HomeMy WebLinkAbout2005-132 RESOLUTION NO. 2005 -132
A RESOLUTION OF THE BOARD OF COUNTY COMMISSIONERS OF
INDIAN RIVER COUNTY, FLORIDA; RECOMMENDING TO
ENTERPRISE FLORIDA THAT XSTREAM SYSTEMS INC. BE
APPROVED AS A QUALIFIED TARGET INDUSTRY PURSUANT TO
s.288.106, FLORIDA STATUTES; AND PROVIDING AN
APPROPRIATION OF $500,000 AS PART OF A LOCAL JOBS GRANT
PROGRAM FOR LOCAL PARTICIPATION IN THE QUALIFIED
TARGET INDUSTRY TAX REFUND PROGRAM, AND PROVIDING
FOR AN EFFECTIVE DATE.
WHEREAS, the business under consideration, XStream Systems Inc., is a manufacturing
facility and corporate headquarters for electronic detection devices; and
WHEREAS, XStream Systems Inc. is currently located in Vero Beach, Florida, and New
Egypt,New Jersey; and
WHEREAS, XStream Systems Inc. is an industry targeted by the State of Florida and
Indian River County for new high-wage job creation; and
WHEREAS, XStream Systems Inc. is considering expanding its manufacturing facility
and corporate headquarters in Indian River County; and
WHEREAS, XStream Systems Inc. is also considering alternative sites in the states of
New Jersey, California, and Massachusetts, areas which are also offering location incentives; and
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WHEREAS, XStream Systems Inc. presently employs sixteen (16) employees statewide;
and
WHEREAS, XStream Systems Inc. is planning to create up to five hundred and forty six
(546) additional full-time equivalent new jobs in Indian River County; and the average wage for
the additional jobs will exceed the area's average wage; and
WHEREAS, XStream Systems Inc. has prepared an application for a grant under the
State of Florida's Qualified Target Industry(QTI) Tax Refund Program; and
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r RESOLUTION NO. 2005-132
WHEREAS, the State of Florida's QTI grant program requires a 20% local government
match to qualify XStream Systems Inc. for the state's QTI grant; and
WHEREAS, XStream Systems Inc. has submitted an application for a local jobs grant;
and
WHEREAS, the XStream Systems Inc. local jobs grant application meets all applicable
county requirements.
NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF COUNTY
COMMISSIONERS OF INDIAN RIVER COUNTY, FLORIDA that the Board of County
Commissioners hereby recommends to Enterprise Florida that XStream Systems Inc. be
approved as a Qualified Target Industry Business pursuant to s.288.106,Florida Statutes, and
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BE IT FURTHER RESOLVED that the Board of County Commissioners hereby agrees
to make the necessary commitment of local financial support for XStream Systems' application
for the Qualified Target Industry Tax Refund Program in the amount of up to $500,000. Payment
is proposed to be made in the following increments: State FY 2007-08 - $100,000, State FY
2008-09 - $100,000, State FY 2009-10 - $100,000, State FY 2010-11 - $100,000, State FY 2011-
12 - $100,000. Funds are to be paid to the Florida Economic Development Trust Fund with the
stipulation that these funds are intended to represent the "local participation" required by
s.288.106, Florida Statutes.
The foregoing Resolution was offered by Commissioner Bowden , and
second by Commissioner Davi s , and being put to vote, the vote was
as follows:
Thomas S. Lowther, Chairman Absent
Arthur R. Neuberger, Vice Chairman Aye
Wesley S. Davis, Commissioner Aye
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RESOLUTION NO. 2005-13 2
Gary C. Wheeler, Commissioner Aye
Sandra L. Bowden, Commissioner Aye
The chairman thereupon declared the resolution duly passed and adopted this 6th
day of September , 2005.
Date: 09/06/2005
BOARD OF COUNTY COMMISSIONERS
OF INDIAN RIVER COUNTY
Thomas S. Lowther, Chairman
ATTEST BY: � ~ .
Jeffrey K. Barton, Clerk,
APPROVED AS TO FORM AND LEGAL SUFFICIENCY
/-Ik f a, )
William G. Collins II, County Attorney
FACommunity Development\Users\EDplannrUobs Grant Program\X-StreamSystems Inc\QTI RESOL-XstreamSystems v2.doc
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INDIAN RIVER COUNTY JOBS GRANT AGREEMENT
THIS AGREEMENT is made on the 6th day of September, 2005 by and between Indian
River County, a political subdivision of the State of Florida, by and through its Board of
Commissioners, hereinafter referred to as the COUNTY, and XStream Systems, a corporation
authorized to do business in the State of Florida,hereinafter referred to as the COMPANY,whose
Federal I.D. is 20-1180466.
WITNESSETH:
WHEREAS,it is the policy of the COUNTY to stimulate economic growth in Indian River
County,by either attracting new businesses to Indian River County or by encouraging the expansion
of existing businesses within Indian River County; and
WHEREAS, the creation of new employment opportunities for residents of Indian River
County and the increased tax revenues resulting from such business expansion or relocation within
Indian River County is beneficial to the local economy; and
WHEREAS,the COUNTY has determined that offering a Jobs Grant Program encourages
either businesses to expand within or new businesses to locate in Indian River County and thereby
creates new employment opportunities for the residents of Indian River County; and
WHEREAS,Indian River County,through its Board of County Commissioners,has created
a local Jobs Grant Program and Fund; and
WHEREAS, the COMPANY will relocate to Indian River County and expand its existing
business in Indian River County to create certain new employment opportunities at a certain average
annual salary level in Indian River County in accordance with the county's Jobs Grant Program
criteria; and
WHEREAS,the COMPANY has been determined to be eligible to receive a Jobs Grant by
the COUNTY; and
WHEREAS,the COMPANY acknowledges that this Agreement shall be based upon proven
performance of the requirements of these grant procedures; and,
WHEREAS,the COUNTY finds and declares that it is in the public interest to award a Jobs
Grant to the COMPANY pursuant to the terms of this Agreement.
NOW,THEREFORE, in consideration of the premises and mutual covenants hereinafter
contained, the parties do agree as follows:
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1. Definitions. As used in this Agreement, the following terms shall mean:
a. "Average Annual Wage"-includes salary, bonuses, and commissions. The
Top Executive salary shall not be included in the average wage calculations.
b. "Default" - failure to comply with the terms of the Agreement.
C. "Effective Date"-shall have the meaning set forth in Paragraph 3.A.herein.
d. "Expansion of an existing business"-A business establishing 10 or more jobs
to employ 10 or more full-time employees in the County.
e. "Full-time Equivalent Job" - shall be defined as those positions that are
scheduled for at least 35 hours per week.
f. "New Business" - a business establishing 10 or more jobs to employ 10 or
more full=time employees in the County within the term of the grant provided
that such business first begins operations on a site in the County clearly
separate from any other operation owned by the same business.
g. "Indian River County Average Annual Wage" - as determined by State of
Florida Department of Labor the average annual wage per job in Indian River
County.
2. Term;Termination. This Agreement shall be effective upon the date of execution of
this contract by both parties hereto, and shall automatically terminate five(5)years
after the Effective Date unless terminated earlier by the County because of a default
by the COMPANY.
3. Grant Eligibility; Payment Schedule.
a. The COMPANY will be eligible for a Jobs Grant(hereinafter a "Grant") of
an amount up to$500,000,which Grant shall be payable over a five(5)year
period as follows: Year 1 -20%;Year 2-20%;Year 3 -20%; Year 4-20%;
Year 5 - 20%. The five (5) year period will begin with the building of the
first phase of facilities construction or the date the Company hires at least 50
employees (first year), whichever date first occurs (the "Effective Date").
The County shall pay$2,000 per Full-Time Equivalent Job.
b. Performance Evaluation for Payment. The company's performance
evaluation. will be determined on an annual basis, by the information
provided on the state's unemployment compensation report(UCT-6 form)as
it relates to the number of new jobs created and maintained, the annual
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average wage,and the percentage of new employees that are current residents
of Indian River County, as stipulated in this contract. Payment of the local
jobs grant shall be made to the Florida Economic Development Trust Fund on
a yearly basis as specified by this agreement and as required by the State for
state fiscal years 2007-08,2008-09,2009-2010,2010-2011,and 2011-2012,
provided XStream Systems Inc.receives state approval as a Qualified Target
Industry for at least 250 qualifying jobs. If XStream Systems, Inc. does not
receive approval through the State's Qualified Target Industry Program,the
initial payment of the Jobs Grant Funds shall be made after the building of
the first phase of construction or the date the Company hires at least fifty(50)
employees meeting the minimum salary requirements specified in this
agreement (Effective Date). Subsequent eligibility determinations shall be
made at each subsequent anniversary of the Effective Date. Payment of Jobs
Grant Funds shall be made within forty-five (45) days after the date the
COMPANY submits the last annual unemployment compensation report
comprising the Annual Job Status Report(as defined in Paragraph 7),and this
payment obligation shall survive the termination of this Agreement.
Notwithstanding the foregoing, should the date for filing the last annual
unemployment compensation report, as described above, not coincide with
the date that an eligibility determination is made,.the COMPANY shall have
the right to file a report, in form substantially similar to an annual
unemployment compensation report, and in such event, such report shall
constitute the Annual Job Status Report, the filing of which shall begin the
running of the forty-five (45)-day period within which payment shall be
made.
4. Relocation Commitment. As a condition precedent to and as consideration for
obtaining Jobs Grant Funds from the COUNTY,the COMPANY agrees to locate or
expand its business operations to Indian River County for a period of at least five(5)
years to a suitable site as described on Exhibit "A", which is attached hereto and
made a part hereof.
5. Job Creation Commitment. As a further condition precedent to and as consideration
for obtaining Jobs Grant Funds from the COUNTY,the COMPANY agrees to create
a minimum of 250 Full-Time Equivalent Jobs (of which 250 jobs qualify for the
county's local job grant program) in Indian River County as more specifically set
forth in Exhibit "B", which is attached hereto and made a part hereof. XStream
Systems,Inc. commits to provide a minimum of 50 new jobs per contract year with a
minimum salary as specified in the Salary Level Commitment,in item "6" of this
contract. The Company's failure to maintain its job creation commitment for anyone
year will result in the forfeiture of the Grant amount it was scheduled to receive for
that year; however, such forfeiture will not preclude the Company's receipt of
scheduled Grant amounts for subsequent years in which it is able to maintain its job
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creation commitment. Before receiving any funding, the company must provide to
the County a letter of credit or surety for business performance and minimum length
of stay in the county(5 years).
6. Salary Level Commitment. As a further condition precedent to and as consideration
for obtaining jobs grant funds from the COUNTY, the COMPANY agrees to pay
each employee whose job is eligible.for grants hereunder,an annual average salary of
not less than $28,585.00($13.74 per hour),without taking into account the value of
any benefits. The COMPANY shall provide written verification satisfactory to the
COUNTY to such average salaries in accordance with the provisions of paragraph 7
herein below. The COMPANY'S failure to maintain its salary level commitment for
any one year will result in the forfeiture of the Grant amount for those Full-Time
Equivalent Jobs where the salary commitment was not maintained which it was
scheduled to receive for that year; however, such forfeiture will not preclude the
Company's receipt of scheduled Grant amounts for subsequent years in which it is
able to maintain its salary level commitment.
7. Annual Job Status. The COMPANY must provide the COUNTY with quarterly
unemployment compensation reports(Form UCT-6)of its business operations within
Indian River County on State form UCT-6 as amended which is attached hereto and
made a part hereof as Exhibit"C". The COMPANY shall provide the reports at the
same time it provides the State of Florida with the reports,but no less frequently than
semi-annually. The cumulative unemployment compensation reports required to be
filed for the annual period prior to each eligibility determination shall collectively
comprise the Annual Job Status Report.
8. Grant Restriction. The Jobs Grant Funds available under this Agreement will be
provided only for reimbursement of expenses associated with the physical move,
relocation and/or expansion of the COMPANY to Indian River County,including but
not limited to corporate or company relocation expenses, infrastructure costs,
leasehold improvements, company. sponsored child day care facilities, .rent for
company facilities,lease buyouts,training expenses and other expenses approved by
the COUNTY.
9. Default; Termination. In the event the COMPANY defaults in the performance of its
guarantees and commitments as provided for in this Agreement,the COUNTY may,
at its option, terminate this Agreement.
10. Indemnification. For ten and 0/100($10.00)dollars consideration,receipt of which
is hereby acknowledged, the COMPANY shall indemnify and save harmless and
defend the COUNTY, its agents, servants, and employees from and against any and
all claims, liabilities, losses, and/or cause of action which may arise from any
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negligent act or omission of the COMPANY,its agents,servants,or employees in the
performance of services under this Agreement.
11. Forum; Venue. This Agreement shall be governed by the laws of the State of
Florida. Any and all legal action necessary to enforce the Agreement will be held in
Indian River County or the Federal District Court for the Southern District of Florida.
No remedy herein conferred upon any party is intended to be exclusive of any other
remedy,and each and every such remedy shall be cumulative and shall be in addition
to every other remedy given hereunder or now or hereafter existing by law or in
equity or by statute or otherwise. No single or partial exercise by any party of any
right, power, or remedy hereunder shall preclude any other or further exercise
thereof.
12. Lobb nest Certification. The COMPANY warrants that it has not employed or
retained any company or person, other than a bona fide employee working solely for
the COMPANY to solicit or secure this Agreement and that it has not paid or agreed
to pay any person, company, corporation, individual, or firm, other than a bona fide
employee working solely for the COMPANY,any fee,commission,percentage,gift,
or any other consideration contingent upon or resulting from the award or making of
this Agreement.
13. No Discrimination Certification.The COMPANY warrants and represents that all of
its employees are treated equally during employment without regard to race, color,
religion, disability, sex, age, national origin, ancestry, marital status, or sexual
orientation.
14. Attorneys' Fees. If any legal action or other proceeding is brought for the
enforcement of this Agreement, or because of an alleged dispute,breach, default or
misrepresentation in connection with any provisions of this Agreement, the
successful or prevailing party or parties shall be entitled to recover reasonable
attorney's fees, court costs and all expenses (including faxes) even if not taxable as
court costs (including,without limitation, all such fees,costs and expenses incident
to appeals),.incurred in that action or proceeding, in addition to any other relief to
which such party or parties may be entitled.
15. Enforceability. If any term or provision of this Agreement,or the application thereof
to any person or circumstances shall,to any extent,be held invalid or unenforceable,
the remainder of this Agreement, or the application of such terms or provision, to
persons or circumstances other than those as to which it is held invalid or
unenforceable, shall not be affected, and every other term and provision of this
Agreement shall be deemed valid and enforceable to the extent permitted by law.
The Company's failure to maintain its job creation commitment or salary level
commitment for any one year will result in the forfeiture of the Grant amount it was
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scheduled to receive for that year; however, such forfeiture will not preclude the
Company's receipt of scheduled Grant amounts for those subsequent years in which
it is able to maintain its job creation and salary level commitment.
16. Assignment. This Agreement may be assigned to any other persons or firm only
upon obtaining the County's written approval.
17. Conflict of Interest. The COMPANY represents that it presently has no interest and
shall acquire no interest,either direct or indirect,which would conflict in any manner
with the performance of services required hereunder, as provided for in Florida
Statutes 112.311. The COMPANY further represents that no person having any
interest shall be employed for said performance.
18. Notices. All notices required in this Agreement shall be sent by certified mail,return
receipt requested and if sent to the COUNTY shall be mailed to:
Indian River County Community Development Director
184025 1h Street
Vero Beach, Florida 32960
and if sent to the COMPANY shall be mailed to (current, official address):
XStream Systems, Inc.
3873 39`h Square
Vero Beach, Florida 32960
19. Entire Agreement. The COUNTY and the COMPANY agree that this Agreement
sets forth the entire Agreement between the parties,and that there are no promises or
understandings other than those stated herein. None of the provisions, terms and
conditions contained in this Agreement may be added to, modified, superseded or
otherwise altered, except by written instrument executed by the parties hereto.
IN WITNESS WHEREOF,the Board of County Commissioners of Indian River County,
Florida,has made and executed this Agreement on behalf of the COUNTY and the COMPANY has
hereunto set its hand the day and year above written.
BOARD OF COUNTY COMMISSIONERS ATTEST-BY:
OF INDIAN RIVER COUNTY
Thomas S. Lowther, Chairman -a/f Jeffre K. Barton;Cle
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APPROVED AS TO FORINT A7;�, LF-GAL SUFFICIENCY
.
William G. Collins II,.County Attorne
COMP
BY: Title:
k-
Typed Name
WITNE
Title: � >
Signature �
(Corporate Seal
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EXHIBIT "A" TO THE JOBS GRANT AGREEMENT
BETWEEN INDIAN RIVER COUNTY AND XSTREAM SYSTEMS, INC. (COMPANY)
Company Identification and Information:
Application date: August 16, 2005
Company description:
Xstream Systems,Inc.produces,designs,and manufactures X-Ray equipment and software
that identifies substances through molecular analysis. Currently the company has contracts
with the Transportation Security Administration and Federal Aviation Administration. Its
product is being marketed to the various federal government agencies as well as local fire
departments, police departments, hospitals, pharmacies, laboratories, and the U.S. postal
service.
Company's physical address in Indian River County:
Xstream Systems, Inc. is looking at five (5) separate sites for its expansion within the
County. The specific location will be determined at a later date.
Company's mailing address (notify County of new address when known):
3873 39`h Square, Vero Beach, FL 32960
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EXHIBIT "B" TO THE JOBS GRANT AGREEMENT
BETWEEN INDIAN RIVER COUNTY AND XSTREAM SYSTEMS, INC. (COMPANY)
I. Target Industry Category eligible for application:
Animal Aquaculture (SIC # 0273)
Food and Kindred Products (SIC #20)
Printing and ublishing(SIC # 27)
Fabricated M tal Products (SIC # 34)
X Industrial and Commercial Machinery and Computer Equipment (SIC # 35)
Transportation Equipment (SIC # 37)
Transportation Services (SIC #47)
Communicate ns (SIC #48)
Computer Programming,Data Processing,and other Computer Services(SIC#737)
Health Services (SIC # 80)
Other,clean light industries that have average annual wages which are above the
county-wide average annual wage
II. Employment Commitment:
The COMPANY is receiving this grant based upon its representation that it will bring the
following employment opportunities to Indian River County:
1) X New, ll-time employees eligible for grant application
2) X New, ll-time employees that are existing County residents
3) X Minimum average annual salary for new, full-time employees
4) Average annual salary for Indian River County as determined by ES-202
Repo
5) #of new,full-time employees whose average annual salary is 125%of Indian
RiverCounty's average annual salary
6) #of new,full-time employees whose average annual salary is 150%of Indian
RiverCounty's average annual salary
7) #of new,full-time employees whose average annual salary is 175%of Indian
RiverCounty's average annual salary
P:\Community Development\Us rs\EDplannr\Jobs Grant Program\X-StreamSystems Inc\job grant agreement-XStreamSystems v2.doc
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OF THE STATE OF FLORIDA
Office of the (bobrnor
THE CAPITOL
ro
COD
W"El
TALLAHASSEE, FLORIDA 32399-0001
]EB BUSH www.flgov.com
GOVERNOR 850-488-7146
850-487-0801 fax
February 6, 2006
Mr Jeffery K. Barton
Indian River County
P.O. Box 1028
Vero Beach, Florida 32960
Dear Mr. Barton:
Regarding Indian River County's resolution -- 2005-132 -- XStream Systems Inc.'s QTI project
was approved on October 19, 2005. Subsequently, per statute, XStream Systems Inc. has entered
into an agreement with the Office of Tourism, Trade, and Economic Development (OTTED) that
specifies requirements that must be met before a QTI refund will be made.
Enclosed is a Project Recap Sheet that summarizes the QTI requirements for this project. Please
note the QTI Refund Schedule. It lists the State fiscal years in which XStream Systems Inc. is
eligible'to 'receive a refund. The"years listed" may differ from those listed in Indian River
County's resolution: This recap sheet is offered to allow Indian River County the opportunity to
make whatever adjustments may be necessary in order to maintain the availability of the local
financial support required to keep this project eligible.
If you or your office will not be responsible for processing and submitting the required local
financial support, please forward this information to the person or office with that responsibility.
In addition, please notify OTTED of the new contact's name, office, address, and, phone and fax
numbers.
Good luck with this project. I may be reached by phone, 850/487-2568; fax, 850/487-3014; or,
e-mail, caccik(a,eog.state.fl.us.
Sincerely, —
gOAq�
Krysile ac centives Assl
Office'-of Tourism;Trade; And Economic Development
INDIAN t9 .
Enclosure: XStream Systems Inc. (ID: 05-00346) Recap Sheet p
Governor's Mentoring Initiative R
BEA MENTOR.BEA BIG HELP. �\
! 1-800-825-3786 \V\
This is NOT a substitute for the QDC or QTI Agreement. It is meant solely for the administrative use of
the QDC Applicant or the QTI Business and local community representatives.
QTI Program: Project Recap'Sheet
Project ID: 05-00346 Status: Active
Basic Project Information
Applicant: XStream Systems Inc. FEID#: 20-1180466
Sales Tax ID#: 2587427-4 Unempl.Ins.ID#: 20-1180466
Project Name: New X-ray Technology
Agreement Administration Contact Information: (current):
Mr.Roger Sobkowiak
3873 39th Square_
Vero Beach,FL 32960
Phone: 772-257-0165 Fax: 772-257-0179
Associated Affiliates,when applicable:
FEID#:
Ul:#
Applicant Tax Year: January 1 -December 31 Approval Date: October 19,2005
Local Community Information
County: Indian River County City:
Resolution#: 2005-132 Resolution:
Non-cash Support: Non-cash Support:
QTI Agreement Information
Execution Date: 2/2/2006 Contract#: OT06-079 Refund Claim After: December 31
Total Required Net,New,Full-time Jobs: 546
Job Phases;Number of Net,New Jobs(per phase); and Full Implementation Date
Jobs Date Jobs Date
Phase 1 131 12/31/2006 Phase 4 142 12/31/2009
Phase 2 118 12/31/2007 Phase 5
Phase 3 155 12/31/2008 Phase 6
Phase 7
.QDC or QTI Refund Schedule w/Brownfield Bonus,if applicable:
QTI Schedule Brownfield Bonus Schedule
Fiscal Year Scheduled Amount
2007-2008 $149,930.00 -
2008-2009 $284,981.00
2009-2010 $462,378.00
2010-2011 $624,897.00
2011-2012 $474,968.00
2012-2013 $339,917.00
2013-2014 $162,517.00
QTI Total: $2,499,588 Brownfield Total: I
NOTE: Local Financial Support (20% of the scheduled.amounts) is required unless a rural
exemption or brownfield exemption has been requested and granted. The Local Financial
Support may consist of ad valorem tax abatement,appraised land value,and/or cash.