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, Fort Meade DC, LLC, 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 FORT MEADE DC, LLC, 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 FORT MEADE DC, LLC; PROVIDING FOR THE GRANT OF AN EXEMPTION FOR 10 YEARS AT 90 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, Fort Meade DC, LLC, 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 create at least 50 new full-time jobs in Polk County paying an average annual wage of at least $107,000, which is more than 200% of the County’s 2025 average annual wage. The Company also plans to invest $1.2 billion in real property improvements, and $1.64 billion in tangible equipment, to construct and operate a 1,925,000 square foot data center facility in Fort Meade, located on the following parcels: 25-31-08-000000-022010, 25-31-09-000000-024010, 25-31-17-000000-011020, 25-31-17-000000-022010, 25-31-16-000000-022010, 25-31-21-000000-011010, 25-31-16-000000-012040, and 25-31-16-000000-012060.
The application was sent to the Property Appraiser for review, and the Property Appraiser has submitted his report dated October 3, 2025. 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 90% exemption for 10 years.
RECOMMENDATION
(1) Approve and adopt the Economic Development Ad Valorem Tax Exemption for Fort Meade DC, LLC; 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 $14,837,536 in ad valorem taxes will be lost each year of the ten-year exemption period (2029 through 2038) if the exemption is approved. The County would recognize the remaining 10% of value as new ad valorem tax revenue during that time ($1,648,615). Additionally, annual new tax revenues gained for the School Board, MSTU’s and SWFWMD are estimated to be as follows:
School Board: $13,159,501
MSTU: $2,040,518
SWFWMD: $474,348
CONTACT INFORMATION
Sandra Howard
Deputy County Attorney
863.534.6437
Sean Malott
President/CEO
Central Florida Development Council
863.937.4430