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01/18/2000ENTERPRISE ZONE DEVELOPMENT AGENCY MEETING CITY OF CLEARWATER January 18, 2000 Present: Bob Kinney Vice-Chair Lt. Don Hall Board Member/Police Department Denise Jefferson Board Member Ralph Linn Board Member Rick Rosa Board Member/Community Response Team Rev. Mack Sigmon Board Member Cheryl Wade Board Member Absent: Steve Bell Board Member John Connelly Chair Also Present: Miles Ballogg Economic Development Programs Manager Leslie Dougall-Sides Assistant City Attorney Diane Hufford Business Development The Vice-Chair called the meeting to order at 10:00 a.m. at the Greater Clearwater Chamber of Commerce building, followed by the Invocation and Pledge of Allegiance. To provide continuity for research, items are in agenda order although not necessarily discussed in that order. ITEM 4 – Introductions Members and guest speakers introduced themselves. ITEM 5 – Minutes of Previous Meetings Member Kinney requested that regarding the minutes of October 25, 1999, Item 6A, paragraph one, sentence 7 read: “Mr. Ballogg said he cannot…” Member Sigmon moved to approve the minutes as amended. The motion was duly seconded and carried unanimously. ITEM 6 – Staff Reports A. Enterprise Zone Boundary Amendment (Ballogg) Economic Development Programs Manager Miles Ballogg referred to a letter addressed to Mayor Aungst from Director of the Office of Tourism, Trade, and Economic Development, J. Antonio Villamil. Mr. Villamil stated his office had reviewed Clearwater’s request to amend the boundary of the Clearwater Enterprise Zone and has approved the request. As a result of the approved boundary amendment, businesses located within the amended area will be eligible for the financial incentives offered by the State pursuant to the FEZP (Florida Enterprise Zone Program). B. EZDA Signature Authorization Form (Ballogg) Mr. Ballogg reviewed the EZDA (Enterprise Zone Development Agency) signature authorization form, noting specific staff members that have been authorized to sign the Florida Department of Revenue forms for the FEZP. C. Community Contribution Tax Credit Awards (Ballogg) Mr. Ballogg said the CCTCP (Community Contribution Tax Credit Program) is a financial incentive (50% tax credit) to encourage Florida corporations to make donations toward community development and housing projects for low-income persons. Donations to approve community development projects allow corporations to receive a tax credit equal to 50% of the value of the donation. Businesses may take the credit on Florida corporate income tax, franchise tax, or insurance premium tax. He reported tax credits of $4,625 from Northern Trust Bank of Florida, N.A. and $25,000 from Raymond James Financial, Inc. have been approved by the State for contribution to the Morton Plant Mease Health Care Foundation, Inc. D. Business Expansion Program and EZ incentives activities Business Development Manager Diane Hufford gave an overview of the Business Expansion Program and EZ incentives activities. Under the Brownfields program, Phase I & Phase II assessments, development incentives, site specific quality assurance program plan, State and Federal remediation tax credits, revolving loan fund and State loan guarantee program apply. The Enterprise Zone incentive has five different components: 1) Jobs tax credit (corporate income tax); 2) Jobs tax credit (sales and use tax); 3) property tax credit (corporate income tax); 4) sales tax refund for building materials used in rehabilitation of real property; and 5) community contribution on tax credit program. Grow Clearwater Fund, Quick Response Training and the Qualified Target Industry Tax Refund also are offered. Draft Enterprise Zone Brochure (Hufford/Ballogg) Mr. Ballogg and Ms. Hufford reviewed a draft Enterprise Zone brochure. Upon completion, the brochure will be distributed to Enterprise Zone businesses. In response to a question, Mr. Ballogg said there are approximately 11,000 residents in the Enterprise Zone. ITEM 7 – Action Items A. Approval – Next Meeting Date – May 22, 2000 – 10:00 am. Clearwater Chamber of Commerce (Other recommended dates July 17, 2000, and November 13, 2000) Member Sigmon moved to approve the recommended meetings dates. The motion was duly seconded and carried unanimously. ITEM 8 – Other Business A. Presentation – Community Contribution Tax Credit – Karen Fenton – Morton Plant Mease Health Care Foundation Karen Fenton, Morton Plant Mease Health Care Foundation, presented an overview of the Community Contribution Tax Credit Program. She said the program provides a financial incentive to encourage Florida corporations to make donations toward community development. Corporations paying Florida corporate income tax, franchise tax, or insurance premium tax and earning more than $5,000 are eligible for a tax credit equal to 50% of the value of donations to approved community development projects. Businesses making donations to eligible sponsors file a request form with OTTED (Office of Tourism, Trade, and Economic Development). The State allotted fund is depleted as contributions are approved. Over the last 3 years the fund has grown to $10 million. Businesses are eligible to receive credits of up to $200,000 per tax year. Unused credits may be carried forward for up to 5 years. Specific criteria are necessary to qualify as a sponsor. In response to a question, Ms. Fenton said the EZDA is eligible for tax credits. The State audits tax contributions. B. Presentation – Clearwater Brownfields Program – Miles Ballogg Mr. Ballogg reviewed the Clearwater Brownfields Program and programs accomplishments. He said the program is a tool to encourage employment of residents in Brownfields areas. In response to a question, he said various owners own condemned properties throughout the Brownfields area. It was remarked that regulatory issues need to be presented to the Commission to address problems with property owners of condemned properties and related clean-up costs. It was suggested imposing an assessment on such properties. ITEM 9 – Public Comment Period – None. ITEM 10 – Adjournment The meeting adjourned at approximately 11:30 a.m.