Submitted By: Roberto Ellis
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Presentation By: Aubrey Hale
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Department: Growth Management
STAFF RECOMMENDATION (Motion Ready):
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Approve Amendment and Assignment Agreement to the Economic Investment Program/ Economic Development Incentive Grant Agreement with FedEx Ground Package System, Inc
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OCALA'S RELEVANT STRATEGIC GOALS:
Economic Hub
PROOF OF PUBLICATION:
N/A
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BACKGROUND: The City of Ocala (City) has established the Economic Investment Program (EIP) to create economic growth within the City's municipal limits, and the Ocala Electric Utility service territory, by selectively awarding grants to new or existing businesses that seek to locate or expand their business facilities.
On February 5, 2013, the City entered into an agreement with Marion County (County) and FedEx Ground Package System, Inc. (FedEx) providing certain incentives for FedEx to construct a facility and operate its business in the Commerce Park. The facility was completed in August 2016 at a cost of approximately $113 million. Since then FedEx has successfully operated its business at the location.
FedEx has informed the City and the County of its intention to merge with an affiliate company, Federal Express Corporation (Assignee). With the impending merger, FedEx wishes to assign all its rights and obligations under the EIP/EDFIG Agreement to the Assignee. The merger is expected to be completed on or about June 1, 2024.
FINDINGS AND CONCLUSIONS: Per Paragraph 12.17 of the EIP /EDFIG Agreement, "The Applicant may not assign any rights or obligations hereunder without the expressed written consent of Local Governments, which may be withheld or conditioned by Local Governments in their sole discretion." The attached Amendment and Assignment Agreement represents the parties' commitment to the terms and conditions of the EIP/EDFIG Agreement with the Assignee agreeing to perform all obligations, duties, and responsibilities. In addition to utility and ...
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