SUBJECT
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Public Hearing to consider adoption of an ordinance granting an Economic Development Ad Valorem Tax Exemption to an expanding business, US Baking Operations, Inc., and approval of a Performance Agreement with the company (Fiscal Impact Period 2028-2032)
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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 US BAKING OPERATIONS, INC., AN EXPANSION OF AN EXISTING 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 US BAKING OPERATIONS, INC.; PROVIDING FOR THE GRANT OF AN EXEMPTION FOR 5 YEARS AT 40 PERCENT; PROVIDING FOR A FINDING THAT THE COMPANY MEETS THE REQUIREMENTS OF SECTION 196.012 (15), FLORIDA STATUTES, (EXPANSION OF AN EXISTING 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 an existing business, US Baking Operations, Inc., seeking to expand its food manufacturing operations in Polk County. Included with the application was a letter of recommendation from the Lakeland Economic Development Council and the Central Florida Development Council and other required documentation showing that the company intends to create at least 11 new full-time jobs in Polk County paying an average annual wage of at least $74,370, which is more than 125% of the County’s 2026 average annual wage. The Company also plans to invest $3.6 million in real property improvements, and $6.7 million in tangible equipment, to expand and operate an additional 40,000 square foot facility in Lakeland, located on the following parcel: 23-28-19-087503-000042.
The application was sent to the Property Appraiser for review, and the Property Appraiser has submitted his report dated October 6, 2026. 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 40% exemption for 5 years.
RECOMMENDATION
(1) Approve and adopt the Economic Development Ad Valorem Tax Exemption for US Baking Operations, 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 $33,595 in ad valorem taxes will be exempted for the five-year period 2028 through 2032 if the exemption is approved. The County would gain the remaining 60% of value, estimated to be $50,392 as new ad valorem tax revenue during that time. This represents an estimated 168% increase in anticipated tax revenue. Additionally, new annual tax revenues gained for the School Board, MSTU’s and SWFWMD are estimated to be $66,963, $10,395, and $2,318, respectively.
CONTACT INFORMATION
Tabitha Alpers
AVTE Administrator
863.534.6452
Sean Malott
President/CEO
Central Florida Development Council
863.937.4430