Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 25-R17, a Resolution of the City Council of the City of Port St. Lucie Approving an Economic Development Incentive Package for Costco Wholesale Depot Phase Two; 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): Costco Wholesale is a multinational distributor of a wide variety of consumer products and is seeking to build the second phase of their Costco Wholesale Depot in Port St. Lucie.
Presentation Information: A brief presentation will be provided by Elijah Wooten (Economic Development Administrator) and Kadian Knight (Director of Business Development, Economic Development Council of St. Lucie County).
Staff Recommendation: Move that the Council approve the resolution for the economic incentive package for Costco Wholesale Depot Phase Two.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the resolution for the economic incentive package for Costco Wholesale Depot Phase Two.
2. Move that the Council not approve the resolution for the economic incentive package for Costco Wholesale Depot Phase Two and provide staff direction.
Background: Costco Wholesale is a multinational distributor of a wide variety of consumer products and is currently constructing their Costco Wholesale Depot in Legacy Park at Tradition. The company intends to accelerate and expand into Phase Two of their development and will build a 1,060,490 square foot distribution and logistics facility, thereby investing $93,950,000 in real property and $15,000,000 in tangible personal property by December 31, 2030. The company will create one hundred fifteen (115) new full-time equivalent jobs over a three (3) year period paying an average wage of $55,350 plus a generous benefit package. The employment schedule consists of eighty-five (85) 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 Phase Two detail outlined herein, the company is currently constructing Phase One of the project, which consists of a 622,685 square foot distribution facility. The company will create two hundred sixty-five (265) new full-time equivalent jobs over a three-year period paying an average wage of $55,350 plus benefits. The City Council approved the incentive package resolution for Phase One on January 8, 2024.
Financial Information: The economic incentive package 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 three (3) years (Years 1-3) at 60%, the next three (3) years (Years 4-6) at 40%, and the remaining four (4) years (Years 7-10) at 20%. The company is eligible to receive up to $3,500 per job in impact fee mitigation based on the one hundred fifteen (115) full-time positions that will be created paying 107% 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 executive summary of the direct, indirect, and induced economic benefits from the Costco Wholesale Depot Phase Two is included as attachment.
Location of Project: Legacy Park at Tradition located in the Tradition Center for Commerce. The property is located north of Hegener Drive, south of the future Marshall Parkway alignment, east of the Anthony F. Sansone Sr. Roadway alignment, and west of Interstate 95.
Attachments:
1. Resolution - Costco Wholesale Depot Phase Two Economic Incentive Package
2. EDC Executive Summary - Costco Wholesale Depot Phase Two
3. Costco Wholesale Depot Phase Two - 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: 25090-05
Legal Sufficiency Review: Reviewed by Carly Fabien, Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, City Attorney.