Alachua Launches Business Incentive Program

ALACHUA – The City of Alachua has approved the Business Incentive Program to spur economic development within the city. During the Sept. 23, 2019 meeting, the Commission directed staff to develop legislation to initiate a Business Incentive Program to encourage economic development and business relocation by maintaining a welcoming business environment, create business growth and increased employment in Alachua.

The program consists of six specific business incentives. The Business Development Electric Discount provides an incremental discounting of Alachua electric rates over a five-year period. The Electric Contribution in Aid of Construction provides for the discounting of costs associated with the extension, addition and/or modification of City of Alachua electric infrastructure. The City will also offer expedited permit approval.

Since much of the program is geared toward attracting high tech and biotech businesses and startups, the City is also offering funding incentives for small businesses. These will include an Incubator/Accelerator Graduate Lease Subsidy, which provides for rental subsidies for incubator and/or accelerator graduates. A Small Business Assistance Program will provide for reimbursable matching funds related to City of Alachua fees/charges for small businesses. The final part of the program is a Tech Matching Grant Fund which will provide matching funds for technology-focused events and programs.

In other business, the Commission approved on first reading a preliminary plat and final (PD) planned development plan for Phase 1 of the Tolosa PD-R. The proposed new subdivision is sited on an 18.74-acre property and consists of 43 lots with associated common areas and rights-of-way. The proposed subdivision is located north of Northwest 158^th Avenue and west of Hipp Way. Access would be provided by one ingress/egress point located on Hipp Way, with a stabilized emergency access point onto Northwest 158^th Avenue. The initial Tolosa PD-R Zoning was approved on June 10, 2019 for the development of 160 residential units consisting of 120 single-family houses and 40 multifamily units. At the June 9, 2020 meeting of the Planning and Zoning Board, the Tolosa Final PD Plan was approved unanimously and forwarded to the City Commission with a recommendation to approve.

In other business, the Commission approved a contract with Jacobs for $65,000 to provide engineering services to assist in the engineering design for wastewater lift station modeling. Funds for the project will come from the Waste Water Fund.

The Commission also amended the Fiscal Year 2019-2020 Budget for the receipt of unanticipated revenue to establish the Children's Trust Grant Special Revenue Fund. The Children's Trust of Alachua County (CTAC) Board approved grant rankings on Feb. 10, 2020 and directed that contracts be executed with the recommended grant recipients. These rankings resulted in an award $135,002 to the City of Alachua for the proposed youth enrichment program.

Brightmark, LLC, a private company focused on transforming plastic waste into renewable fuel, is considering locating in Alachua to expand its operations. The firm is projected to create 352 new jobs over three years beginning in 2023 with an average annual compensation of approximately $41,870.

The Florida Department of Economic Opportunity (DEO) offers several incentives to prospective and expanding businesses, such as Brightmark. The Qualified Target Industry (QTI) Tax Refund is such a program. If approved for the program, a company may receive refunds on taxes it pays including corporate income tax, sales tax, and ad valorem tax following job creation.

Brightmark, LLC. is making application for participation in the QTI program totaling $1,760,000. The total award amount is derived from a formula developed by DEO that places valuation on each new job created. Brightmark qualified for $5,000 per expected new job created. The QTI program requires a 20 percent local government match. The local government match totals $352,000 divided equally between Alachua County and the City of Alachua.

The company may only receive refunds on taxes paid and must demonstrate job creation and will only receive a refund for actual jobs created. The company must have paid taxes to the City of Alachua totaling at least the City's refund amount to receive the refund. The City's share of the funding, $176,000, is payable over four years following job creation from each prior year.

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