Subject:
Title
Approval of Economic Incentive Agreement and Interlocal Agreement with City of Titusville and Trimcor Construction of Florida, LLC, for Sanitary Sewer Extension Project along U.S. 1 Highway.
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Fiscal Impact:
None
Dept/Office:
North Brevard Economic Development Zone
Requested Action:
Recommendation
The North Brevard Economic Development Zone (NBEDZ) requests that the Board of County Commissioners (BOCC) approve the economic incentive agreement portion of an economic incentive agreement & interlocal agreement between the NBEDZ, the City of Titusville (City), and Trimcor Construction of Florida, LLC (Company) and authorize the BOCC chair to execute all documents in connection thereof. Authorize the County Manager or his designee to sign contractual agreements, modifications, and amendments and to execute all necessary budget change requests.
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Summary Explanation and Background:
This is a strategic initiative designed to develop the sanitary sewer infrastructure along a 2.5-mile undeveloped section of U.S. 1, that will utilize the City’s portion of the NBEDZ’s tax increment fund. NBEDZ, DISTRICT, has adopted a written Economic Development Plan, approved by the COUNTY per Resolution No. 2012-113, which contains a Strategic Initiatives section, permitting the DISTRICT to identify and participate in the development of infrastructure projects that are directly attributable to job creation and economic development inside the DISTRICT, including public and/or public-private partnerships to improve, create or maintain infrastructure necessary to facilitate or maintain full time jobs in the DISTRICT boundaries. The DISTRICT has identified over 5,000 linear feet of road frontage on U.S. Highway 1 between State Road 405 and 5650 Washington Avenue that is not being developed because it is not being served by sanitary sewer. It is served by City of Titusville Water. To date, it has effectively halted a number of planned commercial developments, including a hotel and an apartment complex. The cost to lay the sewer line as well as a new lift station to serve it, is estimated at $2,224,295.00.
In November 2020, at the DISTRICT’s request, the East Central Florida Regional Planning Council performed an economic impact analysis of this project and determined that upwards of 600 new jobs, $81 million in sales, and $44 million in personal income may be created as a result of commercial development once the sanitary sewer system project is completed in the aforementioned location. Additionally, it will reduce the load on portions of the current Titusville sanitary sewer system that are at maximum capacity.
TRIMCOR Construction of Florida, LLC filed an application with the DISTRICT for participation in this strategic initiative. This reimbursable grant to the Company provides for the construction of a force main from Lift Station 56 south, approximately 11,120 linear feet to link up with the CITY sewer system south of State Road 405. This will open up development along this entire strategic corridor. This project will also allow the applicant to proceed with a real estate development project on one of those parcels, which currently cannot be developed because of the sewer issue.
The City of Titusville has approved this economic incentive agreement and authorized the city’s portion of the tax increment funding to fund the payments. The DISTRICT would utilize balance forward revenue in the City’s TIF fund totaling approximately $1.5 Million, along with $750,000 in new revenue projected FY 21/22, as the source of grant funding. Upon completion, the City will accept the sanitary sewer line and lift station, and has agreed to maintain it going forward. The NBEDZ board approved this grant at its May 14, 2021 and August 13, 2021 board meetings, and the City of Titusville’s Council approved it at its July 20th public meeting. The County is not a party to this economic incentive agreement, but is requested to sign page 22 in accordance with Brevard County Code section 98-246(b)(4), which requires all grants exceeding $500,000 to be approved by the Board of County Commissioners, whether funded by County or City tax increment funding.
This grant does contain a contingency provision in paragraph 3.3(g) that would permit the DISTRICT to approve an additional grant(s), not to exceed $225,000, if necessary, without returning to the Board. Additionally, pursuant the Titus Landing agreement, the City tax increment funding is a backup to the NBEDZ’s payments on the Titus Landing Project (TLP). Section 3.2b of this agreement clarifies that if it becomes necessary to use City tax increment funding for the TLP, the City TIF would have priority for TLP over the U.S. 1 Corridor project, and if this causes a shortfall for Project U.S. 1 Corridor, then NBEDZ may pay the grant from the County tax increment funding, and then seek reimbursement from the City portion of the tax increment funding, as it becomes available.
By approving this agenda item, the Board specifically finds that the Grant serves a public purpose which includes promotion of economic development, job growth, and the future expansion of projects within the NBEDZ, as well as expansion of the County’s tax base.
Contact Troy Post with the NBEDZ, at 321-960-1458, or troy.post@brevardfl.gov <mailto:troy.post@brevardfl.gov>
Clerk to the Board Instructions:
Provide signed copy of Economic Incentive Agreement & Interlocal Agreement to CAO and NBEDZ.