13-32RESOLUTION NO. 13 -32
A RESOLUTION OF THE CITY OF CLEARWATER,
FLORIDA, ADOPTING CERTAIN DOCUMENTS HERETO
ATTACHED FOR USE IN THE EVALUATION,
CERTIFICATION, AND IMPLEMENTATION OF
ECONOMIC DEVELOPMENT AD VALOREM TAX
EXEMPTION AS CODIFIED BY ORDINANCE 8436 -13;
PROVIDING AN EFFECTIVE DATE.
WHEREAS, on November 20, 2013, the City Council ( "Council ") adopted Ordinance
No. 8436 -13 establishing an Exemption of ad valorem tax exemption for certain new
businesses and expansions of certain existing businesses, codified as Chapter 29, Article VII,
known as the "City of Clearwater Economic Development Ad Valorem Tax Exemption Ordinance ",
and
WHEREAS, the evaluation and certification of applications by New Businesses
and Existing Businesses seeking Economic Development Ad Valorem Tax Exemption is
required by Florida Statute 196.1995; and
WHEREAS, the business maintenance and continued performance and annual
reporting of such maintenance and performance of New Businesses and Existing
Businesses receiving Economic Development Ad Valorem Tax Exemption is also
required by Florida Statute 196.1995; now, therefore,
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CLEARWATER, FLORIDA:
Section 1. The documents entitled "Exhibit A- Application for Economic
Development Ad Valorem Tax Exemptions ", "Exhibit A Attachment - DR- 418 ", "Exhibit B
- Business Maintenance and Continued Performance Agreement ", and "Exhibit C -
Annual Report" are approved in substantially the form as attached.
Resolution No. 13- 32
Section 2. This resolution shall take effect immediately upon adoption.
PASSED AND ADOPTED this 20th day of Nobvember , 2013.
— c(,€.01 (((E 4O5
George N. Cretekos
Mayor
Approved as to form: Attest:
Pamela K. Akin
City Attorney
Rosemarie Call
City Clerk
2 Resolution No.
EXHIBIT A
ECONOMIC DEVELOPMENT
AD VALOREM TAX EXEMPTION
APPLICATION
FOR USE BY APPLICANTS APPLYING IN THE
File two originals of this Application. Application is to be filed no later than March 1 of the year the
exemption is desired to take effect.
10/24/2013
Mail to:
City of Clearwater
Attn: Economic Development Director
112 S. Osceola Ave
Clearwater, FL 33756
GUIDELINES FOR ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTIONS
GENERAL INFORMATION
Article VII, Section 3, of the Constitution of the State of Florida and Section 196.1995, Florida Statutes, empowers the City to
grant Economic Development Ad Valorem Tax Exemptions to New Businesses and Expansions of Existing Businesses after
the electors of the City, voting on the question in a referendum, authorized such exemptions. In a referendum held on
November 6, 2012, the electors of the City of Clearwater authorized the City to grant Economic Development Ad Valorem Tax
Exemptions to qualifying new and expanding businesses in the City of Clearwater.
In order to be eligible for an economic development ad valorem tax exemption, a business must pay a Qualifying Annual
Average Wage and -meet the definition of either a new business or an expanding business as set forth below. If a business meets
one of these definitions, it is eligible to file this application with the City of Clearwater to seek an ad valorem tax exemption.
After the City has reviewed the application for completeness, the application is submitted to the Pinellas County Property
Appraiser for review. The Property Appraiser then files a report with the City of Clearwater, after which a public hearing is
scheduled, during which the City Council shall determine whether to adopt an ordinance granting the requested exemption.
The exemption applies only to improvements to real property and to tangible personal property. The exemption does not apply
to land on which the new or expanding business is to be located.
The action taken by the City Council exempts only the real and tangible personal property taxes that are levied by the City of
Clearwater.
PROCEDURES FOR ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTION
Any applicant requesting an Economic Development Ad Valorem Tax Exemption must first submit two (2) original
applications with appropriate attachments, including Florida Department of Revenue form DR -418 to:
City of Clearwater
Attn: Director, Economic Development & Housing
112 S. Osceola Avenue
Clearwater, Florida 33756
Upon submittal of the completed application and form DR -418, the Economic Development & Housing Director or designee
shall review, and within ten (10) days of submission, notify the applicant of any facial deficiencies.
Before any governing body takes action on the application, a copy shall be delivered to the Property Appraiser for review.
After careful consideration of the application, the Property Appraiser shall provide a report to the City of Clearwater within
fifteen (15) days of receipt of the application.
Complete applications shall be scheduled for two (2) public hearings before City Council ( "Council ") of the City of Clearwater
( "City ") no later than 45 days following receipt of a complete application. Applicant will be notified of the date and time of
each public hearing.
In making its determination as to whether to grant the Exemption, and, if granted, the duration and percentage of the
Exemption, the Council shall apply the following guidelines which include the following factors:
1) Description of project
2) Number of current and projected employees of the Business located in the City
3) Average Wage of Employees of the Business located in the City
4) Amount of Capital Investment
5) Innovative Business
6) Environmental Impact
7) Commitment to Local Procurement
8) Net positive contribution to the local economy
9) Sales factor
1
In addition to the above factors, the Council may consider, in its sole discretion, any such other activity or factor that promotes
the sustainability of Economic Development within its jurisdiction.
After considering the application, the Property Appraiser's report, the above Policy Guidelines, and such other information as it
deems relevant, Council may choose to adopt an ordinance granting the Exemption to the Applicant for up to 75 percent of the
assessed value of the qualifying property for up to 10 years.
A business will be required to enter into an agreement with the City stating that the Business will satisfy the Business
Maintenance and Continued Performance Conditions set forth in this Application.
RESEARCH REFERENCES
Section 196.011 Annual application required for exemption:
(1)(a) Every person or organization who, on January 1, has the legal title to real or personal property, except inventory,
which is eligible by law for exemption from taxation as a result of its ownership and use shall, on or before March 1 of each year,
file an application for exemption with the County Property Appraiser, listing and describing the property for which exemption
is claimed and certifying its ownership and use. The Department of Revenue shall prescribe the forms upon which the application
is made. Failure to make application, when required, on or before March 1 of any year shall constitute a waiver of the exemption
privilege for that year, except as provided in subsection 196.011(7) or subsection 196.011(8).
For purposes of this Application, unless otherwise indicated, the following definitions shall be used:
"New business ":
1. A business establishing ten (10) or more jobs to employ ten (10) or more full -time employees in the City which
manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a fixed
location and which comprises an industrial or manufacturing plant; or
2. A business or organization establishing 10 or more new jobs to employ 10 or more full -time employees in this state
which is a target industry business as defined in F.S. 288.106(2)(q).
3. A business establishing twenty -five (25) or more jobs to employ twenty -five (25) or more full -time employees in
the City, the sales factor for which, as defined below, for the facility with respect to which it requests an
economic development ad valorem tax exemption, is less than fifty percent (50 %) inside the Metropolitan
Statistical Area (Tampa -St. Petersburg- Clearwater, FL) for each year the exemption is claimed; or
4. An office space in the City leased or owned and used by a corporation newly domiciled in the City; provided such
office space houses fifty (50) or more full -time employees of such corporation; provided that such business or office
first begins operation on a site clearly separate from any other commercial or industrial operation owned by the same
business; or
"Expansion of an existing business ":
1. A business establishing ten (10) or more jobs to employ ten (10) or more full -time employees in the City which
manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a fixed
location and which comprises an industrial or manufacturing plant; or
2. A business or organization establishing 10 or more new jobs to employ 10 or more full -time employees in this state
which is a target industry business as defined in F.S. 288.106(2)(q).
3. A business establishing twenty -five (25) or more jobs to employ twenty -five (25) or more full -time employees in
the City, the sales factor for which, as defined below, for the facility with respect to which it requests an
economic development ad valorem tax exemption, is less than fifty (50 %) percent inside the Metropolitan
Statistical Area (Tampa -St. Petersburg- Clearwater, FL) for each year the exemption is claimed; or
4. An office space in the City leased or owned and used by a corporation in the City; provided such office space houses
fifty (50) or more full -time employees of such corporation; provided that such business or office first begins operation
on a site clearly separate from any other commercial or industrial operation owned by the same business; or
"Qualifying Average Annual Wage ":
The average annual wage for Pinellas County as determined by Enterprise Florida, Inc. and published on January 1' in the year
in which the application for exemption is filed in the City of Clearwater.
2
"Sales Factor":
The sales factor is a fraction the numerator of which is the total sales of the taxpayer in the MSA during the taxable year or period
and the denominator of which is the total sales of the taxpayer everywhere during the taxable year or period. "MSA" means
"Metropolitan Statistical Area ". For purposes of this application, the "Metropolitan Statistical Area" includes Tampa -St.
Petersburg - Clearwater, FL area; "total sales" means "those sales that are processed and shipped through the Facility's doors
located in City of Clearwater; "Facility" and "taxpayer" mean "the business that is requesting an ad valorem tax exemption ".
Remainder of this page is intentionally left blank
3
Application #:
OFFICIAL USE ONLY
Date Received:
INSTRUCTIONS:
Please complete SECTIONS A -D and submit with FORM DR -418. Applications will not be considered without all sections
and attachments completed and signed by the Applicant.
SECTION A — NEW JOBS
The applicant must enclose
and job titles; omit employee
Schedule for New Business
Total number of full -time jobs
Total number of jobs to be
Please distinguish jobs by
& WAGES
current payroll roster
names and social
or Expansion of Existing
as of January 1st:
as of January 1st of the year the
security numbers of employees. Please
Business.
NEW BUSINESS:
exemption is being sought.
fill out appropriate
is granted:
Provide hire dates
Job Creation
for first three (3) years after exemption
created and maintained
categories: full -time
management/full -time non - management
JOB CREATION SCHEDULE
AVERAGE ANNUAL WAGES
BY JOB TYPE
FULL -TIME JOBS
BY JOB TYPE
YR 1
YR 2
YR 3
TOTAL
Management
Non - Management
7��� �
ALL
JOBS
AVERAGE ALL
NEW JOBS
4
Total number of full -time jobs prior to
Total number of jobs to be created and
Please distinguish jobs by categories:
EXPANSION OF EXISTING BUSINESS:
expansion:
maintained
full -time
for first three (3) years after exemption is granted:
management/ full -time non - management
JOB CREATION SCHEDULE
AVERAGE ANNUAL WAGES
BY JOB TYPE
FULL -TIME JOBS
BY JOB TYPE
YR 1
YR 2
YR 3
TOTAL
CURRENT
NEW
Management
Non - Management
�i
ALL A
JOBS
ALL
NEW JOBS
JOB CREATION TIMEFRAME: Anticipated
date by which all new full -time jobs will be filled:
of total employees who will reside in Pinellas County: % w /in City limits:
RESIDENCY: Estimated
percentage
%
SECTION B — SALES FACTOR/CURRENT SALES
Current sales factor for facility requesting exemption (total sales shall mean those sales that are processed
the Facility's doors located in the City of Clearwater).
Total sales inside the Metropolitan Statistical Area *: $ %
Total sales outside the Metropolitan Statistical Area * :$ %
Total sales: $ 100%
*identified as Tampa -St. Petersburg - Clearwater, FL
and shipped through
Please use (has tnformatiotfttt
Section 1.1 ofform�R -418;
SECTION C — OTHER COUNCIL CONSIDERATIONS FOR EXEMPTION DETERMINATION
1. Please describe the project for which this exemption is being requested:
2. Amount of total capital investment in the new business or expansion of existing business:
3. Commitment to local procurement and local hiring: Please describe your company's commitment to local
procurement:
5
4. List any products or services that are critical to your business that are not available locally or regionally:
5. Please describe your company's commitment to local hiring:
6. What specific training needs will help you staff your company:
7. Please describe if, and how, your business is innovative in nature:
8. To what extent are these same or similar products and /or services currently being produced or provided by other
businesses in City:
9. If there are any plans for new products and /or services involving the facility in City, provide a description:
10. Commitment to green building/practices: Sustainability element: (Please describe any environmentally
friendly policies or practices your company has adopted)
11. Who do you anticipate to be your strongest Local competitors?
12. National /state recognition: Please list any awards and/or acknowledgements your business has received, or
recognized articles that reference your business.
13. Please include any such other information that demonstrates to the City the company's commitment to making a long
term positive economic impact to the City:
SECTION D — INCENTIVE
Relocation or expansion would occur without the exemption: Yes
If no, please explain why:
No
NOTICE:
PLEASE ATTACH DR -418 "ECONOMIC DEVELOPMENT AD VALOREM PROPERTY TAX EXEMPTION ".
YOUR APPLICATION IS NOT COMPLETE WITHOUT ATTACHMENT. BOTH DOCUMENTS MUST BE SIGNED
AND NOTARIZED BY A NOTARY PUBLIC.
NOTICE:
BUSINESS MAINTENANCE AND CONTINUED PERFORMANCE:
EVIDENCE OF SATISFACTION OF INFORMATION PROVIDED IN FORM DR -418 MUST BE PROVIDED IN THE
ANNUAL REPORT TO MAINTAIN THE AD VALOREM TAX EXEMPTION.
6
DATE OF APPLICATION:
I hereby request the adoption of an ordinance granting an economic development ad valorem tax exemption on the above
property. In addition to the information included herein (including attachments, if any), I agree to furnish such other
information as the City of Clearwater or the Pinellas County Property Appraiser may request in regard to the exemption
requested herein. I hereby certify that the information and valuation stated above by me is true, correct and complete to the
best of my knowledge and belief, including any attached statements, schedules, etc. (If prepared by someone other than the
owner, the owner's declaration is based on all information of which he /she has any knowledge.)
OWNER NAME & TITLE:
Signature:
Type or Print Name:
Date:
PREPARER/AUTHORIZED AGENT — Name and Address:
Telephone: Fax:
E -mail:
Signature:
Type or Print Name:
Date:
NOTARY:
State of Florida
County of Pinellas
On this, the day of , 20 , before me a notary public, the undersigned officer, personally
appeared , known to me (or satisfactorily proven) to be the person whose name is subscribed to
the within instrument, and acknowledged that he executed the same for the purposed therein contained.
In witness hereof, I hereunto set my hand and official seal.
Notary Public
7
(Stamp /Seal)
ECONOMIC DEVELOPMENT AD VALOREM PROPERTY TAX EXEMPTION
Chapter 196.1995, Florida Statutes
To be filed with the Board of County Commissioners, the governing boards of the municipality, or both,
no later than March 1 of the year the exemption is desired to take effect.
DR -418
R. 12/99
1
Business name
Mailing address
2
Please give name and telephone number of owner or person in charge of this business.
Name
Telephone number
3
Exact Location (Legal Description and Street Address) of Property for which this return is filed
4
Date you began, or will
begin, business at this facility
5
Description of the improvements to real property for which this exemption is requested
Date of commencement of
construction of improvements
6 Description of the tangible personal property for which this exemption is requested and date when property was or is to be purchased
APPRAISER'S USE ONLY
Date of
Purchase
Taxpayer's Estimate of
Original Cost
Cond*
Fair Market Rent
Cord*
Class or Item
Age
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
$
Average value of inventory on hand: *Condition: good, avg (average), or poor
Any additional personal property not listed above for which an exemption is claimed must be returned on form
DR -405 (Tangible Personal Property Tax Return) and a copy attached to this form.
7 Do you desire exemption as a ❑ new business or ❑ expansion of an existing business
9 Trade levels (check as many as apply)
❑ Retail ❑ Wholesale ❑ Manufacturing ❑ Professional
❑ Service ❑ Office ❑Other, specify:
8 Describe type or nature of your business
10 Number of full -time employees to be employed in Florida
If an expansion of an existing business:
Net increase
in employment
%
Increase in productive output
resulting from this expansion
11 Sales factor for the facility requesting exemption:
Total sales in Florida from this
facility -one (1) location only
divided
by
Total sales everywhere from this
facility -one (1) location only
12 For office space owned and used by a
corporation newly domiciled in Florida
Date of incorporation
in Florida
Number of full -time
employees at this location
I hereby request the adoption of an ordinance granting an exemption from ad valorem taxation on the above property pursuant to Section 196.1995, Florida
Statutes. I agree to furnish such other reasonable information as the Board of County Commissioners, the governing authority of the municipality, or the
Property Appraiser may request in regard to the exemption requested herein. I hereby certify that the information and valuation stated above by me is true,
correct, and complete to the best of my knowledge and belief. (If prepared by someone other than the taxpayer, his declaration is based on all information of
which he has any knowledge.)
Date
Signature, preparer
Signature, taxpayer
Preparers address
Title
Preparers telephone number
Prope Appraise
Use Only
I
Total revenue available to the county or municipality for the current fiscal year from ad valorem tax sources
$
II
Revenue lost to the county or municipality for the current fiscal year by virtue of exemptions previously granted under this section
$
III
Estimate of the revenue which would be lost to the county or municipality during the current fiscal year if the exemption applied
for were granted and the property for which the exemption is requested would otherwise have been subject to taxation
$
IV
Estimate of the taxable value lost to the county or municipality if the exemption applied for was granted
Improvements to real property $ Personal property $
V
I have determined that the property listed above meets the definition, as defined by Section 196.012(15) or (16), Florida Statutes, as a
new business expansion of an existing business ❑neither
VI
Last year for which exemption may be applied
1 1 1
Application to be filed not later than March 1
Date
Signature, Property Appraiser
General Information
Ad Valorem property tax exemptions can be granted to new and expanding businesses only after the voters of a city and/or county vote in a referendum to allow
that city or county to grant exemptions . Section 196.1995, Florida Statutes, requires that a referendum be held if: (1) The Board of County Commissioners or
governing authority of a municipality (city or county commission) votes to hold such a referendum, or (2) if the county or city commission receives a petition
signed by ten percent of the registered voters of the county or city. This referendum question can then be placed before the voters of a city or county at any
regular election or special election called for voting on the tax incentive referendum or for any other purpose.
If the voters authorize exemptions, a company must first meet the definitions of a new or expanding business as stated in s. 196.012 (15) and (16), F.S.
The expansion must be on the same or a colocated site of the business current operations.
If a business meets one of the above definitions as a new or expanding business, it must then file this application with the county or city commission or both.
After the city or county commission receives this application, it must submit the application to the county property appraiser for review. After the property
appraiser makes the report as to the fiscal impact of granting the exemption, the county or city commission shall then adopt an ordinance in the usual manner -
granting the exemption, if it chooses to do so.
A business cannot receive exemption from school taxes or water management district taxes. Also a business must pay taxes that were voted by the voters of a
city or county to pay for bond issues and other special tax levies authorized by the voters of a city or county.
The exemption can only be for the improvements to the real property and for tangible personal property. The land on which the new or expanding business is to
be located will still be taxed and taxes must be paid on it.
The action taken by a city or county commission can only exempt the taxes paid to that governmental body. A city can only exempt its taxes; a county can only
exempt its taxes. All other taxes must be paid.
Statutory Definitions
Section 196.011 Annual application required
for exemption .-
(1)(a) Every person or organization who, on
January 1, has the legal title to real or personal
property, except inventory, which is entitled by law
to exemption from taxation as a result of its
ownership and use shall, on or before March 1 of
each year, file an application for exemption with
the county property appraiser, listing and
describing the property for which exemption is
claimed and certifying its ownership and use. The
Department of Revenue shall prescribe the forms
upon which the application is made. Failure to
make application, when required, on or before
March 1 of any year shall constitute a waiver of
the exemption privilege for that year, except as
provided in subsection (7) or subsection (8).
Section 196.012(15) and (16), Florida Statutes
(15) "New business" means:
(a)1. A business establishing 10 or more jobs
to employ 10 or more full -time employees in this
state, which manufactures, processes, compounds,
fabricates, or produces for sale items of tangible
personal property at a fixed location and which
comprises an industrial or manufacturing plant;
2. A business establishing 25 or more jobs to
employ 25 or more full -time employees in this
state, 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; or
3. An office space in this state owned and
used by a corporation newly domiciled in this state;
provided such office space houses 50 or more
full -time employees of such corporation; provided
that such business or office first begins operation on
a site clearly separate from any other commercial or
industrial operation owned by the same business.
(b) Any business located in an enterprise
zone that first begins operation on a site clearly
separate from any other commercial or industrial
operation owned by the same business.
(c) A new business that is situated on property
annexed into a municipality and that, at the time of
annexation, is receiving an economic
development ad valorem tax exemption from the
county under s. 196.1995.
(16) "Expansion of an existing business" means:
(a)1. A business establishing 10 or more jobs
to employ 10 or more full -time employees in this
state, which manufactures, processes, compounds,
fabricates, or produces for sale items of tangible
personal property at a fixed location and which
comprises an industrial or manufacturing plant; or
2. A business establishing 25 or more jobs to
employ 25 or more full -time employees in this state,
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 operation on
a site colocated with a commercial or industrial
operation owned by the same business, resulting in
a net increase in employment of not less than 10
percent or an increase in productive output of not less
than 10 percent.
(b) Any business located in an enterprise zone
that increases operations on a site colocated with a
commercial or industrial operation owned by the
same business.
Section 196.1995 Economic development ad
valorem tax exemption. -
(6) With respect to a new business as defined
by s. 196.012(15)(c), the municipality annexing the
property on which the business is situated may
grant an economic development ad valorem tax
exemption under this section to that business for a
period that will expire upon the expiration of the
exemption granted by the county. If the county renews
the exemption under subsection (7), the municipality
may also extend its exemption. A municipal
economic development ad valorem tax exemption
granted under this subsection may not extend
beyond the duration of the county exemption.
Section 220.15(5), Florida Statutes.
(5) The sales factor is a fraction the numerator
of which is the total sales of the taxpayer in this state
during the taxable year or period and the denom-
inator of which is the total sales of the taxpayer
everywhere during the taxable year or period.
(a) As used in this subsection, the term "sales"
means all gross receipts of the taxpayer except
interest, dividends, rents, royalties, and gross
receipts from the sale, exchange, maturity, redemp-
tion, or other disposition of securities. However:
1. Rental income is included in the term if a
significant portion of the taxpayer's business consists of
leasing or renting real or tangible personal property; and
2. Royalty income is included in the term if a
significant portion of the taxpayer's business consists of
dealing in or with the production, exploration, or
development of minerals.
(b)1. Sales of tangible personal property occur
in this state if the property is delivered or shipped to
a purchaser within this state, regardless of the f.o.b.
point, other conditions of the sale, or ultimate
destination of the property, unless shipment is made
via a common or contract carrier.
2. When citrus fruit is delivered by a
cooperative for a grower- member, by a grower -
member to a cooperative, or by a grower -
participant to a Florida processor, the sales factor
for the growers for such citrus fruit delivered to
such processor shall be the same as the sales
factor for the most recent taxable year of that
processor. That sales factor, expressed only as a
percentage and not in terms of the dollar volume
of sales, so as to protect the confidentiality of the
sales of the processor, shall be furnished on the
request of such a grower promptly after it has
been determined for that taxable year.
3. Reimbursement of expenses under an
agency contract between a cooperative, a grower -
member of a cooperative, or a grower and a
processor is not a sale within this state.
(c) Sales of a financial organization, including,
but not limited to, banking and savings institutions,
investment companies, real estate investment
trust, and brokerage companies, occur in this
state if derived from:
1. Fees, commissions, or other compensation
for financial services rendered within this state;
2. Gross profits from trading in stocks, bonds, or
other securities managed within this state;
3. Interest received within this state, other
than interest from loans secured by mortgages,
deeds of trust, or other liens upon real or tangible
personal property located in this state, and
dividends received within this state;
4. Interest charged to customers at places of
business maintained within this state for carrying
debit balances of margin accounts, without deduction
of any costs incurred in carrying such accounts;
5. Interest, fees, commissions, or other charges
or gains from loans secured by mortgages, deeds of
trust or other liens upon real or tangible personal
property located in this state or from installment sale
agreements originally executed by a taxpayer or the
taxpayer's agent to sell real or tangible personal
property located in this state;
6. Rents from real or tangible personal
property located in this state; or
7. Any other gross income, including other
interest, resulting from the operation as a financial
organization within this state.
In computing the amounts under this
paragraph, any amount received by a member of
an affiliated group (determined under s. 1504(a) of
the Internal Revenue code, but without reference
to whether any such corporation is an "includable
corporation" under s. 1504(b) of the Internal
Revenue code) from another member of such
group shall be included only to the extent such
amount exceeds expenses of the recipient directly
related thereto.
EXHIBIT B
BUSINESS MAINTENANCE & CONTINUED
PERFORMANCE AGREEMENT
FOR USE BY APPLICANTS APPLYING IN THE
rater
Mail to:
City of Clearwater
Attn: Economic Development Director
112 S. Osceola Ave
Clearwater, FL 33756
1
BUSINESS MAINTENANCE AND CONTINUED PERFORMANCE AGREEMENT
THIS AGREEMENT is entered into this day of [YEAR], by and
between City of Clearwater Florida, a municipal corporation of the State of Florida (the "City ")
whose mailing address is 112 South Osceola Avenue, Clearwater, Florida 33756 and [FULL
LEGAL NAME OF COMPANY ( "[SHORTENED NAME OF COMPANY "), a Florida
corporation, whose mailing address is [STREET ADDRESS, CITY, STATE, ZIP]
WITNESSETH
WHEREAS, Article VII, Section 3, of the Constitution of the State of Florida and
Section 196.1995, Florida Statutes, provide that the City may grant Economic Development Ad
Valorem Tax Exemptions (EDAVTE) to New Businesses and Expansions of Existing
Businesses, as defined in Section 196.012 (15)(16), Florida Statutes, by ordinance provided that
the electors of the City, voting on the question in a referendum, authorize the City to adopt
such ordinances; and
WHEREAS, On November 6 2012, City of Clearwater voters approved the
referendum, authorizing the City Council of the City of Clearwater (the "Council ") to grant
EDAVTEs pursuant to state law; and
WHEREAS, the Council recognizes that it is a function of local government to promote
economic development within its jurisdiction by providing financial incentives to encourage new
businesses to relocate within its jurisdiction and existing businesses to expand creating
employment opportunities and the utilization of local resources that will benefit the entire
community; and
WHEREAS, Chapter 29, Article VII of the Code of Ordinances City of Clearwater
(the "Code ") sets forth the process and procedures for implementing the EDAVTE program;
and,
WHEREAS, Pursuant to Section 29.204 of the Code, [COMPANY NAME] submitted
an application to the City requesting an EDAVTE for [XX% NOT TO EXCEED 75 %] of the
assessed value of the qualifying improvements to real property and qualifying tangible personal
property specified in its application for a period of 10 years, commencing with Tax Year
[YEAR] (the "[COMPANY NAME] Application "); and,
WHEREAS, on [MONTH, DATE, YEAR] in recognition of the economic stimulus
[COMPANY NAME] would provide to the community if it [EXPANDED OR LOCATED] its
business, invested approximately [INVESTMENT DOLLAR] ($[ # # #, # # #, # # #. # #]), including the
purchase of new equipment, as part of its [EXPANSION/RELOCATION] and added [ # # #] new
jobs in the City, the Council authorized an EDAVTE of [ ## up to 75] percent ( # # # %) of the
assessed value of the net increase in qualifying improvements to real property and qualifying
tangible personal property as set forth in the [COMPANY NAME] Application, to facilitate the
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[EXPANSION /RELOCATION] of its business (the "[COMPANY NAME] Ad Valorem Tax
Exemption ") for a period of [NUMBER] tax years (the "Exemption Period "), commencing with
Tax Year [COMMENCEMENT YEAR] through Tax Year [EXPIRATION YEAR]; and,
WHEREAS, Pursuant to Ordinance No. [ORDINANCE NUMBER], [COMPANY
NAME] agrees to satisfy the continued performance conditions set forth in the [COMPANY
NAME] Application.
NOW THEREFORE, in consideration of the mutual covenants herein contained and other
good and valuable consideration, hereby acknowledged by the parties, [COMPANY NAME] and
City agree as follows:
1. Incorporation. The recitals set forth above are incorporated herein in their
entirety.
2. Ad Valorem Tax Exemption. Pursuant to Ordinance No. [ORDINANCE
NUMBER], City shall provide an EDAVTE of [ # #] percent ([ # #] %) of the
assessed value of the net increase in qualifying improvements to real property and
qualifying tangible personal property as set forth in the [COMPANY NAME]
Application] to facilitate the expansion of its business (the "[COMPANY NAME]
Ad Valorem Tax Exemption ") for a period of [NUMBER] tax years (the
"Exemption Period "), commencing with Tax Year [COMMENCEMENT YEAR]
through Tax Year [EXPIRATION YEAR].
3. Business Maintenance and Continued Performance Conditions Requirement.
Pursuant to Ordinance No. 8436 -13, [COMPANY NAME] shall enter into an
agreement with the City satisfying the Business Maintenance and Continued
Performance Conditions as set forth in the [COMPANY NAME] Application as
follows:
a. Commencement of Operations: [COMPANY NAME] represents that it
began business activity at its [LOCATION] in [YEAR];
b. Real Property: [COMPANY NAME] shall expand its current facility by
[ # #, # # #] square feet [TYPE — DESCRIPTION OF FACILITY AND
PROJECT] with an anticipated date of completion of [MONTH, YEAR];
c. Tangible Personal Property and Real Property: COMPANY NAME]
shall purchase new furniture and fixtures [MONTH, YEAR, ESTIMATED
BUDGET AMOUNT]
• [COMPANY NAME] shall purchase new machinery and
equipment (If applicable) [MONTH, YEAR, ESTIMATED
BUDGET AMOUNT]
• [COMPANY NAME] shall [EXPAND, CONSTRUCT] its
building facility between [CONSTRUCTION PERIOD,
ESTIMATED BUDGET AMOUNT]
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• [COMPANY NAME] shall purchase new [OTHER
INVESTMENTS, ESTIMATED BUDGET AMOUNT]
d. New Jobs: [COMPANY NAME] represents that as of
[MONTH/DATE/YEAR] it employs [CURRENT #] full -time employees
at its City of Clearwater facility and shall create [JOB CREATION
SCHEDULE]
e. Wages:
• [COMPANY NAME] represents that the average wage of all non-
management employees currently working at its City of Clearwater
facility is [CURRENT AVERAGE WAGES] Dollars
[($ # #, # # #.00)] and shall compensate its new employees
[AVERAGE WAGES COMMITMENT]
f. Sales Factor /Current Sales: [COMPANY NAME] represents that for
[YEAR], the total sales were [DOLLARS]; the sales inside the Tampa- -
St.Petersburg-Clearwater, FL Metropolitan Statistical Area (MSA) were
[DOLLARS] ($XX,XXX) and the sales outside the MSA were
[DOLLARS]($75,000,000.00); The Sales Factor is thus [INSIDE MSA #
DIVIDED BY TOTAL SALES #]
g.
Office Space Incorporation in Florida: [COMPANY NAME]
represents that the date of facility incorporation in City of Clearwater was
[YEAR] in the [LOCATION] facility;
h. Other Council Considerations for Exemption Determination:
• [COMPANY NAME] shall invest [TOTAL INVESTMENT
DOLLARS] in capital as part of its expansion;
• [COMPANY NAME] shall use local suppliers, where available.
• [COMPANY NAME] shall make every attempt to hire local
employees located within City of Clearwater;
• [COMPANY NAME] shall continue to provide training
opportunities for new and existing employees;
• [COMPANY NAME] shall continue to strive to be innovative in
nature and offer new products /services when possible...
• [COMPANY NAME] shall maintain its commitment to green
btrilelifieffaetiees
..,.A • • • k -
and /or state recognition
to strive to receive national
4. Ordinance No. [ # # # # - # #1 Requirements. [COMPANY NAME] shall abide by all
other requirements as defined in Ordinance No. [ # # # # - # #].
5. Council Revocation.
4
a. If [COMPANY NAME] fails to satisfy the Business Maintenance and
Continued Performance Conditions set forth in Section 3 of this
Agreement, the Council may, upon 30 days written notice to [COMPANY
NAME], adopt an ordinance revoking the ad valorem tax exemption or
take such other action with respect to the [COMPANY NAME] Ad
Valorem Exemption it deems appropriate.
b. Upon Revocation, the Council shall immediately notify the Pinellas
County Property Appraiser;
c. If it is determined that for any year within the Exemption Period,
[COMPANY NAME] was not entitled to receive such Exemption,
[COMPANY NAME] shall be subject to the taxes exempted as a result of
such failure plus annual interest at the maximum rate allowed by law;
d. Nothing herein shall prohibit [COMPANY NAME] from reapplying for
an ad valorem tax exemption pursuant to State law.
6. Assignment. Except as hereinafter provided, neither this Agreement nor any
rights, privileges, or claims created by this Agreement may be transferred by
[COMPANY NAME] without the prior written approval of the City, which
approval will not be unreasonably withheld, conditioned or delayed; provided that
[COMPANY NAME] may assign this Agreement to any affiliate that assumes in
writing all of [COMPANY NAME]'s obligations under this Agreement and
provides written notice of the assignment to the City within thirty (30) days after
such assignment. Any attempted assignment in breach of this Agreement shall be
void.
7. Controlling Law. This Agreement is entered into pursuant to the laws of the
State of Florida, and shall be construed and enforced thereunder. In the event of
litigation for any alleged breach of this Agreement, exclusive jurisdiction and
venue for such litigation shall be in the Circuit Court of the Sixth Judicial District,
in and for City of Clearwater, Florida, or the United States District Court for the
Middle District of Florida, Tampa Division. In the event of any litigation
concerning this Agreement, the parties waive all rights to a jury trial.
8. Notice. Any notices required under this Agreement shall be in writing and be
addressed to the parties as shown below. Notices shall be delivered by certified or
registered first class mail or by commercial courier service, and shall be deemed to
have been given or made as of the date received
[COMPANY NAME CITY
CONTACT PERSON, ADDRESS, [CONTACT NAME,
PHONE NUMBER] ADDRESS, PHONE
NUMBER]
5
9. Force Majeure. Notwithstanding anything contained in the Act or this Agreement
to the contrary, and subject to the terms of this Section, [COMPANY NAME]'
failure to perform its obligations under this Agreement, other than with respect to
the payment of money or the giving of any notice required hereunder, shall not be
a default, and no disqualification shall occur as a result thereof, if any such failure
or delay is due in whole in part to acts of God; acts of public enemy; war; riot;
sabotage; blockage; embargo; failure or inability to secure materials, supplies or
labor through ordinary sources by reason of shortages or priority; labor strikes,
lockouts or other labor or industrial disturbance (whether or not on the part of
agents or employees of either party hereto engaged in renovation or construction
at the Facility); civil disturbance; terrorist act; fire, flood, windstorm, hurricane,
earthquake or other casualty; any law, order, regulation or other action of any
governing authority; any action, inaction, order, ruling, moratorium, regulation,
statute, condition or other decision of any governmental agency having
jurisdiction over any portion of the Facility, over the renovation or construction
anticipated to occur thereon or over any uses thereof, or by delays in inspections
or in issuing approvals by private parties or permits by governmental agencies;
discovery of hazardous or toxic materials; failure of the Internet; failure of power,
telecommunication, data connectivity or other services to be delivered to the
Facility by any third party including any local utility provider; delays caused by
any dispute resolution process; or any cause whatsoever beyond the reasonable
control (excluding financial inability) of the party whose performance is required
hereunder, or any of its contractors or other representatives, whether or not similar
to any of the causes hereinabove stated.
10. Conflicting Law; Severability. If a Conflicting Law is enacted after the Effective
Date, then the City and [COMPANY NAME] shall meet and confer in good faith
for a period of no less than thirty (30) and no more than ninety (90) days to seek
to effectuate an amendment to this Agreement providing the City and
[COMPANY NAME] with the rights and remedies intended to be provided
herein. Nothing herein shall preclude either the City or [COMPANY NAME]
from challenging the validity of any Conflicting Law. Each provision in this
Agreement is severable. If any such provision is determined to be invalid or
illegal, the validity and enforceability of the remainder of this Agreement shall be
unaffected. If the Economic Development Ad Valorem Tax Exemption, or any
portion thereof, is deemed by a court of competent jurisdiction to be ultra vices or
not authorized by the laws or Constitution of the State of Florida, then the City
shall use reasonable efforts to provide equivalent incentives to [COMPANY
NAME] as allowed by law.
11. Term. The term of this Agreement shall commence on the date of last signatory
hereto (the "Effective Date ") and, unless sooner terminated, shall continue in
force through [MONTH, DATE, YEAR].
6
12. Amendments. This Agreement shall not be changed except by written instrument
signed by all the parties.
13. Binding Effect and Effectiveness; Representations and Warranties.
a. Subject to the specific provisions of this Agreement, this Agreement
shall be binding upon and inure to the benefit of and be enforceable by
the parties and their respective successors and assigns, notwithstanding
changes in corporate or other governance.
b. [COMPANY NAME] represents and warrants to the City that as of the
date hereof and throughout the term of this Agreement:
(i) [COMPANY NAME] is a for profit corporation, duly
organized under the laws of the State of Florida, maintains a
place of business within the State of Florida, and is validly
existing and is doing business in the State of Florida as [FULL
LEGAL COMPANY NAME].
(ii) [COMPANY NAME] has the power and authority to own its
properties and assets and to carry on its business as now being
conducted and has the power and authority to execute and
perform this Agreement;
(iii) This Agreement (a) is the lawful, valid and binding agreement
of [COMPANY NAME] in its corporate name enforceable
against [COMPANY NAME] in accordance with its terms;
(b) does not violate any order of any court or other agency of
government binding on [COMPANY NAME], the charter
documents of [COMPANY NAME] or any provision of any
indenture, agreement or other instrument to which
[COMPANY NAME] is a party; and (c) does not conflict with,
result in a breach of, or constitute an event of default, or an
event which, with notice or lapse of time, or both, would
constitute an event of default, under any material indenture,
agreement or other instrument to which [COMPANY NAME]
in its corporate name is a party;
(iv) [COMPANY NAME] has not received written notice of any
action having been filed against [COMPANY NAME] that
challenges the validity of this Agreement or [COMPANY
NAME]' right and power to enter into and perform this
Agreement; and
14. Effective Date. This Agreement shall be effective on the date of the last signatory
hereto.
IN WITNESS WHEREOF, the City and [FULL LEGAL COMPANY NAME] have
executed the Agreement as of the date first above written.
7
WITNESSES:
(Signature)
(Print Name)
(Signature)
(Print Name)
[FULL LEGAL COMPANY NAME]
By:
Title:
Date:
[TYPE NAME]
CITY OF CLEARWATER, FLORIDA
By:
Approved as to form: Attest:
Pamela K. Akin
City Attorney
4.44,4ha,h-oe 4e 4t7 fir:
Liam B. Horne II
City Manager
cJimtaltz. 4-1-1
Rosemarie Call
City Clerk
8
EXHIBIT C
ECONOMIC DEVELOPMENT
AD VALOREM TAX EXEMPTION
ANNUAL REPORT
FOR USE BY PARTIES RECEIVING
ECONOMIC DEVELOPMENT AD VALOREM TAX
EXEMPTIONS GRANTED FROM THE
CITY OF CLEARWATER
The recipient of an economic development ad valorem tax exemption shall complete and submit this
report to each governmental entity from whom you have been granted an exemption on or before
March lst of each year for which the exemption is in effect.
The recipient of an economic development ad valorem tax exemption shall complete
Clearwater on or before March 15` of each year for which the exemption is in effect.
Location for submittal:
City of Clearwater
Attn: Director, Economic Development & Housing
112 S. Osceola Avenue
Clearwater, Florida 33756
OFFICIAL USE ONLY
and submit this report to the City of
Date Received:
Report #:
FOR EXEMPTION PERIOD: January 1, to December 31,
SECTION 1— BUSINESS NAME AND MAILING ADDRESS
Business Mailing Address:
Phone: Fax:
SECTION 2 — PROPERTY OWNER
Full Legal Name of the Owner of this Business: Title:
Phone: Fax:
Email Address:
SECTION 3 —EXACT LOCATION OF BUSINESS
Legal description of property for which this application is filed:
Property Parcel Identification Number(s):
Tangible Personal Property Identification Number(s):
Street Address of this property:
SECTION 4 — COMMENCEMENT OF OPERATIONS
Date you began business activities at this facility:
SECTION 5 — REAL PROPERTY
Description of improvements to real property for which exemption was received:
Date of commencement of construction of improvements:
SECTION 6 — TANGIBLE PERSONAL PROPERTY
Provide a description of tangible personal property for which an exemption was received and date when property was
purchased.
TAXPAYER'S
ESTIMATE OF
CONDITION
TAXPAYER'S
ESTIMATE OF
FAIR
MARKET
VALUE
APPRAISER'S USE
ONLY
DESCRIPTION OF
ITEM
AGE
DATE OF
PURCHASE
INSTALLATION
DATE
ORIGINAL
INSTALLED
COST
GOOD
AVG
POOR
CONDMON
Please provide the average value of inventory on hand as of January 15`: $
SECTION 7 — NEW OR EXPANSION OF EXISTING BUSINESS
Have you maintained the description of: a New Business or the Expansion of an Existing Business: Yes: No:
SECTION 8 — TYPE OF BUSINESS
Describe the type or nature of your business:
SECTION 9 — TRADE LEVEL
Check as many as apply below. Identify industry cluster (if applicable): Include NAICS code:
Wholesale: Manufacturing: Professional: Service: Office:
Other (explain):
SECTION 10 — JOBS AND AVERAGE ANNUAL WAGES
Please complete the table below:
You are required to attach a current payroll roster as of January 15' to include employee payroll for January 15' through
December 3151 of prior year. Omit names and social security numbers of employees.
Net increase in full -time employees since exemption was granted: management non - management
Percentage increase in full -time employees since exemption was granted: management %; non - management %
Net increase in seasonal employees since exemption was granted:
Percentage increase in seasonal employees since exemption was granted: %
SECTION 11— SALES FACTOR
Total sales in the Metropolitan Statistical Area ending December 31' of prior year from this facility: $
Total sales everywhere for this facility: $
Sales factor for the facility receiving exemption:
Percentage increase in productive output resulting from this expansion since year exemption was granted:
FULL -TIME JOBS
SEASONAL JOBS
Original "Existing Jobs" (Prior to Exemption):
Mgmt.
Jobs
Annual
Wage
# of Non-
mgmt. Jobs
Avg. Annual
Wage
# of Jobs
Annual
Wage
List "New Jobs" Below (Created since
Exemption and distinguish between Mgmt. and
Non - Mgmt.):
Mgmt.
Hire
Date
Avg.
Annual
Wage
Non -mgmt.
Hire Date
Avg. Annual
Wage
Hire Date
Avg.
Annual
Wage
Net increase in full -time employees since exemption was granted: management non - management
Percentage increase in full -time employees since exemption was granted: management %; non - management %
Net increase in seasonal employees since exemption was granted:
Percentage increase in seasonal employees since exemption was granted: %
SECTION 11— SALES FACTOR
Total sales in the Metropolitan Statistical Area ending December 31' of prior year from this facility: $
Total sales everywhere for this facility: $
Sales factor for the facility receiving exemption:
Percentage increase in productive output resulting from this expansion since year exemption was granted:
SECTION 12 — CITY OFFICE SPACE — for use by corporation newly located in the City
The date of location in City:
Number of full -time employees at the time of the application:
Number of current full -time employees at this location:
SECTION 13 — DATE OF ANNUAL REPORT
I agree to furnish such other information as the City of Clearwater or Pinellas County Property Appraiser may request in regard
to the Economic Development Ad Valorem Tax Exemption granted. I hereby certify that the information and valuation stated
above by me is true, correct and complete to the best of my knowledge and belief, including any attached statements,
schedules, etc. (If prepared by someone other than the owner, his declaration is based on all information of which he has any
knowledge.)
Owner Name and Title:
Signature:
Type or Print Name:
Date:
PREPARER/AUTHORIZED AGENT — Name and Address:
Telephone:
E -mail:
Signature:
Type or Print Name:
Date:
State of Florida
County of Pinellas
Fax:
On this, the day of , 20 , before me a notary public, the undersigned officer, personally
appeared , known to me (or satisfactorily proven) to be the person whose name is subscribed to
the within instrument, and acknowledged that he executed the same for the purposed therein contained.
In witness hereof, I hereunto set my hand and official seal.
Notary Public
(Stamp /Seal)