The City of Cape Coral seeks to achieve an economically balanced community that is recognized for an exceptional quality of life for its residents, businesses and visitors by attracting, growing and retaining businesses and commercial development, and by expanding high-wage employment opportunities within the city.

The Florida Legislature has stated that the use of public funds toward the achievement of such economic development goals constitutes a public purpose. For the purposes of the City's Economic and Business Development Incentive Programs, it constitutes a public purpose to expend public funds for economic development activities, including, but not limited to, construction of office, light industry and mixed-use developments; developing or improving local infrastructure, issuing bonds to finance or refinance the cost of capital projects for industrial or manufacturing plants, leasing or conveying real property, and making grants to private enterprises or developers for the expansion of businesses existing in the community, attraction of new businesses to the community, or enticing private investment and development of non-residential and mixed-use projects.

The City Council finds that the health, safety, and welfare of the city will be protected and enhanced by offering incentives to qualified businesses/developers looking to invest in and create new jobs in the city.

In accordance with F.S. § 166.021, as may be amended from time to time, the City Council finds that the expenditure of public funds to attract or retain businesses to enhance economic development goals constitutes a public purpose.

The City of Cape Coral's Economic and Business Development Incentive Programs are created for the purposes of expanding employment and private investment within the city pursuant to F.S. § 166.021(8), to promote local businesses, and to enhance economic activity. The City aims to provide economic incentives outlined herein to further the municipal purpose of inducing employment and investment within the city.

(Ord. 99-21, § 1, 12-15-2021)

The following words, terms and phrases have the meanings set forth herein.

APPLICANT. Any person, firm, developer, partnership or corporation submitting an Economic and Business Development Incentive Program application to the City.

APPLICATION. A written application for assistance from the City's Economic and Business Development Incentive Program on the form prescribed by the City, together with any additional information requested by the City.

AVERAGE ANNUAL EMPLOYMENT. The sum of the number of full-time equivalent employees as of the last day of each month of the preceding calendar year divided by 12.

AVERAGE ANNUAL WAGE. The average of all wages and salaries in Lee County, Florida.

BENEFITS. The value to the City of providing incentives through its Economic and Business Development Incentive Program, which generally includes:

•

Increased property values within the city.

•

Increased revenue from taxes, fees and permits.

•

Increased tourism and commercial activity within the city.

•

Increased employment opportunities for City residents.

•

Increased income for city residents from higher wage jobs created in the city.

BUSINESS, FOR PROFIT. A for-profit sole proprietorship, corporation, partnership, association, organization, agency or other entity which operates a commercial, professional, or industrial enterprise of any kind.

BUSINESS, NOT FOR PROFIT. A not-for-profit corporation, partnership, association, organization, agency, or other entity which operates a commercial, professional, or industrial enterprise of any kind for purposes other than profit and in which no part of the organization's income is distributed to its members, directors, or officers.

CAPITAL INVESTMENT. Any expenditure for an expansion of an existing business or a new business to be located in the city which can be capitalized under generally accepted accounting principles.

CITY. The City of Cape Coral, Florida.

CITY COUNCIL. The governing body of the City of Cape Coral, Florida.

COMMUNITY REDEVELOPMENT AGENCY (CRA). The Cape Coral Community Redevelopment Agency.

COMMUNITY REDEVELOPMENT AREA. The area designated by the City Council pursuant to F.S. § 163.330, as appropriate for community redevelopment.

CORPORATE HEADQUARTERS BUSINESS. An international, national, or regional headquarters office of a multinational or multistate business enterprise or national trade association, whether separate from or connected with other facilities used by such business.

DEVELOPMENT. The activity of improving real property to the extent of adding value to the tax base through construction of new, or expansion of existing, office, commercial, industrial, or mixed-use developments, and the creation of employment opportunities.

EXPANSION. The expansion of a business by or through additions to real and personal property on a site co-located with a commercial or industrial operation owned by the same business, or a private developer to expand or create commercial, professional or industrial space, resulting in a net increase of office, commercial, or industrial space and/or in employment at such business.

EXISTING BUSINESS. A business which is already operating an existing commercial or industrial enterprise within the city.

FISCAL YEAR. The fiscal year of the City of Cape Coral, October 1 through September 30.

FULL-TIME EMPLOYEE. A person employed by a business for at least 40 hours per week. This term does not include persons who act as or serve as independent contractors to the business or persons who have an ownership interest in the business unless they are also employed by the business.

FULL-TIME EQUIVALENT EMPLOYEES. Two or more employees of a business, neither of whom is employed by the business for at least 40 hours per week, but whose combined weekly work hours for the business total at least 40 hours per week. For example, two part-time employees of a business, each of whom work 20 hours per week for the business, would constitute one Full-Time Equivalent Employee for the business. This term does not include persons who act as or serve as independent contractors to the business or persons who have an ownership interest in the business unless they are also employed by the business.

INCENTIVE. A grant of any inducement having monetary value by the City that is offered to an applicant to pursue a development or project that encourages private investment and/or the creation or retention of jobs. The incentive may also include grants from other entities that the City may be able to obtain.

INCENTIVE PARTICIPATION AGREEMENT. A binding agreement between an applicant/incentive recipient and the City outlining the terms and conditions of an Incentive award.

INCENTIVE RECIPIENT. The private parties receiving incentives from the City.

JOB. Each new full-time position or full-time equivalent position that is created as a direct result of the ongoing operation of a development, project, business attraction or expansion. For the purposes of calculating the number of jobs created by a Project, only those employed at businesses directly associated with the Project shall be considered.

LOCAL FINANCIAL SUPPORT. Funding from local sources, public or private, that is paid to the State of Florida's Economic Development Trust Fund and that is equal to 20 percent of the annual tax refund for a qualified target industry business or funding from local sources, as may be required under a state program pursuant to F.S. § 288.106.

NEW BUSINESS. A business which has newly located to or is newly locating its commercial or industrial enterprise within the city. For purposes of this article, a business shall be considered a new business for a period of not more than 12 months from the date of its location in the city. Once the time period has expired, the business shall hereafter be considered an "existing business" for purposes of this article.

PROJECT. The creation of a new business, expansion of an existing business, or real property development or redevelopment.

RELOCATION. The relocation of a business' operations and presence to the city from outside its geographic boundaries.

QUALIFIED TARGET INDUSTRY BUSINESS. A target industry business approved by the State of Florida to be eligible for tax refunds under the Qualified Target Industry Tax Rebate Program pursuant to F.S. § 288.106.

WAGES. All compensation including salaries, bonuses, commissions and the value of exercised stock options subject to Federal Income Tax, but excluding fringe benefits; provided, stock options shall be included in the calculation of wages in a manner consistent with the program established pursuant to F.S. § 288.106.

(Ord. 99-21, § 1, 12-15-2021; Ord. 64-25, § 2, 12-3-2025)

The Economic and Business Development Incentive Fund ("Fund") is hereby established, into which revenues from funding sources, as determined by the City Council, shall be deposited and from which expenditures related to the city's economic and business development incentive program shall be paid. Moneys to be credited to the Fund may consist of local business tax proceeds, local financial support funds, interest earnings, and cash from other funds. Amounts on deposit in the Fund shall be invested pursuant to applicable law. All investment earnings shall be retained in the Fund and used for the purposes thereof. All program income, including investment earnings, shall be retained in the Fund, and used for economic and business development purposes.

The objectives of the city in offering the incentives, which includes, but may not be limited to:

a.

Stimulating new investment.

b.

Attracting new office, commercial, light industrial/warehouse spaces.

c.

Expanding and diversifying the overall tax base.

d.

Increasing commercial activity.

e.

Attracting new visitors.

f.

Enhancing property values.

g.

Increasing employment opportunities for city residents.

h.

Generating higher income and wealth for residents from higher wage jobs.

i.

Removing barriers to development.

j.

Supporting the expansion of existing businesses.

k.

Encouraging the creation of new businesses to serve the needs of the community.

l.

Fostering redevelopment of vacant and underutilized buildings.

m.

Activating waterfront

n.

Reducing travel times and encourage development closer to where people live

o.

Activating the waterfront.

p.

Reducing travel times and encourage development closer to where people live.

q.

Foster a thriving cultural scene and promote arts and creative industries across the community.

r.

Strengthen urban connectivity by prioritizing infill and waterfront development projects.

s.

Advance sustainability and resilience that support climate adaptation, green infrastructure, storm-resilient construction, and conservation.

t.

Invest in strategic infrastructure, including digital enhancements and renewable energy.

u.

Pursue signature developments and placemaking projects that shape the city's identity and appeal.

v.

Enhance family, youth, and cultural amenities, and promote Cape Coral as a destination for experiential and sports tourism.

w.

Collaborate across sectors (public, private, educational) for workforce development and to meet emerging economic needs.

x.

Accelerate utility build-out or funding for infrastructure that could address future constraints.

y.

Encourage mixed-use, transit-oriented, or mobility-supportive development forms.

z.

Promote housing diversity and affordability tied to existing

The Fund shall be used for the expansion of businesses existing in the city, the attraction of new business, or new development to the city to offset expenses incurred or other financial burdens related to locating or expanding within the city, or expenses associated with new development or redevelopment projects. The funds collected for deposit in the Fund may be used for the following activities:

•

Business development activities (attraction, retention and expansion)

•

Infrastructure (including payment of impact fees) to support business attraction, retention and expansion

•

Commercial development, redevelopment, or revitalization including office, light industry/warehouse and mixed-use development

•

Job creation opportunities

•

Promotion and marketing services, functions, and programs.

•

Program administration, implementation, and monitoring.

The City Council may, from time to time by ordinance, authorize additional programs which may be funded through the Fund.

Expenditures for activities that are not related to the City's economic and business development program shall not be paid from the Fund.

The Fund shall be self-perpetuating from year to year unless specifically terminated by the City Council. Any balance in the Fund at the end of any fiscal year shall remain in the Fund at the end of the year and shall be available for carrying out the purposes of the Fund.

Accounting and reporting procedures shall be consistent with state law and city policies and reported to the City Council by the city manager, or designee, at least annually. The City shall cause the Fund to be audited and shall report the results of such audit as required to the City Council.

The city manager is authorized to approve incentive awards up to $100,000 to any one entity to enhance economic and business development opportunities. Incentive awards of $100,000 or more shall be approved by the City Council.

An annual performance review shall be undertaken by the city auditor to measure the program's effectiveness in supporting business development within the city and meeting its intended goals.

(Ord. 99-21, § 1, 12-15-2021; Ord. 64-25, § 2, 12-3-2025)

The following guidelines provide general direction on the use of economic and business development incentive funds. The city recognizes that each project is unique and should be considered on a case-by-case basis. The city may choose to deviate from these guidelines if appropriate for a project of special economic or community interest.

(a)

Application. The city may consider investing in eligible projects upon submittal of an application by a qualified applicant based upon the individual program eligibility requirements. Submission of an application for assistance that complies with the spirit and intent of these policies does not commit the city to approve the project associated with said application. The application shall contain, but not be limited to, the following:

(1)

Applicant information including the name and addresses of the applicant/developer, all owners, equity holders, or major participants in the proposed project and if applicable the corporation, partnership (of any kind), or other.

(2)

A description of the project, including, but not limited to, the following:

A.

A description of the proposed project.

B.

The legal description and address for the physical site of the proposed project.

C.

If applicable, the number of permanent full-time jobs to be created, the per annum salary with itemized employer/employee paid fringes, and a listing by job title and associated job description for all current and proposed employees, if the Applicant is seeking a Job Growth Incentive award.

D.

A detailed description of all identified sources of funds to be utilized in the project and the proposed use of such funds, with all letters and/or proof of financial commitments.

E.

A detailed description of the request, including type of assistance being requested and proposed use of assistance being requested.

F.

Current value of property and real and tangible property generated.

G.

Good faith estimates of the value of the project upon completion of the planned improvements and property taxes to be generated.

(3)

A schedule for the Proposed Project.

(4)

Identification of development team and background of development team in carrying out similar projects.

(5)

Consistency with the city's Comprehensive Plan, Economic Development Strategic Plan, Community Redevelopment Plan (if located within the Community Redevelopment Area), and the goals set forth in this program.

(6)

Public Benefits. The applicant must demonstrate that the Project will provide significant benefit(s) to the public including, but not limited to, economic growth of the city and that the project will produce a higher standard of living for the residents of city, create or retain jobs, promote the efficient use of land through the elimination of blight and redevelopment of underutilized properties, enhance public spaces and infrastructure, and create mixed-use commercial and housing opportunities.

(b)

Review and Approval Criteria. For an applicant to be eligible to receive incentives, the City, or the CRA if within the community redevelopment area and utilizing tax increment funds (TIF), must determine that the proposed project meets, or upon completion will meet the following criteria:

(1)

Consistency with the City's Comprehensive Plan, Economic Development Strategic Plan, Community Redevelopment Plan, if within the Community Redevelopment Area and the Community Redevelopment Board of Commissioners approved the Incentive Program, and the goals set forth in this program.

(2)

The Project must include, but not be limited to, at least one of the following:

A.

Real property acquisition costs of a significant type or nature;

B.

New construction of office, commercial, light industry, warehouse and mixed-use developments containing uses that create jobs and reduce suburban sprawl,

C.

Significant costs of physical improvements to real property;

D.

Significant costs of capital improvements to city infrastructure;

E.

On a case-by-case basis, any other eligibility criteria that must be met upon completion of a Project to ensure that the Project provides benefits to the city in amounts that warrant the provision of incentives; or

F.

Job creation in office, life sciences: healthcare, biotechnology, pharmaceuticals, and medical devices; information technology, telecommunications, communications and cybersecurity; financial and professional services: banking, insurance, securities and investments, corporate/regional headquarters, engineering, legal, accounting and consulting; light industries and manufacturing; logistics and distribution, or industries identified in Volumes 1—3 as priorities within the City's adopted Economic Development Strategic Plan, with the exception that retail and wholesale trade shall be an ineligible industry.

(3)

Financial Responsibility. The city will consider the applicant's financial capability to successfully complete the proposed project and sustain its operations. Such review shall be conducted by the city at its sole discretion which may include but is not limited to, a review of tax returns, financial statements, and projections, or consideration of private lender participation. The city's review is not intended to serve as a comprehensive financial underwriting but rather as a measure to ensure that public resources are directed towards projects within a reasonable likelihood of success and community benefit.

(4)

Positive Return on Public Investment. The city shall conduct an analysis of projected city tax revenues and incentive payments. The city will evaluate the anticipated return on public investment to ensure the proposed project provides measurable benefits to the community. This determination will assess factors such as job creation and retention, increased tax revenue, and indirect economic benefits, which may include, but is not limited to, business attraction, supply chain impacts, and community revitalization, and such benefits shall be in alignment with the city's strategic Goals and economic development priorities as established and set forth within the Economic Development Strategic Plan. The analysis may include consideration of the following, but is not required to address all items:

A.

Project term.

B.

Projected amount of direct ad valorem, public service tax, and tangible property taxes associated with the Project paid by the project per year.

C.

Projected capital investment.

D.

Projected number and average annual wage of jobs created, if applicable.

E.

Projected incentive payments from city.

F.

Projected incentive amounts from all other sources.

G.

Projected square footage of project.

H.

Projected costs of city service delivery associated with the project.

I.

Net return for the city.

J.

Net present value of net return.

(5)

Economic Impact Forecast Analysis. The city, at its discretion may request an economic impact analysis such as REMI or IMPLAN to establish direct, indirect, and induced impacts generated by the project.

(c)

Funding Method.

(1)

Approved applicants shall receive a direct grant payment for the eligible activities and expenses identified in each incentive program. The city shall determine the type and amount of economic and business development program assistance granted. The city shall designate the specific use of funds, and terms, if any, for payback of city incentives.

(2)

The city may provide to an incentive recipient any combination of incentives provided for herein; provided, however, that the value of the benefits accruing to the city and its citizens must be greater than the financial value of the incentives to an incentive recipient.

(3)

In most cases, funds will be released on a performance basis, after construction is completed and all appropriate permits and approvals obtained.

(d)

Determination of Incentive Amounts. The amount of incentives granted to a project shall be based upon the amount of the capital investment in the project, the amount of new revenue for the city directly created by the project and the number of new jobs that will be directly created by the project. The amount of incentives granted to a project shall in no case exceed the value of the direct and indirect benefits of the project to the city. These amounts shall be expressly included within any incentive participation agreement.

(e)

Incentive Participation Agreement. If an applicant meets the requirements for incentive assistance, and subject to funding availability, then the city shall enter into an agreement with the applicant. If an applicant meets the requirements and is deemed eligible to receive incentive assistance, and subject to funding availability, the city shall enter into an Incentive Participation Agreement with the applicant for any project that will receive $100,000 or more of incentive assistance. Projects that receive incentive assistance less than $100,000 do not require an Incentive Participation Agreement, unless they are subject to a performance period, in which case an Incentive Participation Agreement will be required. The agreement shall be binding on the qualified applicant, and all subsequent owners, purchasers, successors in interest, and assigns of the project. Except for certain Grants and Programs, the agreement shall provide for a voluntary lien, executed by the Incentive Recipient and owner of the real property, on the real property in the amount of the incentive. Upon the Incentive Recipient completing all terms of the agreement, the city, or CRA, shall satisfy or release said lien. The agreement, any other associated documentation, shall be in a form approved by the city attorney and the agreement shall be recorded in the official records of Lee County.

(f)

Obligations and Benefits to Run with Property. The obligations relative to any city incentive program resources, and the benefits derived therefrom, shall run with the real property as identified in the incentive participation agreement.

(g)

Delinquent Payments. In the event, any payments due to the city by the incentive recipient become delinquent as set forth in the incentive participation agreement, the city shall serve, by certified mail return receipt requested, a notice of delinquency upon the beneficiary of the city's incentive assistance, at the address appearing on the most recent record maintained by the property appraiser of Lee County. The notice of delinquency shall serve to notify the beneficiary of the city's incentive assistance that failure to pay the required payment may cause the city to foreclose on the city's lien in circuit court of Lee County.

(h)

Enforcement of Liens.

(1)

Upon mailing the notice of delinquency, the city shall proceed to collect or otherwise enforce the lien pursuant to the provisions of this program.

(2)

The city clerk shall, if appropriate, file a notice of satisfaction of claim of lien with the clerk of the circuit court for recording in the official records upon satisfaction of the terms of the agreement or receipt of full payment of all delinquent monthly payments, interest due, and any recording expenses. The notice of satisfaction of claim of the lien shall reflect the appropriate information shown on the previously recorded lien.

(3)

All liens imposed pursuant to this article shall be superior on a parity with the lien of any city taxes until paid as provided in this section.

(i)

Change in Ownership or Incentive Recipients.

(1)

Upon sale, resale or change in applicant control, as delineated on the original application forms, at any time before the full amount of the money due the city has been paid, the full amount of money due the city shall be become due and payable. The burden of notification of any change shall apply to both the original and subsequent owners/participants. The new owner/participant may apply for participation in the incentive program and if all criteria as set forth in this article and the incentive participation agreement are met, the benefit of the incentive program may pass through entirely and on the same terms to the new owners.

(2)

The incentive recipient shall inform the city in writing within ten days as to any changes in ownership of the project. Moreover, the transferee incentive recipient shall continue to comply with all incentive award requirements and shall assume in writing all the obligations of the transferor incentive recipient provided for in the incentive participation agreement. Failure of the incentive recipient granted an incentive award to notify the city of any such changes in ownership is cause for termination for cause of the incentive participation agreement.

(j)

Precedence. No precedent is implied or inferred by the granting of an incentive award. Each application shall be considered by the city on a case-by-case basis after considering the criteria as set forth in these guidelines and acting in its sole and absolute discretion.

(k)

Disqualification for Incentives.

(1)

No business and no successor or affiliated business entity having one or more of the same principals and substantially the same business activity may cease business operations in the name of one business and then resume business operations in another name if the effect of such resumption is to circumvent the provisions of this program or to prolong an incentive which has been granted.

(2)

An applicant which is the subject of a code enforcement proceeding or which has an unpaid fine relating to a code enforcement proceeding of the city shall not be eligible for an incentive award.

(3)

An applicant which has unpaid/delinquent assessments, utility bills, business taxes, or property taxes shall not be eligible for an incentive award.

(4)

Applications in the city's online portal shall remain active only for a period established by policy and will be deemed voided upon expiration.

(5)

In order for an applicant to be eligible and receive incentive funds, applications must be submitted and deemed acceptable by the Office of Economic & Business Development, prior to issuance of a Certificate of Occupancy or Certificate of Completion.

(6)

Incentive awards will be revoked if the applicant's permit expires for the project receiving the incentive assistance.

(7)

Home-based businesses are not eligible for incentive programs.

(8)

The following industries shall be ineligible to receive incentive assistance:

(i)

Gas stations

(ii)

Car washes

(iii)

Storage facilities

(l)

Review. Applications will be reviewed for completeness by staff, who will also provide a preliminary assessment of the project's eligibility for assistance. Staff shall have the authority to negotiate the types and level of development incentives needed in accordance with the provision of this policy. Staff will then forward the application and its preliminary recommendation to the city manager for review and consideration, or to the City Council or CRA board of commissioners, whichever is applicable. The decision to not grant an incentive award shall be final and not subject to appeal or review by any other body.

(m)

Continuing Performance. The ability to receive an incentive award for the period granted shall be conditioned upon the Applicant's ability to maintain the project giving rise to the incentive award throughout the entire period. The Incentive Recipient shall be required to submit an annual renewal statement and an annual report to the city manager, or designee, on or before March 1 of each year for which the incentive award was granted. The annual renewal statement shall certify that the information provided in the original application has not changed. The annual report shall provide a report on the status of the business, evidencing satisfaction of the business maintenance and continued performance conditions set forth in the application. The report shall be prepared in substantially the form approved by the city manager, or designee, and shall contain such information as the city manager, or designee, may reasonably deem necessary for the purpose of determining continuing performance by the business of the conditions provided for in this division, the ordinance specifically granting the business an rebate and the representations made in the application.

(n)

City Council or CRA Revocation. Should the project granted an incentive award pursuant to this program fail to file the annual renewal statement and/or annual report on or before March 1 of each year the incentive award has been granted as required, fail to continue to meet the definition of a new business or an expansion of an existing business, fail to timely inform the City Council, or the CRA Board of Commissioners, whichever is the appropriate agency, of a change of ownership, fail to file a new application upon any change in the information provided in the original application, fail to fulfill any other representation made to the City Council or the CRA Board of Commissioners during the application process, and/or fail to comply with any other requirement provided for in this program, the City Council or the CRA Board of Commissioners, whichever is the appropriate agency may, upon 30 days' written notice to the respective business, revoke the incentive award or take such other action as it deems appropriate.

(o)

Program Amendments. The city, and the CRA for any Incentives authorized by the CRA Board of Commissioners, reserves the right to amend, modify, or withdraw these policies; revise any requirement of these guidelines; require additional statements, sworn affidavits as to the but for provisions of these guidelines or other information from any applicant/developer, to negotiate or hold discussions with any applicant/developer and or project which does not completely conform to the policies as set forth above, to waive any nonconformity with these policies, to eliminate these policies in whole or in part, if the city or the CRA deems it is in its best interest to do so, and to waive any timetables established by ordinance, resolution or motion.

(Ord. 99-21, § 1, 12-15-2021; Ord. 64-25, § 2, 12-3-2025)

(a)

The Local Job Creation Incentive Program is a city-only incentive program paid solely by the City of Cape Coral. Through this program, the City may provide direct cash payments of up to $3,000 per new job created to businesses starting, relocating, or expanding in the city.

(1)

Applicants must meet the required job creation threshold of a minimum of five full-time jobs within three years of the incentive award; however, the incentives shall be payable after the employee(s) have been on the job for a period of twelve months.

(2)

Incentives shall not exceed more than $3,000 for each full-time, permanent job created, up to a maximum total award of $150,000.

(3)

Incentives authorized under this program may be combined with other local match funds.

(4)

Jobs created shall be in one of the following targeted industries:

A.

Life sciences: healthcare, biotechnology, pharmaceuticals, and medical devices.

B.

Information technology, telecommunications, communications and cybersecurity.

C.

Financial and professional services: banking, insurance, securities and investments, corporate/regional headquarters, engineering, legal, accounting, and consulting.

D.

Light industries and manufacturing.

E.

Logistics and distribution.

(5)

Wages for new jobs shall be 100 percent of the Lee County average annual wage.

(6)

Project shall retain new hire positions for a minimum of a twelve-month period.

(7)

The Applicant shall agree to submit to an audit of hiring (State of Florida UCT-6 form) and other records determined by the City to be necessary, in carrying out the provisions of this program.

(b)

Payment of economic incentive claims.

(1)

An Applicant receiving an economic incentive award shall submit its requests for payments in the form and detail prescribed by the City. The incentives payment process includes the following steps:

A.

Review of applicant's hiring and payroll records (State of Florida UCT-6 form).

B.

Review of applicant's ad valorem and personal property tax returns filed with Lee County

(2)

Upon the City's verification of the Applicant's achievement of the goals of the Incentive Participation Agreement, the City shall submit payment to the Applicant.

(Ord. 99-21, § 2, 12-15-2021)

(a)

The QTI Refund Incentive Program is a tax refund program retaining and expanding existing businesses in the state, encouraging the creation of new businesses in the state, attracting new businesses from outside the state, and providing conditions favorable for the growth of target industries that create high-quality, high-wage employment opportunities for residents of the state. Eligible businesses may receive refunds of taxes paid to the State of Florida on corporate income, sales and insurance premiums, as well as certain other taxes paid to the State of Florida. The State of Florida provides 80 percent of the total incentive paid to the business. The remaining 20 percent must be matched locally. The 20 percent local match may comprise a contribution from Lee County and the City or the City itself.

(b)

The applicant shall meet the criteria set forth in F.S. § 288.106.

(c)

To qualify for consideration under the program, an applicant shall:

(1)

Apply to Enterprise Florida prior to deciding to locate or expand in Florida;

(2)

Be in a target industry business as defined in F.S. § 288.106(2)(q), as may be amended;

(3)

Demonstrate that the tax refund will make a material difference in the company's decision to locate or expand in the community;

(4)

Create at least 10 net new full-time equivalent jobs and, if an expansion project, increase employment by at least 10 percent (whichever is greater);

(5)

Pay an average annual wage that is at least 115 percent of the state, metropolitan statistical area (MSA), or the local average wages. For a project located in a designated brownfield area, or a manufacturing project paying at least 100 percent of the prevailing average wage, the wage requirement may be waived in special circumstances;

(6)

Show that the jobs make a significant economic contribution to the area economy;

(7)

Meet the minimum number of jobs to be hired as required by the State of Florida within each twelve-month period; and

(8)

Retain new hire positions for a minimum of a twelve-month period.

(d)

The City may pay 100 percent of any state job creation proportional match requirement for jobs created in the city. The City may participate with Lee County in sharing any local match requirement; however, the City shall not be obligated to participate in any local match for jobs with Lee County or any other governmental agency.

(e)

Pre-approved applicants who create jobs receive tax refunds of $3,000 per net new full-time equivalent Florida job created. Additional awards are available for projects meeting the specific criteria below. Note these are maximum amounts per job. Actual awards could be lower.

(f)

Application Process. Enterprise Florida will assist businesses through the application process. Enterprise Florida will submit the application and provide a recommendation to the Florida Department of Economic Opportunity (DEO), which makes the final decision on the project. If the application is approved, the certification will indicate the amount and schedule of tax refunds approved, as well as the number of jobs and average wage rate for the project jobs.

(g)

Award. The approved business must submit a claim each year for the scheduled tax refund and the City shall pay its local match into the State's Economic Development Trust Fund. If all the terms of the tax refund agreement are met, then DEO pays the refund, including the local match, directly to the business.

(h)

Disqualification. Prior to the approval process the following actions could result in the disqualification of the applicant:

(1)

Any public announcement of the project;

(2)

Binding lease agreement or executed purchase agreement;

(3)

Executed purchase agreement entered by the applicant prior to approval of incentives shall be considered as decision to proceed with the project regardless of whether incentives are awarded.

(Ord. 99-21, § 2, 12-15-2021)

(a)

The creative economy contributes to the economic vitality of a community. According to Citizens for Florida Arts, Inc., a vibrant arts community not only keeps residents and their discretionary spending close to home, it also attracts visitors who spend money and help local businesses thrive. The CreativeCape Arts Incentive Program seeks to foster cultural development in the city, but more specifically, within the City of Cape Coral Community Redevelopment Area. The City, and CRA should the CRA adopt this Program, may provide incentives to individuals, nonprofit cultural organizations and other entities to support arts and culture businesses operating in or relocating to the city.

(b)

Applicants must be either:

(1)

A for-profit business or non-profit organization primarily engaged in music, dance, drama, theater programs, films, festivals, creative writing, literature, painting, sculpture, folk arts, photography, crafts, public media, and the execution and exhibition of other cultural art forms; or

(2)

A developer seeking to build or renovate buildings specifically designed to house businesses in the creative industries listed in paragraph (a) above.

(c)

Adult entertainment facilities and/or businesses, gaming rooms, body piercing establishments and tattoo parlors are ineligible.

(d)

Eligible expenditures to be paid from the CreativeCape Arts Incentive Program include the following:

(1)

Acquisition, development, construction, renovation, expansion, or improvements of real property within the Community Redevelopment Area, including live/workspaces.

(2)

Assistance and support to individual artists and organizations with expenses associated with one or more specific cultural art programs, activities, events, or performances on a specified date(s) or time frame(s).

(e)

The following are ineligible expenditures from the CreativeCape Arts Incentive Program:

(1)

Inventory;

(2)

Office equipment and furniture;

(3)

Payment of delinquent taxes or debts;

(4)

Payments to owners;

(5)

Purchase a part of a business;

(6)

Refinancing of existing debt.

(f)

Funding Limits: The minimum incentive amount shall be $5,000. The maximum incentive amount shall be $250,000, but in no event shall the incentive amount exceed 25% of the total project cost.

(g)

The City Manager, or their designee, may require a lien in the amount of the incentive, executed by the Incentive Recipient and owner of the applicable real property, which shall be recorded on the real property.

(h)

Recipients of awards shall remain operating in the city for a minimum of five years from the date of receipt of said funds. If the business leaves prior to the five-year requirement, the incentive funds shall be repaid, on a pro-rated basis, to the city. The amount due will be reduced by 20 percent of the total incentive amount for each full year the company was operating in the city.

(Ord. 99-21, § 2, 12-15-2021; Ord. 64-25, § 3, 12-3-2025)

(a)

Program Overview. This program will encourage new small business start-ups, expansion of existing businesses and relocation of out-of-market businesses to the city by providing eligible small businesses with grant assistance.

(b)

Eligibility Criteria. To be eligible for the CapeCollaborates Program, an Applicant's business shall contain the following criteria:

(1)

Be a for-profit, privately held business;

(2)

Be located in, or relocating to, the City of Cape Coral;

(3)

Employ less than ten full time employees;

(4)

Generate average annual gross revenues of $1,000,000 or less per year for the last two years; and

(c)

The following industries shall be ineligible to receive incentive assistance:

(1)

Industries that have retail as their main principal component of business.

(2)

Gas Stations.

(3)

Car Washes.

(4)

Storage Facilities.

(d)

Eligible Expenditures. Eligible expenditures to be paid from the CapeCollaborates Program include the following:

(1)

Capital improvements associated with new construction, renovation, or tenant improvements.

(2)

Payment of impact, permitting, and special assessment fees assessed by the city or other public entity.

(3)

Land improvement and development costs that include:

i.

On-site infrastructure design and construction.

ii.

Right-of-way improvements required by new construction or on-site improvement.

iii.

Landscaping and road beautification costs.

iv.

Water and sewer connection costs.

v.

Telecommunication connection fees and costs.

vi.

Drainage facilities in conjunction with new construction or on-site improvements.

vii.

Construction of new curbs.

viii.

Curb cuts, medians, shoulders, and sidewalks.

ix.

Relocating utilities to accommodate new construction or on-site improvements.

x.

Flood proofing.

xi.

Fire walls or suppression systems.

xii.

Other types of site, building, or fire development expenses that may be approved by the city.

xiii.

Payment of impact, Contribution of Aid in Construction (CIAC), and special assessment fees assessed by the city.

(e)

Ineligible Expenditures. The following shall be ineligible expenditures from the CapeCollaborates Program:

(1)

Inventory.

(2)

Payment of delinquent taxes or debts.

(3)

Payments to owners.

(4)

Purchase a part of a business and any other non-capital related expenditures.

(5)

Refinancing of existing debt.

(6)

Working capital.

(7)

Business advertising.

(8)

Furniture & fixtures.

(9)

Capital machinery and manufacturing equipment, furniture and fixtures.

(f)

Funding Limits. The minimum funding for the CapeCollaborates Incentive Program shall be $5,000, and the maximum shall be $50,000. Projects must meet the following additional guidelines:

(1)

Projects with a capital investment exceeding $25,000;

(2)

Twenty percent of capital costs not to exceed $50,000.

(3)

Program is reimbursement-based. Disbursement shall be distributed after the incentive recipient secures all permits and approval, including a certificate of occupancy or certificate of completion.

(Ord. 99-21, § 2, 12-15-2021; Ord. 64-25, § 3, 12-3-2025)

(a)

Program Overview. The Business Infrastructure Grant Program encourages new non-residential construction, building/facility expansions or renovations for office, life sciences: healthcare, biotechnology, pharmaceuticals, and medical devices; information technology, telecommunications, communications and cybersecurity; financial and professional services: banking, insurance, securities and investments, corporate or regional headquarters, engineering, legal, accounting and consulting; light industries and manufacturing; logistics and distribution, marine-related industries, and wholesale distribution, or industries identified as priorities within Volumes 1—3 of the city's Economic Development Strategic Plan, with the exception that retail and wholesale trade shall be an ineligible industry. The eligible industries listed herein may include a retail component as long as retail is not the principal component of such business. The program provides incentives to developers to assist with site development costs.

Notwithstanding the foregoing, the city may accept and approve applications from developers who are engaged in the construction or substantial renovation of structures that are set forth within the Economic Strategic Development Plan, or those industries set forth in Section 29-9(a) herein.

(b)

Eligibility Criteria. Applicants shall meet the following criteria:

(1)

Owners/developers of new non-residential construction, building or facility expansions or renovations for office, life sciences: healthcare, biotechnology, pharmaceuticals, and medical devices; information technology, telecommunications, communications and cybersecurity; financial and professional services: banking, insurance, securities and investments, corporate or regional headquarters, engineering, legal, accounting and consulting; light industries and manufacturing; logistics and distribution, marine-related industries, and wholesale distribution or industries identified as priorities within Volumes 1—3 of the City Economic Development Strategic Plan; and

(2)

A minimum capital investment of $500,000 (excluding land).

(c)

Standalone residential development projects are ineligible.

(d)

Eligible Expenditures. Eligible expenditures to be paid from the Business Infrastructure Grant Program include the following:

(1)

Land improvement and development costs, including infrastructure design and construction, road improvements required by new construction or on-site improvement, landscaping and road beautification costs, water and sewer connection fees, telecommunication connection fees and costs, drainage facilities in conjunction with new construction or on-site improvements, construction of new curbs, curb cuts, medians, shoulders, and sidewalks, relocating utilities to accommodate new construction or on-site improvements, and other types of site development expenses that may be approved by the city.

(2)

Payment of impact, permitting, licensing, and special assessment fees assessed by the city.

(e)

Ineligible Expenditures. The following are ineligible expenditures from the Business Infrastructure Grant Program:

(1)

Inventory.

(2)

Payment of delinquent taxes or debts.

(3)

Payments to owners.

(4)

Purchase a part of a business and any other non-capital related expenditures.

(5)

Refinancing of existing debt.

(6)

Working capital.

(7)

Real property acquisition.

(8)

Inventory.

(9)

Office equipment and furniture.

(10)

Payment of delinquent taxes or debts.

(f)

Funding Limits.

(1)

Ten percent of construction costs not to exceed $250,000.

(2)

Incentive funds will be performance-based and distributed after the incentive recipient secures all permits and approvals including a certificate of occupancy.

(Ord. 99-21, § 2, 12-15-2021; Ord. 64-25, § 3, 12-3-2025)

(a)

Program Overview. The Enhanced Property Value Recapture Grant is designed to attract larger-scale private capital investment and/or redevelopment into a mixed-use or nonresidential project site to create a destination, town center or mixed-use development within the city; redevelop properties within the Community Redevelopment Area; expand the tax base, create employment opportunities, or attract targeted industry businesses as defined in F.S. § 288.106(2)(q), as may be amended. Utilizing a "base year" assessed property value (from the Property Appraiser's database) for the project, a percentage of the 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 grant to incentivize the project.

(b)

Eligibility Criteria.

(1)

New construction of non-residential or a mixture of uses containing a combination of residential dwellings with commercial retail, service, or office uses or any combination thereof that generate additional municipal ad valorem tax revenue.

(2)

Mixed use projects located outside of the Community Redevelopment Area are eligible provided that the non-residential component, excluding fast food restaurants, gas stations, and public/outdoor storage, consists of a minimum of 20% of the project.

(3)

Light industrial, industrial, warehousing and logistics developments and industries prioritized in Volumes 1—3 of the Cape Coral Economic Development Strategic Plan.

(4)

The above-mentioned eligible industries may provide a retail component of its business, so long as its retail operations is not the principal component of its business/operations.

(5)

Proposed project must provide proof of a commitment by a financial institution or equity partner(s) financing the construction, equipping, furnishing and completion of the Project.

(6)

The applicant/developer must invest a minimum of $10,000,000 in construction or renovation (excluding land).

(7)

The applicant/developer may be required to provide guarantees to the city to cover any shortfall in costs not paid by future tax increments. These may include construction guarantees, letters of credit, personal or corporate guarantees and/or minimum payment agreements.

(c)

Eligible Expenditures. Eligible expenditures to be paid from the Enhanced Property Recapture Grant include the following:

(1)

Public improvements associated with the project. Public improvements can be located on a project site, directly adjacent to the project site, or within the general vicinity of the project site if those improvements are necessary for or associated with the project.

(2)

Site preparation, demolition, grading, stormwater drainage, surcharging, and other pre-development work prior to construction of the project such as architectural and engineering services and studies.

(3)

Utility extensions and hookups.

(4)

Renovation of existing properties where the cost of rehabilitation or renovation exceeds 50% of the property's current taxable value as indicated by the Lee County Property Appraiser or private appraisal conducted by a MAI-certified appraiser.

(5)

Design and construction of property improvements including improvements to existing water and wastewater systems; provision of public parking spaces; assemblage of properties with a combination of rehabilitation, renovation and new construction projects that when complete provide a cohesive development.

(6)

Payment of impact, permitting, licensing, and special assessment fees assessed by the city.

(d)

Ineligible Expenditures. The incentive award shall not accrue to improvements made by or for the use of an applicant when such improvements have been included on the tax rolls prior to the effective date of an Incentive Participation Agreement granting a project an incentive award.

(e)

Funding Limits.

(1)

The city or CRA shall provide the minimum amount of assistance needed to provide the Project a reasonable rate of return on investment in the project and make the project viable.

(2)

If a new business is locating to, or an expansion of an existing business is occurring in, the city's Community Redevelopment Area, the community redevelopment agency board of commissioners shall serve as the approving award authority in deciding whether an incentive award is to be granted.

(3)

The Project must generate enough tax increment to cover the requested assistance.

(4)

A grant is paid annually to the owner after construction of the project that creates the increment is completed, the property becomes taxable, and property taxes and assessments are paid.

(5)

The incentive award applies only to taxes levied city-wide by the city unless the project is located within the CRA. The incentive award rebate shall not apply to taxes levied by the county (unless within the CRA through a TIF Rebate Agreement), a municipal services taxing or benefit unit (MSTU/MSBU), special assessments levied by the city or other public entity, the Lee County School District, a water management district, or any other special district or to taxes levied for the payment of bonds or taxes authorized by a vote of the electors pursuant to Section 9(b) or 12, Article VII of the Constitution of the State of Florida.

(6)

Not more than 20% of the total project cost, excluding property acquisition, will be supported by incentive revenues. Total project cost is the cost of development of the project including all, site development, and public infrastructure, and building and site amenity costs necessary to complete the project.

(7)

The table below identifies the maximum amount eligible as an incentive award and the associated incentive period based upon the projected taxable value following the project's completion as determined by the Lee County Property Appraiser's office.

(Ord. 99-21, § 2, 12-15-2021; Ord. 64-25, § 3, 12-3-2025)

This Article shall be known as the "Cape Coral Economic Development Ad Valorem Tax Exemption Ordinance."

(Ord. 7-23, § 1, 1-25-2023)

The City of Cape Coral seeks to achieve an economically balanced community that is recognized for an exceptional quality of life for its residents, businesses and visitors by attracting, growing and retaining businesses and commercial development, and by expanding high-wage employment opportunities within the city.

The Florida Legislature has stated that the use of public funds toward the achievement of such economic development goals constitutes a public purpose. For the purposes of the City's Economic and Business Development Incentive Programs, it constitutes a public purpose to expend public funds for economic development activities, including, but not limited to, construction of office, light industry and mixed-use developments; developing or improving local infrastructure, issuing bonds to finance or refinance the cost of capital projects for industrial or manufacturing plants, leasing or conveying real property, and making grants to private enterprises or developers for the expansion of businesses existing in the community, attraction of new businesses to the community, or enticing private investment and development of non-residential and mixed-use projects.

The City Council finds that the health, safety, and welfare of the city will be protected and enhanced by offering an Economic Development Ad Valorem Tax Exemption to qualified businesses/developers looking to invest in and create new jobs in the city.

Article VII, Section 3, of the Constitution of the State of Florida and F.S. § 196.1995, empower the City to grant Economic Development Ad Valorem Tax Exemptions to New Businesses and Expansions of Existing Businesses after the electors of the City, voting on the question in a referendum, authorize such exemptions. In a referendum held on November 8, 2022, the electors of the City of Cape Coral authorized the City Council to grant Economic Development Ad Valorem Tax Exemptions.

(Ord. 7-23, § 1, 1-25-2023)

(a)

It is a recognized function of local government to promote economic development within its jurisdiction by providing financial incentives that will encourage new businesses to relocate within its jurisdiction and existing businesses to expand, thereby creating employment opportunities that will benefit the entire community.

(b)

The current economic climate has impacted the quality of life for the citizens of Cape Coral and the sustainability of local businesses.

(c)

In order to ensure that applications for Economic Development Ad Valorem Tax Exemptions are considered in a non-arbitrary and non-discriminatory manner, it is necessary to establish guidelines that further the City's economic development policy to assist the City Council in making its determinations.

(d)

The City Council determines that the granting of Economic Development Ad Valorem Tax Exemptions to new businesses locating in Cape Coral and to existing businesses expanding in Cape Coral as provided in this Article will promote and strengthen the local economy which will enhance the health, safety and welfare of the citizens of Cape Coral, which action is in the best interest of the City and serves both a City and a public purpose.

(Ord. 7-23, § 1, 1-25-2023)

The following words, phrases and terms shall have the meanings set forth below. Except where indicated otherwise such words, phrases and terms shall have the same meanings attributed to them in the Florida Statutes and the Florida Administrative Code as amended from time to time:

APPLICANT means any person, firm, partnership or corporation who files an Application with the City seeking an Exemption.

APPLICATION means a written application for an Exemption on the form prescribed by the Department, together with any supplemental form prescribed by the City Manager and any additional information requested by the City Manager.

AVERAGE ANNUAL EMPLOYMENT means the sum of the number of Full-Time Equivalent Employees as of the last day of each month of the preceding calendar year divided by 12.

AVERAGE ANNUAL PRIVATE SECTOR WAGE means the lesser of the average annual private sector wage throughout the State of Florida, MSA or the County.

AVERAGE ANNUAL WAGE means the sum of the Wages paid to Full-Time Equivalent Employees included in the Average Annual Employment, divided by the Average Annual Employment.

BROWNFIELD AREA means an area designated as a brownfield area pursuant to F.S. § 376.80.

BUSINESS means any activity engaged in by any person, firm, partnership, corporation, or other business organization or entity, with the object of private or public gain, benefit, or advantage, either direct or indirect.

CAPITAL INVESTMENT means any expenditure for an Expansion of an Existing Business or a New Business to be located in Cape Coral which can be capitalized under generally accepted accounting principles.

CITY means City of Cape Coral, Florida.

CITY COUNCIL means the City Council of the City.

CITY MANAGER means the City Manager of the City, or his/her designee.

COMMUNITY REDEVELOPMENT AGENCY means a public agency created by or designated pursuant to F.S. §§ 163.356 or 163.357.

COMMUNITY REDEVELOPMENT AREA means an area designated as a community redevelopment area pursuant to F.S. Ch. 163, pt. III.

COUNTY means Lee County, Florida.

DEPARTMENT means the Florida Department of Revenue.

ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTION or EXEMPTION means an ad valorem tax exemption granted by the City Council in its sole and absolute discretion to a Qualified Business pursuant to this Article as authorized in Article VII, Section 3 of the Constitution of the State of Florida and F.S. § 196.1995.

ENTERPRISE ZONE means an area designated as an enterprise zone pursuant to F.S. § 290.0065.

EXEMPTION CRITERIA means the criteria to be applied by the City Council in making its determination as to whether to grant an Exemption, as provided for in Subsection 29-17(d) of this Article.

EXPANSION OF AN EXISTING BUSINESS means:

(a)

(1)

A business establishing ten or more jobs to employ ten or more full-time employees in this City, which manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a fixed location and which comprises an industrial or manufacturing plant; or

(2)

A business establishing 25 or more jobs to employ 25 or more full-time employees in this City, the sales factor, as defined in F.S. § 220.15(5), for the facility with respect to which it requests an Exemption is less than 50% for each year the Exemption is claimed; provided that such business increases operations on a site co-located with a commercial or industrial operation owned by the same business, resulting in a net increase in employment of not less than ten percent or an increase in productive output of not less than ten percent.

(b)

Any business located in an Enterprise Zone or Brownfield Area that increases operations on a site co-located with a commercial or industrial operation owned by the same business.

FULL-TIME EQUIVALENT EMPLOYEE means a person who is employed by a Business that works at least 35 hours per week and is eligible to receive benefits, including health benefits, through their employer, subject to any eligible vesting periods.

GOODS means all personal property when purchased primarily for personal, family or household use, but not including personal property sold for commercial or industrial use.

HIGH VALUE BUSINESS means an Expansion of an Existing Business or a New Business that is expected to have a significant economic impact as a result of the number of its Full-Time Equivalent Employees, its Average Annual Wage, the Capital Investment in the Business, or additional jobs subsequently created as a result of such Business.

IMPROVEMENTS means physical changes made to raw land, and structures placed on or under the land surface, including all Tangible Personal Property acquired to facilitate an Expansion of an Existing Business provided that the Tangible Personal Property is added or increased on or after the day an ordinance specifically granting a Business an Exemption is adopted. However, Tangible Personal Property acquired to replace existing property shall not be considered to facilitate a business expansion.

NEW BUSINESS means:

(a)

(1)

A business establishing ten or more jobs to employ ten or more full-time employees in this City, which manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a fixed location and which comprises an industrial or manufacturing plant;

(2)

A business establishing 25 or more jobs to employ 25 or more full-time employees in this City, the sales factor of which, as defined in F.S. § 220.15(5), for the facility with respect to which it requests an Exemption is less than 0.50 for each year the Exemption is claimed; or

(3)

An office space in this City owned and used by a corporation newly domiciled in this City; provided such office space houses 50 or more full-time employees of such corporation; and provided that such business or office first begins operation on a site clearly separate from any other commercial or industrial operation owned by the same business.

(b)

Any business located in an Enterprise Zone or Brownfield Area that first begins operation on a site clearly separate from any other commercial or industrial operation owned by the same business.

QUALIFIED BUSINESS means a High Value Business or a Target Industry Business.

RETAIL OPERATION means a Business regularly engaged in, and whose Business consists to a substantial extent of selling goods to a buyer, not principally for the purpose of resale.

SALES FACTOR means a fraction, the numerator of which is the total sales of the taxpayer in this state during the taxable year or period and the denominator of which is the total sales of the taxpayer everywhere during the taxable year or period. See F.S. § 220.15(5) for additional information.

TANGIBLE PERSONAL PROPERTY shall have the meaning set forth in F.S. § 192.001(11)(d).

TARGET INDUSTRY BUSINESS means an Expansion of an Existing Business or a New Business that is designated by the State of Florida, Office of Tourism, Trade, and Economic Development pursuant to F.S. § 288.106, as a target industry business.

WAGES means all compensation including salaries, bonuses, commissions and the value of exercised stock options subject to federal income tax, excluding fringe benefits; provided stock options shall be included in the calculation of wages in a manner consistent with the program established pursuant to F.S. § 288.106.

(Ord. 7-23, § 1, 1-25-2023)

(a)

Incentive. There is herein established an Economic Development Ad Valorem Tax Exemption for ad valorem taxes levied by the City. The Exemption is a local option tax incentive for a Qualified Business which may be granted or refused at the sole and absolute discretion of the City Council.

(b)

Ineligible Improvements. The Exemption shall not accrue to Improvements made by or for the use of a Qualified Business when such Improvements have been included on the tax rolls prior to the effective date of an ordinance specifically granting a Business an Exemption.

(c)

Eligible Improvements. At the sole and absolute discretion of the City Council, and except as otherwise provided for in this Article, the Exemption may be granted for up to 100% of the assessed value of all Improvements made by or for the use of a qualifying New Business and of all Tangible Personal Property of such New Business, or up to 100% of the assessed value of all added Improvements made to facilitate the qualifying Expansion of an Existing Business and of the net increase in all Tangible Personal Property acquired to facilitate such Expansion of an Existing Business, provided that the Improvements are made or the Tangible Personal Property is added or increased on or after the day the Ordinance specifically grants an Exemption is adopted. Property acquired to replace existing property shall not be considered to facilitate a business expansion.

(d)

Land. No Exemption shall be granted for the land upon which a New Business or an Expansion of an Existing Business is to be located.

(e)

Exemption. Except as otherwise provided for in this Article, the Exemption may be for a period of up to ten years from the date the City Council adopts the ordinance specifically granting an Exemption.

(f)

Taxes Applicable. The Exemption shall apply only to taxes levied by the City. The Exemption shall not apply to taxes levied by Lee County, the school district, or water management district, or to taxes levied for the payment of bonds or taxes authorized by a vote of the electors pursuant to Section 9(b) or 12, Article VII of the Florida Constitution.

(g)

Maximum Amount of Annual Exemptions. Notwithstanding any other provision of this Article, the Exemptions granted by the City Council for each fiscal year shall not result in an estimated aggregate annual amount of forgone ad valorem tax revenues in excess of $2,000,000 or such other amount approved by a supermajority vote of the City Council, which amount shall be calculated based on the Property Appraiser's estimates on the revenue lost to the City during the then particular fiscal year by virtue of Exemptions previously granted plus Exemptions under consideration in such particular fiscal year.

(h)

Retail. No Exemption shall be granted to any retail operation.

(Ord. 7-23, § 1, 1-25-2023)

(a)

Application. Any eligible person, firm, partnership or corporation which desires an Exemption shall file with the City Manager a written Application. The Application must be filed no later than March 1 of the year the Exemption is desired to take effect.

(b)

Review. Upon submittal of the Application, the City Manager shall review same and, within ten days of submission, notify the Applicant of any facial deficiencies. Complete Applications shall be scheduled for a public hearing before the City Council no later than 45 days following receipt by the City Manager of the Property Appraiser's report provided for in this Article. The Applicant shall be notified of the date and time of the public hearing.

(c)

Agreement. As a condition to receiving the Exemption, a Business will be required to enter into an agreement with the City to ensure that the Business satisfies all requirements associated with the granting and continuation of the Exemption.

(Ord. 7-23, § 1, 1-25-2023)

(a)

Property Appraiser Review and Report. Before the City Council takes action on an Application, a copy of the Application, once deemed complete, shall be delivered to the Property Appraiser for review. After careful consideration of the Application, the Property Appraiser shall provide a report to the City Council which shall include the following:

(1)

The total revenue available to the City 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;

(2)

The amount of any revenue lost to the City for the current fiscal year by virtue of Exemptions previously granted, or an estimate of such revenue if the actual revenue lost cannot be determined;

(3)

An estimate of the amount of revenue which would be lost to the City 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

(4)

A determination as to whether the property for which the Exemption is requested is to be incorporated into a New Business or the Expansion of an Existing Business, or into neither, which determination the Property Appraiser shall also affix to the face of the Application. Upon request, the Department will provide the Property Appraiser such information as it may have available to assist in making such determination.

(b)

Eligibility Threshold. The threshold for eligibility is whether the Business meets the definition of a New Business or of an Expansion of an Existing Business as provided in this Article.

(c)

Ineligible Business. Any Business in violation of any federal, state, or local law or regulation, including but not limited to, environmental matters, will not be eligible for an Exemption.

(d)

Exemption Criteria. In making its determination as to whether to grant an Exemption, the City Council shall apply the Exemption Criteria provided below; provided that the City Council, in its sole and absolute discretion, may deviate from the Exemption Criteria when considering Applications from High Value Businesses if the City Council determines that such deviation is in the best interest of the City:

(e)

Ordinance. After consideration of the Application, the Property Appraiser's report, input from a Community Redevelopment Agency, if applicable, and such other information it deems relevant, and the application of the Exemption Criteria, the City Council may choose in its sole and absolute discretion to adopt an ordinance granting an Exemption to the Applicant. If the City Council decides to adopt such an ordinance, the ordinance shall be adopted in the same manner as any other general ordinance of the City, and shall include the following:

(1)

The name and address of the New Business or the Expansion of an Existing Business to which the Exemption is granted,

(2)

The name of the owner(s) of the New Business or the Expansion of an Existing Business,

(3)

The total amount of revenue available to the City from ad valorem tax sources for the current fiscal year, the total amount of revenue lost to the City for the current fiscal year by virtue of Exemptions currently in effect, and the estimated revenue loss to the City for the current fiscal year attributable to the Exemption of the business named in the ordinance,

(4)

The period of time for which the Exemption will remain in effect and the expiration date of the Exemption; and

(5)

A finding that the Business named in the ordinance meets the requirements of F.S. § 196.012(14) or (15).

(f)

Precedent; Standard for Consideration of Applications. No precedent shall be implied or inferred by the granting of an Exemption. Each Application shall be considered by the City Council in its legislative capacity on a case-by-case basis, after considering the Property Appraiser's report on the Application and the Exemption Criteria.

(Ord. 7-23, § 1, 1-25-2023)

No fees shall be charged for processing Applications or any Exemption ordinance adopted by the City Council.

(Ord. 7-23, § 1, 1-25-2023)

(a)

Change in ownership.

(1)

The Business granted an Exemption shall be required to inform the City Manager in writing within ten days as to any changes in ownership of the Business granted an Exemption. Moreover, the transferee Business shall continue to comply with all Exemption requirements and shall assume in writing all of the obligations of the transferor Business provided for in the agreement required pursuant to Subsection 29-16(c) of this Article.

(2)

Failure of the Business granted an Exemption to notify the City Manager of any such changes in ownership is cause for revocation of the ordinance granting the Exemption, at the City Council's discretion.

(b)

Annual Filings. The ability to receive an Exemption for the period granted shall be conditioned upon the Applicant's ability to maintain the Qualified Business throughout the entire period. The Applicant shall be required to submit an annual renewal statement and an annual report to the City Manager on or before March 1 of each year for which the Exemption was granted. The Applicant shall also timely comply with all filing required pursuant to F.S. § 196.011.

(1)

The annual renewal statement shall certify that the information provided in the original Application has not changed.

(2)

The annual report shall provide an account on the status of the business, evidencing satisfaction of the business maintenance and continued performance conditions set forth in the Application. The report shall be prepared in substantially the form approved by the City Manager and shall contain such information as the City Manager may reasonably deem necessary for the purpose of determining continuing performance by the Business of the conditions provided for in this Article, the ordinance specifically granting the Business an Exemption and the representations made in the Application.

(Ord. 7-23, § 1, 1-25-2023)

Should any Business granted an Exemption pursuant to this Article fail to file the annual renewal statement and/or annual report on or before March 1 of each year the Exemption has been granted as required by this Article, fail to continue to meet the definition of a New Business or an Expansion of an Existing Business, fail to timely inform the City Manager of a change of ownership, fail to file a new Application upon any change in the information provided in the original Application, fail to fulfill any other representation made to the City during the Application process, and/or fail to comply with any other requirement provided for in this Article, the City Manager, may, upon 30 days written notice to the respective Business, adopt an ordinance revoking the Exemption or take such other action with respect to the Exemption as it deems appropriate.

(a)

Notification. Upon revocation, the City Manager shall immediately notify the Property Appraiser.

(b)

Recovery of Taxes. If it is determined that a Business was not in fact entitled to an Exemption in any year for which the Business received an exemption, the City, Property Appraiser or Tax Collector shall be entitled to recover all taxes not paid on Tangible Personal Property as a result of the Exemption, plus interest at the maximum rate allowed by law, plus all costs of collection, including, without limitation, reasonable attorney's fees.

(c)

Reapplication. Nothing herein shall prohibit a Business from reapplying for an ad valorem tax exemption pursuant to state law.

(Ord. 7-23, § 1, 1-25-2023)

Pursuant to F.S. § 196.1995, the Ordinance from which this Article derives, shall expire on November 8, 2032, ten years after the date such authority to grant Economic Development Ad Valorem Tax Exemptions was approved by the electors of the City voting on the question in a referendum; provided that for purposes of enforcement and revocation, this Article shall survive such expiration date. No business shall be allowed to begin receiving an Exemption after that date; however, the expiration shall not affect the operation of any Exemption for which a Business has qualified under this Article prior to November 8, 2032.

(Ord. 7-23, § 1, 1-25-2023)