SUBJECT
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Public Hearing to consider adoption of an ordinance granting an Economic Development Ad Valorem Tax Exemption to a new business, D.R. Horton, Inc., and approval of a Performance Agreement with the company.
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DESCRIPTION
The Board is asked to consider adoption of an ordinance, the title of which is:
AN ORDINANCE OF POLK COUNTY, FLORIDA, ESTABLISHING AN EXEMPTION FROM CERTAIN AD VALOREM TAXATION FOR D.R. HORTON, INC., A NEW BUSINESS; PROVIDING FINDINGS OF FACT; PROVIDING A TITLE; PROVIDING THE TOTAL AMOUNT OF REVENUE AVAILABLE TO THE COUNTY FROM AD VALOREM TAX SOURCES FOR THE CURRENT FISCAL YEAR, THE TOTAL AMOUNT OF REVENUE LOST TO THE COUNTY FOR THE CURRENT FISCAL YEAR BY VIRTUE OF ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTIONS CURRENTLY IN EFFECT, AND THE ESTIMATED REVENUE LOSS TO THE COUNTY FOR THE CURRENT FISCAL YEAR ATTRIBUTABLE TO THE EXEMPTION FOR D.R. HORTON, INC.; PROVIDING FOR THE GRANT OF AN EXEMPTION FOR 8 YEARS AT 65 PERCENT; PROVIDING FOR A FINDING THAT THE COMPANY MEETS THE REQUIREMENTS OF SECTION 196.012 (14), FLORIDA STATUTES, (NEW BUSINESS); PROVIDING FOR CONTINUING PERFORMANCE; PROVIDING FOR APPLICABILITY; PROVIDING FOR REVIEW; PROVIDING FOR EXPIRATION; PROVIDING FOR SEVERABILITY; PROVIDING AN EFFECTIVE DATE.
Pursuant to Polk County Ordinance 2022-069, the County received an application for an Economic Development Ad Valorem Tax Exemption from a new business, D.R. Horton, Inc., seeking to locate in Polk County. Included with the application was a letter of recommendation from the Central Florida Development Council and other required documentation showing that the company intends to add 117 new full-time jobs in Polk County paying an average wage of $138,000, which is more than 200% of the County’s 2023 average annual wage. The Company also intends to invest approximately $15.9 million in the construction of a 40,000 square foot office facility to support its new Orlando West Division Headquarters, along with the purchase of related equipment, located on Osceola Polk Line Road in Davenport, Florida.
The application was sent to the Property Appraiser for review, and the Property Appraiser has submitted her report dated January 23, 2024. As required by statute and the ordinance, a performance agreement is required to ensure that the company fulfills all of its obligations. Based on the Board’s adopted policy guidelines for economic development ad valorem tax exemptions, the Company qualifies for a 65% exemption for 8 years.
RECOMMENDATION
(1) Approve and adopt the Economic Development Ad Valorem Tax Exemption for D.R. Horton, Inc.; and (2) approve and execute the Ad Valorem Tax Exemption Performance Agreement between the County and the company.
FISCAL IMPACT
Based on the Property Appraiser’s Report, it is estimated that $49,535 in ad valorem taxes will be lost each year of the eight-year exemption period (2025 through 2032) if the exemption is approved. The County would recognize new ad valorem tax revenue of $26,673 during that time, representing the remaining 35% of value. Additionally, annual new tax revenues gained for the School Board, MSTU’s and SWFMD are estimated to be over $73,000, collectively.
CONTACT INFORMATION
Sandra Howard
Deputy County Attorney
863-534-6437