rsc14068 economic development incentive

KAKRG0303 1 C14068

SUNRISE, FLORIDA

RESOLUTION NO.

A RESOLUTION OF THE CITY OF SUNRISE,

FLORIDA, EVIDENCING THE INTENTION OF THE

CITY TO PROVIDE AN ECONOMIC DEVELOPMENT

INCENTIVE TO PROJECT CARDINAL UNDER THE

FLORIDA QUALIFIED TARGETED INDUSTRY

(QTI) INCENTIVE PROGRAM (§288.106,

FLORIDA STATUTES) AND UNDER THE CITY’S

ECONOMIC DEVELOPMENT INCENTIVE AUTHORITY

IN CONSIDERATION OF PROJECT CARDINAL’S

EXPANSION IN THE CITY OF SUNRISE; AND

PROVIDING AN EFFECTIVE DATE.

WHEREAS, Project Cardinal wants to expand their

Sunrise operations, which would create 265 additional new

jobs and is hereafter referred to as the “Project;” and

WHEREAS, Project Cardinal has indicated to the City

that economic development assistance is necessary to make

its Project expansion economically competitive and

financially feasible; and

WHEREAS, under Florida’s Qualified Targeted Industry

(QTI) Incentive Program, Project Cardinal is eligible for

an incentive of $3,000 for every new job created. State QTI

guidelines require that 20% or $159,000 (based on 265 new

jobs) of the incentive be funded locally; and

WHEREAS, the City is also offering a one-time economic

development incentive of $50,000 upon Project Cardinal’s

obtaining a Certificate of Occupancy for its new office

space; and

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WHEREAS, to encourage Project Cardinal to hire Sunrise

residents, the City is offering an additional $1,500 per

job for every Sunrise resident hired by the company for at

least one year, up to 265 new jobs for a maximum of

$397,500.

NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION

OF THE CITY OF SUNRISE, FLORIDA:

Section 1. Authority for this Resolution. This

Resolution is adopted pursuant to (a) Article VIII, Section

2, Florida Constitution, (b) Chapter 166, Florida Statutes,

including specifically Section 166.021(8)(a), Florida

Statutes, (c) the City Charter of the City of Sunrise,

Florida and (d) Section 288.106, Florida Statutes.

Section 2. Findings. The City Commission hereby

ascertains, determines, finds and declares that:

(a) The presence of the Project in the City will bring

a significant number of persons to the City who will

generate expenditures and employment which result in

significant economic benefits to Broward County and the

City.

(b) The creation of jobs and employment opportunities

in the City avoids the economic and social liability of

unemployment, underemployment and lack of economic

participation by those affected thereby.

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(c) The Project will provide significant employment

opportunities in the City.

(d) New jobs increase the demand for housing in the

City and thereby strengthen residential property values.

(e) The Project will generate direct revenue to the

City from public service taxes for water, gas, electric and

telephone; franchise fees from solid waste, electric and

telephone; and business tax receipts; and

(f) The provision of increased opportunities for

gainful employment and economic participation, the

promotion of urban development and economic growth, the

development of the City, the enhancement of the City’s tax

base and tax revenues, and the increase in economic

diversification in the City, will encourage economic

development in the City, preserving and providing for the

public health, safety and welfare of the residents of the

City.

(g) The City affirms its financial support from the

City in an amount not to exceed $606,500 which consists of

the following:

(i) a one-time economic development incentive

of $50,000 upon Project Cardinal obtaining a

Certificate of Occupancy for its new office

space;

(ii) $1,500 per job for each Sunrise

resident hired for at least one year for up to

265 new jobs, up to a maximum of $397,500; and

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(iii) up to $159,000 as the local financial

support for the Qualified Target Industry

Business for the Qualified Target Inducing Tax

Refund Program;

as appropriate consideration for Project Cardinal’s

expansion in the City; and the amount of such financial

support is fully justified and far outweighed by the extent

of the public benefits expected to be derived from the

Project and is reasonable and not excessive, taking into

account the needs of Project Cardinal to make the Project

economically competitive and financially feasible, and the

extent of the public benefits expected to be derived from

the Project.

(h) The financial support to Project Cardinal will

provide assistance to enable Project Cardinal to expand the

Project in the City, will make the Project in the City

economically competitive and financially feasible, and is

in the interest of the residents of the City to provide

such assistance as provided in this Resolution.

(i) The authorizations provided by this Resolution are

for a public purpose, which far outweighs the incidental

benefit conferred on Project Cardinal.

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Section 3. Authorizations.

(a) The City hereby recommends that Project Cardinal

be approved as a Qualified Target Industry Business

pursuant to Florida Statutes §288.106.

(b) The City further authorizes the necessary

commitment of local financial support for the Qualified

Target Industry Business for the Qualified Target Industry

Tax Refund Program in the amount of up to $159,000; and

agrees that this amount will be available consistent with

the guidelines set forth by the Florida Department of

Economic Opportunity and will be paid to the Florida

Economic Development Trust Fund with the stipulation that

these funds are intended to represent the “local

participation” required by Florida Statutes §288.106.

(c) The City hereby authorizes a one-time economic

development incentive of $50,000 upon Project Cardinal

obtaining a Certificate of Occupancy for its new office

space.

(d) The City Commission hereby authorizes the

implementation and disbursement of financial support for

the Project not to exceed $397,500, or $1,500 per job for

up to 265 Sunrise residents that are hired for one year by

Project Cardinal.

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(e) The City Commission hereby authorizes the

implementation and disbursement of a grant for subsections

(c) and (d) above. The terms and conditions of the grant

as well as the job verification details will be set forth

in an agreement to be executed by the parties.

Section 4. Agreement. The Mayor is authorized to

execute an agreement with Project Cardinal subject to the

City Attorney’s final review and approval of the terms,

including the contingencies contained in the City’s

proposed incentive offer.

Section 5. Funding. Funds for the payments called for

in this Resolution will be expended from the Non-

Departmental Economic Development Fund.

Section 6. Effective Date. This Resolution shall be

effective immediately upon its passage.

PASSED AND ADOPTED THIS ______ DAY OF _____________,

2014.

___________________________

Mayor Michael J. Ryan

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Authentication:

_____________________

Felicia M. Bravo

City Clerk

MOTION: _______

SECOND: _______

KERCH: ____

ROSEN: ____

SCUOTTO: ____

SOFIELD: ____

RYAN: ____

Approved by the City Attorney

as to Form and Legal Sufficiency.__________________________

Kimberly A. Kisslan