Items Types:
Economic Development
For Meeting of:
June 2, 2014
District: 1 From:
Contract ID: Document Number:
Exhibits: Yes On File (City Clerk) : Yes Draft Only: No
Grant Received by City?: No

United States Tennis Association, Inc. Qualified Target Industry Tax Refund Resolution


The United Stated Tennis Association, Inc. (USTA) is the national governing body for tennis in the United States and the recognized leader in promoting and developing the sports’ growth on every level in the United Sates. USTA is the world’s largest tennis organization in the world with more than 770,000 individual members and 8,000 organizational members. The organization’s national headquarters is in White Plains, NY. The Player Development division headquarters, with 42 employees, is located in Boca Raton, FL.

The USTA has selected a 63 acre site in Lake Nona to be the new “Home of American Tennis”. As the largest tennis complex in the country, the development will include a tournament and league area with tournament administration offices; a collegiate tennis area, with seating for 1,200 and which will serve as the home of the University of Central Florida’s men’s and women’s varsity tennis programs; a Team USA area to be utilized by 17 USTA sections, coaches and players from around the country; a high performance and player development area, including a Player Lodge to host players during training and a building where the national headquarters for the Player Development division will be located; and a USTA office building which will house the national headquarters for the Community Tennis division, a pro shop, fitness area, player lunge and cafeteria. The entire complex will contain more than 100 hard and clay courts, including mini-courts aimed to train players 10 years of age and under. As an inclusive gathering place, this development will allow Floridians of all ages the chance to learn the game and will heighten Florida’s profile as a top state for the sport of tennis.

If the Qualified Target Industry (QTI) program incentive is made available to the organization, USTA will create 154 new-to-Florida jobs by December 31, 2017, paying an annual average wage of $84,892, which is at least 200% of the State of Florida annual wage. The average value of benefits that will be available to employees is $20,200, which includes health insurance, disability insurance, 401(K) benefits, paid vacation, sick leave and a tuition reimbursement program. USTA’s total capital investment is estimated to be $60 million in construction and equipment. In addition to the City of Orlando, North Carolina was considered for this relocation.

The State of Florida will provide a total of $1,078,000 to USTA under the QTI program, which includes the City's local financial support. City staff proposes to provide the local 20% QTI match, up to $1,400 per job created, paying an average annual wage of $84,892. Under this arrangement, the City of Orlando would provide $215,600 as an incentive over a five-year period. This match includes a High Impact Sector Bonus. City staff is recommending this match because USTA is: 1) a targeted growth industry; 2) creating 154 new jobs; 3) retaining 42 existing Florida jobs; 4) investing $60 million in construction and equipment; and 5) considering other states for expansion.

The City of Orlando will benefit through the creation of 154 positions over the next two (2) years and the likelihood of continued job growth and investment well beyond this time frame. Florida's Qualified Target Industry Program includes strict accountability requirements of the applicant. The pledge of funds pursuant to this resolution shall be contingent upon USTA being qualified by the State of Florida as a QTI Program participant, meeting its job and wage obligations under the program and future budget appropriations by the Orlando City Council.

Fiscal & Efficiency Data: Fiscal Impact Statement attached

Recommended Action:
Approval of the United States Tennis Association, Inc. Qualified Target Industry Tax Refund Resolution and authorizing the Mayor or Mayor Pro Tem and City Clerk to execute same, subject to review and approval of the City Attorney's Office

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: Kim King
Approved By:

Department Date and Time
Planning and Environmental Attorney 5/20/2014 3:58 PM
Budget Outside Routing Approval 5/22/2014 10:50 AM
City Clerk 5/22/2014 10:57 AM

Name: Description: Type:
USTA_FIS.docx Fiscal Impact Statement Fiscal Impact Statement
QTI_Resolution_-_USTA__Inc..docx Resolution Resolution Letter

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