THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Board's Value of "[E]nsuring economic opportunities for all people and businesses in Broward" and the Goal to "[I]ncrease the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs."
The Broward County Board of County Commissioners is the Grantee of Foreign-Trade Zone (FTZ) No. 25 as authorized by the Foreign-Trade Zones Board (FTZB). The FTZB designates the boundaries where FTZ activity may take place under Broward County’s FTZ Grant of Authority. The current general-purpose boundaries of FTZ No. 25 encompass approximately 388 acres, of which 169 acres are in active FTZ use.
Florida Power & Light (FPL) owns certain land within Port Everglades located at 3100 SE 14th Avenue, Fort Lauderdale, Florida, a portion of which is an 8.9-acre parcel that contains two petroleum storage tanks: Nos. 901 and 902 (See Exhibit 2). The 8.9-acre parcel and related pipeline system that connects to Port Everglades Berth 13 was previously designated for FTZ use and leased by TransMontaigne Product Services, Inc. (TransMontaigne) as a part of their FTZ Subzone No. 25C petroleum storage facility. This 8.9-acre parcel has been de-activated by U. S. Customs and Border Protection (CBP) and FPL has terminated its lease with TransMontaigne (See Exhibit 1).
Motiva Enterprises LLC (Motiva), a Florida corporation, has been an FTZ Subzone operator since 2012, when it began operating Subzone No. 25D, located within Port Everglades. Motiva needs additional petroleum storage and distribution space, as facilities at their current location are being fully utilized for either FTZ or other non-FTZ maritime/industrial activities. FPL has agreed to lease Motiva the same 8.9-acre parcel previously leased and used by Transmontaigne, as a continuing, non-contiguous zone petroleum storage facility site, with FTZ benefits. However, approval of the re-designation of the parcel to become part of Subzone No. 25D must first be obtained from the FTZB for Motiva's project to move forward.
Whenever a need for FTZ benefits requires a change to the current boundaries, the Grantee may request that the FTZB modify the designated boundaries of the FTZ to accommodate the need for the property. When the need is immediate, a Minor Boundary Modification can be quickly approved by the FTZB. Therefore, Port Everglades Department staff is seeking re-designation of the site through an Application for Minor Boundary Modification (See Exhibit 3). CBP will provide a signed concurrence letter after the Board approves the County's letter to the FTZB; a draft of that letter is attached (See Exhibit 4).
The FTZB’s approval will make it possible for Motiva, the Subzone No. 25D Operator, to receive and ship more fuel through the Port’s facilities while creating jobs and investments in local infrastructure and equipment. Since this expanded FTZ activity will take place inside Port Everglades, the FTZ use will be authorized as a modification to Motiva's existing FTZ Subzone No. 25D Operator Agreement, and will continue to generate revenue in the form of Subzone Operator Fees provided for in the current FTZ Tariff.
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