The City received an application for an Ad Valorem Tax (AVT) Abatement from Rogue Valley Microdevices, Inc on December 5, 2022. Rogue Valley Microdevices, Inc. is a semiconductor and related devices manufacturing company based in Oregon. The company is interested in acquiring and refurbishing an existing 50,000 SF facility located at 2301 Commerce Park Drive NE, Palm Bay, FL 32905. The company anticipates investing approximately $25,000,000 in new capital expenditures. The company indicates its plans to create 30 new jobs over three (3) years with an average wage of $59,900. The company anticipates investing approximately $25,000,000 in new capital expenditures. The estimated job creation timeline for the project is as follows:

Total:    30

Based on the three-year projections, Rogue Valley is eligible for a six-year abatement, starting at 60 percent and gradually decreasing over the term.

At the January 19, 2023 Regular Council Meeting, the applicant presented its plans for job creation, average wages over a five-year period and requested Council's consideration of an increase abatement. City Council approved an ordinance, first reading, providing an Ad Valorem Tax Abatement for Rogue Valley Microdevices, Inc. for seven years, starting at 70% and gradually decreasing over the 7-year period as follows:

Years 1 - 4: 70%

Year 5: 60%

Year 6: 50%

Year 7: 40%

On January 26, 2023, the City received a revised Jobs Worksheet from the applicant which included a new job commitment of 75 jobs over a five-year period with an average annual wage of $65,267. On January 30, 2023, the City received a revised Economic Impact Analysis (EIA) conducted by the Economic Development Commission of Florida's Space Coast (EDC), providing the total impact of this project, to include the direct, indirect, and induced jobs, wages and gross domestic product. Based on the revised EIA, the company is eligible for additional points on the AVT Program scoring sheet.

The revised estimated job creation timeline for the project is as follows:

Total:    75

The Brevard County Property Appraiser conducted the required analysis as required by Chapter 196.1995(9), Florida Statutes, to include the estimated total revenue available to the City for the current fiscal year and the estimated revenue which would be lost to the City during the current fiscal year if the exemption applied for were granted.

The ad valorem tax abatement program is an economic-development tool that provides performance-based incentives to encourage new construction, capital investment, and job creation. If the company does not perform, they would not be eligible to receive an abatement of their ad valorem property taxes.