Cape Coral is proposing to increase and adjust incentives for certain types of businesses while also redefining eligibility.
Economic Development Manager Sharon Woodberry presented a comprehensive update on the city’s Economic Development Incentive Program that expands eligibility for certain incentives Wednesday.
Much of the information shared at the Cape Coral City Council workshop dealt with housekeeping measures but Woodberry said the department also added 12 goals and identified them to align with the strategic plan and growth model.
New eligibility requirements were proposed, as well as triggers for disqualifications and expanding return on investment analysis. Additional disqualifications for the program include homebase businesses, gas stations, car washes and storage facilities.
“We are proposing that the incentive participation agreements are only effective for greater than $100,000 and liens and claw backs when funds are disbursed upfront,” Woodberry said.
Applicant also must submit prior to their certificate of occupancy or completion to be considered and, if permits expire, the business no longer is eligible for an incentive award.
The programs include the Local Job Creation Incentive Program, Creative Cape Arts Incentive Program, Cape Collaborates Small Business Partner Program, Business Infrastructure Grant and the Enhanced Value Recapture Grant.
The adjustments for the Local Job Creation Incentive Program include ineligibility for retail trade and wholesale trade. Targeted industries include life sciences, information technology, financial and professional services, light industries and manufacturing and logistics and distribution.
The proposed language also includes that recipients of the “awards shall remain operating in the city for a minimum of five years from the date of receipt of said funds.” If the business leaves before five years, the funds are to be paid back on a pro-rated basis with the amount due reduced by 20% of the total incentive for each full year the business operated in the city.
The Creative Cape Arts Incentive Program provides upfront funding and the proposed language is “the city manager or their designee, may require a lien in the amount of the incentive, executed by the incentive recipient and owner of the applicable real property, which shall be recorded on the real property.”
The recipients have the same requirements of staying in the city for five years, as well as the money due if they leave early.
The Cape Collaborates Small Business Partner Program, which encourages new small business startups, expansion of existing businesses and relocation of out of market businesses, include changes that would align the program with the current structure of the Breaking Barriers 2 Business Program with a reimbursement-based award. This excludes gas stations, retail, car washes and storage facilities. Woodberry said it no longer requires a lien for the program.
In addition, the program includes capital improvements associated with new construction, renovation or tenant improvements, as well as payment of impact, permitting, and special assessment fees and land improvement and development costs. Ineligible expenditures include business advertising, furniture and fixtures, and capital machinery and manufacturing equipment, furniture and fixtures.
The eligibility criteria for the small business partner program are those who generate average annual gross revenue of $1 million or less per year for the last two years. The minimum funding is $5,000 and the maximum would be $50,000.
The Business Infrastructure Grant has an increased award of 10% of construction cost not to exceed $250,000, not just infrastructure. It also expands eligibility to allow investment ready projects without an identified end-user. This is intended for new non-residential construction.
The Enhanced Value Recapture Grant has an allowance for co-located retail. Again this is with the exception that “retail and wholesale trade shall be an ineligible industry.”
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