Project Speed Return on Investment Analysis

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5 R June 9, 2015 Project Speed Return on Investment Analysis Investment / Jobs Overview: PCI (RE; $29MM; TPP; $21MM) $50,000,000 Reduced from $89,000,000 New Jobs (w/in 24 mos) 500 Average Wage $48,850 Annual Payroll $24,425,000 Incentives: Grant Amount Per Job QTI State $ 2,000,000 $ 4,000 City QTI $ 500,000 $ 1,000 State QACF $ 2,500,000 $ 5,000 State QRT $ 900,000 $ 1,800 REV Grant $ 6,600,000 $ 13,200 City MEG $ 3,000,000 $ 6,000 JEA Infra Grant $ 10,000 $ 20 Hillwood Grant $ 4,000,000 $ 8,000 Total $ 19,510,000 $ 39,020 Funding Breakdown City Direct $ 10,100,000 $ 20,200 Increased from $9,850,000 State Direct $ 5,400,000 $ 10,800 JEA (Utility Provider) $ 10,000 $ 20 Hillwood (Landlord) $ 4,000,000 $ 8,000 $ 19,510,000 $ 39,020 Tax Revenues Anticipated: 15 Years 20 Years Ad Valorem Taxes $ 4,682,385 $ 6,578,783 TPP Taxes (12 Year Depr) $ 1,676,431 $ 1,676,481 Total $ 6,358,816 $ 8,255,264 Payroll: $366,375,000 $488,500,000 Additional Taxes: Yearly Employee Ad Valorem $ 1,287,214 $ 1,716,285 $ 85,814 Disposable Income $ 732,750 $ 977,000 $ 48,850 Total $ 2,019,964 $ 2,693,285 Summary 15 Years 20 years Total City Revenue $ 8,378,780 $ 10,948,549 Less City Incentive $ (10,100,000) $ (10,100,000) ROI City Investment $ (1,721,220) $ 848,549 Project Speed Return on Invesment Analysis

6 R June 9, 2015 Project Speed Return on Investment Analysis Project Speed Assumptions Additional Taxes: Employee Ad Valorem assumes that 10 % of employees purchase homes; average value of $200,000 less $50,000 homestead exemption for net taxable value of $150,000 ( mills); 50 employees generating $1, each totalling $85,814 per year in ad valorem taxes. Disposable income is calculated at 20% of yearly income per employee; $9,770 times 1% in net sales tax revenue. Twenty percent of annual payroll is $4,885,000 times 1%; totaling $48,850 per year in net sales tax revenue. $ 1, $ 85,814 $4,885,000.0 $48,850 Project Speed Return on Invesment Analysis

7 Project Name: Project Speed Location: Census Tract: New Jobs: 500 Growth Potential: Strong Port Impact: None Average Wage of New Jobs: $48,850 Are there benefits?: 0 Small Project?: 1 Number of Current Employees: 0 (0=Yes, 1=No) (0=Yes, 1=No) (A Small Project is limited to companies that would have 100 or less employees at completion.) Located Downtown?: If yes, see below for some additional criteria. Recruit and Expand Higher-Wage Job Opportunities (max of 20 points) Project Average Wage (if higher than floor and adjusted for benefits): $48,850 Project Census Tract Wage: $32, County Average Wage (data from FDEO): $46,374 Applicable Average Wage (lower of census tract or county wage): $32,981 Percentage project wages above applicable average wages: 48.11% Higher- wage Impact Score: 17 Increase the Growth and Expansion of Small Business (max of 20 points) Projected number of jobs: 500 Number of Jobs Score: 15 Impact on Port: None Port Impact Score 0 Growth Potential Strong Growth Potential Score: 5 Total Small Business Impact Score 20 Promote and Encourage Private Capital Investment (max of 20 points) Taxable Private Capital Investment: $37,500,000 Building Construction: Leasehold Improvements: (Apply 130% of value to determine score) Tangible Personal Property: $50,000,000 (Apply 75% of value to determine score) Standard Project Evaluation Matrix OR (whichever is higher) Private Capital Investment Impact Score: 20 Promote & Leverage Investment in Economically Distressed Areas (max of 20 points) OR Project Census Tract: Distressed Area Impact Score: 11 Promote a Healthy & Vibrant Downtown (max of 20 points) Location within Downtown: Location Score: Project Profile: If Mixed Use- Makeup? Project Profile Score: #N/A #N/A #N/A DT Zoning Ordinance Design Objectives Met: 1. Improves Pedestrian Environment - setbacks, transparency, encroachments, entrances, riverviews and height of buildings, rooftop design, and streetscape (1pt) 2. Effect on Parking/Public Transit - Project reduces average daily trips (1pt) - Project includes transit stop (1pt) - Project does not exceed parking maximum requirements (1pt) - Project includes structured parking in central civic core (4pt) - Project shares parking with other users (1pt) - Project creates short-term parking spaces (1pt) DT Zoning Ordinance Score: 0 Downtown Impact Score #N/A

8 Project Speed CT / CD # 12 Discretionary Program: Recapture Enhanced Value (REV) Summary Description: A REV grant is designed to bring private capital investment and redevelopment into a nonresidential project site. Utilizing a base year assessed taxable property value (from the Property Appraiser s database) for the project, a certain percentage of the city s incremental increase in ad valorem taxes on real and/or tangible personal property paid by the project above the base year amount is available as a REV grant to the developer. Minimum Eligibility: Project must achieve the following minimum scores on the Project Evaluation Matrix to be eligible for this program: Objective Minimum Points PCI 15 Wages A combination of Small Business 30 points Location PCI Score 20 Wages Score 17 Sm Business Score 20 Distress Score 11 Downtown Score Total 68 Maximum Public Investment Eligibility: The maximum grant amount allowed under the REV program is determined by its scores on the Project Evaluation Matrix: Minimum Combined Score from PCI Score remaining Objectives Maximum Grant Terms and above Up to 35% for up to 5 years and above Up to 50% for up to 7 years and above Up to 50% for up to 10years NOTE: A waiver of the public investment policy is required because the REV Grant Percentage of 75% exceeds the PIP maximum of 50%. The PEM Score exceeds the current maximum score for the current maximum of 50% for 10 years. If a project s proposed private capital investment exceeds $100 Million, it need only meet the minimum eligibility criteria discussed in the previous section to qualify for the maximum investment outlined above. Based on the specific facts and circumstances of each project, JEDC staff will negotiate the base year for the REV Grant formula and a maximum cap for the total amount of the REV Grant. Program Guidelines: A REV grant is paid annually to the developer AFTER construction of the project that creates the increment. There are typically no restrictions on the use of funds.

9 Project Speed CT / CD # 12 Approval Process: 1. Utilize OED Small Business Prequalification Process (as required) 2. OED approval 3. City Council approval (if grant value exceeds $100,000) 4. Mayor s approval and execution of agreement.

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