PLACEMENT: Consent
TITLE:
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TERMINATION OF PARTICIPATION IN MARTIN COUNTY OPPORTUNITY FUND CONCERNING PROJECT MARLIN
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EXECUTIVE SUMMARY:
executive summary
The Board is being requested to terminate the Opportunity Fund Agreement with Turbocombuster Technology, Inc. regarding Project Marlin and release the surety bond or other security being held.
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DEPARTMENT: Administration
PREPARED BY: Name: George M. Stokus
Title: Assistant County Administrator
REQUESTED BY:
PRESET:
PROCEDURES: None
BACKGROUND/RELATED STRATEGIC GOAL:
On October 23, 2012 the Board of County Commissioners entered into an Opportunity Fund Agreement with Turbocombuster Technology, Inc. (now Project Marlin). The Agreement provided for a grant to Turbocombuster from the Martin County Opportunity Fund for business expansion. The Agreement provides for two (2) disbursements of $450,000 based on performance targets. The Agreement provides that all performance targets were to be satisfied by December 31, 2016. A six (6) month extension was requested by Turbocombuster in April 2014, and subsequently agreed upon by First Amendment to Martin County Opportunity Fund Agreement “Project Marlin”, setting the new Performance Date for satisfaction of performance targets as June 30, 2017.
The Agreement requires Turbocombuster to meet the following performance measures to receive the first disbursement:
1. Invest $7,000,000 in machinery and equipment.
2. Invest $8,000,000 in the purchase of the existing building.
3. Invest $1,000,000 in the retrofit of the building.
Staff has determined through various methods (See Attachments) that these performance requirements have been satisfied and the first disbursement has been paid.
The Agreement requires Turbocombuster to meet the following performance measures to receive the second disbursement:
1. The creation of an additional 200 qualifying jobs at the project site.
2. Additional jobs must have an average compensation of $45,000.
Staff has been notified and determined that these performance requirements have not been and will not be satisfied. The second disbursement has not been paid.
The Agreement requires Turbocombuster to secure its repayment obligations through a surety bond or other security acceptable to the County. Since the performance measures to receive the second disbursement have not and will not be met, and the disbursement has not been paid, no reimbursement obligation exists pursuant to the Agreement. Staff has determined it is appropriate at this time to terminate the Agreement and release the security being held by the County related to this Agreement.
ISSUES:
None
LEGAL SUFFICIENCY REVIEW:
This item has been reviewed for legal sufficiency to determine whether it is consistent with applicable law, has identified and addressed legal risks, and has developed strategies for legal defensibility.
RECOMMENDED ACTION:
RECOMMENDATION
Move that the Board terminate the Martin County Opportunity Fund Agreement, as amended, concerning Project Marlin and release any security being held in relation to this Agreement.
ALTERNATIVE RECOMMENDATIONS
Pull this item from Consent Agenda and direct staff accordingly.
FISCAL IMPACT:
RECOMMENDATION
None
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ALTERNATIVE RECOMMENDATIONS
None
DOCUMENT(S) REQUIRING ACTION:
☐Budget Transfer / Amendment ☐ Chair Letter ☐Contract / Agreement
☐Grant / Application ☐Notice ☐Ordinance ☐Resolution
☒Other: