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INDIAN RIVER COUNTY, FLORIDA COMMUNITY DEVELOPMENT MEMORANDUM TO: Joseph A. Baird; County Administrator EPARMENT HEAD CONCURRENCE: obert M. Keating,"ommunivelopment Director FROM: Stan Boling, AICP Planning Director DATE: February 7, 2013 SUBJECT: Review of INEOS New Planet BioEnergy LLC's Ad Valorem Tax Exemption Annual Report It is requested that the following information be given formal consideration by the Board of County Commissioners at its regular meeting of February 19, 2013. BACKGROUND On December 20,2011,the Board of County Commissioners held a public hearing to consider a request from INEOS New Planet BioEnergy LLC for an economic development ad valorem tax exemption(tax abatement). At that hearing,the Board considered INEOS's application together with staff's analysis and input from the Property Appraiser's Office, Chamber of Commerce, and Economic Development Council. Based on the evidence presented,the Board found that INEOS's proposed bioenergy facility project qualified for tax abatement as a new business, found that INEOS's application scored in the highest abatement award category under adopted scoring guideline, granted a 10 year tax abatement beginning in 2013, adopted a tax exemption ordinance for the INEOS project, and approved a tax exemption agreement with INEOS (see attachments 1, 2, and 3). The exemption applies to approximately 30% - 40% of INEOS's total ad valorem tax bill and decreases during the 10 year abatement period(see attachment#7). Since the December 20, 2011 hearing, INEOS has substantially completed project construction,hired facility personnel, and recently filed its first annual report with staff as required by the tax exemption agreement. The first "property tax year" for the new facility is 2013. Under requirements of the tax exemption agreement and the County's Chapter 1100 tax exemption regulations(see attachment#4), INEOS is required to provide a number of new jobs at a high average wage level, file an annual report on or before January 15th of each year beginning in 2013, abide by representations made to the Board, and comply with tax exemption requirements. The annual report filing provides the County with a convenient opportunity to verify compliance with tax exemption requirements. If at any time the Board determines that INEOS is not in compliance, the Board may revoke or revise the tax exemption. FACommunity DevelopmentTurDevW02013 BCCUNEOSAdValreport.doc 1 128