Summary Coqui Radio Pharmaceuticals Corp is a private company established to design, construct and operate a medical isotope facility. The facility will supply medical isotopes to the global market and also provide research and development opportunities. Coqui has selected Alachua as the site for this facility and is in the process of putting together its economic incentives package.
Coqui plans to construct a new 100,000 square foot facility with a capital investment of $227 million over the next four (4) years within Alachua's corporate limits. The project will create 164 new jobs over three (3) years, beginning in 2016/17 with an average annual compensation of $70,000.
In an effort to ensure Florida is an attractive business environment, The Florida Department of Economic Opportunity (DEO) offers several incentives to prospective and expanding businesses, such as Coqui. The Qualified Target Industry (QTI) Tax Refund is such a program. If approved for the program, a company may receive refunds on taxes it pays including corporate income tax, sales tax, ad valorem tax, etc. following job creation.
Companies apply to the DEO for consideration in the program. To participate in the QTI program companies must:
(1) Be in a target industry
(2) Demonstrate the refund will make a material difference in locating/expanding in a community
(3) Create at least 10 new full time jobs; if expansion project must increase employment by 10 percent
(4) Pay average annual wage that is at least 115 percent of state, MSA or local average wages
(5) Demonstrate jobs make significant economic contribution to area economy
(6) Receive resolution from local government authorities committing to provide local 20 percent match
Once a company has applied to the DEO for the QTI program, the staff of Enterprise Florida (public-private partnership serving as Florida’s primary organization devoted to statewide economic development) reviews it and makes a recommendation to the Governor’s Director of Economic Opportunity (formerly Office of Tourism, Trade and Economic Development).
Coqui is making application for participation in the QTI program totaling $1,148,000. The total award amount is derived from a formula developed by the DEO that places valuation on each new job created. Coqui qualified for $7,000 per expected new job created ($7,000 x 164 jobs = $1,148,000).
The QTI program requires a 20 percent local government match. The local government match totals $229,600 divided equally between Alachua County and the City of Alachua. The City previously approved the QTI for Coqui Radio Pharmaceuticals via Resolution 14-09 on Feb. 24, 2014. The company requested through DEO a twelve-month extension option for the QTI. As such, the City would also be required to extend the QTI, which is why this item is being brought to the Commission for consideration again. The County will consider the extension in April 2016.
The City's Resolution 16-10 would provide $114,800 in local match, if approved by the City Commission.
The company may only receive refunds on taxes paid; the company must demonstrate job creation and will only receive a refund for actual jobs created. Therefore, the company must have paid taxes to the City of Alachua totaling at least the City's refund amount to receive the refund. The refund amount is based on the job formula developed by the DEO, not on projected taxes paid. The Coqui facility would likely generate a substantial amount of ad valorem taxes to the City above the refund amount. Additionally, it is projected the facility will would generate substantial utility revenue to the City.
The City would be required to remit its local government match annually to the Economic Development Trust Fund administered by the State. The DEO would then issue the refund (including State funds and local government matching funds) directly to Coqui annually.
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