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HomeMy WebLinkAbout26-017 - sent to Recording on 5/26/26 ORDINANCE No. 2026-17 AN ORDINANCE BY THE BOARD OF COUNTY COMMISSIONERS OF ST. LUCIE COUNTY, FLORIDA, AMENDING CHAPTER 24 (IMPACT FEES), ARTICLE I (IN GENERAL), OF THE CODE OF ORDINANCES OF ST. LUCIE COUNTY, FLORIDA, BY AMENDING SECTION 24-1 (ECONOMIC DEVELOPMENT IMPACT FEE MITIGATION PROGRAM); PROVIDING FOR A SCORING-BASED MITIGATION SYSTEM; ESTABLISHING WAGE TIERS; DEFINING CATALYTIC PROJECTS; PROVIDING FISCAL SAFEGUARDS; PROVIDING FOR ADOPTION OF A SCORING MATRIX BY RESOLUTION; PROVIDING FOR SEVERABILITY; PROVIDING FOR APPLICABILITY; PROVIDING FOR FILING WITH THE DEPARTMENT OF STATE; PROVIDING FOR AN EFFECTIVE DATE; AND PROVIDING FOR CODIFICATION. WHEREAS, the Board of County Commissioners previously established an Economic Development Impact Fee Mitigation Program to encourage job creation and capital investment within the County; and WHEREAS, the Board of County Commissioners finds that the existing structure relies on rigid thresholds that limit flexibility and the County's ability to compete for high- impact economic development projects; and WHEREAS, the Board of County Commissioners desires to modernize the program by implementing a scoring-based system that evaluates overall economic benefit, including wages, job creation, and capital investment; and WHEREAS, the Board of County Commissioners further finds that establishing enhanced wage thresholds and defining catalytic projects will promote higher quality jobs and transformative economic investment; and WHEREAS, the Board of County Commissioners finds it necessary to maintain fiscal safeguards and preserve discretion in awarding incentives. WHEREAS, on May 19, 2026, the Board of County Commissioners held a public hearing, of which due notice was placed in the St. Lucie News Tribune and approved the ordinance. NOW, THEREFORE, BE IT ORDAINED by the Board of County Commissioners of St. Lucie County, Florida, that the St. Lucie County Code of Ordinances is amended as set forth in the following amendments, as shown in wag# and underline format. PART A. Section 24-1 (Economic Development Impact Fee Mitigation) of Article I (In General) of Chapter 24 (Impact Fees) of the Code of Ordinances of St. Lucie County is amended as follows: Page 1 of 7 Sec. 24-1. Economic development impact fee mitigation program. (a) For the purpose of this section, the term "qualified target industry business" shall mean a new or expanding business in the county that has a positive economic and fiscal impact on the county and meets the requirements of F.S. § 288.106, or its statutory successor in function, as a qualified target industry business. For the purpose of this section, the term "applicant" shall include any person, company, research institute or business park developer that will house qualified target industry businesses. (b) For the purpose of this section, the term "catalytic project" shall mean a project that meets at least two (2) of the following criteria and is designated as such by the Board of County Commissioners: (1) Capital investment of$200,000,000 or greater; (2) Creation of 500 or more new full-time jobs; (3) Average wages of at least 135% of the annual County average wage; (4) Demonstrates significant regional or industry-wide economic impact as determined by the Board of County Commissioners. (bc) For the purposes of this section, the term "locally owned and operated small business" shall mean a target industry continually operated in St. Lucie County for at least three years which is owned and operated by a St. Lucie, Martin, Indian River or Okeechobee County resident whose homestead is located in St. Lucie, Martin, Indian River, Okeechobee County, and which employs 50 or fewer employees. (Gd)Because the imposition of the impact fees herein may place the county in a non- competitive position with other local governments that have chosen not to require growth to pay its fair share of needed capital facilities, thus hindering efforts by the county and the community to encourage economic development opportunities within the county and to create permanent employment expansion opportunities for the county's citizens, there is hereby created an economic development impact fee mitigation program for certain qualified target industry businesses to mitigate any real or perceived disadvantage occurring from the imposition of the impact fees. (de)This program is not intended as an entitlement program. The program is intended to provide the Board of County Commissioners the opportunity, in its sole discretion, to grant impact fee mitigation to qualified target industry businesses. (ef) To be eligible for an economic development impact fee waiver, an applicant must meet the following requirements: county's average private sector wage (excluding the top two executive salarics) Page 2 of 7 a capital investment in the county of $10,000,000.00 or greater in construction, ases, or other major capital-investment-items-and {3) Qualify as a locally owned and operated small business and create a minimum of to T i a�P oe priv sector wage (excluding ben ts) of 100 P' �^�Z �^�T�4 T�7�w percent of the county's average private sector wage {excluding the top two and remain in the county for a minimum of ten years; and (i1) Enter into an agreement with the county wherein the applicant agrees to locate or expand its business operations tohwithin the nog inty for a period of of least ten (1) Qualify as a qualified target industry business or locally owned and operated small business; and (2) Enter into an agreement with the County wherein the applicant agrees to locate or expand its business operations to/within the County for a period of ten (10) years, and (3) Achieve a minimum of fifty (50) points under the St. Lucie County Economic Development Incentive Scoring Matrix, as determined by the Board of County Commissioners; and (4) Provide documentation annually on a form acceptable to the County to verify job creation, wage levels, and capital investment. (5) For any impact fee mitigation award anticipated to exceed one hundred thousand dollars ($100,000), the applicant shall submit or authorize the Economic Development Council of St. Lucie County, Inc. ("EDC") to prepare a Fiscal Impact Analysis ("HA"). The FIA shall: (a) Identify projected direct, indirect, and induced employment, payroll, and economic output; (b) Estimate net new County revenues attributable to the project; and (c) Demonstrate a minimum net fiscal benefit ratio of 1.2 to 1.0 over the term of the incentive. The Board of County Commissioners may waive the FIA requirement upon the finding of exceptional public benefit. (fg) Any applicant seeking an economic development impact fee waiver shall file an application for waiver with the county administrator prior to the issuance of the building permit for the subject capital facilities impact construction. The application shall contain: (1) A designation of the capital facilities impact construction for which the application is being submitted, including a current and complete legal description of the property upon which the qualified target industry business is proposed to be located A description of the proposed development project for which impact fee mitigation is requested, including a current legal description of the subject property; (2) The name and address of the owner of the property upon which the qualified target industry business is proposed to be located; Page 3 of 7 (3) business Documentation demonstrating that the proposed business qualifies as a qualified targeted industry business; (4) A notarized affidavit and all necessary supporting evidence affirming that the applicable requirements of subsection (ef) of this section will be met within one year of the date the certificate of occupancy is issued which term may be extended by the board of county commissioners upon good cause shown; and (5) Other necessary information as determined by the county administrator. (gh)Any applicant who submits an application for economic development impact fee mitigation pursuant to this section and desires the immediate issuance of a building permit prior to approval of the application shall pay the impact fees imposed herein. Should the board of county commissioners approve and accept the mitigation application, the mitigation amount shall be refunded to the applicant or owner. (14i) If the applicant meets the eligibility requirements provided above, for mitigation, the applicant shall may be eligible for the--fallowing-impact fee mitigation as determined by the Board of County Commissioners. Impact fee mitigation shall be awarded based on the total score achieved as follows: {1) If the applicant qualifies under subsection (e)(1) of this section, it shall be eligible to receive an economic development impact fee mitigation in the following amounts; provided, however, that the board may incr ace these waiver amounts in the event the applicant exceeds these requirements: Percent of Average Created Private Sector Wage 107% plus benefits $3,500.00 per job created 150% plus benefits $5,000.00 per job created 200% plus benefits $7,500.00 per job created {2) If the applicant qualifies under subsection (e)(2) of this section, it shall be eligible to receive an economic development impact fee mitigation in the following amounts; provided, however, that the board may increase these mitigation amounts in the event the applicant exceeds these requirements: Number of Total Capital Investment Jobs Created $10,000,000.00 to $14,999,999.99 9 a 0 fees $15,000,000.00 to $19,999,999.99 9 1-0 fees $20,000,000.00 or more 60% of total county impact 1-0 fees Page 4 of 7 to receive an economic development impact fee mitigation in the following in the event the applicant exceeds these requirements: Percent of Average Created 100% plus benefits $3,500.00 per job created 140% plus benefits $5,000.00 per job created 185% plus benefits $7,500.00 per job created (e)(2) or (e)(3), but not in combination. Score Range Maximum Mitigation 50 —64 Points (Base Impact) Up to 40% 65 — 79 Points (High Impact) Up to 60% 80 — 94 Points (Very High Impact) Up to 80% 95 - 109 Points (Strategic Impact) Up to 90% 110 - 145 Points (Exceptional Impact) Up to 100% • Points are not cumulative across tiers within each category. • The Board of County Commissioners retains full discretion to award less than the maximum allowable mitigation amount. Nothing herein shall be construed to create a right to impact fee mitigation. • Projects designated as Catalytic Projects may be considered for maximum mitigation and additional incentives, as determined by the Board. (i) Total mitigation awarded under this program shall be subject to annual budgeted appropriations or other legally available funds as determined by the Board of County Commissioners. The Board reserves the right to: • Limit, defer, or deny any application • Consider cumulative fiscal impacts • Prioritize projects based on public benefit (k) All impact fee mitigation awarded pursuant to this section shall be conditioned upon the applicant's compliance with the terms of the approved incentive agreement, including but not limited to job creation, wage levels, and capital investment. The County shall verify compliance prior to disbursement of any mitigation funds. No reimbursement or mitigation payment shall be made for any reporting period in which the applicant fails to meet the required performance thresholds, unless otherwise approved by the Board of County Commissioners. Incentive payments may be prorated based on the level of performance achieved, provided the applicant achieves at least eighty-five percent (85%) of their required performance obligations for the applicable reporting period. In the event that mitigation Page 5 of 7 funds have been disbursed and the applicant subsequently fails to meet required performance obligations, relocates outside the County, or ceases operations, the County shall require repayment of all or a prorated portion of the mitigation amount, as determined by the Board of County Commissioners. Repayment obligations shall survive termination or expiration of any incentive agreement. (I) The Economic Development Incentive Scoring Matrix shall be adopted and periodically updated by resolution of the Board of County Commissioners. The Economic Incentive Scoring Matrix shall serve as the primary basis for determining both eligibility and maximum allowable mitigation under this section. (m) Force Majeure. A recipient whose ability to satisfy performance obligations is materially impacted by an extraordinary event beyond reasonable control, including a declared natural disaster or public health emergency, may request relief. Force Majeure shall not include general economic conditions, changes in business strategy, or inability to obtain financing. The Board of County Commissioners may approve: (1) Extensions of performance deadlines; (2) Temporary suspension of compliance periods; or (3) Other reasonable modifications. (n) Audit and Record Retention. The County has the right to audit any recipient to verify compliance with the terms of the incentive agreement. Recipients shall maintain all records necessary to demonstrate compliance, including payroll, wage, employment, capital investment, local hiring, local contractor, impact fee payment, reimbursement, and other supporting documentation, for a period of not less than five (5) years following expiration or termination of the agreement. (io) If the county administrator or designee finds that the applicant meets the requirements provided herein for mitigation, the county administrator or designee shall agenda an impact fee mitigation agreement before the board of county commissioners, which shall contain, but not be limited to, the county impact fee mitigation application for qualified target industries and any other documents as requested by the county administrator or designee. Because this program is not an entitlement program, the board may reject the request for mitigation without cause. (jp) Any incentive approved pursuant to the economic development impact fee mitigation program shall be paid from other legally available funds (other than impact fees). (kq)Any request for economic development impact fee mitigation must be submitted to the county by the applicant prior to the applicant deciding whether or not they will expand or locate in the county. PART B. SEVERABILITY AND APPLICABILITY. If any provision of this ordinance or the application thereof to any person or circumstance for any reason is held or declared to be unconstitutional, inoperative, or void, such holding shall not affect the remaining portions of this ordinance. If this ordinance or any provision thereof shall be held to be Page 6 of 7 inapplicable to any person, property, or circumstance, such holding shall not affect its applicability to any other person, property, or circumstance. PART C. FILING WITH THE DEPARTMENT OF STATE. The Clerk is hereby directed forthwith to send a certified copy of this ordinance to the Department of State. PART D. EFFECTIVE DATE. A certified copy of this ordinance shall be filed with the Department of State by the Clerk of the Board of County Commissioners of St. Lucie County within ten days after enactment by the Board, and this ordinance shall take effect upon filing with the Department of State. PART E. ADOPTION. After motion and second, the vote on this ordinance was as follows: Jamie Fowler, Chair AYE Larry Leet, Vice Chair AYE James Clasby, Commissioner AYE Erin Lowry, Commissioner AYE Cathy Townsend, Commissioner ABSENT PART F. CODIFICATION. Provisions of this ordinance shall be incorporated in the Code of Ordinances of St. Lucie County, Florida, and the word "ordinance" may be changed to "section", "article", or other appropriate word, and the sections of this ordinance may be renumbered or re-lettered to accomplish such intention; provided, however, that Parts B through F shall not be codified. PASSED AND DULY ADOPTED this 19th day of May, 2026. BOARD OF COUNTY COMMISSIONERS ATTEST: ST. LUCIE COUNTY, FLORIDA GOMM/Ss, BY: Deputy Cler Z Gym Chair 1. v (c %% cn PROV DASTOFORMAND * := * CO TNESS: F `GC O 1E COUN'N•*% BY: County Attorney Page 7 of 7 FLORIDA DEPARTMENT O STATE RON DESANTIS CORD BYRD Governor Secretary of State May 27, 2026 Michelle R. Miller Clerk& Comptroller St. Lucie County 2300 Virginia Ave. Fort Pierce, FL 34982 Dear Michelle Miller, Pursuant to the provisions of Section 125.66, Florida Statutes,this will acknowledge receipt of your electronic copy of St. Lucie County Ordinance No. 2026-17, which was filed in this office on May 27, 2026. Sincerely, Alexandra Leijon Administrative Code and Register Director AL/dp R. A. Gray Building • 500 South Bronough Street • Tallahassee, Florida 32399-0250 Telephone: (850) 245-6270