EDO Incentives Proposal

1. EDO Incentives Proposal January 31, 2011 Cape Coral Economic Development Office

2. Why Incentives? • Help existing businesses expand • Help attract targeted industries • Increase Cape Coral's competitive edge • Can be combined with Lee County incentives • Help market Cape Coral as Business Friendly Cape Coral Economic Development Office

3. Targeted Industries • Medical/Life Sciences • Manufacturing/Distribution • "Green" Industries • IT Industry/Data Processing • Finance and Insurance Services Cape Coral Economic Development Office

4. Why this Proposal? • Obtain Council's conceptual approval • Put forth formal changes in our ordinances and resolutions as necessary • Provide flexibility for attracting businesses Cape Coral Economic Development Office

5. How Incentive Requests are Processed • Due diligence by staff • Targeted industry • Cost-benefit analysis - ROI identified • Draft a legal agreement • Legal review • Council approval Cape Coral Economic Development Office

6. Existing EDO Incentives • Job Creation Cash Incentive • Impact Fee Deferral for Job Creation Cape Coral Economic Development Office

7. Existing Job Creation Cash Incentive(created 1998) • $750/job when business leases an existing building. • $1000/job when business purchases an existing building. • $1500/job when business constructs its own building. • Minimum # of jobs to be created - 10 Cape Coral Economic Development Office

8. Existing: Impact Fee Deferral • Manufacturers • must create 10 or more new jobs • Professional or Trades • must create 25 or more new jobs • Commercial/Retail • must create 50 or more new jobs Cape Coral Economic Development Office

9. Proposed: Increase Job Creation Incentive • High Wage: $2000/job • If wages are 115% of Lee County average wage for each occupation • Targeted Industry: $1500/job • If wages are 100% of Lee County average wage for each occupation • Decrease Minimum # of Jobs to 5 Cape Coral Economic Development Office

10. Customized Incentive Toolbox Cape Coral Economic Development Office

11. Proposed: Waiver of All Impact Fees • Waiver of all Impact Fees for 18 months • Must include Residential as well as Commercial buildings. Cape Coral Economic Development Office

12. Proposed: Impact Fee Waiver for Change of Use • Waive the Road Impact Fee that would be charged to a business with a higher use moving into an existing building. • Incentive to fill existing buildings • Encourages higher-use businesses such as medical • Already adopted by Collier County, City of Bonita Springs Cape Coral Economic Development Office

13. Proposed: Tax Increment Economic Development Grant • Agreement between the City and an incoming business whereby the City would rebate the City portion of ad valorum taxes paid by the business for an agreed upon period of time or up to a dollar amount. Cape Coral Economic Development Office

14. Development Site Land Cost Write Down • An agreement between the City and a targeted industry to offer city-owned land at a negotiated rate below market. Cape Coral Economic Development Office

15. Proposed: Waive or Defer impact fees or give transportation impact fee credits for a building used as a business incubator or virtual office • Business incubation is part of a regional strategy to promote business health. • Building must be 5000 sf or more. Cape Coral Economic Development Office

16. Questions? Cape Coral Economic Development Office