CITY OF ORLANDO
COUNCIL AGENDA ITEM


Items Types:
Business and Financial Services
For Meeting of:
March 14, 2016
District: ALL From:
Contract ID: Document Number:
Exhibits: Yes On File (City Clerk) : Yes Draft Only: No
Grant Received by City?: No

Subject:
Agreement of Sale and Assignment of Florida Voluntary Clean Up Tax Credits.

Summary:

As part of soil and groundwater remediation activities at the sites known as the Orlando Events Center, the Proposed Soccer Stadium site, and Creative Digital Village, the City qualifies for Florida Department of Environmental Protection (FDEP) Voluntary CleanUp Brownfield Tax Credits. Under the program, the City is eligible to receive income tax credits for 50% of remediation and monitoring costs, up to $500,000 annually for each site. Since the City does not have tax liability, it cannot directly benefit from these tax credits. However, these credits are transferable to other taxpaying entities.

In 2012, Fallbrook Credit Finance, LLC (Fallbrook) was selected through the RFQ process to broker the City's Brownfield Tax Credits. The attached agreement identifies the ultimate purchaser of the tax credits (World Electric Supply, Inc.), specifies the terms and conditions of the assignment, and finalizes the purchase price. The tax credits covered in the attached agreement have a face value of $381,854.93. World Electric Supply has offered to purchase the tax credits for $347,487.99, which is equal to ninety one cents ($0.91) for each dollar ($1.00) of the Tax Credits. After deducting Fallbrook's broker fee, the City will ultimately receive $336,032.34 once the tax credit certificate has been transferred.

 


Fiscal & Efficiency Data:

Reimbursement for a portion of the City's remediation costs associated with cleanup at the sites known as the Orlando Events Center, the Proposed Soccer Stadium Site, and Creative Digital Village, see attached Fiscal Impact Statement.


Recommended Action:

Approval of the Agreement of Sale and Assignment of Florida Voluntary Clean Up Tax Credits with World Electric Supply, Inc. and Fallbrook Credit Finance, LLC and authorize the Chief Procurement Officer to execute the document subject to review and approval by the City Attorney’s Office. Also authorize the Public Works Fiscal Manager to execute any additional documents necessary to effectuate the sale and transfer of the tax certificate.



Agenda Item attachment(s) on file in the City Clerks Office.

Note: All agenda items must be in the City Clerk's office by Noon Friday, six(6) business days prior to the regular Monday City Council meeting.

Contact: David Billingsly
Approved By:

Department Date and Time
Budget Outside Routing Approval 2/17/2016 2:20 PM
City Clerk 2/18/2016 10:09 AM

ATTACHMENTS:
Name: Description: Type:
VCTC_Sale_FIS.pdf Fiscal Impact Statement Fiscal Impact Statement
Net_Proceed_Calculations_for_Clean_Up_Tax_Certificates.pdf Net Proceed Calculations for Clean Up Tax Certificates Backup Material
Sale_and_Assignment_of_VCTC_City_of_Orlando_2-5-16.pdf Draft Agreement Backup Material

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