PLACEMENT: Consent
TITLE:
title
TANGIBLE PERSONAL PROPERTY GRANT PROGRAM
end
EXECUTIVE SUMMARY:
executive summary
In November of 2018, the Board of County Commissioners approved a five-year Tangible Personal Grant (TPPG) program agreement with Florida Power & Light which expires on December 31, 2023. County Staff and Florida Power & Light have been working on a renewal of such an agreement and are proposing a new five-year agreement for the Board of County Commissioners to consider.
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DEPARTMENT: Administration
PREPARED BY: Name: Don G. Donaldson, P.E.
Title: County Administrator
REQUESTED BY: Florida Power & Light Company
PRESET:
PROCEDURES: None
BACKGROUND/RELATED STRATEGIC GOAL:
1. Agreement drafted by: Martin County Attorney’s Office and Florida Power & Light
2. Parties to the Agreement: Martin County Board of County Commissioners and Florida
Power & Light, site-specific
3. Purpose of the Agreement: To provide an incentive for the retention and attraction of
tangible personal property in the form of a grant
4. Duration: Five (5) years, expires on December 31, 2028
5. Benefits to Martin County: The retention and attraction of tangible personal property
Investment by Florida Power & Light as well as increasing
Tax revenues for Martin County and the Village of Indiantown
6. Cost to Martin County: The cost is dependent upon the total value of tangible
personal property retained.
Martin County (County) developed a Tangible Personal Property (TPP) Grant Program (Program) in 2015 to provide a tax-reduction incentive on a site that contained a large amount of inventory for Florida Power & Light (FPL). At the time, the Program was focused on economic development within the boundary of the Community Redevelopment Area (CRA) in Indiantown. When Indiantown incorporated into the Village of Indiantown (Village), the Program had to be amended. At that time the County developed a revised Program for one year to allow the Village adequate time to develop their own TPP Grant Program with FPL because the property in question is now within the boundary of the Village.
The Board of County Commissioners (Board) was asked by Florida Power & Light (FPL) to consider a multi-year agreement for the TPP Grant Program. The Board asked staff to work with FPL to develop the Program that would be suitable for both parties. The County and FPL met and developed a five-year agreement, which was approved in November of 2018. The agreement is site-specific to FPL’s central warehouse location as well as a vacant parcel of land at the Indiantown Co-gen site both located in the Village of Indiantown.
The new agreement provides a sixty percent (60%) grant of the TPP payable to Martin County as an incentive except for fifty percent (50%) grant of the Fire/Rescue MSTU. The grant is only applicable to the Countywide Taxing Authority millage rates.
For illustrative purposes, the following analysis demonstrates the intent of the program and what the monetary impact(s) would be based upon an estimated TPP value of $700,000,000 annually (based on the 2023 assessable taxable value and FY24 Adopted Millage).
|
Taxing Authority and Millage Rate |
Total Taxes Assessed |
TPP Grant Amount (60% Countywide/50% Fire MSTU) |
Net Taxes Paid by FPL |
|
Countywide 6.6017 |
$ 4,436,342 |
$ 2,661,805 |
$ 1,774,537 |
|
Fire Rescue MSTU 2.6884 |
$1,806,604 |
$903,302 |
$903,302 |
|
|
|
|
|
|
Total |
$6,242,946 |
$ 3,565,107 |
$ 2,677,839 |
Section 3a. of the proposed Agreement provides that FPL will provide notice to the County no later than February 28 of the current tax year if it reasonably anticipates a decrease in TPP value from the prior tax year of 10% or more.
ISSUES:
If FPL increases or decreases the inventory on the site, or the County increases or decreases the Countywide and Fire MSTU millage rates, then the amount of their grant will increase or decrease accordingly.
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 approve the Tangible Personal Property Grant Program Agreement with Florida Power & Light.
ALTERNATIVE RECOMMENDATIONS
Pull this item from the Consent Agenda and direct staff accordingly.
FISCAL IMPACT:
RECOMMENDATION
This is a five-year agreement with the potential to have a fiscal impact to the County of roughly $17.8 million for the term of the agreement. The fiscal impact will vary as the TPP inventory increases and the millage rates change.
|
Funding Source |
County Funds |
Non-County Funds |
|
General Fund Countywide |
$13,309,025 |
|
|
Fire Rescue MSTU |
$4,516,510 |
|
|
Project Total |
17,825,535 |
ALTERNATIVE RECOMMENDATIONS
None
DOCUMENT(S) REQUIRING ACTION:
☐Budget Transfer / Amendment ☐ Chair Letter ☒Contract / Agreement
☐Grant / Application ☐Notice ☐Ordinance ☐Resolution
☐Other:
This document may be reproduced upon request in an alternative format by contacting the County ADA Coordinator (772) 320-3131, the County Administration Office (772) 288-5400, Florida Relay 711, or by completing our accessibility feedback form at www.martin.fl.us/accessibility-feedback <http://www.martin.fl.us/accessibility-feedback>.