CITY COUNCIL AGENDA ITEM
Memo Date: March 13, 2024
Agenda Date: March 26, 2024
Prepared By: Samantha Senger, Director of Communication and Economic Development
Through: Stockton Whitten, City Manager
Requested Action:
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Approval of the 2023 AVT exemption for Walmart based on the fulfillment of all the requirements of the Ad Valorem Tax Abatement Economic Incentive Agreement by maintaining 239 jobs at an average annual wage above $42,421.
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BACKGROUND:
An Ad Valorem Tax Abatement Economic Development Incentive Agreement (AVT) was executed, on June 30, 2016, in which Wal-Mart Stores East, LP agreed to purchase approximately 270 acres of land in the City to develop a 460,000 square foot refrigerated warehouse and distribution center. The center was to create 239 jobs at an average annual wage of $42,421 by December 31, 2020 and generate approximately $96.2 million in new private capital investment ($84.2 million in building construction and $12 million in machinery and equipment), excluding land costs.
The AVT was approved for 40% ad valorem tax abatement for 5 years and a $2 million cash incentive. The AVT credits are estimated to total $1 million.
A condition of the ordinance granting the Ad Valorem Tax Abatement calls for the creation of 239 jobs with an average annual salary of at least $42,421 by December 31, 2020. As of December 31, 2020, the Walmart Regional Distribution Center had hired 239 employees. The average annualized wages for these employees was $49,346. Thus, Walmart qualified for the tax abatement for 2020 and has continued to meet all of the requirements of the AVT allowing them to receive tax abatements for 2021. The average salary for the 239 employees in FY 2022 was $64,873 and in FY 2023 was $61,487. FY 2023 is year 5 of the 5-year tax abatement program.
Walmart currently has 615 full and part-time employees of which approximately 23.9% of them have a Cocoa address. This is down from 688 full and part-time empl...
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