HomeMy WebLinkAbout26-095 - sent to recording 5/27/26 RESOLUTION No. 2026-95
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF ST.
LUCIE COUNTY, FLORIDA, RESCINDING RESOLUTION NO. 03-258;
ESTABLISHING UPDATED GUIDELINES FOR THE ECONOMIC
DEVELOPMENT AD VALOREM TAX EXEMPTION PROGRAM; ALIGNING THE
PROGRAM WITH THE COUNTY'S ECONOMIC INCENTIVE SCORING
MATRIX; PROVIDING FOR PERFORMANCE-BASED EXEMPTIONS,
AGREEMENTS,AND RECAPTURE; REQUIRING FISCAL IMPACT ANALYSIS;
STANDARDIZING PARTIAL COMPLIANCE THRESHOLDS; PROVIDING FOR
FORCE MAJEURE RELIEF; ESTABLISHING CURE PERIODS; PROVIDING
FOR DEBARMENT IN CASES OF FRAUD; AND PROVIDING FOR AN
EFFECTIVE DATE.
WHEREAS, the Board of County Commissioners of St. Lucie County, Florida, has made the
following determinations:
1. On October 6, 1992, the Board of County Commissioners adopted Ordinance No 92-24 which
amended Chapter 1-19.3 (TAXATION) of the Code of Ordinances of St Lucie County Florida, by
creating Article V- Economic Development Ad Valorem Tax Exemption. Section 1-19.3-59 (Eligibility
Business or Industry) of Ordinance No 92-24 provides for the formulation of criteria for determining
the length of an exemption and the percentage amount of an exemption pursuant to resolution of this
Board; and
2. On October 28, 2003, the Board of County Commissioners adopted Resolution No. 03-258
establishing guidelines for the Economic Development Ad Valorem Tax Exemption Program; and
3. The Board of County Commissioners has determined that the existing guidelines rely on outdated
scoring methodologies and do not reflect current economic development priorities; and
4. The Board of County Commissioners has adopted an Economic Incentive Program utilizing a
performance-based scoring matrix to evaluate job creation, wage levels, and capital investment; and
5. The Board of County Commissioners finds that aligning the Ad Valorem Tax Exemption Program
with the County's current incentive framework will promote transparency, consistency, and
accountability; and
6. The Board of County Commissioners further finds that economic incentives must be conditioned
upon measurable public benefit and include enforceable recapture provisions in the event of
nonperformance or relocation; and
7. The Board of County Commissioners desires to rescind Resolution No. 03-258 and adopt updated
guidelines consistent with current policy objectives and legal standards.
NOW, THEREFORE, BE IT RESOLVED by the Board of County Commissioners of St. Lucie
County, Florida:
1
SECTION 1. RESCISSION.
Resolution No. 03-258 is hereby rescinded in its entirety.
SECTION 2. PURPOSE AND INTENT.
This Resolution establishes updated administrative guidelines for the Economic Development Ad
Valorem Tax Exemption Program pursuant to Section 196.1995, Florida Statutes, and Ordinance No. 92-
24, as amended.
The program is intended to promote high-wage job creation, encourage significant capital investment,
support long-term economic growth, and ensure accountability through performance-based incentives.
SECTION 3. APPLICABILITY.
These guidelines shall apply to all applications for Ad Valorem Tax Exemptions considered by the
Board. Nothing herein shall be construed to create any right or entitlement to an exemption, nor shall any
preliminary evaluation, scoring outcome, or staff recommendation be deemed binding upon the Board of
County Commissioners.
SECTION 4. SCORING AND EVALUATION
Eligibility and exemption levels shall be determined based on the St. Lucie County Economic
Incentive Scoring Matrix and information submitted through the County's Economic Incentive Application,
as adopted by the Board of County Commissioners.
The evaluation of an application pursuant to the County's Economic Incentive Scoring Matrix may include
preliminary consideration of a proposed Ad Valorem Tax Exemption based on projected job creation,
wage levels, and capital investment.
Any such preliminary evaluation is advisory in nature and intended solely to inform the Board of County
Commissioners during its consideration of economic incentive requests.
Any preliminary indication of support for an Ad Valorem Tax Exemption shall not constitute approval,
shall not create any vested rights, and shall be subject to final verification of project data, submission of
a complete application pursuant to Section 196.1995, Florida Statutes, including Form DR-418, and
adoption of a separate exemption ordinance by the Board of County Commissioners.
For any Ad Valorem Tax Exemption award anticipated to generate a cumulative tax benefit as determined
by the County, in excess of One Hundred Thousand Dollars ($100,000) over the term of the exemption,
the applicant shall submit, or authorize the Economic Development Council of St. Lucie County, Inc. (the
"EDC") to prepare and submit, a Fiscal Impact Analysis ("FIA"). The FIA shall demonstrate a minimum
net fiscal benefit ratio of 1.2 to 1.0 over the term of the exemption and include projections of net new
County revenues and total exemption value. The Board of County Commissioners may waive the FIA
requirement upon a specific finding of exceptional public benefit.
SECTION 5. EXEMPTION STRUCTURE AND DURATION.
The total score achieved under the Economic Incentive Scoring Matrix shall determine both the
maximum exemption percentage (intensity) and the maximum duration of the exemption. The Economic
Incentive Scoring Matrix shall serve as the primary basis for determining eligibility and the maximum
allowable exemption under this program. Points are not cumulative across tiers within each category and
shall be applied based solely on the highest applicable tier achieved.
2
A. Maximum Exemption (Intensity Cap)
Score Range Maximum Exemption
•
30—49 points (Limited Impact) Up to 20%, at the discretion of the BOCC
50 —64 points (Base Impact) Up to 50%
65 — 79 points (High Impact) Up to 75%
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%
Awards within the highest scoring tier(110 - 145 points) are intended to be limited to projects demonstrating
exceptional economic impact and shall be awarded at the discretion of the Board of County Commissioners.
Limited impact projects are expected to receive shorter duration exemptions consistent with reduced public
benefit.
B. Default Duration and Declining Schedule
Nothing herein shall be construed as creating an entitlement to any exemption level, duration, or
schedule. The duration and structure of exemptions must be approved by the Board and may be
based on a declining schedule, not to exceed ten (10) years. The Board has discretion to adopt
exemptions at any level, duration, or schedule. The exemption schedules below are
recommendations for the Board to consider, based on economic impact of the project and verified
public benefit:
110 - 145 Points (Exceptional Impact)
• Up to 10 years
• Recommended schedule:
o Years 1 — 5: up to 100%
o Year 6: up to 90%
o Year 7: upto80%
o Year 8: up to 60%
o Year9: upto40%
o Year 10: up to 20%
95 - 109 Points (Strategic Impact)
• Up to 8 years
• Recommended schedule:
o Years 1 —4: up to 90%
o Year 5: up to 75%
o Year 6: up to 60%
o Year 7: up to 40%
o Year 8: up to 20%
80 — 94 Points (Very High Impact)
• Up to 8 years
• Recommended schedule:
o Years 1 —4: up to 80%
o Year 5: upto60%
o Year 6: up to 50%
o Year 7: up to 40%
o Year 8: up to 20%
3
65— 79 Points (High Impact)
• Up to 6 years
• Recommended schedule:
o Years 1 — 3: up to 75%
o Year 4: up to 60%
o Year 5: up to 40%
o Year 6: up to 20%
50 — 64 Points (Base Impact)
• Up to 5 years
• Recommended schedule:
o Years 1 — 2: up to 50%
o Year 3: up to 40%
o Year 4: up to 20%
o Year 5: up to 10%
30 —49 Points (Limited Impact)
• Up to 3 years
• Recommended schedule:
o Year 1 —2: up to 20%
o Year 3: up to 10%
C. Board Discretion.
The Board retains full discretion to award less than the maximum allowable exemption. The duration
of any exemption shall not exceed ten (10) years, consistent with Florida law.
SECTION 6. PERFORMANCE AGREEMENT REQUIREMENT
Any Ad Valorem Tax Exemption shall be granted only by separate ordinance adopted by the
Board of County Commissioners in accordance with Section 196.1995, Florida Statutes. No exemption
shall take effect unless and until such ordinance is adopted.
In addition, all approved exemptions shall be memorialized in a written agreement approved by the Board
and in a form approved by the County Attorney.
Such agreement shall include, at a minimum:
• Job creation commitments and schedule
• Wage requirements
• Capital investment commitments
• Reporting requirements
• Compliance verification procedures
• Clawback and recapture provisions
SECTION 7. COMPLIANCE, REPORTING, AUDIT, AND RECORD RETENTION.
Recipients shall provide documentation sufficient to verify compliance, including but not limited to
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.
All exemptions shall be subject to annual certification of compliance by the County and the Property
4
Appraiser, as applicable, prior to continuation of the exemption for each subsequent tax year. No
exemption shall be applied or continued for any tax year in which compliance is not verified.
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 8. PARTIAL PERFORMANCE.
In the event a recipient achieves at least eighty-five percent (85%) of its required performance
obligations for a given reporting period, the County may authorize a prorated exemption based on actual
performance, as determined by the Board of County Commissioners.
Failure to achieve at least eighty-five percent (85%) of required performance obligations for a given
reporting period shall result in the forfeiture of incentives for that year.
This graduated compliance threshold is intended to be consistent with the minimum performance
standard applied to the Job Growth Investment Grant program and Impact Fee Mitigation program under
the County's Economic Incentive Amendments Resolution and the Incentive Scoring Matrix, ensuring
equitable and administratively consistent treatment of recipients across all County economic
development incentive programs.
A. Cure Periods
Prior to the declaration of default or forfeiture of any incentive benefit, the County shall provide the
Recipient with written notice of noncompliance and a reasonable opportunity to cure, as follows:
(a) Technical Default — Failure to timely submit annual compliance certifications, required forms,
insurance documentation, or other administrative requirements shall be treated as a technical
default; the County shall provide thirty (30) calendar days' written notice and opportunity to cure.
(b) Compliance Deficiency — Where performance thresholds are achieved at between fifty percent
(50%) and eighty-four percent (84%) of required levels for a reporting period, the County shall
provide ninety (90) calendar days' written notice and a cure period.
(c) Material Default — Performance below fifty percent (50%) of required levels for two consecutive
reporting periods, or events of fraud, intentional misrepresentation, or cessation of operations,
shall constitute material default and shall result in immediate suspension of benefits pending
Board of County Commissioners review.
SECTION 9. CLAWBACK AND RECAPTURE.
The Board of County Commissioners reserves the right to terminate or modify any exemption in
the event of non-compliance.
The County shall retain the right to require repayment of incentives in full or on a prorated basis for failure
to meet performance obligations.
In the event of relocation outside the County, cessation of operations, or material breach of agreement,
the County shall require full repayment of all incentives received, pursuant to a recorded repayment
agreement or other enforceable mechanism, as approved by the County Attorney. Repayment obligations
5
shall survive termination or expiration of the incentive agreement.
Any Recipient found to have obtained an exemption through fraud or misrepresentation shall be subject
to:
(a) Debarment from the County's incentive programs for a period of five (5) years; and
(b) Referral for civil or criminal action.
In cases of intentional fraud, full recoupment shall be required from the original award date. Interest shall
accrue on amounts owed from the date of the original award at the Wall Street Journal prime rate plus
two percent (2%) per annum.
SECTION 10. COMMENCEMENT, SUNSET PROVISION, AND FORCE MAJEURE.
Any approved Ad Valorem Tax Exemption agreement shall expire if the applicant fails to
commence construction within twenty-four (24) months of approval, unless extended by the Board for
good cause shown. Any preliminary evaluation or indication of support provided prior to adoption of an
exemption ordinance shall expire concurrently with the expiration of the underlying application unless
otherwise extended by the Board.
A recipient whose performance obligations are materially prevented by extraordinary events beyond its
control may request relief. Force Majeure shall not include general economic conditions, financing issues,
or changes in business strategy. Relief may include and is subject to Board of County Commissioner
approval:
(1) Extensions of deadlines;
(2) Suspension of compliance periods; or
(3) Prorated adjustments.
SECTION 11. ADMINISTRATIVE AUTHORITY.
The County Administrator or designee is authorized to administer this program, including review
of applications, application of the Economic Incentive Scoring Matrix, verify compliance and make
recommendations to the Board of County Commissioners, including coordination with the Property
Appraiser, review and verification of annual reports, and administration of compliance and enforcement
provisions consistent with approved agreements.
SECTION 12. CONSISTENCY WITH LAW.
This Resolution is intended to be consistent with §196.1995, F.S. and Ordinance No. 92-24, as
amended. In the event of a conflict, applicable law shall control.
SECTION 13. SEVERABILITY.
If any provision of this Resolution is held invalid, such invalidity shall not affect the remaining
provisions.
SECTION 14. 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
6
Commissioner James Clasby AYE
Commissioner Erin Lowry AYE
Commissioner Cathy Townsend ABSENT
PASSED AND DULY ADOPTED this 19th day of May, 2026.
ATTEST: BOARD OF COUNTY COMMISSIONERS
ST. LUCIE COUNTY, FLORIDA
��GpMM/ss/O �>
12Li. i J� s y�
� 1p BY-
DEPUTY CL: 'Y it"; �t w CHAIR
* ;.��.: � PPRO D AS TO LEGAL FORM AND
�' p C E NESS:
`Gcie COUNT'*-
.
COUNTY ATTORNEY
7