Moffitt-Speros Economic Development Grant

30:03Good morning, David Engel, Planning and Economic Development Director. It's my pleasure today to present a addendum item AR 117. This is a economic incentive request made by Moffitt Cancer and Research Center for the Spiro campus. The um the Moffitt organization is requesting. Investing a uh twenty one million dollar penny for Pasco commitment from the county to help fund a

30:33two hundred and twenty eight million dollar capital project. The the campus is located at the uh southeasterly corner of uh the Sun Coast and Ridge Road extension.

30:47And uh the pri the project is uh seeking twenty-one million dollars. Uh this uh twenty-one million dollars will be utilized as a local match support to a US EDA community development block grant, DR grant that will uh fund uh assist in funding a uh a five project scope uh consisting Of the two hundred and twenty-eight million dollars I just mentioned. The capital stack on the project is as follows.

31:18Uh there'll be a um

31:23There'll be a $42 million

31:28funding from Moffitt. The county will fund $21 million as proposed, and the USEDA will fund $49.8 million, which is the component of this application. The project consists of RD for radioimmunology. Secondly, it also provides a manufacturing facility and treatment facility. Included will be a incubator that will be privately operated

31:58and shall be taxable. And there will be also a uh a a component for incubator support through USF and Pasco Hernando State College.

32:12Uh currently the the the board has uh funded twenty five point seven million dollars towards the Spiroz project and that uh that was done in an economic development agreement uh that was uh executed in two thousand twenty-one.

32:31And the potential path forward here is uh as I'm just gonna lay out for the board is to approve and execute the draft supporting resolution and letter of support, which I provided the board in draft form and we have finished copies to the uh agenda coordinator and also concurrent with um the submission of an EDA application By Moffitt for $49.8 million in grant support. We're

33:01indicating here that we're asking the board to direct county administrator and county attorney to draft EDA memorializing the county contribution, defining the project's scope, and outlining project deliverables. So in summary, this is a $228 million project. The Moffitt organization is asking for a $21 million local match supporting grant, and Moffitt will put up $42 million as part of the project. And

33:31uh might I add, this will be a defining project for the Moffitt organization. We're going to be doing research and treatment that is uh of global importance for cancer. prevention and treatment. Thank you.

33:45Thank you. Uh Moffat team's here. Speaker Moffat, thank you. Mr. Carpenter. Please uh if you'd like to add any details to this application.

33:56First of all, thank you, David, and thank you to the county staff who's worked with us uh on a relatively rapid timeline to get this here. Uh I also wanted to introduce some members of the the Moffitt team who are here, obviously most notably our founder, Mr. Lee Moffat, um who founded Moffat forty years ago this year and was uh an enthusiastic supporter of expanding to Pasco County.

34:17And Josh, your name and title.

34:19Oh sorry, yeah. Thank you. Josh Carpenter, I'm president of uh Spiroce, uh which is obviously affiliated with Moffat Cancer Center. Um and have been there about nine a little over nine months now. Um also with us today is our general counsel, Chip Fletcher. Uh and then uh this is a as as I was mentioned a part of

34:40So it's not just Moffat and Spiroos. One of our partners is the University of South Florida. Specifically their their pharmacy program and the radio pharmacy program, Professor Nick Karas is here with us today to talk a little bit about their their plan to help build the workforce of the future. And then Dr. Prashanth Pili with Pasco Hernando State College is also here as well. So two key elements of our work. Forced partnership. I just want to talk a little bit about what radio pharmaceuticals are and what the strategic opportunity is for us and how

35:10we think Pasco County can can really lead the way. So radio pharmaceuticals is about a seven billion dollar industry today. It's one of the leading ways to treat cancer, but uh specifically prostate cancer. Uh there's a drug called Pluvicto. Um and the Pivot. trial for that drug as well as the other drug that was approved by the FDA called Lutothera. Both of those drugs were were approved through trials in part performed at Moffitt. it is going to be a thirty billion dollar industry. And so our goal is to

35:40make sure that we position Spiro's and Pasco to capture that economic impact and grow those jobs. And we know that that's a combination of physical infrastructure. Again, without the county support we wouldn't be here today. But um it's also portion it's it's also gonna be built on the talent, that both the talent we have and the talent we'll have in the future. Um One really key component of this is supply chain. And so um it's important to know that this is supply chain not just for um radio pharmaceuticals and treating

36:10patients, but also for national defense. Uh so the the uh twenty twenty two Russia invasion of Ukraine actually disrupted nineteen of our thirty one critical uh Radioisotope supplies, and there's really not one serving the southeastern portion of the United States. Um, this building, what we're proposing as a portion of what we're we're we're doing as a one of the five projects in this grant that, as David mentioned, will have about a $228 million direct economic impact with a a much larger in indirect economic impact, will

36:40meet that need in a meaningful way, but will also position us as a as a leader in uh in this important industry. Um you know the county support thus far has been incredibly um essential and I just want to thank each and every one of you, particularly those of you um who've made time in recent days, even while traveling to to speak with me about this project and I'm happy to answer questions.

37:01Thank you. Board members, uh Commissioner Oakley, are you online before we start comments?

37:09Would you do you have any comments since you're since you're online, would you like to lead us? Thank you, Chairman Mr Chairman M before

37:16Commissioner speaks. We have video?

37:21Yeah, he's got it. I have a yeah.

37:28Well we we've just landed in New York, we're heading uh to our hotel so part of the noise

37:37So yeah, so I mean I met with Josh. Um, you know, Moffat is such a critical part of Pasco's future, uh, for all the jobs it's gonna create and all the lives it's gonna save. Um I'm I wanna make sure we help them make the step and I'm flexible how w whether whether we need penny for Pasco money, a tax abatement program, whatever, but I think it's important that we we do support them and help them make the next step.

38:02Thank you. Thank you. Thank you, Chairman. And we did excuse you today, by the way.

38:09I joined.

38:10And just for the record, so the commissioner is is out of town, out of state on county business. Um under your rules he's allowed to participate in this meeting, um, based on the unusual circumstances of of him being out of town, um, as long as it's he can see be seen see and be seen. Um and you'll have to have any vote on this matter be roll call.

38:39Thank you. Board members.

38:42Ms.

38:42Starkey. Um hey, good morning, and good morning, Speaker Moffitt. Um so uh Josh, you and I talked about this, and as you know, this board is very excited that you guys are here. But I did have some questions, and I don't know if Dave needs to come up because I I'm just seeing these papers. And um so as I mentioned to you on the phone, one one of the concerns for me was was that my understanding when y y'all were coming was that the parcels were gonna be sold. Um

39:14and you're non profit, so therefore we're not collecting property taxes. Um So it You sent me a paper that said if you lease If Moffitt leases the space to a for-profit company, we will get property taxes. So I just I just feel we have to protect the the county's investment in and our and our you know our our general revenue may take a big hit here soon. So um this is all very

39:44important to the people of Pasco County. So I just want someone from my staff to speak to this.

39:49Sure. And I'm happy to just say quickly, uh, you know, as a business person, um I would make sure that I d I'd have a return on my investment, and I think this will have a direct and indirect return on your investment in a in a meaningful way. Uh what I think is important to note is that, you know, the paper that I sent around to you yesterday and that we've also circulated with staff is that our understanding both inside with our internal council and outside council Is that property taxes are assessed not on the ownership but on the use of the property that is is being deployed

40:19or being assessed. So in this case, for example, we estimate that about 70% of the Spiro's campus will ultimately be developed by private sector individuals, either developers or companies themselves. And in fact, you know, I was on the comp uh uh on the phone with a company on the way here that's a a private entity that.

40:39pri pr paying taxes to to Pasco County for work they will perform at Spiro's. Um so i the the question I think on property tax assessments is independent of the ownership but is is totally predicated on the use of the property. And in this case again our goal is to get seventy percent of that property tax base into private sector hands. But happy to uh to also defer to Chip or um I see my

41:03county administrators

41:04also about to speak. Let their general counsel

41:08have have come on up Fletcher. Welcome to the party.

41:13Thank you, uh Chip Fletcher, General Counsel from Offa Cancer Center, and um happy to speak to this. Um uh by way of experience. When we had many years ago a for-profit subsidiary created called M2Gen, which was a joint venture with Merck and some other investors, they were on a piece of property that we owned as a nonprofit cancer center as part of an economic development project in Hillsborough County. Part of the parcel that they use, we pay property

41:44tax on. So that's our experience is that when you have the um commercially facing or commercial operator on property irregardless of who owns it, with the exception of the county, is my understanding. If the county or the state owns the land, then it's exempt. But if it's a nonprofit, they go and look at the use. And so if we're leasing to a commercial operator they'll have to pay tax if we're sharing space, various various uh permutations like that. But that's our experience is that when we do

42:14that we'll have to pay attention to what the use is, what the activity is, and then apply to your tax um your your property appraiser's office and go through a process to have that determination done and then pay tax on the portion of it that's not consistent with our our charitable operations like a like a non profit health health center or something of that nature.

42:36And that i that is consistent with how the county would be treated if we lease to a for profit entity. Um, we'd have to pay pay taxes on the on property taxes even though we would traditionally be exempt.

42:50Okay, and then the um the other uh item that I spoke to Mr. Carpenter about was, you know, it's my hope. I know we're we're making all these jobs and I and I spoke to David about this too and he said they don't really factor this in. I it it's not an issue when we do these contracts, but for me it is, is that if we're if we're asking for these you know, we're excited about these high paying jobs Um I like to see those people live here. I I I had this experience when

43:20I um first started working with All Children's Hospital back when they were putting up their satellite office in a satellite hospital or clinic in Pasco County and I was in charge of fundraising and I would there weren't many businesses back then in the early nineties that were here, so I started knocking on what businesses were here, car dealers. And whatever. And everyone said to me, Oh, we love all children's hospital. We donate down in in Saint Pete, you know, because we live down there. So I had a really hard time

43:50getting sponsors for the Pasco Clinic because they all participated in charitably in the counties that they lived in. So while we had high paying jobs here, we weren't getting the benefit of it. So for me that that's important p I don't know how you codify it, but to me that's a important important part of the matrix is that the high paying the high wage earners actually live here and support our businesses. Um and then third, uh especially since you added manufacturing in there, I hadn't seen that before.

44:20And I great that we I'm glad we have PH S C in there and US F and I see President Hall sitting in the background, but We have a manufacturing program that the county supports and we would like to add that uh into this as well. Um as part of the um agreement and those are my those are my three issues and I'm much more comfortable with it now now that um this has all been explained.

44:49Yes. Uh well I just have a comment that I am very excited about the partnership with the county and USF and with PHS C where they're gonna be training the students with these uh programs to where they can work locally. I just love the idea. Um I think it's gonna be incredible that people are gonna be flying from all over. to get treatment and come to Spearos and um hopefully when they're here they fall in love with Pasco County and decide to stay here, live

45:19here, work here, play here. But um we are very blessed to have you guys here and um thank you, Lee Moffat, forty years ago your vision. we have no idea how many thousands of lives you've saved and and more on the horizon. So God bless you and thank you guys for everything you do.

45:38Commission Oakley. Yeah. I feel very comfortable with the answers I've heard here today to to support this money going toward Moffett and and the impact they have on Pasco County means a lot to all of us. Higher paying jobs, uh better impact for for work and being at home and and people right here locally around Moffat. You'll s you'll see the impact happen in the neighborhood and area and all of Pasco County. So it's I feel very comfortable

46:08with moving forward with a uh project like this that will be for profit, that will pay taxes. We gotta be very uh careful with citizens' money and it's and it's our job to make sure that we don't wastefully spend that money. We make sure that it's going the right way and we're being paid back uh to our citizens because this is our citizens' money and we're very, very lucky to have Moffat with us. We're very happy that you're part of Pasco County. So

46:39with that I'd like to move approval.

46:41Thank you, Commissioner Starkey.

46:42Well, I'll second it and I just wanna say two things. Okay. One, hopefully that bill has died that says a county cannot give any money to a nonprofit because then we wouldn't be able to help you. So let I don't know where that is, but when we get our update Ralph We'll we'll find out about that. Um, I wanna tell you a story that um Two months ago, I I every month I play this game called Bunko, I've been doing it for thirty something years. And um one of my girlfriends in my group said

47:13that um both she and her husband have cancer and they're both being treated by Mafia. And they were so excited that they could just drive, you know, ten minutes and get their treatment instead of taking a whole day and um going down to uh Tampa. And um so this this was the week you opened. They they that and uh they were heading over uh over to Wesley Chapel or where whatever we call that area, I'm not sure. Uh Atlanta Lakes. So um so

47:43I've seconded that and that was just my comment under discussion.

47:49Yes, sir. Go ahead.

47:51I just like to say um I I wanna thank I wanna thank Josh for going through and doing the research 'cause we did have the conversation much about the property tax and the and the the revenue. So Josh, thank you for getting the team together to figure that out. Uh I'm supportive of this as well. I just want to make sure we have the flexibility whether we reimburse ourselves for property tax to reimburse the penny or whatever, but we fund it somehow, some way. And we just have a little flexibility with that detail.

48:18Thank you, uh Chairman. Yes, and I I agree with Commissioner Mariano's comments on um we need to make sure that we're following uh when these leases come come come uh come up with Moffitt and that we uh are making the appropriate uh financial decisions based on those properties. All right, we have a motion

48:39we have to roll call. If I yeah, and if I may, on the resolution we had a couple of edits that didn't get in. Um on the third whereas clause, the description of the proposed project, before proposed projects, estimated two hundred and twenty eight million propos dollar proposed project, and then on Mm-hmm. after the now therefore, be it resolved, number one at the end of that sentence, including the implementing

49:09agreements referenced in paragraph three. Um and with that

49:15And I want to make sh sure you've made the note of the AMP skills as part of the workforce team.

49:21I don't necessarily think we need to put it by name.

49:26Okay. Uh Chair uh Commissioner Oakley, do you want to modify your motion to accept County Attorney's comments? Yes. Second by Commissioner Starkey. Second. And we'll do a roll call vote, clerk.

49:38District one, Commissioner Oakley.

49:39Aye.

49:40District two, Commissioner Weightman. Aye. District three, Commissioner Starkey. Aye. District four, Commissioner Yeager. Aye. District five, Chairman Mariano.

49:49Down.

49:51The motion passes. Thank you, everybody. Okay.

49:57Mm-hmm. Thank you, Mr. Chairman? Yes, sir. Uh I just wanna let you know as I'm up at the DC for the DACO conference, we'll be working together with EDA to try to help get the funding for that project as well. Thank you.

50:10Very good. Thanks, Chair. Have a safe trip. Keep warm.

50:12Yeah,

50:16Josh we'll see you in Washington. Thank you. Speaker

50:18Moffat, good to see you. Thank you for for coming.

50:21Thank you very much.