THE OFFICE OF ECONOMIC AND SMALL BUSINESS DEVELOPMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
This item supports the Commission's Value of "Ensuring economic opportunities for Broward’s diverse population and businesses” and the Goal to “Attract and retain all types of business, especially high-wage industries that offer employee benefits, through partnerships with the Alliance, chambers of commerce, colleges and universities, CareerSource, and any other available avenues."
Project Beachfront, currently located in the State of Florida, is a transportation services provider. Project Beachfront employs more than 5,000 globally, a fraction of which are located in Florida. The company is considering expanding its current operations in Broward County resulting in the creation of 225 new high-wage/high-skill jobs and retention of 677. Texas is also under consideration for this project.
If Project Beachfront chooses to expand operations in Broward County, company officials propose renovation of office space in the City of Miramar, Broward County, Florida. The total projected capital investment is $9,060,057, which includes $2,885,400 in personal property costs and $6,174,658 in building renovation costs. The new job average annual wage is $71,789. The average wage amount equals 150% of the County’s average annual wage for new jobs created under the QTI, and QTI High Impact Sector Bonus Incentive Grant Programs. These programs are available for companies on a performance-driven basis that create high wage jobs in targeted, high value-added industries.
As an approved participant in the State of Florida QTI, and QTI High Impact Sector Incentive Programs, Project Beachfront will continue to provide transportation services to meet growing industry demand. As a transportation services company, Project Beachfront is part of a Broward County Targeted Industry group and will enhance the County’s Targeted Industry strategy. Project Beachfront’s business model aligns with the Board of County Commissioner’s vision of “A vibrant economy with a diverse, skilled workforce, in a County offering unique advantages that attract all types of businesses to create equitable, countywide prosperity”, supporting the Board of County Commissioners’ value of “Ensuring economic opportunities for Broward’s diverse population and businesses.”
In an effort to ensure inclusion of Broward County Certified Small Businesses in opportunities that may be created as a result of this project, the Alliance has committed to: 1.) distributing information on the County’s small business program to Project Beachfront; 2.) providing Project Beachfront with information on accessing the County’s small business database; 3.) assessing the needs of Project Beachfront as the project develops and communicating to OESBD any potential opportunities for County small businesses to meet those needs.
The accompanying Tax Revenue/Incentive Pay Out Analysis memorandum and spreadsheet (Exhibit 2) indicates that the anticipated tax revenue generated from the project meets Broward County’s threshold for positive Net Return, based on the creation of 225 new, high-wage/high-skill jobs with an average annual wage of 150% of Broward County’s average annual wage, total capital investment of $9,060,057, and a positive net return of approximately 103.51%. Therefore, approval is recommended.
The City of Miramar Commission approved cash incentives in the amount of $135,000 on August 23, 2017 (Exhibit 3). All recommended incentives are pay for performance incentives.
Based on creation of 225 high-wage/high-skill jobs and the projected capital investment, the total proposed incentive amount (pending final approvals) is as follows:
QTI with High Impact Sector Bonus - State of Florida (80%) $1,080,000
QTI with High Impact Sector Bonus Local Financial Support (10%) - County $ 135,000
QTI High Impact Sector Bonus Local Financial Support (10%) - City $ 135,000
Total Proposed Incentive Amount $1,350,000 |