Subject:
Title
Ordinance rescinding the Economic Development Ad Valorem Tax Exemption for Erchonia Corporation.
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Fiscal Impact:
The fiscal impact associated with this action is Erchonia Corporation would no longer be eligible to receive future ad valorem tax exemptions at the property designated in Ordinance 2017-04, for the economic development incentive granted under Ordinance 2015-20.
If approved, the County would seek claw back of the 2023 exemption granted, in the amount of $722.10.
Dept/Office:
County Manager
Requested Action:
Recommendation
It is recommended that the Board of County Commissioners consider adopting an Ordinance rescinding the Economic Development Ad Valorem Tax Exemption for Erchonia Corporation and seeking claw back of the 2023 exemption granted, in the amount of $722.10.
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Summary Explanation and Background:
On July 21, 2015, the Board of County Commissioners granted Erchonia Corporation, an ad valorem tax exemption for a period of 8 years and 80 percent on the company’s facility expansion and tangible personal property added to the County’s assessment roll. In order to remain eligible for the County’s Ad Valorem Tax Exemption Program, Erchonia Corporation, would need to maintain their eligibility as set forth in Ordinances 2015-20 and 2017-04 (as amended). This includes maintaining the expansion of the company’s business throughout the entire exemption period.
During the annual review process, Brevard County was placed on notice that Erchonia Corporation relocated out of state in October 2023 and ceased all operations in Brevard County.
On April 17, 2024, a certified letter was sent to Erchonia Corporation, notifying them that the Board of County Commissioners would consider rescinding their tax exemption based upon Erchonia Corporation no longer operating at the location where the economic development ad valorem tax exemption was approved.
Clerk to the Board Instructions:
Upon approval by the Board, execution by the Chair, and attestation by the Clerk, file the ordinance with the Department of State as required by law within the 10-day deadline. Please return a copy of the executed ordinance with the Department of State’s official acknowledgement of filing to the County Manager’s Office, County Attorney’s Office, and EDC of Florida Space Coast at 6525 3rd Street, Suite 304, Rockledge, FL 32955.