THE OFFICE OF ECONOMIC AND SMALL BUSINESS DEVELOPMENT RECOMMENDS APPROVAL.
Project 762, currently located outside of the State of Florida, is a firearms manufacturer and distributor. The company currently employs approximately 21 people globally. The company is considering relocation of its international headquarters and establishment of a manufacturing and distribution operation to Pompano Beach, Florida. The company is also considering Tennessee as a location for the project.
If Project 762 chooses to relocate and establish operations in Pompano Beach, company officials propose to occupy a 40,000 square foot manufacturing and distribution facility. The project will create 54 new high skill/high wage jobs and an estimated capital investment of $3,087,000. The new job average annual wage is $51,266. The average wage amount equals 115% of the County’s average annual wage for new jobs created under the State of Florida Qualified Targeted Industry Tax Refund Program (QTI). This program is 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 QTI Program, Project 762 will continue to provide firearms products to meet growing market demand. Project 762’s business model aligns with the Board of County Commissioner’s vision: Unlimited Economic Opportunities, which supports “an economically successful, multi-faceted international community with high paying jobs and a well-educated, skilled, and motivated workforce.”
Although the accompanying Tax Revenue/Incentive Pay Out Analysis memorandum and spreadsheet (Exhibit 2) indicates that the anticipated tax revenue generated from the project does not conform to the County’s threshold for positive Net Return, approval is recommended for the following reasons:
1.) Although the County’s unemployment rate for April 2015 was 4.8%, the lowest of any urban county in the State of Florida, it still remains unacceptably high compared to the County’s 2007 pre-recession unemployment rate of 3%;
2.) In April 2015, there were 47,544 unemployed persons in Broward County, which still remains unacceptably high compared to the County’s pre-recession level of 29,587 in 2007.
3.) This project generates 54 new jobs paying 115% of the County’s average wage;
4.) The Alliance has provided an IMPLAN economic impact analysis on the project and indicates that in addition to the 54 direct, new, high skill/high wage jobs that the project will create, the project will also result in creation of 22 new indirect jobs. The analysis also projects that the overall regional economic impact of Project 762 will be $20.2 million over the project period.
5.) Project 762 has verbally agreed to work with CareerSource Broward to fill vacancies created by the project and to utilize Certified County Business Enterprises where possible for renovation and expansion in their existing location.
The above reasons support the conclusion that the proposed expansion activity will make a positive contribution to the County’s economy.
On May 12, 2015, the City of Pompano Beach Commission approved the municipal portion of Local Financial Support for the QTI Program for Project 762 in the amount of $16,200. All recommended incentives are pay for performance incentives.
Based on creation of 54 high-wage/high-skill jobs, the projected capital investment and additional positive impacts reflected above, the total proposed incentive amount (pending final approvals) is as follows:
QTI – State of Florida (80%) $129,600
QTI Local Financial Support (10%) – County $ 16,200
QTI Local Financial Support (10%) – City $ 16,200
Total Proposed Incentive Amount $162,000
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