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69 The 2" category of tax abatement award (out of 3 possible categories) is applied during <br />the tax abatement period. <br />Property taxes abated scenario expressed in current dollars: <br />— Initial Assessed value (Year 1): $1, 615, 000 <br />— Millage rate (3 affected tax funds) totals: 7.0512 mills <br />— Depreciation applied to tangible personal property as described above <br />— 2nd abatement award category (out of 3 categories) with an 8 -year schedule is <br />applied <br />This scenario provides a rough estimate of the maximum potential tax abatement amount. The actual <br />assessed value for any given year during the abatement period will be determined by the PAO on or <br />around January 1St of the given year. <br />Timing <br />According to the Diamond Drinks of Florida, Inc. tax abatement application and recent correspondence <br />with company representatives, the property has been acquired and the first ten employees will be hired <br />by the beginning of April. Based on the company's hiring and operations plans, the facility will first be <br />assessed for tax purposes on or about January 1, 2022 for the 2022 tax year. Therefore, the application <br />proposes that the tax abatement (Year 1) begin in 2022. <br />Limitations & Safeguards <br />As previously described in this report, the tax abatement ordinance limits the tax abatement to new <br />tangible personal property associated with certain types of qualified businesses (real property <br />improvements would also be included if a new building or new building expansion). Also, the tax <br />abatement applies to a limited number of tax funds for a maximum of 10 years. In addition, the tax. <br />abatement ordinance requires tax abatement grantees to enter into a tax exemption (abatement) <br />agreement with the county, meet all exemption (abatement) requirements on a continuing basis, file an <br />annual compliance report with the county, and immediately advise the county of any failure of the <br />business to meet exemption (abatement) requirements. Under the tax abatement ordinance, the BCC is. <br />authorized to revoke or revise the exemption if the BCC determines that the business no longer meets <br />the exemption requirements or that the application or any annual report contains a materially false <br />statement that would have affected granting or continuing the exemption (see page 6 of attachment #1). <br />Those limitations and safeguards apply to the Diamond Drinks of Florida, Inc. application. <br />Ordinance & Agreement <br />In order to approve the subject tax abatement application, the County must adopt an ordinance <br />specifically for the Diamond Drinks of Florida, Inc. abatement and approve an agreement with Diamond <br />Drinks of Florida, Inc. The County Attorneys Office has prepared an ordinance and an agreement (see <br />attachments 8 and 9). As proposed, the ordinance provides findings and establishes up to a 8 year <br />abatement beginning in 2022. Consistent with the County's tax abatement ordinance, the proposed <br />agreement requires Diamond Drinks of Florida, Inc. to provide an annual status report to confirm <br />compliance with tax abatement requirements and commitments as referenced in the "Limitations & <br />5 <br />C:\Users\legistar\AppData\Loca]\Temp\BCLTechnologies\easyPDF 8\@BCL@880E2271\@BCL@88OE2271.doc 5 <br />