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2017-O-22ORDINANCE NO. 2017-0-22 AN ORDINANCE OF THE CITY OF EDGEWATER, FLORIDA, GRANTING AN ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTION TO Benchmark Idaho, LLC, DBA NORTHWEST LINEMAN COLLEGE, PURSUANT TO FLORIDA STATUTES SECTION 196.1955; PROVIDING FOR SEVERABILITY AND APPLICABILITY AND ESTABLISHING AN EFFECTIVE DATE. WHEREAS, Pursuant to § 196.1995, Fla. Stat., the City of Edgewater held a referendum within its jurisdiction on November 4, 2014 ballot to determine whether the municipality may grant economic development ad valorem tax exemptions under §3, Article VII of the State Constitution; and WHEREAS, on November 4, 2014 during the General Election 63.77% of 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; and WHEREAS, the Benchmark Idaho, LLC, , DBA Northwest Lineman College (NLC), a private adult vocational college, has located a campus in the City of Edgewater with its tangible personal property at 501 Pullman Rd. Edgewater, FL 32132; and WHEREAS, the City has an interest in opportunities to create high paying jobs for its citizens and recognizes the benefits that will flow to individuals within the Region by NLC locating a training school and facility within the City which will best meet the geographic, economic, and population -related needs of the City; and WHEREAS, the City recognizes the benefits of new jobs created by NLC providing additional technical training services within the City and acknowledges that NLC will be making a significant capital and operating investment thereby creating a new training facility within the 2017-0-22 1 ParkTowne Industrial Center of the City to provide training opportunities for higher wage jobs within the Region; and, WHEREAS, Benchmark Idaho, LLC is an affiliated entity of NLC that will own land and a training facility and will lease such property to NLC under a lease that requires NLC to pay all property taxes; and, WHEREAS, the cooperative effort between the parties will mutually benefit the City, Benchmark Idaho, LLC and NLC; and, WHEREAS, the - Benchmark Idaho, LLC, (dba Northwest Lineman College) is seeking an economic development ad valorem tax exemption, pursuant to §196.1995, Fla. Stat., anticipated to begin the tax year of 2017; and WHEREAS, on July 20, 2015, the City Council approved Resolution 2015-R-21 Guidelines 100.05 for Tax Abatement Request Policy; and NOW, THEREFORE, be it resolved by the City Council of the City of Edgewater, Florida: Section 1. On or before December 7, 2015 Benchmark Idaho, LLC, (dba Northwest Lineman College) had submitted a Tax Abatement Application Form based on their business plan for a new business. NLC had also included a draft application and worksheet for Council to discuss available options based on F.S. 196.012 and 100.05 Edgewater Guidelines for Tax Abatement Request Policy. Section 2. At the December 7, 2015 City Council meeting the City Council had approved a Memorandum of Understanding (MOU) between, Benchmark Idaho, LLC and NLC FL, Inc, and the City of Edgewater. 2017-0-22 2 Section 3. The City Council on December 7, 2015 approved an Ad Valorem Tax Abatement of 100% of approved new ad valorem taxes for the maximum of (10) ten years (F.S. 196.1995) once the facility was developed and a minimum of ten (10) new Florida jobs are created per F. S. 196.012. Section 4. NLC must provide confirmation of the number of employees and wage rates as NLC shall meet the criteria established by Florida Statutes 196.012 and the City of Edgewater Tax Abatement Guidelines 100.05 to qualify for Tax Abatement. Section 5. As addressed in the December 7, 2015 MOU NLC FL, Inc had acknowledged that the City may elect to terminate MOU if NLC fails to comply with one or more terms of MOU after notice by the City of such noncompliance and a reasonable opportunity to cure any noncompliance. Section 6. Larry Bartlett, Property Appraiser for County of Volusia, Florida, has provided the City of Edgewater, based upon estimated value of the property prior to the improvements and estimated value of the property after such improvements have been made for the 2017 Tax year, the following information regarding the proposed tax abatement for Parcels 7452-220A-0070 and 7452 -22 -OA -0011: (2016) Estimated Combined value of properties prior to improvements Estimated Combined value of properties including Tangible Personal Property after improvements (2017) $ 947,501 $ 2,063,249 Section 7. The City Council hereby finds that the total amount of revenue available to the City of Edgewater from ad valorem tax sources for this current fiscal year is $ 5,024,786 (2016). 2017-0-22 3 Section 8. Based upon estimated values of the improvements and information provided by the Property Appraiser, the City Council hereby finds that the estimated ad valorem revenue loss to the City of Edgewater attributable to the proposed exemption of NLC FL, Inc, herein (had the property for which the exemption is requested otherwise been subject to taxation) will be $7,475 for current fiscal year for the improved property and tangible personal property due to the creation of the Northwest Lineman College. Section 9. Subject to the completion of the creation and improvements of the facility operated by the NLC as well as meeting the requirements of §196.1995, Fla. Stat., and City of Edgewater Tax Abatement Guidelines 100.05 (Attached hereto as Exhibit "A") anticipated to begin 2017, the City Council hereby grants to Benchmark, NLC an exemption for ad valorem taxation of up to one hundred percent (100%) of the eligible assessed value of the aforesaid improvements, based upon the City of Edgewater Tax Abatement Guidelines 100.05 and annual audit review. Section 10. Subject to yearly review for determination that the proposed expansion meets the requirements of §196.1995, Fla. Stat., and the City of Edgewater Tax Abatement Guidelines 100.05, Benchmark, NLC shall be eligible for renewal of said tax exemption for each year subsequent to the 2017 Tax year, up to and including the tax year of 2026 Section 11. The City Council finds that the amount eligible for ad valorem tax exemption may change, based upon changes in the City's millage rate, which is adopted on an annual basis and the Volusia County Tax Appraiser's assessment of property values. Similarly, ad valorem tax exemptions will be reviewed on an annual basis pursuant to City Council action after annual audit review, as prescribed in the City of Edgewater Tax Abatement Guidelines 100.05. 2017-0-22 4 Section 12. Conflicting Provisions. All resolutions or parts of resolutions in conflict herewith are hereby repealed. Section 13. Severability. If any portion of this resolution is for any reason held or declared to be unconstitutional, inoperative, or void, such holding shall not affect the remaining portions of this resolution. If this resolution or any provisions thereof shall be held to be inapplicable to any person, property, or circumstances, such holding shall not affect its applicability to any other person, property or circumstance. Section 14. Motions and Adoption. After Motion to approve by Councilman Conroy with Second by Councilwoman Vogt, the vote on first reading of this ordinance held on June 5, 2017, was as follows: AYE NAY Mayor Mike Ignasiak X Councilwoman Christine Power X Councilwoman Amy Vogt X Councilman Dan Blazi X Councilman Gary Conroy X 2017-0-22 5 After Motion to approve by �L2sY L'C�j ,,,-,_max ; with Second by held on July 17, 2017, was as follows: the vote on the second reading of this ordinance AYE NAY Mayor Mike Ignasiak-� Councilwoman Christine Power Councilwoman Amy Vogt Councilman Dan Blazi Xc �3'e-.Ct Councilman Gary Conroy This ordinance shall take effect upon adoption. PASSED AND DULY ADOPTED this 17th day of July 2017. ATTEST: CITY COUNCIL OF THE CITYY OF EDGEWATE , FLORIDA l-� - -�1 ' 7�•:c-[.-<�'111G-j„l _ $y; /////Zzy '/ Robin L. Matusick Mike Ignasiak City Clerk/Paralegal For the use and reliance only by the City of Edgewater, Florida. Approved as to form and legality by: Aaron R. Wolfe, Esquire City Attorney Doran, Sims, Wolfe & Ciocchetti 2017-0-22 6 Mayor Approved by the City Council of the City of Edgewater at a meeting held on this 17`h day of July, 2017 under Agenda Item No. 8 6-1- CITY OF EDGEWATER JOB CREATION INCENTIVE FORM SECTION 1: COMPANY INFORMATION Legal name of the Applicant NLC FL, Inc. dba Northwest Lineman Center Name of Ultimate Parent Company (if applicable)_Grid Training Corporation City _Meridian State/Province _ID Country _USA Tel: 208-888-4817 x158 E-mail: 1palmerplineman.edu List each Principal Executive Officer, Director (or any person who performs a similar function regardless of title) of the Applicant and the Ultimate Parent Company (if applicable), and any person or entity that Controls the Applicant. Attach additional sheets if necessary. Name Title or Position Percent of Ownership if Greater than 50% See attached Statement National headquarters International headquarters Not applicable c`cpl n will serve as aleFlorida campus for »orl1mcst Lineman SECTION 2: PROJECT LOCATION Which of the followin , best describes the location of the Project: Regional headquarters If it is a regional headquarters, what region? D National headquarters International headquarters Not applicable c`cpl n will serve as aleFlorida campus for »orl1mcst Lineman CITY OF EDGEWATER 104 N. RIVERSIDE DRIVE, P.O. BOX 100, EDGEWATER, FL 32132 TEL: 386-424-2400 FAX: 386-424-2409 SECTION 3: CAPITAL INVESTMENT List the projected capital investment to be made in Florida in connection with this Project (by type and year): Calendar Year: 2015 2016 2017 2018 2019 Total Land or Building $ $1,574,434 $ $ $ $1,574,434 Construction / Renovations $19,900 $1,847,415 $135,000 $95,000 $55,000 $2,152,314 Manufacturing Equipment $ $ $ $ $ $ R&D Equipment $ $ $ $ $ $ Other Equipment (computer equipment, office furniture, etc.) $ $606,005 $88,000 $57,000 $102,500 $853,504 Total Capital Investment $19,900 $4,027,852 1 $223,000 $152,000 $157,500 $4,580,252 SECTION 4: JOB CREATION SUMMARY Phase Number of net new full-time equivalent Florida 'obs created in the business unitcreated Date by which jobs will be 112 New FTE's _ 12/31/2017 II 7 New FTE's 12/31/2018 III 3 New FTE's 12/31/2019 Total 22 New FTE's — - - --- SECTION 5: JOB CREATION — ANNUAL PROJECTIONS List the number of Full -Time Jobs to be retained or created and the total per year. __Retained Created Total Year 1-2016 10 10 Year 2 -20172 Year 3-2018..�,-7 .---- 7----.- 2 7 - Year 4 - 2019 -- — - - -- 3 _ _ 3 Total .22 22 CITY OF EDGEWATER 104 N. RIVERSIDE DRIVE, P.O. BOX 100, EDGEWATER, FL 32132 TEL: 386-424-2400 FAX: 386-424-2409 SECTION 6: JOE CREATION — ANNUAL PROJECTIONS List the Projected Annual amount of New and Total Payroll per year. Year 1 New Payroll = $684,000 Total Annual Payroll = $684,000 Year 2 New Payroll = $167,000 Total Annual Payroll = $851,000 Year 3 New Payroll = $446,000 Total Annual Payroll = $1,297,000 Year 4 New Payroll= _ $211,000 Total Annual Payroll = $1,508,000 Cumulative New Payroll = $1,508,000 Cumulative Total Payroll = 1 $4,340,000 The undersigned person hereby affirms that lie or she has been duly authorized and empowered to verify, execute and deliver this Application and all information submitted in connection herewith, is complete and accurate and contains no misstatements, misrepresentations, or omissions of material facts, to the best of his or her knowledge and belief. Signature &--&rt n4 W h I �nr-V Name Date Title CITY OF EDGEWATER 104 N. RIVERSIDE DRIVE, P.O. BOX 100, EDGEWATER, FL 32132 TEL: 386-424-2400 FAX: 386-424-2409 STATEMENT ATTCHED TO APPLICATION FOR JOB CREATION INCENTIVE FORMFOR: NLC FL., Inc. dba Northwest Lineman Center NLC FL., Inc. is a wholly owned subsidiary of Grid Training Corporation Name NLC FL., Inc. Aaron Howell Leanna Whitney Scott Tschirgi Grid Training Corporation Aaron Howell Leanna Whitney Mike Hennesey Alan Drew Anne King Jeanne Fowler Charles Gagel Josh Luck Jacob Phelps Scott Tschirgi Title or Position President and Director Treasurer Secretary Percent of Ownership if Greater than 50% N/A N/A President/ Director 51.25% Chief Culture Officer/ Treasurer/ Director Chief Growth Officer/ Director SVP R&D/Director Vice President/ Director Director Chief Education Officer Chief Operating Officer/ Director VP Curriculum & Instruction/ Director General Counsel/ Secretary Section 3: Capital Investment. Note (a) Benchmark Idaho LLC (an affiliated entity of NLC FL., Inc. dba Northwest Lineman Center and Grid Training Corporation) has purchased approximately 16 acres of land and a building of approximately 28,000 sf. This schedule includes our current costs thru December 31, 2016 for purchase and improvements to the Iand and building. Benchmark Idaho LLC has entered into a triple net lease agreement with NLC FL., Inc. for the facility and will require NLC FL., Inc. to pay all applicable property taxes on the leased facility. - _ 1 Volusia County FLORIDA Larry Bartlett, J.D. Property Appraiser April 19, 2017 Jonathan C. McKinney, CGFO Assistant City Manager City of Edgewater 104 North Riverside Drive Edgewater Florida 32132 Re: Economic Development Ad Valorem Tax Exemption Benchmark Idaho, LLC (Northwest Lineman Center) Dear Mr. McKinney, This is in reference to your recent request for the estimated amount of taxes for Benchmark Idaho, LLC as a result of a proposed Economic Development Tax Exemption. The Property Appraiser's Office was given the following criteria in which the estimated tax amounts were based upon: Benchmark Idaho LLC purchased property at 501 Pullman Road (parcel ID 7452 -22 -OA - 0070), along with a neighboring parcel (7452 -22 -OA -0011) to open the Northwest Lineman Center. There was an existing building on the 501 Pullman Road site, which was totally remodeled to fit the needs of the school. The value attributable to the improvements made to both parcels is $525,132. This calculation does not include county -wide building rate increases and increases to the market, which would have occurred regardless. The value of the Tangible Personal Property listed on the application (excluding landscaping) is estimated to be $590,616. Based on these figures, we have estimated the total tax impact to the City of Edgewater to be $7,475 for the 2017 Tax Roll. It should also be noted that the 60 X 80 pavilion and restrooms located on lot 0011 are not included in this estimate as they were not completed prior to January 1, 2017. The value of these improvements is anticipated to be approximately $104,000, with a tax impact of $697. These improvements can be added to the 2018 exemption, if so desired by the city and stated in the resolution. 123 West Indiana Avenue, Room 102 • Deland, FL 32720-4270 TELEPHONE: DELAND (386) 736-5901 • DAYTONA BEACH (386) 254-4601 • NEW SMYRNA BEACH (386) 423-3315 • ORANGE CITY (386) 775-5257 vcpa.vcgov.org In accordance with Florida Statute 196.1995(9): (A) The total revenue available to the City of Edgewater (2016) $5,024,786 (B) Estimate of revenue impact, previous applications 0 (C) Estimate of revenue impact, this application $ 7,475 (D) Determination of status of property listed as meeting requirements of Florida Statute 196.012 (14) or (15) as a new business, expansion of existing business or neither: By the information provided, it does appear that Benchmark Idaho, LLC would meet the criteria as a new business. Please keep in mind, that these figures have been based on information provided by the applicant and the municipality, and also based on the 2016 millage rates. These estimates may not reflect the exact amounts that will be exempt for the 2017 Tax Roll, but may serve to assist your City Council for application approval purposes. Please contact me if you need any questions regarding this matter or if I can be of any further assistance. Sincerely, ylo� ��� Janice Cornelius, C.F.E. Chief Deputy Property Appraiser PARCEL #: 52-17-34-25-00-0010-0205 STATE OF FLORIDA Tangible Personal Property Tax Return 7452-25-00-0010-0205 COUNTY of CONFIDENTIAL § 193.074 F.S. ALT. KEY: 7860953 VOLUSIA As Required by §§ 193.052, F.S. MILL CODE: 604 DISTRICT: 4 PC CODE: 611699 2017 RETURN TO COUNTY PROPERTY APPRAISER BY APRIL 1 TO AVOID PENALTIES FEDERAL EMPLOYER IDENTIFICATION NUMBER SOCIAL SECURITY NUMBER NAICS NUMBER Phone:(386)254 4621 Fax:(386)239-7717 7 19 88 MAIL COMPLETED RETURN TO: BUSINESS NAME (DBA) AND MAILING ADDRESS: Larry Bartlett, J.D. NLC FL INC VOLUSIA COUNTY PROPERTY APPRAISER NORTHWEST LINEMAN CENTER 250 N. Beach St., Room 109 7600 S MERIDIAN RD Daytona Beach, FL 32114 MERIDIAN ID 83642 BUSINESS 205 PARKTOWNE BLVD EDGEWATER LOCATION: 32132 If Name or Address is incorrect, please make necessary corrections. THIS RETURN IS SUBJECT TO AUDIT WITH ALL RECORDS KEPT BY YOU, INCOMPLETE ENTRIES ARE SUBJECT TO PENALTIES 1. Please give Name and Telephone Number of Owner or Person in Charge. 5. Date You Began Business In This County: Name: Fiscal Year: From To Tel. #: Fax #: 6. Describe the Nature of your Business: Corp Name/DBA: NORTHWEST LINEMAN CENTER 2. Actual Physical Location of this Property (Street Address - NOT PO BOX): 7. Trade Level (Circle all that apply): Retail Wholesale Manufacturing Professional Service Agricultural Leasing/Rental Other 3. Is Your Business or Farm Located Within the Incorporated Limits of a City? 8. Did you file a Tangible Property Return in this County last year? Yes No _ If Yes, what City? EDGEWATER Yes No _ If Yes, under what Name and Address? 4. Did you file a Tangible Personal Property Return under any other Name? Yes No If Yes, Please Show Name Exactly as it Appeared on 9. Former Owner of the Business: your Most Recent Personal Property Tax Bill or Current Return 10. If Business Sold, to whom? 1 Oa. Were all assets sold? Yes No Sale Price? SCHEDULE #1 LEASE LEASED LOANED AND RENTED EQUIPMENT (PLEASE COMPLETE IF YOU HOLD EQUIPMENT BELONGING TO OTHERS) PURCHASE YEAR LEASE RENT PER RETAIL INSTALLED OPTION NAME AND ADDRESS OF OWNER OR LESSOR DESCRIPTION ACQUIRED TERM MONTH COST NEW YES NO SCHEDULE#2 TAXPAYER'S ESTIMATE OF: EQUIPMENT OWNED BY YOU BUT RENTED, LEASED, OR HELD BY OTHERS CONDITION FAIR (GOOD) RETAIL LEASE NAME/ADDRESS OF LESSEE YEAR RENT PER MARKET (AVG.) INSTALLED NO. ACTUAL PHYSICAL LOCATION DESCRIPTION AGE PURCHASED MONTH TERM VALUE POOR COST NEW Under penalties of perjury, I declare that I have read the foregoing tax CONTINUE ON A SEPARATE SHEET IF NECESSARY return and that the facts stated are true. If prepared by someone other than the taxpayer, the preparer signing this return certifies that his/her LESS EXEMPTION: [ ] WIDOW [ ] WIDOWER [ ] BLIND declaration is based on all information of which he/she has any knowledge. [ ] TOTAL DISABILITY [ ] OTHER DATE: TITLE: TAXABLE VALUE SIGNED: DEPUTY PENALTY (TAXPAYER -SIGNATURE REQUIRED) SIGNED: PLEASE SIGN AND DATE YOUR RETURN. SEND THIS ORIGINAL (PREPARER) COUNTY APPRAISER'S FFI E BY APRIL 1st. UNSIGNEDRETURNS CANNOT BE ACCEPTED BY THE APPRAISER'S OFFICE. ADDR: NOTICE: IF YOU ARE ENTITLED TO A WIDOW S, WIDOWER'S, OR DISABILITY PHONE NO: PREPARER'S ID: EXEMPTION ON PERSONAL PROPERTY (NOT ALREADY CLAIMED ON REAL ESTATE). PLEASE CONSULT APPRAISER. ALL INFORMATION ON BOTH SIDES MUST BE COMPLETED IN FULL TO BE A VALID RETURN Important Note: Be sure to include all new acquisitions as well as all expensed and fully depreciated assets on this return. Failure to include all assets physically present on January 1st may result in penalties. PERSONALTANGIBLE -•• 1111 11 1 Cy 'D INSTALLED USE z > •COST 0 ADJUSTED ORIGINAL COST EXPLANATION• ADJUSTED ORIGINAL OR REMOVAL OF CONDITION (GOOD) (AVG.) (POOR) FAIR MARKET VALUE TOTAL -ORIGINAL INSTALLED COST• ON