Broward County Commission Regular Meeting
Director's Name: Joseph Morris
Department: Port Everglades Division: Business Development
Information
Requested Action
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MOTION TO ADOPT Resolution directing the County Administrator to publish Notice of Public Hearing to be held on February 3, 2026, at 10:00 a.m., in Room 422 of Governmental Center East, to consider adoption of a proposed Resolution Amending the Broward County Administrative Code, the title of which is as follows:
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF BROWARD COUNTY, FLORIDA, PERTAINING TO PORT EVERGLADES FOREIGN-TRADE ZONE NO. 25, TARIFF NO. 5 (“TARIFF”); AMENDING SECTION 42.29 OF THE BROWARD COUNTY ADMINISTRATIVE CODE (“ADMINISTRATIVE CODE”); AMENDING FTZ OPERATOR FEES; AND PROVIDING FOR SEVERABILITY, INCLUSION IN THE ADMINISTRATIVE CODE, AND AN EFFECTIVE DATE.
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Why Action is Necessary
The Broward County Charter requires the posting of notice and a public hearing for adoption of amendments to the Broward County Administrative Code.
What Action Accomplishes
Enables the setting of a public hearing during which the Broward County Board of County Commissioners may consider adopting the proposed Resolution amending the Broward County Administrative Code.
Goal Related Icon(s)
☒County Commission
☐Go Green
☐MAP Broward
Previous Action Taken
None
Summary Explanation/Background
THE PORT EVERGLADES DEPARTMENT RECOMMENDS APPROVAL.
This action supports the Broward County Board of County Commissioners’ (“Board”) Value of “Building partnerships and working collaboratively with others to meet shared objectives,” and the Goal of “Ensuring economic opportunities and a sustainable economy, with an emphasis on Broward’s lower and middle class.”
The Board is the Grantee of Foreign-Trade Zone (“FTZ”) No. 25, as designated by the Foreign-Trade Zones Board (“FTZ Board”) within the U.S. Department of Commerce, and also serves as an Operator at certain FTZ No. 25 sites. Tariff No. 5 (“Tariff”) establishes the rules, regulations, and fees governing the use of FTZ No. 25, except where such matters are otherwise addressed in separate contractual agreements with FTZ No. 25 users. As required by the FTZ Board, the Tariff is published online. Staff is proposing revisions to the Tariff that include adjustments to certain Tariff rates as further described below.
For context, under the FTZ program, a “Grantee” is the public or quasi-public entity authorized by the FTZ Board to establish and administer an FTZ and to sponsor companies seeking FTZ designation, while an “Operator” is the entity approved to manage the day-to-day operations of an activated FTZ site in compliance with U.S. Customs and Border Protection requirements. While Broward County serves both as the Grantee and as an Operator of FTZ No. 25, multiple independent FTZ Operators are authorized to operate within FTZ No. 25.
Considering this multi-Operator structure, staff is proposing targeted adjustments to the FTZ fee structure to encourage additional Operators to participate in FTZ No. 25 and to strengthen the program’s overall competitiveness.
The proposed Tariff revisions include targeted fee adjustments intended to reduce barriers to entry and enhance the competitiveness of the County’s FTZ No. 25 program relative to other FTZs in the region. These revisions focus primarily on reducing certain FTZ Operator fees while maintaining the County’s ability to recover necessary administrative and operational costs associated with administering the FTZ program.
Specifically, the proposed changes revise the FTZ Operator fee structure as follows:
• Application Fee: Reduced from $5,150 to $2,500
• Annual Fee (Operators without production authority): Reduced from $12,360 to $7,000
• Annual Fee (Operators with production authority): Reduced from $30,385 to $9,000
• Activation Fee: Reduced from $5,150 to $4,000
The revised fee structure is intended to be competitive with comparable South Florida Foreign-Trade Zones, reduce barriers to entry for new FTZ Operators, and support the County’s continued recovery of the administrative and operational costs associated with FTZ administration (see Exhibit 4).
All proposed revisions to the Tariff would become effective upon approval by the Board.
Source of Additional Information
Jorge A. Hernández, Director, Business Development Division, Port Everglades Department; (954) 468-3501.
Krystal Permanan, FTZ No. 25 Manager, Business Development Division, Port Everglades Department; (954) 468-3723.
Fiscal Impact
Fiscal Impact/Cost Summary
The proposed fee reduction is intended to attract additional FTZ Operators and increase participation over time; based on the current participation of two FTZ Operators subject to the annual FTZ Operator fee, the reduced annual rate would result in an estimated short-term revenue decrease of approximately $10,720 per year, which staff anticipates may be offset through additional FTZ Operator participation and program utilization.