SUBJECT
title
Economic Development Impact Fee Mitigation Agreement with Novaphos Development, LLC (estimated $10,206 impact fee revenue loss)
body
DESCRIPTION
Section 2.08 of Polk County’s Impact Fee Ordinance (No. 19-056, as amended), along with Resolution 19-129, sets forth the County’s Economic Development Impact Fee Mitigation Program, allowing certain Qualified Target Industry Businesses or Owners to mitigate any real or perceived disadvantage occurring from the imposition of Impact Fees.
Pursuant to the Ordinance, Novaphos Development, LLC, submitted an application to the County Manager requesting Impact Fee mitigation on the planned construction of a new facility to be located at or near 3220 State Road 630 West in Fort Meade. The company intends to add 28 new full-time jobs in Polk County paying an average wage of at least 115% of the County’s average annual wage. The Company will make an anticipated $32 million capital investment in Polk County in real property improvements and equipment. The County Manager has reviewed the application and determined that the planned Capital Facilities Impact Construction meets the requirements for mitigation as set forth in the Ordinance.
Without mitigation, County impact fees in the estimated amount of $29,160 would be due on the approximately 40,000 square foot manufacturing and processing facility. The company qualifies for an impact fee mitigation amount of 35%, which equates to an estimated mitigation amount of $10,206.
Based on the above, the Project’s total estimated impact fee amount due is $18,954. As required under the Ordinance, the company shall either provide an irrevocable letter of credit, or authorize the filing of a County lien on the property, for a period of seven years, to ensure payment of the mitigated Impact Fees in the event that the Capital Facilities Impact Construction no longer qualifies for the economic development Impact Fee mitigation at any time during the seven year period immediately following the issuance of a certificate of occupancy.
RECOMMENDATION
Approve the Economic Development Impact Fee Mitigation Agreement with Novaphos Development, LLC.
FISCAL IMPACT
Based on the planned square footage of the new construction and the County’s 2023 impact fee rates, it is estimated that $10,206 of impact fee revenue will be lost if the mitigation is approved.
CONTACT INFORMATION
Sandra Howard, Deputy County Attorney
863-534-6437