City Land Based Customized Incentive Proposal City Centrum Economic Development Office City of Cape Coral, Florida March 21, 2011

Proposed Project Construction of a two (2) story professional office building – Corporate Headquarters Full Service Advertising Agency in high growth 20,000 square foot building Quality design and look 54 employees immediately Growth to 104 employees within 3 Years $56,000 median wage ($20,000 more than average) $12 million annual sales, all revenue from outside area; 60% of this revenue spent locally In competition with other entities for project

Proposed Location Insert map here

Proposal Grant free land in project area (owned by city) of three (3) acres +/- ½ acre from 10 acre site Estimated current market value $300,000 Current tax received is $ 0. (owned by city) Performance based – tie city incentives to construction and delivery of promised jobs Note: Lee County to offer $250,000 for job creation as additional incentive

Economic Impact Job creation value: 104 jobs at $56,000 = $5,824,000 annually Assuming 15% disposable income = $873,600 annually 54 Immediate – 50 Created 2012 – 2014

Economic Impact Continued Ad Valorem Taxes: $2,000,000 construction cost 300,000 land value $2,300,000 Total City taxes received = $18,331 annually

Economic Impact Continued Payroll $5,824,000 Taxes 18,331 Total: $5,842,331 annually *Over ten years, $58,423,310 ** One time additional $100,000 impact fees expected

Return on Investment (ROI) One year ROI: $ 5,842,331/ City Investment: $300,000 Return on Investment: 19.5 to 1 Ten year ROI: $58,423,310/ City Investment $300,000 Return on Investment: to 1 Years to payback land-taxes only -- $300,000/$18,331 = 16.4 years

Summary Meets Council request for target industries Acts as quality “anchor tenant” for 10 acres across street from City Hall Fits City Centrum Use and Vision Will act as catalyst for others in complex Provide high paying professional jobs Places property back on tax roles No “out of pocket” by City Annual Economic Impact $5,842,331 Additional $100,000 in one time impact fees expected Proposed incentive Performance-Based – need construction of the building and promised jobs

Recommendation Approve land-based incentive of 3 acres (+/- ½ acre) to full service advertising firm valued at approximately $300,000 Final approval contingent upon development agreement to be presented to Council at later date – based on these parameters.