Presented to City Council PROJECT CONTINENTAL Presented to City Council September 16, 2008

BACKGROUND Tom Cooley, Executive Director of Enterprise Flagler, introduced the City to a business consultant who had been hired by a local business Local business recently acquired by another company - business consultant asked to help consolidate their operations from multiple states to one location “Project Continental” – company has a strong confidentiality requirement

THE GOOD NEWS Project Continental represents one of the leading employers in Palm Coast The company is growing very rapidly and has immediate need to expand

THE BAD NEWS Initial search for immediate expansion opportunities was discouraging Corporation’s facilities, located in other states, have available space

THE CHALLENGE/ OPPORTUNITY Palm Coast on short list of several locations A primary consideration – immediate availability of adequate space Additional intermediate expansion capabilities

COMPANY COMMITMENTS Project Continental will maintain the current employment level – 1000 jobs The employment base in Palm Coast will be increased by 700 jobs New investment capital of $20 million

CITY INCENTIVES Lease City Hall for $240,000 annually for three years with an option to purchase at $3 million Vacate City Hall by November 1, 2008 City will mitigate wetland Expedite permitting Unlimited use of municipal Fiber Optic usage at no cost to Project Continental for two years

CITY INCENTIVES (continued) Ad Valorem Tax Abatement with an estimated value of $406,000 over ten years Real property construction - 100% Ad Valorem Tax Abatement for five years, 50% tax abatement for five additional years Personal Property 1-3 years 75% abatement 4-6 years 50% abatement 7-10 years 25% abatement

OTHER INCENTIVES State of Florida considering grant incentives Flagler County will consider additional economic development incentives

WHAT DOES PROJECT CONTINENTAL MEAN TO THE COMMUNITY? Based on Fishkind & Associates, Inc. Economic Impact Analysis

WHAT IS AT RISK? 1,000 primary jobs at Project Continental 466 indirect jobs $102.7 million of annual local economic activity 15-20% unemployment Additional downturn in every aspect of our local economy

WHAT DO WE STAND TO MAINTAIN/GAIN? 1,700 primary jobs 793 indirect jobs $174.6 million of annual local economic activity $20 million (minimum) of capital investment 362 construction and associated jobs with $29.4 million economic activity

QUESTIONS/ COMMENTS