ECONOMIC DEVELOPMENT CORPORATION IS PURSUING $562 MILLION IN PRIVATE CAPITAL INVESTMENTS
On June 25, Florida Governor Ron DeSantis announced a $5.5 million grant to the City of Plant City for the construction of a 2.75-mile loop extension of Henderson Way, allowing access to approximately 310 acres of commercial and light industrial development sites. The project, south of route 92 and east of S. Park Road, includes a potable water distribution system, a water collections system, a reclaimed water distribution system, electrical infrastructure, a two- and three-lane road system, and commercial utilities. The road will begin at the eastern end of Henderson Way, loop through the site, and end at a new intersection at S. Park Road.
The $5.5 million will be combined with $15.2 million in private funding, and $1.9 million in city expenses building water, wastewater, and reclaimed water infrastructure that has already been completed. The project is expected to bring more than 2,600 new jobs to the Plant City area, and support the retention of nearly 1,000 existing jobs.
The Florida Job Growth Grant Fund is an economic development program designed to promote public infrastructure and workforce training across the state. Proposals are reviewed by the Florida Department of Commerce, and are chosen by Governor DeSantis to meet the demands for workforce training or infrastructure needs in communities around the state. The grant can only be awarded to a governmental entity. These funds can’t be used for the exclusive benefit of any single company, or business activity. On February 24, the City Commission voted 5-0 to pass resolution 25-093 authorizing the city manager to enter into a Florida Jobs Growth grant agreement with the Department of Commerce, and enter into an agreement with Lakeside Station, LLC., for a letter of credit or other adequate security. This passed 5-0.
The terms of the agreement will continue until whichever comes first; December 31, 2029, or the return on investment (ROI) goals, private capital investment, and job goals are met, and the City of Plant City requests to close out. The type of agreement is a cost-reimbursement agreement. The State has set it up as a land purchase reimbursement grant for section 4 and section 5 of the loop road.
The time to receive the grant is variable and it could take four to six months. “What we need to show on ROI to close out the agreement and complete the terms of the agreement is to certify a private capital investment of $562,434,500 has been made, at least 2,660 jobs have been created because of the project, and at least 1,000 jobs have been retained because of the project,” Steve Morey, President of the Plant City Economic Development Council said.
The risks for the city are the grant contains a clawback provision that would allow the state to recover grant funds from the city if the target number of new jobs and retained jobs are not met. The amount the state would recover is prorated based on the job numbers achieved compared to the targeted goals. However, the developer is providing a letter of credit, or other adequate security to provide a safety net for the Plant City government, in case the overall project does not meet the expected goals. The economic impact of the Lakeside Logistics Development is expected to generate $960 million in private capital investments in land, buildings, machinery, and equipment. The project will allow for the construction of 5.4 million square feet of industrial and commercial space
“I just don’t see any downside to this,” Mayor Nate Kilton said during the City Commission meeting. “Especially when we are indemnified by the developer with the letter of credit. What we are going to lose is a little bit of interest in the time we are floating the loan…the payback on that is going to be huge.” This additional cost to the city will be approximately $75,000 in lost interest.
Occupancy of industrial and warehouse space in Plant City is currently at about 90 percent. “This is the sweet spot where you want to be because it gives enough flexibility for existing tenants to expand and contract, and have something to bring in new tenants,” Morey commented.
