Discussion Agenda Item III.A.3

Approval of Resolution of theOrange County

Board of County Commissioners regarding AcAeSoftware, LCC

Qualified Target Industry Tax Refund

Qualified Target Industry Tax Refund Program

State QTI Program

• Created 1994 Section 288.106 Florida Statutes

• Goal: Encourage growth of high-skill, high-wage jobs in target industries

• Tax refunds for each job created

• Tax refunds based on 1) number of jobs created, and 2) average salary of these jobs

• Tax refunds paid over time only after jobs are created, maintained, and taxes paid

• State provides 80% of the payments

• Local government pays 20%

• American Computer Aided Engineering, LLC

• High-tech design, consulting, and support services for companies using electronic design automation software (EDA or ECAD)

• EDA is a category of software tools for designing electronic systems such as printed circuit boards and integrated circuits.

• Global Q3 2010 revenue = $1.3 billion

• American Computer Aided Engineering, LLC

• Founded in England in 1983

• Moved headquarters to Maitland in 1994

• Founder completed move to Maitland in 1997

• 8 full-time staff with a network of consultants around the world

• Majority of customers are global Fortune 1000 companies.

• Industry-wide problem…

• Translating active and legacy data across platforms

• Incomplete and inaccurate translations

• Partial results / manual translations needed

• “We spent 7 years trying to solve the translation issue with EDA software, and failed.” Technical Division Head

Fortune 500 Company

• Solution…

• 2005 - Focus at AcAe, both company and personal, became finding a solution to translation among EDA software platforms

• 2008- AcAe forms AcAeSoftware, LLC as development of its proprietary DART Design Migration Technology product family comes to fruition.

• 2010 – AcAeSoftware, LLC is ready to grow

• Decision time: Stay and grow in Orange County or elsewhere — Texas or Ohio.

• 8 existing high-wage jobs are at stake

• 93 new high-wage jobs

• A possible “blockbuster” company for Orange County

• Company preference is to stay and grow in Orange County

• AcAe a good community partner – e.g. UCF

• 18 in 2011

• 25 in 2012

• 50 in 2013

• At least 150% the prevailing wage

93 new high-wage jobs

• 5 management & administrative positions

• 7 sales positions

• 81 engineering positions

• Each category ave salary > prevailing wage

• Eligible for $4,000 per job

• 93 jobs X $4,000 = $372,000 total QTI

• State share = 80% = $297,600

• Orange County share = 10% = $37,200

• City of Maitland share = 10% = $37,200

• Paid over 6 years after jobs are both created and maintained

• First Orange County QTI payment = $1,800 in FY 2012-2013

QTI Incentives

• Approval of a City of Maitland resolution committing to pay 10% of QTI

• On an annual basis, award by the State of Florida of tax refunds under QTI

• Appropriation by the BCC each year authorizing a QTI payment.

• Payment by AcAeSoftware and its parent company of Orange County property taxes due for the calendar year in which payment is requested.

Orange County QTI Payments Contingent Upon:

Tracy Turk

Metro Orlando EDC Project Manager

William BastenCEO, AcAeSoftware, LLC

Thank you…

Approval of Resolution of the Orange County Board of County Commissioners regarding AcAeSoftware, LLC Qualified Target Industry Tax Refund.

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