Seraphins settle Global Wrap theft lawsuit after CANAN and CORNEAL lawn firms miss federal court deadlines

Two disgruntled former spouses, and (full disclosure, my former employers 2008-2012)  JUDITH and ANTHONY SERAPHIN -- have settled their differences and dismissed their lawsuits.  

Mediation settled the lawsuit, dismissed by Honorable Marcia Howard Morales, on request of plaintiff Judith Serpahin and Global Wrap, Inc. Joseph Anthony Seraphin also owns SERAPHIN GALLERY, 1108 Pine Street, Philadelphia, Pennsylvania. 

Mr. Seraphin served three years in a Pennsylvania prison for DUI homicide. 

Mr. Serpahin is a haughty homophobe, who once bragged of his intention to cheat on his wife and who once asked an openly Gay man working in one of his offices, "Who's the man and who's the woman?"  Oink.

The CANAN and CORNEAL legal disorganizations  -- two yokel law firms -- both missed their shared deadlines to file with the U.S. District Court, as admitted in this filing:

UNITED STATES DISTRICT COURT

 FOR THE MIDDLE DISTRICT 

OF FLORIDA JACKSONVILLE DIVISION

GLOBAL WRAP, INC., a Florida corporation,

Plaintiff,

v.

JOSEPH A. SERAPHIN, individually, TERRY DENNIS BOHNET, individually, GLOBAL WRAP ENVIRONMENTAL CONTAINMENTS, INC., a Pennsylvania corporation, GLOBAL WRAP EC, INC.,
a Canadian corporation, and GLOBAL WRAP SCAFFOLD, INC., a Canadian corporation.

Defendants, ______________________________________/

Case No.: 3:20-cv-436-J-34JBT

JOINT RESPONSE TO ORDER TO SHOW CAUSE

Plaintiff GLOBAL WRAP, INC. (“Plaintiff”) and Defendants JOSEPH A. SERAPHIN, TERRY DENNIS BOHNET, GLOBAL WRAP ENVIRONMENTAL CONTAINMENTS, INC., GLOBAL WRAP EC, INC., and GLOBAL WRAP SCAFFOLD, INC. (collectively, the “Defendants”), by and through their respective counsel, hereby file a joint response to the Order to Show Cause entered by this Court on August 24, 2020, stating that good cause exists not to dismiss this action for lack of prosecution pursuant to Local Rule 3.10 or impose sanctions on the parties for their failure to file a Case Management Report within the time prescribed by Local Rule 3.05(c)(2)(B) and, in support thereof, state as follows:

1. On or about May 12, 2020, Plaintiff filed its Amended Complaint (Dkt. 13) in this action.

2. On or about June 12, 2020, Julie Kurtz, Esq. and Walter Weir, Jr. via pro hac vice, entered

their appearance on behalf of the Defendants (Dkt. 17, 21).

1

Case 3:20-cv-00436-MMH-JBT Document 29 Filed 09/04/20 Page 2 of 4 PageID 200

3. Immediately thereafter, counsel for both Plaintiff and Defendants began communicating in an attempt to reach a resolution and agree upon the exchange of informal discovery in furtherance thereof.

4. As such, on June 12, 2020, the parties agreed to move for an extension of time for Defendants to file a response to Plaintiff’s Amended Complaint (the “First Agreed Motion”) (Dkt. 18). An order was entered by the Court granting the First Agreed Motion on June 15, 2020 (Dkt. 20).

5. Throughout the months following the First Agreed Motion, counsel for both Plaintiff and Defendants continued to exchange informal discovery and engaged in good faith attempts to resolve the issues before the Court.

6. Accordingly, taking into account the pecuniary interests of the parties, on August 4, 2020, the parties agreed to further extend the deadline for Defendants to file a response to Plaintiff’s Amended Complaint through and until September 1, 2020, and filed a second motion for an extension of time with this request (the “Second Agreed Motion”) (Dkt. 22). The Second Agreed Motion was endorsed by the Court on August 5, 2020 (Dkt. 23).

7. As set forth above, since the commencement of this action, the parties have been continuously communicating regarding the matter in attempts to resolve certain issues prior to engaging in drawn out litigation.

8. Due to the multiple mutually agreed upon extensions for Defendants’ response, the exchange of significant informal discovery, and regular correspondence regarding the substantive issues in this action, the parties inadvertently failed to file a Case Management Report.

2

Case 3:20-cv-00436-MMH-JBT Document 29 Filed 09/04/20 Page 3 of 4 PageID 201

9. No party hereto is in danger of prejudice for the failure of filing the Case Management Report, which if filed within the time prescribed by Local Rule 3.05(c)(2)(B), would have been prior to Defendants’ response to Plaintiff’s Amended Complaint.

10. In fact, the delay of the filing of the Case Management Report will have positively impacted the judicial proceedings before the Court allowing this case to proceed towards an adjudication on the merits as expeditiously as possible. Certain matters (e.g., procedures for the exchange of discovery, deadlines and confidentiality issues) have been resolved prior to the Report being filed thereby preventing the need to modify or amend the Report during these proceedings.

11. The failure of the parties to file within the time prescribed by Local Rule 3.05(c)(2)(B) can be attributed to inadvertence and the excusable neglect of the parties due to the totality of the circumstances surrounding the omission.

12. Immediately upon the filing of the Order to Show Cause (Dkt. 24), the parties diligently resolved the oversight by filing the Case Management Report contemporaneously with this Joint Response.

WHEREFORE, Plaintiff and Defendants respectfully request that this Honorable Court find good cause not to dismiss the action for lack of prosecution pursuant to Local Rule 3.10 or impose sanctions on the parties for their failure to file a Case Management Report within the time prescribed by Local Rule 3.05(c)(2)(B), and permit the parties to proceed accordingly in this action.

By:

Dated this 4th day of September 2020.

/s/Alex C. Najarian

Attorneys for Plaintiff

By: /s/Julie K. Kurtz

By: /s/Walter Weir, Jr.

Attorneys for Defendants

  

3

Case 3:20-cv-00436-MMH-JBT Document 29 Filed 09/04/20 Page 4 of 4 PageID 202

CERTIFICATE OF SERVICE

I hereby certify that on this 4th day of September 2020, I electronically filed the foregoing with the Clerk of the Court using the CM/ECF system which will send notification of such filing to the following email addresses:

ALEX C. NAJARIAN, ESQ. Florida Bar No. 127174
The Corneal Law Firm
509 Anastasia Blvd.

St. Augustine, FL 32080
P: (904) 819-5333
F: (904) 484-7216
Email: alex@corneallaw.com Attorneys for Plaintiff

JULIE K. KURTZ, ESQ. Florida Bar No. 0056165 Canan Law
1030 N. Ponce De Leon Blvd. St. Augustine, FL 32084

P: (904) 824-9402
F: (904) 824-9269
Email: jkurtz@cananlaw.com Attorneys for Defendants

WALTER WEIR, JR., ESQ. DAVID V. DZARA, ESQ. Weir & Partners LLP
Suite 500, The Widener Bldg. 1339 Chestnut St. Philadelphia, PA 19107

P: (215) 665-8181
F: 215-665-8464
Email: wweir@weirpartners.com Email: ddzara@weirpartners.com Attorneys for Defendants

U.S. District Court
Middle District of Florida (Jacksonville)
CIVIL DOCKET FOR CASE #: 3:20-cv-00436-MMH-JBT

Global Wrap, Inc. v. Seraphin et al Assigned to: Judge Marcia Morales Howard Referred to: Magistrate Judge Joel B. Toomey Demand: $203,000 Cause: 28:1332fd Diversity-Breach of Fiduciary Duty

Date Filed: 04/28/2020 Date Terminated: 01/08/2021 Jury Demand: None Nature of Suit: 160 Stockholders Suits Jurisdiction: Diversity

Plaintiff
Global Wrap, Inc.  a Florida corporation	represented by	Alex Christopher Najarian   The Corneal Law Firm   509 Anastasia Blvd.   St. Augustine, FL 32080   904/819-5333   Email: alex@corneallaw.com  ATTORNEY TO BE NOTICED
V.
Defendant
Joseph A Seraphin  Individually	represented by	David V. Dzara   Weir & Partners LLP   1339 Chestnut Street, Suite 500   Philadelphia, PA 19107   215-665-8181   Fax: 215-665-8191   Email: ddzara@weirpartners.com  LEAD ATTORNEY  PRO HAC VICE  ATTORNEY TO BE NOTICED Julie K. Kurtz   Canan Law   1030 N. Ponce de Leon Blvd.   St Augustine, FL 32084   904/824-9402   Fax: 904/824-9269   Email: jkurtz@cananlaw.com  LEAD ATTORNEY  ATTORNEY TO BE NOTICED Walter Weir , Jr.   Weir & Partners LLP   Suite 500, The Widener Bldg.   1339 Chestnut St.   Philadelphia, PA 19107   215/665-8181   Email: wweir@weirpartners.com  LEAD ATTORNEY  ATTORNEY TO BE NOTICED
Defendant
Terry Dennis Bohnet  Individually	represented by	David V. Dzara   (See above for address)  LEAD ATTORNEY  PRO HAC VICE  ATTORNEY TO BE NOTICED Julie K. Kurtz   (See above for address)  LEAD ATTORNEY  ATTORNEY TO BE NOTICED Walter Weir , Jr.   (See above for address)  LEAD ATTORNEY  ATTORNEY TO BE NOTICED
Defendant
Global Wrap Environmental Containments, Inc.  a Pennsylvania corporation	represented by	David V. Dzara   (See above for address)  LEAD ATTORNEY  PRO HAC VICE  ATTORNEY TO BE NOTICED Julie K. Kurtz   (See above for address)  LEAD ATTORNEY  ATTORNEY TO BE NOTICED Walter Weir , Jr.   (See above for address)  LEAD ATTORNEY  ATTORNEY TO BE NOTICED
Defendant
Global Wrap EC, Inc.  a Canadian corporation	represented by	David V. Dzara   (See above for address)  LEAD ATTORNEY  PRO HAC VICE  ATTORNEY TO BE NOTICED Julie K. Kurtz   (See above for address)  LEAD ATTORNEY  ATTORNEY TO BE NOTICED Walter Weir , Jr.   (See above for address)  LEAD ATTORNEY  ATTORNEY TO BE NOTICED
Defendant
Global Wrap Scaffold, Inc.  a Canadian corporation	represented by	David V. Dzara   (See above for address)  LEAD ATTORNEY  PRO HAC VICE  ATTORNEY TO BE NOTICED Julie K. Kurtz   (See above for address)  LEAD ATTORNEY  ATTORNEY TO BE NOTICED Walter Weir , Jr.   (See above for address)  LEAD ATTORNEY  ATTORNEY TO BE NOTICED

Date Filed	#	Docket Text
04/28/2020	1	COMPLAINT against All Defendants (Filing fee $ 400 receipt number 113A-16750434) filed by All Plaintiffs. (Attachments: # 1 Civil Cover Sheet, # 2 Exhibit A, # 3 Exhibit B, # 4 Proposed Summons, # 5 Proposed Summons, # 6 Proposed Summons, # 7 Proposed Summons, # 8 Proposed Summons)(Najarian, Alex) Modified on 5/8/2020 (PAM). Stricken Per Doc. 12 (Entered: 04/28/2020)
04/28/2020	2	NEW CASE ASSIGNED to Judge Marcia Morales Howard and Magistrate Judge Joel B. Toomey. New case number: 3:20-cv-436-J-34JBT. (SJB) (Entered: 04/28/2020)
04/28/2020	3	SUMMONS issued as to Joseph A Seraphin. (PAM) Modified on 4/28/2020 (PAM). Entered incorrectly. See Doc. 4 (Entered: 04/28/2020)
04/28/2020	4	SUMMONS issued as to Joseph A Seraphin. (PAM) (Entered: 04/28/2020)
04/28/2020	5	SUMMONS issued as to Terry Dennis Bohnet. (PAM) (Entered: 04/28/2020)
04/28/2020	6	SUMMONS issued as to Global Wrap Environmental Containments, Inc. (PAM) (Entered: 04/28/2020)
04/28/2020	7	SUMMONS issued as to Global Wrap EC, Inc.(PAM) (Entered: 04/28/2020)
04/28/2020	8	SUMMONS issued as to Global Wrap Scaffold, Inc. (PAM) (Entered: 04/28/2020)
04/29/2020	9	NOTICE of designation under Local Rule 3.05 - track 2. Signed by Deputy Clerk on 4/29/2020. (Attachments: # 1 Case Management Report Form, # 2 Consent Letter and Form)(JW) (Entered: 04/29/2020)
05/01/2020	10	NOTICE OF HEARING: Telephonic Status Conference set for 5/7/2020 at 02:30 PM before Judge Marcia Morales Howard. (JW) (Entered: 05/01/2020)
05/05/2020	11	CERTIFICATE of interested persons and corporate disclosure statement by Global Wrap, Inc. (Najarian, Alex) Modified on 5/5/2020 to edit text (PAM). (Entered: 05/05/2020)
05/07/2020	12	Minute Entry for proceedings held before Judge Marcia Morales Howard: TELEPHONIC STATUS CONFERENCE held on 5/7/2020; striking 1 Complaint; directing Plaintiff to file an Amended Complaint on or before May 22, 2020. Court Reporter: Cindy Packevicz Jarriel (JW) (Entered: 05/08/2020)
05/12/2020	13	AMENDED COMPLAINT against All Defendants filed by Global Wrap, Inc.. (Attachments: # 1 Exhibit A, # 2 Exhibit B)(Najarian, Alex) (Entered: 05/12/2020)
05/20/2020	14	RETURN of Service Executed on 5/7/20 as to Global Wrap Environmental Containments, Inc c/o Joseph A Seraphin by Global Wrap, Inc. (Najarian, Alex) Modified on 5/21/2020 to edit text (PAM). (Entered: 05/20/2020)
05/20/2020	15	RETURN of service executed on 5/7/20 as to Joseph A. Seraphin by Global Wrap, Inc. (Najarian, Alex) Modified on 5/21/2020 (PAM). (Entered: 05/20/2020)
05/20/2020	16	CERTIFICATE of service by Global Wrap, Inc. re 13 Amended Complaint . (Attachments: # 1 Exhibit A)(Najarian, Alex) (Entered: 05/20/2020)
06/12/2020	17	NOTICE of Appearance by Julie K. Kurtz on behalf of Terry Dennis Bohnet, Global Wrap EC, Inc., Global Wrap Environmental Containments, Inc., Global Wrap Scaffold, Inc., Joseph A Seraphin (Kurtz, Julie) (Entered: 06/12/2020)
06/12/2020	18	Consent MOTION for Extension of Time to File Response to Amended Complaint by All Defendants. (Kurtz, Julie) Motions referred to Magistrate Judge Joel B. Toomey. (Entered: 06/12/2020)
06/12/2020	19	MOTION for Walter Weir, Jr. to appear pro hac vice, Special Admission fee paid, Receipt No. 113A-16929487 for $150 by All Defendants. (Attachments: # 1 Affidavit Special Admission Attorney Certification)(Kurtz, Julie) Motions referred to Magistrate Judge Joel B. Toomey. (Entered: 06/12/2020)
06/15/2020	20	ENDORSED ORDER granting 18 Defendants' Agreed Motion for Extension of Time. Defendants shall have up to and including August 11, 2020, to respond to 13 the Amended Complaint. Signed by Magistrate Judge Joel B. Toomey on 6/15/2020. (RLS) (Entered: 06/15/2020)
06/15/2020	21	ENDORSED ORDER granting 19 Agreed Motion to Appear Pro Hac Vice. If Walter Weir, Jr., Esq., has not already done so, he shall immediately register for a login and password for electronic filing at the Court's website at www.flmd.uscourts.gov. Signed by Magistrate Judge Joel B. Toomey on 6/15/2020. (RLS) (Entered: 06/15/2020)
08/04/2020	22	Consent MOTION for Extension of Time to File Answer re 13 Amended Complaint (Second) by All Defendants. (Kurtz, Julie) Motions referred to Magistrate Judge Joel B. Toomey. (Entered: 08/04/2020)
08/05/2020	23	ENDORSED ORDER granting 22 Second Agreed Motion for Extension of Time. Defendants shall have up to and including September 1, 2020 to respond to 13 the Amended Complaint. Signed by Magistrate Judge Joel B. Toomey on 8/5/2020. (RLS) (Entered: 08/05/2020)
08/06/2020		Set/reset deadlines/hearings: Answer due by 9/1/2020. (RH) (Entered: 08/06/2020)
08/24/2020	24	ORDER to show cause why this case should not be dismissed or sanctions imposed due to the parties' failure to file a Case Management Report. Show Cause Response due by 9/8/2020. Signed by Judge Marcia Morales Howard on 8/24/2020. (JW) Modified on 9/9/2020 (DISCHARGED per Order doc 31) (RH). (Entered: 08/24/2020)
08/26/2020	25	NOTICE to counsel Walter Weir of Local Rule 2.01(d), which states, each attorney must register with the Clerk of the Court and maintain an email address for electronic service by the Clerk.Maintain your e-mail address by logging into CM/ECF or register for a CM/ECF Account at www.flmd.uscourts.gov (Signed by Deputy Clerk). (JDR) (Entered: 08/26/2020)
09/01/2020	26	MOTION to Dismiss for Lack of Jurisdiction by All Defendants. (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C, # 4 Exhibit D, # 5 Exhibit E, # 6 Exhibit F, # 7 Exhibit G)(Kurtz, Julie) (Entered: 09/01/2020)
09/02/2020	27	MOTION for David V. Dzara to appear pro hac vice, Special Admission fee paid, Receipt No. 113A-17262459 for $150 by All Defendants. (Attachments: # 1 Affidavit Special Admission Attorney Certification)(Kurtz, Julie) Motions referred to Magistrate Judge Joel B. Toomey. (Entered: 09/02/2020)
09/03/2020	28	ENDORSED ORDER granting 27 Agreed Motion to Appear Pro Hac Vice and Designation and Consent to Act. If David V. Dzara, Esq. has not already done so, he shall immediately register for a login and password for electronic filing at the Court's website at www.flmd.uscourts.gov. Signed by Magistrate Judge Joel B. Toomey on 9/3/2020. (RLS) (Entered: 09/03/2020)
09/04/2020	29	RESPONSE TO ORDER TO SHOW CAUSE re 24 Order to show cause filed by Global Wrap, Inc.. (Najarian, Alex) (Entered: 09/04/2020)
09/04/2020	30	CASE MANAGEMENT REPORT. (Najarian, Alex) (Entered: 09/04/2020)
09/08/2020	31	ENDORSED ORDER discharging 24 Order to Show Cause. Signed by Judge Marcia Morales Howard on 9/8/2020. (JW) (Entered: 09/08/2020)
09/08/2020	32	CASE MANAGEMENT AND SCHEDULING ORDER AND REFERRAL TO MEDIATION: Certificates of Interested Persons and Corporate Disclosure Statements due by 9/18/2020. Discovery due by 6/1/2021. Conduct mediation hearing by 6/18/2021. Dispositive motions due by 7/9/2021. Final Pretrial Conference set for 11/22/2021 at 10:00 AM in Jacksonville Courtroom 10 B before Judge Marcia Morales Howard. Jury Trial set for trial term commencing on 12/6/2021 at 09:00 AM in Jacksonville Courtroom 10 B before Judge Marcia Morales Howard. Signed by Judge Marcia Morales Howard on 9/8/2020. (Attachments: # 1 Mediation Report Form, # 2 Court Docket)(JW) (Entered: 09/08/2020)
09/10/2020	33	CASE REFERRED to Mediation. (RH) (Entered: 09/10/2020)
09/15/2020	34	RESPONSE in Opposition re 26 MOTION to Dismiss for Lack of Jurisdiction filed by Global Wrap, Inc.. (Attachments: # 1 Exhibit A, # 2 Exhibit B, # 3 Exhibit C, # 4 Exhibit D, # 5 Exhibit E, # 6Exhibit F, # 7 Exhibit G)(Najarian, Alex) (Entered: 09/15/2020)
09/18/2020	35	CERTIFICATE of interested persons and corporate disclosure statement re 32 Case management and scheduling order by Terry Dennis Bohnet, Global Wrap EC, Inc., Global Wrap Environmental Containments, Inc., Global Wrap Scaffold, Inc., Joseph A Seraphin. (Kurtz, Julie) (Entered: 09/18/2020)
09/24/2020	36	SUPPLEMENT re 34 Response in Opposition to Motion by Global Wrap, Inc.. (Attachments: # 1 State Court Other Documents)(Najarian, Alex) (Entered: 09/24/2020)
10/02/2020	37	SUPPLEMENT re 26 MOTION to Dismiss for Lack of Jurisdiction by Terry Dennis Bohnet, Global Wrap EC, Inc., Global Wrap Environmental Containments, Inc., Global Wrap Scaffold, Inc., Joseph A Seraphin. (Attachments: # 1 Exhibit A)(Kurtz, Julie) (Entered: 10/02/2020)
01/07/2021	38	NOTICE of voluntary dismissal by Global Wrap, Inc. (Najarian, Alex) (Entered: 01/07/2021)
01/08/2021	39	ORDER dismissing case with prejudice. The Clerk of the Court is directed to close the file. Signed by Judge Marcia Morales Howard on 1/8/2021. (JW) (Entered: 01/08/

 

Stinky Florida Statute 288.075, "Confidentiality of records," allows secrecy on corporate subsidies for "Economic Development"

"Secrecy is for losers," as the late Senator Daniel Patrick Moynihan said it best. 

Here's the full text of the creepy Florida Statute that suffers and permits secrecy for applicants for tax holidays, like the $23,380,125, 30-year tax holiday sought on behalf of a corporation, unnamed, code-named "Project Breeze."

"Patriotism" was once called "the last refuge of scoundrels?" 

You tell me. 

Now is that "last refuge of scoundrels" called "proprietary data."

This is so wrong.

288.075 Confidentiality of records.—

(1) DEFINITIONS.—As used in this section, the term:

(a) “Economic development agency” means:

1. The Department of Economic Opportunity;

2. Any industrial development authority created in accordance with part III of chapter 159 or by special law;

3. Space Florida created in part II of chapter 331;

4. The public economic development agency of a county or municipality or, if the county or municipality does not have a public economic development agency, the county or municipal officers or employees assigned the duty to promote the general business interests or industrial interests of that county or municipality or the responsibilities related thereto;

5. Any research and development authority created in accordance with part V of chapter 159; or

6. Any private agency, person, partnership, corporation, or business entity when authorized by the state, a municipality, or a county to promote the general business interests or industrial interests of the state or that municipality or county.

(b) “Proprietary confidential business information” means information that is owned or controlled by the corporation, partnership, or person requesting confidentiality under this section; that is intended to be and is treated by the corporation, partnership, or person as private in that the disclosure of the information would cause harm to the business operations of the corporation, partnership, or person; that has not been disclosed unless disclosed pursuant to a statutory provision, an order of a court or administrative body, or a private agreement providing that the information may be released to the public; and that is information concerning:

1. Business plans.

2. Internal auditing controls and reports of internal auditors.

3. Reports of external auditors for privately held companies.

(c) “Trade secret” has the same meaning as in s. 688.002.

(2) PLANS, INTENTIONS, AND INTERESTS.—

(a) Upon written request from a private corporation, partnership, or person, information held by an economic development agency concerning plans, intentions, or interests of such private corporation, partnership, or person to locate, relocate, or expand any of its business activities in this state is confidential and exempt from s. 119.07(1) and s. 24(a), Art. I of the State Constitution for 12 months after the date an economic development agency receives a request for confidentiality or until the information is otherwise disclosed, whichever occurs first.

(b) An economic development agency may extend the period of confidentiality specified in paragraph (a) for up to an additional 12 months upon written request from the private corporation, partnership, or person who originally requested confidentiality under this section and upon a finding by the economic development agency that such private corporation, partnership, or person is still actively considering locating, relocating, or expanding its business activities in this state. Such a request for an extension in the period of confidentiality must be received prior to the expiration of any confidentiality originally provided under this section.

(c) A public officer or employee may not enter into a binding agreement with any corporation, partnership, or person who has requested confidentiality of information under this subsection until 90 days after the information is made public unless:

1. The public officer or employee is acting in an official capacity;

2. The agreement does not accrue to the personal benefit of such public officer or employee; and

3. In the professional judgment of the officer or employee, the agreement is necessary to effectuate an economic development project.

(3) TRADE SECRETS.—Trade secrets held by an economic development agency are confidential and exempt from s. 119.07(1) and s. 24(a), Art. I of the State Constitution.

(4) PROPRIETARY CONFIDENTIAL BUSINESS INFORMATION.—Proprietary confidential business information held by an economic development agency is confidential and exempt from s. 119.07(1) and s. 24(a), Art. I of the State Constitution, until such information is otherwise publicly available or is no longer treated by the proprietor as proprietary confidential business information.

(5) IDENTIFICATION, ACCOUNT, AND REGISTRATION NUMBERS.—A federal employer identification number, unemployment compensation account number, or Florida sales tax registration number held by an economic development agency is confidential and exempt from s. 119.07(1) and s. 24(a), Art. I of the State Constitution.

(6) ECONOMIC INCENTIVE PROGRAMS.—

1(a) The following information held by an economic development agency pursuant to the administration of an economic incentive program for qualified businesses is confidential and exempt from s. 119.07(1) and s. 24(a), Art. I of the State Constitution for a period not to exceed the duration of the incentive agreement, including an agreement authorizing a tax refund or tax credit, or upon termination of the incentive agreement:

1. The percentage of the business’s sales occurring outside this state and, for businesses applying under s. 288.1045, the percentage of the business’s gross receipts derived from Department of Defense contracts during the 5 years immediately preceding the date the business’s application is submitted.

2. The anticipated wages for the project jobs that the business plans to create, as reported on the application for certification.

3. The average wage actually paid by the business for those jobs created by the project or an employee’s personal identifying information which is held as evidence of the achievement or nonachievement of the wage requirements of the tax refund, tax credit, or incentive agreement programs or of the job creation requirements of such programs.

4. The amount of:

a. Taxes on sales, use, and other transactions paid pursuant to chapter 212;

b. Corporate income taxes paid pursuant to chapter 220;

c. Intangible personal property taxes paid pursuant to chapter 199;

d. Insurance premium taxes paid pursuant to chapter 624;

e. Excise taxes paid on documents pursuant to chapter 201;

f. Ad valorem taxes paid, as defined in s. 220.03(1); or

g. State communications services taxes paid pursuant to chapter 202.

(b)1. An economic development agency may release:

a. Names of qualified businesses.

b. The total number of jobs each business expects to create.

c. The total number of jobs created by each business.

d. The amount of tax refunds, tax credits, or incentives awarded to and claimed by each business.

2. For a business applying for certification under s. 288.1045 which is based on obtaining a new Department of Defense contract, the total number of jobs expected and the amount of tax refunds claimed may not be released until the new Department of Defense contract is awarded.

(c) An economic development agency may publish statistics in the aggregate and classified so as to prevent the identification of a single qualified applicant.

(7) PENALTIES.—Any person who is an employee of an economic development agency who violates the provisions of this section commits a misdemeanor of the second degree, punishable as provided in s. 775.082 or s. 775.083.

(8) LEGISLATIVE REVIEW OF EXEMPTIONS.—This section is subject to the Open Government Sunset Review Act in accordance with s. 119.15 and shall stand repealed on October 2, 2012, unless reviewed and saved from repeal through reenactment by the Legislature.

History.—s. 1, ch. 77-75; s. 1, ch. 79-395; s. 3, ch. 83-47; s. 1, ch. 86-152; s. 1, ch. 86-180; s. 1, ch. 86-218; s. 1, ch. 89-217; s. 104, ch. 90-360; s. 245, ch. 91-224; s. 220, ch. 95-148; s. 1, ch. 95-378; s. 1, ch. 96-353; s. 135, ch. 96-406; s. 14, ch. 99-256; s. 1, ch. 2001-161; s. 5, ch. 2002-183; s. 27, ch. 2003-286; s. 55, ch. 2006-60; s. 1, ch. 2006-157; s. 1, ch. 2007-203; s. 23, ch. 2011-76; s. 148, ch. 2011-142.

1Note.—Section 35, ch. 2011-76, provides that:

“(1) The executive director of the Department of Revenue is authorized, and all conditions are deemed met, to adopt emergency rules under ss. 120.536(1) and 120.54(4), Florida Statutes, for the purpose of implementing this act.

“(2) Notwithstanding any other provision of law, such emergency rules shall remain in effect for 6 months after the date adopted and may be renewed during the pendency of procedures to adopt permanent rules addressing the subject of the emergency rules.”

"Confidential" Application for $23,380,125., 30-year tax holiday from St. Johns County!

Southern states have been bribing industries since the 1940s to "create jobs."

It is a "race to the bottom, " in Justice Brandeis' phrase. 

St. Johns County does not need to bribe industries to "create jobs."

This is the fourth fastest-growing county in America.

I object to these "incentives," swathed in possible nonfeasance, misfeasance and malfeasance by all-white, all-male, Republican St Johns County Board of County Commissioners.

"Secrecy is for lowers," as Senator Daniel Patrick Moynihan said it best. 

What is the name of the corporation demanding this extravagant subsidy?   

From St. Johns County Board of County Commissioners website.

Agenda item 3 is on April 6, 2021 agenda.

It's our money.

https://stjohnsclerk.com/minrec/agendas/2021/040621cd/04-06-21REG03.pdf

	AGENDA ITEM ST. JOHNS COUNTY BOARD OF COUNTY COMMISSIONERS
	Deadline for Submission - Wednesday 9 a.m. – Thirteen Days Prior to BCC Meeting

4/6/2021
BCC MEETING DATE

TO: Hunter S. Conrad, County Administrator DATE: March 16, 2021

FROM: Joy Andrews, Deputy County Administrator PHONE: 904 209-0562

SUBJECT OR TITLE: Project Breeze Economic Development Incentive Request AGENDA TYPE: Business Item, Contract, Grant, Report

BACKGROUND INFORMATION:

The St. Johns County Economic Development Agency (Agency) has received an application from Project Breeze for economic development incentives. The Applicant has requested confidentiality under Section 288.075, Florida Statutes, for the project as it goes through the due-diligence process. The Applicant proposes to develop a 150,000-square-foot building (Building A) to house digital media operations within the qualified targeted industry of infotech. The Applicant has yet to submit the final number of new fulltime jobs and annual average wage of the new jobs the project will bring. In addition to the provision of incentives based on the construction of a new facility and creation of new jobs, the Applicant has requested that the County consider the value of retention of existing jobs at an existing facility (Building B) within the County in its consideration of the application. The project will retain 145 jobs there, averaging $97,000 per job retained. The Applicant has also proposed additional potential inducements for further incentives, such as the conveyance of certain property rights to the County and the opportunity for the County to work with the Applicant as a resource for County-wide economic development and general marketing. These inducements would be a condition of the County’s entering into an incentive agreement with the Applicant. The County has broad authority under Section 125.045, Florida Statutes, to expend public funds for the expansion or retention of businesses. The Applicant has requested economic development incentives over a 30-year period due to the magnitude of the project and to encourage retention and expansion of an existing business with significant economic impact within St. Johns County. An incentive period of this duration falls outside of the scope of the incentive program provided under Section 11 of the St. Johns County Business Incentive Program Ordinance (the Ordinance); however, Section 7 of the Ordinance permits the Board of County Commissioners to consider incentives that fall outside the scope of the program. Completion of the project is anticipated by the first quarter of 2024. With this schedule, the first annual grant payment would be anticipated during FY26. Based on the Applicant’s request, the estimated value of the incentive for Building A is $13,774,888. Based on the Applicant’s request, the estimated value of the incentive for Building B is $9,605,237. Based on the Applicant’s request, the total estimated value of incentives for both buildings is $23,380,125. The requested values are subject to change based on the final number of new fulltime jobs provided by the Applicant and other conditions outlined for the project. In accordance with program requirements, the Agency is required to review the application and make a written report to the Board of County Commissioners.

Motion to instruct the County Attorney to draft an Economic Development Grant Agreement for Project Breeze and place the proposed Grant Agreement for consideration by the Board at a later regularly scheduled meeting.

          

  

1. IS FUNDING REQUIRED? Yes 2. IF YES, INDICATE IF BUDGETED. No IF FUNDING IS REQUIRED, MANDATORY OMB REVIEW IS REQUIRED:

INDICATE FUNDING SOURCE: ED TAX INCENTIVE REBATE – 0059-53120: No anticipated funding in FY21. Funding for grant payments to begin in FY26.

   

SUGGESTED MOTION/RECOMMENDATION/ACTION:

     

For Administration Use Only:
Legal: RL 3/30/2021 OMB: DC 3/30/2021 Admin: Joy Andrews 3/30/2021

       

     

To: Through: From: Date: Subject:

ST. JOHNS COUNTY OFFICE OF THE COUNTY ADMINISTRATOR ECONOMIC DEVELOPMENT
500 San Sebastian View
St. Augustine, Florida 32084

INTEROFFICE MEMORANDUM

St. Johns County Board of County Commissioners County Administration
Joy Andrews, Deputy County Administrator March 29, 2021

St. Johns County Economic Development Agency Report - Project Breeze Economic Development Incentive Request

The St. Johns County Economic Development Agency (Agency) has received an application from Project Breeze for economic development incentives. The Applicant has requested confidentiality under Section 288.075, Florida Statutes, for the project as it goes through the due-diligence process. The Applicant proposes to develop a 150,000-square-foot building (Building A) to house digital media operations within the qualified targeted industry of infotech. The Applicant has yet to submit the final number of new fulltime jobs and annual average wage of the new jobs the project will bring.

In addition to the provision of incentives based on the construction of a new facility and creation of new jobs, the Applicant has requested that the County consider the value of retention of existing jobs at an existing facility (Building B) within the County in its consideration of the application. The project will retain 145 jobs there, averaging $97,000 per job retained. The Applicant has also proposed additional potential inducements for further incentives, such as the conveyance of certain property rights to the County and the opportunity for the County to work with the Applicant as a resource for County-wide economic development and general marketing. These inducements would be a condition of the County’s entering into an incentive agreement with theApplicant.

The County has broad authority under Section 125.045, Florida Statutes, to expend public funds for the expansion or retention of businesses. The Applicant has requested economic development incentives over a 30-year period due to the magnitude of the project and to encourage retention and expansion of an existing business with significant economic impact within St. Johns County. An incentive period of this duration falls outside of the scope of the incentive program provided under Section 11 of the St. Johns County Business Incentive Program Ordinance (the Ordinance); however, Section 7 of the Ordinance permits the Board of County Commissioners to consider incentives that fall outside the scope of the program. Completion of the project is anticipated by the first quarter of 2024. With this schedule, the first annual grant payment would be anticipated during FY26.Based on the Applicant’s request, the estimated value of the incentive for Building A is $13,774,888. Based on the Applicant’srequest, the estimated value of the incentive for Building B is $9,605,237.1 Based on the Applicant’s request, the total estimatedvalue of incentives for both buildings is $23,380,125.2 The requested values are subject to change based on the final number of new fulltime jobs provided by the Applicant and other conditions outlined for the project.

1 The grant calculation and cost-benefit analysis calculation for Building B are not included in this report to protect the confidentiality request of the Applicant.

2 By way of comparison, if this project were proceeding solely under the Ordinance, the project would have scored 7 to 8 points, depending on the number of new jobs created. Under the ordinance, a project that receives 5 or more points is eligible for the maximum level of incentives, which includes expedited permitting and an economic development grant of up to 100% of fees paid to the County by the Applicant (impact fees and water/sewer connection fees), four years ad valorem taxes paid by the Applicant (general county portion) on capital improvements and four years tangible business personal property taxes (general county portion).

In accordance with program requirements, the Agency is required to review the application and make a written report to the Board of County Commissioners.

The following items are attached and represent the Agency Report:

 Project Breeze - Grant Calculation
 Project Breeze - Cost Benefit Analysis

2

Facility Size: Job Creation: Wages: Total Points

150,000 sq ft

Applicant Has Not Submitted Final Number 125%+ of County Wage

ESTIMATE OF ECONOMIC DEVELOPMENT

GRANT CALCULATION

PROJECT BREEZE

Calculations based on County Ordinance 2014-30 and millage rates effective on October 1, 2020

Building A

POINTS AWARDED*

Target Industry: Infotech (Digital Media)

2

2 1 or 2 2 7 or 8

Total Value of Capital Improvements
Multiplied by County Millage Rate
Annual Ad Valorem Tax (General County Portion) Multiplied by # Eligible Years
Ad Valorem Tax (General County Portion) Estimate

Total Estimated Value of New Tangible Assets
Multiplied by County Millage Rate
Annual New Tangible Business Personal Property Tax (General County Portion) Multiplied by # Eligible Years
Tangible Business Personal Property Tax (General County Portion) Estimate

68,000,000 0.46537%

316,451.60 30

9,493,548

24,786,537 0.46537%

115,349.11 30

3,460,473

519,900

519,900 300,967

13,774,888

9,605,237

23,380,125

13,774,888 431,801

9,605,237 400,218

as of 03.29.21

    

Total Square Footage
Impact Fee Category: General Office 100-200k sq ft Impact Fee Estimate (100%)

Water/Sewer Total Unit Connection Fees Estimate (100%) TOTAL ESTIMATED INCENTIVE FOR BUILDING A
Building B
TOTAL ESTIMATED INCENTIVE FOR BUILDING B (24 YEARS)

TOTAL ESTIMATED INCENTIVE (BUILDING A + BUILDING B) PAYOUT SCHEDULE

Building A
Total Maximum Possible Incentive:
Payout Will Consist of Estimated Annual Installments of:

Building B
Total Maximum Possible Incentive:
Payout Will Consist of Estimated Annual Installments of:

150,000
150,000 ($3,466 per 1,000 sq ft)

 

*By way of comparison, if this project were proceeding solely under the Ordinance.

The annual payment is based on the general county portion of the ad valorem taxes and tangible personal property taxes paid each year, which could fluctuate with increasing property values. The total payout will not exceed the total incentive granted.

Payout will begin when all capital improvements are recognized on the tax roll. Annual installments will not exceed the annual general county portion of the ad valorem taxes paid each year.

FINANCIAL CONTRIBUTIONS

COST-BENEFIT ANALYSIS

PROJECT BREEZE

Calculations are based on County Ordinance 2014-30 and millage rates effective on October 1, 2020

BUILDING A

Estimated Added Values: Real Property
Taxable Improvements

Tangible New Business Personal Property Total Added Value

Total Estimated Countywide Property Taxes

Real Property Taxes

Total Estimated Property Taxes Paid
Total Estimated General County Portion Taxes

Real Property Taxes

Total Estimated General County Portion Taxes Paid

Total Estimated Fees

Estimated Assessment for Impact Fees
Estimated Assessment for Water/Sewer Unit Connection Fees Total Estimated Fees

Total Estimated Value of Economic Development Grant
Net Benefit to St. Johns County (General County Portion) Over 30 Years BUILDING B
Total Estimated Value of Economic Development Grant
Net Benefit to St. Johns County (General County Portion) Over 30 Years

Annually

1,341,882

1,341,882 Annually

469,030

469,030

8,000,000 68,000,000 24,786,537

100,786,537 Over 30 Years

40,256,461

40,256,461 Over 30 Years

14,070,909

14,070,909

519,900 300,967 820,867

13,774,888 1,116,888

9,605,237 2,654,768

 

FINANCIAL CONTRIBUTIONS

COST-BENEFIT ANALYSIS

PROJECT BREEZE

Calculations are based on County Ordinance 2014-30 and millage rates effective on October 1, 2020

BUILDING A

Estimated Added Values: Real Property
Taxable Improvements

Tangible New Business Personal Property Total Added Value

Total Estimated Countywide Property Taxes

Real Property Taxes

Total Estimated Property Taxes Paid
Total Estimated General County Portion Taxes

Real Property Taxes

Total Estimated General County Portion Taxes Paid

Total Estimated Fees

Estimated Assessment for Impact Fees
Estimated Assessment for Water/Sewer Unit Connection Fees Total Estimated Fees

Total Estimated Value of Economic Development Grant
Net Benefit to St. Johns County (General County Portion) Over 40 Years BUILDING B
Total Estimated Value of Economic Development Grant
Net Benefit to St. Johns County (General County Portion) Over 40 Years

Annually

1,341,882

1,341,882 Annually

469,030

469,030

8,000,000 68,000,000 24,786,537

100,786,537 Over 40 Years

53,675,281

53,675,281 Over 40 Years

18,761,212

18,761,212

519,900 300,967 820,867

13,774,888 5,807,191

9,605,237 6,741,436

 

Project Breeze Incentive Request

St. Johns County
Board of County Commissioners

April 6, 2021

PROJECT OVERVIEW Project Breeze - Building A o The Applicant proposes to develop a 150,000-square-foot building (Building A) to house digital media operations within the qualified targeted industry of infotech. o The project will be complete and operational by the first quarter of 2024. o The anticipated investment for land, building and equipment is more than $100 million. o The project will bring $304 million in direct economic impact per year and $16.7 million in school taxes over 30 years. o At the time this report was submitted, the Applicant had not provided the final number of jobs the project will bring.

PROJECT OVERVIEW - continued Project Breeze o In addition to the provision of incentives based on the construction of a new facility and creation of new jobs, the Applicant has requested that the County consider the value of retention of existing jobs at an existing facility (Building B) within the County in its consideration of the application. o The Applicant has also proposed additional potential inducements for further incentives, such as the conveyance of certain property rights to the County and the opportunity for the County to work with the Applicant as a resource for County-wide economic development and general marketing. These inducements would be a condition of theCounty’s entering into an incentive agreement with the Applicant.

PROJECT SCORING – BUILDING A* Project Breeze o 7 or 8 Total Points o Target Industry / Infotech (Digital Media) / 2 Points o Facility Size / 150,000 sq ft / 2 Points o New Employment / Applicant Has Not Submitted Final Number / 1 or 2 Points o Wage Rates / 125%+ Average Wage Rate / 2 Points *By way of comparison, if this project were proceeding solely under the Ordinance.

REQUESTED ECONOMIC DEVELOPMENT GRANT INCENTIVES Project Breeze – Building A o 100% of fees paid to the County by the applicant (impact fees and water/sewer connection fees) o 30 years ad valorem taxes paid by the applicant (general county portion) on capital improvements o 30 years tangible business personal property taxes (general county portion) paid by the applicant o Expedited permitting Based on the Applicant’s request, the total estimated value of the incentive for Building A is $13,774,888.

REQUESTED ECONOMIC DEVELOPMENT GRANT INCENTIVES Project Breeze – Building B o 24 years ad valorem taxes paid by the applicant (general county portion) on capital improvements o 24 years tangible business personal property taxes (general county portion) paid by the applicant Based on the Applicant’s request, the total estimated value of the incentive for Building B is $9,605,237.

REQUESTED ECONOMIC DEVELOPMENT GRANT INCENTIVES Project Breeze Based on the Applicant’s request, the total estimated value of the incentive for both Building A and Building B is $23,380,125.