Placement: Resolutions
Action Requested: Motion / Vote
title
Resolution 23-R132, A Resolution to Approve a Second Amendment to the Impact Fee Mitigation Agreement Between Accel International Holdings, Inc., Accel Florida, LLC, and the City of Port St Lucie.
body
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 Accel International Holdings, Inc., and Acel Florida, LLC.
3. Purpose: Accel International requested a second amendment to the Impact Fee Mitigation Agreement to modify their employment schedule.
4. New/Renewal/Modified: Modification to the Impact Fee Mitigation Agreement between the City of Port St. Lucie, Accel International Holdings, Inc. and Accel Florida, LLC.
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 Accel International’s manufacturing facility. The Building Department issued the certificate of occupancy in March 2023 and the duration of the impact fee mitigation agreement is from 2023 to 2033.
6. Benefits to Port St. Lucie: The expansion of Accel International to Port St. Lucie, the creation of one hundred twenty-five (125) high-wage manufacturing jobs and the $43 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 $168,555 for Accel International’s impact fee mitigation in 2022. 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 ten (10) minute presentation.
Staff Recommendation: Move that the Board approve the second amendment to the Impact Fee Mitigation Agreement with Accel International.
Alternate Recommendations:
1. Move that the Board amend the recommendation and approve the second amendment to the Impact Fee Mitigation Agreement with Accel International.
2. Move that the Board not approve the second amendment to the Impact Fee Mitigation Agreement with Accel International and provide staff direction.
Background: In July 2018, the City Council approved an economic incentive packet including impact fee mitigation, economic development ad valorem tax exemption, and expedited site plan review and permitting to attract Accel International’s manufacturing facility to the Tradition Center for Commerce. Due to the COVID-19 pandemic, the company delayed the construction on their new manufacturing facility. In December 2021, the City Council approved the Impact Fee Mitigation Agreement for Accel International. The construction of the manufacturing facility began the first quarter of 2022. The Building Department issued the certificate of occupancy March 2023. Due to the delay in shipping of the machinery for the manufacturing facility, the company is requesting a second amendment to the impact fee mitigation agreement to modify its employment schedule.
Issues/Analysis: The global COVID-19 pandemic is still impacting Accel International nationally and in Port St. Lucie. Due to supply constraints in construction materials, the construction of the manufacturing facility was delayed until the first quarter of 2022. Accel International experienced a delay in receiving the equipment for the manufacturing facility, which delayed the delivery of equipment to the fourth quarter of 2023. Accel International is requesting a modification to its employment schedule. The revised jobs schedule is as follows:
• Year 1 2023 - 60 3 jobs
• Year 2 2024 - 40 60 jobs
• Year 3 2025 - 0 40 jobs
• Year 4 2026 - 25 22 jobs
Financial Information: The City paid $168,555 for Accel International’s impact fee mitigation in 2021. The 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 Accel International fails to meet its job creation performance standard 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 basis for each year or partial year it is out of compliance.
Special Consideration: The Building Department issued the certificate of occupancy in March 2023. The company experienced a delay in the shipping of the equipment for the manufacturing facility and began receiving delivery of the equipment in the fourth quarter of 2023. The company is requesting a modification of its employment schedule for the one hundred twenty-five (125) high wage jobs that will be created.
Location of Project: 11775 SW Tom Mackie Blvd, Port St. Lucie, FL 34987.
Attachments:
1. Accel International’s letter requesting COVID-19 modifications,
2. Resolution,
3. Second amendment to Accel International’s Impact Fee Mitigation 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: 23319-17
Legal Sufficiency Review:
Reviewed by Carly Fabien, Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, Interim City Attorney.