CITY COUNCIL AGENDA ITEM
Memo Date: July 3, 2024
Agenda Date: July 23, 2024
Prepared By: Samantha Senger, Director of Communication and Economic Development
Through: Stockton Whitten, City Manager
Requested Action:
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Approve the first reading of Ordinance 10-2024 providing for the Cocoa Ad Valorem Tax Abatement Program Extension to appear on the referendum ballot extending the program for an additional ten (10) years.End
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BACKGROUND:
Consistent with Section 196.1995, Florida Statutes, on November 8, 1995, Cocoa voters authorized an Economic Development Ad Valorem Tax Abatement Program. An Economic Development Ad Valorem Tax Abatement Program is designed to allow communities to offer tax incentives, in the form of abatements, to induce relocating companies, of certain qualified industries, to locate within the City of Cocoa. Following the authorization by Cocoa voters, City Council approved Resolution No. 96-24, providing a general procedure for granting Economic Development Ad Valorem Tax Abatements. On November 8, 2005, Cocoa voters subsequently authorized City Council to extend the program for another ten (10) years. Then in November 2014, Cocoa Voters once again authorized City Council to extend the program for another ten (10) years.
STRATEGIC PLAN CONNECTION:
Economic and Community Development - Maintain and attract new industry, jobs and investment through targeted marketing efforts, data collection and maintenance.
BUDGETARY IMPACT:
There is no direct budgetary impact at this time. Each request for the program would need to make application, qualify, and be brought back before City Council for approval.
PREVIOUS ACTION:
Referendum ballot was held on November 8, 1995, whereby the citizens of Cocoa by majority vote authorized the City Council of the City of Cocoa to consider granting economic development ad valorem tax abatements to new businesses and expansions of existing businesses.
A duly authorized referendum ballot was held on November 8, 2005, whereby such authority was renewed for an additional ten (10) year period pursuant to the majority vote of the citizens of Cocoa.
To date, the City Council has authorized nine ad valorem tax abatements to the following businesses:
1. RMD Americas, LLC Ordinance No. 24-2005 dated 9/13/2005 authorizing three (3) years exemption at 60% per year.
2. Guardian Ignition Interlock Mfg. Ordinance No. 25-2006 dated 6/27/2006 authorizing two (2) years exemption at 50% per year.
3. Premium Marine, Inc. Ordinance No. 31-2006 dated 9/26/2006 authorizing three (3) years exemption at 60% per year. (Company decided not to use the exemption.)
4. Guardian Ignition Interlock Mfg. Phase II Ordinance No. 20-2008 dated 8/28/2008 authorizing two (2) years at 50% per year.
5. GENO, LLC Phase I and Phase II Ordinance No. 01-2009 dated 01/27/2009 authorizing three (3) years at 60% for each phase.
6. Florida Research Instruments, Inc. Ordinance No. 03-2011 dated 02/22/2011 authorizing eight (8) years at 80% per year. (Because the company was unable to maintain eligibility, it no longer qualified for exemptions under the program guidelines, and therefore never received one exemption.)
7. Paragon Plastics, Inc. (PROJECT BOAT) Ordinance No. 17-2011 date 11/8/2011 authorizing six (6) years at 60% per year.
8. Diamondback CNC, LLC Ordinance No. 08-2012 dated 06/12/2012 authorizing eight (8) years at 80% per year.
9. Walmart, Ordinance No. 12-2016 on May 24, 2016 authorizing five (5) years at 40% per year.
RECOMMENDED MOTION:
Recommendation
Approve the first reading of Ordinance 10-2024 providing for the Cocoa Ad Valorem Tax Abatement Program Extension to appear on the referendum ballot extending the program for an additional ten (10) years.