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HomeMy WebLinkAboutBED Agenda Packet 10-12-2016 BUSINESS AND ECONOMIC DEVELOPMENT BOARD MEETING CAPE CANAVERAL LIBRARY MEETING ROOM 201 Polk Avenue, Cape Canaveral, Florida Wednesday October 12, 2016 3:00 PM AGENDA CALL TO ORDER: ROLL CALL: PUBLIC PARTICIPATION: Any member of the public may address any items that do not appear on the agenda and any agenda item that is listed on the agenda for final official action by the Business & Economic Development Board excluding public hearing items which are heard at the public hearing portion of the meeting, ministerial items (e.g. approval of agenda, minutes, informational items), and quasi-judicial or emergency items. Citizens will limit their comments to three (3) minutes. The Business & Economic Development Board will not take any action under the "Reports and Open Discussion" section of the agenda. The Business & Economic Development Board may schedule items not on the agenda as regular items and act upon them in the future. ACTION/DISCUSSION ITEMS: 1. Recommendation to City Council for an Ad Valorem Tax Abatement Incentive - Project Zeus REPORTS and OPEN DISCUSSION: ADJOURNMENT: Pursuant to Section 286.0105, Florida Statutes, the City hereby advises the public that: If a person decides to appeal any decision made by the Business and Economic Development Board with respect to any matter considered at this meeting, that person will need a record of the proceedings. and for such purpose that person may need to ensure that a verbatim record of the proceedings is made,which record includes the testimony and evidence upon which the appeal is to be based. This notice does not constitute consent by the City for the introduction or admission into evidence of otherwise inadmissible or irrelevant evidence,nor does it authorize challenges or appeals not otherwise allowed by law. In accordance with the Americans with Disabilities Act: all interested parties may attend this Public Meeting. The facility is accessible to the physically handicapped. Persons with disabilities needing assistance to participate in the proceedings should contact the City Clerk's office (868- 1220 x220 or x221)48 hours in advance of the meeting. City of Cape Canaveral ;�;! Agenda Form ' Business and Economic Development Board Meeting g 10/12/2016 Item No. ..Z Subject: Recommendation to City Council for an Ad Valorem Tax Abatement Incentive - Project Zeus Department: Economic Development Summary: Project Zeus is a medical services and management company considering relocation of its corporate offices from Reston, Virginia to an existing 63,000+ SF building at 8600 Astronaut Blvd.The company currently employs approximately 300 people in the City of Cape Canaveral and plans to create 150 new jobs over 3 years with an average wage of$66,000 and invest $4,500,000 in new capital expenditures. The proposed job creation timeline for the project is as follows: #of New Date jobs will be Jobs created 70 12/31/2017 30 12/31/2018 50 _ 12/31/2019 TOTAL 150 The Company has applied for the State of Florida's Qualified Target Industry(QTI)Tax Refund incentive. The program is available for companies that create high wage jobs in targeted high value-added industries. This incentive includes refunds on corporate income, sales,ad valorem, intangible personal property, insurance premium, and certain other taxes. Pre-approved applicants who create jobs in Florida receive tax refunds of$3,000 per net new Florida full-time equivalent job created. For businesses paying 150 percent of the average annual wage, add $1,000 per job. The selected local community contributes 20 percent of the total tax refund.No more than 25 percent of the total refund approved may be taken in any single fiscal year. New or expanding businesses in selected targeted industries or corporate headquarters are eligible. Because Project Zeus is paying 150%of the statewide average wage,they are eligible for a QTI incentive of$4,000($3,000+ 1,000)per job created. Enterprise Florida's 2014 Average Annual Wage Data Report indicates that the Brevard County average wage is $43,705 (Attachment 3). The 20% contribution is comprised of Brevard County's Ad Valorem Tax (AVT) abatement plus the City of Cape Canaveral's AVT abatement. City Code requires the Business and Economic Development Board to make a Recommendation to City Council on Ad Valorem Tax Abatement incentives. The City Council will consider this item at their October 18t meeting. The AVT abatement applies only to the increase in property taxes after the Capital Investment appraisal is made.The pre-investment AVT remains in effect, locked-in as a maximum for the duration of the abatement. The City and the Board of County Commissioners must work in tandem to effectuate the State QTI approval. Accordingly, City Staff and County/EDC Staff have been working closely. The Economic Development Commission (EDC) of Florida's Space Coast has conducted an economic impact analysis of the Company, which is included in the application(Attachment 1) Business and Economic Development Board Meeting Date: 10/12/2016 Item No. 1 continued Page 2 of 3 On September 28th the EDC AVT Council recommended approval of the incentive at 100%for 10 years. On October 4th'the Board of County Commissioners(BOCC)approved an Ordinance at 2"d Reading, supporting the Abatement. The scoring criteria used by the EDC is provided to assist the Board in making its recommendation. After the Business and Economic Development Board makes its recommendation, the process for each governing body: 1. Each approve a Resolution requesting the Property Appraiser conduct the required analysis and provide the Board with a report as required by Chapter 196.1995(8) F.S. After careful consideration,the property appraiser shall report the following information to the city council: (a) The total revenue available to the county or municipality for the current fiscal year from ad valorem tax sources, or an estimate of such revenue if the actual total revenue available cannot be determined; (b)Any revenue lost to the county or municipality for the current fiscal year by virtue of exemptions previously granted under this section, or an estimate of such revenue if the actual revenue lost cannot be determined; (c) An estimate of the revenue which would be lost to the county or municipality during the current fiscal year if the exemption applied for were granted had the property for which the exemption is requested otherwise been subject to taxation; and (d)A determination as to whether the property for which an exemption is requested is to be incorporated into a new business or the expansion of an existing business,as defined in s. 196.012, or into neither, which determination the property appraiser shall also affix to the face of the application. Upon the request of the property appraiser,the department shall provide to him or her such information as it may have available to assist in making such determination. • BOCC approved their resolution on September 20t. • The Property Appraiser has completed the report requested by the BOCC. The report estimates an annual fiscal impact to the County of$20,685.74 for ten years (Attachment 2). 2. Each approve an AVT Abatement Ordinance at 1st reading. In considering any application for an exemption under this section,the Council must take into account the following: (a)The total number of net new jobs to be created by the applicant; (b)The average wage of the new jobs; (c)The capital investment to be made by the applicant; (d) The type of business or operation and whether it qualifies as a targeted industry as may be identified from time to time by the board of county commissioners or the governing authority of the municipality; (e)The environmental impact of the proposed business or operation; (0 The extent to which the applicant intends to source its supplies and materials within the applicable jurisdiction; and (g) Any other economic-related characteristics or criteria deemed necessary by the board of county commissioners or the governing authority of the municipality. Business and Economic Development Board Meeting Date: 10/12/2016 Item No. 2 continued Page 3 of 3 • BOCC approved their Ordinance at 1st Reading on September 20th • City Council will consider on the 10/18/16 agenda for approval at 1st Reading. 3. Property Appraiser provides report to City • Will be provided to City Council prior to 2"1 reading. 4. Each adopt an AVT Abatement Ordinance at 2' reading. The City Council and Project Zeus will additionally enter into a written tax exemption agreement, which will require the applicant to report at a specific time before the expiration of the exemption the actual number of new, full-time jobs created and their actual average wage.The agreement will provide the city council with authority to revoke, in whole or in part, the exemption if Project Zeus fails to meet the expectations. The ordinance is conditioned upon the applicant executing the agreement. • BOCC adopted at 2' Reading on October 4th. • If approved at lst Reading, the City Council will have the opportunity adopt at 2"d Reading on November 15th. 5. Each approve a Resolution supporting the State QTI. 6. Each perform compliance monitoring for the duration of the abatement. • The EDC and the City will both be responsible for monitoring for compliance during the term of the abatement. • Like Brevard County's AVT Program, the City's Program specifies that an eligible company must produce results to remain eligible for the incentives. If they do not create the jobs,pay the wages and make the capital investment,they do not receive the incentive. The actual total amount of the financial impact will be calculated in the report by the Brevard County Property Appraiser's Office prior to the 2nd Reading of the ordinance. The AVT Application(Attachment 1) includes an EDC estimate of$12,755.52 (local/City annual impact if abated at 100%). That combined with the County's annual impact of$20,685.74 creates a combined estimated annual impact of$33,441.26.This will comprise the annual 20%match for the State QTI incentive. Submitting Department Director: Todd Morley Date: 10/10/16 Attachment(s): Attachment 1: AVT Application Attachment 2: Property Appraiser Report for County Attachment 3: Enterprise Florida Average Wage Requirements Attachment 4: County and EDC Package Financial Impact: Estimated local(City)annual impact of$12,755.52 for ten years if approved at 100%. After ten years,no impact. Staff recommends that the Business and Economic Development Board take the following action(s): Recommend Approval of an Ad Valorem Tax Abatement Incentive for Project Zeus for 10 years at 100%. Approved by Economic Development Director: Todd Morley Date: 10/10/16 ATTACHMENT 1 SUPPLEMENTAL APPLICATION BREVARD COUNTY ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTION PROGRAM APPLICANT NAME: Project Zeus NOTICE: This supplement is to be used by the applicant to provide additional information required by Economic Development Ad Valorem Tax Abatement Ordinance, Chapter 102, Division 3, Sections 181-191, Brevard County Code; and to provide other information requested by the Board of County Commissioners and the entities who will review the application. My business seeking an exemption shall file an application with the County before the business has made the decision to locate a new business In the County or before the business has made the decision to expand an existing in the County. Any business decisions, such as announcements, leasing of space or hiring of employees, made prior to final County Economic Development Tax Abatement approval (and not made contingent upon County approval) may constitute grounds for disapproval. Projects, which clearly do not require inducement,will not be approved. 1. Length of exemption requested is total of 10 years(length of exemption approved is sole discretion of County Commission and commences on the adoption date of the ordinance granting the exemption). 2. Property Owner Name: Astronaut Properties LLC Address:2210 South Atlantic Ave. Cocoa Beach,Fla.32931 Telephone No. (321)784-2318 _ FAX No.(321 )868-0038 3. Authonzed Agent: Address: Telephone Number.( ) Fax No. ( j 4. Type of industry or business: Medical Mananement Company and Medical Services 5. Brief description of product and expansion plans(The applicant is to provide an executive summary of its business plan): The Company is evaluating consolidation of operations in Florida or Virginia. See attached Executive Summary. 6. Anticipated number of new employees(The applicant is to provide a breakdown of jobs to be created by category and planned salary to be paid by position): approximately 150 7. Percent Increase in overall employment: _over 21% 8. Expected number of new employees who will reside in Brevard County: over 90% 9. Percentage of existing employees who have resided in the County for more than two years: estimated at over 90% 10. Anticipated average wage of employees: $66,000 11. Anticipated average annual payroll:$9.9 million for 150 new jobs 12. Anticipated new capital investment as a result of expansion or relocation of business: New construction value: $4,000,000 New personal property value: approximately$500,000 13. Environmental impact of business.(Identify the number and type of environmental permits required as a result of this project: e.g.air, soil and water pollution,water and sewer,dredge and fill,storm water,industrial wastewater;provide a brief narrative statement of the company's environmental impacts): No environmental impact anticipated. The Company does not generate hazardous waste or bio X11 waste 14. Anticipated volume of business or production: Company expects to grow 30%from 2015 to 2016 and expects double digit growth in the next five years. The Company has a compound annual growth rate of 15%over the past ten years. 15. The relocation or expansion would not occur without the exemption: Yes[ ) No[X 16. Source of supplies(local or otherwise): source of supplies County:less than 15%(Brevard County) source of supplies Florida: less than 20% %source of supplies out-of-state:greater than 80% 17. Business is/will be located in a community redevelopment area: Yes[ X l No( ) 1 I Name of area:Cape Canaveral,Florida redevelopment area SIGNATURES: I hereby confirm the information provided by Project Zeus to the Economic Development Commission of Florida's Space Coast and the Board of County Commissioners for the purpose of calculating the economic impact and benefit of the proposed tax abatement is true,accurate and complete. I further confirm that Project Zeus is not in violation of any federal,state or local law,or regulation governing environmental matters. I hereby acknowledge and agree upon approval of the Economic Development Ad Valorem Tax Abatement Ordinance by the Brevard County Board of County Commissioners that Project Zeus will provide CareerSource Brevard its job openings to be posted on wwW,emolovflorlda,com and agrees to consider for employment candidates referred by Brevard Workforce. : t? ,2V ATE:Sepber 9SIGNED: �� (,C) (Preparer) 17X._ (Applicant) (Preparer's Address) TITLE:Chi Financial Officer (Preparer's Telephone Number) ECONOMIC DEVELOPMENT COMMISSION (EDC)USE ONLY EDC Economic Impact Analysis: EDC's Recommendation: The Economic Development Commission of Florida's Space Coast hereby certifies that it has proof, to the satisfaction of the EDC, that the applicant meets the criteria of a new business or for an expansion of an existing business as defined in Section 184, Chapter 102, Brevard County Code. Furthermore, the EDC has conducted an economic impact analysis, applying acceptable multipliers as defined by the State Department of Commerce, which concludes that the applicant does hereby meet the economic benefit test; and, therefore, the EDC recommends to the Brevard County Commission that the applicant receive an ad valorem tax exemption for percent of its eligible taxes and for a period of years. DATE: SIGNED: (EDC President) COUNTY USE ONLY County Manager's Recommendation: DATE: SIGNED: (County Manager) 2 BREVARD COUNTY ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTION Chapter 196,Florida Statutes To be filed with the Board of County Commissioners, the governing board of the municipality, or both, no later than March 1 of the year the exemption is desired to take effect. 1. Business name:Project Zeus Mailing address: 2. Name of person in charge of business Telephone No.: FAX No.: 3. Location of business(legal description and street address)of property for which this report is filed: 8600 Astronaut Blvd,Cape Canaveral,FL; Part Of Govt Lots 3,4 IN SE 1/4 Lying Nely Of St Rd 401 As Des IN Orb 941 Pg 372 4. Date business opened at this facility TBD 5. a. Description of the improvements to real property for which this exemption is requested: $4 million renovation to existing facility b. Date of commencement of construction of improvements:TBD 6. a. Description of the tangible personal property for which this exemption is requested and date when property was purchased: Taxpayer's Estimate of Taxpayer's APPRAISER'S Date Condition Estimate of USE ONLY of Original Fair Market Class or Item Age Purchase Cost Value Office Equipment TBD $500,000 N $500,000 estimate e w b. Average value of inventory on hand: Less than $100,000 of medical supplies and medical equipment. Note excludes medical equipment purchased for US Government clients and held by the Company as government property. c. Any additional personal property not listed above for which an exemption is claimed must be returned on form DR-405 (Tangible Personal Property Tax Return)and a copy attached to this form. 7. Do you desire exemption as a"New Business"[ )or as an"Expansion of an Existing Business"[X ) 8. Describe the type or nature of your business: Medical Management services. 9. Trade level(check as many as apply): 3 Wholesale[ ] Manufacturing[ ] Professional [ X ] Service[X ] Office[ ] Other [ ] 10. a. Number of full time employees employed in Florida:_250 (DR 418) b. If an expansion of an existing business: (1) Net increase in employment 150 or 50% (2) Increase in productive output resulting from this expansion not applicable °k 11. Sales factor for the facility requesting exemption: Total sales in Florida from this facility-one(1)location only_$35 Million(CY 2016 estimate) divided by Total sales everywhere from this facility-one(1)location only$180 million CY2016 estimate)_= 19.4% 12. For office space owned and used by a corporation newly domiciled in Florida: a. Date of incorporation in Florida b. Number of full-time employees at this location 13. If requesting an exemption due to location in a slum or blighted area, please furnish such additional information as required by the County Commission,City Commission,or Property Appraiser. I hereby request the adoption of an ordinance granting an exemption from ad valorem taxation on the above property pursuant to Section 196.1995, Florida Statutes. I agree to furnish such other reasonable information as the Board of County Commissioners, the governing authority of the municipality, or the Property Appraiser may request in regard to the exemption requested herein. I hereby certify that the information and valuation stated above by me is true,correct, and complete to the best of my knowledge and belief. (If prepared by someone other than the taxpayer,his declaration is based on all information of which he has any knowledge.) [ 1 DATE: SeriekQv �` )-0/v Signed: (Pre rer) • SIGNED: cs_ (Taxpayer) (Preparer's Address) TITLE: L)1 Pc- Fis,cq►t(Jk I V (Preparer's Telephone Number) PROPERTY APPRAISER'S USE ONLY Total revenue available to the County or municipality for the current fiscal year from ad valorem tax sources: II. Revenue lost to the County or municipality for the current fiscal year by virtue of exemptions previously granted under this secttion. Ill, Estimate of the revenue which will be lost to the County during the current fiscal year if the exemption applied for were granted had the property for which the exemption is requested otherwise been subject to taxation: IV. Estimate of the taxable value lost to the County or municipality if the exemption applied for were granted: Improvements to real property Personal Property V. I have determined that the property listed above meets the definition, as defined by Section 196.012(15)or(16), Florida Statutes,as a New Business[ ],an Expansion of an Existing Business[ J,or Neither[ ]. VI. Last year for which exemption may be applied: DATE: SIGNED: (Property Appraiser) RETURN TO BE FILED NOT LATER THAN MARCH 1 4 Project Zeus Ad Valorem Tax Abatement Executive Summary Project Zeus is a unique Medical Management Company that has been in business since the 1970s. Project Zeus opened their Florida office in the 90s starting with only 3 employees in a 500 sq.ft.office. Today the company has over 1,000 employees operating in multiple locations around the world. Project Zeus has grown its business from less than $1 million in revenue to over$140 million in revenue in 2015,and from less than 10 customers to over 100 customers serviced today. The demand of these customers, in addition to the anticipated business from new customers, has created the need for the company to expand its operation and hire new employees. Project Zeus is considering consolidating their VA and FL operations in either location. Should the company move forward with a Cape Canaveral location,they would add 150 new employees to the Space Coast which would include relocating 70 positions from their VA. location. Project Zeus's current FL facility does not have room to accommodate the company's growth. As such, the company is considering relocating to 8600 Astronaut Blvd,a 63,000+ SF facility and investing up to $4.5M in capital improvements. The Ad Valorem Tax Abatement program would be of great benefit to the company's growth and expansion efforts by allowing Project Zeus to better leverage its capital to increase efficiency, improve our cost structure and enhance our competitive posture. It will enable us to keep Florida business in Florida, as well as expand our presence in Florida. Beyond this proposed expansion the company expects to continue on its current growth curve. Current projections are for annual sales to be greater than $200 Million and employment reaching 850 permanent full-time employees by the end of 2018. Our current and future growth will continue to provide a positive and lasting impact on the Space Coast economy. We are eagerly anticipating the Commission's assistance with our expansion efforts through the approval of the Ad Valorem Tax Abatement Program. 11114, 1111114 16 ECONOMIC DEVELOPMENT COMMISSION Ad Valorem Tax Abatement OF FLORIDA'S SPACE COAST Job Creation Distribution Worksheet Job Title / Description Number of Jobs Wage (excludes Anticipated Hire Fringe Benefits Timeline (by year) should we add?) HQ Staff Program Management(PM/APM) 10 $75,000 per year 2017-2018 functions HQ Staff:Compliance,Internal Audit,Accounting, 10 $60,000 per year 2017-2018 Payroll,HR Medical Professionals(Doctors,Nurses, EMTP's etc. 30 $102,500 per year 2017-2019 Client Service Administrators(CSA) 50 $33,500 per year 2017-2019 Licensed Clinical Care Specialists 25 $85,000 per year 2018-2019 Information Technology,Applications 10 $90,000 per year 2018-2019 Development and Informatics/Data Scientists Provider and Medical Staffing Recruiting 10 $55,000 per year 2017-2018 International deployment support staff(Vetting/ 5 $45,000 per year 2018-2019 MRPT Clearance processing) Total 150 Estimated Avg 2017-2019 Annual Salary $66,000 per year. $9.9M estimated Economic Benefit (excluding multiplier) EDC of Florida's Space Coast 1597 Haverty Court,Suite 40 I Rockledge,Florida 32955 I Tel:321-638-2000 I Toll Free:(800)535-0203 I Fax: (321)633-4200 www.SpaceCoastEDC.org ECONOMIC DEVELOPMENT ECONOMIC IMPACT ANALYSIS _ J COMMISSION FLORIDA'S SPACE COAST Project Zeus City of Cape Canaveral 09/12/16 Overview: New Job Commitment: 150 Capital Investment: $4,500,000 Average Annual Wage: $66,000 Economic impact from job creation: Jobs Net New Wage Contribution to GDP 150 (Direct) $9,900,000 (Direct) $10,244,343 (Direct) 61 (Indirect) $2,366,862 (Indirect) $3,302,477 (Indirect) 68 (Induced) $2,459,483 (Induced) $4,447,277 (Induced) 279 TOTAL $14,726,345 TOTAL $17,994,097 TOTAL • For every employment position created by Project Zeus approximately 0.86 additional jobs will be developed to support the operation of the facility. • For every payroll dollar paid to Project Zeus approximately $0.49 will be generated for consumer spending. City Tax Impact Years 1-10 Annual Taxes on Construction Projected Tax Assessed $ 11,338.24 Potential Abatement (at 100%) $ 11,338.24 Annual Taxes on Personal Property Projected Tax Assessed $ 1,417.28 Potential Abatement (at 100%) $ 1,417.28 Years 11+: Company will be assessed for 100%of tax liability Tax Millage Code- 26G0 NAICS- 541612 IMPLAN Sector- 454 Analysis based on information supplied by Project Zeus September 2016 Economic impact calculations furnished by EDC Research Office,using IMPLAN Professional 3.0(www.IMPLAN.com). Abatement&millage numbers are estimates;all final numbers determined solely by the Brevard County Property Appraiser's Office and the City of Cape Canaveral. *Subject to City of Cape Canaveral's Ad Valorem Tax Abatement Program Guidelines. SpaceCoastEDC.org 597 Haverty Court,Suite 40•Rockledge,FL 32955•p(321)638.2000•tf(800)535.0203•infocqSpaceCoastEDC.org ATTACHMENT 2 BREVARD COUNTY ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTION Chapter 196,Florida Statutes To be filed with the Board of County Commissioners,the governing board of the municipality, or both,no Fater than March 1 of the year the exemption Is desired to take effect. 1. Business name:Project Zeus Mailing address: 2. Name of person In charge of business,_, Telephone No.; FAX No.: _ 3. Location of business(legal descriptIon and street address)of property for which this report is filed: 8600 Astronaut @Iv.QgpeQangyerar •Part Of Govt Lots 3.4 IN SE 1/4)yjne Nol SLljd 4Q1 As DQs IN()JD 941 Pg 372 4. Date business opened at this facility TBD 5. a. Description of the Improvements to real property for which this exemption Is requested: $4 million renovation to existing facility _ b. Date of commencement of construction of improvements:TBD__,___-,_ 6. a, Description of the tangible personal property for which this exemption Is requested and date when property was purchased: Taxpayer's Estimate of Taxpayer's APPRAISER'S Date Condition Estimate of USE ONLY of Ortglnal Fair Market Class or Item Age Purchase Cost Value Office Equipment TBD $500,000 N $500,000 92= 14040& estimate a yr b. Average value of Inventory on hand: Less than $100,000 of medical supplies and medical equipment. Note excludes medical equipment purchased for US Government clients and held by the Company as government property. c. Any additional personal property not listed above for which an exemption is claimed must be returned on form DR-405 (Tangible Personal Property Tax Return)and a copy attached to this form. 7. Do you desire exemption as a'New Business"( )or es on"Expansion of on Existing Business'(X ) B. Describe the type or nature of your business:__ Medical Management services.•__.__ 9. Trade level(check as many as apply): 3 Wholesale[ ] Manufacturing( I Professional [ X ] Service[X ] Office[ ] Other( I 10. a. Number of full time employees employed in Florida: 250__-_— (DR 418) b. if an expansion of an existing business: (1) Net increase in employment. 150_ or 50% % (2) Increase in productive output resulting from this expanslcn ogtepPlicable-. 11. Sales factor for the facility requesting exemption: Total sales in Florida from this facility-one(1)location only_$35 Million(CY 2016 estimate) divided by Total sales everywhere from this facility-one(1)location only$180 million CY2016 estimate)_=18.4% 12. For office space owned and used by a corporation newly domiciled in Florida: a. Date of incorporation in Florida b. Number of full-time employees at this location 13. If requesting en exemption duo to location in a slum or blighted area,please furnish such additional Information as required by the County Commission, City Commission,or Property Appraiser. I hereby request the adoption of an ordinance granting an exemption from ad valorem taxation on the above property pursuant to Section 196.1995, Florida Statutes. I agree to furnish such other reasonable Information as the Board of County Commissioners, the governing authority of the municipality, or the Property Appraiser may request in regard to the exemption requested herein. I hereby certify that the Information and valuation stated above by me is true,correct,and complete to the best of my knowledge and belief. (if prepared by someone other than the taxpayer,his declaration is based on all Information of which he has any knowledge.) 6a_____._.__ DATE• e 'bl Qv kr Signed: - _ __ (Pre rer) • ICS.._..---- SIGNED:__.__� _ R r �" (Taxpaye1r) j (Preparers Address) TITLE: Pl te) 1`1..84 141 OTT7Ler- --- -- - ___-- (Preparers l eiephone Number) PROPERTY APPRAISER'S USE ONLY I. Total revenue available to the County or municipality for the current fisc l ear from ad valorem tax sources: Il. Revenue lost to the County or municipality for the current fiscal year by virtue of exem tions previously granted under this secttion: 1'ii10t3,.0L III. Estimate of the revenue which will bo lost to the County during the current fiscal year If the exemption applied for were granted had the property for which the exemption 1s requested otherwise been subject to taxation: r r IV. Estimate of the taxable value lost,to the Countyor municipality If the exemption ap ii d to wore ranted: improvements to real property s r�(�X6 0 Personal Property 4) 6) V. I have determined that the property listed above meets the de Brion,as defined by Section 196.012(15)or(16), Florida Statutes,as a New Business[ ],an Expansion of an Existing Business/[,or Neither( I. ll}t ��/ (� �1 o(, VI. Last year for which exemption may bo appliod: ?lth fit -Vt"n t tu.ftib()" tr C'^rs 9 ca�`" by DATE: (A-ICI- k SIGNED: (P•.perty Appra ser) RETURN TO BE FILED NOT I ATER THAN MARCH 1 4 ATTACHMENT 3 yr ; ENTERPRISE STATE OF FLORIDA INCENTIVES FLORIDA AVERAGE WAGE REQUIREMENTS 2014 Average Annual County Wage Data Effective January 1,2016 Average Hourly 115%of Hourly 150%of Hourly 200%of Hourly Annual Avg AnnualAvg Annual Avg Annual Wage' Wage Wage Wage Wage Wage Wage Wage STATEWIDE $44,065 $21.19 $50,675 $24.36 $66,098 $31.78 $88,130 $42.37 ALACHUA $36,941 $17.76 $42,482 $20.42 $55,412 $26.64 $73,882 $35.52 BAKER $28,568 $13.73 $32,853 $15.79 $42,852 $20.60 $57,136 $27.47 BAY $34,776 $16.72 $39,992 $19.23 $52,164 $25.08 $69,552 $33.44 BRADFORD $34,025 $16.36 $39,129 $18.81 $51,038 $24.54 $68,050 $32.72 BREVARD_ $43,705 $21.01 $50,261 $24.16 $65,558 $31.52 $87,410 $42.02 BROWARD $46,033 $22.13 $52,938 $25.45 $69,050 $33.20 $92,066 $44.26 CALHOUN $27,572 $13.26 $31,708 $15.24 $41,358 $19.88 $55,144 $26.51 CHARLOTTE $33,170 $15.95 $38,146 $18.34 $49,755 $23.92 $66,340 $31.89 CITRUS $34,795 $16.73 $40,014 $19.24 $52,193 $25.09 $69,590 $33.46 CLAY $33,694 $16.20 $38,748 $18.63 $50,541 $24.30 $67,388 $32.40 COLLIER $43,181 $20.76 $49,658 $23.87 $64,772 $31.14 $86,362 $41.52 COLUMBIA $32,057 $15.41 $36,866 $17.72 $48,086 $23.12 $64,114 $30.82 DESOTO $31,841 $15.31 $36,617 $17.60 $47,762 $22.96 $63,682 $30.62 DIXIE $30,730 $14.77 $35,340 $16.99 $46,095 $22.16 $61,460 $29.55 DUVAL $48.304 $23.22 $55,550 $26.71 $72,456 $34.83 $96,608 $46.45 ESCAMBIA $38,224 $18.38 $43,958 $21.13 $57,336 $27.57 $76,448 $36.75 FLAGLER $29,687 $14.27 $34,140 $16.41 $44,531 $21.41 $59,374 $28.55 FRANKLIN $27,193 $13.07 $31,272 $15.03 $40,790 $19.61 $54,386 $26.15 GADSDEN $31,828 $15.30 $36,602 $17.60 $47,742 $22.95 $63,656 $30.60 GILCHRIST $30,977 $14.89 $35,624 $17.13 $46,466 $22.34 $61,954 $29.79 GLADES $36,822 $17.70 $42,345 $20.36 $55,233 $26.55 $73,644 $35.41 GULF $33,057 $15.89 $38,016 $18.28 $49,586 , $23.84 $66,114 $31.79 HAMILTON $45,556 $21.90 $52,389 $25.19 $68,334 $32.85 $91,112 $43.80 HARDEE $28,802 $13.85 $33,122 $15.92 $43,203 $20.77 $57,604 $27.69 HENDRY $34,442 $16.56 $39,608 $19.04 $51,663 $24.84 $68,884 $33.12 HERNANDO $31,475 $15.13 $36,196 $17.40 $47,213 $22.70 $62,950 $30.26 HIGHLANDS $29,950 $14.40 $34,443 $16.56 $44,925 $21.60 $59,900 $28.80 HILLSBOROUGH $47,939 $23.05 $55,130 $26.50 $71,909 $34.57 $95,878 $46.10 HOLMES $25,131 $12.08 $28,901 $13.89 $37,697 $18.12 $50,262 $24.16 INDIAN RIVER $37,882 $18.21 $43,564 $20.94 $56,823 $27.32 $75,764 $36.43 JACKSON $29,877 $14.36 $34,359 $16.52 $44,816 $21.55 $59,754 $28.73 JEFFERSON $29,896 $14.37 $34,380 $16.53 $44,844 $21.56 $59,792 $28.75 LAFAYETTE $25,349 $12.19 $29,151 $14.02 $38,024 $18.28 $50,698 $24.37 LAKE $33,150 $15.94 $38,123 $18.33 $49,725 $23.91 $66,300 $31.88 Page 1 f ENTERPRISE STATE OF FLORIDA INCENTIVES FLORIDA_ AVERAGE WAGE REQUIREMENTS Average Hourly 115%of Hourly 150%of Hourly 200%of Hourly Annual Avg Annual Avg Annual Avg Annual Wage2 Wage Wage Wage Wage Wage Wage Wage LEE $37,550 $18.05 $43,183 $20.76 $56,325 $27.08 $75,100 $36.11 LEON $38,178 $18.35 $43,905 $21.11 $57,267 $27.53 $76,356 $36.71 LEVY $28,257 $13.59 $32,496 $15.62 $42,386 $20.38 $56,514 $27.17 LIBERTY $33,076 $15.90 $38,037 $18.29 $49,614 $23.85 $66,152 $31.80 MADISON $30,017 $14.43 $34,520 $16.60 $45,026 $21.65 $60,034 $28.86 MANATEE $36,763 $17.67 $42,277 $20.33 $55,145 $26.51 $73,526 $35.35 MARION $34,111 $16.40 $39,228 $18.86 $51,167 $24.60 $68,222 $32.80 I MARTIN MIAMI-DADE $38,377 $18.45 $44,134 $21.22 $57,566 $27.68 $76,754 $36.90 $47,657 $22.91 $54,806 $26.35 $71,486 $34.37 $95,314 $45.82 MONROE $34,850 $16.75 $40,078 $19.27 $52,275 $25.13 $69,700 $33.51 NASSAU $37,211 $17.89 $42,793 $20.57 $55,817 $26.83 $74,422 $35.78 OKALOOSA $37,802 $18.17 $43,472 $20.90 $56,703 $27.26 $75,604 $36.35 OKEECHOBEE $32,572 $15.66 $37,458 $18.01 $48,858 $23.49 $65,144 $31.32 ORANGE $43,889 $21.10 $50,472 $24.27 $65,834 $31.65 $87,778 $42.20 OSCEOLA $33,305 $16.01 $38,301 $18.41 $49,958 $24.02 $66,610 $32.02 PALM BEACH $49,123 $23.62 $56,491 $27.16 $73,685 $35.43 $98,246 $47.23 _PASCO $34,385 $16.53 $39,543 _ $19.01 $51,578 $24.80 $68,770 $33.06 PINELLAS $44,291 $21.29 $50,935 $24.49 $66,437 $31.94 $88,582 $42.59 POLK $38,248 $18.39 $43,985 $21.15 $57,372 $27.58 $76,496 $36.78 PUTNAM $32,401 $15.58 $37,261 $17.91 $48,602 $23.37 $64,802 $31.15 SANTA ROSA $32,210 $15.49 $37,042 $17.81 $48,315 $23.23 $64,420 $30.97 SARASOTA $40,877 $19.65 $47,009 $22.60 $61,316 $29.48 $81,754 $39.30 SEMINOLE $41,776 $20.08 $48,042 $23.10 $62,664 $30.13 $83,552 $40.17 ST JOHNS $38,072 $18.30 $43,783 $21.05 $57,108 $27.46 $76,144 $36.61 ST LUCIE $34,712 $16.69 $39,919 $19.19 $52,068 $25.03 $69,424 $33.38 SUMTER $35,371 $17.01 $40,677 $19.56 $53,057 $25.51 $70,742 $34.01 SUWANNEE $28,279 $13.60 $32,521 $15.64 $42,419 $20.39 $56,558 $27.19 TAYLOR $38,385 $18.45 $44,143 $21.22 $57,578 $27.68 $76,770 $36.91 UNION $32,947 $15.84 $37,889 $18.22 $49,421 $23.76 $65,894 $31.68 VOLUSIA $34,696 $16.68 $39,900 $19.18 $52,044 $25.02 $69,392 $33.36 WAKULLA $31,001 $14.90 $35,651 $17.14 $46,502 $22.36 $62,002 $29.81 WALTON $31,598 $15.19 $36,338 $17.47 $47,397 $22.79 $63,196 $30.38 WASHINGTON $28,764 $13.83 $33,079 $15.90 $43,146 $20.74 $57,528 $27.66 ' Florida Department of Economic Opportunity,Labor Market Statistics Center,Quarterly Census of Employment and Wages Program, in cooperation with the U.S. Department of Labor,Bureau of Labor Statistics. 2All incentives applications received on or after January 1,2016 will be subject to the new 2014 wages rev. 1/16 Page 2 ATTACHMENT 4 ECONOMIC DEVELOPMENT fCOMMISSION AD VALOREM TAX ABATEMENT FLORIDA'S SPACE COAST PROJECT ZEUS-Application Package DATE September 28,2016 TO: AVT Council Members FROM: Jennifer Hashagen Manager,Business Development RE: Company Considering Expanding in Brevard County The Economic Development Commission of Florida's Space Coast is managing a business expansion project for Project Zeus. Project Zeus plans to create 150 new jobs over the next 3 years,with an average wage of$66,000 and a total capital investment of$4,500,000. The EDC is seeking to leverage the Brevard County Ad Valorem Tax Abatement program to help the client offset the cost of renovating a facility and purchasing new equipment. Enclosed please find the following: - AVT Program Guidelines - Executive Summary - Completed AVT application - Completed AVT supplemental application - Economic impact analysis If you should have any questions regarding any of the enclosed documentation or on the company's business expansion,please feel free to contact me. SpaceCoastEDC.org 597 Haverty Court,Suite 40•Rockledge,FL 32955•p(321)638.2000•tf(800) 535.0203•infooSpaceCoastEDC.org fDEVELOPMENT ECONOMIC BREVARD COUNTY AD VALOREM COMMISSION .__, ...i' FLORIDA'S SPACE COAST TAX ABATEMENT PROGRAM Program Guidelines-as of July 7,2015 NUMBER OF NEW EMPLOYEES OR(EXISTING BUSINESS EXPANSION OPTION) POINTS 10-20 (25%increase in employees) 3 21 -60 (50%increase in employees) 6 61 -99 (75%increase in employees) 9 100 and up (100%increase in employees) 10 PAYROLL POINTS Below Average0 Average($42,904)* 4 25%Above Average($53,630) 8 50%Above Average($64,356) 10 100%Above Average ($85,808) 12 CAPITAL INVESTMENT POINTS $ 150,000-$1,000,000 1 $ 1,000,001 -$8,000,000 2 $ 8,000,001 and up 3 TOTAL POINTS** *The Average Annual Wage figure shall be updated at the beginning of each calendar year as provided by Enterprise Florida,Inc. **Minimum of 9 points required to qualify for exemption as authorized by Brevard County Board of County Commissioners on April 13,2000. SCORING TOTAL POINTS PERCENTAGE OF EXEMPTION LENGTH OF EXEMPTION 9_12 points 60%exemption 6 years _- 13-15 points 70%exemption y __._ ears ________ 16- 19 points 80%exemption 8years_ 20-22 points 90%exemption 9 years 2325 points 100%exemption 10 years Adjustment Consideration: The Brevard County Board of County Commissioners may consider individual or company documentation indicating that the business is going to be critical to attracting other key businesses of that industry cluster;in those incidences program guidelines may be adjusted on a case-by-case basis. SpaceCoastEDC.org 597 Haverty Court,Suite 40•Rockledge,FL 32955•p(321)638.2000•tf(800)535.0203•infokoSpaceCoastEDC.org SUPPLEMENTAL APPLICATION BREVARD COUNTY ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTION PROGRAM APPLICANT NAME:Project Zeus NOTICE: This supplement is to be used by the applicant to provide additional Information required by Economic Development Ad Valorem Tax Abatement Ordinance, Chapter 102, Division 3, Sections 181-191, Brevard County Code; and to provide other information requested by the Board of County Commissioners and the entities who will review the application. Any business seeking an exemption shall file an application with the County before the business has made the decision to locate a new business In the County or before the business has made the decision to expand an existing in the County. Any business decisions, such as announcements, leasing of space or hiring of employees,made prior to final County Economic Development Tax Abatement approval (and not made contingent upon County approval) may constitute grounds for disapproval. Projects, which 1 clearly do not require inducement,will not be approved. 1. Length of exemption requested is total of 10 years(length of exemption approved is sole discretion of County Commission and commences on the adoption date of the ordinance granting the exemption). 2. Property Owner Name: Astronaut Properties LLC Address:2210 South Atlantic Ave.Cocoa Beach,Fla.32931 Telephone No. (321)784-2318 FAX No. (321 )868-0038 3. Authonzed Agent: Address: Telephone Number:(._ ) Fax No. ( 1 4. Type of industry or business: Medical Management Company and Medical Services 5. Brief description of product and expansion plans(The applicant is to provide an executive summary of its business plan): The Company is evaluating consolidation of operations in Florida or Virginia. See attached Executive Summary. _ 6. Anticipated number of new employees(The applicant is to provide a breakdown of jobs to be created by category and planned salary to be paid by position): approximately 150 7. Percent Increase in overall employment: _over 21% 8. Expected number of new employees who will reside in Brevard County: over 90% 9. Percentage of existing employees who have resided in the County for more than two years: estimated at over 90% 10. Anticipated average wage of employees: $66,000 11. Anticipated average annual payroll:$9.9 million for 150 new jobs 12. Anticipated new capital investment as a result of expansion or relocation of business: New construction value: $4,000,000 New personal property value: approximately$500,000 13. Environmental impact of business.(identify the number and type of environmental permits required as a result of this project: e.g.air, soil and water pollution,water and sewer,dredge and fill,storm water,industrial wastewater;provide a brief narrative statement of the company's environmental impacts):No environmental impact anticipated. The Company does not generate hazardous waste or bio waste 14. Anticipated volume of business or production: Company expects to grow 30%from 2015 to 2016 and expects double digit growth in the next five years. The Company has a compound annual growth rate of 15%over the past ten years. _ 15. The relocation or expansion would not occur without the exemption: Yes[ j No[X j 16. Source of supplies(local or otherwise): %source of supplies County:Jess than 15%(Brevard County) %source of supplies Florida: less than 20% %source of supplies out-of-state:greater than 80% 17. Business is/will be located in a community redevelopment area: Yes[ X j No[ 1 Name of area:Cape Canaveral,Florida redevelopment area SIGNATURES: I hereby confirm the information provided by Project Zeus to the Economic Development Commission of Florida's Space Coast and the Board of County Commissioners for the purpose of calculating the economic impact and benefit of the proposed tax abatement Is true,accurate and complete. I further confirm that Project Zeus is not in violation of any federal,state or local law,or regulation governing environmental matters. I hereby acknowledge and agree upon approval of the Economic Development Ad Valorem Tax Abatement Ordinance by the Brevard County Board of County Commissioners that Project Zeus will provide CareerSource Brevard its job openings to be posted on yrww,emolovflorlda,com and agrees to consider for employment candidates referred by Brevard Workforce. DATE:Septe ber 9,2 1 (2_ SIGNED: ,`r--- �/ (Preparer) SIGNED: yc--- _ (Applicant) (Preparer's Address) TITLE:Chi Financial Officer (Preparer's Telephone Number) ECONOMIC DEVELOPMENT COMMISSION (EDC)USE ONLY EDC Economic Impact Analysis: EDC's Recommendation: The Economic Development Commission of Florida's Space Coast hereby certifies that it has proof, to the satisfaction of the EDC,that the applicant meets the criteria of a new business or for an expansion of an existing business as defined in Section 184, Chapter 102, Bravard County Code. Furthermore, the EDC has conducted an economic impact analysis, applying acceptable multipliers as defined by the State Department of Commerce, which concludes that the applicant does hereby meet the economic benefit test; and, therefore, the EDC recommends to the Brevard County Commission that the applicant receive an ad valorem tax exemption for percent of its eligible taxes and for a period of years. DATE: SIGNED: (EDC President) COUNTY USE ONLY County Manager's Recommendation: DATE: SIGNED: ._.__......_.....---- (County Manager) 2 BREVARD COUNTY ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTION Chapter 196,Florida Statutes To be filed with the Board of County Commissioners, the governing board of the municipality, or both, no later than March 1 of the year the exemption is desired to take effect. 1. Business name:Proiect Zeus Mailing address: 2. Name of person in charge of business Telephone No.:_�.__..-_----- FAX No.: 3. Location of business(legal description and street address)of property for which this report is filed: 8600 Altronaut Blvd,Cape Canaveral,FL:Part Of Govt Lots 3,4 IN SE 1/4 Lying Nely Of St Rd 401 As Des IN Orb 941 Po 372 4. Date business opened at this facility TBD 5. a. Description of the improvements to real property for which this exemption is requested: $4 million renovation to existing facility_ b. Date of commencement of construction of improvements:TBD 6. a. Description of the tangible personal property for which this exemption is requested and date when property was purchased: Taxpayer's Estimate of Taxpayer's APPRAISERS Date Condition Estimate of USE ONLY of Original Fair Market Class or Item Age Purchase Cost Value Office Equipment TBD $500,000 N $500,000 estimate e w b. Average value of inventory on hand: Less than $100,000 of medical supplies and medical equipment. Note excludes medical equipment purchased for US Government clients and held by the Company as government property. c. Any additional personal property not listed above for which an exemption is claimed must be returned on form DR-405 (Tangible Personal Property Tax Return)and a copy attached to this form. 7. Do you desire exemption as a"New Business"( )or as an"Expansion of an Existing Business"(X J 8. Describe the type or nature of your business: Medical Management services._ 9. Trade level(check as many as apply): 3 Wholesale[ j Manufacturing[ ) Professional [ X j Service[X ] Office[ j Other [ 10. a, Number of full time employees employed in Florida:_250 (DR 418) b. If an expansion of an existing business: (1) Net increase in employment 150 or 50% °Jo (2) Increase in productive output resulting from this expansion not applicable 11. Sales factor for the facility requesting exemption: Total sales in Florida from this facility-one(1)location only_$35 Million(CY 2016 estimate) divided by Total sales everywhere from this facility-one(1)location only$180 million CY2016 estimate)_= 19.4% 12. For office space owned and used by a corporation newly domiciled in Florida: a. Date of incorporation in Florida b. Number of full-time employees at this location 13. If requesting an exemption due to location in a slum or blighted area, please furnish such additional information as required by the County Commission,City Commission,or Property Appraiser. I hereby request the adoption of an ordinance granting an exemption from ad valorem taxation on the above property pursuant to Section 196.1995, Florida Statutes. I agree to furnish such other reasonable information as the Board of County Commissioners, the governing authority of the municipality, or the Property Appraiser may request in regard to the exemption requested herein. I hereby certify that the information and valuation stated above by me is true,correct, and complete to the best of my knowledge and belief. (If prepared by someone other than the( taxpayer,his declaration/ is based on all information of which he has any knowledge.) / r DATE: SQ ;�QK �- 9 / bt AL___ Signed: P • �! (Pre rer)�____._.____ SIGNED: `,. _ (Taxpayer) ( / (Preparer's Address) TITLE: (� f4• Ft.sct►C)' ) V.1 htec- (Preparer's Telephone Number) PROPERTY APPRAISER'S USE ONLY Total revenue available to the County or municipality for the current fiscal year from ad valorem tax sources: II. Revenue lost to the County or municipality for the current fiscal year by virtue of exemptions previously granted under this secttion: Estimate of the revenue which will be lost to the County during the current fiscal year if the exemption applied for were granted had the property for which the exemption is requested otherwise been subject to taxation: IV. Estimate of the taxable value lost to the County or municipality if the exemption applied for were granted: Improvements to real property Personal Property V. I have determined that the property listed above meets the definition, as defined by Section 196.012(15)or(16), Florida Statutes, as a New Business[ ),an Expansion of an Existing Business[ 3,or Neither[ 3. VI. Last year for which exemption may be applied: DATE: SIGNED: (Property Appraiser) RETURN TO BE FILED NOT LATER THAN MARCH 1 4 Project Zeus Ad Valorem Tax Abatement Executive Summary Project Zeus is a unique Medical Management Company that has been in business since the 1970s. Project Zeus opened their Florida office in the 90s starting with only 3 employees in a 500 sq.ft.office. Today the company has over 1,000 employees operating in multiple locations around the world. Project Zeus has grown its business from less than $1 million in revenue to over $140 million in revenue in 2015,and from less than 10 customers to over 100 customers serviced today. The demand of these customers, in addition to the anticipated business from new customers, has created the need for the company to expand its operation and hire new employees. Project Zeus is considering consolidating their VA and FL operations in either location. Should the company move forward with a Cape Canaveral location,they would add 150 new employees to the Space Coast which would include relocating 70 positions from their VA. location. Project Zeus's current FL facility does not have room to accommodate the company's growth. As such, the company is considering relocating to 8600 Astronaut Blvd, a 63,000+ SF facility and investing up to $4.5M in capital improvements. The Ad Valorem Tax Abatement program would be of great benefit to the company's growth and expansion efforts by allowing Project Zeus to better leverage its capital to increase efficiency, improve our cost structure and enhance our competitive posture. It will enable us to keep Florida business in Florida,as well as expand our presence in Florida. Beyond this proposed expansion the company expects to continue on its current growth curve. Current projections are for annual sales to be greater than $200 Million and employment reaching 850 permanent full-time employees by the end of 2018. Our current and future growth will continue to provide a positive and lasting impact on the Space Coast economy. We are eagerly anticipating the Commission's assistance with our expansion efforts through the approval of the Ad Valorem Tax Abatement Program. (1,114 ECONOMIC DEVELOPMENT COMMISSION Ad Valorem Tax Abatement OF FLORIDA'S SPACE COAST Job Creation Distribution Worksheet Job Title / Description Number of Jobs Wage (excludes Anticipated Hire Fringe Benefits Timeline (by year) should we add?) HQ Staff Program Management(PM/APM) 10 $75,000 per year 2017-2018 functions HQ Staff:Compliance,Internal Audit,Accounting, 10 $60,000 per year 2017-2018 Payroll,HR Medical Professionals(Doctors,Nurses,EMTP's etc. 30 $102,500 per year 2017-2019 Client Service Administrators(CSA) 50 $33,500 per year 2017-2019 Licensed Clinical Care Specialists 25 $85,000 per year 2018-2019 Information Technology,Applications 10 $90,000 per year 2018-2019 Development and Informatics/Data Scientists Provider and Medical Staffing Recruiting 10 $55,000 per year 2017-2018 International deployment support staff(Vetting/ 5 $45,000 per year 2018-2019 MRPT Clearance processing) Total 150 Estimated Avg 2017-2019 Annual Salary $66,000 per year. $9.9M estimated Economic Benefit (excluding multiplier) EDC of Florida's Space Coast 1597 Haverty Court,Suite 40 I Rockledge,Florida 32955 I Tel:321-638-2000 I Toll Free:(800)535-0203 I Fax: (321)633-4200 www.SpaceCoastEDC.org