SUBJECT
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Public Hearing to consider adoption of an ordinance amending Ordinance 21-006, the Economic Development Ad Valorem Tax Exemption for Agro-Iron, LLC.
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DESCRIPTION
On January 19, 2021, the Board adopted Ordinance No. 21-006 establishing an exemption from certain ad valorem taxation for an expanding business, Agro-Iron, LLC, in Polk County. The County and the company also entered into a related Ad Valorem Tax Exemption Performance Agreement on the same date to ensure the company’s fulfillment of its obligations under the Ordinance. The Exemption Period, as defined in both the Ordinance and the Performance Agreement, was to run for seven (7) years, from Tax Year 2026 through Tax Year 2032.
Due to unforeseen delays caused by significant change in Florida’s citrus industry, Agro-Iron, LLC has requested that its Exemption Period be delayed by two (2) years, to commence in Tax Year 2028 and run through Tax Year 2034. Because of the length of time that has passed since the County’s initial approval of the Agro-Iron Exemption in 2021 and the increase to the reported average annual wage for Polk County since that time, the company has agreed to increase the average annual wage required to be paid under its Performance Agreement with the County to $63,978, which is 115% of the 2026 reported average annual wage for Polk County. Said delay to the Exemption Period and increase to the wage requirement is reflected in the proposed First Amendment to Performance Agreement between the County and the Company.
A public hearing is required to consider adoption of an ordinance amending Ordinance 21-006 and the related First Amendment to Performance Agreement.
RECOMMENDATION
(1) Adopt ordinance amending Ordinance 21-006, the Economic Development Ad Valorem Tax Exemption for Agro-Iron, LLC, and (2) approve, and authorize the Chair to execute, the related First Amendment to the Performance Agreement between the parties.
FISCAL IMPACT
None.
CONTACT INFORMATION
Sandra Howard
Deputy County Attorney
863-534-6437