Broward County Commission Regular Meeting
Director's Name: Sandy-Michael McDonald
Department: Economic and Small Business Development
Information
Requested Action
title
A. MOTION TO ADOPT Resolution No. 2021-492 approving Project Sunshine for a Broward County Direct Cash/Job Creation Incentive Grant pursuant to Section 9½-52, Broward County Code of Ordinances (“Code”), in the amount of $50,000 for Fiscal Years 2022 through 2029, collectively, based on the creation of 100 new, high-wage/high-skill jobs and an estimated capital investment of $2,100,000.
ACTION: (T-10:56 AM) Approved.
VOTE: 9-0.
B. MOTION TO AUTHORIZE County Administrator, or designee, to take any administrative and budgetary actions and execute all documents necessary to effectuate and administer Project Sunshine’s participation in the Broward County Direct Cash/Job Creation Incentive Grant Program pursuant to Section 9½-52 of the Code, for Fiscal Years 2022 through 2029, provided the County’s total financial commitment does not exceed $50,000 and subject to review for legal sufficiency by the Office of the County Attorney, and to effectuate any future non-monetary changes to the job creation schedule for Project Sunshine.
ACTION: (T-10:56 AM) Approved.
VOTE: 9-0.
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Why Action is Necessary
A. Board approval is required for participation in any County economic incentive program pursuant to Section 19.37.1, Broward County Administrative Code.
B. Board approval is required to authorize the County Administrator, or designee, to take any administrative and budgetary actions and execute any documents necessary to implement and administer the approved economic development incentives.
What Action Accomplishes
A. This action will allow the Office of Economic and Small Business Development (“OESBD”) to offer economic incentives to Project Sunshine to facilitate its relocation to Broward County.
B. This action authorizes the County Administrator, or designee, to take any administrative and budgetary actions and execute all documents necessary to effectuate and administer Project Sunshine’s participation in the Broward County Direct Cash/Job Creation Incentive Grant Program provided there is no increase in the County’s total financial commitment and subject to review for legal sufficiency by the Office of the County Attorney.
Is this Action Goal Related
Yes
Previous Action Taken
No previous action taken.
Summary Explanation/Background
THE OFFICE OF ECONOMIC AND SMALL BUSINESS DEVELOPMENT RECOMMENDS APPROVAL OF THE ABOVE MOTIONS.
This item supports the Value of the Board of County Commissioners (the “Board”): “Ensuring economic opportunities for Broward’s diverse population and businesses” and the Board’s Goal to “Attract and retain all types of business, especially high-wage industries that offer employee benefits, through partnerships with the Alliance, chambers of commerce, colleges and universities, CareerSource, and any other available avenues.”
Project Sunshine is a cruise line industry company and is currently headquartered outside of the state of Florida. The company is considering relocating its current headquarters to Broward County, and this relocation would result in the creation of 100 new high-wage/high-skill jobs. A location in Indiana is also under consideration for this project.
If Project Sunshine chooses to relocate its operations to Broward County, company officials propose renovation of a corporate headquarters facility in the City of Fort Lauderdale with an estimated capital investment of $2,100,000. The company’s new job average annual wage is $62,003. The average annual wage amount equals 115% of the County’s average private sector annual wage. The Broward County Direct Cash/Job Creation Program is available for companies, on a performance-driven basis, that create high-wage jobs in targeted, high value-added industries.
As an approved participant in the Broward County Direct Cash/Job Creation Incentive Program, Project Sunshine will continue to provide cruise line industry services to meet growing industry demand. As a corporate headquarters project and a cruise line industry company, Project Sunshine is part of a Broward County Targeted Industry group and will enhance the County’s Targeted Industry strategy. Project Sunshine’s business model aligns with the Board’s vision of “Ensuring economic opportunities for Broward’s diverse population and businesses.”
In an effort to ensure inclusion of Broward County’s certified small businesses in opportunities that may be created as a result of this project, the Greater Fort Lauderdale Alliance (“Alliance”) has committed to: (1) distributing information on the County’s small business program to Project Sunshine; (2) providing Project Sunshine with information on accessing the County’s small business database; (3) assessing the needs of Project Sunshine as the project develops; and (4) communicating to the OESBD any potential opportunities for County-certified small businesses to meet those needs.
All recommended incentives are pay for performance incentives calculated on the basis of $1,000 per qualifying job ($500 paid by the County and $500 paid by the City of Fort Lauderdale), and subject to the condition precedent that the City of Fort Lauderdale also commit for the same period to appropriate a total required direct cash incentive in the amount of $50,000.
Based on the creation of 100 high-wage/high-skill jobs and the projected capital investment, the total proposed incentive amount (pending final approvals) is as follows:
Direct Cash/Job Creation Incentive Grant - County $50,000
Direct Cash Incentive - City $50,000
Total Proposed Incentive Amount - $100,000
Source of Additional Information
Sandy-Michael McDonald, Director 954-357-5615
Fiscal Impact
Fiscal Impact/Cost Summary
The total cost to Broward County would not exceed $50,000 (calculated at $500 per qualifying job). Incentive payments would be paid from the County’s General Fund and correlate to revenues generated by Project Sunshine’s relocation to Broward County.