DaVita RX Economic Development Ad Valorem Tax Exemption Ordinance Public Hearing: Orange County Board of County Commissioners January 28, 2014

 Exemption authorized under Fla. Constitution  Section Fla. Stat. after voter approval  January 2012 – referendum approved  February 2012 – BCC Ordinance Background

10+ Jobs: New full-time jobs with average wages higher than area average in manufacturing or “target industry business” 25+ Jobs:Creating 25 or more new full-time jobs with more than 50% sales outside of Florida; or 50+ Jobs:Office space established by a newly domiciled business housing 50 or more full-time employees separate from any other operation; or Enterprise/ Brownfield:Any business in Enterprise zone or Brownfield area that first begins operation on site separate from other commercial or industrial operation owned by the same business Eligible New Businesses

10+ jobs: New full-time jobs with wages higher than area average in manufacturing or “Target industry business” 25 +Jobs:New full time jobs with more than 50% sales outside of Fla. and net increase in employment/output/sales of at least 10%; or Enterprise/ Brownfield:increases operations on site located within the same zone co-located with a commercial or industrial operation owned by the same business Eligible Expansions of Existing Business

 Added Improvements to Real Property not already on tax roll  Tangible Personal Property not already on tax roll  Land not eligible Eligible Property

Exemption applies to:  Ad valorem taxes levied countywide – ( mills) But not:  MSTU millage  City, school, or special district millage  Property taxes authorized by referendum Maximum total forgone revenues of $2,000,000  Or higher amount approved by supermajority Applicable Taxes

 Office of Economic Development  Property Appraiser  Input from any affected CRA  Additional information may be required  Exemption decision at sole & absolute discretion of the Board – no entitlement to exemption Application Process

Exemption Ordinance  Public Hearing  Grant of Exemption conditioned upon signing an agreement  Annual reporting required  Monitoring:  Florida new hire form  UCT-6  IRS Form 941

Property Tax Exemption Board Guidelines *Lowest number is determining factor LevelYearsAbatement % Jobs (Manufactu ring or QTI) Jobs (Business that sells more than 50% of goods outside of MSA) Jobs (New Business owning new office space) Capital InvesmentAvg. Wage Brownfield or Enterprise Zone Avg. Wage 1550%102550$200,000115%100% 2750% $500,000150%100% 3775% $1,000,000150%100% 41075% $10,000,000200%100% $25,000,000200%100% % $50,000,000200%100%

 DaVita RX, LLC  Specialty Pharma  186 New Jobs  115% of the Average Wage in Orange County  $11,750,000 Capital lnvestment  Job Functions Include; Clinical, Management, Engineering, Production, Administration and Customer Service  QTI Adjustment – October, 2012 Project Overview

Property Tax Exemption Board Guidelines *Lowest number is determining factor LevelYearsAbatement % Jobs (Manufactu ring or QTI) Jobs (Business that sells more than 50% of goods outside of MSA) Jobs (New Business owning new office space) Capital InvesmentAvg. Wage Brownfield or Enterprise Zone Avg. Wage 1550%102550$200,000115%100% 2750% $500,000150%100% 3775% $1,000,000150%100% 41075% $10,000,000200%100% $25,000,000200%100% % $50,000,000200%100%

50% Exemption for 5 Years  Total Revenue Available to County for Current Fiscal Year - $374,409,907  Estimate of Revenue Lost During Current Fiscal Year if Exemption is Granted - $25,679  Estimate of Taxable Value Lost - $5,790,431 Recommendation

Requested Action  Approval of an Ordinance of Orange County, FL relating to taxation; granting an economic development exemption from certain ad valorem taxation for DaVita RX, LLC  Approval of Economic Development Ad Valorem Tax Exemption Agreement between Orange County, FL and DaVita RX, LLC

DaVita RX Economic Development Ad Valorem Tax Exemption Ordinance Public Hearing: Orange County Board of County Commissioners January 28, 2014