Job Creation Bonus (JCB) Program Guidelines & Application. City of Titusville Downtown Community Redevelopment Agency
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1 Job Creation Bonus (JCB) Program Guidelines & Application City of Titusville Downtown Community Redevelopment Agency Adopted March 13, 2012
2 Introduction Job Creation Bonus (JCB) Program A Job Creation Incentive Program for Downtown Businesses Expanding businesses in the City of Titusville Downtown Community Redevelopment Area (CRA) or new businesses locating in the CRA may be eligible for the Job Creation Bonus (JCB) incentive. The JCB Program is part of the CRA s Economic Development Incentives Programs. The purpose of the JCB Program is to encourage the expansion of existing businesses and the location of new businesses in the Downtown by providing resources for job creation for targeted industries and professions in targeted areas, thus accelerating the redevelopment of the Downtown. Eligible businesses may qualify for the JCB Program and receive CRA Capital Investments up to $10,000 per job created. The following subsidies per job are offered for specific industries in specific locations: 1. Light Industrial Manufacturing; 2. Professional Services (architects, engineering, financial, legal, etc); 3. Medical Professional; 4. Retail; 5. Eating, Drinking and Entertainment Establishments. It should be noted that one business may qualify and combine incentive programs, such as the Loan Interest Subsidy Program, but may not exceed $50,000 in incentives for economic development. The Downtown Property Improvement Program is NOT an economic development incentive program and any applications for that Program are considered separately. Purpose The Downtown CRA District considers the economic development of the area as an integral step towards the redevelopment and revitalization of the CRA District. This Program is designed to address key statutorily defined blight conditions that exist in CRA districts, such as falling lease rates, residential and commercial vacancy, and deterioration of buildings. The occupancy of buildings, particularly historic structures, is a major goal for the current redevelopment plan, as is providing a vibrant, mixed use community and downtown atmosphere. The Titusville CRA District considers economic development incentive programs as tool to attract and retain population, activity, and community in the Downtown, in addition to Improvement Programs, Infrastructure Projects, and Special Events and Culture activities. JCB Program Criteria and Limitations The JCB Program is a grant contribution program in which the Titusville CRA would pay a grant to an eligible business for each job created, up to $10,000 per job and up to $50,000 per business. Eligible businesses are expanding existing business or new businesses that create NEW jobs. A NEW job is defined as a Full Time (minimum 2,080 hours annually) Employee that is located in the businesses address that must be within the CRA District. The NEW job will add to the number of employees existing in the applicant s company and will add to the City s employment base. The NEW
3 full time job may include permanent or leased employees, as well as include job sharing (which splits the position between two part time employees). The following industries and business types and locations are eligible: Business Type Location Additional Criteria Bonus Maximum per job created Light Industrial/ Manufacturing Uptown, Midtown, and Downtown Sub-districts May not occupy ground floor retail space along US 1 in the $5,000 or $10,000* Downtown unless providing a retail component Professional Services All Sub-districts May not occupy ground floor retail space along US 1 in the Downtown, unless providing a retail component $5,000 Medical Professional Uptown, Midtown, and Downtown Sub-districts May not occupy ground floor retail space along US in the Downtown $5,000 Retail All Sub-districts None $3,000 Eating, Drinking, and Entertainment Establishments All Sub-districts None $3,000 *Only Light Industrial/Manufacturing businesses providing new jobs with an annual average wage that are equal to exceed the annual average wage for the Melbourne-Palm Bay-Titusville MSA may qualify for the $10,000 bonus per job created. The Florida Department of Economic Opportunity currently reports the Annual Average Wage at $43,917. The annual average wage excludes commissions and tips. New applicants should inquire with the Planning & Growth Management Department to determine what the annual average wage is at the time of the application, since this number is updated and may change. The JCB Program may be approved in one grant agreement to allow for incremental growth of the Company. For example, the applicant may provide a business plan describing a growth in employees over a period of years. The grant may be approved for these future new jobs, and the payment of the grant would occur after the jobs are created. However, the expected job growth must occur within five years and the Grant Agreement may not extend longer than five years. Applications for the JCB Program will be accepted for the FY 2012 beginning February 1, The applicant may also apply for other CRA Economic Development Incentives; however, the total incentives provided to the applicant or business may not exceed $50,000 for the Grant Agreement period. Eligibility Requirements a) The eligible Business must be located within the Titusville Downtown Community Redevelopment Area, and the new or expanding business must also satisfy one or more of the following requirements: 1. Increase in square footage of leasable space; 2. Reduction of vacant land in the CRA District;
4 3. Renovation or construction that will have a substantial visual impact; 4. Renovation of a historic structure; 5. Increase in property value and TIF. b) A Business owner must either own the property or have an executed long-term lease for the location in the eligibility area. The long-term lease shall not expire prior to the end of the CRA JCB Program Grant Agreement Term. c) The qualifying jobs must be created for at least six months prior to the issuance of the grant payment. The applicant must provide payroll documents to the CRA to demonstrate the creation of the new job. d) The JCB Program Agreement for the grant must be approved before the first job is created. e) A business that enters into a Grant Agreement with the CRA must add jobs within a specific time frame after the execution of the Grant Agreement by the CRA, as determined in the Grant Agreement. f) The following entities are not eligible for this program: Real Estate Developers, home occupations, public entities, and not-for-profit entities. g) The JCB Program is contingent on funding availability, CRA Board Approval, and the execution of the Grant Agreement by the CRA and the Applicant, and is not be construed as an entitlement or right of a business owner, a property owner, or applicant. Businesses in the CRA are not eligible for CRA funded programs when such funding conflicts with the goals expressed in the CRA Redevelopment Plan and the Downtown Master Plan. h) The Business must be in operation and the jobs created in the Agreement must be in place at all times during the Grant Agreement term. Process for Grant Application and Approval 1. Prior to application submittal, the applicant should inquire about FUNDING AVAILABILITY. 2. Prior to application submittal, the applicant should meet with the Planning & Growth Management Department staff regarding potential business licensing if a new business and any construction plans or site plans for any new construction and/or renovation: Planning Department 555 S. Washington Avenue (2 nd floor of City Hall) Titusville, Fl (321) Application Process: All applicants are strongly encouraged to meet with the Planning Department staff to determine eligibility before submitting an application. Applications to the JCB Program will not be considered until all required documentation is submitted to the Planning and Growth Management Department. Application packets must include the following documentation: a. Completed and signed application and required attachments.
5 b. Copy of executed lease agreement or deed to the property showing the applicant as the owner. c. Business Plan, including executive summary and five year financial projections of the revenues and expenses after the improvements are completed; two years of historical balance sheets showing profits and losses for each year (for existing businesses only); and a list of jobs to be created including the description and proposed wages. d. Additional items may required by the staff to answer any questions or concerns. 4. Approval of Funding Request: Once eligibility is verified and all required documentation has been submitted, CRA staff will present the funding request to the CRA Board for approval. 5. Grant Agreement: Following approval of the Grant Application, the CRA Staff will negotiate a grant Agreement with the Applicant, which will clarify the terms and conditions of the JCB Grant, and present the Agreement to the CRA Board for approval. 6. Grant Payment: Subject to the terms of the Agreement, grant payments will be made at the time the applicant has demonstrated that the New jobs have been created. Payments will be made directly to the applicant. 7. Site Visits: Staff will conduct a site visit before payments begin to verify that the business is in operation. Staff may also conduct unannounced site visits periodically to ensure compliance with the Grant Agreement. 8. Reporting: By accepting the Grant Agreement, the applicant agrees to fulfill any reporting requirements deemed necessary by the CRA to ensure compliance with the agreement, including work schedules, payroll records, and reporting forms. 9. Discontinuation of Payments: The CRA retains the right to discontinue payments when the borrower defaults on the Grant Agreements terms. Program Inquiries Please direct all inquires of the JCB Program to the Planning and Growth Management Department: Planning & Growth Management Department Titusville Downtown CRA 555 S. Washington Avenue Titusville, FL www. Tituville.com
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