RESO Making Certain Findings, & Apv & Auth the Execution of an Economic Dev Agrmt btwn the City & Proj Underground (Company), to Support the Expansion of an Existing Manufacturing Facility & Related Improvements in Jax, FL (Project); Auth a 5-Yr Recapture Enhanced Value (REV) Grant Not to Exceed $275,000; Apv & Auth the Execution of Docs by the Mayor, or Her Desig, & Corp Sec; Auth Appvl of Technical Amdts by the Exec Director of the OED; Prov for Oversight by the OED; Prov a Deadline for the Company to Execute the Agrmt; Affirming the Proj’s Compliance with the Public Investment Policy Adopted by Ord 2024-286-E, as Amend (Sawyer) (Req of Mayor) 1/13/26 CO Introduced: R, F 1/20/26 R Amend/Approve 7-0 1/21/26 F Amend/Approve 6-0 1/27/26 CO Amend/Approve 17-0

This resolution approves an Economic Development Agreement between the City of Jacksonville and Project Underground, a manufacturing company, to support the expansion of its existing facility in Jacksonville, specifically located in a Level 1 Economically Distressed Area. The project involves a significant capital investment of $10,000,000 by the company.

Key Provisions:

• REV Grant: Authorizes a 5-year Recapture Enhanced Value (REV) Grant not to exceed $275,000. This grant is 50% of the new ad valorem taxes generated by the project's tangible personal property above a base year value.
• Job Creation & Retention: Project Underground commits to creating and maintaining 80 new Full-Time Equivalent (FTE) jobs by December 31, 2028, with an average annual salary of at least $39,000. Additionally, the company will retain 146 existing FTE jobs in Duval County.
• Timeline: Construction must commence by December 31, 2026, and improvements must be substantially completed by December 31, 2028.
• Local Business Participation: The company commits to contracting at least $55,000 with Jacksonville Small and Emerging Businesses (JSEBs).
• Compliance & Oversight: The project affirms compliance with the City's Public Investment Policy and will be overseen by the Office of Economic Development (OED). The Legislative Fact Sheet indicates a 3.8 to 1 Return on Investment (ROI) for the City.

Default Conditions: The REV Grant can be proportionally reduced or terminated and repaid if the company fails to meet capital investment, job creation (specifically, if less than 64 new jobs are created while retaining existing jobs), or reporting requirements.

This agreement uses public funds ($275,000 REV Grant) to incentivize a manufacturing company to expand locally, aiming to create 80 new jobs and retain 146 existing jobs in Jacksonville. This supports economic growth and expands the local tax base, potentially leading to more city services without direct tax increases.

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