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INDIAN RIVER COUNTY, FLORIDA MEMORANDUM TO: Jason E. Brown; County Administrator THROUGH: Stan Boling, AICP; Community Development Director THROUGH: Sasan Rohani, AICP Chief, Long -Range Planning FROM: Bill Schutt, AICP Senior Economic Development Planner, Long Range Planning DATE: February 14, 2017 SUBJECT: Suspension of INEOS New Planet BioEnergy LLC's Ad Valorem Tax Exemption It is requested that the following information be given formal consideration by the Board of County Commissioners at its regular meeting of February 21, 2017. 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 guidelines, 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 40% of INEOS's total ad valorem tax bill (General Fund, MSTU, and Emergency Services District) and decreases during the 10 year abatement period. Since the December 20, 2011 hearing, INEOS completed project construction, and hired facility personnel. In January 2013, 2014, 2015, and 2016, INEOS filed its first, second, third, and fourth annual reports with the County as required by the tax exemption agreement. Those reports indicated job and wage levels consistent with INEOS' tax abatement application and information from the Florida Department of Revenue. Based on that information, the Board found that INEOS was in compliance with its ad valorem tax exemption requirements. After Board actions, INEOS then applied to the Property Appraiser's Office for the exemption and the exemption was granted for "property tax years" 2013, 2014, 2015, and 2016. In late 2016, INEOS closed its facility, placed it on the market for sale, and terminated nearly all jobs. With the closure of the facility and the elimination of jobs, INEOS has notified staff that it will not C•\Users\GRANIC—l\AppData\Local\Temp\BCL Teclmologies\easyPDF 7\@BCL@18051225\@BCL@18051225.docx P34