8524-13ORDINANCE NO. 8524 -13
AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA,
APPROVING FOR INSTRUMENT TRANSFORMERS, INC. AN
EXEMPTION FROM CERTAIN AD VALOREM TAXATION; PROVIDING
FINDINGS OF FACT; PROVIDING GRANTING OF AD VALOREM TAX
EXEMPTION; PROVIDING FOR APPLICABILITY; PROVIDING FOR A
SUNSET DATE; PROVIDING FOR SEVERABILITY AND PROVIDING
FOR AN EFFECTIVE DATE.
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF CLEARWATER, FLORIDA:
Section 1. That an Economic Development Ad Valorem tax exemption
shall be approved for Instrument Transformers, Inc. — Tax year 2014
through Tax year 2023 as provided herein:
(a) Findings of Fact
(1) 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 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. On November 6, 2012, voters of the City of
Clearwater approved the referendum, authorizing the City Council of the
City of Clearwater (the "Council ") to grant Economic Development Ad
Valorem Tax Exemption pursuant to state law.
(2) Chapter 29, Article VII of the Code of Ordinances of the City of
Clearwater (the "Code ") sets forth the process and procedures for
implementing the Economic Development Ad Valorem Tax Exemption
program.
(3)
Pursuant to Section 29.204 of the Code, Instrument Transformers, Inc.
( "the Company ") submitted an application to the City requesting an ad
valorem tax exemption for seventy -five percent (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 ten
(10) years, commencing with Tax Year 2014 ( "the Company Application ").
The Company Application is incorporated herein by reference, and a copy
of said Application shall be retained by the City of Clearwater Economic
Development & Housing Department for at least the duration of the
Ord 8524 -13 Instrument Transformers, Inc, - ED AVTE 1
Exemption Period.
(4) In its application, the Company stated the following:
(5)
a. Name of business: Instrument Transformers, Inc; Location: 1907
Calumet Street, Clearwater, Florida 33765 also known as 1925
Calumet Street, Clearwater, Florida 33765;
b. It will create a total of 143 new jobs by December 31, 2015, an
average annual wage of all new jobs that shall together be no less
than $42,000;
c. Through December 31, 2015, it will invest approximately Forty -Nine
Million Dollars ($49,000,000.00) in the expansion of its City of
Clearwater facility, including the purchase or lease of new
equipment;
d. It produces an innovative line of products with unique licensed
designs and with GE's global breadth, size and commitment to
innovation, it is able to better understand world challenges and turn
them into opportunities;
e. It is committed to local procurement and will strive to incorporate as
many qualified local and small business firms as appropriate in
each trade category for the proposed site preparation and building
construction and is committed to hiring locally and leverages the
services of WorkNet Pinellas as well as local staffing agencies to
assist in filling positions;
f. It is committed to environmental sustainability as evidenced by the
Company's recent receipt of the GE eCO2 award for exemplary
progress toward meeting Corporate environmental goals.
Additionally, in Q12013, GE installed an SF6 recovery system at
the Company facility to drastically reduce emissions of this potent
greenhouse gas;
g.
99.75% of its revenues are generated from sales outside the
Tampa -St. Petersburg - Clearwater Metropolitan Statistical Area
(MSA).
Pursuant to Section 29.205 of the Code, the Property Appraiser completed
its review of the Company Application and submitted its report to the City,
dated November 8, 2013. The Property Appraiser report included the
following information:
Ord 8524 -13 Instrument Transformers, Inc, - ED AVTE 2
a. Total revenue available to the City for the current fiscal year from ad
valorem tax sources: $39,922,918;
b. Revenue lost to the City for the current fiscal year by virtue of
exemptions previously granted under this section: $0;
c. Estimate of the revenue which would be lost to the City 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: $195,065;
d. Estimate of the taxable value lost to the City if the exemption applied
for was granted: Improvements to Real Property: $21,360,000;
Personal Property: $16,480,000;
e. A determination that the Company meets the definition of "Expansion
of an Existing Business ", as defined in Section 196.012(16), Florida
Statutes.
(6) The Instrument Transformers Application meets all statutory and
ordinance requirements.
(b) Grant of Ad Valorem Tax Exemption.
(1) Pursuant to Section 29.205(c) of the Code, the Council reviewed the
Company Application, applied the City of Clearwater Economic
Development Policy Guidelines, and finds that:
a. The Company currently employs 436 full -time employees at its City
of Clearwater facility and represents that that it will create a total of
143 new jobs by December 31, 2015, with an average annual wage
of all new jobs that shall together be no less than Forty -Two
Thousand Dollars ($42,000);
b. The Company represents that it will invest Forty -Nine Million
Dollars ($49,000,000.00) in the expansion of its City of Clearwater
facility, including the purchase or lease of new equipment;
c. The Company is an innovative business;
d. The Company represents that to the extent that qualified suppliers
are available in City of Clearwater, it will purchase its materials and
equipment locally;
e. The Company represents an estimated 6% of its workforce will
reside in City of Clearwater;
Ord 8524 -13 Instrument Transformers, Inc, - ED AVTE 3
e. The Company will continue to make a net positive contribution to
the local economy as determined by the impact analysis conducted;
and
f. More than 50% of its product is shipped outside of the MSA.
As a result of the above findings, the Council concludes that granting an
Economic Development Ad Valorem Tax Exemption to the Company to
encourage expansion of its business will promote economic sustainability
within the City through the creation of jobs and utilization of local
resources.
(2) The Council hereby grants to the Company and establishes on behalf of
the Company an Economic Development Ad Valorem Tax Exemption of
seventy -five percent (75 %) 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 Application, acquired by the
Company after the adoption of this Ordinance to facilitate the expansion of
its business (the "Instrument Transformers, Inc. Ad Valorem Tax
Exemption ").
(3)
The Instrument Transformers Ad Valorem Tax Exemption shall be for a
period of ten (10) tax years (the "Exemption Period "), commencing with
Tax Year 2014 through Tax Year 2023. The Instrument Transformers Ad
Valorem Tax Exemption is conditioned upon the Company entering into an
agreement with the City stating that it shall remain in compliance with
Section 29.207 of the Code throughout the Exemption Period as well as
the Business Maintenance and Continued Performance provision of the
Company Application. Should the Company fail to comply with Section
29.207 of the Code or the Business Maintenance and Continued
Performance provision of the Company Application, the Council may
revoke the Instrument Transformers Ad Valorem Tax Exemption and
recover any taxes exempted during the Exemption Period pursuant to
Section 29.208 of the Code.
(4) The Company agrees to abide by the terms and conditions set forth in
Article VII of Chapter 29 of the Code, as amended from time to time, as
well as any policies and procedures enacted by the Council from time to
time related to the Economic Development Ad Valorem Tax Exemption
program. Failure to do so may result in revocation of the Instrument
Transformers Ad Valorem Tax Exemption and the City's recovery of any
taxes exempted during the Exemption Period.
(c) Applicability.
Ord 8524 -13 Instrument Transformers, Inc, - ED AVTE 4
The City ad valorem tax exemption granted herein applies only to ad valorem
taxes levied by City of Clearwater on the qualifying improvements to real property
and qualifying tangible property specified in the Company Application. The
exemption does not apply to taxes levied by a county, school district, or any
special taxing district, or to taxes levied for the payment of bonds or taxes
authorized by a vote of the electors pursuant to Section 9 and Section 12, Article
VII of the State Constitution.
(d) Sunset Date.
The Instrument Transformers Ad Valorem Tax Exemption shall be in effect
through Tax Year 2023, at which time this ordinance shall automatically sunset
and no longer be in force and effect.
Section 2. If any provision of this article or the application thereof to any
person or circumstance is held invalid, the invalidity shall not affect other
provisions or applications of the act which can be given effect without the invalid
provision or applications. To this end, the provisions of this article are declared
severable.
Section 3. The provisions of this Ordinance shall become effective
immediately upon adoption.
PASSED ON FIRST READING
PASSED ON SECOND AND FINAL
READING AND ADOPTED
Countersigned:
CtQAD IVACr VVA0
George N. Cretekos
Mayor
DEC 0 5 2013
DEC 1 9 2013
CITY OF CLEARWATER, FLORIDA
By:
William B. Horne II
City Manager
Approved as to form: Attest:
City Attorney
Ord 8524 -13 Instrument Transformers, Inc, - ED AVTE 5
Rosemarie CaII
City Clerk