Economic-development tax-abatement programs in Fort Pierce, St. Lucie renewed by voters

Olivia McKelvey and Mauricio La Plante, Treasure Coast Newspapers
·2 min read
Construction crew members continue their work on the new Amazon warehouse at the Midway Business Park on Tuesday, April 12, 2022, in Port St. Lucie.

Voters in Fort Pierce and St. Lucie County may be wanting to create better, higher paying jobs and a more diversified local economy with their overwhelming renewal Tuesday of tax-abatement programs for another 10 years.

In Fort Pierce, District 1 and District 2 voters were asked to renew the programs. In District 1, 61% of voters approved the renewal, and in District 2, 54% of voters approved it, according to unofficial results from the Supervisor of Elections' Office. A total of 16 precincts voted on this issue.

For St. Lucie County, the renewal was approved with 54% of the vote.

The ad valorem tax-exemption program, first approved by Fort Pierce voters in 2002 and by county voters in 1992, provides performance-based incentives to encourage new construction, capital investment and job creation.

Prior coverage: Fort Pierce, St. Lucie County asking voters to renew tax-abatement program Aug. 23

Past referendums: Port St. Lucie voters approve renewal of economic-development tax-abatement program

School issues: St. Lucie voters may be asked to renew property tax to fund teacher pay, mental health

St. Lucie County Adminstrator Howard Tipton said voters approved the incentive because they know it’s beneficial to the local economy.

"What they’ve seen is that it’s been used to really boost the economic power of St. Lucie County, both for existing businesses and new businesses coming in,” he said Tuesday night.

Tipton said voters like that businesses have to meet certain standards to receive the exemptions.

“I think people understand that it’s a responsible way to go,” Tipton said. “It’s a performance-driven benefit. They have to build the infrastructure, the buildings and the equipment and then they get the benefit. It’s performance-driven. There’s no giveaways.”

State law requires the program be reauthorized by voters every 10 years.

The program does not affect homeowners' property taxes.

Companies still pay school and fire-district taxes and taxes assessed by agencies such as the Children’s Services Council and Florida Inland Navigation District.

Under a tax-abatement program, a company must meet requirements while it builds a new facility, hires people and purchases equipment. Exemptions could be revoked if a company fails to meet performance criteria.

In St. Lucie County between 2012 and 2021, 10 companies created 1,020 new jobs and were abated roughly $3.1 million in taxes through the program, according to records.

FedEx, Cheney Brothers and Walmart are examples of companies that were awarded incentives, such as temporary tax breaks, through the program in the county and in Fort Pierce.

Walmart, for instance, had exemptions for five years from 2014 - 2018 for its distribution center on South Jenkins Road in Fort Pierce, according to city records.

Its first year was tax free; it paid 10% of its property taxes in the second year, 40% in the third year, 60% in the fourth year and 80% in the fifth year.

Olivia McKelvey is TCPalm's watchdog reporter for St. Lucie County. You can reach her at olivia.mckelvey@tcpalm.com, 772-521-4380 and on Twitter @olivia_mckelvey.

This article originally appeared on Treasure Coast Newspapers: St Lucie County elections: Fort Pierce, St. Lucie voters renew tax-abatement