Economic Development Council of Tallahassee/Leon County


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City of Tallahassee/Leon County Targeted Business Pilot Program
Summary
The Targeted Business Pilot Program (TBPP) is an initiative to induce business growth that is beneficial to the City of Tallahassee and Leon County. The program is designed to help implement the City and County's long-term vision for economically viable and environmentally sustainable growth. The TBPP offers incentives to new and existing businesses that create value-added jobs within the City of Tallahassee and Leon County. The program seeks to reward businesses that will diversify the economy, are suited to the City and County's business mix, and will generate revenue growth from the sales of goods and services outside the local economy. The program also seeks to reward businesses that locate in designated target areas for economic growth and development; that build environmentally sensitive projects; that do business with other local businesses; and that practice good corporate citizenship. Funds awarded under this program would be used to reimburse 1) up to 100% of the cost of development fees and 2) a portion of the capital investment of the business project based on ad valorem taxes paid. The amount of funding would be based on a scoring system evaluated by a review committee with final approval and award granted by the City and County Commissions, respectively. Program Outline I. ELIGIBILITY - New and Existing Businesses Companies which are Target Industries of the Economic Development Council (e.g., value-added jobs that will diversify the economy and are suited to the City and County's business mix. II. INCENTIVES/USE OF FUNDS a. Reimbursement of up to 100% of all eligible City of Tallahassee/Leon County development fees b. Reimbursement of up to 100% of an amount equivalent to the City ad valorem taxes paid on land, improvements, and tangible personal property for up to 10 years-as a means to reimburse a part of the capital investment cost required to relocate or expand a business and reimbursement of the County ad valorem taxes equal to the amount reimbursed by the City. Expansion projects would qualify only for the incremental increase in ad valorem taxes. III. APPLICATION PROCESS/PAYMENT METHOD a. A business submits a preliminary application to determine eligibility when development/building permits are filed. For projects already under construction, the preliminary application must be filed prior to receipt of the first certificate of occupancy for the building. b. If the preliminary application is approved, a Reimbursement Agreement with the City and County is executed to finalize the inducement and performance requirements. c. Twelve months after receiving its Certificate of Occupancy, the business can file its first application for reimbursement. d. Reimbursement of development fees (up to 100%) are paid in lump sum. e. Annual payments of the funds that are equivalent to the City ad valorem taxes paid (up to 100%) and an equal dollar amount from the County will be made one year in arrears over a period of time up to ten years (in accordance with the scoring system below). The amount of award is subject to reduction if performance measures are not met. f. Annual performance reports are submitted to the City of Tallahassee and Leon County. IV. SCORING SYSTEM/AWARD APPROVAL a. As a screening mechanism, prior to being admitted into the scoring phase of the evaluation process, businesses must provide with their application audited financial statements for the previous two years to evidence that they are a strong, growing company in which the City and County should invest. b. A business profile score for the application is determined on a rating system that gives points to the following categories (100 points maximum with total points determining percentage and length of inducement): Number of employees - 25 Points Salary levels - 25 Points Amount of capital investment - 15 Points Location in designated target areas - 10 Points Environmental sensitivity of project design/redevelopment achievements - 10 Points Local business promotion - 10 Points Corporate citizenship - 5 Points c. Additionally, the Economic Development Council will prepare an economic impact analysis to determine whether the project shows a return on investment to the community. d. A committee made up of representatives from City staff and the Economic Development Council, as well as the Treasurer-Clerk and County Administrator, will score the applications and forward its recommendation to the City and County Commissions. e. The City and County Commissions, respectively, will make a final determination on the award of inducements under this program. f. The program is a three-year pilot program with annual evaluations. This will provide an opportunity to eliminate the program if it proves ineffective or to modify it to improve results based on experience in the Tallahassee market. V. APPROXIMATE TIMELINE Preliminary Application Applicant files Preliminary Application...............Day 1 EDC determines it is a Target Industry.............About Day 7 Committee meets and makes recommendation...Day 10-37 Commission approves Preliminary Application.....About Day 45-60 Reimbursement Application Building or expansion opens New development is added to tax rolls...............The following January 1st Applicant files Reimb. App. for development fees..After 12 months of opening Applicant pays ad valorem taxes......................Nov. thru Mar. after 2), above, occurs Applicant files Reimb. App. for ad valorem taxes..The April after 4), above, occurs Committee determines amount of reimbursement..Within 30 days of application Frequently Asked Questions For additional information contact the Economic Development Council of Tallahassee/Leon County, Inc. (850) 224-8116