Title
A resolution of the City Commission of the City of Gainesville, Florida, designating a brownfields redevelopment area in the City of Gainesville, Florida comprised of the proposed University Corners project, for the purpose of environmental remediation, rehabilitation, and economic development, authorizing the City Manager to notify the Florida Department of Environmental Protection of said designation; and providing an effective date. (B)
Explanation
The Florida Legislature created the Brownfields Redevelopment Act (sections 376.77-376.875 Florida Statutes) to create incentives for developers to rehabilitate contaminated and potentially contaminated sites for their return to economic viability. Section 376.80 Florida Statutes provides the process by which local governments designate Brownfield Areas by resolution. Once the local government adopts the designation resolution, it informs the Florida Department of Environmental Protection (FDEP), which then records the site as a Brownfields Area. The owner of the designated Brownfield Area can then pursue the benefits offered by the Brownfields Redevelopment Program. Statewide, 101 Brownfield Areas had been designated at the end of 2004.
Michael Conroy, President of University Corners LLC, has submitted a written request that the City designate the proposed University Corners site a Brownfield Area. The site is bounded on the south by University Avenue, on the north by Northwest 3rd Avenue, on the west by Northwest 14th Street, and on the east by Northwest 13th Street. A portion of the proposed site, formerly occupied by Supercuts, is impacted by dry-cleaning solvents. According to Mr. Conroy, University Corners has performed a voluntary cleanup under the supervision of FDEP. Contaminated soils have been removed and a Contamination Assessment Report has been filed with FDEP. Additional groundwater remediation at the site will be conducted.
Mr. Conroy is seeking the Brownfield Area designation to qualify his project for the Brownfield Redevelopment Bonus Refund to attract business tenants when the project is completed. Successful applicants receive refunds of state taxes up to $2,500 per new job created in a designated Brownfield Area. Businesses seeking this incentive must locate in a designated Brownfield Area and either be certified as a Qualified Target Industry (QTI) as defined in section 288.106 Florida Statutes or be a business that can demonstrate at least $2 million in fixed capital investment in mixed-use business activities. Eligible businesses must also create at least 10 new full-time jobs, demonstrate that the business will diversify and strengthen the economy, promote capital investment beyond the site, and provide a resolution from the City or County recommending the applicant for the incentive. Under the incentive, the City or County may, at its option, pledge local matching funds equaling 20 percent of the tax refund. If the City or County opts out of the 20% pledge, then the applicant will be eligible for 80% of the tax refund, which is the share to be paid by the State. Businesses with QTI certification generally pay higher wages than the local average wages, employ highly trained workers, and serve multi-state or international markets. The incentive is a tax refund equal to 20 percent of the average annual wage of the new jobs created. Refunds are given on such taxes as corporate income, sales, ad valorem, intangible personal property, insurance premium, and certain other taxes.
Applicants for the credit apply directly to Enterprise Florida. Administration of the QTI and Brownfield Redevelopment Bonus Refund programs is the responsibility of Enterprise Florida and the Office of Tourism, Trade, and Economic Development.
University Corners has provided evidence of meeting the Brownfield Area designation requirements under section 376.80 (2)(b) Florida Statutes through its remediation activities at the site, commitment to increase economic activity in the area, planning redevelopment to be consistent with applicable land development regulations, provision of public notice of its site rehabilitation activities, and assurance of financial ability to rehabilitate the site.
Fiscal Note
The Brownfield Area designation does not commit local government funds to the Brownfield Area. Designation only establishes eligibility to apply for certain incentive benefits under the state Brownfields program. Until funding has been identified in either city or CRA budgets for providing a match for the Brownfield Redevelopment Bonus Refund, the ability of any business located in the University Corners Brownfield Area to seek city funds for this program will be surrendered by agreement. The business may still apply for the state portion of the tax refund amounting to 80% of the total tax refund to which it is entitled.
Recommendation
City Commission adopt the proposed resolution to designate the University Corners site as a state Brownfield Area.