THE OFFICE OF ECONOMIC AND SMALL BUSINESS DEVELOPMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
This item supports the value of the Board of County Commissioners (“Board”), that is, "Ensuring economic opportunities for Broward’s diverse population and businesses” through the goals to “Attract and retain all types of business, including small businesses and not-for-profits, through provision of effective incentives, technical assistance, and support" and “Increase the economic strength and impact of revenue-generating County enterprises balancing economic, environmental, and community needs.”
Project Swing, currently located in the State of Florida, is an aviation training and service provider. Project Swing employs more than 3,000 people globally, a fraction of which are located in Florida. The company is considering an expansion of its current operations in Broward County, resulting in the creation of 20, and the retention of nine high-wage/high-skill jobs. The States of Texas and Utah are also under consideration for this project.
If Project Swing chooses to expand operations in Broward County (“County”), company officials propose construction of office, aviation training, and service space in Broward County, Florida. The total projected capital investment is $4,500,000, which includes $2,500,000 in equipment costs and $2,000,000 in new building construction costs on airport property owned and operated by the County. Because the proposed project will be an improvement to the County’s airport property, OESBD recommends that the County provide the required 20% QTI Program local match. The new job average annual wage is $55,053. The average wage amount equals 115% of the County’s average annual wage for new jobs created under the QTI Program based on the 2017 wage scale, as the project was initiated in 2017. These programs are available for companies that, on a performance-driven basis, create high wage jobs in targeted, high value-added industries.
As an approved participant in the QTI Program, Project Swing will continue to provide aviation services to meet growing industry demand. As an aviation services company, Project Swing is part of a County Targeted Industry group and will enhance the County’s Targeted Industry strategy. Project Swing’s business model aligns with the Board'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’s 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 Swing; 2) providing Project Swing with information on accessing the County’s small business database; 3) assessing the needs of Project Swing 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 20 new, high-wage/high-skill jobs with an average annual wage of 115% of Broward County’s average annual wage, total capital investment of $4,500,000, and a positive net return of approximately 154.19%. Therefore, approval is recommended.
Based on creation of 20 high-wage/high-skill jobs and the projected capital investment, the total proposed incentive amount (pending final approvals) is as follows:
QTI - State of Florida (80%) $80,000
QTI Local Financial Support (20%) - County $20,000
Total Proposed Incentive Amount $100,000 |