Placement: Resolutions
Action Requested: Motion / Vote
title
Resolution 22-R31, A Resolution Amending Resolution 21-R65, a Packet of Economic Development Incentives for Cheney Brothers, 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): Cheney Brothers, Inc. is a new to Port St. Lucie company seeking to establish a regional wholesale and distribution facility. The proposed facility would service the food industry in Florida.
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 revised packet of economic incentives for Cheney Brothers, Inc.’s expansion.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the revised packet of economic development incentives for Cheney Brothers, Inc.’s expansion.
2. Move that the Council not approve the revised packet of economic incentives for Cheney Brothers, Inc.’s expansion and provide staff direction.
Background: Founded in 1925, Cheney Brothers, Inc. is a 4th generation privately held company with annual revenues of $2 billion. The company has 2,900 employees and has 13 facilities totaling 2 million square feet in the Southeast United States. They distribute food products domestically and export to 120 countries internationally.
Issues/Analysis: The food industry was impacted by the pandemic during 2020. With the increase in vaccinations, public gatherings at restaurants, sporting events and theme parks have increased, which is a positive improvement for food distribution companies. Cheney Brothers, Inc. will acquire a 53-acre parcel within Legacy Distribution Park at Tradition and build a 365,000 square foot food wholesale and distribution facility. The company will invest $65 million in new construction and $7 million in machinery and equipment. Cheney Brothers, Inc. will create 275 new full-time jobs paying an average wage of $63,000 plus benefits.
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 real property and tangible personal property is for a ten-year period with the first five years at 100%. The subsequent five years are tiered at 90% in year 6; 80% in year 7; 60% in year 8; 40% in year 9 and 20% in year ten. The company is eligible to receive up to $3,500 per job in impact and mobility fee mitigation based on 275 full time positions that will be created paying 120% of St. Lucie County’s average wage. The impact and mobility fees will be paid from the Tradition Economic Development Fund and/or from the Governmental 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 Cheney Brothers, Inc.’s expansion to Port St. Lucie.
New Construction (One Time Impact)
|
Impact |
Employment |
Labor Income |
Output |
|
Direct |
591.64 |
$24.587M |
$66.962M |
|
Indirect |
114.88 |
$4.824M |
$17.404M |
|
Induced |
105.39 |
$3.946M |
$13.931M |
|
Total |
811.91 |
$33.357M |
$98.29M |
New Jobs (Recurring Annual Impact)
|
ImpactEmploymentLabor IncomeOutput |
|
|
|
|
Direct |
275 |
$17.325M |
$47.189M |
|
Indirect |
146.16 |
$5.084M |
$15.416M |
|
Induced |
79.52 |
$2.879M |
$10.185M |
|
Total |
500.68 |
$25.289M |
$72.79M |
Location of Project: Legacy Distribution Park at Tradition.
Attachments:
1. Project Bullet Revised Executive Summary.
2. Resolution.
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: 7805
Legal Sufficiency Review:
Reviewed by Ella M. Gilbert, Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.