THE OFFICE OF ECONOMIC AND SMALL BUSINESS DEVELOPMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.
Project Cardinal, located in Broward County since 2008, and currently with an office in Sunrise, Broward County, Florida, was originally founded in 1984. Project Cardinal is a provider of healthcare plans to uninsured Americans, and contracts through their health plans and with other healthcare and commercial organizations to provide specialty services such as behavioral health, life and health management, managed vision, telehealth, pharmacy benefits management and medication adherence. The company currently employs 8,800 globally, including 390 employees in Broward County. Project Cardinal seeks to expand existing operations in Broward County, resulting in the creation of 265 new employees by April 30, 2015. Locations in Missouri are also under consideration for this project.
If Project Cardinal chooses to expand operations in Broward County instead of Missouri, company officials propose renovation of existing office space at the corporate headquarters facility in the City of Sunrise in Broward County, FL. The total capital investment is $2,800,000. The new job average annual wage is $50,500. The average wage amount exceeds 115% of the County’s average annual wage for new jobs created under the Broward County Direct Cash/Job Creation Incentive Program. 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 Broward County Direct Cash /Job Creation Incentive Program, Project Cardinal will continue to provide a variety of healthcare solutions to meet growing industry demand. Project Cardinal falls within one of the targeted industry sectors designated under Florida Statute 288.108, as a healthcare insurance provider. Project Cardinal, as a member of the Global Business Services industry sector will enhance the County’s Targeted Industry strategy. Project Cardinal’s business model aligns with the Board of County Commissioner’s vision: Unlimited Economic Opportunities, which support “an economically successful, multi-faceted international community with high paying jobs and a well-educated, skilled, and motivated workforce.”
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 265 new, high-wage/high-skill jobs in excess of 115% of Broward County’s average annual wage, capital investment of $2.8 million, and a positive net return of approximately 21.86%. Therefore, approval is recommended.
The City of Sunrise Commission, has approved the entire 20% local financial support required for the State of Florida Qualified Target Industry Incentive (QTI), a Sunrise resident Hire Incentive, and a one-time Direct Cash/Job Creation incentive on March 11, 2014. All recommended incentives are pay for performance incentives.
Based on creation of 265 high-wage/high-skill jobs and the projected capital investment, the total proposed incentive amount is as follows:
QTI – State of Florida (80%) $ 636,000
QTI Local Financial Support (20%) – City of Sunrise $ 159,000
Direct Cash/Job Creation Incentive Grant – County $ 50,000
Direct Cash/Job Creation Incentive Grant – City of Sunrise $ 50,000
Sunrise Resident Hire Incentive – City of Sunrise $ 397,500
Total Proposed Incentive Amount $1,292,500
Fiscal Impact
Fiscal Impact/Cost Summary:
The total cost to Broward County would be $50,000. Incentive payments would be paid from the General Fund and correlate to revenues generated by Project Cardinal’s expansion in Broward County. |