AGENDA. MEMBERS: Lori Boyer, Council President. I. CALL TO ORDER Chair Introductions ORGANIZATIONAL ITEMS
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1 Jacksonville International Airport Community Redevelopment Area Board Meeting City Council Chambers 117 West Duval Street, Jacksonville, FL Tuesday, September 13, :30 p.m. AGENDA MEMBERS: Lori Boyer, Council President John Crescimbeni, Council Vice President Councilmember Joyce Morgan Councilmember Al Ferraro Councilmember Aaron Bowman Councilmember Scott Wilson Councilmember Matt Schellenberg Councilmember Reggie Gaffney Councilmember Katrina Brown Councilmember Garrett Dennis Councilmember Reginald Brown Councilmember Danny Becton Councilmember Doyle Carter Councilmember Bill Gulliford Councilmember Jim Love Councilmember Anna Lopez Brosche Councilmember Tommy Hazouri Councilmember Greg Anderson Councilmember Sam Newby I. CALL TO ORDER Chair Introductions II. ORGANIZATIONAL ITEMS III. IV. ACTION ITEMS Chair Safariland Presentation Public Comment INFORMATION FROM ADVISORY BOARD Chair V. NEW BUSINESS Chair VI. RECAP/DIRECTIONS TO STAFF Chair VI. NEXT MEETING: TBD
2 OFFICE OF ECONOMIC DEVELOPMENT CITY OF JACKSONVILLE, FL Safariland Group Expansion SUMMARY August 30, 2016 Background: The Safariland Group (Safariland), which currently has approximately 350 employees in Jacksonville, is a premier manufacturer of protective equipment for law enforcement, military and public safety end-users. Safariland, which has over 50 years of experience in the protective equipment marketplace, distributes its products both domestically and internationally. Since the divestiture from BAE Systems in July 2012, Safariland has implemented a strategy of expanding its portfolio of brands and pursuing acquisitions. Safariland and its affiliates currently operate numerous production facilities and R&D locations throughout North America. As part of the company s consolidation process, they will soon be closing an existing facility in another state and transferring those operations to Jacksonville or another municipality, where it has a presence. The new operation would include the need to hire an additional 152 employees (52 jobs at an average wage of $45,420 and 100 jobs at an average wage of $33,000), and an estimated investment of $2.5 million in manufacturing equipment and furniture, by the end of Safariland is a high-impact target industry business (Manufacturing), and has stated that the combination of the State of Florida and City of Jacksonville incentives is a material factor in its consideration to expand its operation in Jacksonville, Florida. # of Jobs To Be Created Capital Investment Intangibles 152 new jobs (52 jobs at average wage of $45,420 and 100 jobs at an average wage of $33,000) no later than Dec. 31, etc. Project location: Council District: 7 Estimated investment of $2.5 million in building upfit, manufacturing equipment, IT infrastructure and equipment, furniture, Adds to Jacksonville s manufacturing job base. Preserves 350 existing jobs. Will increase import and export activity at Jaxport. JIA CRA Objectives: The proposed project furthers the following Community Redevelopment Plan Objectives, included in the JIA CRA Plan: - 3.; c. Increase the opportunities for both temporary and full-time employment of Jacksonville residents; - 3.; f. Strengthen the tax base of Jacksonville through new development in the Community Redevelopment Area; and 117 West Duval St., Ste. 275 Jacksonville, FL (904)
3 - 3.; g. Increase Jacksonville s penetration of the economic activity generated by the growth of the JIA area of Jacksonville by developing additional commercial, residential, transportation and open space uses in the redevelopment area. The JIA CRA Advisory Board unanimously approved the proposed project at their meeting held on June 16, Project Rationale & Benefits: Supporting Safariland s expansion will grow Jacksonville s higher wage job opportunities and tax base. It will also further secure the company and their existing 350 jobs, locally. The 152 new jobs to be created are primarily for the manufacturing of apparel and equipment for law enforcement, military and public safety personnel, which will be utilized by entities in those respective fields, throughout the world. Additional annual payroll to the Jacksonville area will be over $5.6 million (excluding benefits). Project Incentives: City QTI 20% Match $52,000 City Local Training Grant $200,000 City TID Infrastructure Grant $180,000 City Total: $432,000 State QTI 80% Match $208,000 Florida Flex Training Grant $36,400 State Veterans Training Grant $200,000 State Total: $444,000 Overall Incentives: $876,400 The project ROI ratio for the City of Jacksonville is Description of City of Jacksonville Incentives: The company is seeking public investment through the Qualified Targeted Industry (QTI) Tax Refund program. The QTI incentive proposed is $5,000 per job. Based on Safariland s application, 52 of the new jobs would qualify for this program. The City portion of the QTI program is 20 percent of the award, or $1,000 per job up to $52,000, in total. The QTI award will be payable after the average wage and jobs created are verified by the Florida Department of Economic Opportunity over the proposed five year payout, beginning in A City Training Grant of $2,000 per employee, for 100 employees, up to $200,000, will be provided. The company will need to provide documentation related to employee training activities. The company is also eligible for a Tax Increment District (TID) Infrastructure Development Grant of $180,000, to assist with the build out of the infrastructure at the company s manufacturing facility, to support the expansion. Description of State of Florida Incentives: The State portion of the QTI program is 80 percent of the award, or $4,000 per qualified job created up to $208,000, in total. The QTI award will be payable after the average wage and jobs created are verified by the Florida Department of Economic Opportunity over the proposed five year payout, beginning in A Florida Flex Training (FFT) grant up to $700 per new qualified job created, with a cap of $36,400, and a Veterans Florida Business Training Grant up to $200,000, are also being awarded. Please contact Ed Randolph at , if you have any questions on this project. 117 West Duval St., Ste. 275 Jacksonville, FL (904)
4 RESOLUTION A RESOLUTION OF THE JACKSONVILLE INTERNATIONAL AIRPORT COMMUNITY REDEVELOPMENT AGENCY AUTHORIZING: (1) THE LOCAL PORTION OF A STATE OF FLORIDA QUALIFIED TARGET INDUSTRY TAX REFUND IN THE MAXIMUM AMOUNT OF $52,000; (2) A CITY TRAINING GRANT IN THE AMOUNT OF $200,000; (3) AND A TAX INCREMENT DISTRICT INFRASTRUCTURE DEVELOPMENT GRANT IN THE AMOUNT OF $180,000 TO SUPPORT THE EXPANSION OF SAFARILAND, LLC S ( COMPANY S ) FACILITY LOCATED WITHIN THE JACKSONVILLE INTERNATIONAL AIRPORT COMMUNITY REDEVELOPMENT AREA, WHICH INCLUDES THE HIRING OF 152 NEW EMPLOYEES; AUTHORIZING THE ADMINISTRATION AND DISBURSEMENT OF SUCH FUNDS PURSUANT TO AN ECONOMIC DEVELOPMENT AGREEMENT ( EDA ) BETWEEN THE CITY OF JACKSONVILLE AND COMPANY; MAKING CERTAIN FINDINGS. WHEREAS, Company proposes to expand its existing operations at its location in the Jacksonville International Airport Community Redevelopment Area ( JIA CRA ) in Jacksonville, Florida, which will include private capital investment of approximately $2,500,000; and WHEREAS, the expansion will result in the retention of 350 existing jobs in the City, and the Company has committed to the creation of an additional 152 new jobs within the time frames as set forth in the EDA; and WHEREAS, the Office of Economic Development has determined the Project is consistent the economic development goals of the City and the City s Public investment Policy and will, among other things: support sustainable job growth by retaining 350 current permanent jobs; create 152 new jobs; help an existing targeted industry business to expand; generate significant new ad valorem taxes, including significant new tax revenues for the public school system; and create induced and indirect job effects which will have a positive impact on local small businesses; and WHEREAS, the the Jacksonville International Airport Community Redevelopment Agency ( JIA CRA ) is authorized per Section 500, Ordinance Code, and Section 163, Part 3, Florida Statutes, to utilize the Tax Increment Finance District Trust Funds to foster the redevelopment of the Jacksonville International Airport Community Redevelopment Area; and WHEREAS, the City is proposing: (i) local financial support of the State of Florida Qualified Target Industry Tax Refund program in a maximum amount of $52,000; (ii) a new employee training grant in the amount of $200,000; and (iii) a tax increment district infrastructure development grant in the amount of $180,000 (collectively, the Grants ), to support the expansion of the Company s facility and the hiring of 152 new employees; and Page 1 of 2
5 WHEREAS, the Grants are in compliance with and further the purposes and objectives of the JIA CRA Community Redevelopment Plan, as amended, as set forth in Paragraph A, Purpose of the Plan, sub-paragraph 3, Community Redevelopment Plan Objectives: (i) objective (c) - the Grants increase the opportunities for both temporary and full time employment of Jacksonville residents; (ii) objective (f) the Grants strengthen the tax base of Jacksonville through new development in the Community Redevelopment Area; and (iii) objective (g) the Grants increase Jacksonville s penetration of the economic activity generated by the growth of the JIA area of Jacksonville by developing additional comnmercial uses in the redevelopment area. WHEREAS, the Grants will be funded through the Jacksonville International Airport Community Redevelopment Area Trust Fund; and WHEREAS, the proposed Grants are a material factor in assisting the Company to expand its operations in Jacksonville. BE IT RESOLVED, by the Jacksonville International Airport Community Redevelopment Agency: Section 1. The JIA CRA finds that the recitals set forth above are true and correct and are incorporated herein by this reference. Section 2. The JIA CRA authorizes disbursements of the Grants pursuant to an EDA to be entered into between the City and the Company. Section 3. This Resolution shall become effective upon its approval by the JIA CRA this 2d day of September, WITNESS: JACKSONVILLE INTERNATIONAL AIRPORT COMMUNITY REDEVELOPMENT AGENCY Lori N. Boyer, Acting Chairman Date signed: VOTE: In Favor: Opposed: Abstained: FORM APPROVAL: Office of General Counsel Page 2 of 2
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