SUBJECT
title
Authorize collection and recovery of taxes previously exempted for Dispenser Packaging, Inc. pursuant to Ordinance 2019-054, as amended.
body
DESCRIPTION
On August 20, 2019, the Board adopted Ordinance No. 2019-054 establishing a 50% exemption from certain ad valorem taxation (the "Exemption") for an expanding business, Dispenser Packaging, Inc. On April 7, 2020, the Board adopted Ordinance No. 2020-018 amending the physical location of the Facility and the start date of the Exemption Period, both as defined in Ord. 2019-054.
The Exemption and the related Performance Agreement with Dispenser Packaging, Inc. both expired on December 31, 2023. However, pursuant to Section 2.b of the Performance Agreement, the company was required to create, by the end of the third year of the Exemption Period (2023), at least 25 new full-time jobs paying an average annual wage equal to or in excess of 100% of the 2019 average annual wage for Polk County ($41,047).
Based on the audit results of DPI's performance and contractual obligations, the company created 16 jobs by the end of 2023, but only 6 were full-time, and the average wage was $24,836. Pursuant to Section 5 of the Performance Agreement, which expressly survives expiration, if the company fails to satisfy the conditions of the agreement, including failing to create the required jobs, the County is entitled to revoke the Exemption, or take such other action as it deems appropriate, and the company shall be subject to payment of all taxes exempted for any years within the Exemption Period that the company was not entitled to receive the Exemption.
Because Ordinance 2019-054, as amended, has expired, no amending ordinance to revoke the Exemption is required. Pursuant to Section 5.a and 5.c of the Performance Agreement, the County is authorized to seek recovery, collection and payment of the taxes previously exempted for Dispenser Packaging, Inc. from January 1, 2021 through December 31, 2023, wh...
Click here for full text