Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 24-R40, a Resolution of the City Council of Port St. Lucie Approving an Economic Incentive Packet for Project Loop; 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): Project Loop is a global company that employs approximately 8,000 people worldwide. The company will lease 38,000 sf in an existing industrial facility in Port St. Lucie to design and assemble electrical systems and controls for marine pleasure craft. The company will invest $1,067,000 in commercial interior improvements and $820,000 in equipment and machinery. The new manufacturing facility create sixty-one (61) new high wage jobs paying an average wage of $53,880.
Presentation Information: Elijah Wooten and Wes McCurry, Senior Vice President - Economic Development Council of St. Lucie County, will make a ten-minute presentation.
Staff Recommendation: Move that the Council approve the economic incentive resolution for Project Loop.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the economic incentive resolution for Project Loop.
2. Move that the Council not approve the economic incentive resolution and provide staff direction.
Background: Due to the anticipated growth, Project Loop is seeking to relocate and create 61 new jobs. The sixty-one (61) new jobs will be created over a three-year period: forty-nine (49) new jobs in year one, six (6) new jobs in year two, and six (6) new jobs in year three. The average wage of $53,880 is 115% of the average wage for St. Lucie County. The company will invest $1,067,000 in commercial interior improvements and $820,000 in machinery and equipment.
Issues/Analysis: The company is seeking to move forward quickly with their relocation and requesting the City Council’s approval of the economic incentive resolution.
Financial Information: The economic incentive resolution will consist of an economic development ad valorem tax exemption on tangible person property; an impact fee mitigation; and expedited site plan review and permitting. The economic development ad valorem tax exemption on tangible personal property (TPP) is 100% for a five-year period. The impact mitigation is $3,500 per new job created. The company must create and retain the new jobs with an average wage of $53,880 for a ten-year period.
Special Consideration: The following is an overview of economic impact for Project Loop.
New Construction
|
Impact |
Employment |
Labor Income |
Output |
|
Direct |
8.42 |
$409,086.72 |
$1,067,000.00 |
|
Indirect |
1.92 |
$74,490.93 |
$367,862.74 |
|
Induced |
1.44 |
$55,398.48 |
$231.685.08 |
|
Total |
11.78 |
$538,976.12 |
$1,666,547.83 |
New Jobs
|
ImpactEmploymentLabor IncomeOutput |
|
|
|
|
Direct |
61 |
$3,318,126.73 |
$29,423,534.43 |
|
Indirect |
35.16 |
$1,153,343.14 |
$6,549,374.23 |
|
Induced |
12.60 |
$483,942.10 |
$2,024,244.90 |
|
Total |
108.76 |
$4,955,411.96 |
$37,997,153.56 |
Location of Project: Legacy Park at Tradition.
Attachments: Incentive Resolution, Executive Summary and 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: 24177-01.
Legal Sufficiency Review:
Reviewed by Carly Fabien, Deputy City Attorney. Approved as to Legal form and sufficiency by Richard Berrios, Interim City Attorney.