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Introduced by Council Member Holt:
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ORDINANCE 2009-940
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AN ORDINANCE GRANTING AN EXEMPTION FOR GERDAU
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AMERISTEEL
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SERVICE
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FIVE YEARS; PROVIDING AN EFFECTIVE DATE.
FROM
TAX
ON
THE
PAYMENT
ELECTRICITY
OF
FOR
THE
A
PUBLIC
PERIOD
OF
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10
WHEREAS,
Gerdau
Ameristeel
was
established
in
west
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Jacksonville in 1976, and invested $90 million in expanding its
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Jacksonville facilities between 2006 and 2009; and
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WHEREAS, Gerdau Ameristeel was forced to reduce its staff by
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31 workers between 2008 and 2009 to 308 because production costs in
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Jacksonville have become more expensive than in other areas of the
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United
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Jacksonville plant to their factories in Tennessee and New Jersey
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(in 2009 Gerdau Ameristeel employee's average wage was $86,750);
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and
States
and
work
projects
have
been
moved
from
their
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WHEREAS, Gerdau Ameristeel has the opportunity to provide the
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steel for the future expansion of the Panama Canal, which would
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bring millions of dollars to the Jacksonville area; and
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WHEREAS,
Gerdau
Ameristeel's
business
creates
hundreds
of
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additional local jobs indirectly, in shipping businesses, by road,
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rail
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creating a direct impact of $79,415,612 in 2008, but substantially
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less in 2009, thus far because of transferred projects; and
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and
sea,
as
well
as
with
local
electrical
contractors,
WHEREAS, Gerdau Ameristeel will pay in excess of $1.3 million
in real estate and tangible property taxes this year; and
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WHEREAS, the City of Jacksonville has taken into account and
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given consideration to the long-term public interests and public
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interest benefits that would be achieved if it were to grant an
1
exemption
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otherwise required by law; and
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to
Gerdau
Ameristeel
from
the
Public
Service
Tax
WHEREAS, Section 166.231, Florida Statutes, provides that a
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municipality
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under
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Industry Group Numbers from the payment of the public service tax;
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and
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may
certain
exempt
North
certain
industries
American
Industry
which
are
classified
Classification
System
WHEREAS, pursuant to this statute a municipality may establish
by
ordinance
the
requirements
Gerdau
Ameristeel
for
qualifications
for
this
exemption; and
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WHEREAS,
has
requested
that
the
Council
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enact an ordinance granting it an exemption from the public service
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tax for a period of five years; now therefore,
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BE IT ORDAINED by the Council of the City of Jacksonville:
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Section 1.
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Findings.
It
is
hereby
ascertained,
determined, found and declared as follows:
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(a)
The recitals set forth herein are true and correct.
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(b)
Pursuant
to
the
authority
granted
to
the
City
of
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Jacksonville (the “City”) by Section 166.231, Florida Statutes, the
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Council hereby finds that Gerdau Ameristeel (the “Company”) has
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been
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System
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qualifies as an industry that is eligible for an exemption from the
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levy of the public service tax.
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designated
(“NAICS”)
(c)
with
the
5-digit
North
American
industry
Industry
number
33111
Classification
and
as
such
The authorizations provided by this Ordinance are for
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public uses and purposes for which the City may use its powers as a
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municipality and as a political subdivision of the State of Florida
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and
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interest for the provisions herein enacted is hereby declared as a
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matter of legislative determination.
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may
(d)
expend
public
funds,
and
the
necessity
in
the
public
This Ordinance is adopted pursuant to the provisions of
Chapter 163, 166 and Chapter 125, Florida Statutes, as amended, the
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City’s Charter, and other applicable provisions of law.
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Section 2.
Waiver of Public Service Tax.
The Council, as
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authorized by Section 166.231, Florida Statutes, hereby grants an
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exemption from the levy and payment of the public service tax on
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electricity to the Company for a period of five years commencing
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upon
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thereafter.
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approval
of
Section 3.
this
ordinance,
and
terminating
five
years
Termination of Exemption. Section 166.231(6),
Florida Statutes, requires that any municipality granting a public
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service
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companies in such municipality’s jurisdiction having the same 5-
12
digit
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Council
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jurisdiction
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Number
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otherwise commences operations in the City under NAICS Industry
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Code 33111 (and thereby creates an obligation on the City to grant
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a public service tax exemption to such new company), the City shall
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have the right, upon notice to the Company, to terminate any public
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service
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eliminate any obligation by the City to grant the public service
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tax exemption to the Company and any third party.
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tax
NAICS
exemption
Industry
that
the
that
33111,
tax
Section
but
thereunder
Number.
Company
is
It
the
currently
in
exemption
4.
is
the
Effective
is
such
the
only
any
new
hereby
Date.
in
This
exemption
to
understanding
company
classified
event
granted
issue
in
under
such
the
NAICS
company
a
Ordinance
of
all
the
City’s
Industry
re-locates
manner
shall
as
or
to
become
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effective upon signature by the Mayor or upon becoming effective
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without the Mayor’s signature.
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Form Approved:
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/s/
Steven E. Rohan
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Office of General Counsel
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Legislation prepared by:
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G:\SHARED\LEGIS.CC\2009\ord\Holt.Gerdeau Ameristeel.tax exemption v04.doc
Steven E. Rohan
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