CITY OF ORLANDO
COUNCIL AGENDA ITEM


Items Types:
Economic Development
For Meeting of:
December 9, 2013
District: 5 From:
Contract ID: Document Number:
Exhibits: Yes On File (City Clerk) : Yes Draft Only: No
Grant Received by City?: No

Subject:
TravelClick, Inc. Qualified Target Industry Tax Refund Resolution (Phase II)

Summary:
Company Overview

TravelClick, Inc. (TravelClick) is the leader in hotel ecommerce solutions, providing a continuous flow of high-value online bookings to hotels worldwide. As a one stop shop, TravelClick offers market intelligence, distribution, and digital marketing solutions delivered with personal attention and local market expertise. 

Expansion Plans

On March 25, 2013, the Orlando City Council approved a Qualified Target Industry (QTI) Tax Refund Program Resolution for the creation of 252 new jobs, assuming the program’s required local financial support from Orange County Government for the establishment of a TravelClick sales and service center. TravelClick moved into a larger location at 501 W. Church Street in Downtown Orlando’s Parramore Community in September 2013.

TravelClick is considering a second phase of workforce expansion in response to continued growth. The company currently has 265 employees in Florida. If the Qualified Target Industry (QTI) program incentive is made available to the company, TravelClick will create another 150 new to Florida jobs by December 31, 2016, paying an annual average wage of $47,701, which is at least 115% above the Orange County annual wage. The average value of benefits that will be available to employees is $11,890, which includes health insurance, paid leave, 401K match, disability, employer paid taxes and unemployment taxes. TravelClick’s total capital investment is estimated to be $1.5 million in equipment and construction. In addition to the City of Orlando, the company is considering Chicago and Atlanta for this expansion.

Qualified Target Industry Tax Refund Resolution

Under the QTI incentive, the State of Florida will provide a total of $6,000 per job to TravelClick, which includes the local financial support. City staff proposes to provide the local 20% QTI match - up to $1,200 per job created paying an average annual wage of $47,701. Under this arrangement, the City of Orlando would provide $180,000 as an incentive over a six-year period. City staff is recommending this match because TravelClick is: 1) a targeted growth industry; 2) is in the process of creating 252 new jobs under its existing QTI incentive; 3) has already invested more than $1.3 million in construction and equipment in Phase I; 4) creating an additional 150 new jobs; and 5) investing more than $1.5 million in Phase II.

Florida's QTI program includes strict accountability requirements of the applicant.

The pledge of funds pursuant to this resolution shall be contingent upon TravelClick meeting its job and wage obligations under the program and future budget appropriations by the Orlando City Council.


Fiscal & Efficiency Data:
Fiscal Impact Statement attached

Recommended Action:

Approval of the TravelClick, Inc. Qualified Target Industry Tax Refund Resolution (Phase II) and authorizing the Mayor or Mayor Pro Tem and City Clerk to execute same, subject to review and approval of the City Attorney's Office



Agenda Item attachment(s) on file in the City Clerks Office.

Note: All agenda items must be in the City Clerk's office by Noon Friday, six(6) business days prior to the regular Monday City Council meeting.

Contact: Kim King
Approved By:

Department Date and Time
Planning and Environmental Attorney 11/21/2013 4:38 PM
Budget Outside Routing Approval 11/22/2013 11:17 AM
City Clerk 11/22/2013 12:06 PM

ATTACHMENTS:
Name: Description: Type:
QTI_Resolution_-_TravelClick_(phase_2).docx Resolution Resolution Letter
TravelClick_FIS_(Phase_II).docx Fiscal Impact Statement Fiscal Impact Statement

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