(A) Local Alternative Program.
(1) The city hereby established this Local Alternative Economic Development Incentive Program in addition to the existing Economic Development Ad Valorem Tax Exemption Program (O-95-3) to provide an enhanced competitive advantage in the attraction of new and expanded businesses to the city.
(2) Eligible Business. In order to be eligible to receive payments from the city under this program, an applying business:
(a) Must not be participating in the Economic Ad Valorem Tax Exemption Program provided for in § 38.90.
(b) Must make a capital investment in a facility within the city of not less than $1,000,000. This investment must be demonstrated by an increase in the assessed value of real property or personal property for an existing facility or new facility between the first year applied for and the previous tax year.
Businesses making a capital investment of not less than $500,000 qualify for financial inventive payments from the city if they are located in the target areas established by resolution of the City Commission.
(c) Must be newly located anywhere within the city or represent an expansion of existing business meeting criteria (b) above. The increase in assessed value of properties based upon an expansion of an existing business, must relate to real property improvements (i.e., structural expansions, increased floor space, etc.) and the creation of a minimum of at least ten new permanent full-time jobs and will not include the increased assessed value of tangible personal property.
(3) This Local Alternative Economic Development Incentive Program is based upon the jobs creation, ownership, and capital investment as follows:
Type of Ownership Points
Lease of less than 5 years 0
Lease of 5 or more years and 1
less than 10 years
Lease of ten or more years 2
Ownership with occupancy 3
Corporate headquarters
Outside of Hollywood 0
Within Hollywood 1
Average wages of employees working
in the city
Less than $15,000 per annum 0
At least $15,000 & less than $20,000 1
At least $20,000 & less than $40,000 2
$40,000 or more 3
Number of newly created full-time
equivalent permanent jobs
Less than 10 jobs 0
At least 10 & less than 20 1
At least 20 & less than 50 2
50 - 100 3
101 - 500 4
501 or more 5
Number of transferred jobs
Less than 10 permanent jobs 0
At least 10 permanent jobs 1
At least 25 & less than 100 2
100 or more 3
Capital investment (outside target areas)
Increase in real 1 point for
estate value every $1,000,000
Increase in tangible/ 1 point for
personal property value every $1,000,000
Capital investment (target 1 point for
areas) in target areas every $500,000
(4) Amount of incentive. Each point shall make a business eligible for an annual payment of up to $1,000, up to a maximum annual payment of $100,000. The maximum payment to any eligible firm over its lifetime shall not exceed $500,000. The monetary amounts described herein represent the maximum amounts which may be awarded by the City Commission, which reserves the right to lesser amounts for reasons including but not limited to available budget resources and constraints.
(5) Length of payments. The payment of an incentive to an eligible business is made in the second through sixth year after its first year of operation is completed and all qualifying criteria are documented and verified. Qualification for payment of the monetary incentives in years two through six must occur independently at the completion of each successive year to ensure the continued adherence to the criteria established.
(6) In addition to the qualifying criteria which have been quantified by the point system described above, certain additional criteria are encouraged but not required of the participating businesses. The utilization of Minority and Women Business Enterprises (MWBE) by the participating business is strongly encouraged as a good faith effort, consistent with appropriate goals in the local marketplace.
(7) The identification and utilization of a city business address is required by all participating businesses.
(8) Application by a participating business for the Local Alternative Economic Development Incentive Program shall be made to the City Manager or his/her designee. The City Manager or his/her designee shall evaluate all applications and make a recommendation to the City Commission concerning the appropriate level of monetary incentive for a participating business on a case by case basis. Approval of any and all monetary incentives for each participating business will be made by resolution of the City Commission.
(Ord. O-98-04, passed 3-18-98)