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 GTI Florida, LLC
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OCALA’S RELEVANT STRATEGIC GOALS:
Economic Hub.
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
GTI Florida, LLC is a subsidiary of Green Thumb Industries Inc. (GTI) a national cannabis consumer packaged goods company and retailer. Green Thumb manufactures and distributes a portfolio of branded cannabis products. The company also owns and operates rapidly growing national retail cannabis stores called RISE. GTI recognizes Florida as a strong market in which the company intends to further establish its presence.
GTI Florida, LLC, has requested the City Grant from Ocala Electric Utility (OEU) of up to a 20% rate reduction for five (5) years to be used for operation of their business. To facilitate this request, it is proposed that the City enter an Economic Development Program (EIP) Agreement with GTI, Florida, LLC as its business will contribute to economic diversity and further develop Ocala as an Economic Hub.
FINDINGS AND CONCLUSIONS:
GTI is located at 5420 NW 44th Avenue, Ocala, Florida; Marion (County Tax Parcel ID# 13538-002-00). The property was redeveloped. The structures that were on the site were demolished two new buildings totaling 130,000 square feet have been constructed. The estimated construction cost is $30 million.
Upon completion of the project the applicant will be required to provide at least 50 additional full-time jobs at an average annual salary of $54,000 within the first two years of the Agreement. This minimum employment requirement is to be maintained for three years after achievement.
The property falls within the Ocala Electric Utility service territory and, as such, the City’s primary benefit will be revenue received from electricity usage along with spinoff impacts to the local economy through job creation. The City will not benefit from ad valorem taxes as the property is not located within the City’s administrative boundary.
The agreement establishes the minimum duration of service and energy load that is to be maintained by the company. If approved, the agreement and Economic Development Incentive Rider (EDIR) will be effective from 2022 to 2027 contingent on performance.
FISCAL IMPACT:
The EDIR is available to qualifying businesses throughout the Ocala Electric Utility service territory pursuant to City Council Resolution 2015-49, which provides for a twenty (20) percent rate reduction in demand and usage charges as approved in Resolution 2015-49. The Growth Management Department and Ocala Electric Utility will monitor performance to ensure that requirements under the agreement are fulfilled and execution of the agreement is done in a fiscally responsible manner. The EDIR provides for penalties and claw back guidance upon default under the terms and conditions established.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
Legal review completed by City Attorney, Robert W. Batsel, Jr.
ALTERNATIVES:
• Approve
• Approve with changes
• Deny
• Table
SUPPORT MATERIALS:
1. Draft Economic Investment Program Agreement with GTI Florida, LLC