Tuesday, September 30, :30 A.M. 11:30 A.M. CALL-IN NUMBER: (877) ACCESS CODE: # Enterprise Florida Board of Directors Meeting

Transcription

1 Tuesday, September 30, :30 A.M. 11:30 A.M. CALL-IN NUMBER: (877) ACCESS CODE: # Enterprise Florida Board of Directors Meeting Held in Conjunction with The Future of Florida Forum Disney s Yacht & Beach Club Convention Center Lake Buena Vista, Florida Dress: Business Attire

2 Enterprise Florida Board of Directors Meeting September 30, 2014 DOCUMENTS LIST The following is a list of documents that will provide background and context for board discussion and/or action. Tab 1 AGENDA Agenda... 1 Tab 2 LET S KEEP WORKING Recent Announcements... 2 Speaker Bio Tab 3 MINUTES Draft Meeting Minutes August 7, Tab 4 ACTION ITEMS Consent Agenda Audited Financial Statements for FY 2013/ Renewal of Existing Investors New Company Representatives FL Opportunity Fund Board Recommendations Tab 5 MARKETING & COMMUNICATIONS Fortune Cover Wrap ADT Fortune Cover Wrap Datamaxx Fortune Cover Wrap Governor Scott Tab 6 APPENDIX Enterprise Florida Investors Enterprise Florida Board Member Directory Enterprise Florida Events Enterprise Florida Board of Directors Meeting September 30, 2014

3 Enterprise Florida Board Meeting Agenda Future of Florida Forum Disney s Yacht & Beach Club Convention Center Lake Buena Vista, Florida September 30, 2014: 9:30 A.M. 11:30 A.M. EDT Theme: Business Climate Agenda CALL-IN NUMBER: (877) ACCESS CODE: # 9:30 a.m. Welcome & Roll Call... Brett Couch, Vice Chair 9:45 a.m. President s Update & Q&A... Gray Swoope, EFI President & CEO 10:00 a.m. Success Story... Gordon A. Smith United States Tennis Association 10:15 a.m. Florida Competitiveness Progress Report... Alan Becker Enterprise Florida Board Member 11:00 a.m. Action Items... Brett Couch, Vice Chair Consent Agenda Nomination of Officers Approval of Audited Financials 11:20 a.m. Public Comment (Prior to vote)... By Comment Card 11:30 a.m. Closing Remarks & Adjournment... Brett Couch, Vice-Chair Save the Dates: January 21 22, 2015: Tallahassee May 27 28, 2015: Tampa August 19 20, 2015: Ponte Vedra October 28 29, 2015: Orlando Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 1 of 86

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5 Gov. Scott: Naples-Marco Island Metro Area Adds 4,000 New Jobs On September 19, 2014, in News Releases, by Governor's Press Office Today, Governor Rick Scott announced the Naples-Marco Island Metropolitan Statistical Area experienced positive annual job growth with an increase of 4,000 jobs over the year in August The MSA s unemployment rate declined by 1.0 percentage point over the year, from 7.9 percent in August 2013 to 6.9 percent in August Governor Scott said, With 4,000 new jobs, the Naples area is heading in the right direction and creating an opportunity economy. While we re thrilled to see our pro-growth, business friendly policies working, we will keep striving until every person seeking a job finds one. The industries gaining the most jobs in this metro area over the year in August 2014 were in construction with 900 new jobs and professional and business services with 800 new jobs. In August 2014, the Naples-Marco Island MSA had the second fastest annual job growth rate compared to all the metro areas in the state in total employment, tied with the Orlando metro area, with growth of 3.4 percent over the year. The Naples-Marco Island MSA had 4,707 online job openings in August 2014, growing by 13 percent over the year. The area also had 616 online openings for STEM occupations, an increase of 18.2 percent over the year. STEM is an acronym for science, technology, engineering and mathematics, and these jobs are considered high wage and high skill. In August, CareerSource Southwest Florida, along with the state s other 23 Regional Workforce Boards, reported more than 38,400 Floridians were placed in jobs. An individual who receives employment and training assistance through a One-Stop Career Center and finds a job within 180 days is deemed a placement and may be reported by a regional workforce board. Of these individuals, 8,134 previously received Reemployment Assistance. In 2013, 479,064 Floridians were placed in jobs, with 135,384 former claimants finding employment. Florida created 23,000 private-sector jobs in August 2014, and since December 2010, Florida has created 643,100 private-sector jobs. Florida s annual job growth rate has exceeded the nation s rate since April Florida s statewide unemployment rate for August 2014 was 6.3 percent, down 0.8 percentage points from the August 2013 rate. To view the August 2014 employment data visit Gov. Scott: Fort Lauderdale Metro Area Gains 16,300 jobs over the year in August On September 19, 2014, in News Releases, by Governor's Press Office Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 2 of 86

6 Today, Governor Rick Scott announced that the Fort Lauderdale-Pompano Beach-Deerfield Beach metro area gained 16,300 jobs over the year in August The Ft. Lauderdale metro area s unemployment rate declined by 0.5 percentage points over the year, from 6.2 percent in August 2013 to 5.7 percent in August Governor Scott said, These more than 16,000 jobs over the year is great news for families living in the Ft. Lauderdale area. With positive annual job growth it is clear that this area is heading in the right direction, and more Floridians are getting back to work. The industries with the largest job gains over the year were in trade, transportation, and utilities with 6,900 jobs new jobs and professional and business services with 4,200 new jobs. In August 2014, the Ft. Lauderdale metro area was ranked fourth among all metro areas in Florida for online job demand with 25,181 openings and also ranked fourth for STEM job openings with 5,277 job openings. STEM is an acronym for science, technology, engineering and mathematics, and these jobs are considered high wage and high skill. In August, CareerSource Broward, along with the state s other 23 Regional Workforce Boards, reported more than 38,400 Floridians were placed in jobs. An individual who receives employment and training assistance through a One-Stop Career Center and finds a job within 180 days is deemed a placement and may be reported by a regional workforce board. Of these individuals, 8,134 previously received Reemployment Assistance. In 2013, 479,064 Floridians were placed in jobs, with 135,384 former claimants finding employment. Florida created 23,000 private-sector jobs in August 2014, and since December 2010, Florida has created 643,100 private-sector jobs. Florida s annual job growth rate has exceeded the nation s rate since April Florida s statewide unemployment rate for August 2014 was 6.3 percent, down 0.8 percentage points from the August 2013 rate. To view the August 2014 employment data visit Gov. Scott: Tampa Metro Area Leads State in Manufacturing Job Creation On September 19, 2014, in News Releases, by Governor's Press Office Today, Governor Rick Scott announced the Tampa-St. Petersburg-Clearwater Metropolitan Statistical Area (MSA) added 15,100 new jobs in August 2014 compared to a year ago. This is the fifth-highest number of new jobs among all metro areas in Florida and the metro area added the most jobs of all the metro areas in the manufacturing industry. The unemployment rate in the Tampa metro area declined by 0.6 percentage points over the year, from 7.4 percent in August 2013 to 6.8 percent in August Governor Scott said, We re thrilled to continue to see both positive job growth and a decreasing unemployment rate in the Tampa area over the year. With 15,100 new jobs in the area over the year, including 2,000 in manufacturing, Tampa is certainly creating an opportunity economy, so let s keep working. The industries with the largest gain in jobs over the year in the metro area were in trade, transportation, and utilities with 6,100 new jobs and professional and business services with 6,000 new jobs. In August 2014, the Tampa-St. Petersburg-Clearwater MSA was the top metro area in Florida for gains over the year in manufacturing with 2,000 new jobs. Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 3 of 86

7 The Tampa Bay MSA was first among the state metro areas in online job demand in August 2014 with 44,025 openings. The metro area was also first in the state in demand for STEM occupations with 10,079 openings in August. STEM is an acronym for science, technology, engineering and mathematics, and these jobs are considered high wage and high skill. In August, CareerSource Tampa Bay, along with the state s other 23 Regional Workforce Boards, reported more than 38,400 Floridians were placed in jobs. An individual who receives employment and training assistance through a One-Stop Career Center and finds a job within 180 days is deemed a placement and may be reported by a regional workforce board. Of these individuals, 8,134 previously received Reemployment Assistance. In 2013, 479,064 Floridians were placed in jobs, with 135,384 former claimants finding employment. Florida created 23,000 private-sector jobs in August 2014, and since December 2010, Florida has created 643,100 private-sector jobs. Florida s annual job growth rate has exceeded the nation s rate since April Florida s statewide unemployment rate for August 2014 was 6.3 percent, down 0.8 percentage points from the August 2013 rate. To view the August 2014 employment data visit Gov. Scott: Miami Metro Area adds 34,700 Jobs over the year in August 2014 On September 19, 2014, in News Releases, by Governor's Press Office Governor Rick Scott announced today that the Miami-Miami Beach-Kendall metro area gained the secondhighest number of jobs in August 2014 among all metro areas in Florida compared to a year ago with 34,700 new jobs. The area s unemployment rate declined by 1.3 percentage points over the year, from 8.6 percent in August 2013 to 7.3 percent in August Governor Scott said, The news that 34,700 jobs were created in the Miami area is evidence that our policies are working. While this benefits the families here immensely, we have to keep working to make sure every person seeking a job in Florida can get one. The industries with the largest job gains over the year were in trade, transportation, and utilities with 9,900 new jobs and professional and business services with 5,500 new jobs. Also, building permits were up 11.3 percent over the month in the Miami metro area in July The Miami metro area had the third-highest online job demand in Florida in August 2014 with 33,955 job openings and had the third-highest number of openings for STEM occupations in August 2014 with 6,927 online openings. STEM is an acronym for science, technology, engineering and mathematics, and these jobs are considered high wage and high skill. In August, CareerSource South Florida, along with the state s other 23 Regional Workforce Boards, reported more than 38,400 Floridians were placed in jobs. An individual who receives employment and training assistance through a One-Stop Career Center and finds a job within 180 days is deemed a placement and may be Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 4 of 86

8 reported by a regional workforce board. Of these individuals, 8,134 previously received Reemployment Assistance. In 2013, 479,064 Floridians were placed in jobs, with 135,384 former claimants finding employment. Florida created 23,000 private-sector jobs in August 2014, and since December 2010, Florida has created 643,100 private-sector jobs. Florida s annual job growth rate has exceeded the nation s rate since April Florida s statewide unemployment rate for August 2014 was 6.3 percent, down 0.8 percentage points from the August 2013 rate. To view the August 2014 employment data visit Gov. Scott: Pensacola Metro Area Adds 1,200 Jobs in August 2014 On September 19, 2014, in News Releases, by Governor's Press Office Today, Governor Rick Scott announced the Pensacola-Ferry Pass-Brent Metropolitan Statistical Area s (MSA) again experienced positive annual job growth over the year in August 2014 with 1,200 new jobs. The metro area s unemployment rate declined by 0.5 percentage points over the year, from 7.0 percent in August 2013 to 6.5 percent in August Governor Scott said, These additional 1,200 new jobs in Pensacola is great news for families in the area. Florida has added 643,100 private-sector jobs since December 2010 and families are getting back to work. The industry with the largest job gains in the Pensacola metro area over the year was leisure and hospitality with 900 new jobs. Building permits were up 12.7 percent over the month and 16.2 percent over the year in the Pensacola metro area in July The Pensacola metro area had 5,905 online job openings in August 2014, an increase of 6.8 percent over the year, and 930 openings for STEM occupations, an increase of 3.9 percent over the year. STEM is an acronym for science, technology, engineering and mathematics, and these jobs are considered high wage and high skill. In August, CareerSource Escarosa, along with the state s other 23 Regional Workforce Boards, reported more than 38,400 Floridians were placed in jobs. An individual who receives employment and training assistance through a One-Stop Career Center and finds a job within 180 days is deemed a placement and may be reported by a regional workforce board. Of these individuals, 8,134 previously received Reemployment Assistance. In 2013, 479,064 Floridians were placed in jobs, with 135,384 former claimants finding employment.florida created 23,000 private-sector jobs in August 2014, and since December 2010, Florida has created 643,100 private-sector jobs. Florida s annual job growth rate has exceeded the nation s rate since April Florida s statewide unemployment rate for August 2014 was 6.3 percent, down 0.8 percentage points from the August 2013 rate. To view the August 2014 employment data visit Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 5 of 86

9 Gov. Scott: Jacksonville Metro Area Adds 18,000 Jobs Over the Year in August On September 19, 2014, in News Releases, by Governor's Press Office Today, Governor Rick Scott announced the Jacksonville Metropolitan Statistical Area (MSA) gained 18,000 new jobs over the year in August. The Jacksonville MSA s unemployment rate declined by 0.5 percentage points over the year, from 7.1 percent in August 2013 to 6.6 percent in August Governor Scott said, The decline in the local unemployment rate coupled with 18,000 new area jobs means that more families in the Jacksonville area are able live the American Dream. Let s keep working to ensure that every individual seeking a job in this area can find one. The industries with the largest job gains over the year were in professional and business services with 6,900 new jobs and leisure and hospitality with 6,300 new jobs. In August 2014, the Jacksonville MSA was among the top two metro areas in Florida for gains over the year in professional and business services and leisure and hospitality, as well as in financial activities with 2,300 new jobs. In August 2014, the Jacksonville MSA had 21,286 online job openings and had 4,576 online openings for STEM jobs. STEM is an acronym for science, technology, engineering and mathematics, and these jobs are considered high wage and high skill. In August, CareerSource Northeast Florida, along with the state s other 23 Regional Workforce Boards, reported more than 38,400 Floridians were placed in jobs. An individual who receives employment and training assistance through a One-Stop Career Center and finds a job within 180 days is deemed a placement and may be reported by a regional workforce board. Of these individuals, 8,134 previously received Reemployment Assistance. In 2013, 479,064 Floridians were placed in jobs, with 135,384 former claimants finding employment. Florida created 23,000 private-sector jobs in August 2014, and since December 2010, Florida has created 643,100 private-sector jobs. Florida s annual job growth rate has exceeded the nation s rate since April Florida s statewide unemployment rate for August 2014 was 6.3 percent, down 0.8 percentage points from the August 2013 rate. To view the August 2014 employment data visit Gov. Scott: Orlando Metro Area Gains 36,500 New Jobs in August On September 19, 2014, in News Releases, by Governor's Press Office Today, Governor Rick Scott announced that the Orlando-Kissimmee-Sanford Metropolitan Statistical Area s (MSA) gained 36,500 new jobs over the year in August This is the highest number of jobs among all metro areas in Florida compared to a year ago. The Orlando MSA s unemployment rate declined by 0.7 percentage points over the year, from 7.0 percent in August 2013 to 6.3 percent in August Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 6 of 86

10 Governor Scott said, Leading all metro areas, Orlando has added 36,500 new jobs over the year in August and continues to demonstrate their strong local economy. Florida has added 643,100 private-sector jobs statewide since December 2010, showing that our business-friendly policies are working to allow more Floridians to achieve the American Dream. In August 2014, the Orlando metro area led the metro areas in job gains over the year in leisure and hospitality with 11,500 new jobs, professional and business services with 10,700 new jobs, and construction with 4,400 new jobs. The Orlando-Kissimmee-Sanford MSA had the second-highest online job demand in Florida in August 2014 with 36,275 openings and also ranked number two in STEM overall demand in the state with 7,235 openings. STEM is an acronym for science, technology, engineering and mathematics, and these jobs are considered high wage and high skill. In August, CareerSource Central Florida, along with the state s other 23 Regional Workforce Boards, reported more than 38,400 Floridians were placed in jobs. An individual who receives employment and training assistance through a One-Stop Career Center and finds a job within 180 days is deemed a placement and may be reported by a regional workforce board. Of these individuals, 8,134 previously received Reemployment Assistance. In 2013, 479,064 Floridians were placed in jobs, with 135,384 former claimants finding employment. Florida created 23,000 private-sector jobs in August 2014, and since December 2010, Florida has created 643,100 private-sector jobs. Florida s annual job growth rate has exceeded the nation s rate since April Florida s statewide unemployment rate for August 2014 was 6.3 percent, down 0.8 percentage points from the August 2013 rate. To view the August 2014 employment data visit Gov. Scott: West Palm Beach Metro Area Adds 14,600 Jobs Over the Year in August 2014 On September 19, 2014, in News Releases, by Governor's Press Office Today, Governor Rick Scott announced that the West Palm Beach metro area experienced positive annual job growth, with an increase 14,600 jobs over the year in August The metro area s unemployment rate declined by 1.2 percentage points over the year, from 7.8 percent in August 2013 to 6.6 percent in August Governor Scott said, With 14,600 new jobs created over the year, it is evident that our policies are working in the West Palm Beach area. We want every Floridian to live their version of the American Dream, so it s essential that every family benefits from our policies. The industries with the largest job gains over the year were in education and health services with 4,000 new jobs, leisure and hospitality and professional and business services with 2,700 new jobs each, and construction Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 7 of 86

11 with 2,100 new jobs. In August 2014, the West Palm Beach metro area was the top metro area in Florida for gains over the year in education and health services. In August 2014, the West Palm Beach metro area had 20,361 online job openings. The metro area had 4,644 STEM occupation openings. STEM is an acronym for science, technology, engineering and mathematics, and these jobs are considered high wage and high skill. In August, CareerSource Palm Beach County, along with the state s other 23 Regional Workforce Boards, reported more than 38,400 Floridians were placed in jobs. An individual who receives employment and training assistance through a One-Stop Career Center and finds a job within 180 days is deemed a placement and may be reported by a regional workforce board. Of these individuals, 8,134 previously received Reemployment Assistance. In 2013, 479,064 Floridians were placed in jobs, with 135,384 former claimants finding employment. Florida created 23,000 private-sector jobs in August 2014, and since December 2010, Florida has created 643,100 private-sector jobs. Florida s annual job growth rate has exceeded the nation s rate since April Florida s statewide unemployment rate for August 2014 was 6.3 percent, down 0.8 percentage point from the August 2013 rate. To view the August 2014 employment data visit Gov. Scott: Florida Creates 23,000 Private-Sector Jobs In August On September 19, 2014, in News Releases, by Governor's Press Office Governor Rick Scott today announced that Florida created 23,000 private-sector jobs in August Since December 2010, Florida s private-sector businesses have added 643,100 jobs for Florida families. Florida s annual job growth rate has exceeded the nation s rate since April Governor Rick Scott said, Today s announcement of 23,000 private-sector jobs being created in Florida over the month of August is great news for Florida families. As we continue to create an opportunity economy and a business-friendly environment, we are seeing more jobs being created throughout Florida communities. Since December 2010, we have created more than 643,000 private-sector jobs, and we will continue to work so that every Floridian who wants a job can get one. The statewide unemployment rate for August 2014 is 6.3 percent, down 0.8 percentage point from the August 2013 rate. Since December 2010, Florida s unemployment rate has dropped 4.8 percentage points, from 11.1 percent down now to 6.3 percent in August Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 8 of 86

12 Department of Economic Opportunity Executive Director Jesse Panuccio said, The creation of 23,000 privatesector jobs in Florida last month is another strong chapter in Florida s economic turnaround story. With measurable growth last month in the manufacturing and business and professional services industries, we can see that our efforts to foster the creation of high-skill, high-wage jobs are paying off for Florida families. The long-term positive trends in the unemployment rate and job counts are among the most important economic indicators to consider when analyzing the health of Florida s economic recovery. The state s private-sector job counts have been steadily on the rise for over four years, showing that Florida s businesses are responding to the state s improving economic climate. Since December 2010, the state has added 643,100 private-sector jobs. More Floridians Getting Back to Work Florida s annual job growth rate has exceeded that of the nation since April Florida s private sector job growth month-to-month has been positive for 42 of the last 45 months. Florida has created 643,100 new private sector jobs since December Florida job postings compiled by the Help Wanted OnLine data series from The Conference Board showed 273,281 openings in August Home Sales Robust Home sales remain robust as the backlog of existing homes on the market is down by 33.4 percent from December 2011 (Florida Realtors). Florida median home prices were up 3.6 percent over the year in July Economic Growth Trends Up Across State A recent U.S. Census Survey reported that Florida experienced an influx of people moving into the state. Florida also led the nation in migrations from Puerto Rico. Florida is running a trade surplus of over $18 billion with $90.4 billion in exports and $71.8 billion in imports in 2012, up from $86.8 billion in exports in 2011 and $62.4 billion in imports in Workforce Boards Assisting in Employment In August, Florida s 24 Regional Workforce Boards reported more than 38,400 Floridians were placed in jobs. An individual who receives employment and training assistance through a CareerSource Center and finds a job within 180 days is deemed a placement and may be reported by a regional workforce board. Of these individuals, 8,134 previously received Reemployment Assistance. In 2013, more than 479,000 Floridians were placed in jobs, with 135,384 former claimants finding employment. To view the August 2014 employment data visit GOVERNOR RICK SCOTT ANNOUNCES MANUFACTURING COMPANY TO LOCATE IN OCALA Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 9 of 86

13 On September 12, 2014, in News Releases, by Governor's Press Office Just In Time Machining, LLC, to create 25 jobs and a capital investment of $3.205 million Today, Governor Rick Scott announced Just In Time (JIT) Machining, LLC, will locate its new production facility in Ocala. The company s first Florida facility will create 25 manufacturing jobs and a capital investment of at least $3.2 million. Governor Scott said, Just In Time s decision to locate its new production facility in Ocala is great news for Florida families. Every job positively impacts a family, and these 25 new jobs will allow more Floridians to provide for their families and live the American Dream. Last year, we rolled back the sales tax on manufacturing equipment and machinery for Florida s manufacturing companies like JIT. Since December 2010, we ve created 620,300 private-sector jobs and we will continue working to create opportunities for each Floridian that wants a job. Since its founding in 1996, JIT has applied its focus on being a full-service, family-owned, CNC or automated machinery shop providing prototyping, CNC and CNC-turn mill machining, drilling, milling, turning and sawing, welding and metal fabrication. The production facility will serve the company s southeast customers. JIT chose Ocala over Georgia, Alabama, and Texas because of Ocala s workforce, CNC skills training program, central location, and Florida s low cost of doing business. President and CEO of JIT, Kelly Alexander said, We have found Ocala and the state of Florida to be an ideal location for our new manufacturing facility. Ocala s central location, I-75 access, and a developed manufacturing workforce make it an idea location to serve our customers in the southeastern United States. Florida s advanced manufacturing industries are diverse and include sectors producing intermediate and finished products ranging from plastics to tortillas and motor vehicles. In total, Florida is home to more than 18,200 manufacturers employing some 317,000 workers. Because JIT chose Florida for locating its manufacturing facility, the company will save $120,000 from the exemption of sales tax on manufacturing equipment. President and CEO of Enterprise Florida, Gray Swoope said, JIT s new manufacturing facility in Ocala will add value to Florida s growing manufacturing industry. The removal of the M&E sales tax is already creating increased interest in Florida as a location for manufacturers. News of that tax removal spread quickly and, when coupled with our strong workforce, low cost of living and quality life, makes it hard for businesses to pass up Florida when looking to locate or expand. This project was made possible with the help of close partnerships between Enterprise Florida, the Florida Department of Economic Opportunity, the City of Ocala, Marion County and the Ocala Chamber and Economic Partnership (CEP). Department of Economic Opportunity Executive Director Jesse Panuccio said, As the state s economic turnaround story continues, more businesses across the nation are recognizing Florida as the best state in the nation to start or grow a business, live, work, and play. JIT s new manufacturing operation in Ocala will bring new jobs, investment, and vigor to the area and is evidence that the pro-growth, business-friendly policies of this administration continue to produce results. Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 10 of 86

14 The city is pleased to continue partnering with the Ocala CEP by awarding a Small Business Investment Program grant to Just In Time CNC Machining, LLC, said Ocala City Council President, John McLeod. We are excited to welcome this new business to our community. We are proud to officially welcome a new manufacturing company, Just in Time Machining, to Marion County. Their CNC machine shop will bring 25 new full-time jobs to our local workforce with an average salary of $37,000 for CNC operators. Our Board s commitment of a $40,000 Economic Development Financial Incentive Grant will support capital improvements at the company s new facility. Knowing that Just in Time also considered Texas, Georgia and Alabama as possible locations, we are so pleased that they will be opening for business here in Ocala, said Carl Zalak III, Chairman of the Marion County Board of County Commissioners. The Ocala CEP is pleased to welcome another manufacturer to our community, said Doug Cone, CEP Chairman of the Board. We are continuing to implement our Moving Forward plan by adding another company in one of our targeted sectors of aerospace/aviation paying wages at and above our wage goal. *** Just In Time Machining (JIT) is a family-owned, CNC shop providing prototyping, CNC and CNC-turn mill machining, drilling, milling, turning and sawing, welding and metal fabrication. They have production facilities in Rochester and Dansville, New York. They were founded in Enterprise Florida, Inc. (EFI) is a partnership between Florida s businesses and government leaders and is the principal economic development organization for the state of Florida. EFI facilitates job growth for Florida businesses through recruitment and retention, international trade and exporting, promotion of sporting events, and capital funding programs to assist small and minority businesses. The Ocala/Marion County Chamber and Economic Partnership (CEP) was created to be a one-stop hub for the community s business attraction, creation and retention efforts. The CEP s mission is to be THE catalyst for a prosperous community. The Moving Forward plan seeks to impact the creation of 3500 new jobs with wages 15% above the county average and resulting in a capital investment of $225 million by GOVERNOR SCOTT ANNOUNCES OPENING OF EMBRAER S ENGINEERING CENTER OF EXCELLENCE IN MELBOURNE On September 8, 2014, in News Releases, by Governor's Press Office Company will create 200 jobs at the new $24.2 million facility Today, Governor Rick Scott announced the opening of Embraer Aircraft Holding, Inc. s new engineering Center of Excellence in Melbourne. The company s new $24.2 million facility will house 200 new research and engineering professionals. The Center of Excellence project was announced in March of Governor Scott said, Embraer s commitment to Florida and their creation of 200 jobs will help more Florida families get back to work and live the American Dream. This project is great news for the Space Coast and I m excited to see this company grow as they open today. Since December 2010, we have created more than Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 11 of 86

15 620,000 private-sector jobs and we will continue working hard to create an opportunity economy where every Floridian who wants a job can get one. The new 63,500-square-foot Embraer Engineering and Technology Center USA sits on 13 acres and houses a state-of-the-art engineering unit, complete with 3D computer-aided design, computational fluid dynamics, finite element modeling, 3D virtual reality center, prototype capabilities and sophisticated laboratories and other test equipment. Employment specialties will include mechanical and electrical systems engineers, interior design engineers, structural engineers and certification engineers. The company plans to partner with universities and other institutions in the U.S. to develop programs of mutual benefit and bring its Phenom 100 and Phenom 300 business jets closer to potential U.S. customers. As we celebrate the 35th anniversary of our North American presence this month, we are once again expanding our longstanding relationship with the State of Florida and the Brevard community with the opening of a cutting-edge Engineering & Technology Center said Frederico Fleury Curado, Embraer S.A. President and CEO. With the highly qualified team of engineers that will work in these offices and laboratories, we will bring the most advanced solutions to our customers. Florida is home to more than 2,000 aerospace and aviation companies employing over 87,000 workers across the state. Florida has been the undisputed air traffic hub of the Western Hemisphere, a major hub for flight training and maintenance, repair and overhaul (MRO) operations, and home to leading manufacturers of all types of aircraft and aircraft components. Secretary of Commerce and President & CEO of Enterprise Florida, Gray Swoope, participated in this morning s event and spoke about Embraer s growing presence in Florida, When Governor Scott and I visited Embraer s R&D center in Brazil in 2011, we were able to see first-hand what having them here could do for Florida. Because of the strong partnerships between Enterprise Florida, the Space Coast EDC, Brevard County, the Melbourne International Airport and Space Florida, we can bring competitive, game-changing projects like this new Center of Excellence to Florida. Embraer could have located this new engineering facility anywhere in the world, but they chose Florida and we appreciate their continued commitment to the state. This project was made possible through strong partnerships between Enterprise Florida, the Florida Department of Economic Opportunity, CareerSource Florida, the Economic Development Council of Florida s Space Coast and the City of Melbourne. Embraer is a leader in the aerospace industry and their choice to expand operations in Florida is a big win for our state. By adding 200 research and engineering jobs to the Melbourne community and the state s economy, Embraer is contributing to our economic turnaround story, said Florida Department of Economic Opportunity Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 12 of 86

16 Director Jesse Panuccio. This administration is committed to building an opportunity economy in which businesses have the supports and confidence to grow and create jobs for Florida families. As part of the project, CareerSource Florida has offered Embraer performance-based partial reimbursement grants for employee training through the Quick Response Training (QRT) program. QRT grants are structured to be flexible and responsive to the training needs of new or expanding businesses. Embraer s latest expansion in Florida and the addition of 200 high-skill, high-wage research and engineering positions is fantastic news for the Space Coast and for our entire state, said Chris Hart IV, president and CEO of CareerSource Florida. CareerSource Florida is proud to assist Embraer with customized training opportunities to further their employees career development and future prosperity for their families. Today we celebrate another milestone in what has become a strong and thriving relationship between Embraer, a world class company and Brevard County, a world class community, said Mary Bolin Lewis, District 4 commissioner and chairman of the Brevard County Board of County Commissioners. The Space Coast is the place for engineering and technology. This innovation focused facility, and the 200 citizens it will employ, will foster next generation technological advancement for the company. Embraer could have committed to this level of growth at any of their locations, but they chose to do so in Melbourne, said City of Melbourne mayor Kathy Meehan. There isn t a greater compliment than repeat business and we re thrilled to play host to Embraer s third project in our aviation centric city. Long-term investment from a global leader and model corporate citizen doesn t happen every day. As a community, we re honored it s happening here. Embraer opened the door to the rapidly growing aviation sector in Brevard, and as a result, our community s stock has risen, said Lynda Weatherman, president and chief executive officer, Economic Development Commission of Florida s Space Coast. In a matter of years, the face of the Space Coast s business community has transformed into a hotbed of aviation activity because this dedicated community team was able to show Embraer what we had to offer, our workforce, our lifestyle, our aviation heritage and our forward vision. That message is translating into new opportunities for the Space Coast. Embraer U.S. located in Florida, supports sales, marketing and after sales support for North America s commercial, defense and business markets. Other U.S. facilities include the Embraer Executive Jets Service Centers as well as a MRO facility, Embraer Aircraft Maintenance Services, to support the commercial jet market. Embraer s corporate headquarters, located in Brazil, is the world s largest manufacturers of commercial jets up to 120 seats and one of Brazil s leading exporters. *** Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 13 of 86

17 Enterprise Florida, Inc. (EFI) is a partnership between Florida s businesses and government leaders and is the principal economic development organization for the state of Florida. EFI facilitates job growth for Florida businesses through recruitment and retention, international trade and exporting, promotion of sporting events, and capital funding programs to assist small and minority businesses. FLORIDA S RESURGENT ECONOMY CONTINUES TO SEE JOB DEMAND GROWTH THROUGH AUGUST On September 5, 2014, in News Releases, by Governor's Press Office More than 273,000 online job vacancies across Florida in August 2014 Today, Governor Rick Scott and The Florida Department of Economic Opportunity announced that the number of online job openings in Florida increased in August 2014 compared to the previous August by 11,318, or 4.3 percent, for a total of 273,281 openings (seasonally adjusted), according to data released by Help Wanted Online. Job postings in Florida also increased over the month compared to July 2014 by 11,899 openings or 4.6 percent. Governor Scott said, Another growing month for job demand in Florida is great news for Florida families, and these 273,000 job openings mean even more Floridians will have an opportunity to get a job and support their family. With more than 620,000 private sector jobs created since December 2010, it is clear that our job creation efforts are working. Florida Department of Economic Opportunity Executive Director Jesse Panuccio said, August was another strong month for job demand in Florida just one of many indicators showing the positive turnaround in Florida s economy over the last few years. Job demand is growing and Florida families are getting back to work. Florida s online job ads have increased by 120,497 openings, or 78.9 percent, since April 2009, when the number was the lowest, with 152,784 openings. Florida was also noted as having the largest gain in online job demand over the month among large states in the South. According to the Help Wanted OnLine data series, online job demand was highest in the large metro cities, led by Miami, Tampa, Orlando, Jacksonville, and Ft. Lauderdale. Among cities with the most openings, the highest percentage gain over the year was West Palm Beach with 23.7 percent growth. Major occupational groups with the most online ads in August were sales and related occupations, office and administrative support occupations, healthcare practitioners and technical occupations, and management occupations. About DEO Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 14 of 86

18 The Florida Department of Economic Opportunity combines the state s economic, workforce, and community development efforts. This new approach helps expedite economic development projects to fuel job creation in competitive communities. For more information, including valuable resources for employers and job seekers, please visit Gov. Scott: Our Fight to Hold the Line on College Tuition Will Save Families an Estimated $700 Million On September 4, 2014, in News Releases, by Governor's Press Office Governor Rick Scott applauded the Florida Prepaid College Board s historic vote today to reduce plan rates by up to 50 percent, thus saving Floridians millions of dollars. Approximately 18,000 Florida families who have purchased plans since 2008 will receive reimbursements worth $200 million. An additional 22,000 Florida families will have their monthly premiums reduced by a combined $700 million because of the lower rates. Governor Scott said, Reducing Florida Prepaid rates by undoing the previous administration s tuition hikes was a critical step toward our goal of keeping college affordable. As I travel throughout our state, parents tell me they want to be able to save for their child s future and this is another way we re making higher education more affordable for Florida families. Every child should have the opportunity to earn a degree at an affordable price so they can live their dream. These reductions are possible because of House Bill 851, which passed during the 2014 Legislative Session and was signed by Governor Scott because it would lower the cost of tuition for all Floridians. The law reduced the maximum annual increase of the tuition differential fee to six percent for pre-eminent State Universities (Florida State University and the University of Florida) and eliminated it for other State Universities. The cost of tuition and fees in 2007 was less than $15,000, but skyrocketed to nearly $54,000 in 2014 after several years of double digit increases in the tuition differential fee. In 2015, with the new law and reductions approved today by the Florida Prepaid Board, the newborn plan cost is anticipated to be $27,000 or less. GOV RICK SCOTT: PER STUDENT SPENDING WILL BE HIGHEST IN FLORIDA HISTORY NEXT YEAR On August 21, 2014, in News Releases, by Governor's Press Office Will propose an increase in total state funding for education to over $19.6 billion Governor Rick Scott said, I am proud to announce that in the upcoming legislative session we will propose an increase in Florida s per-pupil spending to the highest level in our state s history. We already have the highest total spending in K-12 this year and gave every teacher the opportunity for a pay raise. Because we were able to get Florida s economy back on track, revenues are now projected to stay at a strong enough rate to support historic investments in education. Florida job growth, and the overall growth of Florida s economy has made it possible for us invest record amounts in education. The credit for our historic investment in education goes to the hard working people of Florida who make it all possible. Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 15 of 86

19 My mom taught me that a good education was the way out of poverty and I want all Floridians to have the opportunity to receive a great education and have their shot at the American Dream. By increasing per pupil spending to historic levels next year, school districts will have more resources to provide Florida children the best education possible. The Governor s proposal would equate to a total of over $19.6 billion, which means $7,176 per student a $232 per student increase over this school year and a $50 increase over the per student funding level of $7,126, the previous record high level. Florida s Revenue Estimating Conference for the General Revenue Fund met on August 7, 2014 and Floridians will see sustained revenues. Florida is projected to have a growth of nearly $1.1 billion over the latest revised forecast. Governor Rick Scott Awards Three Businesses with Governor s Business Ambassador Award On August 19, 2014, in News Releases, by Governor's Press Office During today s meeting of the Florida Cabinet, Governor Rick Scott recognized Comfort Keepers, Mettron Contracting, and LBS South with the Governor s Business Ambassador Award for their commitment to creating jobs. The Governor s Business Ambassador Award is given to individuals for their efforts in creating jobs and opportunities for Florida families. Governor Scott said, I am honored to present these three Florida businesses with the Governor s Business Ambassador Award. With an unemployment rate of 6.2 percent, businesses like Comfort Keepers, Mettron Contracting, and LBS South, have helped create an opportunity economy in the Sunshine State. Let s keep working to ensure every Floridian has the opportunity to live their version of the American Dream. The following businesses received the Governor s Business Ambassador Award: Comfort Keepers Comfort Keepers is an in-home health care provider where caregivers travel to clients homes to provide care and living assistance services. Kathryn Murphy opened Comfort Keepers first Jacksonville location in 2002 and her firm has grown from a staff of two to more than 75 employees. Kathryn opened a second Comfort Keepers location in 2007 and will be opening her third next month. Prior to her work with Comfort Keepers, Kathryn served on active duty in the United States Navy for 24 years where her assignments ranged from clinical nursing to hospital administration. In 2013, Kathryn was one of nine women in Florida to receive the Florida Achievement Award by the Florida Commission on the Status of Women. She has also been featured in Florida Trend magazine and was recently selected as a Veteran of Influence, by the Jacksonville Business Journal. Mettron Contracting Mettron Contracting is a minority owned business with offices in Orlando and Tallahassee that provides services in the areas of commercial plumbing, underground water, storm water, fireline and sewer installation. The company was founded 12 years ago by Sharen and Caleb Hannah. Sharen Hannah, a civil engineer and attorney, runs the administrative side of the business, while her husband Caleb works at job sites, overseeing project management, safety, and quality control. Mettron recently completed a large construction management project on the campus of Florida A&M University, and is currently working on the Citrus Bowl Renovation project in Orlando. Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 16 of 86

20 LBS South LBS South is a recognized leader in the distribution and support of quality, environmentallyfriendly school and commercial buses. The Leonard family got their start in the bus industry in 1965 when they opened Leonard Bus Sales. In 2012, Mike Leonard formed a new company, LBS South, which is headquartered in Jacksonville. Since then, LBS has expanded its service capabilities to the entire State of Florida, adding employees to its Jacksonville facility and opening a new location in Broward County. The Leonard family has been recognized as a leader in the bus industry, recently winning the IC Bus Eastern Region Dealer of the Year award for 2011, the Pursuit of Excellence Award for 2012 and the 2013 Trans Tech Dealer of the Year Award. Kathryn Murphy RN, President/CEO, KRM Resources LLC dba Comfort Keepers, said, It is truly an honor that Governor Scott has recognized the hard work that my staff at Comfort Keepers has done over the years. We are in a persistent mode to hire the most dedicated, motivated and professional home care providers to meet the growing need for our services. The Governor recognizes the many challenges small business owners face each day. The more qualified staff I can hire, the more needs of the community I can meet while at the same time providing employment for many individuals. This eventually helps to improve the economy. It is truly a win-win and I am thrilled that I can make a positive impact! Mettron Contracting Founders Caleb and Sharen Hannah said, We thank Governor Scott and his team for recognizing our dedication and efforts in this community. We hope that in some way we have been a good role model to those that are current business owners or desire to become business owners. We believe small businesses are important to our state and business diversification builds a stronger community! LBS South CEO Mike Leonard said, The entire team at LBS South is honored to receive this award. We pride ourselves on being a real partner and trusted advisor to school districts across the state. We thank the governor for recognizing this commitment and including us in this honor. Gov. Scott: Florida Tourism On Pace for Another Record Year On August 19, 2014, in News Releases, by Governor's Press Office Tourism-Related Employment Has Lead the State in Growth for 52 Straight Months Today, Governor Rick Scott announced that according to VISIT FLORIDA s preliminary estimates* 24.0 million visitors came to Florida in the second quarter of 2014 (April-June), an increase of 3.0 percent over the same period in This represents the largest second quarter for visitation Florida has ever experienced, exceeding the previous high of 23.3 million in Q Visitor spending is up 7.4 percent in January through May 2014, at $35.7 billion, which is more than the same time period in Governor Scott said, A thriving tourism industry is vital to growing jobs, and today s report that Florida has experienced another record quarter for visitation is great news for Florida families. This year we invested $74 million into VISIT FLORIDA, and set a goal to have 100 million visitors visit the Sunshine State, which we are well on our way to reaching. Together we are creating an opportunity economy, and continuing to grow more jobs for Floridians with more than 1.1 million individuals employed in the growing tourism industry. Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 17 of 86

21 The average number of direct travel-related jobs in Q was also a record high, with 1,151,400 Floridians employed in the tourism industry an increase of 3.9 percent or 43,600 jobs from the same period in VISIT FLORIDA estimates that 2.8 million overseas visitors and 1.0 million Canadians came to Florida in Q2 2014, both of which are record highs and represent 6.2 percent and 1.6 percent increases over Q respectively. Estimates reflect a 2.6 percent increase in domestic visitors to Florida in Q and show that Floridians took just over 3.7 million in-state pleasure trips during the second quarter. Experiencing the largest second quarter for tourism in our state s history, including a record number of tourism-related jobs, proves that this industry continues to be a vital force in Florida, said Andrew Hertz, Chair of the VISIT FLORIDA Board of Directors. These records also emphasize the power of tourism as a way to sustain Florida s economic growth. Tourism and recreation taxable sales for Florida grew year-over-year for January-May 2014 (last reported month), representing a 7.4 percent increase over the same period in Bed Tax also increased year-overyear for January-April 2014 (last reported month), representing a 10.1 percent jump over the same period last year. Other indicators were up for Q as well, with the average daily room rate (ADR) rising 7.0 percent, the occupancy rate for Florida hotels increasing 4.8 percent and the demand in rooms sold growing 5.5 percent compared to quarter two Florida tourism is maintaining strong momentum with all indicators up across the board for the quarter, said Will Seccombe, President and CEO of VISIT FLORIDA. With occupancy, rooms sold, average daily room rate and tourism and recreation taxable sales all continuing to climb, we are well on our way to making Florida the No. 1 travel destination in the world. To view additional Florida visitor data, please go to the Research page on VISIT FLORIDA s media website. *Preliminary estimates are issued 45 days after the end of each calendar quarter. Final estimates are released when final data are received for all estimates in the report. Gov. Scott: Florida creates 2,100 private-sector jobs in July On August 15, 2014, in News Releases, by Governor's Press Office Governor Rick Scott today announced that Florida created 2,100 private-sector jobs in July Since December 2010, Florida s private-sector businesses have added 620,300 jobs for Florida families. The statewide unemployment rate for July 2014 is 6.2 percent, down 1.1 percentage points from the July 2013 rate of 7.3 percent and unchanged from last month. Governor Rick Scott said, Florida s private-sector created more than 2,000 jobs for Florida families in July, bringing total private-sector job creation since December 2010 to 620,300. Every new job positively impacts a family, and today s announcement is more great news for Florida families looking to live the American Dream in the Sunshine State. Florida continues to see positive job growth highlighting our economic recovery, so let s keep working to make sure every Floridian who wants a job can get one. Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 18 of 86

22 Since December 2010, Florida s unemployment rate has dropped 4.9 percentage points, from 11.1 percent down now to 6.2 percent in July Florida s unemployment rate has declined or held steady over the month for 45 of the last 47 months. Department of Economic Opportunity Executive Director Jesse Panuccio said, Florida s economy continues to improve as we implement policies that support a pro-growth business climate. Job creators, responding to our low-tax, streamlined regulatory environment, added 2,100 more jobs to Florida s private sector in July. We will continue to develop policies that promote economic growth and prosperity in our state. The long-term positive trends in the unemployment rate and job counts are among the most important economic indicators to consider when analyzing the health of Florida s economic recovery. The state s private-sector job counts have been steadily on the rise for over three years, showing that Florida s businesses are responding to the state s improving economic climate. Since December 2010, the state has added 620,300 private-sector jobs. More Floridians Getting Back to Work Florida s annual job growth rate has exceeded that of the nation since April Florida s private sector job growth month-to-month has been positive for 41 of the last 44 months. Florida has created 620,300 new private sector jobs since December Florida job postings compiled by the Help Wanted OnLine data series from The Conference Board showed 261,382 openings in July Home Sales Robust Home sales remain robust as the backlog of existing homes on the market is down by 32.5 percent from December 2011 (Florida Realtors). Florida median home prices were up 5.2 percent over the year in June Workforce Boards Assisting in Employment In July, Florida s 24 Regional Workforce Boards reported more than 39,100 Floridians were placed in jobs. An individual who receives employment and training assistance through a CareerSource Center and finds a job within 180 days is deemed a placement and may be reported by a regional workforce board. Of these individuals, 8,040 previously received Reemployment Assistance. In 2013, more than 479,000 Floridians were placed in jobs, with 135,384 former claimants finding employment. To view the July 2014 employment data visit GOVERNOR SCOTT ANNOUNCES DESIGN INTERACTIVE TO CREATE 20 JOBS IN ORLANDO On August 14, 2014, in News Releases, by Governor's Press Office Small business expansion will create at least 20 jobs and a capital investment of $800,000 Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 19 of 86

23 Today, Governor Rick Scott announced that Design Interactive will expand in Orange County. The company specializes in human-systems integration, including human performance assessment, training systems design and evaluation and usability engineering for the defense industry, other federal agencies and the commercial sector. The project will create at least 20 high-wage engineering and support positions and a capital investment of $800,000. Governor Scott said, Design Interactive s expansion is great news for Florida families, and 20 new jobs will be created for families in the Orlando area. With the help of businesses like Design Interactive, we are continuing to build an opportunity economy in Florida. Let s keep working so Florida families and businesses have every opportunity to succeed, invest in their future and live the American Dream. Founded in 1998 as a woman-owned small business by Kay Stanney, Design Interactive creates software solutions that are commercial, research and government contract-related. The jobs created as a result of this expansion will be mostly Ph.D.-level jobs that specialize in human-systems integration research and development (R&D). As a result of its expansion, Design Interactive is moving its operations to a larger facility in Orlando after also considering Virginia and Washington D.C. Due to our strong, continued growth over the past three years, we are looking to add design, engineering and computer programming staff to our vibrant team, said Stanney, President of Design Interactive. Design Interactive s human-systems R&D focuses on providing adaptive, engaging solutions that optimize human performance and profoundly enhance the user experience. To compete on a national level, Design Interactive employs a team drawn from a variety of industry experience and academic backgrounds, including a software team, psychologists, human factor engineers, computer engineers and industrial engineers. Florida consistently ranks among the top five states in the nation in the receipt of Department of Defense contract awards. Florida defense and homeland security industry boasts more than 50,000 current defense professionals, more than 42,000 active duty military and large numbers of former military and NASA personnel comprise our impressive pool of workers with the skills and security clearances in demand by industry employers. Florida is home to one of the nation s largest defense and homeland security industries, and few states can even come close to matching the scale and scope of our network of major contractors and suppliers, said Secretary of Commerce Gray Swoope, who serves as President and CEO of Enterprise Florida. The expansion of Design Interactive in Orlando is proof that Florida has the workforce and perfect business climate for companies to succeed. This project was made possible with the help of close partnerships between Enterprise Florida, the Orlando Economic Development Commission, Orange County and the Florida Department of Economic Opportunity. Florida s skilled labor force and strong support for the defense and homeland-security industries have created an opportunity economy for businesses like Design Interactive. Design Interactive s decision to expand in Orlando will further Florida s reputation as a military-friendly state, said Jesse Panuccio, Executive Director of the Florida Department of Economic Opportunity. We are thrilled to have Design Interactive become a part of the Orange County community, said Orange County Mayor Teresa Jacobs. We have the world s largest cluster of Modeling, Simulation and Training companies and this project really adds to that incredible asset. Small businesses are the backbone of our economy, and we look forward to working with Design Interactive as they grow their business. Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 20 of 86

24 Orlando is the global capital for Modeling, Simulation and Training, with companies working alongside both military and commercial partners. Design Interactive s expansion to grow its commercial customer base is evidence of the incredible synergies between industry, military and academia that are driving this industry s strength in our region, said Rick Weddle, President and CEO of the Orlando Economic Development Commission. *** Design Interactive is a certified woman-owned small business. Founded in 1998, Design Interactive Specializes in human-systems integration, including Human Performance Assessment, Training Systems Design and Evaluation, Cognitive Readiness, and Next-Generation HSI. In 2009, Design Interactive was named one of Central Florida s top woman-owned businesses by the Orlando Business Journal. Enterprise Florida, Inc. (EFI) is a partnership between Florida s businesses and government leaders and is the principal economic development organization for the state of Florida. EFI facilitates job growth for Florida businesses through recruitment and retention, international trade and exporting, promotion of sporting events, and capital funding programs to assist small and minority businesses. Orlando Economic Development Commission (EDC) is a not-for-profit, public-private partnership that attracts, retains and grows jobs for the region. The EDC serves Orange, Seminole, Lake and Osceola counties and the City of Orlando in Florida. Since its start in 1977, the EDC, with the support of its community partners, has assisted thousands of companies relocate and expand in the four-county Orlando region. This has led to more than 176,750 jobs announced; $9.5 billion in capital investment; and more than 79.7 million square feet of office and industrial space leased or constructed. For more information, visit Governor Scott Announces $806.7 Million for Six Transportation Projects On August 14, 2014, in News Releases, by Governor's Press Office Projects include I-75 in the Tampa Bay region, I-95 in Daytona Beach, US-41 in the Sarasota area, SR 821 in Miami-Dade, I-295 in Jacksonville and SR-30 in Bay County Today, Governor Rick Scott announced the advancement of more than $806 million for six major transportation projects throughout the state that will enhance safety, relieve congestion and increase mobility for Florida s families. Projects slated for advancement include I-75 in the Tampa Bay region, I-95 in Daytona Beach, US-41 in the Sarasota area, SR 821 in Miami-Dade, I-295 in Jacksonville and SR-30 in Bay County. Governor Scott said, Our economy is strong and growing. Because of our growth, we were able to secure more than $10 billion for transportation projects, which is the largest transportation funding ever in Florida history. Today, we re proud to announce that with this historic funding, we will advance more than $806 million in critical transportation projects across Florida. These projects will enhance our infrastructure to support commerce, decrease commute times and make our roads safer for families. Northwest Florida: $95 million to add lanes and reconstruct SR 30 (US 98) at SR 368/23 rd Street intersection Phase I and II in Bay County to relieve congestion with elevated eastbound and westbound roadways. There was no definitive start date for the project and now it is slated to begin in Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 21 of 86

25 Northeast Florida: $179.5 million to add lanes and reconstruct I-295 (SR 9A) in Duval County from SR 202/J. Turner Butler Boulevard to SR 9B (Managed Lanes) to increase traffic capacity, mobility of people and goods and to relieve congestion. Through the advancement of funding, this project s starting date moved from 2017 to West Central Florida: $89.5 million to add lanes and reconstruct I-75 (SR 93) from South of US 98/SR 50/Cortez to North of US 95/SR 50/Cortez in Hernando County to enhance commerce and provide interregional connectivity along one of the most critical corridors of the state from the Tampa Bay Region to the Georgia State line. There was no definitive start date for the project and now it will begin in East Central Florida: $255 million to add lanes on Interstate 95 from 0.5 miles North of State Road 44 to 1.6 miles North of US 92 in Volusia County to increase safety and efficiency for merging, exiting and throughtraffic in Daytona Beach. Through the advancement of funding, this project s starting date moved from 2020 to Southwest Florida: $32.7 million to add lanes and rehabilitate pavement on US 41 (SR 45) from Enterprise Drive to Sarasota County Line in Charlotte County to promote opportunities of growth and stability in this area. There was no definitive start date for the project and now it is slated to begin in Southeast Florida: $155 million to add lanes and reconstruct SR 821 from Bird Road to SR 836 (Dolphin Expressway) in Miami-Dade County to include express lanes and interchange improvements that will relieve congestion, enhance access and provide motorists with alternatives. Through the advancement of funding, this project s starting date moved from 2017 to FDOT Secretary Ananth Prasad said, Thanks to Governor Scott s continued investments in our transportation system, we are able to make key improvements to strengthen Florida s roadways. These six major transportation projects will further boost our infrastructure throughout the state. In June, Governor Scott signed his It s Your Money Tax Cut Budget with a strategic investment of $10.1 billion to improve Florida s infrastructure including the largest Florida Department of Transportation work program in state history. GOV. SCOTT SURPASSES $100 MILLION IN SPRINGS PROJECTS On August 8, 2014, in News Releases, by Governor's Press Office Today the Florida Department of Environmental Protection proposed $69 million in springs projects leveraged by the $30 million Governor Scott secured in the It s Your Money Tax Cut Budget to bring the total invested in springs projects to more than $100 million in the last two years. During this year alone, DEP has developed a project plan to support nearly $70 million in springs restoration projects. Governor Scott said, We fought last session to secure funding for protecting and restoring Florida springs. These nearly $70 million in projects that DEP is proposing will restore water quality, protect water flow and reduce water consumption. We look forward to working with the Legislature and local partners in doing what it takes to protect our state s natural resources. Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 22 of 86

26 I would like to thank Governor Scott for his leadership in providing record-setting funding for springs restoration. Our Florida Legislature, the water management districts and local elected officials continue to show their commitment to protect and restore springs throughout the Sunshine State, said DEP Secretary Herschel T. Vinyard Jr. We look forward to the Legislative Budget Commission approving this great plan that will enable state and local partners to protect the quality and quantity of water that flows from our springs. The project plan is a collaborative effort with the department, water management districts, community leaders and local stakeholders, and the contributions and cooperation of these agencies and individuals have been crucial throughout the development process. Combining efforts and resources from various agencies across Florida allows for more efficient, more comprehensive water restoration. Selected projects benefit the following springs and spring systems. Northeast Florida Fanning Ichetucknee, Santa Fe and Suwannee Rivers and associated springs Levy Blue Northwest Florida Econfina Holmes Creek Jackson Blue Wakulla Central Florida Blue Silver Wekiva Southwest Florida Aripeka Chassahowitzka Crystal Panasofkee The health of our springs is a top priority of the Department. Protecting these natural resources by identifying and funding springs projects is critical to their protection and restoration, said Drew Bartlett, Deputy Secretary for Water Policy and Ecosystem Restoration. These projects illustrate what can be accomplished when the state invests wisely to support and supplement department and water management district restoration programs. The objective of the project plan is to effectively address water quality and water quantity by supporting both urban and agricultural projects across the state in geographic regions of the state where springs occur in the natural landscape. The projects were selected based on pollutant reduction, water quantity conservation, cost effectiveness and available matching grant funding. Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 23 of 86

27 TODAY S GUEST SPEAKER GORDON A. SMITH Executive Director & Chief Operating Officer United States Tennis Association Gordon A. Smith is the Executive Director and Chief Operating Officer of the USTA, a post he assumed in November He works out of the association's national headquarters in White Plains, N.Y. Under Smith's leadership, the USTA staff of more than 300 has grown and expanded, cultivating a new working culture that embraces teamwork to create a more high-performing team. He has also overseen the introduction and rollout of the USTA's historic 10 and Under Tennis initiative, designed to introduce more young players to the game, and the overhaul of the USTA's Player Development program. Furthermore, Smith has also been at the helm for the unprecedented growth of the US Open, which has posted four of its top five annual attendance and revenue marks during his tenure. Smith has overseen the addition of the Indoor Training Center and Court 17, the US Open's fourth show court and is currently overseeing the unprecedented transformation of the USTA Billie Jean King National Tennis Center which will include a retractable roof over Arthur Ashe Stadium, two additional new stadiums and a complete revamp of the entire ground. Prior to his appointment, Smith served three years as Vice President on the USTA Board of Directors and, previously, as Director at Large from 2003 to His USTA volunteer positions included posts as Chair of the Constitution and Rules Committee and as Vice Chair of the Grievance Committee. He also served as Board Liaison to the Sections and to the Community Player Council as well as serving on the Budget, Compensation, Public Affairs and Strategic Planning committees. In addition, he served on the board of the USTA Serves, the national charitable foundation of the USTA. Smith attended the University of Georgia, where he earned his bachelor of arts in journalism and his law degree. Following law school, he clerked with the federal judiciary before joining the Atlanta law firm of King and Spalding, where he served as a senior partner in the 800-lawyer firm. Smith is a member of the American College of Trial Lawyers and was listed in the publication The Best Lawyers in America for many years. Smith has long been connected to tennis as both a player and a volunteer. He played competitively as a junior and captained a tennis team at Georgia that swept four straight Southeastern Conference titles from 1972 to (He was the SEC doubles champion in 1975.) A Past President of the USTA Southern Section, Smith was an active member of the section for the better part of two decades, serving as Southern Section Counsel, Vice President, Delegate at Large and a member of many of the section's committees. He has also served on the boards of the Southern Tennis Patrons Foundation and the Georgia Tennis Foundation, and in 1996 he received the Jacobs Bowl Award as the Southern Section's Outstanding Volunteer. Smith, 58, and his wife, Jane, have three children. They live in New York City. Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 24 of 86

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29 DRAFT Minutes of a Regular Meeting of the Enterprise Florida Board A regular meeting of the Enterprise Florida, Inc. (EFI) Board of Directors was held on August 7, 2014 in Sarasota, Florida. Members Present: Others Present Staff Present: Lee Arnold Marlin Hutchens Rich Broome (The Hertz Corp.) Shereena Dann Jeff Atwater Dwayne Ingram Paul Plofchan (for Luis Orbegoso) John Krug Alan Becker Brian Lamb Scott Williams (for Bill Heavener) Al Latimer Mark Bensabat Rhea Law Louis Laubscher Jesse Biter Fred Leonhardt Noreen Levitt Park Brady Marion Mathes On the phone: Melissa Medley Jeff Chamberlain Bob McAdam Jay Beyrouti Manny Mencia Stan Connally Hal Melton Mike Hightower Simone Miller Andy Corty Joe Meterchick Belinda Keiser Griff Salmon Brett Couch Gilberto Neves Chris Kise Crystal Sircy Carol Craig Adam Putnam Win Phillips Rob Sitterly Marshall Criser III Jon Rambeau Gray Swoope Hayden Dempsey Henry Rodriguez Neal Dunn, MD, FACS Gene Schaefer Sheldon Fox Eric Silagy David Fuller Kelly Smallridge Danny Gaekwad Bob Swindell Gordon Gillette Dave Walsh Alex Blenn Agenda: I. Welcome & Roll Call II. President s Update and Q&A III. Success Story IV. Stakeholders Meeting Recap V. Board Breakout Session VI. Breakout Group Reports VII. Action Items VIII. Public Comment IX. Closing Remarks & Adjournment PROCEEDINGS A quorum being present, Vice Chairman Brett Couch called the meeting to order at 8:40 a.m. (EDT). Couch gave an overview of the meeting agenda, which focused on continuous improvement, and included a presentation by the Hertz Corporation s Rich Broome, a recap of the Stakeholders Council meeting and a summary of the scheduled board member breakout session. President s Update Enterprise Florida President and CEO Gray Swoope thanked everyone for their continuing support of economic development, particularly the board of directors, stakeholders, communities leaders, and Governor Scott. He noted that this year s achievements were the result of Enterprise Florida s 2011 strategic and deliberate goal to elevate Florida to new level of success Page 25 of 86 1 P age

30 DRAFT Minutes of a Regular Meeting of the Enterprise Florida Board Swoope began by reminding board members of the three leverage points for job creation: competitive projects, facilitated growth and market driven growth. He noted that in a state with a $777 billion economy and nearly 20 million people, there are natural market opportunities. To increase market driven growth, the state has focused on ways to make it easier for companies to do business in Florida. In the area of policy, the legislature approved the elimination of the sales tax on manufacturing machinery and equipment. In government efficiency and removal of regulations, DEP has reduced its permitting approval process from an average of 79 days down to 33 days. In access to capital, the legislature passed a $10 million microloan program this last session. Swoope informed members that the state s facilitated growth strategy includes increasing tourism. VISITFLORIDA reported 95 million visitors a record-setting year for tourism. Enterprise Florida s Minority and Small Business, Entrepreneur and Capital MaSBEC) program leverages state programs to give small businesses opportunities in Florida. Florida Sports has a big impact in the state, awarding a record 109 grants last year, which created a return of $663 million in economic impact, brought 700,000 visitors, and created more than 8,235 jobs. The International Trade & Development team, which plays a huge role in facilitated growth, experienced a 75% increase in trade mission participation. Swoope stated that Enterprise Florida had a record-breaking year, reporting 36,207 total jobs created from competitive projects, which was the highest number ever, representing a 44% increase over the last fiscal year. He said it is important to look at how many of those jobs are new jobs, not just retained jobs. The 23,864 new jobs created was an 18% increase over the last fiscal year. Capital investment was up 41% to $2.785 billion, and the average wage increased 20%, from $52,000 per year to $63,000 per year. The leading sectors for competitive projects in terms of jobs were information technology and life sciences two sectors that Florida made a conscious decision to aggressively pursue years ago. Swoope informed the board that although the manufacturing sector share looks low, manufacturing really runs through several industries. For instance, many aviation/aerospace projects actually represent manufacturing jobs. The aviation/aerospace industry generated the most capital investment, with a 31% share. Swoope reminded the board of Enterprise Florida s deliberate efforts to improve the economic development process in the state. He quickly reviewed each of the steps in the economic development project process, and then commented on them individually. He said the previous day s meeting of the Stakeholder Council focused on a review of the state s competitiveness approach. The council is working on a continuous improvement plan for competitiveness, which will also be the focus of the board breakout session. He noted that the $1.4 million Perfect Business Climate Campaign created over 57 million impressions since inception. The campaign is focused on telling the Florida story to decision makers. The marketing team s proactive strategy has led to five site selection events, 15 positive media stories about Florida as a business destination, an update of sales materials, a redesign of the Enterprise Florida website, and the creation and launch of a statewide sites and buildings database. Swoope communicated that strategic relationships are an important part of the economic development process. He announced that five new investors were added to the board this fiscal year, leading to a record-setting $1.72 million in private investment. The organization also reached out to its partner communities, holding eight regional training sessions around the state. The Florida Defense Task Force facilitated monthly Defense Support Task Force meetings and administered several grant programs to support military bases and communities throughout the state. Swoope went on to say that economic development is a team sport in the early stages of working a project EFI determines what key people outside the organization can add value and involves them in the Page 26 of 86 2 P age

31 DRAFT Minutes of a Regular Meeting of the Enterprise Florida Board process. He noted that Enterprise Florida has worked to develop the professionalism of the sales team through sales training and has improved its tools to sell the state, which are now available as ibooks and ipad apps. The collaboration between Enterprise Florida and Florida agencies is better than ever before, particularly with the Department of Economic Opportunity. Partner agencies are involved in projects from the very beginning, which has led to a more seamless process. Swoope mentioned the hard work of the communications and administrative teams at Enterprise Florida. The communications team is called on to handle project announcements, press releases, industry profiles and custom articles about Florida companies. The team also created and launched an online newsroom that has experienced a 412% increase in visitors compared to the same four-month period last year. The administrative team has handled six audits this year and was instrumental in consolidating four offices in Tallahassee to one that is located in close proximity to the Capitol. Swoope closed by noting that Enterprise Florida visited every part of the state this last fiscal year. He said plans for next year include maintaining positive momentum, continuing to win game-changing projects, increasing the financial incentives toolkit, and securing a dedicated marketing budget to tell the Florida story. Success Story Rich Broome, Executive Vice President of the Hertz Corporation, briefed the board on his company s recent relocation to southwest Florida. As background, Broome said that Hertz had decided that upon completion of their acquisition of Dollar Thrifty they would choose a neutral third site for their corporate headquarters. Dollar Thrifty was headquartered in Tulsa, Oklahoma and Hertz was headquartered in Park Ridge, New Jersey. For a variety of reasons, they did not think either of these locations would work as a location for the combined companies. When the acquisition was finalized in November 2012, Hertz began its site selection process. Broome stated that Florida emerged rather quickly as the winner because of its business climate; major tourism industry which represents a large segment of Hertz s target market; and good quality of life. Broome and the Hertz team were impressed with the way Fort Myers convinced Hertz that they really wanted the project in their community, and would continue to help Hertz assimilate after the project was announced. He noted that they have followed through on their promise. Broome admitted there was some skepticism as to whether many of their headquarters staff would opt to relocate to Southwest Florida, or whether they would be able to find local talent to meet their needs. He said the skeptics were wrong on both accounts. Today, Hertz has over 325 employees working in two temporary offices while their new headquarters is being built in Estero, Florida. They have a process in place to accelerate their hiring so that they will be at their target of 700 employees when they move into their completed location. Broome confessed that their one mistake was not fast-tracking their relocation process for fear of finding local talent. To the contrary, they have been very successful in finding local talent and recruiting top-level management personnel from all over the country. Broome confirmed that the economic development process in the state is working very well, and is underpinned by a great business climate, great quality of life, and a great education system. Stakeholders Meeting Recap Kelly Smallridge, Stakeholder Council Vice Chair, presented a summary of the brainstorming ideas resulting from the Stakeholder Council meeting. In the area of Cost of Doing Business, some of the suggestions offered by the Stakeholders were a sales tax exemption on electric consumption for large IT centers; a phasing out of sales tax on commercial leases; shifting to a single sales factor apportionment for capital intensive projects in targeted sectors, Page 27 of 86 3 P age

32 DRAFT Minutes of a Regular Meeting of the Enterprise Florida Board specifically manufacturing; and an increase funding and flexibility for programs that improve Florida s labor force. In the competitiveness area of Real Estate and Infrastructure, Stakeholders suggestions included: establish dedicated revenue source for economic development, such as a local option sales tax and business receipts tax; and redesign the Rural Areas of Critical Economic Concern initiative and revision the Rural Infrastructure program. The first suggestion in the area of Talent and Training was to revise the Quick Response Training program to do three new things: 1) include a variety of training methods, such as reimbursement of cost for online training; 2) consider covering administrative training costs; and 3) provide a lump sum grant award. The second suggestion was to expand and improve industry relationships to better understand industry workforce needs. The third suggestion was to better understand and promote existing talent assets. There were three suggestions related to Incentives: streamline and simplify incentive programs, keeping the speed and processes of businesses in mind when making recommendations; increase economic development incentive toolkit funding; and increase the size of the Closing Fund award the Governor can authorize. In the area of Economic Development Strategy and Branding, the Council suggested developing a plan to request and secure ongoing funding to promote Florida as a business superstate, including a legislative budget request for $10 million in recurring funds; providing a better understanding of Florida s workforce story: what we have to offer, business successes, and key selling points particularly those in targeted industries, and utilizing them to communicate to business prospects that Florida has the workforce and business ecosystem that they need to succeed; and integrating the business community into the marketing and communications effort to promote Florida for business, creating a community of business leader champions to promote Florida as a great place to do business. Economic Development Administration received the following suggestions: increase the number of EFI project manager positions; further improve communications and collaboration between EFI, local economic developers, and the legislative delegation; and integrate the private sector into EFI business recruitment efforts. Board Breakout Session Alan Becker introduced Mark Sweeney, a principal of the site selection and incentives negotiation firm, McCallum Sweeney Consulting, who provided an abbreviated version of the presentation he gave to the Stakeholders Council the day prior. Following Sweeney s presentation, Melissa Medley, EFI s Chief Marketing Officer & SVP of Communications, announced that the board members would be broken into 6 breakout groups to discuss ways to improve the areas of recommendation from the study. The groups discussed the following areas of recommendation: 1. COST OF DOING BUSINESS 2. REAL ESTATE/INFRASTRUCTURE 3. TALENT/TRAINING 4. INCENTIVES 5. ECONOMIC DEVELOPMENT STRATEGY/BRANDING 6. ECONOMIC DEVELOPMENT ADMINISTRATION Page 28 of 86 4 P age

33 DRAFT Minutes of a Regular Meeting of the Enterprise Florida Board Breakout Group Reports Jesse Biter of Biter Enterprises, Inc., reported for the Cost of Doing Business work group. They categorized their recommendations as defensive or offensive suggestions. Their defensive recommendations included tort reform and the elimination of sales tax on commercial leases. Their offensive recommendations were an incentive for businesses to retain Florida s Bright Future scholars, mitigation for cumbersome federal permitting fees and continued improvement of the state permitting process, dynamic modeling of proposed tax reforms, and embracing new technologies. Commissioner of Agriculture & Consumer Affairs Adam Putnam presented for the Real Estate and Infrastructure team, commenting that said that Florida needs to do a better job of developing certified sites. Putnam relayed that when it comes to rural initiatives, it is important to distinguish between exurban areas that have the ability to tie in to infrastructure and resources of an urban area, and truly rural areas. He said it is important to engage the truly rural players. Other recommendations were to set aside county distinctions and take a regional approach to identifying and landing new opportunities; develop and use real life examples and experiences as case studies of what to do better to land projects; emphasize all of our strengths, not just financial incentives in our toolkit; and finally, create a master plan for how to leverage the RESTORE Act monies to benefit economic development. Neal Dunn of Summit Bank, N.A. spoke for the Talent and Training group. In terms of the QRT program, the group recommended that it be more flexible, and updated to accommodate new technology in training platforms. They suggested the use of benchmarking as a means to be more competitive with other states. Specific recommendations were that payment be allowed for training, trainers, and trainer travel; and a lump sum payment with fewer strings attached to how the monies are expended. Another recommendation was that there be a clearinghouse for regional workforce needs so that existing, not just new, employers are communicating their workforce needs to community colleges and high schools. The group also suggested leveraging the Florida GI Bill for transitioning military personnel to the civilian workforce. Further, they suggested a system whereby military skills and talents were laddered over to industry certifications. Dunn recommended advertising talent needs on social media outlets, where college students and graduates are more likely to visit. Finally, the group recommended providing incentives be offered to businesses to help fund internship programs. The Incentives group was represented by Carol Craig of Craig Technologies. She reported that their group agreed largely with the recommendations of the Stakeholders Council. The first of their three recommendations was to streamline and simplify incentives programs; perhaps create a graduated scale for measurements rather than the current all or nothing arrangement. The next recommendation was to increase the economic development toolkit funding and put more focus on programs for existing companies. The final recommendation was to increase the closing fund approval authorization of the Governor from $2 million to $5 million. Brett Couch of Regions Bank reported for the Economic Development Strategy and Branding group. Couch suggested that they could learn a lot in terms of best practices from VISITFLORIDA. The team explored the idea of how to partner with the tourism industry to interact with business leaders while they are in Florida on vacation. The second recommendation was to mimic VISITFLORIDA s successful strategies for securing recurring annual funding. Fred Leonhardt made the presentation for the final group, Economic Development Administration. One group member worked with his local economic development organization (EDO) to enlist investors to sponsor associates. Leonhardt said that getting more people involved in helping with projects is a key factor. The group suggested approaching industry experts in real estate, construction, and banking that might loan talent to the project management team to ease the burden on their resources. Another recommendation was to utilize technology to access a database that is common to all project contributors Page 29 of 86 5 P age

34 DRAFT Minutes of a Regular Meeting of the Enterprise Florida Board to keep up with project related tasks. Leonhardt also suggested increased communication and collaboration with EDOs, getting the private sector more involved, and the possibility of investors lending resources to the team as part of their commitment to Enterprise Florida. Becker suggested the Enterprise Florida staff analyze the recommendations and have specific proposals for the legislative policy committee meeting, and also report back to the board on initiatives that can or will be implemented. Public Comment None were offered Action Items Joe Meterchick made a motion to approve the minutes of the May 22, 2014 board meeting, which was seconded by Hal Melton, and approved unanimously. Approval of Consent Agenda 1. Renewal of Existing Investors Subsequent to board approval, the following companies will continue as at-large members of the Enterprise Florida board for a one-year term: Bright House Networks, LLC Duke Energy Florida Power & Light Co. Gulf Power Company Wells Fargo Bank, N.A. 2. New Company Representative Following approval, Bob Swindell, President and CEO of the Greater Ft. Lauderdale Alliance will become the Florida Economic Development Council s representative to the Enterprise Florida Board for a one-year term. 3. Financial Statements The board is asked to approve the 4 th quarter interim financial statements. 4. Staff FY 2013/14 Performance Results In accordance with EFI s Performance Plan Guidelines, the Finance & Compensation Committee recommends approval of an aggregate payout to staff not to exceed $765,000 for fiscal year ending June 30, EFI Budget for FY The board is asked to approve the 2014/2015 fiscal year budget for Enterprise Florida. Jesse Biter made a motion to approve the consent agenda, which was seconded by Kelly Smallridge, and approved unanimously. Alan Becker reported that the Finance and Compensation Committee considered the incentive performance compensation for the CEO for this year. The CEO contract calls for a base salary of $275,000 and an incentive based upon the performance of the organization in the preceding year. Becker stated that in the prior year the incentive compensation was capped at $70,000, but the contract has been amended to set the target incentive compensation at $100,000 with the ability to award more or less depending on achievement of goals. Becker informed the board that the incentive compensation is based on achievement of goals, which includes a contract with the Florida Department of Economic Opportunity (DEO) that sets out 52 Page 30 of 86 6 P age

35 DRAFT Minutes of a Regular Meeting of the Enterprise Florida Board contractual items that Enterprise Florida must achieve for the state. Enterprise Florida must achieve 95% of all items. This year the organization s actual performance was 97% of all items, and exceeded the contractual standard on almost every item. Beyond these contractual measures, Enterprise Florida sets its own standards, which are higher than the DEO contract measures. Becker reported that the organization performed above the stretch goals in nearly every measure. The Finance and Compensation Committee recommended to the Executive Committee, which in turn recommends to the full board, that the CEO be awarded $120,000 in incentive compensation. Becker pointed out that: 1) none of the incentive compensation is from state funds, and 2) a recent study showed that Enterprise Florida s CEO compensation was in the bottom half of comparable state positions, and was also below that of several of Florida s local economic development CEOs. Park Brady made a motion to approve the Finance and Compensation Committee recommendation that the CEO be awarded $120,000 in incentive compensation, which was seconded by Mark Bensabat, and approved unanimously. Closing Remarks Swoope thanked the board for its vote of confidence and for its time commitment to Enterprise Florida; Kelly Smallridge and all of the stakeholders and communities for their participation in economic development; and the EFI team. Couch thanked sponsors Florida Power & Light, Visit Sarasota, and the Economic Development Corporation of Sarasota County along with all of EFI s corporate investors. The next Enterprise Florida board meeting will be held September 30, 2014 in Orlando, Florida. Carol Craig made a motion to adjourn the board meeting, which was seconded by Gilberto Neves, and approved unanimously. The Enterprise Florida Board of Directors meeting adjourned at 11:22 a.m. (EDT). Submitted by: Gray Swoope, President & CEO Page 31 of 86 7 P age

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37 Enterprise Florida Board Meeting Consent Agenda September 30, 2014 Board members should notify the Vice Chair of any item on the list below they wish to have removed and voted on separately. Subsequent to such notification, the item or items will be pulled from the general approval list, then discussed and voted on after action has been taken on the Consent Agenda. Board members are not allowed to vote on their own reappointment or any issues for which they have a conflict of interest. Directors with an announced conflict of interest will be considered recused from these votes. CONSENT AGENDA 1. Annual Approval of Audited Financial Statements for FY 2013/ Renewal of Existing Investors Subsequent to Board approval, the following companies will continue as At-Large Members of the Enterprise Florida Board of Directors for a one-year term: Bank of America, N.A. Bright House Networks, LLC Craig Technologies Full Sail University Florida Power & Light Co. Harris Corporation GrayRobinson, P.A. The St. Joe Company JP Morgan Chase & Co Walt Disney Parks & Resorts, U.S. Walgreens 3. New Company Representatives Following your approval, Jorge Gonzalez, Senior Vice President of The St. Joe Company will become the firm s new representative to the Enterprise Florida Board of Directors. Following your approval, Jason Altmire, Senior Vice President, Public Policy and Community Engagement of Florida Blue will become the new representative to the Enterprise Florida Board of Directors. 4. FL Opportunity Fund Board EFI recommends the following individuals be added to the FL Opportunity Fund Board of Directors: Brian Nicholas - Executive Vice President & Manager of the Asset Resolution Group for Branch Banking & Trust Company ( BB&T ) Andy Hyltin Chief Executive Officer of South Street Capital Advisors 5. Nominating Committee Recommendations The Nominating Committee recommends the following officer slate for : Alan Becker to serve as Vice Chair for a two year term beginning in 2015 and ending During that same two year period (15-17), Stan Connally will serve as Vice Chair Elect, then, ascend to Vice Chair s position for a two year term, Enterprise Florida Board of Directors Meeting September 30, 2014 Page 32 of 86

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39 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES CONSOLIDATED FINANCIAL STATEMENTS For the Year Ended June 30, 2014 And Report of Independent Auditor Page 33 of 86

40 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES TABLE OF CONTENTS Page REPORT OF INDEPENDENT AUDITOR 1 2 CONSOLIDATED FINANCIAL STATEMENTS Consolidated Statement of Financial Position 3 Consolidated Statement of Activities 4 Consolidated Statement of Cash Flows 5 Notes to Consolidated Financial Statements 6 22 SUPPLEMENTARY INFORMATION AND OTHER REPORTS OF INDEPENDENT AUDITOR Consolidating Statement of Financial Position 23 Consolidating Statement of Activities 24 Schedule of Activities by Consolidated Entity 25 Report of Independent Auditor on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards Report of Independent Auditor on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A-133 and Chapter , Rules of the Florida Auditor General Schedule of Expenditures of Federal Awards and State Financial Assistance 30 Notes to Schedule of Expenditures of Federal Awards and State Financial Assistance Schedule of Findings and Questioned Costs Summary Schedule of Prior Audit Findings and Corrective Action Plan 36 Page 34 of 86

41 Report of Independent Auditor To the Members of the Board of Directors Enterprise Florida, Inc. Orlando, Florida: Report on the Consolidated Financial Statements We have audited the accompanying consolidated financial statements of Enterprise Florida, Inc. and consolidated entities (the Organization ), which comprise the consolidated statement of financial position as of June 30, 2014, and the related consolidated statements of activities and cash flows for the year then ended, and the related notes to the financial statements. Management s Responsibility for the Consolidated Financial Statements Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of consolidated financial statements that are free from material misstatement, whether due to fraud or error. Auditor s Responsibility Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the Organization s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Organization s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of the Organization as of June 30, 2014, and the changes in its net assets and its cash flows for the year then ended in accordance with accounting principles general accepted in the United States of America. Page 35 of 86

42 Emphasis of matter As discussed in Note 1 and Note 6, the consolidated financial statements include investments in venture capital partnerships and direct investments valued at $17,790,027 and $34,942,235, respectively, representing approximately 34% of net assets at June 30, 2014, whose values have been estimated by the Organization in the absence of readily determinable market values. The Organization s estimates are based on information provided by the venture capital partnerships and the fund manager of the direct investments. Due to the inherent uncertainty of these estimates, these values may differ significantly from the values that would have been used had a ready market for these investments existed, and the differences could be material. Other Matters Our audit was conducted for the purpose of forming an opinion on the consolidated financial statements as a whole. The consolidating financial statements and schedule of activities by consolidated entity listed in the foregoing table of contents are presented for purposes of additional analysis and are not a required part of the consolidated financial statements. The accompanying schedule of expenditures of federal awards and state financial assistance is presented for purposes of additional analysis as required by the U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and Chapter , Rules of the Auditor General, and is not a required part of the consolidated financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the consolidated financial statements. The information has been subjected to the auditing procedures applied in the audit of the consolidated financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the consolidated financial statements or to the consolidated financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the information is fairly stated, in all material respects, in relation to the consolidated financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated September 19, 2014 on our consideration of the Organization s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Organization s internal control over financial reporting and compliance. Orlando, Florida September 19, 2014 Page 36 of 86 2

43 CONSOLIDATED FINANCIAL STATEMENTS Page 37 of 86

44 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION JUNE 30, 2014 ASSETS Cash and cash equivalents: Operating $ 6,382,122 Limited as to use 138,836,224 Due from State of Florida 21,079,670 Accounts and loans receivable 4,960,167 Loan receivable under the State Small Business Credit Initiative 18,978,286 Prepaid and other assets 1,123,182 Leaseholds, furniture and equipment, net 768,362 Florida Opportunity Fund investments in venture capital partnerships 17,790,027 Florida Opportunity Fund direct investments: Clean Energy Investment Program 16,023,858 Florida Venture Capital Program 18,918,377 Total Assets $ 244,860,275 LIABILITIES AND NET ASSETS Liabilities: Accounts and grants payable $ 4,626,586 Accrued liabilities 1,312,601 Escrow payable 77,593,013 Taxes payable 78,980 Accrued annual fund manager fees 5,043,027 Deferred revenue 3,041,904 Total Liabilities 91,696,111 Net Assets: Unrestricted 10,065,177 Temporarily restricted 143,098,987 Total Net Assets 153,164,164 Total Liabilities and Net Assets $ 244,860,275 See notes to consolidated financial statements. 3 Page 38 of 86

45 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES CONSOLIDATED STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2014 Temporarily Unrestricted Restricted Total Revenues: State operating assistance $ 15,399,214 $ 7,302,753 $ 22,701,967 State Small Business Credit Initiative - 21,440,125 21,440,125 Capital grant to Florida Opportunity Fund, Inc. - 1,039,486 1,039,486 Private investment contributions 1,787,500-1,787,500 Event revenue 842, ,008 1,053,062 Federal grant assistance - 467, ,479 In-kind contributions 167,380 1, ,679 Management and administration fees 118, ,565 Net realized loss on investments (2,062) (1,664,582) (1,666,644) Net unrealized gain on investments - 5,790,717 5,790,717 Other income 881, ,935 1,702,057 Net assets released from restrictions 14,658,345 (14,658,345) - Total Revenues 33,852,118 20,750,875 54,602,993 Expenses: General and administrative 12,369,664-12,369,664 Payroll and related costs 8,642,665-8,642,665 Professional fees 9,680,460-9,680,460 Grants to sub-recipients 1,399,214-1,399,214 Depreciation 188, ,016 Miscellaneous 5,661-5,661 Total Expenses 32,285,680-32,285,680 Change in Net Assets Before Income Tax Expense 1,566,438 20,750,875 22,317,313 Current income tax expense 99,349-99,349 Total Income Tax Expense 99,349-99,349 Change in Net Assets 1,467,089 20,750,875 22,217,964 Net Assets, Beginning of Year 8,598, ,348, ,946,200 Net Assets, End of Year $ 10,065,177 $ 143,098,987 $ 153,164,164 See notes to consolidated financial statements. 4 Page 39 of 86

46 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES CONSOLIDATED STATEMENT OF CASH FLOWS YEAR ENDED JUNE 30, 2014 Cash Flows From Operating Activities: Increase in net assets $ 22,217,964 Adjustments to reconcile increase in net assets to net cash provided by operating activities: Depreciation 188,016 Loss on disposal of assets 4,561 Net unrealized gain from investments (5,790,717) Net realized loss from investments 1,666,644 Equity in earnings of affiliate (2,524) Changes in: Due from State of Florida 2,628,969 Accounts and loans receivable (1,631,039) Prepaid and other assets (400,579) Investment in limited partnership 2,524 Accounts and grants payable 1,047,931 Accrued liabilities 138,714 Escrow payable 58,496,460 Accrued annual fund manager fees 5,043,027 Taxes payable 78,980 Deferred revenue 640,324 Net Cash Provided by Operating Activities 84,329,255 Cash Flows From Investing Activities: Proceeds from investment distributions 1,641,041 Proceeds from divestiture of direct investment 800,000 Purchases of equipment (429,557) Funding of loans receivable (10,416,268) Funding of venture capital partnerships investments (3,123,538) Funding of direct investments (4,566,451) Distributions from Cypress Equity Fund, Ltd. 2,524 Net Cash Used in Investing Activities (16,092,249) Net Increase in Cash and Cash Equivalents 68,237,006 Cash and Cash Equivalents, Beginning of Year 76,981,340 Cash and Cash Equivalents, End of Year $ 145,218,346 Classified in Consolidated Statement of Financial Position: Cash and cash equivalents - operating $ 6,382,122 Cash and cash equivalents - limited as to use 138,836,224 Cash and Cash Equivalents, End of Year $ 145,218,346 Supplemental schedule of non cash investing activities: Conversion of loan to equity $ 2,355,000 Accrued interest converted to equity $ 55,942 Exchange of equity ownership in companies $ 1,053,962 See notes to consolidated financial statements. 5 Page 40 of 86

47 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2014 Note 1 Summary of Significant Accounting Policies Organization Enterprise Florida, Inc. ("Enterprise Florida") is a not-for-profit corporation created by Chapter 288, Florida Statutes and incorporated on February 18, 1993 as a public-private partnership responsible for leading Florida's statewide economic development efforts. Its mission is to facilitate job growth for Florida s businesses and citizens leading to a vibrant statewide economy. Enterprise Florida is a discretely presented component unit of the State of Florida (the State ), included in state-wide financial statements, as it is legally separate but has a significant relationship with the State of Florida. All revenues in excess of expenditures remain committed to further the purpose of Enterprise Florida. The accompanying consolidated financial statements include the accounts of Enterprise Florida, and the following organizations controlled by Enterprise Florida: Cypress Equity Fund Management Corporation, Florida Sports Foundation Inc., and Florida Opportunity Fund (comprised of Florida Opportunity Fund, Inc. ( FOF ) and its wholly-owned subsidiary, FOF PA II, Inc.) (collectively, the Organization ). All significant intercompany accounts and transactions have been eliminated. Cypress Equity Fund Management Corporation was incorporated on October 5, 1995 as a not-for-profit corporation for the purpose of acting as the general partner of Cypress Equity Fund Limited Partnership, a private partnership, and serving as administrator of a private group trust. Enterprise Florida was the sole member of Cypress Equity Fund Management Corporation during the year and controlled its majority voting interest through membership of its Board of Directors. The Corporation officially dissolved on June 30, The Florida Sports Foundation, Inc. (the Foundation ) promotes and develops sports related industries, amateur sports activities, and physical fitness. This non-profit corporation merged into the Organization on August 29, 2011 pursuant to legislation contained in Florida Statute , and now comprises the Sports Development unit of Enterprise Florida. Enterprise Florida is the Foundation s sole member. FOF was created on July 13, 2007 by Enterprise Florida pursuant to the Florida Capital Formation Act under Florida Statutes Enterprise Florida facilitated the creation of FOF, is its sole member and controls its majority voting interest through appointment of its Board of Directors. Enterprise Florida also provided FOF s initial capital through funds appropriated by the State of Florida. FOF is not a public corporation or instrumentality of the State. FOF s initial purpose was to provide seed capital and early stage venture equity capital for emerging companies in the State, including, without limitation, enterprises in life sciences, information technology, advanced manufacturing processes, aviation and aerospace, and homeland security and defense, as well as other strategic technologies. Subsequent to initial capital funding, FOF has also been empowered by the Statute to make direct investments, including loans, in individual businesses and infrastructure projects. Pursuant to an agreement with the Florida Department of Agriculture and Consumer Services, Office of Energy ( DACS-OOE ), successor to the Florida Energy and Climate Commission, FOF began to receive and invest capital for the Clean Energy Investment Program. During fiscal 2012, FOF began its role of receiving and investing capital for the Florida Venture Capital Program under the State Small Business Credit Initiative. FOF PA II, Inc. was incorporated on August 23, 2012 as a for-profit corporation for which FOF is the sole shareholder. FOF PA II, Inc. was established to hold an investment in the Florida Venture Capital Program for which income is passed to the investor. Page 41 of 86 6

48 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2014 Note 1 Summary of Significant Accounting Policies (continued) Enterprise Florida is related through common purpose, Florida Statute or management, with Cypress Equity Fund, Ltd., which was dissolved on April 28, 2014, and Florida Development Finance Corporation, entities which are not included in these consolidated financial statements. Enterprise Florida provides management and accounting services to these related parties, which may not always be conducted on an arm's-length basis (See Note 12). Due to the 2011 legislation, Enterprise Florida also has operating relationships with Visit Florida, through contracting for tourism-related marketing services and governing board appointments, and with Space Florida, where governmentally appointed Directors on Enterprise Florida s Board of Directors also serve as Directors of Space Florida. Enterprise Florida operates through units, each headed by a senior officer who reports to the chief operating officer. These are: Administration provides all administrative services to the Organization such as the executive office, human resources, contracts and compliance, information technology and accounting. Business Development responsible for coordinating national and international business development by managing projects to increase capital investment and jobs in Florida. It facilitates the most effective use of business incentives and assists existing businesses expand jobs and capital investment. International Trade and Development focuses on international trade programs to expand the number of Florida companies exporting Florida products and services. It coordinates Team Florida events for marketing and promotion of Florida for trade and investment. It also manages key international relationships to improve Florida s international business and global reputation in the following countries: Brazil, Canada, China, Czech Republic, Germany, Israel, Japan, Mexico, France, South Africa, Spain, Taiwan and the United Kingdom. Marketing, Information, and Communications responsible for establishing and building a probusiness image for the state by identifying and marketing Florida to targeted industry decision makers and business leaders. It develops, coordinates, and implements a statewide strategic plan for Florida brand recognition. The unit also manages all corporate communications. Minority and Small Business, Entrepreneurship and Capital is responsible for small and minority business programs. It also administers special capital programs such as those of FOF and the State Small Business Credit Initiative, supports the Florida Development Finance Corporation and supported, Cypress Equity Fund Management Corporation, Cypress Equity Fund Limited, and Cypress Equity Fund Group Trust prior to their dissolution during the fiscal year. Sports Development Florida Sports Foundation, Inc. operates as a subsidiary of Enterprise Florida, working to strengthen the economic impact of sports events through grants and identifying business expansion or development opportunities linked to sports development. It also develops, fosters and coordinates services and programs for amateur sports through the Sunshine State Games and the Florida Senior Games State Championships. Page 42 of 86 7

49 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2014 Note 1 Summary of Significant Accounting Policies (continued) Strategic Partnerships maintains and enhances relationships with primary partners and stakeholders to strengthen support of economic development initiatives and increase job growth. It maintains and expands investor support and Board participation. It assists communities to increase their competitiveness when vying for job creation projects. It retains and maximizes opportunities to enhance the Department of Defense investment in Florida through management of defense grant programs and the Florida Defense Support Task Force activities. Tourism Marketing works to promote travel and drive visitation to and within Florida. This role is contracted with Visit Florida, which serves as the sole statewide destination marketing organization representing the entire Florida tourism industry. Basis of Presentation The accompanying consolidated financial statements have been prepared on the accrual basis of accounting in accordance with accounting principles generally accepted in the United States of America. Net assets and revenues, expenses, gains and losses are classified based on the existence or absence of donor-imposed restrictions. Accordingly, net assets of the Organization and changes therein are classified and reported as temporarily restricted (see Note 9) or unrestricted net assets. Cash and Cash Equivalents Cash and cash equivalents include the operating accounts of Enterprise Florida and cash and cash equivalents limited as to use. The Organization considers all highly liquid financial investments purchased with an original maturity date of three months or less to be cash equivalents. The Organization places its cash and cash equivalents on deposit with financial institutions in the United States. The Federal Deposit Insurance Corporation ( FDIC ) covers $250,000 for substantially all depository accounts. The Organization from time to time may have had amounts on deposit in excess of the insured limits. As of June 30, 2014, the Organization had $144,328,168 which exceed these insured amounts; $27,927,007 of which were FOF deposits. Bank deposits include $88,324,810 held for the State of Florida. Management believes the associated risk is minimized by placing such assets with quality financial institutions. The Organization has not experienced any losses on such accounts. Cash and Cash Equivalents Limited as to Use In order to ensure compliance with grant documents and/or performance contracts, Enterprise Florida has limitations on funds held in escrow and for grant funds received in advance of expenditure. In addition, cash and cash equivalents for FOF and the Foundation are limited for specific use by each entity in accordance with their designated purpose and contractual arrangements. Leaseholds, Furniture and Equipment Leaseholds, furniture and equipment are stated at cost, if purchased, or estimated market value at date of receipt, if acquired by gift. Depreciation is provided using the straight-line method over the estimated economic useful lives of the related assets which are as follows: Leasehold improvements Office furniture Office equipment Computers and software 5-7 years 5-7 years 5 years 3-5 years Page 43 of 86 8

50 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2014 Note 1 Summary of Significant Accounting Policies (continued) Additions or improvements in excess of $500 for the Foundation and $1,000 for the other entities, with an estimated useful life exceeding a year, are capitalized. Repairs and maintenance costs are charged to expense as incurred. Investments in Venture Capital Partnerships FOF has investments in seven partnerships, which invest in venture capital limited partnerships. These investments are stated at estimated fair value based on net asset value information received from the limited partnerships. Direct Investments FOF s direct investments relate to the Clean Energy Investment Program and Florida Venture Capital Program and are presented in the accompanying consolidated financial statements at estimated fair value, as determined by management based on information provided by the investment fund manager. The values assigned to direct investments are based on available information and do not necessarily represent amounts that might ultimately be realized. Such amounts depend on future circumstances and cannot reasonably be determined until the individual investments are actually liquidated. Direct investments are in six privately-held companies of the Clean Energy Investment Program and in nine privately-held companies of the Florida Venture Capital Program. The nature of these investments provides the potential for risk of loss due to most being in early stages of operations. Fair values of direct investments are initially based on the price paid for the direct investments by FOF, adjusted as appropriate for indications of change in fair value, such as subsequent changes in prices paid for company stock, significant changes in company performance from that expected, liquidation values considering preferred liquidation preferences and changes in industry comparable data, such as revenue multiples of similar companies and prices paid for similar companies associated with mergers and acquisitions. Investment in Limited Partnership Cypress Equity Fund Management Corporation s ownership interest in Cypress Equity Fund, Ltd., (the Limited Partnership ) is accounted for under the equity method, as more fully described in Note 7. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reported time period. Actual results could differ from those estimates. Compensated Absences Vacation pay is accrued as earned by employees. Unused accumulated vacation pay is paid upon an employee's separation from service up to a maximum of 120 hours. Page 44 of 86 9

51 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2014 Note 1 Summary of Significant Accounting Policies (continued) Deferred Revenue Enterprise Florida recognizes its pass-through grants to sub-recipients in the consolidated statement of activities as the amounts that have been requested for reimbursement by the sub-recipients. Enterprise Florida records deferred revenue for the difference in the amount received from the State of Florida and the amount requested for reimbursement by the sub-recipients as this amount is considered a conditional promise to give and, therefore, does not meet the criteria for revenue recognition. Loan guarantees fees reported under deferred revenue are recorded as the premium paid to the guarantor, as a practical expedient for measurement, and realized as income over the life of the guarantee. Loan Loss Reserves and Contingencies Management assesses the potential for loan loss reserves and contingencies based on quarterly reporting provided by the financial institution responsible for collecting payments, reporting interest, and handling defaults related to the loans and guarantees. The quarterly reporting provides information to management on the remaining loan and guarantees outstanding at each quarters end and any delinquent accounts if applicable. Management has evaluated all loans for potential losses. Based on their analysis, management has determined that an allowance for doubtful amounts is not necessary at June 30, Management has evaluated all guarantees for the potential of recording an associated liability based on the contingency of ultimate payment being more likely than not. Based on this analysis, management believes a liability for loss contingency is not warranted at June 30, State Operating Assistance Revenue State operating assistance revenue represents State appropriations for the Organization s operating funds, consisting of the following: unconditional promises to give that are available for unrestricted use; unconditional promises to give that are temporarily restricted for program use; and pass-through grants administered by Enterprise Florida that are recognized as revenue and expense when pass-through sub-recipients incur associated costs. State Small Business Credit Initiative Revenue During fiscal 2012, Enterprise Florida began to receive funding under an agreement with the DEO for the State Small Business Credit Initiative ( SSBCI ). The SSBCI facilitates institutional lending and vendor capital investing benefiting small businesses, so long as the proposed activities are consistent with the purpose of the funding. The SSBCI is directly funded by the DEO in total appropriations of $97,662,349 from a contract awarded by DEO through Title III of the Small Business Jobs Act of Of this amount, $89,119,107 has been allocated to Enterprise Florida, including $45,436,207 to fund the Small Business Loan Program administered by Enterprise Florida, $41,907,900 to be passed through to FOF for the Florida Venture Capital Program and $1,775,000 in administrative funding. Of the $89,119,107 allocated, $68,679,984 has been received or is receivable from DEO at June 30, 2014, $40,367,840 of which was for the Small Business Loan Program, $17,273,990 of which has been passed through to FOF for the Florida Venture Capital Program, $1,038,154 of which was for administrative funding and the remaining $10,000,000 is available to be allocated to a specific program. State Small Business Credit Initiative revenue represents restricted use funding received through the SSBCI funding agreement to support investing and loan activity and administrative costs. Page 45 of 86 10

52 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2014 Note 1 Summary of Significant Accounting Policies (continued) Private Investment Contributions Private investment contributions provided to Enterprise Florida are recognized as revenues in the period received. Private investment contributions provided to Enterprise Florida are generally available for unrestricted use by Enterprise Florida. Private investment contributions that are restricted by the donor are reported as an increase in unrestricted net assets if the restriction expires in the reporting period in which the support is recognized. Other donor restricted contributions are reported as an increase in temporarily restricted net assets, depending on the nature of the restriction. When a restriction expires, temporarily restricted net assets are reclassified to unrestricted net assets. Conditional promises to give are not recognized until they become unconditional; that is, when the conditions on which they depend are substantially met. In-kind Contributions Donated goods and services are recorded at their fair market value at the date of receipt by the Organization. Contributions of donated services that create or enhance non-financial assets or that require specialized skills, are provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation, are recorded at fair value in the period received. Contributions of those services not meeting those specified criteria are not recorded in the consolidated financial statements. In-kind contributions recognized in the statement of activities for the year ended June 30, 2014 consisted primarily of foreign office locations, advertising and publications used for promoting business and sports development in the State. Advertising Costs Advertising Costs are expensed when incurred and totaled $394,795 for the year ended June 30, Income Tax Status Enterprise Florida, Cypress Equity Fund Management Corporation, Florida Sports Foundation and FOF are recognized by the Internal Revenue Service (IRS) as exempt from federal income tax on related income under Internal Revenue Code (IRC) Section 501(a), consisting of organizations described in Section 501(c)(3). These entities are also exempt from state income taxes on related income pursuant to Chapter of the Florida Statutes. Therefore, a provision for income taxes has not been included for these entities in the accompanying consolidated financial statements. FOF PA II, Inc. is a for-profit corporation subject to income tax related to investments in pass-through entities and, accordingly, is responsible for income tax on investee taxable income based on its ownership percentage. Income tax expense of $99,349 has been recognized for tax on pass-thru income from the partnership interest. Income tax expense has not been recognized for appreciation on the value of this investment due to an option agreement that provides FOF the ability to purchase the partnership interest from FOF PA II at cost. The Organization s policy is to record a liability for any tax position taken that is beneficial to the Organization, including any related interest and penalties, when it is more likely than not the position taken by management will be overturned by a taxing authority upon examination. Management believes there are no such positions as of June 30, 2014 and, accordingly, no liability has been accrued. The Organization is no longer subject to tax examinations for years prior to Page 46 of 86 11

53 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2014 Note 2 Cash and Cash Equivalents Limited as to Use The Organization s cash and cash equivalents limited as to use consist of the following as of June 30, 2014: Enterprise Florida Escrow $ 77,593,013 Programs administered by Enterprise Florida FL Defense Support Task Force 4,857,776 State Small Business Credit Support Initiative 19,642,213 Rural Strategic Marketing 1,350,776 Small Business Technology Growth Fund 922,938 Florida International Business Expansion Initiative 598,856 Military Base Protection 70,133 Minority Business Development 191,875 Florida Export Diversification and Expansion 104,935 Technology related programs 9,617 Pass through grants administered by Enterprise Florida Funds restricted for grant programs 2,547,094 Total Enterprise Florida 107,889,226 Florida Opportunity Fund, Inc. 28,144,892 Florida Sports Foundation, Inc. 2,802,106 $ 138,836,224 Note 3 Due From State of Florida Amounts due from State of Florida consist of $21,079,670 at June 30, 2014 under various contracts administered by the DEO, including $13,978,140 receivable under the State Small Business Credit Initiative. Note 4 Accounts and Loans Receivable Accounts and loans receivable, which are presented at cost, includes private investment contributions, trade show events, unsecured loans to three borrowers with 5% interest payable upon loan maturity in fiscal 2016, and loans receivable of $4,776,802 and $956,181 under the Clean Energy Investment Program and the Florida Venture Capital Program, respectively. The Organization also has loans receivable under its State Small Business Credit Initiative Program, generally with repayment terms ranging from 6 months to 3 years. Interest income is recorded on the accrual basis based on applicable interest rates and principal outstanding, included in other income for the year ended June 30, There are no past due loans for which payment is delinquent or for which stated interest is not accrued. Loan Guarantee Program The Loan Guarantee Program is available to qualified businesses that demonstrate adequate historical and/or proposed cash flow coverage and other credit underwriting metrics. Enterprise Florida works with financial institutions to use this program as a credit enhancement to mitigate any perceived credit weaknesses on loans. Under each guarantee, Enterprise Florida is obligated, should the borrower be delinquent for 120 days, to make the monthly loan payments of the borrower, to the extent of the guarantee. Page 47 of 86 12

54 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2014 Note 4 Accounts and Loans Receivable (continued) The typical loan guarantee is between 5-50% of the total required financing and ranges from $250,000 to $5,000,000 with a maximum loan term of 5 years. Interest rates and fees are negotiable. Enterprise Florida receives a loan guarantee fee upfront, which is recognized on a straight-line basis as revenue over the term of the guarantee, and an ongoing fee, recognized as revenue in the year to which it relates, until the loan is paid off or the guarantee expires. The financial institution is responsible for collecting payments, reporting interest, and handling defaults. The maximum potential future payments to be paid under guarantees were $10,219,651 as of June 30, One guarantee of $191,508 has a 5 year term while all other guarantees are for 3 years or less. Note 5 Leaseholds, Furniture and Equipment Leaseholds, furniture and equipment consist of the following as of June 30, 2014: Leasehold improvements $ 377,041 Office furniture 496,979 Office equipment 359,009 Computers and software 799,994 2,033,023 Less accumulated depreciation (1,264,661) $ 768,362 Note 6 Investments in Venture Capital Partnerships and Direct Investments Investments in venture capital partnerships and direct investments are provided through three programs administered through FOF, including a Fund of Funds program and two direct investment programs. The Fund of Funds program represents the investments in venture capital partnerships, initially funded by $29,500,000 of State appropriations subject to Florida Statute (the Statute ). The Statute provides that FOF may invest this initial funding only in seed and early stage venture capital/angel funds focusing on opportunities in Florida; direct investments of Fund of Funds capital in individual businesses is prohibited. Investments in Venture Capital Partnerships FOF investments in venture capital partnerships consist of seven limited partnerships as presented in the accompanying financial statements at estimated fair value based on net asset value per share. Each of the investments made under the FOF s Fund-of-Funds Program are limited life limited partnerships (or other limited liability vehicles) that provide minimal redemption opportunities. Liquidity is achieved from the partnership through distributions in the form of cash and stock. Page 48 of 86 13

55 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2014 Note 6 Investments in Venture Capital Partnerships and Direct Investments (continued) The term of each limited partnership is stated in its limited partnership agreement, as amended, and ranges from approximately 10 to 12 years, including any provisions for extensions. As of June 30, 2014, the Fund-of- Funds investments range in age from approximately 14 months to 51 months and the estimated remaining life of such investments range from approximately 7 years to 11 years. Each Fund-of-Funds investment term and estimated remaining life has been calculated based on its limited partnership agreement, including any term extensions effective as of June 30, A Fund-of-Funds investment may liquidate before its stated termination date or may require additional term extensions to complete its liquidation in an orderly manner. Fund-of-Funds investment term extensions are implemented in accordance with the respective limited partnership agreement for each investment. As permitted, fair value for each Fund-of-Funds investment is determined by FOF based on its proportionate share of the underlying fair value of the net assets of the limited funds, derived from FOF s ownership percentage and audited financial statements provided by each investee. The audited financial statements provided by each investee are reviewed by the fund manager and net asset values provided by the fund manager are approved quarterly by management. Direct Investments The Clean Energy Investment Program FOF has an agreement (the Clean Energy Agreement ) with the DACS-OOE to administer the Clean Energy Investment Program. The Clean Energy Investment Program was created in 2010 and targets qualified Florida businesses with direct investments in three primary areas of focus: 1) facility and equipment improvement with energy-efficient and renewable energy products, 2) acquisition or demonstration of renewable energy products and 3) process improvement of existing production, manufacturing, assembly or distribution of operations to increase energy efficiency or reduce consumption. The direct investments may consist of debt and other instruments, so long as the proposed activities are consistent with the three areas of focus described above. The Clean Energy Investment Program is through a grant funded by State of Florida in the amount of $36,089,000 as a result of a grant awarded by the United States Department of Energy through the American Recovery and Reinvestment Act. As of June 30, 2014, FOF has cumulative capital contributions of $36,089,000 for this program, of which $35,861,436 has been received. Program funding under the Clean Energy Agreement is required to be segregated from existing monies provided by the State or other existing or future contributors, and initial funding was required to be deposited in an interest bearing account. Ninety percent of the initial proceeds from the DACS-OOE ($32,480,100) are to be invested in accordance with provisions of the preceding paragraph. The remaining ten percent ($3,608,900) of the initial proceeds are reimbursed as administrative costs are incurred. Administrative costs and expenses include an annual fund manager fee equivalent to $1,082,670 (3% of the program funding) and allowable grantee expenses, including legal, accounting, insurance, and other necessary expenses, up to 4% of program funding. FOF also incurs a deal by deal fund manager success fee equal to 30% to the extent dispositions and cumulative distributions exceed invested capital for any investment. Page 49 of 86 14

56 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2014 Note 6 Investments in Venture Capital Partnerships and Direct Investments (continued) The annual fund manager fee of 3% was initiated on May 3, 2010, totaling $4,506,168 through June 30, 2014, of which $2,165,340 has been paid based on the allowable cap specified in the Clean Energy Agreement. The remaining unpaid portion of $2,340,828 at June 30, 2014 is payable when proceeds from dispositions and cumulative distributions of each program investment, net of fund manager success fees, exceeds the amount of capital invested. Although not yet payable at June 30, 2014, since proceeds have not exceeded invested capital for any program investment, the unpaid annual fund manager fee has been accrued in fiscal 2014 due to the probability of ultimate payment. The 30% fund manager success fee has not been accrued on the financial statements since it is contingent on realized gains, which are not estimable and are dependent on future transactions. The contingent obligation for fund manager success fee would be approximately $553,000 for the Clean Energy Investment Program if all investments were sold at estimated fair values at June 30, During FY 2014 FOF was notified that administrative grantee expenses incurred after September 30, 2013 would not be reimbursable due to the availability of funding ending as of September under the Clean Energy Investment Program. As a result, the Clean Energy Agreement was amended to move the remaining $1,036,283 of allowable grantee expenses into additional program capital for investment. The Clean Energy Agreement is set to terminate on March 31, 2025; however, DACS-OOE has the option to renew on the same terms and conditions for an additional five year term. Florida Venture Capital Program During fiscal 2011, Enterprise Florida entered into an agreement (the DEO Agreement ) with the Florida Department of Economic Opportunity (the DEO ) for the State Small Business Credit Initiative ( SSBCI ). The Florida Venture Capital Program was one of several programs created utilizing SSBCI funding. The Florida Venture Capital Program targets qualified Florida businesses by providing direct investments to increase the amount of capital available. The direct investments may consist of debt and other instruments. The expiration date of the DEO agreement is March 31, 2017, upon which all direct investment funding is to be completed, with no contractual stipulations with respect to the return of the initial program funding. Program funding under the DEO Agreement is required to be segregated from existing monies provided by the State or other existing or future contributors, and initial funding is required to be deposited in an interest bearing account. Administrative costs and expenses include legal, accounting, insurance, other necessary expenses and an annual fund manager fee of $1,257,236 (3% of program funding), of which $56,250 is payable quarterly and reimbursed through quarterly receipts from DEO through Enterprise Florida. FOF also incurs a deal by deal fund manager success fee equal to 30% to the extent dispositions and cumulative distributions exceed invested capital for any investment. The annual fund manager fee was initiated on November 18, 2011, totaling $3,291,206 through June 30, 2014, of which $589,007 had been paid through quarterly installments. The remaining unpaid portion of $2,702,199 at June 30, 2014 is payable when proceeds from dispositions and cumulative distributions of each program investment, net of fund manager success fees, exceeds the amount of capital invested. Although not yet payable at June 30, 2014, since proceeds have not exceeded invested capital for any program investment, the unpaid annual fund manager fee has been accrued in fiscal 2014 due to the probability of ultimate payment. The fund manager success fee has not been accrued on the financial statements since it is contingent on realized gains, which are not estimable and are dependent on future transactions. The contingent obligation for fund manager success fee would be approximately $849,000 for the Florida Venture Capital Program if all investments were sold at estimated fair value at June 30, Page 50 of 86 15

57 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2014 Note 6 Investments in Venture Capital Partnerships and Direct Investments (continued) Fair Value Hierarchy The fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value, provides three levels of inputs used to measure fair value. Because of the inherent uncertainty of valuations, estimated fair values may differ significantly from the values that would have been used had a ready market for these investments existed, and differences could be material. FOF classifies its investments into a hierarchical disclosure framework as follows: Level I - Securities traded in an active market with available quoted prices for identical assets as of the reporting date. Level II - Securities not traded on an active market but for which observable market inputs are readily available or Level I securities where there is a contractual restriction as of the reporting date. Level III - Securities not traded in an active market and for which no significant observable market inputs are available as of the reporting date. The cost basis of the Organization s Fund of Funds investments, Clean Energy direct investments and Florida Venture Capital Fund direct investments, administered through FOF, was $13,747,337, $14,817,188 and $16,092,413, respectively, as of June 30, The following table summarizes the valuation of the Organization s investments, measured at fair value as of June 30, 2014, based on the level of input utilized to measure fair value: Percent of Fund's Fair Value Net Assets Level I $ 1,053,692 1% Level II - - Level III 51,678,570 33% Total investments $ 52,732,262 34% The $1,053,692 Level I investment represents stock in a publicly traded company in the Clean Energy Investment Program. This, together with Level III investments of $14,970,166, is presented as direct investments of $16,023,858 under the Clean Energy Investment Program on the Consolidated Statement of Financial Position. Page 51 of 86 16

58 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2014 Note 6 Investments in Venture Capital Partnerships and Direct Investments (continued) The following table presents a reconciliation of the beginning and ending balances of the fair value measurements using significant unobservable inputs (Level III): Fund of Funds Investments Clean Energy Direct Investments FLVCP Direct Investments Opening Balance at 7/1/13 $ 13,032,873 $ 15,774,741 $ 12,138,622 Total gains or losses (realized and unrealized) included in changes in net assets 3,049,403 (1,693,292) 2,770,024 Contributions 3,123,538 2,039,202 4,938,192 Distributions (1,415,787) (96,793) (928,461) Transfers in and / or out of Level III - (1,053,692) - Ending Balance at 6/30/14 $ 17,790,027 $ 14,970,166 $ 18,918,377 The amount of total gains or losses for the period included in changes in net assets attributable to the change in unrealized gains or losses relating to assets still held at the reporting date $ 2,063,774 $ 956,919 $ 2,770,024 FOF relies on the fund manager to oversee the valuation process of the Organization s Level III direct investments. Although management is responsible for overseeing the Organization s valuation processes and procedures, the fund manager is responsible for conducting periodic reviews of fair value for each direct investment and for presenting results of fair value assessments to management. The fund manager determines the valuations of the Fund s Level III direct investments on at least a semi-annual basis. Valuations determined by the Organization are required to be supported by market data, industry accepted third-party valuation models, prior company financing or other methods the fund manager deems appropriate, including the use of internal proprietary valuation models. When quantitative unobservable inputs are used in the valuation of Level III investments, the valuation technique, the unobservable input, and the quantitative amount used in the valuation require disclosure. The Organization had one investment in the Florida Venture Capital Program for which quantitative unobservable inputs were used in measuring the fair value at June 30, 2014, as follows: Valuation Unobservable Valuation Asset Fair Value Technique Input Multiple FLVCP - Direct Market Investment $ 5,347,869 Approach EBITDA 8.2x Page 52 of 86 17

59 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2014 Note 7 Investment in Limited Partnership Cypress Management was the general partner of Cypress Equity Fund, Ltd. (the "Limited Partnership") prior to dissolution of the Partnership on April 28, The Organization received $2,524 of earnings from the Limited Partnership during the year ended June 30, Note 8 Escrow Payable The State has awarded a total of $140,630,087 to forty-five companies under the State s incentive programs through June 30, These awards were intended to fund business projects to further job creation. DEO, along with the consent of these companies, appointed Enterprise Florida as the escrow agent to hold these funds for disbursement to the companies in accordance with the State s incentive programs. Through June 30, 2014, Enterprise Florida paid $30,359,540 to twenty-one companies that certified to DEO they had met their contract requirements under the program. Enterprise Florida has returned $32,677,534 to DEO for seven companies that were not able to complete their program requirements. Enterprise Florida recorded the remaining $77,593,013 as an escrow payable at June 30, Note 9 Temporarily Restricted Net Assets The Organization classifies Enterprise Florida net assets as temporarily restricted based on agreements with the State, wherein funding may not be utilized for the general purpose of Enterprise Florida, and classifies net assets of FOF and the Foundation as temporarily restricted since their use is specifically limited for the purposes of those consolidating entities. Temporarily restricted net assets consist of the following as of June 30, 2014: Enterprise Florida: State Small Business Credit Initiative $ 50,623,459 Florida Defense Support Task Force 5,769,172 Rural Strategic Marketing 1,350,776 Small Business Technology Growth Fund 1,075,938 Florida International Business Expansion Initiative 598,856 Military Base Protection 63,521 Florida Export Diversification and Expansion 183,375 Technology related programs 9,619 Total Enterprise Florida temporarily restricted net assets 59,674,716 Florida Opportunity Fund, Inc. 82,454,709 Florida Sports Foundation, Inc. 969,562 Total temporarily restricted net assets $ 143,098,987 Page 53 of 86 18

60 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2014 Note 10 State Operating Assistance Revenue Performance contracts and pass-through grants with the state of Florida for the year ended June 30, 2014 are as follows: Operating funds provided to Enterprise Florida, Inc. $ 14,000,000 Pass-through grants administered by Enterprise Florida, Inc.: Visit Florida 63,500,000 Sarasota County Rowing Center 5,000,000 Defense Infrastructure 800,500 Defense Reinvestment 592,533 IMG Academy 2,300,000 Florida Trade and Exhibition Center (CAMACOL) 400,000 SE Japan Association/Florida Korea Economic Coop. Comm. 200,000 Military Base Protection 6,181 Total Pass-through grants 72,799,214 Less: Pass-through grants not presented as activities (71,400,000) Total unrestricted state operating assistance 15,399,214 Other programs administered by Enterprise Florida, Inc.: Florida Export Diversification and Expansion Program 350,000 Florida Defense Support Task Force 4,000,000 4,350,000 Florida Sports Foundation, Inc. Operating 2,555,664 Florida Sports Foundation, Inc. Admin 200,000 Florida Sports Foundation, Inc. Tag Revenue 197,089 2,952,753 Total temporarily restricted revenue 7,302,753 Total State operating assistance revenue $ 22,701,967 Pass-through grants amounting to $71,400,000 have been excluded from recognition in the consolidated statement of activities because they represent agency transactions which have been line item appropriated in the State budget. Other pass-through grants amounting to $1,399,214 are reflected as both revenues and expenses in the consolidated statement of activities as they meet the criteria for recognition as activities. The contract with the state of Florida requires Enterprise Florida to return all interest income earned on state passthroughs and grant funds to the state of Florida. As these funds must be returned to the State, Enterprise Florida does not record the revenue associated with these earnings. Instead, a liability to the State is recorded as interest is earned. Page 54 of 86 19

61 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2014 Note 11 Retirement Plans Enterprise Florida sponsors a 401(K) defined contribution retirement plan (the Plan ) covering all its employees that are age 21 or older. It is subject to the provisions of the Employee Retirement Security Act of 1974 (ERISA). Participants may contribute up to 100% of compensation, as defined in the Plan, but may not exceed the maximum amount allowable by the Internal Revenue Code ( IRC ), which is currently $17,500. Enterprise Florida s contributions to the Plan beyond the 3% safe harbor are discretionary. Currently Enterprise Florida matches 25% of the first 4% of wages the employee contributes and makes an additional contribution equal to 10% of employee wages (3% of which is designated as safe harbor and is not discretionary). Investments of contribution are self-directed by participants within investments provided for by the Plan. Participants are immediately vested in their contributions and earnings thereon. Vesting in Enterprise Florida s contributions is based on years of service. A participant vests at 33.33% annually until fully vested upon completion of three years of credited service. Any participant employed at the date of total and permanent disability, death or the attainment of normal retirement age, as defined, is deemed to be 100% vested. Contributions made toward the safe harbor are immediately vested. Enterprise Florida contributed a total of $627,292 to the Plan and all expenses related to the Plan were paid from forfeitures during the year ended June 30, The Foundation has a defined contribution money purchase pension plan covering all of the full-time employees it had prior to the merger with Enterprise Florida. On the date of merger, all Foundation employees became employees of Enterprise Florida and members of the Enterprise Florida Plan. No further contributions have been made to the Foundation s defined contribution money purchase pension plan since the date of merger. Investments are self-directed by participants and accounts vest over a six year period. Note 12 Related Party Transactions The Organization has considerable activity with the State and Visit Florida, as presented on the consolidated financial statements and throughout the notes to the consolidated financial statements. Management fees charged by Enterprise Florida to Cypress Equity Fund, Ltd. and Florida Development Finance Corporation were $7,500 and $50,000, respectively, during the year ended June 30, Enterprise Florida recorded $1,787,500 of contributions from entities that had employees on the Board of Directors during the year ended June 30, Page 55 of 86 20

62 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2014 Note 13 Commitments and Contingencies Operating Lease Commitments The Organization is obligated under noncancelable operating leases for office facilities and equipment. At June 30, 2014 future minimum lease payments under noncancelable operating leases are as follows: 2015 $ 1,017, ,118, ,034, , ,949 hereafter 802,139 $ 5,364,587 The Organization s rental expense totaled $1,121,773 for the year ended June 30, Capital Investment Commitments FOF has committed $27,000,000 to seven limited partnerships in Fund-of-Funds investments, of which $10,070,370 remains subject to additional capital calls as of June 30, FOF has committed all initial Clean Energy Investment Program capital. In addition to the direct investments presented on the consolidated statement of financial position at June 30, 2014, the Organization has formal commitments with eligible investees for the balance of program capital. Grants and Contracts Contingency Grants and contracts require the fulfillment of certain conditions set forth in the agreements, including certain match requirements which may be subject to audit and adjustment by grantor/contracting agencies. In the opinion of management, any such adjustments would not be material to the Organization s financial statements. Fund Manager Fee Contingency The Organization is committed for fund manager fees under its amended Investment Management Agreement, dated September 16, The agreement has an initial term of ten years and a five year extension provision, subject to terms defined in the Investment Management Agreement. Quarterly fund manager fee commitments are $81,125, $270,668 and $314,309 for the Fund of Funds, Clean Energy Investment Program and the Florida Venture Capital Program, respectively, throughout the remaining term of the agreement. Additional provisions of the agreement commit the Organization to a deal by deal fund manager success fee equal to 30% to the extent dispositions and cumulative distributions exceed invested capital for any investment, as more fully described in Note 6. The Organization s ability to pay fund manager fees is dependent on provisions in agreements with its funding sources, DACS-OOE and DEO, to allow such payments. Such agreements and related provisions are currently under review. Page 56 of 86 21

63 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED JUNE 30, 2014 Note 14 Functional Expenses The Organization s activities include numerous functions, summarized as follows: Enterprise Florida Program Services: International Trade and Development $ 6,401,454 Strategic Partnerships 4,268,897 Business Development 1,809,140 Marketing, Information, and Communications 3,569,318 Minority Business Development 100,053 Enterprise Florida Supporting Services 4,641,050 Cypress Management Program Services 36,929 Florida Sports Foundation Program Services 5,694,160 Florida Opportunity Fund Program Services 5,764,679 32,285,680 Florida Opportunity Fund Income Tax 99,349 Total Expenses, including Income Tax $ 32,385,029 Note 15 Concentrations For the year ended June 30, 2014, the Organization received approximately 80% of its revenue from the State of Florida for the Organization s operations and various programs which the Organization administers. Note 16 Subsequent Events Subsequent events have been evaluated through September 19, 2014, which is the date the consolidated financial statements were available to be issued. Subsequent to year-end FOF received payment on a $1,000,000 loan and redeemed preferred shares and exercisable warrants in a Clean Energy Investment Program direct investment for $1,500,000, which was equal to fair value presented on the financial statements at June 30, 2014 and represents a gain of $500,000 from initial capital invested. Additional investments subsequent to year-end amounted to $659,070 of which $238,070 related to the Florida Venture Capital Program and $421,000 related to the Fund of Funds program. Page 57 of 86 22

64 SUPPLEMENTARY INFORMATION AND OTHER REPORTS OF INDEPENDENT AUDITOR Page 58 of 86

65 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES CONSOLIDATED STATEMENT OF FINANCIAL POSITION JUNE 30, 2014 Florida Enterprise Cypress Equity Florida Sports Opportunity Florida Fund Mgmt Foundation Fund Eliminations Total ASSETS Cash and cash equivalents Operating $ 6,382,122 $ - $ - $ - $ - $ 6,382,122 Limited as to use 107,889,227-2,802,106 28,144, ,836,224 Due from State of Florida 20,306, , ,564-21,079,670 Due from Enterprise Florida Inc ,345 (613,345) - Accounts and loans receivable 270,336-33,364 4,776,802 (120,335) 4,960,167 Loan receivable under the State Small Business Credit Initiative 18,022, ,181-18,978,286 Prepaid and other assets 438,505-20, ,985-1,123,182 Leaseholds, furniture and equipment, net 735,619-32, ,362 Florida Opportunity Fund investments in venture capital partnerships ,790,027-17,790,027 Florida Opportunity Fund direct investments: Clean Energy Investment Program ,023,858-16,023,858 Florida Venture Capital Program ,918,377-18,918,377 Total Assets $ 154,044,753 $ - $ 3,434,172 $ 88,115,030 $ (733,680) $ 244,860,275 LIABILITIES AND NET ASSETS Liabilities: Accounts and grants payable $ 2,368,016 $ - $ 2,464,610 $ 527,640 $ (733,680) $ 4,626,586 Accrued liabilities 1,312, ,312,601 Escrow payable 77,593, ,593,013 Taxes payable ,980-78,980 Accrued annual fund manager fees ,043,027-5,043,027 Deferred revenue 3,031, ,674-3,041,904 Total Liabilities 84,304,860-2,464,610 5,660,321 (733,680) 91,696,111 Net Assets: Unrestricted 10,065, ,065,177 Temporarily restricted 59,674, ,562 82,454, ,098,987 Total Net Assets 69,739, ,562 82,454, ,164,164 Total Liabilities and Net Assets $ 154,044,753 $ - $ 3,434,172 $ 88,115,030 $ (733,680) $ 244,860, Page 59 of 86

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67 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES CONSOLIDATED STATEMENT OF ACTIVITIES YEAR ENDED JUNE 30, 2014 Unrestricted Temporarily Restricted Florida Total All Total Enterprise Florida Sports Opportunity Temporarily Entities Eliminations Unrestricted Florida Foundation Fund Eliminations Restricted Total Revenues: State operating assistance $ 15,599,214 $ (200,000) $ 15,399,214 $ 4,350,000 $ 2,952,753 $ - $ - $ 7,302,753 $ 22,701,967 State Small Business Credit Initiative ,440,125-3,486,832 (3,486,832) 21,440,125 21,440,125 Capital grant to Florida Opportunity Fund, Inc ,039,486-1,039,486 1,039,486 Private investment contributions 1,787,500-1,787, ,787,500 Event revenue 842, , , ,008 1,053,062 Federal grant assistance , , ,479 In-kind contributions 167, ,380-1, , ,679 Management and administration fees 982,445 (863,880) 118, ,565 Net realized loss on investments (2,062) - (2,062) - - (1,664,582) - (1,664,582) (1,666,644) Net unrealized gain on investments ,790,717-5,790,717 5,790,717 Other income 881, , , , , ,935 1,702,057 Net assets released from restrictions 18,145,177 (3,486,832) 14,658,345 (6,466,539) (5,672,110) (6,006,528) 3,486,832 (14,658,345) - Total Revenues 38,402,830 (4,550,712) 33,852,118 19,960,184 (2,262,260) 3,052,951-20,750,875 54,602,993 Expenses: General and administrative 15,834,496 (3,464,832) 12,369, ,369,664 Payroll and related costs 9,323,995 (681,330) 8,642, ,642,665 Professional fees 10,085,010 (404,550) 9,680, ,680,460 Grants to sub-recipients 1,399,214-1,399, ,399,214 Depreciation 188, , ,016 Miscellaneous 5,661-5, ,661 Total Expenses 36,836,392 (4,550,712) 32,285, ,285,680 Change in Net Assets Before Income Tax Expense 1,566,438-1,566,438 19,960,184 (2,262,260) 3,052,951-20,750,875 22,317,313 Current income tax expense 99,349-99, ,349 Total Income Tax Expense 99,349-99, ,349 Change in Net Assets 1,467,089-1,467,089 19,960,184 (2,262,260) 3,052,951-20,750,875 22,217,964 Net Assets, Beginning of Year 8,598,088-8,598,088 39,714,532 3,231,822 79,401, ,348, ,946,200 Net Assets, End of Year $ 10,065,177 $ - $ 10,065,177 $ 59,674,716 $ 969,562 $ 82,454,709 $ - $ 143,098,987 $ 153,164, Page 60 of 86

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69 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES SCHEDULE OF ACTIVITIES BY CONSOLIDATED ENTITY YEAR ENDED JUNE 30, 2014 Florida Enterprise Cypress Equity Florida Sports Opportunity Florida Fund Mgmt Foundation Fund Eliminations Total Revenues: State operating assistance $ 19,949,214 $ - $ 2,952,753 $ - $ (200,000) $ 22,701,967 State Small Business Credit Initiative 21,440, ,486,832 (3,486,832) 21,440,125 Capital grant to Florida Opportunity Fund, Inc ,039,486-1,039,486 Private investment contributions 1,787, ,787,500 Event revenue 842, , ,053,062 Federal grant assistance 467, ,479 In-kind contributions 167,380-1, ,679 Management and administration fees 946,880 35, (863,880) 118,565 Net realized loss on investments - (2,062) - (1,664,582) - (1,666,644) Net unrealized gain on investments ,790,717-5,790,717 Other income 1,028, , ,026-1,702,057 Total Revenues 46,628,823 33,503 3,431,900 9,059,479 (4,550,712) 54,602,993 Expenses: General and administrative 11,005,924 5,997 4,771,740 50,835 (3,464,832) 12,369,664 Payroll and related costs 8,429, ,150 - (681,330) 8,642,665 Professional fees 4,160,684 45,932 22,050 5,856,344 (404,550) 9,680,460 Grants to sub-recipients 1,399, ,399,214 Depreciation 182,161-5, ,016 Miscellaneous 5, ,661 Total Expenses 25,183,124 51,929 5,694,160 5,907,179 (4,550,712) 32,285,680 Change in Net Assets Before Income Tax Expense 21,445,699 (18,426) (2,262,260) 3,152,300-22,317,313 Current income tax expense ,349-99,349 Total Income Tax Expense ,349-99,349 Change in Net Assets 21,445,699 (18,426) (2,262,260) 3,052,951-22,217,964 Net Assets, Beginning of Year 48,204, ,581 3,231,822 79,401, ,946,200 Equity Transfer-close Cypress Mgmt & transfer to EFI 90,155 (90,155) Net Assets, End of Year $ 69,739,893 $ - $ 969,562 $ 82,454,709 $ - $ 153,164, Page 61 of 86

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71 Report of Independent Auditor on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards To the Members of the Board of Directors Enterprise Florida, Inc. Orlando, Florida: We have audited, in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards issued by the Comptroller General of the United States, the consolidated financial statements of Enterprise Florida, Inc. and consolidated entities (the "Organization") which comprise the consolidated statement of financial position as of June 30, 2014, and the related consolidated statements of activities, and cash flows for the year then ended, and the related notes to the consolidated financial statements, and have issued our report thereon dated September 19, Internal Control over Financial Reporting In planning and performing our audit, we considered the Organization s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing our opinions on the consolidated financial statements, but not for the purpose of expressing an opinion on the effectiveness of the Organization s internal control. Accordingly, we do not express an opinion on the effectiveness of the Organization s internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement of the entity s consolidated financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of the internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Page 62 of 86 26

72 Compliance and Other Matters As part of obtaining reasonable assurance about whether the Organization s consolidated financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and grant agreements, noncompliance with which could have a direct and material effect on the determination of consolidated financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the Organization s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the Organization s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Orlando, Florida September 19, 2014 Page 63 of 86 27

73 Report of Independent Auditor on Compliance for Each Major Program and on Internal Control over Compliance Required by OMB Circular A 133 and Chapter , Rules of the Florida Auditor General To the Members of the Board of Directors Enterprise Florida, Inc. Orlando, Florida: Report on Compliance for Each Major Federal Program and State Financial Assistance Project We have audited Enterprise Florida, Inc. and Consolidated Entities (the "Organization"), compliance with the types of compliance requirements described in the U.S. Office of Management and Budget ( OMB ) Circular A- 133 Compliance Supplement, and the requirements described in the Florida Department of Financial Services State Projects Compliance Supplement, that could have a direct and material effect on each of the Organization s major federal programs and state financial assistance projects for the year ended June 30, The Organization s major federal programs and state financial assistance projects are identified in the summary of auditor s results section of the accompanying schedule of findings and questioned costs. Management s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs and state financial assistance projects. Auditor s Responsibility Our responsibility is to express an opinion on compliance for each of the Organization s major federal programs and state financial assistance projects based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and Chapter , Rules of the Auditor General. Those standards, OMB Circular A-133 and Chapter , Rules of the Auditor General, require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program or state financial assistance project occurred. An audit includes examining, on a test basis, evidence about the Organization s compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program and state financial assistance project. However, our audit does not provide a legal determination of the Organization s compliance. Opinion on Each Major Federal Program and State Financial Assistance Project In our opinion, the Organization complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal awards programs and state financial assistance projects for the year ended June 30, Page 64 of 86 28

74 Other Matters The results of our auditing procedures disclosed an instance of noncompliance, which is required to be reported in accordance with OMB Circular A-133 and which is described in the accompanying Schedule of Findings and Questioned Costs as item Our opinion on each major federal program is not modified with respect to this matter. The Organization s response to the noncompliance finding identified in our audit is described in the accompanying Schedule of Findings and Questioned Costs. The Organization s response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. Report on Internal Control over Compliance Management of the Organization is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered the Organization s internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program or state financial assistance project to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and state financial assistance project and to test and report on internal control over compliance in accordance with OMB Circular A-133 and Chapter , Rules of the Auditor General, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of the Organization s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program or state financial assistance project on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program or a state financial assistance project will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of the internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A- 133 and Chapter , Rules of the Auditor General. Accordingly, this report is not suitable for any other purpose. Orlando, Florida September 19, 2014 Page 65 of 86 29

75 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE YEAR ENDED JUNE 30, 2014 Agency and Purpose CFDA CSFA Grant/Contract Pass Through to Grant Period Number Number Number Expenditures Subrecipients Federal Agency Name: Small Business Administration State Trade and Export Promotion Pilot Grant Program 10/1/13-9/30/ SBAHQ-11-IT-0029 $ 301,352 $ 210,577 State Trade and Export Promotion Pilot Grant Program 10/1/12-9/30/ SBAHQ-11-IT , ,486 $ 467,479 $ 374,063 U.S. Department of Energy Passed through the State of Florida, Executive Office of the Governor, Department of Agriculture and Consumer Services, Department of Energy ARRA-State Energy Program 7/1/12-6/30/ DE-EE /ARS003 36,089,000 - Total expenditures of federal awards $ 36,556,479 $ 374,063 State Agency Name: Direct projects: State of Florida, Department of Economic Opportunity Enterprise Florida, Inc. operating support 7/1/13-6/30/ SB ,200,000-14,200,000 - Defense Infrastructure Grants 7/1/13-6/30/ SB Defense Infrastructure Grants 7/1/12-6/30/ SB , ,157 Defense Infrastructure Grants 7/1/11-6/30/ SB , ,133 Defense Infrastructure Grants 7/1/10-6/30/ OT , ,593 Defense Infrastructure Grants 7/1/09-6/30/ OT ,635 72,635 Defense Infrastructure Grants 7/1/08-6/30/ OT ,925 49,925 Defense Infrastructure Grants 7/1/07-6/30/ OT ,000 65,000 Defense Infrastructure Grants 7/1/06-6/30/ OT ,050 3,050 Defense Infrastructure Grants 7/1/05-6/30/ OT ,690 3,690 Defense Infrastructure Grants 7/1/04-6/30/ OT ,317 1, , ,500 Florida Export Diversification and Expansion Program 7/1/13-6/30/ SB , ,355 Total CSFA / ,167, ,855 Florida Sports Foundation 7/1/13-6/30/ SB ,555,664 - Florida Sports Foundation 7/1/13-6/30/ ,563 - Florida Sports Foundation 7/1/13-6/30/ ,322 - Florida Sports Foundation 7/1/13-6/30/ ,204 - Local Economic Development Initiatives 7/1/13-6/30/ SB ,841,199 3,841,199 Defense Reinvestment Grants 7/1/12-6/30/ SB , ,956 Defense Reinvestment Grants 7/1/11-6/30/ SB , , , ,533 Florida Defense Support Task Force 7/1/13-6/30/ SB ,216 - Florida Defense Support Task Force 7/1/12-6/30/ SB ,533 - Florida Defense Support Task Force 7/1/11-6/30/ SB ,763, ,021 1,989, ,021 Military Base Protection 7/1/12-6/30/ SB ,181 6,181 Military Base Protection 7/1/06-6/30/ OT ,605-36,786 6,181 Total CSFA / ,619,189 1,172,735 Advocating International Relationships 7/1/13-6/30/ SB , ,000 Advocating International Relationships 7/1/07-6/30/ OT ,000 30, , ,000 Total expenditures of state financial assistance $ 25,010,266 $ 6,553,789 See notes to schedule of expenditures of federal awards and state financial assistance. 30 Page 66 of 86

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77 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE YEAR ENDED JUNE 30, 2014 Note 1 Presentation This Schedule of Expenditures of Federal Awards and State Financial Assistance is presented on the accrual basis of accounting and includes federal and state expenditures of Enterprise Florida, Inc. and consolidating entities. The information in this Schedule is presented in accordance of OMB Circular A-133 and Chapter , Rules of the Florida Auditor General, and, therefore, certain amounts in this Schedule may differ from amounts presented in the consolidated financial statements. Primarily the amounts differ due to the State Energy Program including cumulative grant proceeds since inception. Note 2 Match Requirement Enterprise Florida, Inc. receives funding for operations from the Department of Economic Opportunity ("DEO"), which is subject to Florida Statute Section (2) match requirements. The match requirements are designed to require Enterprise Florida, Inc. to secure statutory basis match of at least 100 percent of the State's operating investment in Enterprise Florida, Inc., which was $17,305,664 for year ended June 30, 2014 Statutory Basis (1) Direct cash (2) $ 1,787,500 Cash donations from assisted organizations (3) 2,207,476 Jointly raised cash (4) - Fees charged for products or services (5) 1,007,243 Copayments, stock, warrants, royalties or other private resources (6) 30,890,915 Quick-Response Training Program in-kind contributions (7) 17,027,304 Total matching funds 52,920,438 Total match required (8) 17,305,664 Excess $ 35,614, Florida Statutory basis amounts are reported as defined in Section (2), Florida Statutes. In-kind contributions under this basis of accounting include amounts that do not meet the GAAP basis requirements for revenue recognition. 2. Defined in Section (2)(b)(1) as cash given directly to Enterprise Florida, Inc., for its operations, including contributions from at-large members of the board of directors. 3. Defined in Section (2)(b)(2) as cash donations from organizations assisted by the divisions. 4. Defined in Section (2)(b)(3) as cash jointly raised by Enterprise Florida, Inc., and a private local economic development organization, a group of such organizations, or a statewide private business organization that supports collaborative projects. 5. Defined in Section (2)(b)(4) as cash generated by fees charged for products or services of Enterprise Florida, Inc., and its divisions by sponsorship of events, missions, programs, and publications. Page 67 of 86 31

78 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS AND STATE FINANCIAL ASSISTANCE YEAR ENDED JUNE 30, 2014 Note 2 Private Sector Support (continued) 6. Defined in Section (2)(b)(5) as copayments, stock, warrants, royalties, or other private resources dedicated to Enterprise Florida, Inc., or its divisions. The amount provided is derived exclusively from Visit Florida. Visit Florida is a direct support organization dedicated solely to the Enterprise Florida, Inc. division of Tourism Marketing so private resources of Visit Florida that are not required for Visit Florida's match are available for Enterprise Florida, Inc.'s match requirements. Visit Florida's financial information is not presented as part of GAAP basis financial reporting for Enterprise Florida, Inc. 7. Defined in Section (9) as eligible in-kind contributions received under the Quick-Response Training Program, administered by Workforce Florida, Inc., which may be counted toward the matching requirements of Section (2). Contributions presented consist of projected wages in contracts entered into during fiscal 2014 that are estimated to be paid to trainees while in the Quick-Response Training Program. This method of reporting in-kind contributions under the Quick-Response Training Program is consistent with that specified in a Memorandum of Understanding among Enterprise Florida, Workforce Florida, Inc. and DEO, executed April The total match required consists of $14,550,000 of Enterprise Florida, Inc. operating support, $2,555,664 of Florida Sports Foundation and $200,000 of Florida Defense Support Task Force administration. Page 68 of 86 32

79 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES SCHEDULE OF FINDINGS AND QUESTIONED COSTS FEDERAL AWARDS PROGRAMS AND STATE FINANCIAL ASSISTANCE PROJECTS YEAR ENDED JUNE 30, 2014 Part I Summary of Auditor Results Financial Statement Section Type of auditor report issued: Unmodified Internal control over financial reporting: Material weakness(es) identified? yes x no Significant deficiency(ies) identified? yes x none reported Noncompliance material to financial statements noted? yes x no Federal Awards and State Projects Section Internal control over major programs: Material weakness(es) identified? yes x no Significant deficiency(ies) identified? yes x none reported Type of auditor report on compliance for major federal programs and state projects: Unmodified Any audit findings disclosed that are required to be reported in accordance with Circular A-133 x yes no Any audit findings disclosed that are required to be reported in accordance with Chapter yes x no Page 69 of 86 33

80 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES SCHEDULE OF FINDINGS AND QUESTIONED COSTS FEDERAL AWARDS PROGRAMS AND STATE FINANCIAL ASSISTANCE PROJECTS YEAR ENDED JUNE 30, 2014 Part I Summary of Auditor Results (continued) Federal Awards and State Projects Section (continued) Identification of major federal programs and state projects: Federal Programs: Name of Program or Cluster Small Business Administration State Trade and Export Promotion Pilot Sport Program U.S. Department of Energy ARRA - State Energy Program CFDA Number State Projects: Name of Project Florida Department of Economic Opportunity Enterprise Florida, Inc. Florida Sports Foundation CSFA Number / Dollar threshold used to determine Type A programs: Federal State $ $ 300, ,308 Auditee qualified as low-risk auditee for federal purposes? x yes no Part II Financial Statement Findings This section identifies the significant deficiencies, material weaknesses, fraud, illegal acts, violations of provisions of contracts and grant agreements, and abuse related to the financial statements that are required to be reported in accordance with Government Auditing Standards. There were no financial statement findings required to be reported in accordance with Government Auditing Standards. Page 70 of 86 34

81 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES SCHEDULE OF FINDINGS AND QUESTIONED COSTS FEDERAL AWARDS PROGRAMS AND STATE FINANCIAL ASSISTANCE PROJECTS YEAR ENDED JUNE 30, 2014 Part III Federal Award Findings and Questioned Costs This section identifies the significant deficiencies, material weaknesses, and material instances of noncompliance, including questioned costs, as well as any material abuse findings, related to the audit of major federal programs, as required to be reported by Section 510(a) of OMB Circular A-133. U. S. Department of Energy State Energy Program Statement of Condition : Required quarterly reports were not filed timely with the Florida Department of Agriculture and Consumer Services, Office of Energy ("DACS-OOE"). Criteria: Under the Florida Energy and Climate Commission Grant Agreement ( Agreement ), each quarter has certain deliverables required to be filed by the Organization. Under the Long Term Program Deliverables section of Attachment A-2 of the agreement, the Organization is required to file quarterly and annual reports consistent with Section of the Florida Statutes. Effect of Condition : Quarterly reports not filed timely could result in actions taken by DACS-OOE as described in section 11 of the Agreement. Cause of Condition: The Organization was not aware of the continuing compliance requirement relating to reporting until late within FY Recommendation: We recommend the contract be reviewed for all program deliverables and someone within the Organization be held responsible for making sure all deliverables are made timely. Part IV State Project Findings and Questioned Costs This section identifies the significant deficiencies, material weaknesses, and material instances of noncompliance, including questioned costs, as well as any material abuse findings, related to the audit of major state projects, as required to be reported by Chapter , Rules of the Florida Auditor General. There are no items related to state financial assistance required to be reported. Accordingly, a management letter is not required. Page 71 of 86 35

82 ENTERPRISE FLORIDA, INC. AND CONSOLIDATED ENTITIES SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS AND CORRECTIVE ACTION PLAN FEDERAL AWARDS PROGRAMS AND STATE FINANCIAL ASSISTANCE PROJECTS YEAR ENDED JUNE 30, 2014 Summary of Prior Year Findings There were no findings reported in the prior year. Corrective Action Plan Statement of Condition : Required quarterly reports were not filed timely with the Florida Department of Agriculture and Consumer Services, Office of Energy ("DACS-OOE"). Recommendation: We recommend the contract be reviewed for all program deliverables and someone within the Organization be held responsible for making sure all deliverables are made timely. Managements Response: Management agrees with the recommendation and will review the funding agreements with the fund manager to establish specific deliverables and deadlines requiring the fund manager to provide program information to management in a timely manner. To ensure that deliverables are met and that reports are submitted accurately and timely, management will require the fund manager to provide the completed reports to management for management s review, execution, and submission directly to the funding agency. Page 72 of 86 36

83 AT-LARGE MEMBERSHIP RENEWALS Bank of America, N.A. Gene Schaefer Senior Vice President Bright House Networks, LLC Kevin Hyman EVP, Operations Craig Technologies Carol Craig CEO Florida Power & Light Co. Eric Silagy President & CEO Full Sail University Bill Heavener Co Chairman & CEO GrayRobinson, P.A. Fred Leonhardt Chaiman of Policy Board Enterprise Florida Board of Directors Meeting September 30, 2014 : 9/25/2014 Page 73 of 86

84 AT-LARGE MEMBERSHIP RENEWALS Harris Corporation Sheldon Fox Group President of Government Communications Systems JP Morgan Chase & Co. Mark Bensabat CEO, Middle Market The St. Joe Company Jorge Gonzalez Senior Vice President Walgreens Marlin Hutchens Market Vice President Walt Disney Parks & Resorts, U.S. Anthony Connelly SVP, Operations Disney Cruise Line Enterprise Florida Board of Directors Meeting September 30, 2014 : 9/25/2014 Page 74 of 86

85 NEW COMPANY REPRESENTATIVE Jason Altmire Senior Vice President, Public Policy and Community Engagement Florida Blue Jason Altmire is Florida Blue s senior vice president, Public Policy and Community Engagement. He is responsible for leading and managing Florida Blue s Government and Community Affairs organization, which also includes oversight of the Florida Blue Foundation and the Florida Blue Center for Health Policy. Altmire is a key spokesperson for the company s health care policy efforts and corporate social responsibility programs. Prior to joining Florida Blue in 2013, Altmire served three terms as a United States Congressman in Washington, D.C. During his time in Congress, Altmire was a bipartisan centrist known for working with both sides of the aisle, which led to an extraordinary record of legislative success. He spoke on the House floor more than 200 times, went five and a half years without missing a single vote, had 29 of his legislative initiatives signed into law, and introduced a bill that gained the support of more cosponsors than any congressional bill in American history. He also made international news by leading a civilian rescue mission to Haiti following the devastating 2010 earthquake. A nationally recognized leader on health care policy, he has been profiled by National Public Radio and in the pages of Time Magazine, the Wall Street Journal, the New York Times, the Washington Post, the Los Angeles Times and USA Today. In addition, he has been a frequent guest on a wide range of national television news programs. Before being elected to Congress, he spent his career in the health care industry, working for the University of Pittsburgh Medical Center and before that at the Federation of American Hospitals in Washington, D.C. He has also been an adjunct professor at George Washington University, focusing on politics and policy. Throughout his career, he has been an active member of the community. He currently serves on the U.S. Global Leadership Council s Florida Advisory Board, as well as the Boards of the American Council on Exercise; Florida Council on Economic Education; Jacksonville Chamber of Commerce; the Good Government Initiative at the University of Miami; United Arts of Central Florida; Associated Industries of Florida; and the Jacksonville University Public Policy Institute. He is also a member of the selection committee for college football s Outback Bowl, played each New Year s Day in Tampa. Jason Altmire holds a Master s degree in Health Administration from George Washington University and a Bachelor of Science degree in Political Science from Florida State University. Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 75 of 86

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87 NEW COMPANY REPRESENTATIVE Jorge Gonzalez Senior Vice President The St. Joe Company Jorge Gonzalez, Senior Vice President, Development of The St. Joe Company, has been with the company since His major areas of responsibility are in entitlements, land use, environmental, regulatory and public affairs. Immediately prior to joining St. Joe, Mr. Gonzalez was a consultant in private practice. Mr. Gonzalez holds undergraduate and graduate degrees from The Florida State University. He is member of the Urban Land Institute and serves on various community boards and organizations including the FSU Panama City Campus Development Board and the Board of the Panama City Beach Chamber of Commerce. Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 76 of 86

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89 FL OPPORTUNITY FUND RECOMMENDATION ANDREW A. HYLTIN Chief Executive Officer South Street Capital Advisors Andrew Hyltin serves as chief executive officer of South Street Capital Advisors, a boutique private equity firm providing advisory services to CNL Financial Group and third party clients. In his current role Mr. Hyltin oversees the day-to-day operations of the firm, leveraging over 40 years of experience and relationships to assist clients with new business opportunities, creative financing solutions, restructuring alternatives and negotiating strategic joint venture partnerships. Previously, Mr. Hyltin served as CEO of CNL Growth Properties, Inc. and Global Income Trust, Inc. in partnership with Blackrock, Inc. He also served as chief executive officer of Corporate Capital Trust, Inc. and CNL Fund Advisors Company, a registered investment advisor of Corporate Capital Trust, in partnership with Kohlberg Kravis Roberts (KKR). Additionally, Mr. Hyltin served as president and chief investment officer of CNL Private Equity Corp., responsible for the overall management of its portfolio, private offerings and alternative investments. Prior to joining CNL in 2001, Mr. Hyltin spent more than 25 years in commercial lending and in the investment banking industry. Mr. Hyltin received his Bachelor of Arts degree in Finance with a minor in Real Estate from Texas Christian University. Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 77 of 86

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91 FL OPPORTUNITY FUND RECOMMENDATION BRIAN M. NICHOLAS Executive Vice President & Manager of the Asset Resolution Group Branch Banking & Trust Company ( BB&T ) Brian Nicholas is currently the Executive Vice President & Manager of the Asset Resolution Group for Branch Banking & Trust Company ( BB&T ). In his current role, Mr. Nicholas directs the resolution of all commercial problem asset relationships for BB&T; manages the disposition of Bank-owned real estate and has oversight of the Commercial Loss Share Agreement with the FDIC. He has held this role since October Brian joined BB&T in 2009 through the Colonial Bank acquisition and initially served as Manager of the Portfolio Management team. In this role, he was responsible for the former Colonial Bank performing portfolio covered under a FDIC Loss Share Agreement. Prior to joining BB&T in 2009, Brian was the Regional President for Colonial Bank in the West Coast of Florida region. As Regional President, he was responsible for all banking activities for Colonial Bank in the nine county region. Prior to Colonial, Brian served in various capacities with Wachovia Bank and Bank of America as Regional President in the Gulf Coast region, Business Banking Executive for Florida, Manager of Automotive Financial Services, and Manager of Corporate Support. Brian served in the US Marine Corps, achieving the rank of Captain during his seven years of military service. He holds a Bachelors of Science Degree in Criminology from Florida State University and a Master in Business Administration from the University of Florida. Enterprise Florida Board of Directors Meeting September 30, 2014 Updated: 9/25/2014 Page 78 of 86

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93 F L O R I D A Why Florida? Ask ADT - Naren Gursahaney CEO of ADT Through special arrangements with the publisher, this Enterprise Florida informational cover wrap has been placed on a limited number of copies of FORTUNE magazine. It does not constitute an endorsement by FORTUNE and no endorsement is implied. FORTUNE is a registered trademark of Time Inc., registered in the U.S. and other countries.

94 Securing a Profitable Future Florida s well-developed infrastructure, talented workforce and competitive tax climate are all attractive qualities for a business, and that s why The ADT Corporation selected Boca Raton as its new corporate headquarters two years ago. ADT CEO Naren Gursahaney couldn t be happier with the choice. South Florida offers an excellent quality of life for our team members and their families, he said. That helps us attract top talent. We also like the proximity to three major airports, providing numerous flight options to help save time and money. FLOCKING TO FLORIDA ADT joins several other corporations choosing Florida as their new home. Last year, Hertz relocated to Naples, and in January, Cancer Treatment Centers of America chose to move from its Chicago-area location to Boca Raton. Also in January, Office Depot announced it was retaining its global headquarters in Boca Raton after merging with Office Max. Florida is currently home to more than 2,600 headquarter offices a growing number that offers compelling evidence for doing business in the Sunshine State. POWERFUL POTENTIAL Gursahaney credits the presence of other corporate headquarters and nearby universities with creating and sustaining a skilled and diverse workforce, which was recently ranked statewide as one of the best in the United States by CNBC. The campuses of Florida Atlantic University and Lynn University, both located within a few miles of ADT, offer advantages for both students and the company. ADT also works closely with Florida State University, the University of Florida and the University of Miami. Stronger partnerships with the universities enable us to offer more internships and provide mentoring opportunities to help develop our leaders, Gursahaney noted. [Our success] is the result of our work to create an economy with low taxes that allows innovators and job creators to succeed. Florida Governor, Rick Scott A CULTURE OF OPPORTUNITY Florida Governor Rick Scott attributes the state s corporate appeal to its culture of opportunity: It s the result of our work to create an economy with low taxes that allows innovators and job creators to succeed. A trusted global brand, ADT is the largest provider of security systems in North America with nearly 6.4 million customers. In addition to its corporate offices, ADT also recently opened a new innovation lab in Boca Raton. Our fiscal house is in order, and we have an ideal business climate, says Florida Secretary of Commerce Gray Swoope. If Florida were a publicly traded company, you would rate it as a strong buy, he said. ADT is focused on developing new ways for consumers to seamlessly integrate our products into their daily lives, Gursahaney said. With our renewed focus on innovation, including the hiring of a Chief Innovation Officer and increased investment in product and software development, we are excited about the new capabilities we can bring to our customers. With 3,000 employees at more than 25 locations in the Sunshine State, ADT is proud to call Florida home. Gursahaney reflects that Florida was a smart choice, providing the resources for growth and innovation while controlling costs and keeping employees happy. To learn more about how relocating to Florida can help your business thrive, contact Enterprise Florida, the state s lead economic development organization, at 877-YES-FLORIDA or visit perfectbusinessclimate.com

95 DOES YOUR BUSINESS SHINE? Featured location: Delray Beach, Florida Intriguing offer? Contact us, it gets better. Companies relocate their corporate headquarters, their entire operation, or expand by opening a location in Palm Beach County, Florida because of who s already right here, right now. Why? Visit or call Charlotte County Economic Development Discover the rich rewards of this SW Florida coastal paradise. Call or Visit us at: Shine in the perfect business climate.

96 With our climate, business grows year round in Florida. Corporate leaders all over the world are discovering Florida s flourishing business climate. $777 billion GDP (the 4th largest in the U.S.), the #1 tax climate in the Southeast and 0% personal income tax provide a rich landscape for businesses to thrive. And our streamlined regulatory environment and competitive costs make it easy to plant your roots in Florida and prepare for perennial success. Consider Florida. The perfect climate for business.

97 F L O R I D A DATAMAXX: Florida s Best Kept Secret - Kay Stephenson Co-founder, President and CEO of Datamaxx Group, Inc. Through special arrangements with the publisher, this Enterprise Florida informational cover wrap has been placed on a limited number of copies of FORTUNE magazine. It does not constitute an endorsement by FORTUNE and no endorsement is implied. FORTUNE is a registered trademark of Time Inc., registered in the U.S. and other countries.

98 Florida s BEST KEPT SECRET What do the Federal Bureau of Investigation (FBI), the Federal Aviation Administration and the New York Police Department have in common? They all share a commitment to protect and serve and they all rely on the Datamaxx Group for the essential technology to honor that commitment. Led by CEO and co-founder Kay Stephenson, the Florida -based company provides state -of- the -art, mission -critical information-sharing tools to law enforcement, public safety and homeland security professionals around the world. Datamaxx develops sophisticated, cloudbased solutions that enable secure communication and intelligent data tracking and analysis, harnessing the power of information to give security agencies what might be the most important weapon in their arsenals. Today, Datamaxx serves more than 70 percent of the law enforcement market with more than 750,000 end users. CONTINUE READING >

99 HUMBLE BEGINNINGS Along with co-founder Jonathan Waters, Stephenson started the Datamaxx Group in They set up shop in a small, 600 -square-foot office. We bought out the government division of a large corporation (our employer at the time) with royalties. So, cost very much played a factor in our decision to locate in Tallahassee, said Stephenson. Equipped with only minimal starting capital, Stephenson and Waters knew the success of their company depended on finding a location that provided the right balance of high -tech assets and affordability. Stephenson said, With our location in Florida, we are not required to pay state income taxes, which, obviously, is beneficial for a number of reasons, such as allowing us to maintain competitive pricing. With no state income tax and a low corporate tax rate of 5.5 percent, Florida s business -friendly tax climate gave Datamaxx the financial breathing room to grow. The state s streamlined regulatory environment and relatively low cost of doing business sharpened their competitive edge. NO ROOM FOR ERROR With clients like the FBI and U.S. Department of State, it s no surprise that security is Datamaxx s top concern. The majority of Datamaxx s applications are deployed through the Datamaxx Secure Cloud the first of its kind to achieve compliance under the FBI s Criminal Justice Information Services (CJIS) division. Sensitive hardware is housed in a biometrically access -controlled area powered by uninterruptible power supplies. Every employee must pass an FBI, fingerprint -based background check. Considering the security protocols that must remain in place at all times and the critical nature of the information Datamaxx customers are security companies along with local, state and federal agencies including: FEDERAL AVIATION ADMINISTRATION FEDERAL BUREAU OF INVESTIGATION FLORIDA DEPARTMENT OF CORRECTIONS CITY OF MIAMI POLICE DEPARTMENT NEW YORK CITY POLICE DEPARTMENT ROYAL CANADIAN MOUNTED POLICE U.S. DEPARTMENT OF STATE U. S. OFFICE OF PERSONNEL MANAGEMENT Over the last three years, we have worked to cut taxes, pay down debt and reduce regulations. Florida Governor Rick Scott accessed by our customers, we had to be strategic about our facility location, Stephenson explained. She chose Datamaxx s current location in order to utilize the state -of-the- art communication infrastructure already in place to support Tallahassee s Capital Circle Office Complex, which also houses the Florida Emergency Operations Center. In addition to a power grid, they also share a SONET Ring (a robust, fault- tolerant fiber -optic network) as well as direct fiber access furnished by two different communications providers. SMART PARTNERSHIPS Stephenson also credits much of her company s success to the strategic partnerships it has formed even at the local level. The relationships forged by serving on the Board of Trustees of the Florida State University (FSU) Research Foundation and Advisory Board to the FSU Computer Science Department have been extremely beneficial in recruiting talent and having access to a wealth of ideas, said Stephenson. Secure your complimentary Perry Ellis orange tie or scarf. Scan the QR code or visit perfectbusinessclimate.com/datamaxx Datamaxx isn t the only tech company benefiting from the talented workforce cultivated by Florida s top -tier educational institutions. Florida s strong workforce pipeline continues to fill with talented and diverse professionals, thanks to the state s universities, *While supplies last. Tie or scarf will ship within 4-6 weeks upon request.

100 85 Datamaxx Global glob a l reach THE NUMBER OF US EMBASSIES, CONSULATES AND DIPLOMATIC MISSIONS ACROSS THE WORLD THAT USE THE DATAMAXX GROUP PRODUCTS. colleges and technical schools. Florida schools are particularly strong in the computer science and technology fields, allowing nearly 25,000 IT companies in the state to employ close to a quarter of a million workers. Workforce is critical to business growth and companies can find the talent they need here in Florida, said Florida Secretary of Commerce Gray Swoope. WHERE BUSINESSES GROW Datamaxx is just one of many companies that have written their success story in the Sunshine State with good reason. Over the last three years, we have worked to cut taxes, pay down debt and reduce regulations, said Florida Governor Rick Scott. These pro-business efforts have allowed Florida to create more than 600,000 private-sector jobs in our state and enjoy a major drop in the unemployment rate below the national average for nine months now. Businesses are thriving in Florida, and we will continue our work to create an opportunity economy where every Floridian who wants a job can find one. Offering more than just beautiful weather, Florida has the right environment for your business to grow. To learn more about how Florida can help your business flourish, contact Enterprise Florida, the state s lead economic development organization, at 877-YES-FLORIDA or visit perfectbusinessclimate.com The Datamaxx global switch and platform utilized by all embassies located throughout the world provides mission-critical services to protect our homeland. Tim Longanacre, Bureau of Diplomatic Security Services U.S. DEPARTMENT OF STATE

101 Life is uncertain. Your business decisions shouldn t be. SantaRosaSites.com offers Santa Rosa County Florida s economic, planning, infrastructure, geographic and demographic information at your finger tips in minutes. Search for available property. Create project maps by industry. Develop custom reports with labor force, education and consumer spending data. SantaRosaSites.com is immediate access to critical business intelligence for your investment decisions. Shannon Ogletree, Director SantaRosaEDO.com edo@santarosa.fl.gov

102 The only state to master the sun and the cloud. With nearly 26,000 high-tech companies calling Florida home, it s clear that the Sunshine State has more to offer than just beautiful weather. From cloud computing to surgical technologies, Florida is laser-focused on helping high-tech businesses prosper. Featuring a business-friendly tax climate, 0% personal income tax and nearly $8 billion invested in R&D every year, Florida has all of the components to engineer your success. Combined with a talented high-tech workforce of more than a quarter million, it s no wonder Florida currently ranks #1 for innovation. Consider Florida. The perfect climate for business.

103 F L O R I D A Gray Swoope Florida Secretary of Commerce Tap Into Florida s Most Valuable Resource Rick Scott Florida Governor Tap Into Florida s Most VALUABLE RESOURCE We know why businesses come to the Sunshine State. BUT WHY DO THEY STAY? I T S NO SECRET THAT FLORIDA IS FRIENDLY TO BUSINESS. With Governor Rick Scott applying his own CEO mentality to the state, Florida has steadily moved up in the ranking by Chief Executive Magazine to #2, behind only Texas, as one of the top ten states for business. In addition to the state s pro-business regulatory environment, low taxes and top-rated infrastructure, Florida s talented workforce factors high in the ranking. It makes sense: a talented labor pool does more to guarantee long-term success than a low corporate tax rate. Through special arrangements with the publisher, this Enterprise Florida informational cover wrap has been placed on a limited number of copies of FORTUNE magazine. It does not constitute an endorsement by FORTUNE and no endorsement is implied. FORTUNE is a registered trademark of Time Inc., registered in the U.S. and other countries. The proof? Ask any business that s recently expanded to Florida like Northrup Grumman, which cited Florida s aviation and aerospace talent, ranked #1 by Pricewaterhouse Coopers, as the most compelling reason to invest in the state. At 9.6 million strong, Florida s workforce is both diverse and vast, thanks largely to ongoing investments in education and leveraging the state s position as an international hub to develop niche skills for global commerce. CONTINUE READING >

104 BENEFIT FROM AN INTELLIGENT MERGER Florida s workforce is unique in that it is largely defined by the strategic partnerships formed between target industries and the state s public education system. In 2012, Florida universities received nearly $2 billion in sponsored grants to perform cutting-edge research in a variety of fields. Florida s latest addition to the public university system Florida Polytechnic University embodies the statewide emphasis on STEM education as well as the commitment to build connections between academia and industry. Although the STEM-only university just welcomed its inaugural class last month, Florida Poly is already gaining recognition for its industry-focused approach to education. Not only are industry partners like Harris Corporation and Microsoft helping Florida Poly students gain real-world experience through internships and applied research opportunities they re shaping the curriculum as well. So as students benefit from first-hand exposure to some of the state s most innovative companies, high-tech companies benefit from the opportunity to develop a specialized talent pipeline they can draw on for years to come. Similar opportunities exist at the more than 170 universities, colleges and technical institutes across the Sunshine State. When Fortune 200 manufacturer, Air Products, was searching for the ideal location for its cleantech manufacturing facility, they required two things: deep-water port access and workforce availability. It is not surprising that Air Products was able to find both in Florida. Once the Port of Manatee satisfied its infrastructure needs, Air Products looked to a beneficial partnership with the Manatee Technical Institute (MTI) for the qualified workforce needed to fill the Florida s Powerful WORKFORCE TAP INTO A TALENT PIPELINE WITH THE BREADTH AND DEPTH TO FILL A WIDE RANGE OF POSITIONS. facility s 250 new positions. While there were a lot of attributes physically, the fact that we had MTI down the street [was key], said Air Products Chairman, President and CEO, John McGlade. We can t manufacture without skilled manufacturing technicians, welders and others. The capabilities and skills that they develop there are absolutely critical for this facility. A quick glance at Florida s test scores reveals that the state s job-focused commitment to education begins early. In 2012, Florida ranked second in the world (only behind Hong Kong) for the percentage of fourth-grade students scoring at an advanced reading level. Additionally, both Florida s fourth and eighth-graders surpassed the national average in math and science. These results are taken from the Progress in International Reading Literacy Study (PIRLS) and the Trends in International Mathematics Florida s workforce is consistently ranked among the best in the nation. Gray Swoope, Florida Secretary of Commerce and Science Study (TIMSS), which are administered every four years. My top priority as Governor is to create jobs for Florida families, says Governor Scott. Everyone knows the first step to a great job is a quality education. We are making great strides to enhance the quality of our education, and student success demonstrates it s working. OPEN DOORS WITH INTERNATIONAL EXPERTISE In addition, with more than five million foreign-language speakers, Florida s culturally and linguistically diverse workforce is a competitive asset for any international company. In December 2013, Brinks Regional Services announced it would be establishing its Latin American headquarters in Miami-Dade County. A critical component of this new facility is its financial services center, which will be responsible for managing and supporting the company s operations in more than ten Latin American countries. From a staffing perspective, Brink s faced the challenge of recruiting a globally savvy workforce with the language and commerce skills needed to run an international finance operation. The global security leader identified south Florida as an ideal location for the new LATAM Shared Services Center thanks to its convenient access to all countries in Latin America, rich cultural ties to the region, and a highly qualified workforce with extensive experience and strong expertise working and serving the Latin American markets, explained Brink s Chief Financial Officer, Orlando Bravo. Additionally, Brinks also benefits from its position within one of the top three largest finance and insurance clusters in the nation, with access to nearly 330,000 workers statewide. According to President of CareerSource Florida, Chris Hart IV, Brink s decision to locate in Miami is further evidence of Florida s prime location as an international hub for business and highlights the global competitiveness of our workforce. SUCCESS NOW AND IN THE FUTURE There s a difference between attracting businesses and retaining them. Thanks to its talented workforce, Florida excels at both. Florida has the resources necessary for businesses to be successful and reach their evolving markets, said Secretary of Commerce and president & CEO of Enterprise Florida, Gray Swoope. Companies want to know they can attract a strong workforce and they can do that in Florida, regardless of the industry. Thanks to our talent pipeline, pro-business climate and global access, Florida makes a very compelling case as a state that businesses must look at for location and expansion opportunities. To learn more about how Florida can help your business thrive, contact Enterprise Florida, the state s lead economic development organization, at 877-YES-FLORIDA or visit PerfectBusinessClimate.com

105 LOCATION. LOCATION. LOCATION. A prime location at the intersection of two of Florida s major interstates gives Greater Daytona Area businesses the ability to move products and key executives around the state and throughout the world at the pace global business demands. Learn more at tvedc.com 10 3 International Airports within 1 hour 75 4 Greater Daytona Area 2 Cargo Ports within 100 miles 95 2 Interstate Highways within Volusia County Team Volusia Economic Development Corporation (386) Life is uncertain. Your business decisions shouldn t be. SantaRosaSites.com offers Santa Rosa County Florida s economic, planning, infrastructure, geographic and demographic information at your finger tips in minutes. Search for available property. Create project maps by industry. Develop custom reports with labor force, education and consumer spending data. SantaRosaSites.com is immediate access to critical business intelligence for your investment decisions. Shannon Ogletree, Director SantaRosaEDO.com edo@santarosa.fl.gov half -page horizontal.indd 1 6/5/2014 3:44:27 PM

106 What makes Florida an economic super-state? We ll give you 9 million reasons. If you re looking for one of the nation s top talent pipelines, look no further than Florida. Our workforce of 9 million plus is educated, diverse and ambitious. Our nationally renowned universities are producing some of the brightest grads in the country in the state famous for its sunshine. Companies can find the innovative talent they need to be competitive. And, yes, we even have rocket scientists. Consider Florida. The perfect climate for business.

107 Enterprise Florida Board Investors September 30, 2014 Page 79 of 86 A special thanks to the taxpayers of the state of Florida. Updated 9/2014

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109 Enterprise Florida Board Jason Altmire * Florida Blue 4800 Deerwood Campus Pkwy. DC1-8 Jacksonville, FL (904) Lee Arnold * Colliers International - Tampa Bay 311 Park Place Blvd Suite 600 Clearwater, FL (727) Jeff Atwater *** Florida Department of Financial Services The Capitol, Plaza 11 Tallahassee, FL (850) Lewis Bear *** The Lewis Bear Co. 72 Highpoint Drive Gulf Breeze, FL (850) Alan Becker * Becker & Poliakoff, P.A. 1 East Broward Boulevard, Suite 1800 Ft. Lauderdale, FL (954) Mark Bensabat * JPMorgan Chase & Co. 450 S. Orange Ave. Ste 1000 Orlando, FL (407) Jay Beyrouti *** Monicarla, L.T.D Seminole Boulevard Seminole, FL (727) Jesse Biter *** Biter Enterprises, LLC N. Gulfstream Ave. PH. 1 Sarasota, FL (941) Pam Bondi *** Florida Office of the Attorney General The Capitol, PL-01 Tallahassee, FL (850) Dominic Calabro ** Florida Tax Watch 106 N. Bronough St. Tallahassee, FL (850) Jeff Chamberlain * Publix Super Markets, Inc Publix Corporate Parkway Lakeland, FL (863) Marti Coley *** Florida House of Representatives 3094 Indian Circle Marianna, FL (850) Updated 9/18/ Enterprise Florida Board Members 38 At-Large Members* 4 Ex-Officio** 21 Appointed/Statute *** Page 80 of 86 For Additional Information: Noreen Levitt l Director, Investor Development l l nlevitt@eflorida.com

110 Enterprise Florida Board Stan Connally * Gulf Power Company One Energy Place Pensacola, FL Anthony Connelly * Walt Disney Parks & Resorts, U.S. 200 Celebration Place, Suite 2006 Celebration, FL Andy Corty * Florida Trend 490 First Ave. S. Ste 800 St. Petersburg, FL (727) Brett Couch * Regions Bank 100 N. Tampa St. Ste 3400 Tampa, FL (813) Carol Craig * Craig Technologies 8550 Astronaut Blvd. Cape Canaveral, FL (321) Marshall Criser, III * State University System of Florida - Board of Governors 325 West Gaines Street, #1614 Tallahassee, FL (850) Julius Davis *** VoltAir Consulting Engineers 220 West 7th Avenue, Suite 210 Tampa, FL (813) Hayden Dempsey *** Greenberg Traurig - Tallahassee 101 E. College Ave. Tallahassee, FL (850) Nancy Detert *** Florida Senate 417 Commercial Ct. Ste D Venice, FL (941) Ken Detzner *** Florida Department of State 500 S Bronough St., Ste 316 Tallahassee, FL (850) Ernie Diaz * TD Bank 255 Alhambra Circle 2nd Floor Coral Gables, FL (786) Neal Dunn, MD, FACS *** Summit Bank, N.A. 101 West 23rd Street Panama City, FL (850) Updated 9/18/ Enterprise Florida Board Members 38 At-Large Members* 4 Ex-Officio** 21 Appointed/Statute *** Page 81 of 86 For Additional Information: Noreen Levitt l Director, Investor Development l l nlevitt@eflorida.com

111 Enterprise Florida Board Sheldon Fox * Harris Corporation 1024 W. NASA Blvd. Melbourne, FL (321) David Fuller * SunTrust Bank Blake Gable * Barron Collier Companies 200 S. Orange Avenue, (MC FL-ORL-1061) Orlando, FL Golden Gate Pkwy Naples, FL (239) Danny Gaekwad *** Information Technology Company/Hotels 2100 S.E. 73rd Loop Ocala, FL (352) Gordon Gillette * TECO Energy 702 North Franklin St. Tampa, FL (813) Alex Glenn * Duke Energy 299 1st Avenue North St. Petersburg, FL (727) Jorge Gonzalez * The St. Joe Company 133 South WaterSound Parkway Watersound, FL (850) Howard Halle * Wells Fargo Bank, N.A. 1 Independent Dr. Ste 2500 Jacksonville, FL (904) Bill Heavener * Full Sail University 3300 University Blvd. Ste 218 Winter Park, FL (407) Marlin Hutchens * Walgreens - Orlando 7003 Presidents Drive STE# 250 Orlando, FL Kevin Hyman * Bright House Networks, LLC 2251 Lucien Way Maitland, FL (407) Dwayne Ingram *** CareerSource Florida Willow Lake Dr. Odessa, FL (813) Updated 9/18/ Enterprise Florida Board Members 38 At-Large Members* 4 Ex-Officio** 21 Appointed/Statute *** Page 82 of 86 For Additional Information: Noreen Levitt l Director, Investor Development l l nlevitt@eflorida.com

112 Enterprise Florida Board Belinda Keiser *** Keiser University 1900 W Commercial Blvd. Ste 180 Fort Lauderdale, FL (954) Chris Kise *** Foley & Lardner, LLP 106 E. College Ave. Ste 900 Tallahassee, FL (850) Brian Lamb *** Fifth Third Bank - Tampa Bay 201 E. Kennedy Blvd., Suite 2000 Tampa, FL Rhea Law ** Florida Council of East Kennedy Blvd, Suite 1700 Tampa, FL (813) Frederick Leonhardt * GrayRobinson, P.A. 301 E. Pine Street, Suite 1400 Orlando, FL (407) Harvey L. Massey * Massey Services Inc. 315 Groveland Street Orlando, FL (407) Marion Mathes * BMG Money, Inc Brickell Ave, Suite 1170 Miami, FL (305) Bob McAdam * Darden Restaurants, Inc Darden Center Dr. Orlando, FL (407) Joe Meterchick * PNC Bank 201 North Franklin Street, Suite 1500 Tampa, FL (813) Gilberto Neves * Odebrecht Construction, Inc. 201 Alhambra Circle Ste 1400 Miami, FL (305) Luis Orbegoso * ADT LLC 1501 Yamato Road Boca Raton, FL Winfred Phillips * University of Florida 341 Tigert Hall, P.O. Box Gainesville, FL (352) Updated 9/18/ Enterprise Florida Board Members 38 At-Large Members* 4 Ex-Officio** 21 Appointed/Statute *** Page 83 of 86 For Additional Information: Noreen Levitt l Director, Investor Development l l nlevitt@eflorida.com

113 Enterprise Florida Board Adam Putnam *** Florida Department of Agriculture & Consumer 407 S. Calhoun Street Tallahassee, FL (850) Jon Rambeau * Lockheed Martin Training and Logistics Solutions 100 Global Innovation Circle Orlando, FL (407) Henry Rodriguez *** Woodmere Holdings, LLC 1515 Ringling Blvd. Ste 890 Sarasota, FL (941) Andy Rosen * Kaplan, Inc Kaplan University Ave. Ft. Lauderdale, FL (954) Gene Schaefer * Bank of America, N.A. 701 Brickell Ave. Miami, FL (305) Rick Scott *** State of Florida Governor's Office 400 South Monroe St. Tallahassee, FL (850) Eric E. Silagy * Florida Power & Light Co. 700 Universe Blvd. Juno Beach, FL (561) Kelly Smallridge * Business Development Board of Palm Beach County 310 Evernia Street West Palm Beach, FL Gary Spulak * Embraer Aircraft Holding, Inc. 276 SW 34th Street Ft. Lauderdale, FL (954) Johnathan Stanton *** LEMA Construction th Street North St. Petersburg, FL (727) Pam Stewart *** Florida Department of Education 325 W. Gaines St. Ste 1514 Tallahassee, FL (850) Bob Swindell ** Florida Economic Development Council 110 E. Broward Blvd., Suite 1990 Fort Lauderdale, FL Updated 9/18/ Enterprise Florida Board Members 38 At-Large Members* 4 Ex-Officio** 21 Appointed/Statute *** Page 84 of 86 For Additional Information: Noreen Levitt l Director, Investor Development l l nlevitt@eflorida.com

114 Enterprise Florida Board Dave Walsh * Mitsubishi Hitachi Power Systems Americas, Inc. 100 Colonial Center Parkway, Suite 500 Lake Mary, FL (407) Mark Wilson ** Florida Chamber Of Commerce 136 S. Bronough St. Tallahassee, FL (850) Joe York * AT&T 150 W. Flagler St. Suite 1901 Miami, FL (904) MISSION EFI s mission is to facilitate job growth for Florida's businesses and citizens leading to a vibrant statewide Updated 9/18/ Enterprise Florida Board Members 38 At-Large Members* 4 Ex-Officio** 21 Appointed/Statute *** Page 85 of 86 For Additional Information: Noreen Levitt l Director, Investor Development l l nlevitt@eflorida.com