Manatee County Government Administrative Center Commission Chambers, First Floor 9:15 a.m. - January 10, 2017
January 10, 2017 - Regular Meeting
Agenda Item #30

Tax Exemption - Allied New Technologies 2, Inc.


Contact and/or Presenter Information

Karen Stewart
County Economic Development Official
Ext. 3029

Action Requested
Adoption of Ordinance 17-11 finding that Allied New Technologies 2, Inc., is approved for an Economic Development Ad Valorem Tax Exemption for a period of eight years.

Enabling/Regulating Authority
Manatee County Ordinance 14-31, authorization for the County to grant Economic Development Ad Valorem Tax Exemption

Resolution 14-084 implementing the County's Economic Development Ad Valorem Tax Exemption ordinance

Article XV of Chapter 2-29 Manatee County Code

F.S. 196.1995 Economic development ad valorem tax exemption

Background Discussion

On June 18, 2013, the voters of Manatee County approved the establishment of an Economic Development Ad Valorem Tax Exemption (EDAVTE) as authorized per Florida Statute.

On June 3, 2014, the Manatee County Board of County Commissioners (BCC) adopted Ordinance 14-31 to authorize the granting of EDAVTE to new businesses and existing businesses and adopted Resolution 14-084 establishing EDAVTE policy guidelines and application process.

Pursuant to Resolution 14-084, a performance agreement will be executed by the BCC at a future date obligating Allied Technology 2, Inc., to continue to satisfy all items described in the application, including job creation, average wage, capital investment, innovation, local procurement, environmental sustainability, and projected sales inside and outside of the Metropolitan Statistical Area (MSA) as set forth in the application. In the event that the project is not completed as represented in the application, Allied New Technologies 2, Inc., will not receive any benefit of the tax exemption without approval of the BCC.

Pursuant to Article XV of Chapter 2-29 of the Manatee County Code, the BCC will make a decision on whether to grant the exemption and, if granted, the duration and percentage of the exemption utilizing the Manatee County Economic Development Policy Guidelines adopted through Resolution 14-084, which includes the following factors:  the number of current and projected employees of the business located in the County; average wage of employees of the business located in the County; amount of capital investment; innovative business; commitment to local procurement; net positive contribution to the local economy; and sales factor. The Board may consider any other activity or factor that promotes the sustainability of economic development within the County.

Pursuant to F.S. 196.1995 tax exemptions are to be approved through an Ordinance adopted by the BCC.

The County has received an Economic Development Ad Valorem Tax Exemption Application from Allied New Technologies 2, Inc. The company will locate a new business in Manatee County, create 53 jobs with average wage of $52,850, and capital investment of $53.8 M.

After analysis and review of the application pursuant to Article XV of Chapter 2-29 of the Manatee County Code, staff completed attached worksheets. The application was awarded 18 points which suggests an 8 year tax exemption schedule as follows:

Year 1:    100%                Year 5:      60%
Year 2:    100%                Year 6:     40%
Year 3:     90%                Year 7:     20%
Year 4:     80%                Year 8:     10%

The projected 8 year total for taxes exempted is $1,204,939.

The ten year projected net benefit to the County is estimated to be $1,297,348 taxes paid to the County and $2,922,819 to Manatee School District.

The Manatee County Property Appraiser’s Office has provided a report regarding the application that estimates revenue lost to the County during the current fiscal year if the exemption applied for were granted and the property for which the exemption is requested would have otherwise been subject to taxation to be $345,248 this year, and that the property meets the definition of a new business as defined in the policy guidelines.

The tax exemption award is contingent upon the project being fully permitted through all State and Local entities, including Florida Department of Environmental Protection, Florida Department of Transportation, North River Fire District, Manatee County, and any other applicable agencies.

Manatee County staff will be responsible for monitoring EDAVTE requirements throughout the term of the exemption.

Compliance with the EDVATE program is managed through the adoption of Ordinance 17-11.    

Notice of Public Hearing was published in the Bradenton Herald on December 28, 2016, as required by Resolution 14-084.

County Attorney Review
Formal Written Review (Opinion memo must be attached)

Explanation of Other

Reviewing Attorney

Instructions to Board Records
Original ordinance for Board records, copy of executed Ordinance and approved agenda to Karen Stewart, Redevelopment & Economic Opportunity Department (karen.stewart@mymanatee.org)

Cost and Funds Source Account Number and Name

Amount and Frequency of Recurring Costs

Attachment:  RLS Memo.Allied.pdf
Attachment:  Manatee County EDAVTE Worksheets.Allied.pdf
Attachment:  Manatee County Property Appraiser's Report.Allied.pdf
Attachment:  Affidavit of Notice of Public Hearing.Allied.pdf
Attachment:  Ordinance No. 17-11 EDAVTE Allied New Technologies 2.pdf
Attachment:  Supplemental Information for BCC.pdf
Attachment:  Allied PowerPoint.pdf