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City Land Based Customized Incentive Proposal City Centrum 1-2011

City Land Based Customized Incentive Proposal City Centrum 1-2011. Economic Development Office City of Cape Coral, Florida March 21, 2011. Proposed Project. Construction of a two (2) story professional office building – Corporate Headquarters Full Service Advertising Agency in high growth

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City Land Based Customized Incentive Proposal City Centrum 1-2011

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  1. City Land Based Customized Incentive ProposalCity Centrum 1-2011 Economic Development Office City of Cape Coral, Florida March 21, 2011

  2. Proposed Project • Construction of a two (2) story professional office building – Corporate Headquarters • Full Service Advertising Agency in high growth • 20,000 square foot building • Quality design and look • 54 employees immediately • Growth to 104 employees within 3 Years • $56,000 median wage ($20,000 more than average) • $12 million annual sales, all revenue from outside area; 60% of this revenue spent locally • In competition with other entities for project

  3. Proposed Location • Insert map here

  4. Proposal • Grant free land in project area (owned by city) of three (3) acres +/- ½ acre from 10 acre site • Estimated current market value $300,000 • Current tax received is $ 0. (owned by city) • Performance based – tie city incentives to construction and delivery of promised jobs • Note: Lee County to offer $250,000 for job creation as additional incentive

  5. Economic Impact Job creation value: • 104 jobs at $56,000 = $5,824,000 annually • Assuming 15% disposable income = $873,600 annually • 54 Immediate – 50 Created 2012 – 2014

  6. Economic Impact Continued Ad Valorem Taxes: • $2,000,000 construction cost • 300,000 land value • $2,300,000 Total • City taxes received = $18,331 annually

  7. Economic Impact Continued • Payroll $5,824,000 • Taxes 18,331 • Total: $5,842,331 annually • *Over ten years, $58,423,310 • ** One time additional $100,000 impact fees expected

  8. Return on Investment (ROI) • One year ROI: $ 5,842,331/ • City Investment: $300,000 • Return on Investment: 19.5 to 1 • Ten year ROI: $58,423,310/ • City Investment $300,000 • Return on Investment: 194.7 to 1 • Years to payback land-taxes only -- $300,000/$18,331 = 16.4 years

  9. Summary • Meets Council request for target industries • Acts as quality “anchor tenant” for 10 acres across street from City Hall • Fits City Centrum Use and Vision • Will act as catalyst for others in complex • Provide high paying professional jobs • Places property back on tax roles • No “out of pocket” by City • Annual Economic Impact $5,842,331 • Additional $100,000 in one time impact fees expected • Proposed incentive Performance-Based – need construction of the building and promised jobs

  10. Recommendation • Approve land-based incentive of 3 acres (+/- ½ acre) to full service advertising firm valued at approximately $300,000 • Final approval contingent upon development agreement to be presented to Council at later date – based on these parameters.

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