Title
A Resolution Of The City Commission Of The City Of Hollywood, Florida, Approving An Amended Job Creation Schedule For Shiji US Inc., Formerly Known As Confidential "Project Palladium", A Qualified Target Industry Business Pursuant To Section 288.106, Florida Statutes.
Strategic Plan Focus
Economic Vitality
Body
Staff Recommends: Approval of the attached Resolution.
Explanation:
This Resolution recommends that Shiji US Inc. be approved for a one-year extension on its job creation schedule due to the COVID-19 pandemic for the Qualified Target Industry business pursuant to applicable provisions of the Florida Statutes and as such, qualifies for local financial support as detailed by Florida Statutes. Shiji US Inc. entails the relocation of the Latin American Headquarters of an established business entity to the City, which will in turn offer certain economic benefits to the City and Broward County, including the hiring of 70 new employees at an average annual wage that is 115% of the average private sector wage in the County. The Florida Statutes in ?288.106 provides for a Qualified Target Industry Tax Refund to business entities qualifying for this Tax Refund under the provisions of the cited statute. By statutory provision, Shiji US Inc. would be eligible to receive local financial support of 20% of the total tax refund of $350,000.00 or $70,000.00 to be paid out by the City over a five-year period.
Fiscal Impact:
The fiscal impact for the City's support of the 20% of the total tax refund of $350,000.00 is $70,000.00 over 5 years. The first payment of $7,500.00 would be due in FY 2023 and will be requested as part of the applicable year's operating budget in account 001.114001.55400.559180.000000.000.000 subject to approval and adoption by the City Commission. The annual impact for years 2 thru 4 is $17,500.00 and for year 5 is $10,000.00.
Recommended for inclusion on the agenda by:
Steve Stewart, Assistant Director Financial Services for P...
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