1. SEA RAY BOATS, FLAGLER MARINE CENTER ECONOMIC DEVELOPMENT INCENTIVES

2. SEA RAY BACKGROUND/HISTORY Economic Development Incentive program was approved in 2007 Partners – State of Florida, Flagler County, City of Palm Coast, Sea Ray Boats, Neighboring developers Program included Extension of Roberts Road Extension of Water & Sewer lines Capital improvements to the Sea Ray Manufacturing Plant Funding Source Roberts Road Improvements – State/County Water & Sewer services – State/County Plant improvements – Sea Ray and surrounding developments

3. CURRENT STATUS Roberts Road extension under construction – completion: March 2009 Water & Sewer extensions - complete Plant improvements – partially completed, on hold Surrounding developers commitment - $3M $1.8M - already paid $1.2M - pending sale of residential lots

4. PROPOSAL City advance the remaining $1.2M capital funding to Sea Ray with “Claw back” City also purchases approximately 22 acres on Roberts Road, from LandMar, at a discounted price of $1.25M 22 Acres to be marketed for future industrial/business development All properties will be annexed Current assessed value $14.5M = $43K annual City tax revenue

5. BENEFITS We hear you community – “the City should be doing more to save and create good paying jobs” Sea Ray stays open City has a tangible asset – 22 acres City has property to offer as an incentive/ spec building Valuable property incorporated into City limits

6. CITY CHALLENGE/RISK Use of reserve funds Up to $4M No guarantee Sea Ray will stay open Business/industrial park may take years to occupy

7. COMMUNITY RISK – ECONOMIC IMPACT Direct jobs 200-600 Indirect jobs 100-300 Total jobs 300-900 $189.8M local economic impact (2005)

8. FLAGLER MARINA BACKGROUND/HISTORY PUD approved by Flagler County 89 acres 80 water boat slips 200 enclosed dry boat slips Up to 160,000 square feet commercial/retail space Permit to extend canal west of Sea Ray plant has been issued Currently no incentive to annex Annexation necessary to complete the Sea Ray/LandMar annexation area *Numbers are approximate & unconfirmed

9. PROPOSAL $125,000 infrastructure assistance grant (reimbursement) for Water & Sewer Entire property must be annexed into the City

10. BENEFITS Capital investment Jobs Second public fueling/pumping facility for local boaters and a destination recreation marina

11. DISCUSSION Questions Comments