Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 24-R01, A Resolution of the City Council of the City of Port St. Lucie Approving an Economic Development Incentive Package for Project Everest; 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 Everest is a multinational distributor of a wide variety of consumer products and is seeking to relocate to Port St. Lucie to establish a distribution and logistics facility.
Presentation Information: A brief presentation will be provided by Elijah Wooten (Economic Development Administrator) and Pete Tesch (President, Economic Development Council of St. Lucie County).
Staff Recommendation: Move that the Council approve the packet of economic incentives for Project Everest’s relocation.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the packet of economic incentives for Project Everest’s relocation.
2. Move that the Council not approve the packet of economic incentives for Project Everest’s relocation and provide staff direction.
Background: Project Everest is a multinational distributor of a wide variety of consumer products and is considering a relocation to Legacy Park at Tradition to open a distribution and logistics facility. The company will build a 595,000 square foot distribution and logistics facility and will invest $55,000,000 in real property and $16,000,000 in tangible personal property. The company will create two hundred sixty-five (265) new jobs over a three (3) year period paying an average wage of $55,350 plus a generous benefit package. The employment schedule consists of two hundred thirty-five (235) new jobs in Year 1; fifteen (15) new jobs in Year 2; and fifteen (15) new jobs in Year 3.
Issues/Analysis: In addition to the detail outlined in the “Background” section above, the company plans a future expansion of 1,060,200 square feet for new distribution and logistics facility operations for which Project Everest is anticipated to apply for a further incentive package prior to the phase two expansion.
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 fee mitigation based on the three hundred fifteen (315) full-time positions that will be created paying 130% 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: The following is a brief summary of the direct, indirect and induced economic benefits from Project Everest’s relocation to Port St. Lucie.
Location of Project: Legacy Park at Tradition located in the Tradition Center for Commerce.
Attachments:
Executive Summary - Project Everest
Economic Packet Resolution for Project Everest
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: 23331-02
Legal Sufficiency Review:
Reviewed by Carly Fabien, Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, Interim City Attorney.