The City of Oakland Park has entered into Brownfield Site Rehabilitation Agreements with Broward County that provide access to financial incentives to facilitate remediation of polluted sites. The Voluntary Cleanup Tax Credit (VCTC) program allows the City to recapture costs associated with remediation efforts. As the City does not pay corporate income tax, the recapture of costs is accomplished by selling the state corporate income tax credits on the secondary market.
The City has worked with the Goldstein Environmental Law Firm to successfully navigate through the VCTC program for the West Dixie Lots and Public Works Campus remediation efforts. This summer, the City was issued tax credits for expenditures that occurred during the 2019 and 2020 calendar years. Tax credits in the amount of $283,666.75 were issued for the West Dixie Lots and $99,596.15 for the Public Works Campus. The total combined value of $382,262.90 in tax credits can be sold on the secondary market.
The City has engaged the services of a placement firm, Fallbrook Financial Services Company, to identify potential purchasers of the recently received tax credits on the secondary market. The City can generally expect to receive $0.90 on the dollar, meaning that it can anticipate around $353,000 from the sale of these certificates. The placement firm receives a portion of the proceeds, which is anticipated to be approximately $7,700. Net proceeds would be approximately $345,300.
By way of this agenda item, it is requested that a resolution be adopted that provides the City Manager with the authority to enter into sale and assignment agreements for Florida Voluntary Cleanup Tax Credits issued to the City of Oakland Park. A sample agreement is attached for reference.