Placement: Resolutions
Action Requested: Motion / Vote
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Resolution 24-R33, a Resolution of the City Council of the City of Port St. Lucie Approving an Economic Development Impact Fee Mitigation for LactaLogics 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 LactaLogics; 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.
Summary Brief (Agreements/Contracts only)
1. Prepared by: Carly Fabien - Deputy City Attorney, City Attorney’s Office.
2. Parties: City of Port St. Lucie and LactaLogics.
3. Purpose: The City approved an impact fee mitigation agreement to attract LactaLogics’s manufacturing facility 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 LactaLogics manufacturing facility will create sixty jobs and secures a $58 million capital investment in renovation, machinery and equipment for a property located at 8883 S. U.S. Highway 1, Port St. Lucie, FL.
7. Cost to Port St. Lucie (Annual and Potential): The Company is entitled to an impact fee waiver up to $210,000 in Port St. Lucie Mobility, Parks, Public Building and Law Enforcement, impact fees for the project. The impact fees will be paid from the General Fund.
Presentation Information: Staff will make 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 LactaLogics.
Alternate Recommendations:
1. Move that the Council amend the recommendation and approve the economic development impact fee mitigation agreement.
2. Move that the Council not approve the economic development impact fee mitigation agreement and provide staff direction.
Background: In 2023, the City Council approved an economic development incentive packet to attract the expansion of LactaLogics manufacturing facility to a property located at 8883 S US Highway 1, Port St. Lucie, FL. The expansion includes a capital investment of $24 million to renovate the 60,000 square foot manufacturing facility and $34 million in machinery and equipment. The company will create sixty (60) new full-time jobs paying an average salary of $49,000 plus benefits per employee.
Issues/Analysis: The company is purchasing a 60,000 square foot property located at 8883 S US Highway 1, 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 sixty (60) new jobs paying an average wage of $49,000 plus benefits. The total amount of mobility and impact fees that will be mitigated is up to $210,000. The impact and mobility fees are $17,284. The mobility and impact fees will be paid from the General Fund.
Special Consideration: The executive summary of the direct, indirect, and induced economic benefits from LactaLogics’ expansion is attached as back-up to the agenda memo.
Location of Project: 8883 S US Highway 1, Port St. Lucie, FL.
Attachments:
1. Warranty Deed Recorded.
2. Mobility and Impact Fee Mitigation Application.
3. LactaLogics Impact Fee Mitigation Resolution.
4. 2024-05-08 Impact fee mitigation agreement (Exhibit A to Resolution).
5. Parcel boundary LactaLogics legal description (Exhibit B to Agreement).
6. Project Gala Executive Summary.
7. LactaLogics - Impact Fee Mitigation Agreement Presentation.
8. P11-003-A2 Project Gala (LactaLogics) Mobility Fees.
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: 10225.
Legal Sufficiency Review:
Reviewed by Carly Fabien, Deputy City Attorney. Approved as to legal form and sufficiency by Rich Berrios, Interim City Attorney.