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 the Economic Investment Program Agreement with R & L Carriers, Inc.
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OCALA’S RELEVANT STRATEGIC GOALS:
Economic Hub, .
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
The Applicant aims to construct a 180-door terminal facility that will support its global transportation and logistics business. This development will be located within the City limits at 1050 NW 44th Ave (Parcel ID#: 21645-000-00), the Applicant owns the property. This project is expected to be completed by March 2023.
The City intends to provide incentives at the request of the Applicant, using an agreed combination of fee waivers and grant as the project is expected to have significant public benefit by contributing to the growth of local economy and providing quality employment opportunities. The Applicant has successfully financed and executed a previous project in the City. This facility has provided over 250 jobs within Ocala over the last 7 year, this was supported through a previous agreement with the City.
FINDINGS AND CONCLUSIONS:
The proposed facility will contain a new building with an approximate size of 125,000 sq. ft. at a cost of approximately $30 million including machinery and equipment. Upon completion of the project the Applicant will be required to hire and maintain 100 additional full-time jobs at an average annual salary of $54,860 over a three-year period.
The property currently offers little to the City in terms of ad valorem taxes as the land isn’t being occupied; an execution of this project will bring about significant increase in the revenue from the property.
FISCAL IMPACT:
Given the proposed project details, the City would anticipate making an investment of up to $300,000 for permit and review fees after the new facility receives a Certificate of Occupancy and documentation of all capital improvement expenses are received by the City.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
Legal review completed by Robert W. Batsel, Jr.
ALTERNATIVES:
Approve
Approve with changes
Deny
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SUPPORT MATERIALS:
1. Ocala Project Box EIP Agreement
2. Analysis of R&L Carriers