Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 20-R131, A Resolution Of The City Council Of The City Of Port St Lucie Approving A Packet Of Economic Incentives For Project Denny; Providing For Conflicts; Providing For Severability; And Providing An Effective Date.
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Submitted By: Elijah Wooten, Business Navigator
Strategic Plan Link: The City's Goal of a diverse local economy and employment opportunities.
Executive Summary (General Business): Project Denny is a new to Port St Lucie company seeking to establish a regional sortation facility. A Fortune 500 company, Project Denny’s expansion is designed to efficiently add package capacity to better serve commercial customers. The proposed facility would service the South Florida market and help relieve constraints to their distribution hubs by providing a regional injection point for efficient and quicker distribution to customers.
Presentation Information: A brief presentation will be provided by Elijah Wooten (Business Navigator) and Pete Tesch (President, St Lucie Economic Development Council)
Staff Recommendation: Move that the Council approve the packet of economic incentives for Project Denny’s expansion.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the packet of economic incentives for Project Denny’s expansion.
2. Move that the Council not approve the packet of economic incentives for Project Denny’s expansion and provide staff direction.
Background: Project Denny’s expansion includes a capital investment of $44 million in real property and tangible personal property, the creation of 40 new full-time employees at over 120% of St Lucie County’s average wage and over 450 part-time employees providing added employment opportunities to meet St Lucie County’s diverse community and employment needs.
Issues/Analysis: The logistics and transportation industry is expanding due to an increase in online purchases in retail and other products. In order to relieve constraints at their existing distribution hubs, Project Denny will acquire 22 acres in Legacy Park in the Tradition Center for Commerce and construct a 245,000 sortation facility. The company has an aggressive development and construction schedule in order to meet the holiday demand in 2021.
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-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 fee mitigation based on the forty full time positions that will be created paying 120% of the St Lucie County’s average wage. The total amount of impact fees that will be mitigated is up to $140,000. The impact fees will be paid from the Tradition Economic Development Fund and/or from the Government Financial Corporation’s sales proceeds that are allocated for infrastructure improvements for Hegener Drive in the Tradition Center for Commerce.
Special Consideration: The following is a brief summary of the direct, indirect and induced economic benefits from Project Denny’s expansion in Port St. Lucie.
New Construction
|
Impact |
Employment |
Labor Income |
Output |
|
Direct |
187.18 |
$7.944 M |
$15 M |
|
Indirect |
30.56 |
$1.2 M |
$4.596 M |
|
Induced |
35.05 |
$1.25 M |
$4.58 M |
|
Total |
252.79 |
$10.4 M |
$24.18 M |
New Jobs
|
ImpactEmploymentLabor IncomeOutput |
|
|
|
|
Direct |
40 |
$1.96 M |
$1.96 M |
|
Indirect |
11.06 |
$342 K |
$1.676 M |
|
Induced |
8.32 |
$301 K |
$1.10 M |
|
Total |
59.38 |
$2.60 M |
$4.74 M |
Location of Project: Tradition Center for Commerce in Southern Grove
Attachments: Executive Summary - Project Denny
Economic Development Ad Valorem Tax Exemption Incentive 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: 5685
Legal Sufficiency Review:
Reviewed by Elizabeth L. Hertz, Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.