Collier County
FL

Action Item
10685

Recommendation that the Board of County Commissioners approve Summit Orthopedic Technologies, Inc., (“Summit”) as a qualified applicant to the Collier County Basic Industry Job Growth Promotion Incentive Program and approve the attached agreement for Project “Peak.”

Information

Department:Business and Economic DevelopmentSponsors:
Category:16.F Consent Agenda-County Manager Operations

Attachments

  1. Printout
  2. Project Peak CAO stamped agreement

Executive Summary

EXECUTIVE SUMMARY

 

Recommendation that the Board of County Commissioners approve Summit Orthopedic Technologies, Inc., (“Summit”) as a qualified applicant to the Collier County Basic Industry Job Growth Promotion Incentive Program and approve the attached agreement for Project “Peak.”

 

 

OBJECTIVE:              That the Board of County Commissioners (“Board”) consider an economic development financial incentive to facilitate the attraction and growth of Summit’s advanced manufacturing operations, add high wage jobs, to further diversify Collier County’s economy. 

 

CONSIDERATIONS:              Summit a successful advanced manufacturing operation based in Connecticut, has proposed relocating and expanding the company from its current location to Collier County.  Summit under the Project name “Peak” made application for Qualified Target Industry (“QTI”) tax credit refunds on February 8, 2019.  Summit proposed to create at least 80 net new-to-Florida full time equivalent jobs paying at least $45,564.  Summit was awarded up to $400,000 in QTI tax refunds, which included local financial support of $80,000.  Collier County approved the local match April 23, 2019 (Resolution No. 2019-69).  The Agreement between the Florida Department of Economic Opportunity (“DEO”) executed the QTI agreement with Summit on August 30, 2019. 

 

Summit was issued a Preservation of Inducement letter (“LPI”) on March 11, 2019.  The LPI issued by the DEO is a preliminary determination of Summit’s eligibility for economic development incentives.  Furthermore, the LPI acknowledges the competitive nature of attracting Summit to Florida and the need for Summit to proceed with the project before the local community has approved local financial support.  In accordance with Section 288.106 of the Florida Statutes, Summit’s actions in furtherance of the project on or after the date of the LPI would not affect its eligibility for award of QTI tax refunds, including local financial support.  The LPI provided that the actions in furtherance of the project “including, without limitation, leasing or purchasing real or personal property, incurring construction expenses, and hiring employees will not affect the Company’s eligibility”.  Summit entered into a lease for manufacturing space on July 4, 2019. 

 

The project’s operation and directly related employment will be in support of the diversification of Collier County’s economy and growth in advanced manufacturing jobs.  Summit requested confidentiality as provided by F.S. 288.075.  Summit applied for the Advanced Long Term Productivity Strategy Program (“ALPS”) initially and staff advised that the Collier County Basic Industry Growth Promotion Incentive (“BIGPI”) program matched the goals of both Summit and Collier County.  The incentive under BIGPI for this Project will be $1,875 per job created in Collier County up to 80 jobs.  Summit is committing to the creation of 20 jobs per year and maintaining the jobs it creates in Collier County.  Summit’s BIGPI will be paid annually based on jobs created and maintained in Collier County.  The BIGPI commences with the first anniversary of the issuance of the Certificate of Occupancy for the Summit facility in Collier County and will continue each year thereafter until the full grant amount of $150,000.00 is paid.  Each payment is conditioned and contingent upon the continued operation of the facility as a surgical or medical instrument manufacturing related company specified by 2012 (NAICS) Number 339112 as evidenced by a certified County approved method or an equivalent Targeted Industry Business operation acceptable to the County. 

 

Should at any time over the term of this Agreement the number of qualifying jobs is less then set forth in the payment schedule set forth above, for such payment period the County Manager or his designee will authorize a lesser sum be paid based on the actual number not to exceed $1,875.00 per new full-time equivalent job created.

 

FISCAL IMPACT:  Funding for Economic Development Incentives is provided in the General Fund Economic Development Incentives cost center 138763-001. The maximum cost to the County for this proposed incentive is $150,000 paid over four years for the creation of 80 jobs. Twenty jobs are targeted to be created each year for a potential annual payment of $37,500. The first incentive year is anticipated to be FY 2020. Funding for this incentive is subject to annual appropriation by the Board. 

 

GROWTH MANAGEMENT IMPACTThis request is consistent with Objective 3 of the Economic Element of the Collier County Growth Management Plan which states: “Collier County will support programs which are designed to promote and encourage the recruitment of new industry as well as the expansion and retention of existing industries in order to diversify the County’s economic base.”

 

LEGAL CONSIDERATIONS: This item is approved for form and legality and requires a majority vote for Board action.  - JAB

 

RECOMMENDATION  That the Board of County Commissioners approve Summit Orthopedic Technologies, Inc., (“Summit”) as a qualified applicant to the Collier County Basic Industry Growth Promotion Incentive Program and approve the attached agreement for Project “Peak.”

 

Prepared by: Jace Kentner, Director, Business &Economic Development Division.

 

Discussion