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Home My WebLink AboutCity of Tamarac Resolution (114)April 15, 2002- Temp. Reso. #9762 1 CITY OF TAMARAC, FLORIDA RESOLUTION NO. R-2002-114 A RESOLUTION OF THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA, AUTHORIZING THE APPROPRIATE CITY OFFICIALS TO APPROVE ECONOMIC DEVELOPMENT INCENTIVES FOR PROPULSION TECHNOLOGY, LLC (PTC) IN THE FORM OF A CASH RELOCATION GRANT FOR $50,000.00; AUTHORIZING THE APPROPRIATE CITY OFFICIALS TO OFFER ECONOMIC DEVELOPMENT INCENTIVES IN THE FORM OF WAIVERS OF REVIEW AND PERMIT FEES NOT TO EXCEED $115,770.00, IN ADDITION TO FEE WAIVERS OF $23,230.00 GRANTED UNDER ORDINANCE NO.0-2000-14, DESIGNATION AS AN ECONOMIC DEVELOPMENT PROJECT FOR THE PURPOSE OF EXPEDITED PERMITTING FOR PROPULSION TECHNOLOGY, LLC (PTC) AND UP TO $36,000.00 JOINT PARTICIPATION BY THE CITY IN THE STATE OF FLORIDA QUALIFIED TARGET INDUSTRY PROGRAM TO RELOCATE TO WESTPOINT CENTRE AT TAMARAC COMMERCE PARK; AUTHORIZING THE APPROPRIATE CITY OFFICIALS TO EXECUTE AN AGREEMENT WITH PROPULSION TECHNOLOGY, LLC (PTC) OUTLINING THESE INCENTIVES; PROVIDING FOR CONFLICTS; PROVIDING FOR SEVERABILITY; AND PROVIDING FOR AN EFFECTIVE DATE. WHEREAS, it is proper to utilize public funds for public purposes; and WHEREAS, this expenditure is for the public purpose of improving the economic well being of the City of Tamarac; and WHEREAS, economic welfare is one of the main concerns of a modern city; and WHEREAS, the relocation of Propulsion Technology, LLC (PTC) will encourage the April 15, 2002- Temp. Reso. #9762 2 economic revitalization of the City of Tamarac by providing employment for one -hundred twenty (120) new employees over a three (3) year period and eighty-five (85) relocated employees; and WHEREAS, PTC will stimulate the City's economy by contributing to the utilization of local housing and commercial establishments; and WHEREAS, utilization of local housing and commercial establishments will result in additional property tax revenue to the City; and WHEREAS, the relocation of PTC to the City of Tamarac will stimulate additional economic development in the City which will ultimately result in increased property taxes to the City from the Tamarac Commerce Park; and WHEREAS, the City of Tamarac will realize revenue from real property improvements which would not have been made but for the relocation of PTC to the City of Tamarac; and WHEREAS, the Mayor and City Commission of the City of Tamarac have long recognized the importance of the Tamarac Commerce Park to the economic vitality of the City; and WHEREAS, the City was contacted by the CEO and Human Resources Directorfor PTC regarding the potential of relocating PTC's operation to the City of Tamarac; and WHEREAS, the Community Development staff and the City Manager met with the representatives of PTC to determine if the City could assist in the Company's desire to relocate to the City of Tamarac; and WHEREAS, after meetings and discussions, it was concluded by the staff that it would be in the City's interest to assist PTC with relocation to the City of Tamarac; and April 15, 2002- Temp. Reso. #9762 3 WHEREAS, it is the recommendation of the City Manager and the Director of Community Development that the City Commission authorize a grant of $50,000.00 to be paid upon the issuance of the Certificate of Occupancy and submission of receipts for moving expenses to PTC to assist them in defraying moving and other relocation expenses; and WHEREAS, it is further recommended that certain review and permit fees be waived in an amount not to exceed $115,770.00 in addition to the standard fee waivers (totaling $23,230.00) granted under Ordinance No. 0-2000-14 for all properties developed in the Westpoint Centre; and WHEREAS, available funds exist in the General Fund for said purpose; and WHEREAS, PTC agrees to refund the relocation expenses paid by the City to PTC if the company should relocate from the City of Tamarac according to the schedule as follows: First Year — 80%, Second Year — 60%, Third Year — 40%, Fourth Year — 20%, and Fifth Year — 0%; and WHEREAS, PTC agrees to reimburse the City of Tamarac for the fee waivers should the building be sold to another entity according to the schedule as follows: First Year — 80%, Second Year — 60%, Third Year — 40%, Fourth Year — 20%, and Fifth Year — 0%; and WHEREAS, the recommendation is based upon several facts/assumptions including: (1) that the annual payroll will be $3.9 Million, thereby benefiting and stimulating businesses and service providers in the City; and (2) that this project will stimulate additional economic development in the Tamarac Commerce Park, as well as enhance the image of the City; and April 15, 2002- Temp. Reso. #9762 4 WHEREAS, the City Commission of the City of Tamarac, Florida deems it to be in the best interests of the citizens and residents of the City of Tamarac to approve Economic Development Incentives for Propulsion Technology, LLC (PTC) in the form of a cash relocation grant for $50,000.00; providing for refund of relocation expenses by Propulsion Technology, LLC (PTC) for relocating outside the City of Tamarac within a five (5) year period; authorize the appropriate City Officials to offer Economic Development Incentives in the form of waivers of review and permit fees not to exceed $115,770.00, in addition to fee waivers of $23,230.00 granted under Ordinance No. 0-2000-14, authorizing City participation in the State of Florida QTI program over a minimum eight (8) year period up to an amount not to exceed $36,000.00 for jobs created in the first three (3) years and designation as an Economic Development Project for the purpose of expedited permitting for Propulsion Technology, LLC (PTC) to relocate to Westpointe Centre at the Tamarac Commerce Park; authorize the appropriate City Officials to execute an Agreement with Propulsion Technology, LLC (PTC) outlining these incentives. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COMMISSION OF THE CITY OF TAMARAC, FLORIDA: SECTION 1: The foregoing "WHEREAS" clauses are hereby ratified and confirmed as being true and correct and are hereby made a specific part of this Resolution. SECTION 2: That upon issuance of a City Certificate of Occupancy on the building for PTC and submission of receipts for moving expenses, the City Manager is authorized to forward a check for $50,000.00 to PTC to defray moving expenses and other April 15, 2002- Temp. Reso. #9762 5 costs of moving to the City of Tamarac which is to be funded from the Economic Development account of the General Fund. SECTION 3: That PTC will refund the relocation expenses paid by the City to PTC and the fee waivers granted by the City to PTC if the company should relocate from the City of Tamarac, and reimburse the fee waivers should the building be sold to another entity, according to the following schedule: First Year — 80%, Second Year — 60%, Third Year — 40%, Fourth year — 20%, and Fifth Year — 0%. SECTION 4: That the City Manager is authorized to waive various review and permit fees in an amount not to exceed $115,770.00 in addition to the fee waivers of $23,230.00 granted by Ordinance No. 0-2000-14 to all properties developed in the Westpoint Centre, as well as designate the Propulsion Technology, LLC project as an Economic Development Project. SECTION 5: That the City Manager is authorized to sign an Agreement with PTC which designates this as an Economic Development Project and delineates the relevant substantive parts of this Resolution (attached hereto as Exhibit "A"). SECTION 6: That the City Manager is authorized to enter into an agreement with PTC, the State of Florida and Broward County to participate in the Qualified Target Industry Program over a minimum eight (8) year period for a total amount not to exceed $36,000.00 for jobs created within the first three (3) years. SECTION 7: All resolutions or parts of resolutions in conflict herewith are hereby repealed to the extent of such conflict. SECTION 8: If any clause, section, other part or application of this Resolution is held by any court of competent jurisdiction to be unconstitutional or invalid, in part or April 15, 2002- Temp. Reso. #9762 6 application, it shall not affect the validity of the remaining portions or applications of this Resolution. SECTION 9: This Resolution shall become effective immediately upon its passage and adoption. PASSED, ADOPTED, AND APPROVED this 24th day of April, 2002. ATTEST: MARION S ENSON, CMC - CITY CLERK I HEREBY CERTIFY that I ve proved this R SO UTIO"s to ITCHELL $/.AFT CITY ATT EY com mdev\u:\pats\u serdata\wpd ata\res\9762reso JOE SCHREIBER �MAYOR RECORD OF COMMISSION VOTE: MAYOR SCHREIBER A ye., pIST 1: V/M. PORTNER fl !i DIST 2: COMM. MISHKIN A - ye, DIST 3: COMM. SULTANOFA-yei DIST 4: COMM. ROBERTS Alye, 1 1 1 EXHIBIT "A" City of Tamarac TEMP RES° #9762 "Committed to Excellence... Always" Jeffrey L. Miller City Manager April 24, 2002 Mr. Raphael Elkayam CEO and President 8050 NW 31 st Street Miami, FL 33122 Dear Mr. Elkayam: I am pleased to inform you that the Mayor and City Commission approved Resolution No. R-2002-114 at the regular City Commission meeting held on April 24, 2002. This Resolution approved economic incentives to partially defray the expenses of Propulsion Technology LLC (PTC) to relocate to the City of Tamarac. This letter is to serve as the agreement which was authorized by Resolution No. R-2002-114 that contains the conditions by which the relocation expenses would be paid by the City of Tamarac to PTC and provides the delineation of review fees which will be waived by the City of Tamarac for PTC. have attached a copy of this Resolution for your records. The Resolution authorized the City Manager to enter into an Agreement between PTC and the City for the reimbursement of relocation expenses in an amount not to exceed $50,000.00. The amount of the reimbursement will be based on receipts presented by the Company to the City documenting moving and other relocation expenses. Upon issuance of the Certificate of Occupancy, the Company may submit documentation for the reimbursement of expenses. The Resolution also authorized the City Manager to enter into an Agreement between the City and PTC for the waiver of permit fees in the amount of $139,000.00. The fees to be waived are as follows: Community Development Site Plan Processing .................................... $2,250.00 Traffic Impact ............................................. $16,480.00 Streetscape Improvement ............................ $4,500.00 7525 N.W. 88th Avenue, Tamarac, Florida 33321-2401 • (954) 724-1230 • Fax (954) 724-2454 • jeffm@tamarac.org Equal Opportunity Employer Mr. Raphael Elkayam Propulsion Technology, LLC April 24, 2002 Page 2 *Engineering Department Paving & Drainage (Partial Waiver) ........ $100,770.00 Water & Wastewater (Partial Waiver) ........ $15,000.00 TOTAL $139,000.00 * Engineering fee waivers will be pro -rated if the project is phased. The Resolution also authorized the City Manager to enter into an agreement between the City of Tamarac, Broward County, the State of Florida and PTC for the City's participation in the Qualified Target Industry program for an amount not to exceed $36,000 over a minimum eight -year period for jobs created within the first three years. PTC will be required to refund the relocation expenses paid by the City to PTC, if the company should relocate from the City of Tamarac according to the schedule as follows; First Year — 100%, Second Year — 80%, Third Year — 60%, Fourth Year — 40%, and Fifth Year — 20%. PTC will also be required to refund the fees waived by the City for the construction of the PTC building should the building be sold to another entity according to the following schedule; First Year — 100%, Second Year — 80%, Third Year — 60%, Fourth Year — 40%, and Fifth Year — 20%. Should you have any questions regarding this matter, please contact J. Christopher King, Director of Community Development at (954) 724-1292. The City of Tamarac looks forward to working closely with PTC in its relocation to the City of Tamarac. Sincerely, Jeffrey L. Miller City Manager c: Thomas Miller Enclosure Mr. Raphael Elkayam Propulsion Technology, LLC April 24, 2002 Page 3 The parties listed below have agreed to the assistance in defraying moving and other relocation expenses, the fee waivers and participation in the State QTI program as presented in this letter. Mr. Raphael Elkayam CEO and President Propulsion Technology, LLC O` Christopher King Mr. reey`L. Miller Director of Community Development City Manager