Title
Qualified Target Industry (QTI) Refund Resolution - Mobiquity, Inc. (B)
This item seeks City Commission approval for a QTI contribution for the prospective location of a development center for Mobiquity, Inc. a professional services company providing mobility services to the enterprise market, within the City of Gainesville.
Explanation
Mobiquity, Inc., a professional services company providing mobility services to the enterprise market, is currently considering the creation of up to 260 net new software development jobs within the City limits. If the firm chooses to select Gainesville/Alachua County for this particular project, site location will take place within the City's Enterprise and Innovation Zone.
The QTI incentive is a state tool available to Florida communities to encourage 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, sales, ad-valorem, insurance premium and other taxes. The QTI incentive is performance based and the firm will only receive funds based upon jobs created and meeting other criteria as required by Florida statute.
Eligible QTI applicants must pay an average annual wage that is at least 115% of the State Metropolitan Statistical Area's average annual wage rate. In order to apply, the applicant works with Enterprise Florida prior to making a decision to locate (or expand). The local community normally provides a Resolution to indicate that the commitments of local financial support exist, namely up to 20% of the total tax refund.
In this particular case, Mobiquity, Inc. is indicating that it will create up to 260 net new jobs at an average wage of approximately $49,000 at the proposed location. This firm has pledged a capital investment of approximately $820,000 over two years regarding the new location in addition to the proposed job creation.
Due to the incentive calculated per job ($6,000 for location in Enterprise Zone and $2,000 for jobs located in an Enterprise Florida designated High Impact Business Sector) the total incentive would be $2,080,000. Of this, the City would be asked to provide a 10% match ($208,000) over a period of four years with an equal 10% match ($208,000) coming from Alachua County for a total local match of $416,000.
The Gainesville Area Chamber of Commerce and its economic development arm, the Council for Economic Outreach (CEO) have been working with Mobiquity, Inc.and recommends approval of this request.
Fiscal Note
If this item is approved, the City Commission agrees to budget and appropriate up to $208,000 over four years in the event that tax refunds are approved by the state.
Recommendation:
The City Commission: 1) adopt the Resolution; 2) authorize the Mayor to execute and the Clerk to attest to the QTI Resolution regarding Mobiquity, Inc.; and 3) direct the City Manager to forward the executed QTI Resolution to Enterprise Florida.