Broward County Commission Regular Meeting


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AI-17055 38.       
Meeting Date: 06/24/2014  
Director's Name: Sandy-Michael McDonald
Department: Economic & Small Business  

Information
Requested Action
MOTION TO ADOPT Resolution No. 2014-355 recommending that Project Supreme be approved as a qualified applicant for participation in the State of Florida Qualified Targeted Industry Tax Refund Program (“QTI”) pursuant to Section 288.106, Florida Statutes, and the QTI High Impact Sector Bonus Tax Refund Program, pursuant to Section 288.108, Florida Statutes, and the Broward County Direct Cash/Job Creation Incentive Grant Program, for Fiscal Years 2015 through 2020, based on the creation of 400 high-wage/high-skill jobs resulting in an estimated capital investment in Broward County of $40,200,000.

(Commissioner LaMarca pulled this item.)

ACTION:  (T-10:58 AM)  Approved. (Refer to minutes for full discussion.) (Scrivener’s Error – See County Administrator’s Report: Exhibit 2, Page 1, currently reads: “The OESBD proposes to award Citrix a total of $340, 000 over six (6) year period…” Should read: “The OESBD proposes to award Project Supreme a total of $340,000 over a six (6) year period…” Exhibit 2, Page 1, third sentence currently reads:…the total economic benefit from Citrix’s investment… Should read: The total economic benefit from Project Supreme’s investment…)
 
VOTE: 9-0.
Why Action is Necessary
This action will allow the Office of Economic and Small Business Development (OESBD) to offer and implement incentives, as outlined in Ordinance 2011-16, to encourage Project Supreme to expand their operations in Broward County.
What Action Accomplishes
This action will allow the OESBD to offer incentives to Project Supreme to facilitate their proposed expansion in Broward County.
Is this Action Goal Related
Previous Action Taken
None
Summary Explanation/ Background
THE OFFICE OF ECONOMIC AND SMALL BUSINESS DEVELOPMENT RECOMMENDS APPROVAL OF THE ABOVE MOTION.

Project Supreme, founded in 1990 in the city of Weston in Broward County, Florida, is an award-winning, publicly traded software development company and cloud service provider specializing in comprehensive human resource and people management solutions. The company has experienced significant growth over the last five years and anticipates continued significant growth. With over 2,500 customers and employees in 136 countries, Project Supreme employs over 1,400 people worldwide, with 800 currently located in Broward County, Florida. This project would allow Project Supreme to expand its existing headquarter location, consolidate some or all of its existing buildings, and create a new, flagship campus-style headquarter facility in the City of Weston in Broward County, Florida. Location in Atlanta, Georgia is also under consideration for this project.

If Project Supreme chooses to expand operations in Broward County, company officials propose renovation of existing office space and construction of new corporate office facilities in the City of Weston. The total projected capital investment is $40,200,000. The new job average annual wage is $75,000. The average wage amount exceeds 150% of the County’s average annual wage for new jobs created under the QTI and Direct Cash/Job Creation 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 Qualified Targeted Industry Tax Refund Program (QTI) with a QTI High Impact Sector Bonus Tax Refund, and the Broward County Direct Cash /Job Creation Incentive Program, Project Supreme will continue to provide human resource and people management solutions cloud computing applications to meet growing industry demand. Project Supreme falls within one of the high impact sectors designated under Florida Statute 288.108, as a software development corporate headquarters location. Project Supreme, as a member of the Global Business Services industry sector will enhance the County’s Targeted Industry strategy. Project Supreme’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.”

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 400 new, high-wage/high-skill jobs in excess of 150% of Broward County’s average annual wage, capital investment of $40.2 million, and a positive net return of approximately 159.92%. Therefore, approval is recommended.

The City of Weston is scheduled to consider approval of the City portion (10%) of local financial support for the QTI and High Impact Sector Bonus Incentive and Direct Cash Incentive on June 16, 2014. The company is also applying for additional support from the Governor’s Quick Action Closing Fund. All recommended incentives are pay for performance incentives.

Based on creation of 400 high-wage/high-skill jobs and the projected capital investment, the total proposed incentive amount is as follows:

QTI and High Impact Sector Bonus – State of Florida (80%) $1,920,000
QTI and High Impact Sector Bonus Local Financial Support (10%) – County $240,000
QTI and High Impact Sector Bonus Local Financial Support (10%) – City $240,000
Direct Cash/Job Creation Incentive Grant – County $100,000
Direct Cash/Job Creation Incentive Grant – City $100,000
Total Proposed Incentive Amount $2,600,000

Fiscal Impact
Fiscal Impact/Cost Summary:
The total cost to Broward County would be $340,000. Incentive payments would be paid from the General Fund and correlate to revenues generated by Project Supreme’s expansion in Broward County.
Attachments
Exhibit 1 - Project Supreme Resolution
Exhibit 2 - Project Supreme Tax Payout Analysis


    

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