LARGO – If everything goes according to plan, a Tampa Bay business will be relocating to Largo, bringing with it 55 new positions.
Largo City Commissioners approved on July 20 project #0607-10 for participation in the Qualified Target Industry Tax Refund Program.
According to staff notes, the company, currently located in Hillsborough County, is classified as being in the business sector, life sciences. It is recognized as a target industry in the city’s economic development plan adopted by the commission in July 2009.
The business, which has requested confidentiality, filed a QTI Program application with the state, Pinellas County and Largo. The company is expected to invest $7.3 million over the first three years of operations.
The tax refund requested by the company is based on a program award of $4,000 per job for the 55 new jobs, $3,000 as the QTI base allocation and a bonus of $1,000 because the average wage, $57,897, is 150 percent over Pinellas County’s average wage of $38,598.
The total QTI amount for the project is $220,000.
Largo is responsible for providing 10 percent of the amount approved by the state, or a maximum of $22,000. Pinellas County is responsible for the other $22,000 of the required local match.
The business receives no QTI money until it provides documented evidence that the required number of jobs has been created and state tax payments have been made.
In other business, the commission:
• Approved the second reading of an ordinance that amends the building permit fee ordinance to comply with state law. The building permit surcharge changes go into effect on Oct. 1.
• Approved the purchase of a $34,966 forklift for the Environmental Services.
• Approved nine separate annexations.
Looking ahead
Commissioners approved on first reading a number of items scheduled for second reading on Aug. 3, including a three-year lease-purchase agreement for $112,406 with Agricredit Acceptance LLC for 48 golf carts.
The authorization also includes a sales agreement with Jeffrey Allen Inc.
The city rents electric golf carts to patrons of Largo Golf Course. The cost is $11.50 for 18 holes. The average annual revenue from golf cart rentals is $220,000.
Joan Byrne, recreation, parks and arts director, said three bids were received and the lease-purchase option offered by Agricredit Acceptance was most cost effective.
At the end of the lease term, the carts will be sold to Jeffrey Allen, the company that provides maintenance for the Club Car carts, for $57,600.
Commissioner Mary Black asked why the city didn’t buy the carts and keep them for a longer time to recoup costs.
Byrne said it was better to sell the carts at the end of three years due to the expected increases in repair and maintenance for older carts. Also, the life expectancy of the batteries is usually about 31/2 years. Replacement cost of the batteries is $500 a cart. In addition, she said golf patrons like to play courses with more-modern carts.
The city can lease new golf carts for about $37,500 a year. Sufficient funds are in the golf course budget for the remainder of 2010. Funding will be requested for future years.
The only catch involves insurance, Byrne said. Agricredit doesn’t understand government liability rules.
County Attorney Alan Zimmet said the insurance problem could be resolved.
“We just need to get to the right person and get them to understand,” he said.
The commissioners also approved on first reading a request from Les Rubin, president of the ICOT Master Association, to rescind the Development of Regional Impact on the ICOT Center. The DRI development order for 243.71 acres of mixed-use development initially was approved by Pinellas County in 1989. The agreement was amended in 1994 and 2000. A master map, Map H, was adopted as part of the development order amendments.
The city of Largo annexed the ICOT Center property in 2000 and adopted the DRI order shortly thereafter. The property was zoned Industrial Limited. However, Map H was not consistent with the Industrial Limited zoning, and city amended its future land use map to include educational uses for St. Pete College’s EPI Center and residential uses for Aluna Largo Apartments.
According to staff notes, although the DRI expired on Dec. 31, 2004, “in order to proceed with further development, the DRI status of the property must be addressed.” A recently passed amendment allows developer or landowners to opt-out or rescind the DRI if all required mitigation related to the development has been met.
If commissioners vote to rescind the DRI, the vested rights of the Master Plan (Map H) will govern future development of the property. Staff has recommended approval.
