Bill Type and Number: Ordinance 2007-541

Sponsor: The Council President at the request of the Mayor:

Date of Introduction: May 8, 2007

Committee(s) of Reference: F; ECID

Date of Analysis: May 11, 2007

Type of Action: Development Agreement Authorization; Appropriation

Bill Summary: This ordinance authorizes the execution of an Economic Development Agreement between the City of Jacksonville, the Jacksonville Economic Development Commission and International Baler Corporation, in connection with the expansion of the company’s manufacturing facility in the Northwest Jacksonville area. The bill appropriates $250,000 from the Northwest Jacksonville Economic Development Trust Fund to provide a grant of $75,000 for infrastructure improvements and a loan of $175,000 for site development to the company, as initiated by B.T. 07-132. Provision is made to carryover the funds to Fiscal Year 2007-2008. The project site is in Council District 10, located at 5400 Rio Grand Avenue.

Background Information: International Baler Corporation proposes to expand its existing 57,000 s.f. facility and construct a 30,000 s.f. building addition to expand its manufacturing facility and purchase machinery and equipment. The project cost is $1,985,000. The project will create 15 new full time jobs within 36 months of project completion with an average wage of $36,916. Private capital investment necessary to complete the project is estimated to be $1,735,000. Baler is responsible for any cost overruns associated with the expansion. The JEDC recommends financial assistance in the form of a $250,000 BIG grant and loan to offset a portion of infrastructure related costs associated with site development, including utility upgrades, storm water retention and drainage improvements, landscaping improvements, security lighting and parking lot improvements.

Policy Impact: Economic Development/Jacksonville Economic Development Commission

Fiscal Impact: The bill appropriates $250,000 in a NWJEDTF grant/loan.

Analyst: Jackson