SUBJECT
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SET PUBLIC HEARING to consider adoption of an ordinance amending Ordinance 18-027, as previously amended by Ord. 2019-031, the Economic Development Ad Valorem Tax Exemption for Exel, Inc. d/b/a DHL Supply Chain (USA) (Suggested hearing date is May 21, 2024 at 9:00 a.m.)
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DESCRIPTION
On May 15, 2018, the Board adopted Ordinance No. 2018-027 establishing a 75% exemption from certain ad valorem taxation (the “Exemption”) for a new business, Exel, Inc. d/b/a DHL Supply Chain (USA). On May 21, 2019, the Board adopted Ordinance No. 2019-031 amending the start date of the Exemption Period, as defined in Ord. 2018-027, so that the DHL Exemption would commence in Tax Year 2020 and conclude at the end of Tax Year 2024.
In accordance with the County’s Economic Development Ad Valorem Tax Exemption ordinance in effect at the time (Ord. 2013-017, as amended), the DHL Exemption was based, in part, on DHL’s intent to invest at least $5 million in capital in Polk County and to create at least 100 new full-time jobs in the County paying an average annual wage of at least 115% of the County’s 2018 average annual wage. While DHL exceeded the minimum capital investment requirement, the company has been unable to consistently satisfy the full-time job creation and average annual wage criteria as required under Ord. 2018-027, as amended. Accordingly, and based on DHL’s creation of at least 25 full-time jobs meeting the average wage requirement, the AVTE Program Administrator, along with the Central Florida Development Council, recommends that DHL’s Exemption be reduced from 75% to 50% of applicable ad valorem taxes for the remaining year of the Exemption Period. This recommendation is consistent with the Board’s AVTE Guidelines in place at the time of the initial Exemption approval, as shown below.
QUALIFIED TARGETED INDUSTRY (QTI)
|
Jobs |
Average Wage |
Years |
Exemption |
|
10 |
115% + $5 million Capital Investment |
5 |
25% |
|
25 |
115% + $5 million Capital Investment |
5 |
50% |
|
100 |
115% + $5 million Capital Investment |
5 |
75% |
|
300 |
115% + $5 million Capital Investment |
5 |
100% |
A public hearing is required to consider adoption of an ordinance amending Ordinance 18-027, as previously amended, to reduce the DHL Exemption percentage from 75% to 50%.
RECOMMENDATION
Set a public hearing on May 21, 2024 at 9:00 a.m. for purposes of considering adoption of an ordinance amending Ordinance 18-027, as previously amended by Ord. 2019-031, to reduce the DHL Exemption percentage from 75% to 50% of applicable ad valorem tax for the remaining year of the Exemption Period.
FISCAL IMPACT
No fiscal impact will be realized by setting a public hearing.
CONTACT INFORMATION
Sandra Howard
Deputy County Attorney
(863) 534-6437