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 an Economic Investment Program Agreement with Interstate Trailer Plus, LLC providing incentives in an amount not to exceed $300,000
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OCALA’S RELEVANT STRATEGIC GOALS:
Economic Hub.
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
Interstate Trailer Plus, LLC (“Applicant”) is a subsidiary of the Interstate Group, LLC located in Nampha, Idaho. Interstate Trailer Plus, LLC applied to the City’s Economic Development Program (EIP) on July 29, 2022, however, zoning change was required. The company is proposing to develop an indoor trailer manufacturing facility along with ancillary outdoor storage for completed trailers located along NE 19th Avenue, Ocala, Florida (parcel #26500-002-00). The proposed use required a zoning change to accommodate the outdoor storage component of the use. The applicant submitted a rezoning application and went through the public hearing process. The zoning change was approved on November 15, 2022.
Interstate Group, LLC, established in 1995, is a leader in the manufacturing and sale of enclosed cargo trailers with over 38 locations across the nation. The company plans to develop a location in Ocala to service its Florida market.
FINDINGS AND CONCLUSIONS:
The Applicant requested that the property be rezoned to better suit the proposed development. The Planning & Zoning Commission recommended approval of the rezoning Case ZON22-44951 on October 10, 2022, and on November 15, 2022 City Council Adopted Ordinace 2023-11 ratifying a rezoning of approximately 13.17 acres from M-1, Light Industrial, to M-2, Medium Industrial.
Interstate will construct a 112,500 S.F. manufacturing facility and retail store at a cost no less than $6.6 million dollars by December 2024. The applicant submitted a conceptual plan to the City for review. The proposed location is undeveloped and successful completion of this project will bring a significant benefit to the community. The company will provide a minimum of 100 Full-Time Equivalent (FTE) jobs at an average annual wage of $55,000; the proposed wage exceeds 115% of the average annual wage in Marion County. Approximately 33 jobs are required to be added within the first year of project completion.
The Financial Review Committee (FRC) met on December 1, 2022, to review financial information provided by the Applicant in relation to the project. The Committee determined that the Applicant has the financial capability to develop the project; a memo from the Committee is attached.
Staff recommends entering an agreement to provide financial incentives of up to $3000 per job in the form of a grant, not to exceed $300,000. The attached agreement sets out Applicant and City requirements along with the deadlines to meet respective obligations. The City will see a net positive return on the proposed investment through increased ad valorem tax revenue and electricity revenue as the company is located within the Ocala Electric Utility (OEU) territory within 5 years.
FISCAL IMPACT:
The City grant will be paid in two installments;
• the first payment of up to $150,000 is due following satisfactory completion of the project; and
• the second payment of up to $150,000 is due within 12 months after the Applicant provides 33 FTEs (i.e. 1/3 of the proposed jobs).
Funds for the project will be budgeted in FY24 in account #674-099-999-559-81-82010.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
This Agreement will be reviewed and approved for form and legality by City Attorney, William E. Sexton
ALTERNATIVE:
• Approve with Changes
• Table
• Deny