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2015-R-21 . RESOLUTION #2015-R-21 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF EDGEWATER, FLORIDA; APPROVING THE GUIDELINES FOR TAX ABATEMENT REQUEST POLICY, REPEALING RESOLUTIONS IN CONFLICT HEREWITH; PROVIDING FOR SEVERABILITY AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, §196.1995, Fla. Stat., provides that the governing authority of any municipality may call a referendum within its jurisdiction to determine whether the municipality may grant economic development ad valorem tax exemptions under §3, Article VII of the State Constitution, if the governing authority of the municipality votes to hold such referendum;and WHEREAS, the City Council of the City of Edgewater, Florida, included language on the November 4, 2014 ballot for the purpose of determining whether the city may grant such economic development ad valorem tax exemptions; and WHEREAS, the November 4, 2014 ballot for determining whether the city may grant such economic development ad valorem tax exemptions was passed by the majority of citizens of the City of Edgewater with a 63.77% approval; and WHEREAS, the City Council wishes to establish guidelines to consider Tax Abatement requests; and WHEREAS, this policy will provide procedures for city staff for processing of Tax Abatement requests; and WHEREAS, this policy will also provide guidelines for the City Council when Tax Abatement requests from new or expanding businesses in the City of Edgewater are for consideration. NOW, THEREFORE, be it resolved by the City Council of the City of Edgewater,Florida as follows: 1 2015-R-21 I � Section 1. The City Council has determined that the policy titled "Guidelines for Tax Abatement Request Policy" (attached hereto and incorporated herein) is hereby established and approved for inclusion into the Administrative Policy Manual. Section 2. If any section, subsection, sentence, clause, phrase, or portion of this Resolution,or application hereof, is for any reason held invalid or unconstitutional by any Court, such portion or application shall be deemed a separate, distinct, and independent provision, and such holding shall not affect the validity of the remaining portions or applications hereof. Section 3. All resolutions or parts of resolutions in conflict herewith are hereby repealed. Section 4. This resolution shall take effect immediately upon its adoption. Section 5. After a motion to approve by +d with second byaline,Awomcf. tROu,ef ,the vote on this resolution was as follows: AYE NAY Mayor Michael Ignasiak Councilwoman Christine Power Councilwoman Gigi Bennington �C _ Councilman Dan Blazi Councilman Gary Conroy 2015-R-21 . PASSED,APPROVED AND ADOPTED this 20th day of July, 2015. ATTEST: CITY COUNCIL OF THE CITY OF EDGEWATER,FLORIDA CLCULlsLRAA001___ By: • Bonnie Brown Michael Ignas City Clerk " Mayor Robin L. Matusick Paralegal For the use and reliance only by the City of Approved by the City Council of the City of Edgewater,Florida. Approved as to form and Edgewater at a meeting held on this 20th day legality by: Aaron Wolfe, Esquire of July,2015 under Agenda Item No. 8 d . City Attorney Doran, Sims, Wolfe, Kundid, Ciocchetti &Wagner 2015-R-21 EDG1 ATER City of Edgewater Section: City Council ADMINISTRATIVE POLICIES AND PROCEDURES Subject: Guideline for Tax Abatement Request Policy PURPOSE: These general and flexible guidelines are submitted for use in deliberation of tax abatement applications. Use Application: City of Edgewater Job Creation Incentive Form. The City Council, being the approval authority for tax abatement,will exercise wide discretion in evaluating each application,on a case-by-case basis, and under other applicable criteria found in the State of Florida Statutes. DISCUSSION: All tax abatement request considered by the City Council will include both real property and personal property for new or expanded businesses,which qualify in the categories below. Land value, by statute,will not be abated. On or before September 1 of each year a report will be submitted by the abated business to the City's Finance Director summarizing the number of employees and wage scale for those employees who were added to the payroll from the date the ordinance providing for tax abatement was adopted. These annual reports will be reviewed by the City to insure that the minimum criteria for which the company received tax abatement still exists. A copy of that report will be presented to the City Council for renewal/approval each year. The City reserves the right to audit the records of any company receiving tax abatement to insure that the minimum criteria for which the abatement was granted is being met each year. Employee positions used to meet the requirements for new and expanded businesses shall be evaluated according to F.S. 196.012. On November 4, 2014 during the General Election 63.77%of the voters authorized the City Council to grant , pursuant to the State Constitution, property tax exemptions to new businesses and expansions of existing businesses that are expected to create new, fulltime jobs in the municipality. APPLICATION PROCESS: 1) The requesting business shall complete and submit City of Edgewater Job Creation Incentive Form to the City's Economic Development Coordinator no later than March 1. 2) Within 60 days from the determination of a completed application,the City Clerk will place on the next available City Council agenda with the City Clerk completing the required advertisements for same. 3) City Council shall consider the request and determine if applicant qualifies for the requested Tax Abatement. City Council reserves the right to either deny or grant the request to all qualifying businesses permitted by law. City Council also reserves the right to grant a Tax Abatement to a qualifying business from an amount as low as 1%to no greater than 100%and for a period of 1 year but not to exceed 10 years as permitted by law. Date: 7/20/2015 Page 1 of 2 100.05 Guideline for Tax Abatement Request Policy 7-20-15 �5 fE c:n • %EDGE WATER" City of Edgewater Section: City Council ADMINISTRATIVE POLICIES AND PROCEDURES Subject: Guideline for Tax Abatement Request Policy Eligibility Category Pursuant F.S. 196.012 ❑ New Business Start-Up (Minimum additional 10 New Full Time Jobs in the State of Florida) paying an average wage for such new jobs that is above the average wage in the area ❑ Business Expansion (Minimum additional 10 Full Time Jobs in the State of Florida) paying an average wage for such new jobs that is above the average wage in the area, which principally engages in any of the operations referred to in F.S. 196.012(15)(a)1. ❑ Business Expansion (Minimum additional 25 Full Time Jobs in the State of Florida) the sales factor of which, as defined by s. 220.15(5), for the facility with respect to which it requests an economic development ad valorem tax exemption is less than 0.50 for each year the exemption is claimed; provided that such business increases operations on a site located within the same county, municipality, or both co-located with a commercial or industrial operation owned by the same business or organization under common control with the same business or organization, resulting in a net increase in employment of not less than 10 percent or an increase in productive output or sales of not less than 10 percent. ❑ Corporate Office (Minimum additional 50 Full Time Jobs in the State of Florida) An office space in this state owned and used by a business or organization newly domiciled in this state; provided such office space houses 50 or more full-time employees of such business or organization; provided that such business or organization office first begins operation on a site clearly separate from any other commercial or industrial operation owned by the same business or organization. Maximum Years of Abatement 10 years Qualified Wage Scale $15.55 per hour 50% $20.28 per hour 75% $27.04 per hour 100% Approved: n/Cdiqc/4...- 10 p.1.4 7/20' Michael Ignasiak, :yor Date Date: 7/20/2015 Page 2 of 2 100.05 Guideline for Tax Abatement Request Policy 7-20-15