Broward County Commission Regular Meeting
Director's Name: Sandy-Michael McDonald
Department: Economic and Small Business Development
Information
Requested Action
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A. MOTION TO ADOPT Resolution No. 2021-510 approving Project Play 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 $112,500 for Fiscal Years 2022 through 2029, collectively, based on the creation of 150 new, high-wage/high-skill jobs and an estimated capital investment of $8,000,000.
ACTION: (T-10:22 AM) Approved.
VOTE: 9-0. Commissioner Holness voted in the affirmative telephonically.
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 Play’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, including to effectuate any future nonmonetary changes to the job creation schedule for Project Play, provided the County’s total financial commitment does not exceed $112,500 and subject to review for legal sufficiency by the Office of the County Attorney.
ACTION: (T-10:22 AM) Approved.
VOTE: 9-0. Commissioner Holness voted in the affirmative telephonically.
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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 (the “OESBD”) to offer economic incentives to Project Play to facilitate its expansion within 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 Play’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 Play is a toy manufacturing and wholesaling company and is currently headquartered in Broward County. The company is considering expanding its corporate headquarters, and this expansion would result in the creation of 150 new high-wage/high-skill jobs. Locations in California, Pennsylvania, Arkansas, and Washington are also under consideration for this project.
If Project Play chooses to expand its operations in Broward County, company officials propose renovation of a corporate headquarters facility in the City of Plantation with an estimated capital investment of $8,000,000. The new job average annual wage is $80,874. The average wage amount equals 150% 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 Play will continue to provide manufacturing and wholesaling of toys. As a corporate headquarters project, Project Play is part of a Broward County Targeted Industry group and will enhance the County’s Targeted Industry strategy. Project Play’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 Play; (2) providing Project Play with information on accessing the County’s small business database; (3) assessing the needs of Project Play 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 $1,500 per qualifying job ($750 paid by the County and $750 paid by the City of Plantation), and subject to the condition precedent that the City of Plantation also commit for the same period to appropriate a total required direct cash incentive in the amount of $112,500.
Based on the creation of 150 high-wage/high-skill jobs and the projected capital investment, the total proposed incentive amount (pending final approval) is as follows:
Direct Cash/Job Creation Incentive Grant - County $112,500
Direct Cash Incentive - City $112,500
Total Proposed Incentive Amount - $225,000
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 $112,500 (calculated at $750 per qualifying job). Incentive payments would be paid from the County’s General Fund and correlate to revenues generated by Project Play’s expansion in Broward County.