Marion County Board of County Commissioners
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1 Marion County Board of County Commissioners Office of Economic & Small Business Development Economic Development Initiatives Report Marion County Board of County Commissioners Office of Economic & Small Business Development 2710 E Silver Springs Blvd Ocala, FL (352) Rick Michael, Office of Economic & Small Business Development Manager
2 Executive Summary May 16, 2012 to June 15, 2012 The Economic Development Initiatives Report provides a monthly update on the programs and activities managed by the Office of Economic & Small Business Development. A central interest of the report is a status review of the existing programs established by the Board of County Commissioners to encourage greater economic stability and growth. These Economic Development Initiatives are directly associated with the Doing More with Less Report and the Doing More for JOBS initiative Each month the three staffs from the County s Office of Economic and Small Business Development (OESBD), the Ocala/Marion County Economic Development Corporation (EDC) and the Ocala/Marion County Chamber of Commerce (CoC) report the number of jobs created by each of the organizations for the preceding month. This report does not reflect the actual number for job creation or loss reported by the State or Federal Governments for the Marion County workforce market but rather those jobs reflected in the direct programming managed by the three participating organizations. May 2012 Summary Program Job Growth OESBD 0 EDC 500 CoC DNR Total 500 DNR = Data Not Reported Government does not create jobs but rather facilitates the ability of employers to so. While this report reflects no direct jobs created in May, it does not include the on-going work performed by county staff to facilitate new business lead generation and recruitment. Detailed information concerning project coordination and employment support is shown throughout this document and includes projects such as CitraPac, Inc., a manufacturer of frozen food products, ongoing staff assistance for the Adena Springs Harvesting project (site permitted and under construction), The Refuge Foundation as well as other smaller entrepreneurial start-ups receiving county assistance. Job creation performance to existing County contracts with area employers continue to be monitored by the OESBD and the Clerk of Courts for projects such as Lockheed Martin, IHMC, Qualcomm Atheros, Signature Brands, Scorpion Performance, Fire Programs, or Rasmussen College. Each is ongoing and are not included as part of this report. Audits of the job performance measures of these companies are reviewed throughout the year as part of our contract performance reviews conducted by both County and Clerk of Courts staff. The EDC reported a total of 500 new to Marion County jobs in May. These jobs reflect the action taken on May 1, 2012 by the County Commission s approval of the contract agreement with Sitel Operation Corporation, Inc. The company plans to begin a hiring and training process later this year. No report was received by the Chamber of Commerce for the month of May. Prepared by: Office of Economic & Small Business Development Page 2 of 6
3 Current Program Status Transportation Impact Fee Relief Program Current Activity: A total of $987, in Transportation Impact Fees was abated during the month of May. This total is an increase from April s total of $720, bringing 2012 s year to date total to $3,135, As a comparison, the total of County transportation impact fees abated during 2011 totaled $3,934, which was lower than the overall $5,223, posted for On June 5, 2012, the Board of County Commissioners voted to extend the suspension of the county s Transportation Impact Fees for a period one additional year. This approval extends the suspension period from December 31, 2012 to December 31, Similar action by the Board of County Commissioners on June 21, 2011 also approved the suspension of impact fees for the Fire Rescue fund. The Board s June 5, 2012 approval for extending the Transportation Impact Fees also included an extension of the Fire Rescue Impact Fees to December 31, The Board s suspension of impact fees was supported by the similar action taken in 2011 by the Marion County School Board to suspend the School Board Impact Fees through to December 31, Fire/Rescue Impact Fees abated in May totaled $208, while an additional $525,770 in School Board Impact Fees was reported for the month s overall abatements. This brings the total amount of Fire/Rescue and School Board Impact Fees abated for the 2012 calendar year to $1,525, Total construction values for the month of May 2012 was $36,523,015 raising the total value of commercial and residential construction in the first five months of 2012 to $80,228,319. For comparison, the total value for all new construction projects during the 2011 calendar year was $100,069,685. Economic Development Financial Incentive Grant Program (EDFIG) Current Reviews and Activities: The EDFIG Grant Compliance Committee met on May 16, 2012 to review the status of grant recipients and to coordinate required follow-up for those with delinquent reporting requirements. The following is a summary of several key highlights of this report. Qualcomm Atheros, Inc. latest annual report currently being evaluated by the Internal Auditor s office. OESBD has been working with Qualcomm Atheros legal department for executing a 2 nd Amendment to the original contract to reflect change in corporate name and contact personnel. Resolution was approved by the BOCC on June 5, Rasmussen College The College is overdue in delivery the latest required annual report. The Internal Auditor s office has been in contact with the College s administration and report is pending. According to the Clerk s office, payment of the County s initial payment made in 2011 has not been cashed. Additional follow up will be required. Santelli Tempered Glass, Inc. The Board approved a repeal of the County s EDFIG grant to Santelli Tempered Glass on May 15, The company has received notice of this action. The company closed their Ocala manufacturing facility toward the end of The State has taken similar action. Prepared by: Office of Economic & Small Business Development Page 3 of 6
4 Signature Brands While the company has successfully met and exceeded the EDFIG grant requirements for new capital investments, according to the Internal Auditor s office, the County has not received the second annual report indicating a level of performance for the number of jobs indicated in the original grant application. The Clerk s office is conducting additional follow up. Ewers Technology/Fire Programs The County has not received the 2011 annual report from the company indicating compliance with either the capital investment or required job creation as indicated in the original grant agreement. Additional staff follow up is required. Further relocation or expansion activity is still pending by American Fresh Farms, Integrated Manufacturing, CitraPac, Inc. and Project Canada. The current unobligated balance for the EDFIG Fund is $0.00 as of June 15, Economic Development Infrastructure Grant Program (EDIG) Current Reviews and Activities: The BOCC approved, as part of the FY2011/2012 budget, a new economic development program designed to support small scale transportation, water, sewer or communications infrastructure projects that will create new opportunities for expanded employment for new to Marion County jobs. Two (2) EDIG awards have been made by the BOCC. The first to The Refuge Foundation on January 10, 2012 in the amount of $150,000 for construction of proposed road improvements and the other to the County s Utilities Department in the form of a budget transfer in the amount of $18,000 to extend utility lines to the west side of the intersection of County Road 484 and 200. An additional request for EDIG funds for road egress infrastructure improvements has been processed by staff and is scheduled for BOCC review and consideration on the Board agenda. The request by Climate Control Mechanical Services (CCMS), an Ocala based company is planning a consolidation and expansion of the business within the City of Ocala. The CCMS EDIG grant proposal is based upon estimates for the design, engineering and construction of improvement on NW 4 th Street (former 84 Lumber Property) in Ocala and totals $48,000. The current unobligated balance for the EDIG Fund is $332,000 as of June 15, State Road Grant Update The BOCC approved a state transportation grant from the Florida State Department of Economic Opportunity on January 10, 2012 for the reconstruction of NW 57 th Street on behalf of Pro Poly of America. Construction of the resurfacing was completed in April. Staff is coordinating reporting and reimbursement requirements for the $100,000 road grant with the State of Florida. Payment of this grant will provided to MSTU to help to off-set construction related costs. Prepared by: Office of Economic & Small Business Development Page 4 of 6
5 Doing More for JOBS INITIATIVES Food Processing and Beverage Manufacturing Initiative: The County s marketing team contacted an additional 291 companies during the month of May bringing the County s outreach to food and beverage manufacturers for the calendar year to 997. This is in addition to the 2,649 companies contacted in May s efforts generated 7 additional scheduled conference calls and one (1) scheduled site visit in May. Many of these inquiries and prospect opportunities are long-term and on-going. Food Processing and Beverage Manufacturing DMFJ Initiative Inquiry Activity Activity May 2012 Contract Year to Date Number of Companies Contacted Number of Calls Generated ,296 Number of Inquiries Generated 3 Contracted Business Recruitment Services 0 22 Other: Direct contact, referrals, et al Conference Calls 4 Number of Prequalified Conference Calls 7 27 Number of Projects Confirmed/Pending 5 Contracted Business Recruitment Services 0 4 Other: Direct contact, referrals, et al. 0 7 Site Visits 6 Number of Site Visits 1 18 Definitions: 1. Companies Contacted: The number of individual food and beverage manufacturers contacted either by staff or by the county s professional business services consultant under contracted with the county. 2. Calls Generated: The number of telephone calls generated in order to identify and gain direct contact to key decision makers targeted by the county s economic development staff. 3. Inquiries Generated: The number of prequalified manufacturers that have identified an interest in speaking with county staff and exploring information related to a potential project or relocation interest. These inquiries are generally produced by the county s professional business services consultant as well as individual efforts by county staff, area realtors, networking efforts. 4. Conference Calls: These are inquires that have been prequalified as to a level of interest in obtaining additional information concerning business relocation or expansion data from Marion County or have current expansion projects and are in search of potential locations in the Florida market. These calls involve a series of one-on-one discussion that general focus on location, transportation/logistics, workforce, real estate and market compatibility data. Many of the companies involved in conference calls become active business prospects that require ongoing communication and data as part of a strategic planning process. 5. Projects Confirmed/Pending: These numbers represent business prospects that have indicated that Marion County is one of several locations being considered for relocation or expansion or has committed to a specific Marion County location. 6. Site Visits: These numbers represent individual companies that have or continue to make site visits to Marion County to tour potential relocation or expansion sites, available real estate or to pursue face-to-face discussions concerning workforce, incentives or various levels of negotiations related to real estate or financing. Companies requesting county staff visits to explore relocation or expansion options are also included in these numbers. Staff hosted a site visit for management personnel from Project Italiano; a Canadian frozen food manufacturer in May. Originating from the County s Canadian Recruitment Mission in March, the company is seeking approximately 50,000 square feet for food production space for the employment of up to 35 to 40 workers. The company has prioritized one of several properties that were toured and is planning a follow up visit the week of June 11 th for further discussions with the property owner. Prepared by: Office of Economic & Small Business Development Page 5 of 6
6 The OESBD s marketing team contacted a total of 291 food companies in the month of May and identified seven (7) new business prospects. A series of conference calls to further advance these initial prospects was conducted by staff resulting in one new recruitment project; Project 3 Rivers. This Michigan based investment group is seeking potential opportunities to relocate up to three of the company s manufacturing operations. While this opportunity is only in a preliminary phase, a site visit by the company s principle is being planned for late June. Project Odin The Adena Beef Harvesting project is progressing. Site work is continuing and permitting of the 59,275 square foot facility is underway. As part of the County s investment in this project, a total of $132,710 in transportation and fire impact fees were abated as a result of the County s suspension of impact fees for new development. The project, located in the Fort McCoy area is scheduled to be completed in 2013 and employ up to 150 workers over time. Project Canada continues to seek alternatives to sourcing for electrical power and CO2 production. Combined, these two Canadian projects represent more than $150 million in foreign direct investment as well as potential for several hundred new jobs for the Marion County economy. Alternative Energy Initiative Staff s evaluation of previously identified funding sources from the U.S. Department of Environmental Protection Agency to address Reduced Diesel Emissions or vehicle conversion for the use of CGN alternative fuels was coordinated with the County s Federal Lobbyist. Due to minimum local financial match requirements of $1,050,000 and the restrictive use of Class 5 late model vehicles restrictions, staff recommended passing on this initial grant opportunity. OESBD staff will continue monitoring federal funding announcements for future opportunities Community Redevelopment (CRA) Initiatives: Staff will present the revised final draft of the Findings of Necessity (FoN) written by Real Estate Research Consultants (RERC) for the proposed Silver Springs Community Redevelopment District at the BOCC Board Meeting. This document identifies a series of qualifying conditions for advancing the Silver Springs area along S.R. 40 as an eligible CRA District. Meetings are being scheduled with various County departments to gather input. Additional community based meetings will be scheduled in July and August to encourage citizen input and participation. Following meetings with personnel from the U.S. Environmental Protection Agency s Office of Brownfields and Land Revitalization in Washington, D.C., the Agency recommended further coordination with personnel in the Agency s Regional Office in Florida. In April, staff met with PPM Consultants, EPA s environmental science and engineering consultant who provides technical services for brownfield assessments. The County is encouraged to apply for a Brownfield Coalition Assessment Grant. Coordination with other municipal partners can result in up to $1 million in funding for technical services that could be applied countywide as well as within the proposed CRA. Work is ongoing. Other Business Recruitment Opportunities - In May, due to shifting economic and social conditions in Puerto Rico, the OESBD began a targeted telemarketing campaign to identify potential business prospects that may be interested in a Florida location. To date, staff has identified two projects and has three additional conference calls scheduled for the second half of June. The two new projects include Project Rico and Project Thor. Representatives of both companies are schedule to visit Marion County in July. Prepared by: Office of Economic & Small Business Development Page 6 of 6
The following is a summary of the economic development activities reported by these contracted community organizations for calendar year 2011.
Marion County, Florida Office of Economic and Small Business Development 2011 Economic Development Survey for Marion County, Florida Contact: Richard Michael, Manager, Office of Economic and Small Business
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