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F_ WK. 98 PAV 131 local scale. At every level of government, economic development agencies are scrambling to identify strategies to attract and retain high value-added jobs in targeted industries. One way to compete is by offering incentives as an inducement for a company to locate in a certain area. Economic development incentives come in many forms. If they are used to accomplish clearly defined goals based on an overall economic development strategy, incentives can serve as good public policy. Incentives generally work best when subject to a rigorous short and long term cost -benefit analysis, and configured as investments so that they retain their value even if the recipient business departs. Incentives also function well when made contractual, so that recipient businesses are held accountable for their promises and performances. • Background At its May 18, 1995 workshop meeting, the Board of County Commissioners directed staff to address several economic development issues and report back to the EDC and the Board. One of the issues identified by the Board was the establishment of tax abatement incentives. Subsequent to the May economic development workshop, the County adopted an Economic Development Strategy Plan. This plan was based on the County's 1992 Overall Economic Development Plan (OEDP). The OEDP encouraged economic development within the county through the use of incentives as inducements to growth. In the County's adopted economic development strategy plan, strategic action 3.14 specifically addresses tax abatement. This strategy indicates that, by November, 1996, the county will consider holding a referendum to obtain voter approval to establish a tax abatement program for industrial development projects. On March 26, 1996, the Economic Development Council reviewed staff's report and unanimously recommended that the Board of County Commissioners adopt the attached resolution calling for a tax abatement program referendum to be conducted as part of the November, 1996 election. Also, the Economic Development Council recommended that the Board of County Commissioners adopt the attached tax abatement resolution prior to the November 5, 1996 referendum with the effective date of the resolution being. contingent on the passage of the tax abatement referendum on November 5, 1996. BACKGROUND • Program History In 1980, Florida voters passed a constitutional amendment to allow counties and municipalities the option of granting property tax exemptions to new and expanding businesses. With the passage of that amendment, Florida Law 80-347 became effective. The law modified chapters 195 and 196 of the Florida Statutes, dealing with property assessment and tax exemption, respectively. The program can be terminated at anytime, although this is not likely in the near future. May 14, 1996 26