HomeMy WebLinkAbout2010 07 26 Regular 602 Authorize Conditional Letter of Commitment-Seminole County,UCF,Florida High Tech Corrdor Council - State of Fl to relocate SEMATECH to W S COMMISSION AGENDA
Consent
ITEM 602 Informational
Public Hearing
Regular X
July 26, 2010 MGR. /DEPT.
Regular Meeting orization
REQUEST: The City Manager is requesting the City Commission authorize the Mayor to
provide a conditional letter of commitment outlining the City's support and partnership with
Seminole County, University of Central Florida, Florida High Tech Corridor Council and the
State of Florida to successfully relocate SEMATECH to Winter Springs. City participation is
conditional upon other agencies participation and contributions.
SYNOPSIS:
The City's economic development efforts during the last year have been well documented. Discussions
with potential targeted industries have ensued with Seminole County and the Metro EDC. As a result,
an opportunity arose with a potential targeted industry called SEMATECH. The preliminary support
letter conditionally shows the City's intent to partner with Seminole County to proffer an incentive
package to SEMATECH worth $15M.
CONSIDERATIONS:
This conditional support letter demonstrates the City of Winter Springs's earnest commitment to work
with Seminole County to identify a formal partnership scenario contingent upon satisfaction of
precedent activities by other participating agencies and the SEMATECH Corporation. This project has
been outlined as an industry that could potentially create more than 2 million high - paying jobs over the
next decade. By getting in on the ground floor of what could be the transformative push needed to turn
the nation to clean energy, the Central Florida region stands to immediately benefit from more than 300
direct research and manufacturing jobs. A five -year economic impact analysis from Austin, Texas -based
Angelou Economics estimates that over 4,200 permanent jobs could be created around the labs. These
findings are supported by additional analysis conducted by Real Estate Research Consultants.
FISCAL IMPACT:
The total potential award to be offered by Seminole County and the City of Winter Springs is $15M.
This pledge and commitment is conditional on the precedent agency participation outlined in the support
letter (attached) and the availability of City funds. Prior to a formal City Commission determination to
commit City of Winter Springs funds for a portion of this $15M total, a specific detailed City
participation schedule and specific fiscal impact analysis based on that schedule will be presented to the
City Commission upon the satisfaction of the aforementioned precedent activities of participating
agencies and corporate decisions.
The City is also researching potential costs to provide infrastructure to the project site and adjacent
parcels. Infrastructure provided to adjacent parcels is intended to stimulate additional development from
support companies. Anticipated infrastructure cost estimates range from $5M -9M. Infrastructure costs
for Phase I of the project, which includes the SEMATECH site, is estimated to be approximately $5.6 M
of the above referenced $9M. The projected Phase I costs include off -site water and sewer improvement
and extensions. The City is currently coordinating with ECFRPC to pursue an EDA Grant to offset
these anticipated infrastructure costs.
COMMUNICATION EFFORTS:
The City Manager and the City's consultant have been in constant contact with County, Metro EDC and
Project Transform representatives.
RECOMMENDATION:
The City Manager recommends that the City Commission grant approval for the Mayor to formally
submit the attached commitment and partnership letter to the University of Central Florida.
ATTACHMENTS:
A - City of Winter Springs Commitment Letter
ATTACHMENT A
July 27, 2010
Dr. John C. Hitt
President
University of Central Florida
4000 Central Florida Boulevard
Millican Hall 308
Orlando, FL 32816 -0002
Re: SEMATECH
Dear Dr. Hitt:
This letter is to confirm action taken at the July 26, 2010 City of Winter Springs City Commission meeting
with regard to the above - referenced project ( "SEMATECH "). The City Commission voted unanimously in
the affirmative to support the Project through a partnership with Seminole County Board of County
Commissioners to provide a total local funding contribution of fifteen million dollars ($15,000,000). The
City Commission's support and funding commitment are conditioned upon receipt of additional funding
substantially consistent with that which is represented in the attached Exhibit "A ". The local funding
contribution is intended to underwrite the costs to construct an approximately one hundred thousand
(100,000) square foot headquarters and research facility to be owned by UCF and occupied by
Sematech. The support of the City of Winter Springs is predicated on the above referenced participation
by the Seminole County Board of County Commissioners and the understanding and expectation that
total value of the Project is in the three hundred million dollar ($300,000,000) range, that the Project
will create an initial 300 jobs with projections of 4,000+ jobs over a five year period and that the
(100,000 sq. ft.) project headquarters and research facility will be located within the Winter Springs City
limits.
Additionally, the City of Winter Springs is committed, in partnership with Seminole County, to the
pursuit of funding from the United States Economic Development Administration to offset costs
associated with the construction and delivery of the infrastructure and services required to serve the
Project site where the headquarters and research facility will be located.
The City of Winter Springs City Commission, in partnership with the Seminole County Board of County
Commissioners, is committed in its support of the University of Central Florida's efforts to make
SEMATECH a reality in Central Florida.
Sincerely,
John F. Bush, Mayor
City of Winter Springs
Cc: Dr. M.J. Soileau, UCF