Title
Qualified Target Industry (QTI) Refund Resolution - Ignition Entertainment, Limited (B)
This item seeks City Commission approval for a Qualified Target Initiative (QTI) contribution for the prospective location of a gaming software development firm within the City of Gainesville.
Explanation
Ignition Entertainment, Ltd., a firm specializing in the development of computer generated gaming software, is considering Gainesville as a location for its principle design/development studio in the United States. The firm was formed in 2002 and has major design and development studios in London and Tokyo as well as sales offices in Chicago and Los Angeles. The firm is a subsidiary of UTV Entertainment, a major media conglomerate in India. The firm appears to be attracted to the area primarily due to its abundance of intellectual capital and potential labor reserves.
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 normally provides a resolution from the City and/or County Commission recommending the applicant for the incentive and provides a match equal to 20% of the total tax refund.
With respect to Ignition Entertainment, Ltd. specifically, the company is expected to create 70 new jobs phased in over three years at an average wage of approximately $45,006 or 150% of the Alachua County average. It is reported that the firm is expecting a gross annual payroll of $2.8 mill...
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