19-2152 Granting Economic Development Ad Valorem Tax Exemption Relating to UPSORDINANCE NO. 19-2152
AN ORDINANCE OF THE CITY OF LONGWOOD, FLORIDA, GRANTING AN
ECONOMIC DEVELOPMENT AD VALOREM TAX EXEMPTION PURSUANT
TO SECTION 196.1995, FLORIDA STATUTES, AND ARTICLE VI OF
CHAPTER 82 OF THE LONGWOOD CODE OF ORDINANCES RELATING TO
THE LONGWOOD ECONOMIC DEVELOPMENT TAX ABATEMENT
PROGRAM TO UNITED PARCEL SERVICE, INC.; PROVIDING FOR
SEVERABILITY AND AN EFFECTIVE DATE.
WHEREAS, the City of Longwood ("City") is authorized to grant economic development
ad valorem tax exemptions pursuant to section 196.1995, Florida Statutes, and Article VI of
Chapter 82 of the Longwood Code of Ordinances for qualifying new businesses and expansions
of existing businesses; and
WHEREAS, the City has received a complete application seeking an economic
development ad valorem tax exemption from United Parcel Service, Inc. ("UPS") relating to an
expansion of the existing business and operations for a period of five (5) years; and
WHEREAS, upon review, the City desires to grant an economic development ad valorem
tax exemption to UPS on the terms recited herein based upon the City's review of the total
number of net new jobs to be created by UPS; the average wage of the new jobs; the capital
investment to be made by UPS; the type of business or operation and whether it qualifies as a
targeted industry as may be identified from time to time by the City Commission; the
environmental impact of the proposed business or operation; the extent to which the applicant
intends to source its supplies and materials within the City; and any other economic -related
characteristics or criteria deemed necessary by the City in accordance with section
196.1995(10), Florida Statutes; and
WHEREAS, the City has, prior to taking action on UPS' application, delivered a copy of
the UPS application to the property appraiser for Seminole County, Florida in accordance with
section 196.1995(9), Florida Statutes;
WHEREAS, the total amount of revenue available for the City from ad valorem tax
sources for the current fiscal year is $5,381,245;
WHEREAS, the total amount of revenue lost to the City for the current fiscal year by
virtue of economic development ad valorem tax exemptions currently in effect is $0.00;
WHEREAS, the estimated revenue loss to the City for the current fiscal year attributable
to this exemption of United Parcel Service, Inc. is $0.00;
Ordinance No. 19-2152
Page 1 of 3
WHEREAS, the estimated revenue loss for the City for the five-year period in which the
exemption is being granted to United Parcel Service, Inc.is $367,158.00; and
WHEREAS, pursuant to section 196.012(15), Florida Statutes, and section 82-252,
Longwood City Code, the City Commission finds that the UPS expansion detailed in the
application constitutes an "expansion of an existing business;" UPS meets the definition of an
expansion of an existing business with the addition of a minimum of forty-three (43) new
employees and additional part-time jobs, an investment of $16,665,448.50 in tangible property
and a total capital investment of $27,383,505 (building expansion of 55,586 square feet and
tangible property); and the average annual salary of $51,235.00 is 115 percent of the 2018
annual wage of $44,552 for Seminole County according the State of Florida Incentive Average
Wage Requirements effective January 1, 2018.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COMMISSION OF THE CITY OF LONGWOOD,
FLORIDA:
SECTION 1. Recitals. The foregoing recitals are hereby ratified and confirmed as being
true and correct and are hereby made a part of this Ordinance.
SECTION 2. Economic Development Ad Valorem Tax Exemption. Subject to and in
accordance with Section 196.1995, Florida Statutes, Chapter 82, Article VI of the Longwood
Code of Ordinances and the provisions of this Ordinance, the City hereby grants a five (5) year
economic development ad valorem tax exemption to United Parcel Service, Inc., 1050 Bennett
Drive, Longwood, Florida, 32750; Legal Description: Lots 37 to 46 Florida Central Commerce
Park, Plat Book 27, Pages 53 to 58, Public Records of Volusia County, Florida; Tax Parcel ID
Number: 06-21-30-510-0000-0370 ("Property"); and Tangible Property Identification Number:
0130658.
The five (5) year ad valorem tax exemption granted herein shall commence in the first
full ad valorem tax year after the City issues a certificate(s) of occupancy for the structures to
be constructed on the Property to accommodate UPS's business expansion and the Seminole
County Property Appraiser reassesses the Property thereafter (currently estimated to be either
the year 2022 or 2023). The exemption granted herein is for ad valorem taxes on the assessed
value of all added improvements to Property made to UPS's facility for the expansion of its
existing business and of the new increase in all tangible personal property acquired to facilitate
such expansion of UPS's existing business upon the Property. The exemption of ad valorem
taxes on all qualifying improvements to real property and of all qualifying tangible personal
property shall be: (i) 100 percent in years one and two, (ii) 80 percent in year three, (iii) 60
percent in year four, and (iv) 40 percent in year five.
SECTION 3. Codification. This Ordinance is not to be codified.
Ordinance No. 19-2152
Page 2 of 3
SECTION 4. Severability. If any section, subsection, sentence, clause, phrase, word
or provision of this Ordinance is for any reason held invalid or unconstitutional by any
court of competent jurisdiction, whether for substantive, procedural, or any other reason,
such portion shall be deemed a separate, distinct and independent provision, and such
holding shall not affect the validity of the remaining portions of this Ordinance.
SECTION 5. Conflicts. In the event of a conflict or conflicts between this Ordinance and
any other ordinance or provision of law, this Ordinance controls to the extent of the conflict, as
allowable under the law.
SECTION 6. Effective date. This Ordinance shall become effective immediately upon
adoption by the City Commission of the City of Longwood, Florida.
FIRST READING: March 4, 2019.
SECOND READING: March 18, 2019.
ADOPTED this 18th day of March, 2019, by the City Commission of the City of Longwood,
Florida.
CITY COMMISSION
CITY OF LON
n Paris, Mayor
ATTEST:
e ( -, C , FC , City Clerk
Approve as to form and legality for the use and reliance of the City of Longwood, Florida only.
Daniel W. L y, ty Attorney
S:\AKA\CLIENTS\Longwood, City of\General L324-21313\Ad Valorem Tax Abatement\Ordinance for UPS ad valorem tax abatement - 2-21-
19.docx
Ordinance No. 19-2152
Page 3 of 3