Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 21-R17, A resolution of the City Council of the City of Port St Lucie approving a packet of economic incentives for Project Ash; providing for conflicts; providing for severability; and providing an effective date.
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Submitted By: Elijah Wooten, Business Navigator, City Manager’s Office
Strategic Plan Link: The City's Goal of a diverse local economy and employment opportunities.
Executive Summary (General Business): Project Ash was founded in 2004 and is headquartered in Israel. The company specializes in the design, manufacturing and marketing of transport products such as bodies for all truck types, tip trailers, hoist trailers, flatbed semi-trailers, containers and lowboys for transporting heavy equipment.
Presentation Information: A brief presentation will be provided by Elijah Wooten (Business Navigator) 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 Ash’s expansion.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the packet of economic incentives for Project Ash’s expansion.
2. Move that the Council not approve the packet of economic incentives for Project Ash’s expansion and provide staff direction.
Background: Project Ash’s expansion includes the construction of a 43,000 square foot manufacturing facility (Phase 1) with a future expansion to 60,000 square feet in Phase 2. The company has selected Midway Business Park and the capital investment includes $2,000,000 in construction and $4,948,000 in machinery and equipment. The company will create 55 new jobs over a two-year period with an average wage of $20.47 including benefits which equates to 107% of St Lucie County’s average wage. Twenty-five new jobs will created by the end of 2023 and 30 jobs will be created by the end of 2024.
Issues/Analysis: Project Ash was established in 2004 in Israel and has become a leading manufacturer of chassis for vehicles and trailers. The company will fabricate chassis for all truck types, tip trailers, hoist trailers, flatbed semi-trailers, containers and lowboys for transporting heavy equipment. The equipment will be distributed via Port Operators initially in Florida and Georgia and ultimately throughout the United States.
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 six-year period with the first year at 100%. The subsequent five years are tiered at 90% in year two; 80% in year three; 60% in year four; 40% in year five and 20% in year six. The company is eligible to receive $3,500 per job in impact fee mitigation based on the 55 full time positions that will be created paying 107% of St Lucie County’s average wage. The total amount of impact fees that will be mitigated is up to $192,500. Prior to the issuance of a building permit the company will submit an impact fee mitigation application and sign the impact fee mitigation agreement to be presented to the City Council for approval. The impact fee mitigation agreement will require Project Ash to submit the company’s quarterly report (UCT-6) and all other documentation to demonstrate that the job creation and salary level commitments were achieved. Provisions for repayment or suspension of payments for nonperformance will be clearly established in the impact fee mitigation agreement. The impact fees will be paid from the general revenue fund as the project is located outside of Southern Grove.
Special Consideration: The Economic Development Council of St Lucie County provided an executive summary of the direct, indirect and induced economic benefits from Project Ash’s expansion in Port St Lucie which is attached to this agenda item as backup.
Location of Project: Midway Business Park
Attachments: Executive Summary - Project Ash; Economic Development 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: N/A
Legal Sufficiency Review:
Reviewed by Elizabeth L. Hertz, Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.