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DaVita RX Economic Development Ad Valorem Tax Exemption Ordinance

DaVita RX Economic Development Ad Valorem Tax Exemption Ordinance. Public Hearing: Orange County Board of County Commissioners January 28, 2014. Background. Exemption authorized under Fla. Constitution Section 196.1995 Fla. Stat. after voter approval January 2012 – referendum approved

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DaVita RX Economic Development Ad Valorem Tax Exemption Ordinance

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  1. DaVita RX Economic Development Ad Valorem Tax Exemption Ordinance Public Hearing: Orange County Board of County Commissioners January 28, 2014

  2. Background • Exemption authorized under Fla. Constitution • Section 196.1995 Fla. Stat. after voter approval • January 2012 – referendum approved • February 2012 – BCC Ordinance 2012-05

  3. Eligible New Businesses 10+ Jobs: New full-time jobs with average wages higher than area average in manufacturing or “target industry business” 25+ Jobs: Creating 25 or more new full-time jobs with more than 50% sales outside of Florida; or 50+ Jobs: Office space established by a newly domiciled business housing 50 or more full-time employees separate from any other operation; or Enterprise/ Brownfield: Any business in Enterprise zone or Brownfield area that first begins operation on site separate from other commercial or industrial operation owned by the same business

  4. Eligible Expansions of Existing Business 10+ jobs: New full-time jobs with wages higher than area average in manufacturing or “Target industry business” 25 +Jobs: New full time jobs with more than 50% sales outside of Fla. and net increase in employment/output/sales of at least 10%; or Enterprise/ Brownfield: increases operations on site located within the same zone co-located with a commercial or industrial operation owned by the same business

  5. Eligible Property • Added Improvements to Real Property not already on tax roll • Tangible Personal Property not already on tax roll • Land not eligible

  6. Applicable Taxes Exemption applies to: • Ad valorem taxes levied countywide – (4.4347 mills) But not: • MSTU millage • City, school, or special district millage • Property taxes authorized by referendum Maximum total forgone revenues of $2,000,000 • Or higher amount approved by supermajority

  7. Application Process • Office of Economic Development • Property Appraiser • Input from any affected CRA • Additional information may be required • Exemption decision at sole & absolute discretion of the Board – no entitlement to exemption

  8. Exemption Ordinance • Public Hearing • Grant of Exemption conditioned upon signing an agreement • Annual reporting required • Monitoring: • Florida new hire form • UCT-6 • IRS Form 941

  9. Property Tax ExemptionBoard Guidelines*Lowest number is determining factor

  10. Project Overview • DaVita RX, LLC • Specialty Pharma • 186 New Jobs • 115% of the Average Wage in Orange County • $11,750,000 Capital lnvestment • Job Functions Include; Clinical, Management, Engineering, Production, Administration and Customer Service • QTI Adjustment – October, 2012

  11. Property Tax ExemptionBoard Guidelines*Lowest number is determining factor

  12. Recommendation 50% Exemption for 5 Years • Total Revenue Available to County for Current Fiscal Year - $374,409,907 • Estimate of Revenue Lost During Current Fiscal Year if Exemption is Granted - $25,679 • Estimate of Taxable Value Lost - $5,790,431

  13. Requested Action • Approval of an Ordinance of Orange County, FL relating to taxation; granting an economic development exemption from certain ad valorem taxation for DaVita RX, LLC • Approval of Economic Development Ad Valorem Tax Exemption Agreement between Orange County, FL and DaVita RX, LLC

  14. DaVita RX Economic Development Ad Valorem Tax Exemption Ordinance Public Hearing: Orange County Board of County Commissioners January 28, 2014

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