SUBJECT:
Title
Request Approval to Terminate EIP/EDFIG Agreement Between Mestizo Foods, LLC and City of Ocala, and Rescission of County’s Support of Mestizo in the State of Florida’s Qualified Target Industry Tax Refund Program (QTI) (Budget Impact - Savings of $211,625)
Body
|
INITIATOR: |
DEPARTMENT: |
|
Jeannie Rickman, Assistant County Administrator |
Administration |
DESCRIPTION/BACKGROUND:
Mestizo Foods, LLC, a manufacturer and distributor of specialty and private label snack foods within the City of Ocala’s Enterprise Zone, entered into an EIP/EDFIG Grant Agreement on June 6, 2017 and its first amendment thereto on or about January 6, 2020 (collectively the “Agreement”). Additionally, the agreement provides a ten percent (10%) local financial match to the State of Florida’s Qualified Target Industry (QTI) Tax Refund Program contingent upon, and in addition to, the Company receiving QTI tax refunds.
In February, 2021, Mestizo breached the agreement by filing an annual report indicating a third party, Pulley Salty Snacks, LLC, had performed the grant requirements for the fourth quarter of calendar year 2020. An investigation revealed that on or about December 10, 2020 Mestizo breached the EDFIG agreement by selling its assets, including real property that was the subject of the agreement, to Pulley Salty Snacks, LLC.
Marion County issued a letter dated April 20, 2021 placing Mestizo on notice of the breach, and providing a thirty (30) day opportunity to cure; no response was provided by the company. Additionally, the Department of Economic Opportunity (DEO) contacted County staff via email dated June 16, 2021 indicating the City of Ocala had withdrawn their local financial support and requested if the County planned to continue its support of Mestizo in the State’s QTI Tax Refund Program.
As indicated above, Mestizo sold its assets, and there is no EDFIG agreement between Marion County and Pulley Salty Snacks, LLC. With concurrence by the City of Ocala, staff is recommending the termination of the EDFIG Agreement with Mestizo, per the attached proposed Resolution, and rescind the County’s support of Mestizo in the State’s Qualified Target Industry Tax Refund Program.
BUDGET/IMPACT:
Savings of $211,625
RECOMMENDED ACTION:
Recommended action
Motion to approve and execute Resolution for termination of the EDFIG Agreement with Mestizo Foods, LLC, rescind support for Mestizo Foods, LLC in the State of Florida’s Qualified Target Industry Tax Refund Program (QTI), and authorize Chair to execute letters of notification.
end