Ad Valorem Tax Abatement

Program Guidelines

Who is eligible? New business locating/relocating to Palm Bay and expansion of business already located in Palm Bay that meet the following criteria:

• Key Florida Industries: Cleantech, Life Sciences, Information Technology, Aviation/Aerospace, Homeland Security/Defense, Financial/Professional Services, Manufacturing, Emerging Technologies, Corporate Headquarters, excluding retail.
• New or expanding business who make a positive contribution to the economy of Palm Bay in terms of new jobs and improvements to real and personal property.
• The applicant must be a person, firm, partnership, corporation, or other business organization or entity, with the object of private or public gain, benefit, or advantage, either direct or indirect.

Definition of New Business: as defined in Section 196.012(15), Florida Statutes must meet the following criteria:

• Any business establishing ten (10) or more jobs to employ ten (10) or more full time employees in this State, which manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a fixed location and which comprises an industrial or manufacturing plant; or
• Any business establishing twenty-five (25) or more jobs to employ twenty-five (25) or more full-time employees in this State, whose sales factor, as defined by Section 220.15 (5), Florida Statutes, for the facility with respect to which it requests an economic development ad valorem tax exemption is less than 0.50 for each year the exemption is claimed; or
• An office space in this State owned and used by a corporation newly domiciled in this state; provided such office space houses fifty (50) or more full-time employees of such corporation; or
• A business located in an Enterprise Zone (pursuant to Section 290.0065, Florida Statutes).
• Any new business must first begin operation on a site clearly separate from any other commercial or industrial operation owned by the same business.

Definition of Expansion: as defined in Section 196.012(16), Florida Statutes must meet the following criteria:

• A business establishing ten (10) or more jobs to employ ten (10) or more full time employees in this State, which manufactures, processes, compounds, fabricates, or produces for sale items of tangible personal property at a fixed location and which comprises an industrial or manufacturing plant; or
• Any business establishing twenty-five (25) or more jobs to employ twenty-five (25) or more full time employees in this State, whose sales factor, as defined by Section 220.15(5), Florida Statutes, for the facility with respect to which it requests an economic development ad valorem tax exemption is less than .050 for each year the exemption is claimed; or
• Any business located in an Enterprise Zone (pursuant to Section 290.0065, Florida Statues).

In 1994, the City of Palm Bay completed a “Finding of Necessity” study leading to the creation of the Bayfront Community Redevelopment Agency (Agency) and identified the boundaries of the Bayfront Community Redevelopment District (District). The City later adopted Ordinance 2000-39, officially creating the Agency, establishing the District boundaries, and provided for the appointment of members to serve as the Board of Commissioners, creation of by-laws, outlined duties and responsibilities of the commissioners, and provided for the use of tax increment financing for the Agency. Additional ordinances can be found in Chapter 52 of the Palm Bay Code of Ordinances.

Visit Bayfront CRA Website

PROGRAM DESCRIPTION

The Building Permit Fee Reduction Program is a performance-based economic development incentive program to encourage new commercial and industrial development within the city limits of Palm Bay (per Resolution 2023-01).

Businesses retaining or creating a minimum of ten (10) full-time jobs and constructs a new building, expands its existing building footprint, or makes interior renovations to an existing structure to accommodate business growth, is eligible for a seventy-five percent (75%) reduction of the building permit fee retained by the City of Palm Bay.

Building Permit Fee Reduction Application

ELIGIBLE PROPERTIES

Businesses located in the Highway Commercial District (HC), Light Industrial and Warehousing District (LI), and Heavy Industrial District (HI) zoning districts as defined in Chapter 185 of the Land Development Code, Palm Bay Code of Ordinances.

PROGRAM GUIDELINES

• Eligible businesses must employ a minimum of ten (10) full-time jobs.
• Eligible projects include businesses constructing new buildings or building expansions for any commercial or industrial use business, as provided in Sections 185.044, Highway Commercial District; 185.045, Light Industrial and Warehousing District; and 185.046, Heavy Industrial District, of the Code of Ordinances of the City of Palm Bay.
• An eligible applicant may be a property owner/operator or a tenant with an owner's affidavit and a copy of the lease agreement.
• Applicants will be deemed eligible for the building permit fee reduction by the Chief Building Official.

Program Description

The Commercial Property Enhancement Program (CPEP) is a performance-based reimbursement grant awarded to applicants to encourage private investment and improvements to the exterior frontage of commercial properties located within the city limits of Palm Bay. The CPEP is intended to enhance and improve the street view of the built environment from the public perspective, making Palm Bay more competitive in attracting new business.

The City of Palm Bay’s Community & Economic Development Department will administer the Program and determine the eligibility of applicants. A Commercial Enhancement Committee will review applications and make recommendations regarding proposed enhancements and the award of funding. The Program is subject to funding availability and is awarded on a first-come, first-ready basis. In no case may an applicant be reimbursed for improvements previously undertaken prior to grant approval. Grant funds will be disbursed on a reimbursement basis upon proof of receipts, proof of payment, and final inspection by the City of Palm Bay’s Building Department (if required).

CPEP Application

Eligible Properties

Commercial properties located within the City of Palm Bay limits; and in accordance with the Program Guidelines set forth below:

PROGRAM GUIDELINES

Grant Criteria

• Shall not be a residentially zoned property, home-based, or non-profit business.
• Business and/or property owner shall be in good standing and have all required licenses, including a City of Palm Bay Business Tax Receipt.
• New construction is ineligible.
• Not for Profits are ineligible unless engaged in a commercial lease with a for-profit business.
• Applications for grant funds may be made by: (1) the owner of a building; or (2) the lessee of a building, in which case the lessee must provide a copy of a valid lease agreement and an affidavit of the building owner with their consent to the program. Upon City Council approval, the owner of the building will be required to sign the Grant Agreement and Restrictive Covenants (to be filed with Brevard County Clerk of Courts).
• Applicants must obtain, and submit with their application, written estimates/quotes/bids from a minimum of three (3) different contractors. Estimates shall outline all improvements to the subject property in line item form, providing the estimated cost per item. City staff will confirm the validity of the quotes with the contractor. Any taxes should be a separate line item.
• All contracts for enhancement work must be in compliance with all applicable federal, state, and City of Palm Bay Code of Ordinances. The applicant will be responsible for ensuring compliance with these requirements when hiring a contractor to perform the work.
• If an eligible property has current code violations, the violations must be brought into compliance as part of the enhancements, prior to reimbursement of funds.
• Any existing City liens must be satisfied prior to reimbursement of funds.
• Applicants shall apply for all required permits within sixty (60) days of award.
• Applicants shall be awarded a maximum of one (1) grant per address.
  

Eligible Enhancements

(Note: All enhancements must be substantially visible from an eligible roadway)

• Roof repair/replacement
• Installation of exterior permanent fixtures to include decorative lighting, fencing, and architectural features
• Exterior facade restoration
• Exterior painting
• Replacement of windows/glazing and doors
• Signage
• Awnings or canopies over doors, windows, or walkways
• Landscaping enhancements
• Asphalt removal/replacement and repaving/restriping
• Irrigation system and installation
• Dumpster enclosures
  

FUNDING

Grantee Contribution

The Program requires a minimum $10,000 investment by the Grantee.

City Contribution

The City shall not reimburse for any amount greater than $10,000, or otherwise the amount approved by City Council if less than the maximum award. Grant funds are provided on a reimbursement-basis only and upon completion and inspection of work. The applicant shall be required to provide proof of payment by the applicant to the contractor. The City shall not reimburse for taxes due.

RENOVATION & CONSTRUCTION ASSISTANCE

1. The City will assist the applicant(s) in identifying eligible costs toward the reimbursement of labor, materials, and equipment, associated with improvements to the property.

2. The applicant(s) must comply with all requirements of the City of Palm Bay for obtaining permits and approvals of the work, including building permits, sign permits, certificates of occupancy, certificate of completion, and any other related approvals and permits. Work of any kind started or performed without proper permits, sealed plans (any structural improvements requiring sealed plans), and specifications, if applicable, will not be eligible for program assistance. The applicant is responsible for ensuring these requirements are met when hiring contractors to perform the work.
3. Construction must be completed within twelve (12) months of the date of the Grant Agreement. One (1) extension may be granted by the Community and Economic Development Director upon written valid request by the grantee.
4. All construction must be inspected by the City’s Building Department (if required) and proof of issuance of final inspection, certificate of completion (CO), or similar instrument.

DOCUMENTS TO BE PROVIDED

1. Proof of ownership of the property. (If owned by corporation or company, provide copy of articles of incorporation or articles of organization and list of corporate officers and members).Lease Agreements for any building tenants or occupants on the property and affected by the improvements.
2. If the applicant is a tenant or lessee of the property, property owner’s consent to the enhancement improvement application is required.
3. Proof of property taxes paid on the property proposed for improvement, including current year’s taxes, if due, and prior years.
4. Photos to include close-up of property front view; block front view of same side of street; and block front view across the street from the property.
5. Conceptual photos or designs for how the property will appear following completion of enhancements.
6. Site Survey (required ONLY in the case of landscaping improvements).
7. Written estimates/quotes/bids from a minimum of three (3) different contractors. Estimates shall outline all improvements to the subject property in line item form, providing the estimated cost per item. Any taxes should be a separate line item.
8. A minimum of three (3) estimates/quotes/bids detailing enhancements and associated costs.
9. Proof of insurance coverage. (Please ask your insurance agent to send the Accord Form).

Historically Underutilized Business (HUB) Zone

The HUB Zone Empowerment Contracting program provides federal contracting and sub-contracting opportunities for qualified small businesses located in designated areas.

Fostering the growth of these federal contractors as viable businesses, for the long term, helps to empower communities, create jobs, and attract private investment.

Palm Bay has Census Tracts that are designated as a HUB Zone by the U.S. Small Business Administration (SBA). For more information on HUB Zones, visit the SBA's site on the HUB Zone Program.

Contact us for additional information on HUB Zones or to determine whether a business is located within Palm Bay’s HUB Zone.

Foreign Trade Zone #136

Foreign Trade Zones (FTZ) encourage international trade by U.S. companies and preserve jobs in the U.S. International trade increases company revenues by tapping into new markets and provide a competitive edge. A FTZ is an area inside or near a U.S. Customs Port of Entry where foreign and domestic merchandise is considered to be “outside” the United States and exempt from duty, unless such merchandise is transferred for consumption within the U.S.

Port Canaveral is a grantee of FTZ #136, which encompasses more than 4,000 acres with hub sites located throughout Brevard County. Advantages of operating within an FTZ include deferral, reduction, and potential elimination of duties and relief from tariffs as well as other benefits.

International Trade

Expanding Your Market Reach

When deciding on whether to export goods and services to expand your company’s market reach, consider that 95 percent of the world's purchasing power is outside of the Unites States. Because of this, businesses that export their goods or services fair better during a downturn in economy than do businesses that do not export.

If you are interested in resources to expand your market reach and generate additional revenue through exports, visit Export.gov for market research on over 100,000 markets. Explore market research to discover the best prospects for success, your products potential in any given market, and business practices in your desired market. Export.gov also offers A Basic Guide to Exporting, the official beginners guide to exporting as well as webinars, webcasts, and other tools.

The Housing and Community Development Division administers funds received by the City of Palm Bay from:

• U.S. Department of Housing and Urban Development’s Community Development Block Grant (CDBG) Program;
• Brevard County HOME Consortium – HOME Investment Partnerships (HOME) Program;
• U.S. Department of Housing and Urban Development’s Neighborhood Stabilization Program (NSP);
• State of Florida’s State Housing Initiatives Partnership (SHIP) Program;
• Other State and Federal Grant Programs.