ECONOMIC INCENTIVES AGREEMENTECONOMIC INCENTIVES AGREEMENT
"INSTRUMENT TRANSFORMERS, INC."
THIS AGREEMENT, entered into this 10 ' day oU/cwc.il , 2014, by and
between the City of Clearwater, Florida (hereafter "City "), whose address is P.O. Box
4748, Clearwater, Florida 33758 -4748, a Florida Municipal Corporation and Instrument
Transformers, Inc., whose address is 1907 Calumet Street, Clearwater, Florida 33765
also known as 1925 Calumet Street, Clearwater, Florida 33765 (hereinafter "the
Company");
WITNESSETH:
WHEREAS, the City believes that local governments should support economic
growth by providing an incentive for employment opportunities that will lead to the
improvement of the quality of life of the residents of the City , and the positive expansion
of the economy; and
WHEREAS, it is a recognized function of local government to promote economic
development within its jurisdiction by providing financial incentives that will encourage
new businesses to relocate within its jurisdiction and existing businesses to expand,
thereby creating employment opportunities that will benefit the entire community; and
WHEREAS, the economic recession from 2008 to 2012 has resulted in a high
unemployment rate in the City, impacting the quality of life for the citizens of the City
and the sustainability of local businesses; and
WHEREAS, the Company is an electrical transformer manufacturing company
currently operating in the City; and
WHEREAS, the Company is seeking to expand, thereby adding 143 jobs
meeting 100% of the Pinellas County average annual wage as published by Enterprise
Florida, Inc. in January, 2013; and
WHEREAS, the Company requested consideration of incentives including, but
not limited to, Qualified Target Industry Tax Refund (QTI) Local Match, Economic
Development Ad Valorem Tax Exemption, reduction, elimination or reimbursement of
road improvement costs, and fees including impact, permit, application, plans
examination, inspection, utility, and other fees, and commitment to fast track permitting;
and
WHEREAS, the City Council of the City of Clearwater (the "City Council ")
adopted Resolution 13 -18 on August 14, 2013, recommending the Company, then using
the alias name Project Banner as permitted under Florida statutes 288.075, be
approved as a qualified target industry business pursuant to section 288.106 Florida
statutes and provided local financial support in the form of cash as required by section
288.106; and
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WHEREAS, on August 14, 2013, the City Council also adopted Resolution 13-
21, authorizing the Economic Development & Housing Director (the "Director ") to
negotiate possible tax exemptions, fee waivers or reimbursements, or other incentives
to encourage Project Banner to expand within the City of Clearwater; and
WHEREAS, on September 5, 2013, as an inducement to the Company to
expand its Clearwater location, the Director entered into negotiations to provide
additional incentives; and
WHEREAS, the City Council adopted Ordinance 8436 -13 on November 20,
2013, to offer ad valorem tax exemptions to new qualifying businesses relocating to the
City and to expansions of qualifying businesses already situated in the City; and
WHEREAS, the City Council adopted Ordinance 8524 -13 on December 19,
2013, granting an economic development ad valorem tax exemption for the Company
for tax year 2014 through tax year 2023 based on certain findings and conditions; and
WHEREAS, the City Council also adopted Ordinance 8508 -13 on December 19,
2013, amending the City of Clearwater Code of Ordinances, Chapter 29, Taxation and
Other Fees, Article III, Public Service Tax, Section 29.76 Exemptions, providing an
exemption of public service taxes on a decreasing graduated basis for a period of five
years beginning on March 1, 2015, through February 28, 2019, for the purchase of
electricity or metered natural gas when purchased by an industrial customer within the
North American Industry Classification System Industry Number 33441 and related
subcategories for which the Company is eligible to receive such; and
WHEREAS, the Director is recommending the reimbursement of the City portion
of fees including, but not limited to, impact, permit, application, examination and
inspection fees associated with the project as substantially proposed in the approved
Community Development Code site plan with conditions (EXHIBIT A) as a part of the
inducement for the Company to expand with the City; and
WHEREAS, in order to address the potential need for a northbound to
westbound left turn lane on Hercules Avenue at Calumet Street in the City, the Director
also recommends the City install approximately 1600 lineal feet of double yellow center
line and a traditional striped island between Calumet Street on the north end and a point
800 lineal feet to the south which will effectively create a 120 lineal foot northbound left
turn lane which will accommodate six to eight vehicles (hereinafter, the "Road
Improvements ") as recommended in the Traffic Study dated September 12, 2013, by
RAYSOR Transportation Consulting, LLC, of Tampa, Florida (EXHIBIT B); and
WHEREAS, in order to meet the Company's timeframes for construction, job
creation and capital investment, the Director also recommends extension of the gas
main /service line and installation of the natural gas meter at a location appropriate and
customary on the Project site, and commitment to provide fast track permitting; and
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NOW THEREFORE, in consideration of the premises, the mutual covenants, and
promises contained herein, and other good and valuable consideration, the Company
and the City agree and covenant each with the other as follows:
A. GENERALLY
1. Recitals. The foregoing recitals are true and correct and are incorporated within
and form a part of this Agreement.
B. PURPOSE
1. The purpose of this Agreement is to secure economic assistance for the expansion
as provided in Exhibit A through the City which supports the implementation of the
approved citywide Economic Development Strategic Plan adopted November,
2011, which calls for the use of incentives and other tools to encourage desired
development.
C. PROPOSAL
1. The Company proposes to create 143 new jobs by December 31, 2015, and to
invest approximately $47.3 million in the expansion of its Clearwater facility whose
address is 1907 Calumet Street, also known as 1925 Calumet Street, including the
purchase and /or lease of new equipment. The proposal for the expansion of the
property, specifically including the design, construction, equipping, completion, and
use of the property (as described in EXHIBIT A) is found by the City and
acknowledged by the Company to be consistent with the furtherance of the
objectives of the City's Economic Development Strategic Plan and to be in the best
interests of the citizens of the City (hereinafter, the "Project ").
2. During the Term of this Agreement, the Project may not be substantially altered or
modified, or be removed or demolished without prior written approval of the City. In
addition, the property may not be sold, or otherwise transferred without prior City
approval. The City's approval shall not be unreasonably withheld. Any of these
actions may result in a repayment/reimbursement of the subject funds to the City by
the Company which shall be the City's sole and exclusive remedy against the
Company.
D. CITY OBLIGATIONS
1. The City agrees to reimburse the Company the city - portion of impact, permit,
application, inspection, plans examination and other fees charged in the usual and
customary process of constructing the Project in an amount not to exceed $262,500
upon issuance of a certificate of occupancy for the Project.
2. The City also agrees to provide certain additional materials, labor, and activities for
which a value of $12,500 has been established: (a) the City will provide Road
Improvements at no cost to the Company. The Road Improvements are to be
completed by the City prior to issuance of Certificate of Occupancy; (b) the City will
provide fast track permitting to facilitate the prompt and timely response to permit
review. (c) Clearwater Gas System, an enterprise utility owned and operated by the
City of Clearwater a City, will provide an extension of the gas main /service line and
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install an appropriate meter at an appropriate and customary location on the Project
site. Any gas piping installed beyond the outlet of CGS's meter shall be paid for
and owned by the Company. In addition, all pipe installation services beyond the
meter shall be performed by a licensed natural gas contractor and will be the
Company's responsibility to maintain such gas pipe.
E. SCHEDULE
1. The date of commencement, from which the contract time is measured, is the date
of the execution of this Agreement.
2. The Contractor shall achieve full completion of the Work as evidenced by receipt of
a Certificate of Occupancy, not later than December 31, 2015, subject to
adjustments of this term as may be authorized by the City.
F. PROJECT ADMINISTRATION
1. The Company shall cooperate in good faith with the City during the full course of
the Work to facilitate the completion of the Work. The Company understands that
acceptance of the economic incentives requires the City or the City's agents to
have reasonable access to the property upon three (3) days advance notice for the
purpose of inspections to determine compliance with the approved plans and
specifications.
2. The Company shall secure and pay for all necessary approvals, easements,
assessments and charges required by the City of Clearwater Community
Development Code for the construction, use, or occupancy of permanent structures
or permanent changes in existing facilities.
G. DEFAULT BY THE COMPANY
1. This Agreement may be terminated in its entirety or reimbursement of fees may be
denied for failure to complete the Project in a timely manner, which shall constitute
a default under this Agreement. In the event of a default by the Company that has
not been cured within thirty (30) days, the City's sole and exclusive remedy against
the Company is to see repayment/reimbursement of the subject funds paid by the
City to the Company.
H. TERM
1. 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
December 31, 2015.
I. MISCELLANEOUS PROVISIONS
1. This Agreement provides neither a representation nor assurance that the Project
can be developed and carried through to completion by the Company at the
property herein described. The intent of the Agreement is to provide a mutually
agreed upon framework by which the City will provide economic incentives to the
Company, provided that all requirements have been met and remain satisfied.
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2. No member, officer or employee of the City or its designees or agents, and no other
public official of such locality who exercises any functions or responsibilities with
respect to this agreement during his tenure or for one year thereafter shall have any
interest, direct or indirect, in any contract or subcontract, or the proceeds thereof,
for work to be performed in connection with this contract.
3. This Agreement shall be governed by the laws of the State of Florida, and venue
shall be in Pinellas County.
Should any section or part of any section of this Agreement be rendered void,
invalid, or unenforceable by any court of law, for any reason, such a determination
shall not render void, invalid, or unenforceable any other section or any part of any
section in this,Contract.
5. This Agreement is non - assignable by either party and constitutes the entire
Agreement between the Company and City and all prior or contemporaneous oral
and written agreements or representations of any nature with reference to the
subject of the agreement are canceled and superseded by the provisions of this
agreement.
THE REMAINDER OF THIS PAGE LEFT INTENTIONALLY BLANK
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IN WITNESS WHEREOF, the Company and City have executed or caused these
presents to be executed by its respective authorized representatives to be effective as
of the day and year first above written. This Agreement is executed in two original
copies of which one is to be delivered to the Company and one to the City.
Countersigned: CITY OF CLEARWATER, FLORIDA
--'c 9/ Ul frtk1.0s
George N. Cretekos
Mayor
By: LO d9-6 4-44A- 6.
William B. Horne II
City Manager
Approved t form: Attest:
Pamela K. kin
City Attorney
INSTRUMENT TRH ANSFORMERS, INC.
BY: a nhe_ci
Its
Oaca_
Rosemarie Call
City Clerk
nature
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Date
a .a.4, 14,
Date
STATE OF FLORIDA )
COUNTY OF PINELLAS )
The foregoing instrument was acknowledged before me this 44 day of
, 20 14., by Barr c, Koo f sylk , who is personaII known to me
K A as identification.
Fe- bruac-
or produce
Print/Type Name: -' \A —c7 J\kn (-9;
Notary Public
,,, P,,,,,,, KATHLEEN SCHOOLEY
' _ � .1 ��.% Notary Public - State of Florida
'= ,E My Comm. Expires May 8, 2016
Commission # EE 196832
'OF "W Bonded Through National Notary Assn.
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