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County Administrator's Report 13. 1.
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| BCC Regular Meeting |
Budget & Finance Consent |
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| RECOMMENDATION: |
Recommendation Concerning a Navy Federal Credit Union Rebate - Larry M. Newsom, Interim County Administrator
That the Board approve a rebate to Navy Federal Credit Union (NFCU), in the amount of $10,479.26, authorized by Escambia County Ordinance 2007-56, and approved by the Board on September 16, 2010. NFCU has completed year five of the criteria established in the Economic Development Agreement between Escambia County and Navy Federal Credit Union, dated April 2, 2009.
[Funding: Funds are available in Fund 102, Economic Development Fund, Cost Center 360704, Account 58201, Aids to Private Organizations] |
| BACKGROUND: |
By adoption of Ordinance 2007-56, Escambia County created the Economic Development Incentive Ordinance now codified in Sections 78-301 through 78-308 of the Escambia County Code of Ordinances. The intent of the Ordinance is to offer additional incentives to attract, retain, and foster the expansion of business enterprises that provide above-average salaries, benefits and employment opportunities to county residents.
Pursuant to Section 78-306, economic incentives offered under this provision shall be in the form of rebates of ad valorem property taxes, development fees, franchise fees, telecommunications taxes, gasoline taxes and any other available unrestricted general fund revenues that have been paid to the county. Said incentives may be available to certain qualifying business enterprises based upon the number of full time jobs and the corresponding average wage of those jobs created within Escambia County.
Pursuant to Section 78-307, a qualified business may be awarded rebates for eligible expenses that were paid to the county for the year the business created the jobs giving rise to the rebate with said amount being paid over a five year period in equal installments. At the end of the five year period, the business may also be awarded a rebate in the amount of any other unreimbursed eligible expenses that were paid to the county in the preceding five years; however, the total rebate paid by the County may not exceed the maximum amount for which the business is eligible and/or the total amount actually paid to the county during the five year period.
In 2009, Navy Federal Credit Union (NFCU) submitted an application seeking qualification for rebates under the foregoing provisions. The application was approved, and on April 2, 2009, the County entered into an Economic Development Agreement with NFCU in which NFCU agreed to add no less than 75 full time employees with an average wage of $31,500 on or before March 3, 2010. Upon meeting said requirements, the County agreed to pay NFCU rebates in accordance with Ordinance 2007-56 in an amount not to exceed $305,767.50.
In accordance with the terms of the aforementioned Agreement, NFCU provided the necessary documentation to show compliance with the employment requirements and further provided proof of payment for amounts eligible for reimbursement that were paid to the County during the prior year when NFCU created the jobs. During FY 2009-2010, NFCU paid a total of $52,396.33 in eligible reimbursable expenses to the County. As provided in the Ordinance, NFCU may be eligible for a rebate in the amount of $52,396.33 paid in annually in five equal installments of $10,479.25. Annual payment of said amount will be subject to NFCU providing the necessary documentation showing compliance with the employment requirements and Board approval.
At the end of year five (FY 2013-2014), NFCU may also be eligible for a rebate in the amount of any other unreimbursed eligible expenses that were paid to the County in the preceding five years; however, the total rebate paid by the County may not exceed the maximum amount for which the business is eligible ($305,767.50) and/or the total amount actually paid to the County during the five year period. Payment of said amounts for additional unreimbursed eligible expenses will be subject to NFCU providing the necessary documentation showing compliance with the employment requirements and Board approval.
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| BUDGETARY IMPACT: |
| Funds are available in Fund #102 the Economic Development Fund – Cost Center: 360704, Account: 58201 Aids to Private Organizations. |
| LEGAL CONSIDERATIONS/SIGN-OFF: |
| N/A |
| PERSONNEL: |
| N/A |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
| N/A |
| IMPLEMENTATION/COORDINATION: |
| N/A |
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