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County Administrator's Report 11. 23.
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| BCC Regular Meeting |
Budget & Finance Consent |
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| RECOMMENDATION: |
Recommendation Concerning State and Federal Tax Credit Incentives Broker/Consulting - Clara Long, Neighborhood and Human Services Director, through Paul Nobles, Purchasing Manager, Office of Purchasing
That the Board take the following action:
A. Approve the sale of the following State and Federal Tax Credits;
| Certificate # |
Project Site # |
Tax Credit Amount |
| 648 |
171102001 |
$50,975.00 |
| 692 |
170502001 |
$36,613.55 |
| 821 |
170502001 |
$199,966.92 |
| 926 |
170502001 |
$55,822.45 |
| Total |
$343,377.92 |
B. Approve and authorize the Chairman to execute the Agreement between Escambia County, Florida, and Clocktower Tax Credits, LLC, per the terms and conditions of PD 19-20.009, State and Federal Tax Credits Incentives Broker/Consulting, for a brokerage fee of $0.005 per dollar ($1,716.89);
C. Approve and authorize the Chairman to execute a Purchase Agreement between Escambia County, Florida, and RELX US Holdings, Inc., for the sale of State Tax Credits for the Brownfields Voluntary Tax Credit Certificates in the amount of $343,377.92; and
D. Authorize the issuance of a Purchase Order or voucher to Clocktower Tax Credits, LLC, for its brokerage fee, in the amount of $250.
Specification PD 19-20.009, State and Federal Tax Credits Incentives Broker/Consulting, was posted to Vendor Registry on January 3, 2020, and was sent to eight registrants representing seven firms. Two firms responded to the RFP.
The broker fee will be paid from Fund 129/Brownfield/Romana-VCTC, Cost Center 370213. All funds received from the sale of the tax credits will be deposited in Fund 129, CDBG Entitlement. |
| BACKGROUND: |
Environmental Site Cleanup and Remediation at the former Escambia County Mosquito Control Facility, located at 603 West Romana Street, has been an ongoing project since 2005, which has been funded through the HUD Community Development Block Grant (CDBG) program. The County is eligible to apply annually for reimbursement of 50% of expenses in the form of tax credits through the Florida Department of Environmental Protection (FDEP) Voluntary Cleanup Tax Credit (VCTC) Program. Each Tax Credit Certificate is transferrable one time via assignment or sale of the credits within five years of issuance. The County currently holds four tax credit certificates totaling $343,377.92 that are eligible for sale.
The County solicited Requests for Proposals (RFP) seeking qualified brokerage firms for Specification Number PD 19-20.009, State and Federal Tax Credits Incentives Broker/Consulting, on January 3, 2020, specifically to engage a firm to aid the County in the sale of the Brownfields VCTC tax credit certificates. The County received two responses, with Clocktower Tax Credits, LLC, meeting the criteria in the RFP to recommend for award, having the most experience, lowest brokerage fee charged to the County, and documentation of a purchaser of the tax credits. The County will net the highest purchase price for the certificates with the proposal from Clocktower. Clocktower has provided an offer from RELX US Holdings, Inc., who is interesting in purchasing all four certificates.
The proceeds of the sale must be retained for HUD CDBG eligible activities in keeping with the original purpose of the expenditures (24 C.F.R. Part 570.504). The County anticipates that it will net approximately $308,010 from the sale of the credits. |
| BUDGETARY IMPACT: |
| The broker fee will be paid from Fund 129/Brownfield/Romana-VCTC, Cost Center 370213. All funds received from the sale of the tax credits will be deposited in Fund 129, CDBG Entitlement. |
| LEGAL CONSIDERATIONS/SIGN-OFF: |
| Agreement for Services and Purchase Agreement prepared by Kristin Hual, Senior Assistant County Attorney. |
| PERSONNEL: |
| N/A |
| POLICY/REQUIREMENT FOR BOARD ACTION: |
| This Recommendation is in compliance with the Code of Ordinances of Escambia County, FL 1999, Chapter 46, Finance, Article II, Purchases and Contracts. |
| IMPLEMENTATION/COORDINATION: |
| The Office of Purchasing will issue the Agreements. |
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