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HomeMy WebLinkAbout26-094 - To Recording 5/27/26 RESOLUTION No. 2026-94 A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF ST. LUCIE COUNTY, FLORIDA, REVISING AND CONSOLIDATING THE COUNTY'S ECONOMIC INCENTIVE PROGRAM; ADOPTING THE ST. LUCIE COUNTY ECONOMIC INCENTIVE SCORING MATRIX; ADOPTING THE ST. LUCIE COUNTY ECONOMIC INCENTIVE APPLICATION; REPEALING OR SUPERSEDING PRIOR RESOLUTIONS; ESTABLISHING A PERFORMANCE- BASED INCENTIVE FRAMEWORK; PROVIDING FOR ADMINISTRATION, PERFORMANCE AGREEMENTS AND RECAPTURE; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, the Board of County Commissioners of St. Lucie County, Florida, has made the following determinations: 1. St. Lucie County supports economic development and the creation of new employment opportunities as part of an overall strategy for sustainability and quality of life; and 2. On August 23, 1994, the Board of County Commissioners adopted Resolution No. 94- 168, which created and approved the Job Growth Investment Grant(JGIG) Program Process and Criteria to encourage economic development,job creation, and capital investment within St. Lucie County; and 3. The Board of County Commissioners amended the JGIG guidelines in 1998, 2003, 2005, 2006, and 2009; and 4. On March 31, 2015, the Board of County Commissioners adopted Resolution 15-042, which refined the JGIG Program to allow participation by locally owned and operated businesses,- and 5. The Board of County Commissioners finds that it is in the best interest of public health, safety, and welfare to revise such programs to ensure that incentives are directly tied to measurable economic benefits, including high-wage job creation and capital investment; and 6. The Board of County Commissioners desires to establish a uniform, transparent, and performance-based framework for awarding economic incentives; and 7. The Board of County Commissioners further finds that incentives should only be provided upon demonstration of measurable public benefit and should include enforceable provisions for recapture in the event of nonperformance or relocation; and 8. This Resolution is intended to amend, consolidate, and supersede prior resolutions or policies inconsistent herewith to the extent of such inconsistency. NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of St. Lucie County, Florida: SECTION 1. PURPOSE AND INTENT. This Resolution establishes a revised Economic Incentive Program designed to promote 1 high-wage job creation, capital investment, and long-term economic benefit within St. Lucie County. All incentives shall be performance-based and contingent upon compliance with executed agreements. SECTION 2. ADOPTION OF SCORING MATRIX. The St. Lucie County Economic Incentive Scoring Matrix, attached hereto as Exhibit"A", is hereby adopted. SECTION 3. APPLICABILITY. The scoring matrix shall be used to evaluate economic development projects for eligibility and award determinations under County incentive programs, including but not limited to: • Impact Fee Mitigation; • Job Growth Investment Grant; • Ad Valorem Tax Exemption; and • Any other County-administered economic development incentives, as may be established or amended by the Board of County Commissioners SECTION 4. ELIGIBILITY. Eligibility for incentives shall be limited to Qualified Target Industry businesses, as defined by applicable County ordinances and policies. Notwithstanding the foregoing, locally owned and operated businesses may be eligible for participation in the Job Growth Investment Grant (JGIG) program, as determined by the Board of County Commissioners, and the Board may separately establish a Locally Owned & Operated Business Incentive ("LOOBI") program to provide alternative criteria for qualifying local small businesses. Eligibility and award levels shall be determined based on: • The total score achieved under the scoring matrix; provided however, that applicants achieving between thirty (30) and forty-nine points (49) may be eligible only for limited incentives as determined by the Board of County Commissioners; and • Compliance with program-specific requirements; and • Locally owned and operated businesses may be evaluated under the JGIG program pursuant to this Resolution, where applicable, and may also be eligible for any separate Locally Owned & Operated Business Incentive ("LOOBI") program subsequently established by the Board of County Commissioners. Any LOOBI program shall require separate implementing criteria, authorization and approval by the Board. SECTION 5. COMMENCEMENT AND EXPIRATION OF INCENTIVE APPROVAL. Any approved incentive agreement shall expire if the applicant fails to commence construction or operations within twenty-four (24) months of approval, unless extended by the Board of County Commissioners for good cause shown. For purposes of this section, "commencement" shall mean the initiation of vertical construction, site development activity, or business operations, as applicable, as determined by the County Administrator or designee. SECTION 6. SCORING AND AWARD OF INCENTIVES. The scoring shall be applied in accordance with Exhibit "A", and points shall not be cumulative across tiers within each category. Nothing in this Resolution shall be construed to create any right or entitlement to incentives. All incentives shall be subject to Board approval, 2 available funding, and project-specific considerations. The Board retains full discretion to award less than the maximum permitted by the scoring matrix. SECTION 7. JOB GROWTH INVESTMENT GRANT (JGIG) PROGRAM AMENDMENT. The Job Growth Investment Grant(JGIG) Program established pursuant to Resolution No. 94-168, as amended by Resolution No. 15-042, is hereby amended and incorporated into the County's Economic Incentive Program as follows: A. The JGIG program shall remain in effect as a performance-based incentive providing grants based on job creation and wage thresholds. B. All JGIG applications shall be evaluated using the Economic Incentive Scoring Matrix set forth in Exhibit "A". C. For purposes of this section, the "eligible grant amount" shall mean the total amount calculated based on the number of qualifying Full-Time Equivalent (FTE) jobs multiplied by the applicable per-job grant value, as established herein. D. Per-job grant enhancements within the same category shall not be cumulative across tiers. The base per-job grant value shall be $1,500 per qualifying Full-Time Equivalent (FTE) job. The per-job grant value may be increased through performance-based enhancements based on project characteristics, including wage levels, capital investment, local workforce participation, and utilization of local contractors, as further described below. In no event shall the total per-job grant value exceed $2,500 per qualifying Full-Time Equivalent (FTE)job. E. Per-job grant enhancements may include: 1. Wage-Based Enhancements (non-cumulative) — Per-job enhancements shall be awarded based on the highest applicable wage threshold. Wage-based enhancements shall not be cumulative across tiers. a) +$250 per job for average wages greater than or equal to 120% of the County average wage; b) +$500 per job for average wages greater than or equal to 135% of the County average wage; c) +$750 per job for average wages greater than or equal to 150% of the County average wage. 2. Capital Investment Enhancements (non-cumulative) — Per-job enhancements shall be awarded based on the highest applicable capital investment threshold achieved. Capital-based enhancements shall not be cumulative across tiers. a) +$125 per job for capital investment greater than or equal to $100,000,000; b) +$250 per job for capital investment greater than or equal to $300,000,000. 3. Research Firm Enhancement (non-cumulative) — +$500 per job where at least fifty percent (50%) of the workforce is employed in qualifying research and development activities, including development of new products, refinement of existing products, testing of products, or development of new scientific information. F. Local Economic Participation Enhancements: 1. +$125 per job where at least ninety percent (90%) of new full-time employees are residents of St. Lucie County ("local hires"); and 2. +$125 per job where at least seventy-five percent (75%) of total construction costs are performed by contractors or subcontractors with a physical business location in St. Lucie County ("local contractors"). 3 Eligibility for these enhancements shall be subject to documentation and verification requirements established by the County. G. The total eligible grant amount shall be calculated as the number of qualifying jobs multiplied by the applicable per-job grant value, inclusive of any applicable enhancements, prior to application of the score-based award percentage set forth in subsection (H). Per-job grant enhancements shall be applied prior to application of the score-based award percentage. H. The maximum JGIG award for any individual project is $2,500,000 inclusive of all amounts awarded under the JGIG program, unless a higher amount is approved by a supermajority vote of the Board. I. The following score-based scale shall apply to JGIG awards: Score Range Maximum JGIG Award (% of Eligible Amount) 30 —49 Points Up to 20% of the eligible grant amount (as determined by the BOCC) 50—64 Points Up to 50% of the eligible grant amount 65 — 79 Points Up to 75% of the eligible grant amount 80 —94 Points Up to 90% of the eligible grant amount 95 — 109 Points Up to 95% of the eligible grant amount 110 - 145 Points Up to 100% of the eligible grant amount J. The Board of County Commissioners retains full discretion to approve, deny, or award an amount less than the maximum allowable grant based on available funding, fiscal impact, and project-specific considerations. K. Awards within the 110 — 145 point range are intended to be limited to projects demonstrating exceptional economic impact and shall be approved on a case-by-case basis. L. JGIG awards shall be disbursed on a performance based, reimbursement basis over a period of years as established in the approved incentive agreement, not to exceed ten (10) years. Annual payments shall be calculated based on the number of verified full-time equivalent (FTE)jobs created and maintained during the applicable reporting period, multiplied by the approved per-job grant value. Unless otherwise determined by the Board of County Commissioners, grant awards shall be phased as follows: 1. For total grant awards of $100,000 or less, payments may be distributed over a two (2) year period, with up to fifty percent (50%) of the total award eligible for payment in each year, subject to performance verification; 2. For total grant awards exceeding $100,000, annual payments shall not exceed twenty percent (20%) of the total approved grant award per year. Payment schedules shall reflect the anticipated job creation ramp-up as set forth in the approved performance agreement. No payment shall be made for any reporting period in which the applicant fails to meet required performance thresholds, unless otherwise approved by the Board of County 4 Commissioners. Incentive payments may be prorated based on actual performance achieved, provided the applicant achieves at least eighty-five percent (85%) of required performance obligations for the applicable reporting period. All payments shall be made within forty-five (45) days following March 31 st of each year, after receipt and verification of the applicant's annual report demonstrating compliance with the terms of the agreement. The total amount of payments disbursed shall not exceed the maximum award approved by the Board of County Commissioners. The Board of County Commissioners may approve alternative payment schedules based on project- specific considerations, including job creation ramp-up, capital investment timing, and fiscal impact. SECTION 8. LOCALLY OWNED AND OPERATED BUSINESS INCENTIVE PROGRAM. A. Direction to prepare implementing instruments. (1) The Board of County Commissioners finds that the long-term investment and civic importance of locally owned and operated small businesses are a critical economic development asset, and that Locally Owned &Operated Business Incentive ("LOOBI") program would promote investment in the creation and expansion of small business within St. Lucie County. (2) The Planning and Development Services Department is hereby directed to coordinate with the County Attorney to prepare draft implementing ordinances and/or resolutions establishing a LOOBI program providing an alternative to the standard criteria in this document. (3) For the purposes of this section, the term "locally owned and operated small business" means a target industry continually operated in St. Lucie County for at least three (3) 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. SECTION 9. APPLICATIONS AND PERFORMANCE AGREEMENTS. The Planning and Development Services Department, in coordination with the County Attorney's Office, shall administer the County's economic incentive programs. The Planning and Development Services Department shall maintain incentive program forms, including applications, scoring sheets, agreement templates, reporting forms and requirements for applicants and any other related documentation. The Planning and Development Services Department shall monitor the applicants and provide updates and reports to the Board of County Commissioners. The Planning and Development Services Department can coordinate with the Economic Development Council of St. Lucie County, Inc. (EDC) to serve as a pre-screening partner for incentive applications and assist in the initial review of eligibility and preparation or coordination of Fiscal Impact Analyses. The EDC may provide written recommendations to the Planning and Development Services Department; however, all determinations of eligibility, scoring, and award shall remain within the sole discretion of the Board of County Commissioners. For incentive requests anticipated to exceed One Hundred Thousand Dollars ($100,000), the County may require the preparation of a Fiscal Impact Analysis (FIA), which shall evaluate projected economic benefits and fiscal impacts associated with the proposed project. 5 All incentives shall be memorialized in a written agreement in a form approved by the County Attorney and approved by the Board. Such agreements shall include, at a minimum, job creation schedules,wage requirements, capital investment commitments, reporting requirements, and enforcement provisions. SECTION 10. COMPLIANCE, REPORTING, AUDIT, AND RECORD RETENTION. All incentives shall be subject to annual certification of compliance by the County prior to continuation of any incentive payment or benefit. Recipients shall provide documentation sufficient to verify compliance, including but not limited to state wage and employment records, as required by the County. Failure to meet required thresholds shall constitute noncompliance, subject to the provisions herein and in the applicable agreement. The County has the right to audit any Recipient to verify compliance with the terms of the applicable incentive agreement. Recipients shall maintain all records necessary to demonstrate compliance, including payroll, wage, employment, capital investment, local hiring, local contractor, and other supporting documentation, for a period of not less than five (5) years following expiration or termination of the agreement. SECTION 11. CLAWBACK AND RECAPTURE. The Board of County Commissioners retains full discretion to approve, deny or modify incentive agreements and award amounts at its sole discretion. Further, the Board of County Commissioners reserves the right to terminate or modify any incentive or exemption in the event of noncompliance. The County shall retain the right to require repayment of incentives in full or on a prorated basis for failure to meet performance obligations. Repayment obligations shall survive termination or expiration of any incentive agreement. Incentive payments shall be proportionate to the level of performance achieved, subject to a minimum performance threshold of eighty-five percent (85%). No incentive payment shall be made for any reporting period in which performance falls below eighty-five percent (85%), unless otherwise approved by the Board of County Commissioners. In the event of relocation outside the County or cessation of operations, the County shall require full repayment of all incentives received, pursuant to a recorded repayment agreement or other enforceable mechanism. SECTION 12. ADMINISTRATIVE AUTHORITY. The County Administrator or designee is authorized to administer this program, including coordination with the Property Appraiser, review and verification of annual reports, and administration of compliance and enforcement provisions consistent with approved agreements. SECTION 13. REPEALER. This Resolution is intended to amend and supersede any prior resolutions or policies inconsistent herewith, including Resolution No. 94-168 and Resolution No. 15-042, to the extent of such inconsistency. In the event of any conflict between this Resolution, the Impact Fee Mitigation Ordinance, and the Ad Valorem Tax Exemption Resolution, the provisions of the 6 applicable ordinance shall control, and the Economic Incentive Scoring Matrix shall control for purposes of evaluation and award determination. SECTION 14. SEVERABILITY. If any provision of this Resolution is held invalid, such invalidity shall not affect the remaining provisions. SECTION 15. EFFECTIVE DATE. This Resolution shall take effect immediately upon adoption. After motion and second, the vote on this Resolution was as follows: Commissioner Jamie Fowler, Chair AYE Commissioner Larry Leet, Vice Chair AYE Commissioner James Clasby AYE Commissioner Erin Lowry AYE Commissioner Cathy Townsend ABSENT PASSED AND DULY ADOPTED this 19' day of May, 2026. ATTEST: BOARD OF COUNTY COMMISSIONERS ST. LUCIE COUNTY, FLORIDA Gomm/S`p/1O v` y DEPUTY CLE � � CHAIR e * * PRO V D AS TO LEGAL FORM AND ORRECTNESS: `Gc�E couwr�.F`'o� COUNTY ATTORNEY 7 EXHIBIT A St. Lucie County Economic Incentive Scoring Matrix Scoring Note: The scoring matrix shall serve as the primary basis for determining eligibility and the maximum allowable incentive under all County economic development programs. Points are not cumulative across tiers within each category. Each project shall receive points corresponding only to the single highest applicable tier within each category. This scoring system is intended to ensure that economic incentives are directly proportional to demonstrated public benefit. Minimum Incentive Eligibility Threshold: 30 Points Eligibility is limited to Qualified Target Industry businesses as defined by applicable County ordinances and policies. TOTAL BASE POINTS: 105 (+ BONUS = MAXIMUM SCORE OF 145) Bonus points are additive to the total score and may increase the overall project score above the base maximum. 1. JOB CREATION MAXIMUM: 35 POINTS FTE Jobs Created Points 10-24 5 25-74 10 75 - 149 20 150 -299 25 300—499 30 500 or more 35 FTE Jobs—Includes salaried and hourly employees,including those provided under an evidenced contract with a staffing agency,and shall be calculated by total payroll hours per year divided by 1,820(which represents 52 weeks multiplied by 35 hours),provided hourly employees should have been employed for a minimum of 90 days. 2. WAGE LEVEL MAXIMUM: 35 POINTS Annual Average Wage(% of points County Average Wage) 115% - 119% 5 120%— 124% 10 125% - 134% 20 135% - 149% 25 150% or greater 35 Annual Average Hourly Waqe—Is determined by the State of Florida Department of Commerce, Labor Market Statistics, Quarterly Census of Employment and Wages Program. The annual average hourly wage shall include the hourly cost of gross wages, bonuses, and commissions, but does not include benefits. The top two (2) executive salaries shall not be included in the average hourly wage calculation. For purposes of calculating Annual Average Hourly Wage, gross wages shall include those gross wages as reported on the State of Florida's Employer's Quarterly Report(Form RT-6). 3. CAPITAL INVESTMENT MAXIMUM: 35 POINTS Capital Investment Points $1,000,000 - $9,999,999 5 $10,000,000—$49,999,999 10 $50,000,000—$99,999,999 15 $100,000,000—$299,999,999 25 $300,000,000 or greater 35 8 4. BONUS CRITERIA UP TO +40 POINTS Criteria Points Catalytic Project Designation +15 (as defined in Section 24-1 of the St. Lucie County Code of Ordinances) 800+jobs +25 SCORING SUMMARY Total Score Classification 30-49 points Eligible (up to 20% -Limited Impact 50-64 points Base Impact 65-79 points High Impact 80-94 points Very High Impact 95-109 points Strategic Impact 110- 145 points Exceptional Impact Projects scoring within the 110- 145 point range are expected to demonstrate exceptional economic impact, including but not limited to high-wage job creation, significant capital investment, and alignment with the County's strategic economic development objectives. NOTES: 1. Eligibility for incentives is limited to Qualified Target Industry businesses as defined by applicable County ordinances and policies. 2. The scoring matrix is used to evaluate and rank eligible projects and does not confer any right or entitlement to incentives. 3. The Board of County Commissioners retains full discretion in awarding incentives and may consider additional qualitative factors in determining the final award. 4. "Catalytic Project"shall have the meaning set forth in Section 24-1 of the St. Lucie County Code of Ordinances. This designation may be considered by the Board of County Commissioners as a basis for awarding enhanced incentives, at their sole discretion. 9 EXHIBIT B ST. LUCIE COUNTY ECONOMIC INCENTIVE APPLICATION This application is used to evaluate requests for economic incentives from St. Lucie County, including Ad Valorem Tax Exemption, Job Growth Investment Grant (JGIG), and Impact Fee Mitigation (IFM). Ad Valorem Tax Exemption is structured as a two-phased process: • Phase 1 — Preliminary Evaluation (this application) • Phase 2 — Final Ad Valorem Tax Exemption Application (post construction, DR-418 required) Submission of this application does not guarantee approval. All incentives are awarded at the sole discretion of the St. Lucie County Board of County Commissioners (BOCC). A. APPLICATION INFORMATION Company or Project Name: Business Address: Primary Contact Name & Title: Phone: Email: B. PROJECT OVERVIEW Project Type (New, Expansion, Relocation): Project Description: Proposed Timeline: C. EMPLOYMENT INFORMATION Total number of full-time employees (new and existing) expected during the term of the incentive agreement(s): New, full-time employees expected during the term of the incentive agreement(s): Average wage of new jobs (excluding benefits & top two executive salaries): Average Wage as % of St. Lucie County Average Wage: % Job Creation Schedule: 10 D. CAPITAL INVESTMENT Building Investment: Equipment Investment: Total Capital Investment- E. TARGET INDUSTRY & ELIGIBILITY Target Industry- But-for Statement (Explain why incentives are necessary)- F. PROPERTY INFORMATION Project Address: Parcel(s) ID: Jurisdiction: Impact Fee Zone: G. PROGRAM SELECTION ❑ Ad Valorem Tax Exemption ❑ Job Growth Investment Grant (JGIG) ❑ Impact Fee Mitigation (IFM) H. BONUS I CATALYTIC CONSIDERATION Is the project requesting Catalytic Project designation? ❑ Yes ❑ No If yes, provide justification demonstrating qualification under County criteria: APPLICANTS REQUESTING AD VALOREM EXEMPTION MUST COMPLETE THE ADDENDUM BELOW I. AD VALOREM TAX EXEMPTION ADDENDUM (If Applicable) ❑ Phase 1 — Preliminary Evaluation ❑ Phase 2 — Final Ad Valorem Tax Exemption Application 11 • Phase 1 provides a non-binding preliminary evaluation based on projected data. Any preliminary indication of support for an Ad Valorem Tax Exemption shall not constitute approval, shall not create any vested rights, shall not be relied upon by any applicant, and shall be subject to final verification of project data and adoption of a separate exemption ordinance. • Phase 2 requires submission of Form DR-418 in accordance with Section 196.1995, F.S., Property Appraiser review, and verified project data. Describe real property improvements: Describe tangible personal property: APPLICANTS REQUESTING IMPACT FEE EXEMPTION MUST COMPLETE THE ADDENDUM BELOW J. IMPACT FEE ADDENDUM (If Applicable) In accordance with St. Lucie County Code of Ordinances Sec. 24-1 (f) 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. Road Impact Fee Zone (Unincorporated, City of Ft. Pierce, City of Port St. Lucie, North Island, FP Island, South Island): Legal Description: Please provide an electronic copy of the subject property's legal description K. CERTIFICATION Submission of this request does not constitute the granting of approval. All application requirements must be met prior to this project being presented for approval to the appropriate authority. St. Lucie County reserves the right to request additional information to ensure a complete review of this project. I acknowledge that all incentives are subject to performance-based compliance requirements,including annual reporting, minimum performance thresholds, and potential reduction,suspension, or recapture of incentives for failure to meet such requirements. OWNER'S AFFDAVIT I affirm, all necessary supporting evidence is true and correct to the best of my knowledge, all requirements of section 24-1 (e) of the St. Lucie County, FL Code of Ordinances will be met within one year of the issuance of the certificate 12 of occupancy, and all other necessary information as determined by the County Administrator has been provided and approved. This term may be extended by the Board of County Commissioners upon good cause shown. I agree to furnish such other necessary information as the Board of County Commissioners and / or the County Administrator of St. Lucie County, Florida may request regarding this impact fee mitigation application. I hereby certify that the information and valuation stated on the attached application by me is true, correct, and complete to the best of my knowledge and belief(If prepared by someone other than the owner, his/her declaration is attested on information of which the owner has knowledge). I acknowledge that should I seek the immediate issuance of a building permit, prior to action on the application, the impact fees imposed herein shall be paid prior to the release of said permit. Should the Board of County Commissioners approve and accept the mitigation application, the mitigation amount will be refunded. I acknowledge that St. Lucie County's Economic Incentive program not an entitlement program and that all incentives are based on continued program compliance. I further acknowledge that because this program is not an entitlement program, the Board may reject the request for economic incentives without cause and any fees waived shall not be recoupable by current or future applicants. Property Owner Information If more than one owner, please submit additional pages. This application and any supplemental application a part hereto shall not be considered complete without the notarized signature of all property owners of record, which shall serve as an acknowledgment of the submittal of this application for approval. The property owner's signature(s) shall also serve as authorization for the above applicant or agent to act on behalf of said property owner. Property Owner's Signature Property Owner's Name (Printed) Mailing Address Phone Number Email Address Fax Number STATE OF , COUNTY OF The foregoing instrument was acknowledged before me this day of 120 by who is personally known to me or who has produced as identification. Signature of Notary Type or Print Name of Notary Commission Number (Seal) 13