1 City of Orlando Economic Development Tools for Job Growth and Economic Prosperity
2 Orlando s Current Economic Climate Well positioned to recover from the recession. The fastest-growing metro area in Florida for employment growth through Expected to lead the state in personal income growth through 2013 with an average of 4.9% annually. Fastest-growing City in the state between One of the best and least expensive places in the nation to launch a new business..
3 State & Federal Economic Development Programs & Services HUB Zones Qualified Target Industry Tax Refund Program Enterprise Zone Urban Job Tax Credit Program Incumbent Worker Training (IWT) Quick Response Training Brownfield Redevelopment and Bonus Refund Capital Investment Tax Credit
4 Companies the City has Partnered with the State to Incentivize BBA/Signature Flight Support QTI, CRA High-Value, High-Wage Job Creation Program Aviation 100 new jobs, 200% above the MSA average annual wage Row Sham Bow QTI & Brownfield Redevelopment Bonus Digital Media 60 new jobs, 200% above the MSA average annual wage Amcor Rigid Plastics QTI & Trans. Road Fund Manufacturing 29 new jobs, $19.5 million capital investment Triad Isotopes QTI, Brownfield Redevelopment Bonus & Enterprise Zone Life Science/Biotech 30 new jobs, more than 200% above the MSA average annual wage Future Opportunities: Medical City, Creative Village
5 City of Orlando Economic Development Programs & Services Transportation Impact Fee Waiver & Reduction Business Assistance Program Small Business Façade Program Not-for-Profit Impact Fee Assistance Program Orlando Main Street Program Buy Local Orlando Program Mayor s Business Assistance Team Special Districts: Downtown Orlando CRA Downtown South NID
6 Transportation Impact Fee Reduction To further retain Orlando s competitive edge in drawing new development and new businesses to the City, Mayor Dyer and the Orlando City Council adopted a 25% reduction to the current impact fee rates. This reduction positions our impact fee rates at or below our neighboring communities. This reduction allows a new business to invest the extra savings into their own business. The impact fee reduction sunsets on July 11, 2012.
7 Transportation Impact Fee Waiver Waiving transportation impact fees for small businesses locating or expanding in an existing space. This waiver has reduced financial barriers for 32 businesses which have expanded or located within the City, saving an average of $12,700 per business. This exemption has allowed these businesses to direct more of their money toward growing their business which, in turn, has created over 570 jobs for residents and more than $5 capital investment in the City. Waiver program sunsets on April 25, 2012.
8 Business Assistance Program Off-sets 50% of permit fees, impact fees & right-of-way infrastructure improvements for new and expanding businesses within City limits. Qualified Uses: Manufacturing, Construction, Technology, Communication, Business Service, Transportation, Retail, Restaurants and Personal Services. Maximum award amount is $20, businesses assisted since program s creation in 2001 Less than $500,000 in assistance provided resulting in nearly $25.5 million capital investment
9 Small Business Façade Program Provides new and existing commercial property and business owners, in the City of Orlando, assistance with costs related to physical improvements in the City s commercial corridors. BEFORE Off-sets design and construction expenses such as painting, wall repair or cleaning; window repair or replacement; awnings; new or replacement signage; lighting; streetscape and door repair or replacement. Assistance must be applied for prior to the commencement of any façade improvement work. Maximum award is $20,000 per applicant. Since the program s creation in 2006, 39 businesses have received nearly $400,000 resulting in nearly $2.5 million in capital investment in the City of Orlando. AFTER
10 Not-for-Profit Impact Fee Assistance Program Encourages not-for-profit agencies to locate or expand within the City of Orlando. Assists in off-setting transportation impact and sewer benefit fees. Applicant is required to pay 50% of fees. Maximum award is $50,000. Organization must be a human and/or social service agency. City residents must account for at least 25% of agency clientele. Since the program s inception in 2006, four not-for-profits have received $42,000 in assistance resulting in a nearly $4 million capital investment in the City of Orlando.
11 Orlando Main Street Program Provides neighborhood business district organizations a range of technical assistance, training, resources and financial incentives in a coordinated, comprehensive manner. The Main Street Approach incorporates activities in four distinctive areas: Organization, Promotion, Design and Economic Restructuring. Empowers neighborhood business districts within the City to maintain, strengthen and revitalize their unique physical, economic, historical and cultural characteristics. Seven Orlando Main Street areas have been designated. The City provides seed money to each district and each district provides private matching funds, forms a Board of Directors and bylaws and has a full-time district manager.
12 Orlando Main Street Program Economic Impact Statistics Fiscal Year (October 2010 September 2011) Total $ reinvested in improvements October 2008-June 2011 $50,913,655 Hospital improvements (Orlando Health & Florida Hospital) $43,358,540 Net New Businesses 101 Net New Full-Time Jobs 350 Net New Part-Time Jobs 190 Volunteer Hours Donated 7,034 $ Value of Volunteer Hours Donated $146,658
13 Buy Local Orlando Program Created in 2009 to encourage residents and visitors to patronize Orlando s businesses to improve quality of life in our neighborhoods and the economic vitality of the greater Orlando region. Total number of registered businesses: More than 500. Number of consumer cards distributed: More than 120,000. Smart Phone app launched in December in itunes nearly 2,000 downloads to date. Android to follow later this month.
14 Mayor s Business Assistance Team The BAT Team consists of City staff with expertise from various City departments and is available to assist with any questions about launching and/or operating a business. One-stop shop for any questions about launching/operating a business in the City of Orlando. Customer Care Center on the first floor of City Hall provides easy access for business owners with any questions Cityoforlando.net/BAT
15 City of Orlando Return on Investment Since 2006, through the QTI, Small Business Façade, Business Assistance and Not-for-Profit programs, the City has assisted 90 businesses/organizations by providing just more than $816,000 in general fund dollars. Those 90 businesses represent a nearly $88 million in capital investment in the City of Orlando. For each general fund dollar invested, the programs have leveraged $99 in new investment in the City of Orlando.
16 City of Orlando Special Districts Downtown Orlando Community Redevelopment Agency (CRA) Downtown South Neighborhood Improvement District (NID)
17 The Role of The DDB/CRA The mission of the Orlando Downtown Development Board (DDB) is to strengthen 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 the City's core area redevelopment and development program. The mission of the Community Redevelopment Agency (CRA) is to aggressively pursue 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.
18 What is a Community Redevelopment Agency (CRA)? CRAs were established under Chapter 163, Part III Florida Statutes. The Downtown Orlando CRA was established in The Downtown Orlando CRA is one of 178 CRA areas in the state of Florida including 14 in Orange County. Effective tool to redevelop and transform targeted areas. Results in economic growth and development. Activities and programs administered by the CRA Board. CRA funds may only be spent within district boundaries, on redevelopment activities included in The Redevelopment Plan (Downtown Outlook).
19 Downtown Orlando CRA Protects the tax base Increases the overall tax base Rehabilitates and redevelops slum and blighted areas Addresses affordable housing shortage Stimulates economic development Catalyst for public/private investment
20 Truths About CRAs Effective targeted funding source for the redevelopment of projects & programs Projects stimulate tax base CRA project dollars leverage private/public investment Problem solvers/cheerleaders/matchmakers Myths About CRAs Additional tax Can be used for general fund purposes Pursuant to (1), increment revenues are to be used only by the CRA to finance or refinance any community redevelopment it undertakes pursuant to the approved Plan. Downtown Outlook does not obligate CRA funding Negative impact on taxpayers outside of the CRA Can fund basic City services
21 Tax Increment Financing (TIF)
22 Incentive Summary CRA Development Incentives Return on Investment (ROI) Private Developments That Received Incentives Since 2003 Projects CRA 20 Year Investment $* 20 Year Additional Tax Revenue* 20 Year Additional Tax Revenue * (Net Incentives) CRA Return On Investment * Totals 5 $14,675,000 $30,675,000 $16,000, % 45 blocks of landscaped special designed streets and sidewalks Constructed and maintain LYMMO Translates to a stronger economy, improved image and higher quality of life $115 Million spent in CRA District over 20 years resulted in an increase of taxable value from $137 Million to $1.8 Billion * Projection based on a 3% annual increase in taxable value and consistent millage rate
23 Downtown South Neighborhood Improvement District (NID) For the past several years, the City of Orlando has been carefully planning for continued growth in the area south of Downtown. It is an area of our City highly visible from I-4, within close proximity to Downtown, and is anchored by one of our City s largest employers, Orlando Health. The area is poised for even more growth and development as a SunRail commuter rail stop is planned at the Amtrak Station. In June 2010, City Council appointed an Exploratory Committee to explore the possibility of establishing a NID in Downtown South.
24 Neighborhood Improvement Districts Part IV, Ch. 163, Fla. Stat. Development infrastructure Streets, sidewalks Street lights, landscaping Stormwater systems Parking structures Intersection improvements Transit shelters, BRT Utilities
25 NID Enabling Ordinance Approved by City Council in March Established City Council as Governing Board. Requires an Advisory Council. Allows new NIDs only after approval has been recommended by a NID Exploratory Committee. Includes thresholds to establish a NID. Allows two types of assessment: a special assessment of up to $500 per parcel. an ad valorem tax not to exceed 2 mills. No tax assessments initially; Requires referendum for special assessment and/or ad valorem assessment. Referendum cannot occur until 18 months after the adoption of the NID Implementation Ordinance.
26 Downtown South NID Approximately 717 acres. Consistent with Exploratory Committee recommendation. Referendum for special assessment and/or ad valorem assessment cannot occur until 18 months after the adoption of the NID Implementation Ordinance (July 2011).
27 Streamlining the NID Statute SB 582 (Simmons) & HB 191 (Soto) Removes confusing, duplicative, and unnecessary language Updates statutory references Removes expired grant programs Provides clear rules for conducting referendums as required to levy millage or assessment Budgeting pursuant to Ch. 200 Repeals significant and expensive planning mandates
28 Questions Brooke Bonnett Director of Economic Development Kyle Shephard Assistant City Attorney
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