Agenda Item
#:51\-\
PALM BEACH COUNTY
BOARD OF COUNTY COMMISSIONERS
AGENDA ITEM SUMMARY
Meeting Date:
March 12, 2024
[ ] Consent
[X]
Regular
[ ] Ordinance
[ ] Public Hearing
Department:
Housing and Economic Development
I.
EXECUTIVE BRIEF
Motion and Title: Staff recommends motion
to:
A) Adopt a Resolution
of
the Board
of
County Commissioners ("Board")
of
Palm Beach
County, Florida, providing for a referendum to be held
on
August 20, 2024, pursuant to Section
§196.1995(1)(a) Florida Statutes, to determine whether the Board may grant economic
development
ad
valorem tax exemptions to new businesses and expansions
of
existing
businesses under Section
3,
Article VII
of
the State Constitution, to encourage economic
development and establish new jobs; approving the ballot title, summary and question;
authorizing a letter to transmit the ballot language to the Supervisor
of
Elections; and, providing
for an effective date.
Title: ECONOMIC DEVELOPMENT PROPERTY TAX EXEMPTIONS TO NEW BUSINESSES AND
EXPANSIONS OF EXISTING BUSINESSES
Ballot
Summary:
The
Economic
Ad
Valorem
Tax
Exemption
Program
provides
Palm
Beach
County
with
an
additional economic development incentive
tool
to
assist
new
and
expanding businesses
to
make
a
positive
economic impact
on
Palm
Beach
County's
economy
with
the
expectation that
these
businesses
will
create
new,
full-time jobs
in
Palm
Beach
County.
Shall
the
Board
of
County
Commissioners
of
Palm
Beach
County
be
authorized
to
grant,
pursuant
to
s.
3,
Art.
VII
of
the
State Constitution, property
tax
exemptions
to
new
businesses
and
expansions of existing businesses that
are
expected
to
create
new,
full-
time
jobs
in
Palm
Beach
County?
__
Yes
- For authority
to
grant
exemptions.
__
No
- Against authority
to
grant exemptions.
B)
Authorize correspondence to transmit the ballot to the Supervisor
of
Elections (SOE) no
later than May 17, 2024.
Summary: On January 23, 2024, the Board approved a motion to direct staff to proceed with
a voter referendum to reauthorize the Economic Development Ad Valorem Tax Exemption
(AVTE) program. The current AVTE program was approved by referendum vote on November
6,
2012, and implemented by the BCC through adoption
of
Ordinance 2013-022,
on
October
22, 2013. The existing program will expire
on
August 31, 2024, by virtue
of
having reached the
tenth year limitation pursuant to Section § 196.1995, Florida Statutes. In order to reinstate the
AVTE program, it is necessary to hold a new referendum
on
August 20, 2024.
If approved by the voters, the A VTE program will take effect upon the expiration
of
the current
program and subject to Board adoption
of
an implementing Ordinance. Countywide (DB)
Background and Policy Issues: Continued
on
page 3
Attachments:
1.
A
VTE
White Paper
2.
Resolution
3.
Letter to Supervisor of Elections
Department Director
Approved
By:
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____
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/Ji.sslstantcounty
Administrator Date
March
12,
2024
Ad
Valorem
Tax
Exemption
Renewal
II. FISCAL IMPACT ANALYSIS
A.
Five Year Summary of Fiscal Impact:
Fiscal Years 2024 2025
Capital Expenditures
Operating Costs
External Revenues
Program Income
In-Kind Match (County)
NET FISCAL IMPACT
# ADDITIONAL
FTE
POSITIONS (Cumulative)
Is
Item Included
In
Current Budget? Yes
Does this item include the use of Federal funds? Yes
Does this item include the use of State funds? Yes
Budget Account No.:
2026 2027
No_X_
No_X_
No2_
Fund
__
Dept.
__
Unit
__
Object
___
Program Code/Period
__
_
B.
Recommended Sources of Funds/Summary
of
Fiscal Impact:
There
is
no
fiscal impact associated with this Agenda Item.
C.
Departmental Fiscal Review:
Director
II
2028
minis rative Services, DHED
A.
B.
Ill. REVIEW COMMENTS
OFMB Fiscal and/or Contract Development and Control Comments:
J.a~
ff'
-,I
~
1-/
c:;l1.!-f
OFM~
'}>A-~\s\:i.y
Legal Sufficiency:
Contract Develo
'IW~lrf
C.
Other Department Review:
Department Director
(THIS SUMMARY
IS
NOT TO
BE
USED AS A BASIS FOR PAYMENT)
Page 2
March
12,
2024
Ad
Valorem
Tax
Exemption
Renewal
Background and Policy Issues: Continued from page 1
The AVTE program is a local economic development tool enabled under Section
3,
Art. VII,
of
the State Constitution (§196.1995, Florida Statutes), that empowers any county or municipality
to grant community and economic development ad valorem tax exemptions to new businesses
or expansions
of
existing businesses. Exemptions may be granted only by ordinance following
authorization by the electors
of
a county or municipality.
Page 3
Attachment 1
Palm Beach County Economic Development Tax Exemption Program
Introduction
The Palm Beach County Tax Exemption Program (AVTE) is designed to encourage economic
development and to support new or expanding businesses within the County. The program offers an
"economic exemption" for improvements made to real property and/or tangible personal property that
are not already listed on the Palm Beach County Tax Roll. The Economic Development Ad Valorem
Tax Exemption Program was created to stimulate economic growth, create jobs, and enhance the local
economy.
Ordinance Background
On August 31, 2004, the voters of Palm Beach County approved a Referendum establishing the Ad
Valorem Tax Exemption program leading to the adoption of Ordinance No. 2005-004.
On November 6, 2012, the voters approved a Referendum leading to the adoption of Ordinance No.
2013-022 by the Board of County Commissioners (BCC) on October 30, 2013. This Ordinance
renewed the program which is effective from August 31, 2014 - August 31, 2024. Each Ordinance set
a 10-year programmatic operation period.
Program Requirements
When applying for an AVTE, businesses are required to include the industry and location of the
business, capital investment, and number, type, and average & median salary of the new and retained
jobs. These factors are all included when calculating the economic impact (direct and indirect) of the
project and providing recommendations regarding the AVTE. The duration of an approved exemption
can range from one to ten years, however the BCC has historically approved a maximum amount,
allowable over the approved exempted period. If the Board approves an AVTE, the business is required
to enter into a separate Agreement with the County to ensure compliance regarding job creation and
other obligations. A Letter of Credit or Cash Bond from the business is required to secure the incentive.
Outcomes
From 2013 to 2023, the County provided $6.2M in AVTEs to 6 out of 20 businesses receiving
incentives. In addition to the AVTE program, Palm Beach County has also contributed cash incentives
totaling $3,948,100. Combined incentive amounts for these companies during this period from various
sources including municipalities, the County and State totaled $35,912,600.
Those investments have resulted in 2,246 jobs retained, 2,800 jobs created and a capital investment of
$428,190,000. This influx of capital has resulted in a total estimated 5-year economic impact of
$5,721,193,876.
Recommendation
Since the last voter approved Referendum, the State has eliminated the Qualified Target Industry
Program that provided State incentive funding and required the local match. DHED recommends the
County bring the Referendum forward to the voters. Additionally, we recommend that while the
program should be available Countywide, that preferences for the program be considered in areas of
the County including the Glades
and other low-income census tracts where a majority of households
have a median income of 80% or less or a poverty rate of 20% or higher.
Attachment 1
Timeline for 8/20/2024 Ballot
March 12, 2024 BCC Regular Agenda adopting Resolution, Ballot language, and authorize
transmittal to SOE
May 17, 2024 Deadline to provide SOE with Ballot Language
July 15, 2024 Public Notice per F.S. 100.342
July 29, 2024 Public Notice per F.S. 100.342
August 20, 2024 Referendum
September BCC Ordinance First Reading
Sept./October BCC Ordinance Adoption
RESOLUTION NUMBER R-2024-____________
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
PALM BEACH COUNTY, FLORIDA, PROVIDING FOR A REFERENDUM
TO BE HELD ON AUGUST 20, 2024, PURSUANT TO SECTION
§196.1995(1)(a) FLORIDA STATUTES, TO DETERMINE WHETHER THE
BOARD MAY GRANT ECONOMIC DEVELOPMENT AD VALOREM TAX
EXEMPTIONS TO NEW BUSINESSES AND EXPANSIONS OF EXISTING
BUSINESSES UNDER SECTION 3, ARTICLE VII OF THE STATE
CONSTITUTION, TO ENCOURAGE ECONOMIC DEVELOPMENT AND
ESTABLISH NEW JOBS; APPROVING THE BALLOT TITLE, SUMMARY
AND QUESTION; AUTHORIZING A LETTER TO TRANSMIT THE
BALLOT LANGUAGE TO THE SUPERVISOR OF ELECTIONS; AND,
PROVIDING FOR AN EFFECTIVE DATE.
WHEREAS, Section §196.1995(1)(a), Florida Statutes, authorizes the Board of
County Commissioners of Palm Beach County, Florida (hereinafter the “Board”), to call a
referendum to determine whether the Board may grant economic development ad
valorem tax exemptions under Section 3, Article VII of the State Constitution, provided
that the Board votes to hold such referendum; and
WHEREAS, Section §196-1995(2), Florida Statutes, establishes the substantial
form for a referendum ballot question for an economic development ad valorem tax
exemption program; and
WHEREAS, Section §101.161, Florida Statutes, requires that the wording of a
“public measure” (hereinafter “measure”) include a ballot summary to be embodied in the
enabling resolution. The summary shall be an explanatory statement, not exceeding 75
words in length, of the chief purpose of the measure; and
WHEREAS, Section §101.161, Florida Statutes, requires that the ballot title consist
of a caption, not exceeding 15 words in length, by which the measure is commonly
referred to or spoken of; and
WHEREAS, the adoption of this resolution formalizes and finalizes the actions to
be taken by the Board to effectuate the subject referendum.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF PALM BEACH COUNTY, FLORIDA, THAT;
1. The foregoing recitals are hereby affirmed and ratified.
2. A referendum is hereby called and ordered to be held in Palm Beach County
to determine whether the Board is authorized to grant economic development ad valorem
tax exemptions to new businesses and expansions of existing businesses to encourage
economic development and establish jobs.
3. Only the duly qualified electors of Palm Beach County shall be entitled and
permitted to vote in the referendum. The places for voting on the referendum shall be the
same as the places for voting in the general elections held in the County, which shall be
determined by the Supervisor of Elections in and for Palm Beach County, Florida. The
polls shall be opened in accordance with Florida law, and in the case of early voting, at
such times, on such days and at such polling locations or places as determined by the
Supervisor of Elections for the County.
4. Notice of the referendum shall be published in a newspaper of general
circulation in accordance with Section §100.342, Florida Statutes, or on a publicly
accessible website and governmental access channels, as provided in Section §50.0311,
Florida Statutes. Proof of publication shall be secured.
5. The ballot title, summary and question to be used in the referendum shall
be:
Title: ECONOMIC DEVELOPMENT PROPERTY TAX EXEMPTIONS TO NEW
BUSINESSES AND EXPANSIONS OF EXISTING BUSINESSES
1
Summary: The Economic Ad Valorem Tax Exemption Program provides Palm
Beach County with an additional economic development incentive tool to assist
new and expanding businesses to make a positive economic impact on Palm
Beach County’s economy with the expectation that these businesses will create
new, full-time jobs in Palm Beach County.
Question: Shall the Board of County Commissioners of Palm Beach County be
authorized to grant, pursuant to s. 3, Art. VII of the State Constitution, property tax
exemptions to new businesses and expansions of existing businesses that are
expected to create new, full-time jobs in Palm Beach County?
Yes – For authority to grant exemptions.
No – Against authority to grant exemptions.
6. The referendum shall be held and conducted, and the votes cast shall be
counted, tabulated, canvassed, and returned without delay, in the manner prescribed by
the general law for referenda.
7. In the event that a word, phrase, clause, sentence or paragraph hereof shall
be held invalid by any court of competent jurisdiction, such holding shall not affect any
other word, phrase, clause, sentence or paragraph hereof.
8. The Resolution shall take effect upon adoption.
Commissioner _______________ moved for the approval of the Resolution.
The motion was seconded by Commissioner _______________, and upon being put to
vote, the vote was as follows:
Commissioner Maria Sachs, Mayor - _____
Commissioner Maria G. Marino, Vice Mayor - _____
Commissioner Gregg K. Weiss, District 2 - _____
Commissioner Michael A. Barnett, District 3 - _____
Commissioner Marci Woodward, District 4 - _____
Commissioner Sara Baxter, District 6 - _____
Commissioner Mack Bernard, District 7 - _____
The Mayor thereupon declared that the Resolution was duly passed and adopted
on_____________ 2024.
PALM BEACH COUNTY, FLORIDA, BY ITS
BOARD OF COUNTY COMMISSIONERS
APPROVED AS TO FORM AND JOSEPH ABRUZZO
LEGAL SUFFICIENCY CLERK & COMPTROLLER
By: ____________________________ By: ______________________
David Behar Deputy Clerk
Assistant County Attorney
2
County Administration
P.O. Box 1989
West Palm Beach, FL 33402-1989
(561) 355-2040
FAX: (561) 355-3982
www.pbcgov.com
Palm Beach County
Board of County
Commissioners
Maria Sachs
Mayor
Maria G. Marino
Vice Mayor
Gregg K. Weiss
Michael A. Barnett
Marci Woodward
Sara Baxter
Mack Bernard
County Administrator
Verdenia C. Baker
“An Equal Opportunity
Affirmative Action Employer”
March 15, 2024
Ms. Wendy Sartory Link
Palm Beach County Supervisor of Elections
240 South Military Trail
West Palm Beach, Florida 33416
Dear Supervisor Link,
This is to inform you that the Palm Beach County Board of County
Commissioners (“Board”), at its March 12, 2024 meeting, authorized a
referendum to be held on the August 20, 2024 Primary Election, to ascertain
whether the Board should grant tax exemptions to new businesses and
expansions of existing businesses.
Please place the following language on the August 20, 2024 ballot:
Title: ECONOMIC DEVELOPMENT PROPERTY TAX EXEMPTIONS TO
NEW BUSINESSES AND EXPANSIONS OF EXISTING
BUSINESSES
Ballot Summary: The Economic Ad Valorem Tax Exemption Program
provides Palm Beach County with an additional economic development
incentive tool to assist new and expanding businesses to make a positive
economic impact on Palm Beach County’s economy with the expectation that
these businesses will create new, full-time jobs in Palm Beach County.
Ballot Question:
Shall the Board of County Commissioners of Palm Beach County be
authorized to grant, pursuant to s. 3, Art. VII of the State Constitution,
property tax exemptions to new businesses and expansions of
existing businesses that are expected to create new, full-time jobs in
Palm Beach County?
Yes – For authority to grant exemptions.
No – Against authority to grant exemptions.
Should you have any questions, please contact Sherry Howard, Deputy
Director, Housing and Economic Development, at (561) 233-3653, or at
SHowar[email protected]g.
Sincerely,
Verdenia C. Baker
County Administrator
Attachment: Resolution R-2024-
