Placement: Second Reading of Ordinances / Public Hearing
Action Requested: Motion / Vote
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Ordinance 22-110, Public Hearing, Approving the Second Amendment of the Economic Development Ad Valorem Tax Exception Ordinance, Ordinance 20-26, for City Electric Supply.
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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): Due to COVID-19 City Electric Supply reduced their workforce by 35 employees from their initial baseline of 210 employees. The company has begun the rehiring process and currently has 196 employees. City Electric Supply is requesting the City Council approve a second amendment to the Economic Development Ad Valorem Tax Exemption Ordinance, Ordinance 20-26, to (i) waive the 210 baseline maintenance requirement for 2022; and (ii) extend the time frames otherwise provided in the first amendment of the Ordinance for the creation of 50 new jobs for a period of one year.
Presentation Information: Elijah Wooten, Economic Development Administrator, will make a brief presentation.
Staff Recommendation: Move that the Council approve the second amendment of the Economic Development Ad Valorem Tax Exemption Ordinance for City Electric Supply.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the second amendment of the Economic Development Ad Valorem Tax Exemption Ordinance for City Electric Supply.
2. Move that the Council not approve the second amendment the Economic Development Ad Valorem Tax Exemption Ordinance for City Electric Supply and provide staff direction.
Background: City Electric Supply received its certificate of occupancy in December 2019 for their TAMCO manufacturing and distribution facility in the Tradition Center for Commerce. The company submitted their Economic Development Ad Valorem Tax Exemption Application to the St Lucie County Property Appraiser’s Office in January 2020. At the time of submission, the existing employment was 210 employees. However, due to COVID-19, the company reduced their workforce by 35 employees. The company has added back positions and now has 196 employees. They are requesting the City Council approve the second amendment the Economic Development Ad Valorem Tax Exemption Ordinance to: (i) amend the ordinance to waive the 210 baseline maintenance requirement for 2022; and (ii) extend the time frames otherwise provided by the first amendment of the ordinance for the creation of 50 new jobs for a period of one year - so that the first job creation milestone would be applicable for calendar year 2023 (rather than 2022), with the remaining job creations schedule being extended by one year through 2027 (rather than 2026).
Issues/Analysis: City Electric Supply was unable to qualify for Federal, State or Local CARES Act funding to retain their existing workforce, due to the company’s size. The closing of retail and commercial locations due to COVID-19 is also adversely impacting a segment of TAMCO target market. The 2022 Omicron COVID-19 variant continued to adversely impact TAMCO’s business operations with supply chain issues, and changes to customer demand profiles. The company will continue to add jobs as the economy continues to rebound, but the rate of re-employment will be dictated by the economy and the Country’s economic recovery.
Financial Information: N/A
Special Consideration: N/A
Location of Project: TAMCO - 11675 SW Tom Mackie Blvd., Port St Lucie, FL 34987.
Attachments:
1. TAMCO Letter of Request to toll the ad valorem tax exemption.
2. Proposed Ordinance (second amendment).
3. Ord. 20-26 (original ordinance).
4. Ord. 20-85 (first amendment).
5. PowerPoint 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: 9155.
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.