8536-14ORDINANCE NO. 8536-14
AN ORDINANCE OF THE CITY OF CLEARWATER, FLORIDA,
APPROVING FOR SKYE LANE PROPERTIES, LLC, A HERITAGE
INSURANCE COMPANY AND HERITAGE PROPERTY & CASUALTY
INSURANCE COMPANY, A HERITAGE INSURANCE COMPANY, 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 Skye Lane Properties, LLC, and Heritage Property &
Casualty Insurance Company — 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, Skye Lane Properties, LLC, A
Heritage Insurance Company, and Heritage Property & Casualty
Insurance Company, hereunder known as "the Company ", submitted an
application to the City requesting an ad valorem tax exemption of the
qualifying improvements to real property and qualifying tangible personal
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property specified in its application, 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 Exemption Period.
(4) MarineMax, Inc., hereunder known as "the Tenant ", submitted an
application to the City requesting an ad valorem tax exemption of the
qualifying tangible personal property specified in its application,
commencing with Tax Year 2014, ( "the Tenant Application ") is
incorporated herein by reference. The Tenant will relocate 99 jobs from its
current location within the City of Clearwater and add 30 new jobs by
September 1, 2017. The Tenant lease term is September 1, 2014 through
September 1, 2024.
(5)
In its application, the Company stated the following:
a. Name of business: Skye Lane Properties, LLC, A Heritage
Insurance Company located at 2600/2650 McCormick Drive,
Clearwater, 33759; and Heritage Property & Casualty Insurance
Company, A Heritage Insurance Company currently located at 700
Central Avenue, Ste 500, St. Petersburg, FL 33701;
b. The Company will relocate 54 jobs from St. Petersburg and create
a total of 11 new jobs by December 31, 2015, with an average
annual wage of all new jobs that shall together be no Tess than
$87,000 which is 208% of the Pinellas County Annual Average
Wage as published by Enterprise Florida, Inc. on January 1, 2013;
c. Through December 31, 2015, the Company represents that it will
invest Six Million One Hundred Thousand Dollars ($6,100,000.00)
in the expansion of the 2600/2650 McCormick Drive property,
including the renovation of the facility and construction of a tri -level
parking deck, and the purchase of new furniture, fixtures,
equipment;
d. The Company is a newly licensed property and casualty insurance
company licensed to conduct business in Florida. There are no
other property and casualty insurers in Clearwater established to
serve the Florida residential property owner community.
e. The Company 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
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(7)
leverage the services of WorkNet Pinellas as well as local staffing
agencies to assist in filling positions;
f. The Company is committed to active involvement in the local
community. The Company has made significant contributions to
several local charities including the Pinellas Education Foundation
and Step Up for Students;
f. Environmental sustainability, striving to maintain a paperless
workflow in an industry that typically generates and consumes vast
pager resources;
g. $36.3 million (27 %) of the Company's revenues are sales inside the
Tampa -St. Petersburg - Clearwater Metropolitan Statistical Area
(MSA) with $96.6 million (73 %) of sales outside the 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.
The Property Appraiser report, dated November 25, 2013, included the
following information:
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 was granted at 75%
and the property for which the exemption is requested would
otherwise have been subject to taxation: $18,960;
d. Estimate of the taxable value lost to the City in Year 1 if the
exemption applied for was granted at 75 %: Improvements to Real
Property: $4,720,000; Personal Property: $184,000;
e. A determination that the Company meets the definition of
"Expansion of an Existing Business ", as defined in Section
196.012(16), Florida Statutes.
(8) The Company Application meets all statutory and ordinance requirements.
(b) Grant of Ad Valorem Tax Exemption.
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(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 54 full -time employees at its
current facility in St. Petersburg, Florida, location and represents
that it will relocate these employees and will create 11 new jobs by
December 31, 2015.
b. The Company represents that it will invest Six Million One Hundred
Thousand Dollars ($6,100,000.00) in the expansion of the
2600/2650 McCormick Drive property, including the renovation of
the facility, construction of a tri -level parking deck and the purchase
of new furniture, fixtures, equipment;
c. The Company represents that to the extent that qualified suppliers
are available in City of Clearwater, it will purchase its materials and
equipment locally and use local labor as available;
d. The Company represents an estimated 5% of its workforce will
reside in City of Clearwater and 75% in Pinellas County;
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 73% of its sales are 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
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 "Skye Lane
Properties, LLC, and Heritage Property & Casualty Insurance Company
Ad Valorem Tax Exemption ") as follows:
a. Seventy -five percent (75 %) for the period of five (5) years
commencing with Tax Year 2014 through Tax Year 2018; and
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(3)
b. Fifty percent (50 %) for the period of five (5) years commencing with
Tax Year 2019 through Tax Year 2023;
The Skye Lane Properties, LLC, and Heritage Property & Casualty
Insurance Company Ad Valorem Tax Exemption is conditioned upon the
following:
a. For the period of the Exemption, the Tenant remains at 2600/2650
McCormick Drive,
b. The Company shall enter 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 Skye Lane Properties, LLC, and Heritage
Property & Casualty Insurance Company 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 Skye Lane
Properties, LLC, and Heritage Insurance Property & Casualty Insurance
Company Ad Valorem Tax Exemption and the City's recovery of any taxes
exempted during the Exemption Period.
(c) Applicability.
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 Skye Lane Properties, LLC, and Heritage Property & Casualty Insurance
Company Ad Valorem Tax Exemption shall be in effect through Tax Year 2023,
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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:
---ckwke /LCt4 S
George N. Cretekos
Mayor
Approved as to form:
DEC 1 9 2013
JAN 1 6 2014
CITY OF CLEARWATER, FLORIDA
By: Le) :a;a;H,� . 4d44
William B. Horne II
City Manager
Attest:
Rosemarie Call
City Clerk
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