Placement: Resolutions
Action Requested: Motion / Vote
title
Resolution 24-R56, a Resolution of the City Council of the City of Port St. Lucie approving an Economic Development Impact Mitigation Agreement for Costco Wholesale Corporation, a Washington-based Corporation, and Authorizing the City Manager or his Designee to Execute an Impact Fee Mitigation Agreement by and Among the City of Port St. Lucie and Costco Wholesale Corporation; Providing for Severability; and Providing an Effective Date. body
body
Submitted By: Elijah Wooten, Economic Development Administrator.
Strategic Plan Link: The City's Goal of a diverse local economy and employment opportunities.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Carly Fabien, Deputy City Attorney.
2. Parties: City of Port St. Lucie and Costco Wholesale Corporation.
3. Purpose: The City approved an Impact Fee Mitigation Agreement to attract Costco’s distribution depot to Port St. Lucie.
4. New/Renewal/Modified: New agreement.
5. Duration: The attached agreement is for a term of ten (10) years after the issuance of a Certificate of Occupancy.
6. Benefits to Port St. Lucie: The attraction of Costco’s distribution depot will create two hundred sixty-five (265) high wage jobs and secures a $71 million capital investment in new construction, machinery and equipment for a property located at 13077 SW Sansone, Sr. Blvd., Port St. Lucie, FL.
7. Cost to Port St. Lucie (Annual and Potential): The company is entitled to an Impact Fee Waiver up to $927,500 in Port St. Lucie Mobility, Parks, Public Building, and Law Enforcement Impact Fees for the project. The total impact and mobility fees are $301,379.54. The impact fees will be paid from the Tradition Economic Development Fund and from the sales proceeds from lands owned by the Governmental Finance Corporation.
Presentation Information: Staff will provide a brief five-minute presentation.
Staff Recommendation: Move that the Council approve the Economic Development Impact Fee Mitigation Agreement between the City of Port St. Lucie and Costco Wholesale Corporation.
Alternate Recommendations:
1. Move that the Council amend the recommendation and Approve the Economic Development Impact Fee Mitigation Agreement between the City of Port St. Lucie and Costco Wholesale Corporation.
2. Move that the Council not approve the Economic Development Impact Fee Mitigation Agreement and provide staff direction.
Background: In 2024, the City Council approved an Economic Development Incentive Packet to attract the expansion of Costco’s Distribution Depot to a property located at 13077 SW Sansone Sr. Blvd., Port St. Lucie, FL. The expansion includes a capital investment of $55 million in new construction to build a 622,685-sf distribution depot on a 192-acre parcel in Legacy Park at Tradition. The company will also invest $16 million in machinery and equipment. The company will create 265 new full-time jobs paying an average salary of $55,350 plus benefits per employee.
Issues/Analysis: The company is purchasing 192-acre parcel and constructing a 622,685-sf distribution depot located at 13077 SW Sansone Sr. Blvd, Port St. Lucie, FL.
Financial Information: The company is eligible to receive up to $3,500 per job in mobility and impact fee mitigation based on the creation of two hundred sixty-five (265) new jobs paying an average wage of $55,350 plus benefits. The total amount of the mobility and impact fees that will be mitigated is up to $927,500. The total impact and mobility fee for the 622,685-sf distribution facility is $301,379.54. The mobility and impact fees will be paid from the Tradition Economic Development Fund or the sales proceeds from lands sold by the Governmental Finance Corporation.
Special Consideration: The executive summary of the direct, indirect, and induced economic benefits from Costco’s expansion is attached as back-up to the agenda memo.
Location of Project: 13077 SW Sansone Sr. Blvd, Port St. Lucie, FL.
Attachments:
1. Warranty Deed Recorded,
2. Mobility and Impact Fee Mitigation Application,
3. Costco’s Impact Fee Mitigation Resolution,
4. Impact Fee Mitigation Agreement (Exhibit A to Resolution),
5. Parcel boundary Costco legal description (Exhibit B to Agreement),
6. Project Everest Executive Summary,
7. Costco Impact Fee Mitigation Agreement Presentation,
8. Project Everest Impact and Mobility Fee.
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: 24159-01
Legal Sufficiency Review:
Reviewed by Carly Fabien, Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, Interim City Attorney.