Title
Qualified Target Industry (QTI) Refund Resolution - DayJet Corporation (B)
The Gainesville Alachua County Regional Airport Authority (GACRAA), Gainesville Area Chamber of Commerce, City of Gainesville and Alachua County are partnering on this effort to
attract DayJet Corporation to the City of Gainesville and Gainesville Regional Airport.
Explanation
Recently, DayJet Corporation, an air transportation business utilizing the Eclipse Aviation VLJ (very light jet) as its primary means of serving prospective passengers, announced that it is potentially seeking to locate a regional headquarters facility in Gainesville, FL at the Gainesville Regional Airport.
The Qualified Target Industry (QTI) incentive is a tool available to Florida communities to encourage quality job growth in targeted, high value added businesses. Pre-approved applicants creating jobs in Florida receive refunds on the various taxes they pay including corporate income, sales, ad valorem, insurance premium and certain other taxes.
Eligible QTI applicants must pay an average annual wage that is at least 115 percent of the State Metropolitan Statistical Area (SMSA). In order to participate, the applicant must apply to Enterprise Florida prior to making a decision to locate in Florida. The local community must provide a resolution from the City or County Commission recommending the applicant for the incentive and provide a match equal to 20% of the total tax refund.
The DayJet Corporation is expected to create eighty five new jobs phased in over three years at an average wage of $57,520 or 200% of the Alachua County average. The company would be eligible for $680,000 in eligible state tax refunds ($3,000 base QTI refund; $3,000 per Enterprise Zone bonus; $2,000 per 200% of local wage average bonus) or $8,000 per job.
The Gainesville Alachua County Regional Airport Authority (GACRAA), Gainesville Area Chamber of Commerce, City of Gainesville and Alachua County are partnering on this effort to attract DayJet Corporation to the City of Gainesville and Gainesville Regional Airport. The enactment of the QTI resolution is seen as a community investment in the growth potential of DayJet Corporation over a period of years.
The proposed resolution stipulates that the City of Gainesville will participate through provision of 50% of the 20% local contribution (with Alachua County providing the remaining 50%) of the total refund or $68,000 spread over FY 07, FY 08, FY 09 and FY10 consistent with DayJet Corporation's phased plan to add 85 jobs in the area.
Fiscal Note
Funding would be included in the proposed FY 07 and FY 08 Economic Development Department budget submission to be reviewed by the City Commission in coming months. Out year and actual funding is subject to appropriation in subsequent budget years. It has been indicated to staff that Alachua County has indicated a willingness to consider providing 50% of the 20% required local match. This resolution will only be filed contingent upon approval of such a resolution by Alachua County. In addition, it has been indicated to staff that a prior QTI application participated in by the City of Gainesville for Eclipse Aviation will not be acted upon thus resulting in a savings to the City of Gainesville of $22,400 over three years.
Recommendation
The City Commission: 1) authorize the Mayor to execute the QTI Resolution regarding DayJet Corporation contingent upon approval and execution of a similar resolution by the Alachua County Board of County Commissioners; 2) direct the City Manager to submit the executed QTI Resolution to Enterprise Florida.
Alternative Recommendation : The City Commission deny the QTI Resolution for DayJet Corporation.