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055-1999 LTC CITY OF MIAMI BEACH CIW HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH, FLORIDA 33139 http:\\ci.miami-beach,fl.us L.T.C. No. 55-1999 LETTER TO COMMISSION March 3, 1999 TO: Mayor Neisen O. Kasdin and Members of the City C mission FROM: Sergio Rodriguez City Manager SUBJECT: Business Incentives Attached, please find information regarding various incentive programs that are available to businesses in the City of Miami Beach. These incentive programs serve a variety of purposes, including the attraction and retention of targeted industries, providing jobs for City residents, job training and funding for physical improvements, and have no financial impact on the City. The benefits that are available to businesses include various types of grants and tax credits. The incentives available to the business can represent substantial savings, without any financial impact on the City since these programs are funded at the state and federal level. These programs have already played a key role in the business development of Miami Beach. For example, 72 Miami Beach businesses have received State Enterprise Zone incentives by filling 760 jobs with Enterprise Zone residents since 1996. Additionally, the entertainment industry received a boost this past fall with the decision of The Box to remain in Miami Beach. This decision was influenced by a Qualified Target Industry tax refund that provides $335,500 in county and state incentives for the creation of 142 jobs over the next three to four years. In partnership with the Beacon Council, the Community/Economic Development Department will conduct Enterprise Zone Business Forums with the business community within the next two months, educating local businesses on the availability and accessibility of these incentive opportunities. CrM/ JvYI~ SR:CMC:RM:kc Attachment CITY OF MIAMI BEACH CITY HALL 1700 CONVENTION CENTER DRIVE MIAMI BEACH FLORIDA 33139 COMMUNITY /ECONOMIC DEVELOPMENT DEPARTMENT COMMUNITY DEVELOP~IENT & HOUSING 305673.n60 ECONOMIC DEVELOPMENT 305673.7193 Economic Incentives FAX 305673.77n Enterprise Zone The Enterprise Zone is a designated area within Miami-Dade County offering fiscal incentives to businesses that locate or expand within the zone, with the objective of encouraging investment andjob creation. To qualify for these incentives, new jobs have to be created for enterprise zone residents. The reduction in the cost of doing business in the Enterprise Zone can be substantial. Incentives include corporate income tax credits on property taxes not aOOted by local government, 15% ta;" credit on wages paid to employees who reside in the Enterprise Zone, and refunds on sales tax paid on business equipment and building materials. Qualified Target Industry Tax Refund Program Provides tax refunds to pre-approved applicants of up to $3,000 per new job creates; $6,000 in an Enterprise Zone. New or expanding businesses in selected targeted industries or corporate headquarters are eligible. The incentive package must be qualified by Enterprise Rorida; Targeted industries include: corporate headquarters, printing and publishing, motion pictures, communications, and business services. Quick Response Training Program This is a customer-driven training program designed as an inducement to secure new value-added businesses to Rorida as well as provide existing businesses the necessary training programs for expansion. The program is administered by Enterprise Rorida's Jobs and Education Partnership, with technical advice provided by the Department of Education. Eligible projects are new or expanding/existing Rorida businesses that produce exportable goods or services, create new jobs and employ Rorida workers who require customized entry-level skills training. Commercial Revitalization Property Rehabilitation Grant Program Provides property rehabilitation grants to business and property owners to' assist with pamtmg of buildings, replacing business signs:.re'placing and installing of awnings, and correcting code violations. Businesses must serve all economic groups of the City in order to qualify for these grants. Welfare-to- Work Tax Benefits The Welfare-to- Work Tax Credit encourages employers to hire long-term welfare recipients. The benefit to business is the tax credit which can reduce the federal tax liability. Employers can save up to $8,500 in federal taxes per employee and there is not a limit on the number of employees for whom an employer can take credit. The Work Opportunity Tax Credit can save employers up to $2,400 in federal taxes per employee. The tax credit is offered to employers as an incentive to hire people from specific target groups. Work Supplementation or Grant Diversion offers the employer the Temporary Cash Benefits for a specified period as an incentive to hire. Rorida's On-the-Job Training incentive enables employers to recoup up to 50 percent of the wages paid to the training program participant. There are additional state tax exemptions under the Wages Registry and benefits for Enterprise Zone businesses. When companies decide to relocate their operations, they want the best deal for their relocation dollar. [n Miami-Dade County, Florida, companies can find just that. As Miami-Dade County's economic devel- opment partnership, The Beacon Council exists to facilitate the recruitment of new busi- nesses to that area, while assisting in the expansion of the area's existing businesses. When attracting new businesses to our community, The Beacon Council promotes the many advantages of doing business in Miami-Dade County. Those advantages include a number of business incentive pro- grams and a favorable tax structure that have encouraged many domestic and international companies to relocation or expand their oper- ations here. Training programs, financial assistance .and tax incentive programs are available to businesses through the State of Florida, Miami-Dade County and local municipalities. Florida's status as a "right-to-work" state in an additional asset when recruiting or relocat- ing employees to Miami-Dade County. m. TAXES On the state level, individuals pay no per- sonal income tax while businesses pay a com- paratively low corporate income tax rate of 5.5%, with no inventory tax, no unitary tax and several sales tax exemptions. In Miami- Dade County, a competitive tax structure allows businesses to enjoy relatively'low. sales and property taxes while remaining exempt from corporate taxes. '" .. STATE INCENTIVES '" The State of Florida has three major incentive programs for local companies. The Qualified Target Industry Tax Refund Program provides for a tax refund of up to $5,000 per new job created (up to $7,500 if located in an Enterprise Zone) in Florida by qualifying businesses after being certified through Enterprise Florida. The Quick Response Training Program provides cus- tomized start-up training grants that average $700 to $1,000 per employee. The Economic Development Transportation Road Fund Program can provide up to $2 million for public transportation improvements as an inducement for a company's expansion or relocation. . LOCAL INCENTIVES There are three designated Enterprise Zone areas in Miami-Dade County. Local incen ti ves incl ude property tax abatement and reimbursement of impact fees. State tax bene- fits include a sales tax credit for job creation, a sales tax refund on the purchase of new business property and a jobs credit on state corporate tax equal to 5-15% of wages paid to new Enterprise Zone residents. The benefits can be combined with financial incentives for hiring welfare reform applicants. The Beacon Council can customize incentives and busi- ness assistance packages which are tailored to respond to individual companies' specific location requirements. m. LABOR TRAINING Miami-Dade County offers several train- ing assistance programs to employers. The Jobs and Education Partnership (JEP) offers on-the-job training for private industry. Miami-Dade County Public Schools, local educational institutions like Florida International University and Miami-Dade Community College offer a wide range of vocational and occupational training certifi- cate programs. ~ WORK OPPORTUNITY TAX CREDIT WOTC is a federal income tax credit that encourages employers to hire certain individ- uals seeking employment. __ ASSISTANCE The Beacon Council's professional staff offers relocating and expanding businesses a full range of free services, including site and location tours, information on existing federal, state and local financial programs, permitting and customized sales presentations. As Miami-Dade County's economic develop- ment partnership, The Beacon Council has the ability to fashion customized incentive packages for companies interested in relocat- ing to Miami-Dade County. J>. INDUSTRIAL DEVELOPMENT > REVENUE BONDS Through the issuance of tax-exempt industrial development bonds, the Miami- Dade County Industrial Development Authority provides below market interest rate financing for fixed asset projects. For qualified borrowers, loans ranging from $1.75 million to $10 million for terms up to 20 years can be made available at interest rates approximating 75% of the prevailing New York prime rate. Eligible projects can include manufacturing, processing, assembly, printing, food processing and others in which raw material is converted or combined with other raw material to produce a finished or semi-finished product and qualified 501 (c) (3)'s. Eligible costs can include the purchase of land, construction of new buildings and purchase and installation of new equipment. The purchase and rehabilitation of an exist- ing facility may also qualify. Taxable indus- trial development revenue bonds are also available for non-manufacturing businesses. The Authority requires that the business have the capacity to obtain commercial credit and meet typical commercial bank credit standarcls. Miami-Dade County, Florida Enterprise Zones What is an Enterprise Zone? The Enterprise Zone is a designated area within Miami-Dade County, offer- ing financial incentives to businesses that locate or expand there. The Enterprise Zone was established in Miami-Dade County in 1986, when, in response to a ballot issue proposed by the Miami-Dade County Commission, local taxpayers ratified its creation. Miami-Dade County's Enterprise Zone program combines state and local tax treatments, creating persuasive advantages to any business locating or expanding in the Zone. Financial incentives to create jobs in the Enterprise Zone became available January 1, 1987 through Enterprise Zone tax credits and exemptions. Miami- Dade has three areas which comprise the Enterprise Zone for new business location or business expansion. In July of 1995, the State of Florida officially designated a new Zone that included the three Zones previously in existence and added the recently desig- nated Federal Enterprise Community within the boundary of the State Enterprise Zone. Miami-Dade's Enterprise Zone is divided into three areas which are Miami Beach, HomesteadIFlorida City (including Perrine-Cutler Ridge) and an area in North-Central Miami-Dade that includes portions of the City of Hialeah, portions of the City of Miami( including Little Havana, Allapattah and portions 01 Liberty City. The combined population of residents living within Miami- Dade's Enterprise Zone is nearly 200,000. The Objective of an Enterprise Zone: The objective of the Enterprise Zone program is to encourage business development and expansion which creates new employment within the desig- nated Zone areas. Substantial incentives are available to businesses of all sizes. Some reductions are also provided to businesses already operating in the Zone. The reduction in the cost of doing business can be substantial. An insert page illustrates how an actual business could reduce its overhead by nearly half a million dollars over a ten year period, by locating in an Enterprise Zone. For more information on sites located Specific Incentives: Following are the specific Enterprise Zone incentives, with a simplified description of each term: Ell' Property 'f.ax Abatement Up to 100% of local property taxes can be abated by Miami-Dade County for a company moving into a Zone and creating 5 or more new jobs. The abatement can be granted for a period of up to 5 years. Ell Refund ofImpact Fees A refund of road, police, fire, emergency services and water and sewer impact fees (within a municipality, the city must also authorize the tax abatement). Ell. Enterprise Zone Property Tax Credit 96% credit against corporate income tax on any ad valorem property taxes not abated by local govern- ment, for a period of up to 5 years. Ell- Enterprise Zone Jobs Tax Credit 15% credit against corporate income tax or sales and use tax on wages paid to each employee who is a resident of an Enterprise Zone. Ell. Sales Tax Refund 97% refund of sales tax in business property and on building materials purchased for use by the company, Ell Federal Job Training Tax Credits Residents of Miami Dade's Enterprise Zone are also eligible under these federal programs, A substantial subsidy is paid for training and hiring new employees. Please refer to the insert titled Business Incentives for additional incentives offered by Miami-Dade County. Physical Description: The Miami Beach Enterprise Zone area encompasses two rapidly growing areas of this world renowned beachfront community - South Beach, famous for its Art Deco Architectural District and exciting evening entertainment characterized by stylish restaurants, outdoor cafes and night club activity; and North Beach, an emerging commercial and residential corridor, com- prised of moderately priced single-family homes, low-rise condominiums and upscale gated waterfront residences. Infrastructure Enhancements: In order to accommodate the explosive growth in commercial, hotel and residential development in the South Beach area, extensive new infrastructure improvements are presently underway including new water, sewer, electrical upgrades and street resurfacing along Collins Avenue, Lincoln Road and elsewhere. In North Beach, the area extending from 76th Street south to 63rd Street, east on Ocean Terrace and west along 71st Street, is current- ly undergoing an extensive $18 million public street- scape improvement project, including new street light- ing, landscaping, drainage traffic signalization, street resurfacing and wider side- walks. hotels - the 800-room Loews Miami Beach Hotel and the 424-room Crowne Plaza Hotel, the first African-American owned hotel project in the United States. Both hotels are the result of an unprecedented public / private joint venture, whereby the City acquired the land and put together a financial inducement package in exchange for long-term leases and the anticipated tax benefits to be derived from the proper- ties, as well as from operations of the two facilities. The anticipated growth in visitors, resi- dents and the workforce, will create a strong demand for new services including retail, entertainment and professional services. Surface Transportation: Located only minutes from downtown Miami and approximately 15 minutes from Miami International Airport, Miami Beach is readily accessible from most of the major Enterprise Zone Business Activity: Over the past few years, Miami Beach has emerged as a mecca for the photo, film and Llshion industries. This phenomenon, coupled with Greater Miami's own emer- gence as the banking and trade capital of the Americas, has created a strong demand for new commercial, residential and retail development. The demand for new upscale hotel development is evident by the number of multimillion dollar rehabilitation pro- jects involving older hotels as well as the construction of two new convention-quality Enterprise Zone Enterprise Zone Aqua Area Regional map on inside of pocket folder locates all Miami-Dade COllnty's Enterprise Zones. roadways and expressways in Miami-Dade County including I-95, S.R. 836, and S.R.112. Population: The character of Nliami Beach has changed dramatically over the last ten years, becoming significantly younger and more diverse, creating greater demand for goods and services. The first major change came with an influx of individuals from the Caribbean Basin, Central and South American countries. Miami Beach has also been discovered as a place to live and work by increasing numbers of young professionals and their families. For more information on sites located in Miami-Dade's Enterprise Zones, contact: The Beacon Council's Business Development Department at (305) 579-1300. ENTERPRISE FLORIDA BUSINESS INCENTIVES Type of Incentive Award Made to Whom Wage Requirement Number of Jobs Required Available to Expanding Industry Available to New Industry A vailable to Retain Jobs Amount of Award Payout Schedule QUALIFIED TARGET INDUSTRY TAX REFUND PROGRAM (QTI) Tax refund Business At least 115% of state or county or Metropolitan Statistical Area wage At least 10 new full-time equivalent jobs or if an expansion, a 10 percent increase in employment. Yes Yes No UP...to $5,000 per job ($7,500 in an Enterprise Zone) and not to exceed a total of $5 million ($7.5 million in an Enterprise Zone) Paid out over a minimum of four years QUICK RESPONSE TRAINING PROGRAM (QRT) Grant Training provider " Goal is 115% of county or state wages, whichever is lower; exception for Enterprise Zones or distressed areas At least 10 new full-time equivalent jobs or if an expansion, a 10 percent increase in employment or at least 100 new jobs. ' Yes Yes As part of an expansion project _ Negotiated with local education provider to meet industry need Reimbursement quarterly to local education provider 1 ECONOMIC DEVELOPMENT TRANSPORTATION FUND (ROAD FUND) i , : : i , , , Grant , Local government on behalf of: business f No requirement but is a consideration I I i I No minimum requirement for . grant request of less than $200,000; 100 full-time positions for grant request of $200,000-$1 million; 200 full-time positions for grant .request over $1 million Yes Yes Yes Up to $2 million Paid out to local governmental : entity as needed for ' construction ' QUALIFIED TARGET QUICK RESPONSE ECONOMIC INDUSTRY TAX REFUND TRAINING PROGRAM DEVELOPMENT PROGRAM (QRT) TRANSPORTATION (QTI) FUND (ROAD FUND) Specified Use of Funds None Training costs; instructors' Design and engineering costs; wages; curriculum COnstruction costs of development; resource transportation project; traffic materials; training equipment signals , (cannot be used for trainees' wages) Local Support Required Yes - 20 percent oftotaI tax Yes - local education Yes - right of way refund (businesses may provider administers and exercise exemption in REDI provides training; : counties). endorsement by local I , economic development I , organization I . : .. I "But For" Incentive Yes No Yes i I I Eligible Industries! CorporateHQs; Must produce a good or Manufacturers, corporate I I . , Businesses! Activities Manuf. of Food. Apparel, service for markets outside headquarters Furniture, Paper, Chemicals, the local area I Rubber, Primary/Fabricated f Metals, Industrial Machinery, Electronic Equip., Transportation Equip., and Instruments; Security/ Commodity Brokers; Insurance Carriers; Business SeIVices; Printing/Publishing; Communications; Research & Development Ineligible Industries! Any retail activities; any electrical Retail establishments; Retail, distributors, hotels Businesses! Activities utility company; any phosphate or training for existing (exceptions for Enterprise I solid minerals severance, mining, employees Zones, distressed areas and or processing operation; any oil or Rural Economic Development , gas exploration or production Initiative counties) operation; or, any fino subject to regulation by the Division of Hotels and Restaurants ofDBPR - For further information, "-"1? call: .~ (904) 488-6300 (904) 922-8645 (904) 488-6300 2 ~N'l'~RPRISE FLORIDA - QUALIFIED TARGET INDUSTRY TAX REFUND PROGRAM How the Program Works The Qualified Target Industry (QTI) Tax Refund Program is a tool available to Florida communities to encourage quality job growth in targeted high value-added businesses. This program provides tax refunds to pre-approved applicants of up to $5,000 per new job created; $7,500 in an Enterprise Zone, New or expanding businesses in selected targeted industries or corporate headquarters are eligible. If approved, the applicant may receive refunds on the taxes it pays including corporate income, sales, 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 percent of the total refund approved may be taken in any single fiscal year. . BUSINESS FILES APPUCATION · In order to participate in the program, a company must apply to Enterprise Florida prior to making a decision to locate or expand in Florida. 1 In order to qualify for consideration under the program, an applicant must: be in a target industry (see attached Target Industries List); demonstrate that the tax refund is necessary for the business to locate or expand in the community; create at least 10 new jobs in Florida in a target industry business and, if an expansion project, increase employment by at least 10 percent; pay an average annual wage that is at least 115 percent of the state or the local average wages; show that the jobs make a significant economic contribution to the area economy; and t-,.~ "'~ provide ~ ~solution from the city or county commission recommending the applicant for the incentive and committing the community to provide a local match equaling 20 percent of the tax refund. Iflocated in a REDI county, the business may elect to be exempt from the local match and accept a refund equal to 80% of the refund for which they would otherwise qualify. 1 All final decisions on applications are based upon all available Information at that time. Any business decisions, such as announcements, leasing of space or hiring of employees, made prior to final QTJ approval (and not made contingent upon QTJ approval) will likely be grounds for disapproval, Projects which clearly do not require inducement will not be approved Ln J. LKr .tU':)l:. 1'LUKWA L V ALUAT~S APPLICA nON AND REPORTS FINDiNGS AND RECOMMENDA nON TO THE GOVERNOR'S OFFICE OF TOURISM, TRADE AND ECONOMIC DEVELOPMENT (OTTED) · EFI staff will shepherd businesses and communities through the entire application process, ensuring that the company and community understand the application and what is required for a complete, effective application. The application is a critical part of this program. It is the vehicle used by Enterprise Florida and 01TED in evaluating the business and the project and is the basisfor the decision to approve or disapprove the application, as well as for determining the level of refund. Therefore, well thought-out, thorough responses are of utmost importance. The community can be of great assistance to the company in helping to complete certain portions of the application, in particular the section entitled "Project Impact Information. " · The application must be complete before Enterprise Florida can consider it; this includes providing the resolution from the city or county commission. · Enterprise Florida reports its evaluation of the application and recommendation to the Director of OTTED, who makes the final decision on the project. While the law allows a total of 45 days to evaluate the completed application, this process will be accomplished within 10 days. OTTED DIRECTOR ISSUES FINAL ORDER · The Director's approval or disapproval of the application is in the form of a final order. · If the application is approved, the final order will indicate the amount and schedule of tax refunds approved, as well as the number of jobs and average wage rate for the project jobs. These must be the same as stated in the application. · While the law grants OTTED 30 days to approve or disapprove an application, a final decision will typically be rendered within 3 days. BUSINESS AND OmD DIRECTOR SIGN TAX REFUND AGREEMENT · Once the QTI application is approved, the business will begin working directly with OTTED to finalize the tax refund agreement. Within 30 days of issuance of the final order, the QTI business and the Director of OTTED must sign a written tax refund agreement. This agreement may h~hought of as a "contract" between the company and OTTED. EPI staff will provide the business with the appropriate contacts within OITED and will continue to be available to assist, as necessary, in this process. BUSINESS SUBMITS CLAIM FOR TAX REFUND PAYMENT TO OrrED · The business submits a claim each year for the scheduled tax refund and the community must pay its local match into the Economic Development Trust Fund. · If all the terms of the tax refund agreement are met, then OTTEO pays the refund. 2 QUALIFIED TARGET INDUSTRY (QTI) TAX REFUND PROGRAM TARGET INDUSTRIES LIST Effective September 1, 1996 CORPORATE HEAI>QUARTERS BUSINESS SERVICES RESEARCH AND DEVELOPMENT SECURITY AND COMMDDITY BROKERS CHEMICALS AND ALLIED PRODUCTS INSURANCE CARRIERS RUBBER AND MISC. PLASTICS HOLDING AND OTIffiR INVESTMENT OFFICES PRTh1AR Y METAL INDUSTRIES FABRICATED METAL PRODUCTS NON-DEPOSITORY CREDIT INST. INDUSTRIAL MACHINERY AND EQUIPMENT MOTION PICTURES - Only motion picture sound recording and reproducing studios COMMUNICATIONS ELECTRONIC AND OTHER ELECTRIC EQUIPMENT INSTRUMENTS AND RELATED PRODUCTS APP AREL AND OTIffiR TEXTILES LUMl3ER AND WOOD PRODUCTS FURNITURE AND FIXTURES MISCELLANEOUS MANUFACTURING PAPER AND ALLIED PRODUCTS PRINTING AND PUBLISHING FOOD AND KINDRED PRODUCTS WHOLESALE DISTRIBUTION STONE, CLAY AND GLASS '-~ '-."", Only businesses serving multi-state and international markets are targeted. Business must be able to locate to other states. Retail activities, utilities, mining and other extraction or processing , businesses, and activities regulated by the Division of Hotels and Restaurants of the Department of Business and Professional Regulation are statutorily excluded from consideration. 3 ENTERPRISE FLORIDA QUICK RESPONSE TRAINING PROGRAM , How the Program Works The Quick Response Training Program is a customer-driven training program designed as an inducement to secure new value-added businesses to Florida as well as provide existing businesses the necessary training programs for expansion. Through this program, Florida is able to effectively retain, expand and attract employers offering high- quality jobs. The program is administered by Enterprise Florida's Jobs and Education Partnership, with technical advice provided by the Department of Education. Eligible projects are new or expanding/existing Florida businesses that produce exportable goods or services, create new jobs and employ Florida workers who require customized entry-level skills training. PROGRAM REQUIREMENTS · Training services can be provided through Florida's community collegeS, school districts, area vocational- technical centers, state universities and, when approved by the Quick Response Advisory Committee, licensed and certified post-secondary private institutions. Training is limited to 18 months or less. · Training can be conducted at the business's own facility, at the training provider's facility, or at a combination of sites that best meets the needs of the business. · Program instructors can be either full- or part-time educators or professional trainers from the business. · The selection of trainees is the responsibility of the business. However, the Training Provider and/or local Job Service Office is available to provide assistance in recruiting potential trainees for initial screening if the business so desires. The business is also responsible for establishing criteria (such as education and skill levels) to select trainees. APPLICATION PROCESS · Businesses requesting training submit an application to Enterprise Florida's Quick Response Training Program Director. · The application process is designed to be a collaborative effort between the business requesting training and their chosen training provider. Training providers contribute their expertise in the area of curriculum design and devewp,ment and complete Part II of the application form. .... · Special consideration will be given to applicants that fit the following criter Training for high-quality jobs (pay an average annual wage of at least 115 percent of local or state . private sector wage, whichever is lower); Location of the business in a distressed urban or rural area or Enterprise Zone project; Importance of the business to the economic base of the community; and APPROVAL PROCESS · The Quick: Response Training Program staff will communicate to the applicant within three working days from receipt of an application as to whether or not the application is complete. Applications will be approved or denied within ten working days of receipt of a complete application unless other action is required by the Quick Response Advisory Committee or the Jobs and Education Partnership. Businesses requesting $300,000 or more require action by the Quick: Response Advisory Committee and requests for $1 million or more require action by the Jobs and Education Partnership. · Once an application has been approved, a grant agreement "repared by Quick Response staff for signing by the business requesting training, the Training Provider receiving funds, and Enterprise Florida's Jobs and Education Partnership. · Upon completion of training, applicants are ask:ed to complete a post-training evaluation to assist staff in determining effectiveness of the program. In addition, applicants will be surveyed one year after program completion to assist in tracking long-term effectiveness of the program. ENTERPRISE FLORIDA CONTACT: Enterprise Florida Jobs and Education Partnership Quick Response Training Program 325 John Knox Road, Building 200 Tallahassee, Florida 32303 (904) 922-8645 (phone) (904) 921-1101 (fax) http://www.state.tl.us/commerce (Internet address) ....,- -..~~.. '\ 2 EN'11ERPRISE FLORIDA ECONOMIC DEVELOPMENT TRANSPORTATION FUND How the Program Works The Economic Development Transportation Fund, commonly referred to as the "Road Fund," provides funding to units oflocaI government for the elimination of transportation problems that adversely impact a specific company's location or expansion decision. The elimination of the problem must serve as an inducement for a specific company's location, retention, or expansion project in Florida and create or retain job opportunities for Floridians. Up to $2,000,000 may be provided to a local government to implement the improvements. The actual amount funded is based on specific job creation and/or retention criteria. AWARD JOB OPPORTUNITIES CREA TEDIRET AINED more than $1,000,000 $200,000 - $1,000,000 less than $200,000 200 or more full-time positions 100 or more full-time positions less than 100 full-time positions Eligible projects are those which facilitate economic development by eradicating location-specific transportation problems (e.g., access roads, signalization, road widening, etc.) on behalfofa specific eligible company (e.g., a manufacturing, corporate/regional headquarters, or recycling facility). LOCAL GOVERNMENT SUBMITS THE APPLICA nON · In order to participate in the program, the unit of government who will own and be responsible for maintenance of the transportation improvement must apply to Enterprise Florida and have approval offunds for its transportation project PRIOR to the final decision of the company on whose behalf the application was made. · In order for the application to be considered, that company must estimate and disclose: the estimated amount of capital investment it intends to make in the facility, the estimated number of penn anent full-time jobs to be created and/or retained at the facility, and the aver.age hourly wage, excluding benefits, for the new and/or retained pennanent full- timejobS:\ PROGRAM PROCESS · Enterprise Florida will work very closely with the community and the company to ensure the needs of the company are met and the application accurately reflects the transportation problem. · Upon receipt of an application, Enterprise Florida staff will detennine if it is complete and meets program requirements. Any project found to meet these requirements will be presented to the 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 type of company on whose behalf the application was made. AFTER THE PROJECf IS APPROVED FOR FUNDING · AFTER funds for the transportation project are approved, the company may proceed with its final site selection decision. · The Director of OTIED will enter into a contract with the applicant for the elimination of the transportation problem. · AFfER the company on whose behalf the application was made has begun construction of its facility, AND the local government has submitted necessary documentation, a request for funds may be submitted to OTIED. · The local government may receive a 90 day advance of funds, but must provide evidence of disbursement for eligible expenses before receiving additional funds. Otherwise, funds may be requested on a quarterly basis. ENTERPRISE FLORIDA CONTACT Enterprise Florida, Inc. Economic Development Transportation Fund 325 John Knox Road Atrium Building, Suite 201 Tallahassee, Florida 32303 (904) 488-6300 (phone) (904) 922-9595 (fax) http://www.state.f1.uslcommercel (Internet address) ~~ l_ _... ~~ THE FOLLOWING DOCUMENTS ARE REQUIRED TO BEGIN PROCESSING your application to MBDCs Commercial Revitalization Program: . Completed Application Form . Lease Agreement(s} · Documentation verifying affordability to low and moderate income residents of products/services provided by business(es} · Letter stating commitment to rent to businesses serving low and moderate income residents for three years . Blueprints of proposed renovation . Planning Department Approval · Documentation from City of Miami Beach listing City Code, Zoning Code, Property Maintenance, Building Code: and Fire Code violations, or lack thereof · Photographs showing existing conditions · AlA Abbreviated Form of Agreement Between Owner and Contractor · Construction Cost Estimate (either three competitive quotes or by an independent estimator} ONCE THE PROJECT IS COMPLETE and paid for by the applicant, he/she must submit the following documents in order to begin processing disbursement of grant funds: · Copies of contractors and architects invoices · Copies of canceled checks paid to contractor · Copy of the general contractors final release of lien . Copy of Certificate of Completion ., \-..,........ .... " t The Facts About Your Business Bottom Line and Welfare-to-Work Tax Benefits The Welfare to Work Tax is a federal income tax credit that encourages employers to hire long-term welfare recipients who begin work after December 31, 1998, and before May 1, 1999, The benefit to your business is the tax credit which can reduce your federal tax liability. The D.S, Small Business Administration's Welfare to Work initiative is designed to help small business OWilers gain access to an under used, but viable work force. The federal and state government has developed tax incentives to encourage employers to hire and retrain long-term welfare recipients moving toward self-sufficiency and independence. Your participation as a small business owner is vital to the success of this national objective. How does the Welfare-to-Work Tax Credit benefit you? Employer can save up to $8,500 in federal taxes per employee and there is not a limit on the number of employees for whom an employer can take credit. Credits equal to 35 percent of the first $10,000 in qualified wages paid during the first year and 50 percent of the first $10,000 during the second consecutive year of consecutive employment. " The Work Opportunity Tax Credit can save an employer up to $2,400 in federal taxes per employee. The tax credit is offered to employers as an incentive to hire people from specific target groups. Employers receive tax credits equal to 40 percent of qualified wages for a maximum allowable credit of $2,400 per employee that works more than 400 hours. There is no limit to the number of employees for which the employer can take credit. Work Supplementation or Grant Diversion offers the employer the Temporary Cash Benefits for a specified period as an incentive to hire. Florida's On-the-Job Training incentive enables employers to recoup up to 50 percent of'the;wages paid to the training "program participant (to offset training cost). There are additional state tax exemptions under the Wages Registry and benefits for Enterprise Zone businesses. How do you get the details and apply for tax incentives? To get connected to these bottom line enhancing incentives, small business owners and managers need only complete the following information and return it to the U.S, Small Business Administration, South Florida District Office, Attn. Thaddeus Hosley, 100 South Biscayne Boulevard, 7th Floor, Miami, Florida 33131-2011. Completing and returning the requested information gives SBA permission to forward your name to intermediaries and service providers near you who can answer your questions and help you com lete the a lication rocess.