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 WINCO MFG, LLC, at 5516 SW First Lane in an amount not to exceed $60,000
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OCALA’S RELEVANT STRATEGIC GOALS:
Economic Hub.
PROOF OF PUBLICATION:
N/A
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BACKGROUND:
WINCO MFG., LLC (WINCO) has applied for incentives through the Economic Investment Program (EIP). The company has started the expansion of their facilities to meet increasing customer demand. WINCO designs and manufactures a wide range of clinical recliners, patient chairs, treatment tables, privacy screens, phlebotomy chairs, and stretcher-chairs. The company makes its own subcomponents and assembles the final product. The company sees central Florida and Ocala as a distribution hub which complements the company’s objective of being the market leading manufacturer and provider of medical seating. The company has been enhancing the patient and caregiver experience for over 75 years, meeting customer needs locally, regionally, and internationally.
FINDINGS AND CONCLUSIONS:
The City has provided financial assistance to this company in the past. In 2004, WINCO was the recipient of a grant through the Economic Improvement Fund (EIF). That grant provided up to $20,000.00 as a partial reimbursement for improvements made to their facility and for providing jobs. At the time, WINCO provided five new jobs. The company has experienced steady growth over the years and was recently acquired by Champion Manufacturing, Inc. There are currently 153 employees working at the company.
The company is located within the city limits at 5516 SW First Lane. The existing facility sits on approximately 4.7 acres (Parcel #2318-006-008). The expansion will be built on the southern parcel which is approximately 2.8 acres in size. (Parcel #2318-006-007). WINCO will invest $4,900,000.00 in building the expansion and invest an additional $800,000.00 on fabrication and finishing machinery and equipment. The plans for the project have been approved by the City and on-site activities have commenced. The 55,000 square foot facility will include additional spaces for storage to alleviate supply chain challenges, additional assembly lines and subcomponent working stations. Daily production will triple after the project is completed and fully staffed. WINCO will provide 70 new jobs at competitive salaries, adding approximately 35 jobs within the first year of project completion. Construction is scheduled to be completed by April 2023.
Staff recommends that the City enter into an agreement with WINCO to provide an incentive grant in the amount of $60,000. The project promotes a prosperous economy in the City of Ocala. The estimated payback period on this investment is approximately 0.75 years. The agreement sets out the requirements and conditions upon which the grant will be paid.
FISCAL IMPACT:
The City will provide a one-time grant totaling $60,000.00 upon completion of the project and verification of development costs. The grant payment will be budgeted in FY23 in account 674-099-999-559-81-82010.
PROCUREMENT REVIEW:
N/A
LEGAL REVIEW:
This agreement is subject to legal review for form and legality by City Attorney Robert W. Batsel Jr.
ALTERNATIVE:
Approve with changes
Deny
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