TO: Mayor and Commission AGENDA DATE: 9/4/2024
FROM: City Manager AGENDA ITEM: 10 - D
SUBJECT:
Title
Request approval of Resolution No. 2024-45 and Budget Amendment to increase the economic development initiative account to fund the reimbursement of taxes to Amazon for the Fiscal Year 2024.
Strategic Goal: Effective Governance and Productive Government
Body
LOCATION:
City Hall
COST:
$58,500
SOURCE OF FUNDS:
Economic Development Initiative 001190 524907
ORIGINATING DEPARTMENT:
Finance
POTENTIAL MOTION:
Recommendation
“I move to approve Resolution No. 2024-45 and Budget Amendment to increase the economic development initiative account to fund the reimbursement of taxes to Amazon for the Fiscal Year 2024 at a cost of $58,500.”
END
BACKGROUND:
Background
On December 16, 2019, the Commission approved Resolution Number 2019-68 and the Economic Development Agreement between the City of Deltona and Amazon.com Services, LLC. Amazon invested approximately $122,000,000 in the construction and equipping of a warehouse, which resulted in new job creation. The agreement provided for ad valorem tax reimbursement for both real property and tangible property taxes to the company over a period of five years, for an amount not to exceed the sum of $3,000,000.
As of December 31, 2023, Amazon has reported 1,550 jobs at the project site, with an average wage of new employees at $41,726.72. The estimate cost of benefits as a percentage of the wage is 17%. Amazon has provided community service activities as required in the Economic Development Agreement and has paid $788,246.41 in real and tangible property taxes for the year 2023. The budgeted funds for the Amazon tax reimbursement is $730,000, a shortfall of $58,500. A budget amendment has been prepared to move $58,500 from General Fund balance to reimburse Amazon in accordance with the terms of the agreement.
End