Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 21-R134, A Resolution to Approve a Ten-Year Ad Valorem Tax Exemption for Fed Ex Facility
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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): Approve a ten-year ad valorem tax exemption for fed ex facility.
Presentation Information: Questions will be answered upon request.
Staff Recommendation: Move that the Council approve the Resolution.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the Resolution.
2. Move that the Council not approve the Resolution.
Background: The City Council requested the authority to grant an economic development ad valorem tax exemption pursuant to section 196.1995, Florida Statutes. The request was approved via referendum for a period of ten (10) years and an ordinance outlining the criteria and process for obtaining the ad valorem tax exemption was adopted in December of 2010. A referendum election is being held throughout the City of Port St. Lucie on December 7, 2021, which will be held in conjunction with the City of Port St. Lucie’s previously scheduled special election for the purpose of submitting to the City’s electors a referendum question as to whether to authorize the City Council to grant economic incentive development ad valorem exemptions to qualifying businesses for another ten (10) years. Section 196.1995(5), Florida Statutes, states the following with regard to the ability to qualify for the exemption, “to qualify for this exemption, the business’s improvements to real property must be made or the tangible personal property must be added or increased after approval by motion or resolution of the local governing body, subject to ordinance adoption or on or after the day the ordinance is adopted.”
On December 7, 2020, the City Council approved a package of economic incentives for Project Denny (FedEx Ground Package System, Inc./Lessee and PSL Industrial Owner, LLC/Lessor located on Lot 1 of Southern Grove Plat No. 33 as recorded in Plat Book 9, Page 32 of the Public Records of St. Lucie County, Florida ) (“FedEx Facility”) through Resolution 20-R131. The package included the following incentive:
The City of Port St. Lucie Ad-Valorem Tax Exemption: The Council authorizes City staff to assist Project Denny in the application for a 10-year ad valorem tax exemption valued at 100% for the first five years and for the last five years on a declining percentage schedule for the remaining period (90%, 80%, 60%, 40%, 20%) as described in the City’s Economic Development Ad Valorem Tax Exemption program. The Council also authorizes staff to prepare all documents necessary to the Resolution 20-R131 application process, including a proposed ordinance providing an ad valorem tax exemption for Project Denny consistent with the City’s Economic Development Ad Valorem Tax Exemption program.
Issues/Analysis: Consequently, the City desires to formerly approve a ten-year ad valorem tax exemption valued at 100% for the first five years and for the last five years on a declining percentage schedule for the remaining period (90%, 80%, 60%, 40%, 20%) as described in the City’s Economic Development Ad Valorem Tax Exemption program (Chapter 115 of the City Code), subject to the following conditions:
A. Adoption of an ordinance allowing economic development ad valorem tax exemptions pursuant to section 196.1995, Florida Statutes, following the December 7, 2021 referendum election.
B. Adoption of an ordinance approving the exemption and compliance with the procedure and criteria currently outlined in section 115.06 of the City’s Code.
Financial Information: Decrease in tax revenue.
Special Consideration: N/A
Location of Project: Lot 1 of Southern Grove Plat No. 33 as recorded in Plat Book 9, Page 32 of the Public Records of St. Lucie County, Florida
Attachments:
1. Proposed 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: 7263
Legal Sufficiency Review:
Reviewed by Elizabeth L. Hertz, Deputy City Attorney. Approved as to Legal form and sufficiency by James D. Stokes, City Attorney.