SUBJECT
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Approve Polk County Bonus Incentive (PCBI) Grant for Project Pomelo, an existing company in Lakeland. ($250,000 expense over seven years)
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DESCRIPTION
On February 16, 2005, the Board of County Commissioners approved two Polk County Incentive Programs, a Qualified Target Industry (QTI) Incentive and a Polk County Bonus Incentive (PCBI). The QTI Incentive provides for the County's participation in the State Tax Refund program. The stated "original" intent of the PCBI program was "to help offset the new road impact fees and to provide a more competitive posture for Polk County when competing on close deals."
In 2020, the Florida Legislature eliminated the State Qualified Target Industry (QTI) Tax Refund Program. If the program were still available, Project Pomelo would qualify for QTI based on its industry affiliation.
Project Pomelo, an existing Polk County company, is a local expansion of capacity within their existing facility in the City of Lakeland and plans to add 100 full-time jobs at 200% of the County's 2024 average wage ($103,176) to the Polk County economy. The company will invest approximately $71.1 million in real and tangible property to increase capacity.
Based on the current PCBI program guidelines which were approved by the Board via adoption of Resolution No. 2020-141, Project Pomelo would qualify for $5,000 per job created. Therefore, the company is eligible for a total incentive of $500,000.
Given that the Project seeks to locate within a municipality, Polk County would pay the PCBI at 50% of the award amount. A municipality may participate and provide the additional 50% match; however, a municipality need not participate for the company to receive the 50% County incentive. As such the total PCBI payment obligation for Polk County would be $250,000. The PCBI payment will be paid over a seven-year period.
The City of Lakeland has agreed to participate in the incentive program and provide the company with the remaining 50% of t...
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