mitigation Agreement with City Electric Supply and provide staff direction.
Background: In 2017, the City successfully retained the expansion and relocation of City Electric Supply’s TAMCO manufacturing and distribution facility to the Tradition Center for Commerce. The economic development incentives offered by Port St Lucie included impact fee mitigation, ad valorem tax exemption, and expedited site plan review and permitting. The company completed the construction of their new manufacturing facility and received their Certificate of Occupancy from the Building Department in December 2019. St Lucie County Property Appraiser’s Office estimated the taxable value of the improvements to real property at $32,900,434 and personal tangible property at $4,976,521 in 2020. At the time of application for the ad valorem tax exemption in January 2020, the company had 210 full time employees. However, due to the COVID-10 pandemic the company reduced its TAMCO workforce in Port St Lucie by 35 employees. The current employment is 196. The company is requesting a second amendment to waive the 210 jobs baseline requirement for 2022 and extending of the reporting of the new jobs to December 2023. Likewise the company is requesting extending the remaining new jobs schedule be extended one year through 2027 rather than 2026.
Issues/Analysis: COVID-19 is still a global pandemic that is impacting City Electric Supply nationally and their TAMCO manufacturing and distribution facility locally in Port St Lucie. Although the advancement in COVID-19 vaccines is encouraging, the company is unable to adequately forecast employment in the short term, until the economy continues its recovery.
Financial Information: The City paid $146,182.44 for City Electric Supply’s impact fee mitigation in 2018. The second 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 City Electric Supply fails to meet its job retention and creation performance standards 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 bases for each year or partial year it is out of compliance.
Special Consideration: Based on the approved first amendment to the Impact Fee Mitigation Agreement, the reporting of the new jobs is December 2022. The City Council also approved the first amendment to the economic development ad valorem tax exemption, which waived the 210 jobs maintenance requirement for 2021 and extended the new jobs reporting to 2022. The company requested a second amendment to both the Impact Fee Mitigation Agreement and ad valorem tax exemption ordinance to extend the reporting of the new job reporting requirement to December 2023.
Location of Project: : TAMCO 11675 S.W. Tom Mackie Boulevard, Port St Lucie, FL 34987.
Attachments:
1. City Electric Supply Letter Requesting COVID-19 modifications.
2. Resolution.
3. Second Amendment to Impact Fee Mitigation Agreement.
4. 12.12.2022 City Council Presentation - Second Amendment to Impact Fee Agreement
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: 9154
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.