BUSINESS ASSISTANCE PROGRAMS

Transcription

1 BUSINESS ASSISTANCE PROGRAMS 1

2 ECONOMIC DEVELOPMENT DEPARTMENT Office of Business Assistance cityoforlando.net/economic/business The Office of Business Assistance recognizes the importance of nurturing relationships with the business community. This is accomplished by offering assistance with the development process, helping business owners tap into available resources and providing avenues for businesses to achieve success. The Office of Business Assistance, in coordination with the City s economic development organizations, also coordinates the City s business recruitment and retention efforts. City Planning Division cityoforlando.net/planning The City Planning Division inspires and facilitates the development of a diverse and sustainable community to make Orlando more livable for its citizens, businesses and visitors. Code Enforcement Division cityoforlando.net/economic/codeenforcement The Code Enforcement Division protects the public health, safety and welfare and improves the aesthetic character of the City of Orlando through the enforcement of City codes. Community Redevelopment Agency downtownorlando.com The Community Redevelopment Agency (CRA) aggressively pursues redevelopment and revitalization activities within the Redevelopment Area, with emphasis on providing more housing and cultural arts opportunities, improving long-term transportation needs and encouraging retail development in Downtown Orlando. Downtown Development Board downtownorlando.com The Downtown Development Board (DDB) strengthens the role of Downtown Orlando as the economic, governmental and cultural center of Central Florida. The DDB is responsible for the planning, implementation and administration of Downtown Orlando s core area redevelopment and development program. Permitting Services Division cityoforlando.net/economic/permits The Permitting Services Division protects the health, safety and welfare of the citizens, while preserving and enhancing the aesthetic character of Orlando through the issuance of building permits, business licenses and the inspection of construction. 2

3 Table of Contents Mayor s Business Assistance Team 5 Transportation Fund 6 Urban Job Tax Credit Program 8 Qualified Target Industry Tax Refund Program 10 Enterprise Zone Program 12 Orlando Economic Enhancement District 13 Not-For-Profit Impact Fee Assistance Program 14 Small Business Façade Program 16 Maps 18 Contact Information

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5 MAYOR S BUSINESS ASSISTANCE TEAM Overview The Mayor s Business Assistance Team (BAT Team) typifies the City s pro-business attitude and was created to ensure that businesses within our community have every opportunity to succeed. The cross-departmental Team consists of City staff with expertise from disciplines such as Transportation, Code Enforcement, Solid Waste and Public Works and fulfills a vital need by assisting the Office of Business Assistance in resolving issues for business clients. Clients of the Mayor s Business Assistance Team are assigned a City Hall liaison to coordinate with the appropriate City Hall departments to ensure that every effort is made to resolve any and all issues. The Team is about more than accessibility; it s also about accountability. For more information, please contact the Mayor s Business Assistance Team at or visit 5

6 TRANSPORTATION FUND Overview The Economic Development Transportation Fund, otherwise known as the Road Fund, offers up to $3 million in grants, through the State of Florida, to alleviate transportation challenges that impact the location or expansion of headquarter operations or manufacturing/recycling facilities. The correction of the challenge must serve as an inducement for the company s location, retention or expansion in Florida and create or retain job opportunities. Criteria Projects that facilitate economic development by overcoming location-specific transportation challenges are eligible (e.g. access roads, signalization, road widening, etc. on behalf of a qualified company). Companies that create or retain less than 100 full-time jobs may be eligible for up to $200,000 Companies that create or retain more than 100 full-time jobs may be eligible for $200,000 - $1,000,000 Companies that create or retain more than 200 full-time jobs may be eligible for $1,000,000 - $3,000,000 Application The unit of government that owns and is responsible for the maintenance of the transportation improvement applies to Enterprise Florida and obtains approval of the transportation project prior to the company s final location decision. For an application to be considered, a company must estimate and disclose: The capital investment it intends to make in the facility, The number of permanent full-time jobs to be created and/or retained at the facility, and The average hourly wage, excluding benefits, for the new and/or retained permanent full-time jobs. Approval Enterprise Florida determines if an applicant meets the program requirements. Eligible projects are presented to the State of Florida Office of Tourism, Trade and Economic Development (OTTED) for funding consideration. Funding recommendations are based on: The amount of funds requested, The number of permanent full-time jobs created and/or retained, The economic and demographic conditions of the community in which the location is being considered, and The degree of inducement for the project s location/expansion/retention decision. After funds for the transportation project are approved, the company may proceed with its final site selection decision. The City of Orlando serves as the liaison between the applicant and the State of Florida. 6 Information: Joseph Bell, Enterprise Florida or jbell@eflorida.com.

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8 URBAN JOB TAX CREDIT PROGRAM Overview In 1997, the Florida Legislature created the Urban Job Tax Credit Program (UJTCP) to encourage the creation of jobs in urban areas of the State. The UJTCP provides tax credits to eligible businesses that are located within one of the 13 Urban Areas designated by the State of Florida Office of Tourism, Trade and Economic Development (OTTED), one of which is located in the City of Orlando. This credit ranges from $1500 to $2000 per qualified job and can be taken against the Florida Corporate Income Tax or the Florida Sales and Use Tax. A total of $5 million of tax credits may be approved under the UJTCP each calendar year. Criteria Refer to map on page 18 May include sole proprietorships, partnerships or corporations. Must be relocating to, or physically located within, the City of Orlando s designated UJTCP area. Must have created or relocated 10 new jobs to the designated UJTCP area; existing businesses must create five additional jobs in the designated UJTCP area. Must be predominately engaged in, or headquarters for activities classified in one of the following Standard Industrial Classification (SIC) Codes: Agriculture, Forestry, Fishing Manufacturing Retail 59 Miscellaneous Retail 70 Hotel or Lodging 422 Public Warehousing or Storage 7391 Research and Development 7812 Motion Picture and Video Tape Production 7819 Services Allied to Motion Picture Production 7992 Public Golf Course 7996 Amusement Park 000 Call Center 8

9 Process Once the application is approved by the State of Florida, the business will claim the credit through the State of Florida Department of Revenue. Credits may be used against either the Florida Corporate Income Tax or the Sales and Use Tax. The business claims the credit via a line item on its corporate income tax form. If taken against the Sales and Use Tax, the Department of Revenue sends a credit memorandum indicating the amount of the tax credit approved. This memorandum is submitted when the business files its monthly Sales and Use Tax return. For more information or to obtain an application, please contact: Burt C. Von Hoff Executive Office of the Governor Office of Tourism, Trade and Economic Development The Capitol; Suite 2001 Tallahassee, Florida Phone: burt.vonhoff@eog.myflorida.com 9

10 QUALIFIED TARGET INDUSTRY TAX REFUND PROGRAM Overview The Qualified Target Industry Tax Refund Program (QTI) is an incentive available through the State of Florida Office of Tourism, Trade and Economic Development (OTTED) to encourage quality job growth in targeted growth industries. This program supports the City s efforts to diversify the Orlando economy. Under QTI, pre-approved applicants who create qualifying jobs in Florida receive tax refunds of $3,000 per new job created; $6,000 in an Enterprise Zone. For businesses paying 150% of the average annual wage, add $1,000 per qualifying job; for businesses paying 200% of the average annual wage, add $2,000 per job. Businesses will also receive a $2500 bonus for locating in a Browfield area. An approved applicant receives refunds on taxes paid, including corporate income, sales and use, ad valorem, intangible personal property, insurance premium and certain other taxes. There is a cap of $5 million per single qualified applicant in all years, and no more than 25% of the total refund approved may be taken in any single fiscal year. Criteria A company must apply to the City of Orlando and Enterprise Florida prior to making a decision to locate or expand in Florida. A qualified applicant must: Be a targeted growth industry, as defined by the State of Florida Demonstrate that the tax refund is necessary for the business to locate or expand in the community Create at least 10 new jobs in the City of Orlando. If an expansion project, the business must increase employment by at least 10% (whichever is greater). For businesses located within the Orlando Enterprise Zone, the increase in employment may be waived. Pay an average annual wage that is at least 115% of the State, metropolitan statistical area (MSA) or the local average wage. For businesses located in an Enterprise Zone, the wage requirements may be waived. Demonstrate that the jobs make a significant economic contribution to the local economy Demonstrate that there is out of state competition for the project application Complete a QTI application for the City Orlando and Enterprise Florida If the company is approved, a resolution is taken before the Orlando City Council recommending the applicant for the QTI program. Enterprise Florida evaluates the application and makes a recommendation to OTTED who makes the final decision on the project. OTTED issues its approval or disapproval of the application in the form of a Final Order 10

11 Upon approval, the Final Order indicates the amount and schedule of tax refunds approved, as well as the number of jobs and average wage rate for the project jobs. Once the QTI application is approved, the business works with the City of Orlando and OTTED to finalize a tax refund incentive agreement. The City of Orlando and Enterprise Florida will shepherd businesses through the entire process, ensuring that the company understands what is required to complete an effective application. Refund Process The business submits a claim each year for the scheduled tax refund. Once the terms of the tax refund agreement are met, the City of Orlando pays the 20% local match into the State of Florida Economic Development Trust Fund and OTTED pays the cash refund to the business. Information: Office of Business Assistance at or or Enterprise Florida website 11

12 ENTERPRISE ZONE PROGRAM Overview The Enterprise Zone program was established in 1982 by the State of Florida to encourage the retention and expansion of businesses within designated areas. The Enterprise Zone is a geographic area designated by the City of Orlando and Orange County, and certified by the State of Florida, that is eligible for tax incentives and other benefits. The goals of the Enterprise Zone are to stimulate the creation of new jobs and to enhance the social and economic well-being of affected neighborhoods. Incentives Jobs Tax Creation Incentives: Up to $2,000 per job annually. Property Tax Exemption: Up to $50,000 earned credit on Florida income tax. Machinery and Equipment Sales Tax Refund: Up to $10,000 per parcel. Building Materials Sales Tax Refund: Up to $10,000 per parcel. Child Care Facility Property Tax Exemption: Ad valorem property tax exemption for licensed child care facilities that own their buildings. Community Contribution Tax Credit: Credit on contributions of cash, real property or other donations up to $200,000 per year, made to non-profit organizations located within the Enterprise Zone. Criteria Refer to map on page 18 Eligible businesses must be located within the City of Orlando/Orange County Enterprise Zone boundaries If more than 20% of a business employees reside in the Enterprise Zone, the company may earn higher tax credits and exemptions. Information: Office of Business Assistance at or Enterprise Florida website 12

13 ORLANDO ECONOMIC ENHANCEMENT DISTRICT Overview The Orlando Economic Enhancement District Program (OEED) is a State of Florida economic development tool encouraging redevelopment of properties by businesses and property owners. OEED is a Brownfield designation and includes sites that have the perception of contamination and/or blight. Incentives Job creation bonus refund of up to $2500 per job for QTI applicants. Tax credit of 35% on voluntary cleanup costs; 10% additional credit during the final year of cleanup. Low interest loans for the purchase of liens, tax certificates or other claims. Risk-Based Corrective Action (RBCA) principles; Sales tax credit on building materials used for the construction of a residential or mixed use redevelopment project; Up to 5 years of state loan guarantees of loan loss reserves; and Grants/loans available for cleanup. Criteria Applicant must be located within the Orlando Economic Enhancement District boundary area. Applicant must not be responsible for the contamination or blight. Applicant must be expanding or redeveloping property. Refer to map on page 18 Information: Office of Business Assistance at or State of Florida Brownfield Program website: 13

14 NOT-FOR-PROFIT IMPACT FEE ASSISTANCE PROGRAM Overview The Not-For-Profit Impact Fee Assistance Program provides impact fee assistance to non-profit agencies, located within the City of Orlando, that undertake construction projects. Eligible costs include transportation and sewer impact fees that have been assessed by the City for the project. Criteria Provide proof of 501 (C)(3) status as authorized by the United States Internal Revenue Service. Have been in operation for three or more years. Be a human and/or social services agency. Demonstrate financial hardship or lack of adequate outside funding for capital projects. Have City residents as at least 25% of clientele. Maximum fee assistance is 50% of the fees assessed against the project up to $50,000. Funding is available on a first come, first serve basis. The following non-profit organizations are not eligible for impact fee assistance: hospitals, churches and religious institutions, day care centers, museums, civic clubs and United Arts funded agencies. Process Submit application to the Office of Business Assistance. Application is presented to Orlando City Council for final approval. Upon approval by Orlando City Council, funds are distributed. Information: Office of Business Assistance at or 14

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16 SMALL BUSINESS FACADE PROGRAM Overview The Small Business Façade Program (SBFP) is an economic development program designed to provide an interest-free, deferred loan for façade improvements to new and existing commercial property and business owners, located in the City of Orlando. This loan will provide assistance with costs related to physical improvements to buildings in need of enhancement. The SBFP offers matching loan funds to off-set design and façade improvement expenses such as painting, wall repair or cleaning; window repair or replacement; awnings; new or replacement signage; landscaping; lighting; streetscape and door repair or replacement. Assistance must be applied for prior to the commencement of any façade improvement work sought to be covered under this Program. Criteria Commercial property owners, for-profit new businesses moving to an existing site or existing small businesses in the City of Orlando are eligible. All business owner applicants must be a small business as defined by the U. S. Small Business Administration. All proposed façade improvements must meet the Code of the City of Orlando. All business owner applicants must possess a City of Orlando Business Tax Receipt. All applicants must be current with state and local taxes and not have any outstanding liens imposed against any property in the City of Orlando. Applicant(s) must provide at least 20% of the project cost. Maximum award amount is $20,000 per applicant. The City will pay 100% of the first $1,000 of the total project cost and loan 80% of the remaining balance. For loan amounts of $1,000 to $9,999, payment to the City is deferred for a three (3) year period where the loan depreciates at 33% for the first two years and 34% the third year. At the end of three years, the loan is forgiven in its entirety. For loan amounts of $10,000 to $14,999, payment to the City is deferred for a four (4) year period where the loan depreciates at 25% each year. At the end of four years, the loan is forgiven in its entirety. For loan amounts of $15,000 to $20,000, payment to the City is deferred for a five (5) year period where the loan depreciates at 20% each year. At the end of five years, the loan is forgiven in its entirety. If the total project cost is $999 or less, and the property is either demolished, title to the property has been transferred, the property has been refinanced, or the property incurs a code enforcement lien during the oneyear period following disbursement of funds by the City, the full amount disbursed must be paid back to the City of Orlando Economic Development Department. Past Business Assitance Program (BAP) recipents may also apply for SBFP assistance. However, total assistance from both programs may not exceed $20,000. Information: Office of Business Assistance at or 16

17 The following businesses are not eligible for the Small Business Facade Program: National franchises; non-profit agencies; residential property; government owned/ occupied buildings; churches/religious institutions; health and social service industries; agricultural service industries; nightclubs, bars or taverns; tattoo parlors; body piercing or body art shops; adult entertainment facilities; adult oriented or adult themed retail businesses; liquor stores; gun shops; businesses that sell drug paraphernalia; any business with outstanding code enforcement violations (including red light infractions) or liens; any business or commercial property that is not current with state and local taxes, and/or has any outstanding tax lien(s) against any property; and any business or commercial property with outstanding debt to the City. Process Submit application to the Office of Business Assistance. Applications exceeding $5,000 are presented to City Council for final approval. Funds will be distributed for reimbursement after completion of proposed work. 17

18 BRUTON BV EDGEWAT Orlando Economic Enhancement District HASTINGS ST PINE HILLS RD EAST WEST EX OLD WINTER GARDEN RD S KIRKMAN RD 435 RALEIGH ST LEGEND City of Orlando Jurisdiction MERCY DR Orlando Economic Enhancement District (OEED) ELAND RD SILVER STAR RD W PRINCETON ST W D JUDGE DR W COLONIAL DR COLUMBIA ST RSTATE- 4 S R 423 TAMPA AV N ORANGE BLOSSOM TL SR 408 RIO GRANDE AV L B MCLEOD RD N WESTMORELAND DR EAST WEST EX W PRINCETON ST INTERSTATE- 4 W GORE ST S ORANGE AV S R 50 ROBINSON ST CENTRAL BV SOUTH ST S SUMMERLIN AV N MILLS AV E KALEY AV MICHIGAN ST City of Orlando, Economic Development Department, May 2007 Urban Tax Job Credit map from Page 8 18 Enterprise Zone Program map from Page 12 Orlando Economic Enhancement District map from Page 13

19 City of Orlando Economic Development Department Officials Department Director Frank Billingsley Deputy Director Brooke R. Bonnett City Planning Division Manager Dean J. Grandin, Jr. AICP Code Enforcement Division Manager Mike Rhodes Permitting Services Division Manager Timothy Johnson, AIA, NOMA DDB/CRA Executive Director Thomas Chatmon Office of Business Assistance Contacts Business Growth & Development Coordinator Kim King Main Street Coordinator Pauline Eaton Client Relations Coordinator Lillian Scott Downtown Business Coordinator Rose Garlick Business Outreach Coordinator Kathy DeVault

20 Economic Development Department Office of Business Assistance 400 S. Orange Avenue, 6th Floor Orlando, Florida Phone: Fax: Winter 2010