The approval process took only a few minutes, but the potential ramifications of the Plant City Commission’s actions this week should have lasting impacts in the community.
City commissioners approved May 27, an ordinance that grants Toufayan Bakeries ad valorem tax exemption as an incentive for the company to build an $8.9 million expansion at its Plant City facilities. The company also has requested the city pay the law enforcement impact fees for the proposed expansion.
“Sometimes, things go through very simply, and there is a lot of work that went behind it — several years — to make something a reality,” said Vice Mayor Rick Lott. “I just want to compliment the staff and the commission on the ordinance and resolution with Toufayan Bakeries.
“We were competing with six other cities, and they wanted to be here,” he said. “We had a can-do attitude, and tonight, we did what was right. It is bringing more good jobs to our community. … We really put a good foot forward, and they saw the desire in our community for them to build an additional plant here.”
Toufayan’s expansion plans include adding a 149,000-square-foot building to its Plant City facility, 2615 E. U.S. 92. Eventually, the new building will house nearly $20 million in equipment, including assembly lines for bagels, tortillas, flatbreads and cookies. The company expects to add 80 new jobs to its Plant City operation; currently, it employs 225.
Construction should begin in June.
Under the ad valorem tax exemption, Toufayan will qualify for Tier I benefits, which means its facility will be assessed at 50% of the added assessed value for five years. To qualify for these benefits, Toufayan is required to maintain at least 10 full-time-equivalent employees and a capital investment in the expansion exceeding $200,000 per each of the 10 qualifying employees.
Interim City Manager David Sollenberger reported to the commission that, even with the exemption, the fiscal impact will be positive.
“Although the Property Appraiser’s office states that the ‘estimated revenue loss’ to the city for the first fiscal year in which the exemption is anticipated is $41,969.73, this loss assumes the increased valuation after completion of the construction,” he wrote in his summary. “There will actually be a net benefit to the city, (because) the city would receive property-tax revenue for 50% of the added improvement to the real property during that five-year period. After the period expires, the city would receive 100% of the property taxes, based on the increased valuation.”
The anticipated law enforcement impact fees, which will be paid from the city’s general revenue fund, are $30,612.05.
Commissioner Bill Dodson said he is pleased with the partnership between the city and Toufayan.
“This shows that they have faith in us, and we have faith in them,” he said.
Contact Michael Eng at meng@plantcityobserver.com.
IN OTHER NEWS
• Plant City High School valedictorian Dhara Patel received a proclamation from Mayor Mary Thomas Mathis. Patel will graduate with a 10.03 GPA — the highest in Hillsborough County history. She already has earned her associate’s degree from Hillsborough Community College. Following high school, she will continue her studies at the University of Florida and major in microbiology and minor in chemistry. She wants to become an orthodontist.
• The city set a public hearing date of June 9 for the rezoning of 4207 W. U.S. 92 from Hillsborough RCS-4 to Plant City R-1A. The R-1A designation allows for single-family homes, parks, religious institutions and schools.
• The city spent $23,359.50 to purchase replacement electronic communication components for the Water Reclamation Facility’s Supervisory Control and Data Acquisition System. Interim City Manager David Sollenberger called it “a classic example of designed obsolescence.”
• Don Porter, of the International Softball Federation, presented the ISF’s plans to build its Hall of Fame and Museum.