SUBJECT/RECOMMENDATION:
Title
Approve Tenant Improvement Grant Agreement with Sports Facilities Companies, LLC, for retention and expansion of Headquarters operation and authorize the appropriate officials to execute same.
Body
SUMMARY:
Proposed project is an expansion of Sports Facilities Companies’ headquarters operation. The company currently employs 60 at its Clearwater location, anticipates adding at least 10 new jobs per year for 5 years for a total of no fewer than 50 net new jobs in 5 years. Thus, the company will lease approximately 5,600 additional square feet to accommodate the expansion. Company stated they are evaluating site locations outside of downtown area including locations in other municipalities of Pinellas and Hillsborough counties.
Fiscal & Economic Analysis:
Economic Development Division conducted a fiscal and economic impact analysis and finds that the project is expected to yield approximately $298,000 in net benefits to the CRA over a 10-year period and that a Tenant Improvement Grant of $100,000 will have a 29.8% rate of return, with a payback period of 4.2 years. Direct and Indirect (“Spin-off”) jobs will total an estimated 227 retained and new jobs in the Downtown area. Total capital investment, including landlord’s tenant improvement allowance, is anticipated to be $900,000.
Basis for Consideration of Incentives:
The proposed project is located within the Downtown Core Character District. Use of Community Redevelopment Agency (CRA) funds is consistent with Goals & Objectives of Clearwater Downtown Redevelopment Plan (hereafter, "Plan"). Specifically, 1. People Goal: Objective 1D and Policy 8 which state, in part, "Encourage a variety of office-intensive businesses ..." and, "The CRA will develop property owner incentives for building improvements to support intensive office uses ..."
The Plan also provides the following considerations for use of tax increment finance (TIF) funds for incentives: 1) Is the proposed incentive compliant with federal, state, and local laws? 2) Is the proposed incentive aligned with the Vision and Goals of the 2018 Downtown Redevelopment Plan? 3) Has the private sector attempted to implement this project without an incentive? 4) What is the expected return on investment from a financial and public benefit perspective? 5) Does the site/building under consideration have adequate access to the required public infrastructure and/or public utilities to support the proposed use? For each of these questions, the answer is, "yes".
About Sports Facilities Companies:
Since 2003, the Sports Facilities Companies, comprised of Sports Facilities Advisory, Sports Facilities Management, and Sports Facilities Development, have been a resource for communities who want to plan, fund, develop, or operate sports, recreation, entertainment, and fitness centers.
APPROPRIATION CODE AND AMOUNT:
For fiscal year 2022/23, funds are available in CRA Project 3887552-R2003 - Economic Development-City.
USE OF RESERVE FUNDS:
N/A