Economic Development Agreement - MU Landco Liquidating Company & SF Landco Liquidating Company, LLC. - Infrastructure Funding and Economic Incentive - $29,269,623.00

1:35:22We will move on to uh believe it or not, regular items before noon.

1:35:32Oh wait a minute, what we got? Oh we

1:35:34got a regular item.

1:35:35Yes, R fifty three.

1:35:36That's that's correct. It's it's a it's a small matter, I'll be done. I just I don't wanna look over you, so Good morning, uh David Engel, Planning and Economic Growth Director, and I am very proud today to present The last piece of a puzzle up at I-75 and 52. This area is a very important regional employment and tax generating area. We're going to have 12 to 13 million square feet in and around this intersection.

1:36:06And this is one of the most important components of that development.

1:36:30Gotcha, sir. I have so much patience I should have been a doctor. Thank you.

1:36:51All right, thank you very much. The the developer and the counterparty in this economic development uh uh agreement is uh Land Co liquidating, uh multi mixed use and also residential. It's a partnership. The lead partner is the Heinz Group. They're a national developer located In Texas. They currently have about a hundred million dollars worth of real estate assets

1:37:21on in their management portfolio. They develop, they they provide expertise, real estate management services, and also master development. The company has fingerprints here in Tampa Bay. They built our wonderful Sturia MPUD over in Odessa on State Road 54. And they also are a lead and instrumental partner in the new RAICE stadium and redevelopment

1:37:52area in St. Petersburg. So they're they're notable and they provide excellent development. The property um The property is located again in the south, the northwestern quadrant of I-75 and City Road 52. The property is 785 acres. It is located in the I-75 Gateway Employment Center. And this proposed development consists

1:38:22of 3 million square feet of industrial, 500,000 square feet of office, 190,000 square feet of retail, a 250-room hotel, and about 23 dwelling units. The idea is to create a vibrant mixed-use destination that's focus is job creation and tax generation.

1:38:46Right.

1:38:47The benefits of this project are as follows. The developer will install key infrastructure, including roadways and utilities of service, this major employment center. The incentive that we're going to propose today will accelerate the development and create pad-ready or development-ready areas of the project. I add it's very important because the demand now for that area of the county is very robust and

1:39:18we want to speed up the development so we can be capture all of the economic development that will transpire in the region. Now that I-4 is getting built out, this is the next place to create jobs and to pay taxes. Also, uh it'll accelerate design and construction of critical on-and-off-site roadway work, especially relieving the congestion at I-75 and State Road 52 for the future. The

1:39:49project, you'll note, is several fold on road infrastructure. The first phase is Vision Road AE, which is the extension north of Old Pasco Road, going northbound over State Road 52. There'll be a four-way intersection, and it'll extend north in a northern direction into the gateway. Employment area where you have your three and a half million square feet of job creation development. And most importantly, Vision

1:40:20Road AD, which is the Ozzy Murphy bypass, will construct a two-lane passenger vehicle and orange belt trail under I-75, interconnecting the Target facility, which is owned by North Point Development. Now, this infrastructure is critical. because during peak hour for vehicles inbound or outbound, whether it be AM or PM peak and not using I-75, there's a clear way of getting around that intersection and avoiding the I-75

1:40:50area. So we're relieving the future congestion with all the employment that we have in the area.

1:40:57The project uh will consist of about 75 million square feet of infrastructure, and the incentive request is 29.3 million using Ad Valorum equivalency grant where we pay the developer back for taxes paid in the previous year. The construction schedule is is uh before you. Their construction start date. On the on and off site improvements will commence on 33138. I have a feeling it'll start quicker.

1:41:29And they're targeting completion at the mid-year calendar year 29.

1:41:39So the impact of this project is very significant. Net the $29.3 million incentive, the general fund will capture $107 million in 20 years. That's equivalent to an average of $5.4 million a year flowing directly into the general fund. We've we've accounted for debt service for bonds and the MSTUs and all the additional charges. This is net

1:42:09cash flow. The project once completed will generate in today's dollars and present value $327 million in the gross domestic product. And I believe there will be more than $2,800 jobs, but that's the minimum in our model, so I will always project a conservative number. And here are the features with this incentive package before you. No incentives will be paid out. We'll be collecting tax dollars, but not paying out incentives until the project receives 500,000 square feet

1:42:39of certificate of occupancies. All county economic funding is performance-based. The developer will have to submit invoices after they install and do the work. We check the work, we check the invoices, and then we release funds. So there's no automatic distribution of funds without deliverables. Lastly, and very important, we're not allowing in the MPUD the ability to Loom out of the employment development with residential and retail.

1:43:10So that is the that's the basis of my recommendation. I would just tell you that in your packet you have some very detailed exhibits, and one exhibit, which is the off-site improvement, you'll see there's an extensive amount of water and sewer work that has to be done to create this employment opportunity for the County. Uh in the aud I I'm here for questions and in the audience is Clark Hobby and his client if you have any questions or maybe we could introduce them and get to know

1:43:40them a little bit. Lane Gardner is the Heinz representative. Mr.

1:43:44Weightman. Thank you, Chairman Mariano angle question. When we're going through this is I believe the largest one I've seen since my time here. As we're going through projects like this, we're looking at these incentives, you know, we're coming into budget time. And the the battle for dollars is there and with all the all the business and folks that are coming in Is a part of this formula gonna capture enough funds for policing? in these projects. How does that work within your formula?

1:44:15Well the formula doesn't account for local services. The formula accounts for net coverage of uh of their taxes plus providing enormous revenue in it. Now there was another project I believe in the beginning of your uh term sir. Uh that was the Pasco Town Center with now it's called Double Branch. This This project is more cost effective and and and efficient than that double branch project, which was a little bit larger. So I

1:44:45believe since it's dominated by employment generation, that uh that the police requirement for this project will be very uh minor. Yeah.

1:44:58Mr. Chairman Mr. Bayonet

1:44:59Point this project. Um three million square feet of uh industrial is huge. The office use for half a million, retail of 190, and the hotel I think is gonna fit all perfectly. Uh and I'm gonna have to balance with the residential, but I really love the estate residential that's gonna be up for the higher executives to come in as well. So this project will be, I think, a great addition to it. us and until they build all the good stuff they're not gonna get any money anyway and it's all the net offsets so huge

1:45:30that over time it's it's it helps them get the project through brings jobs quicker it's a it's a good thing for us.

1:45:36Thank you. It's a good project for so I have no problems with it. Thank you sir. Okay.

1:45:44More approved. Second. I got a motion and a second. All those in favor say aye. Aye.

1:45:49Aye.

1:45:50Motion passed. 3-0. Thank you. All right. Thank you.

1:45:55Okay. Now we'll move on to uh