Brevard County's previously approved $8 million incentive to rocket maker Blue Origin will be coming due in April.

But there now is a dispute among Brevard officials over whether the county can legally borrow the money so it can make its payment to Blue Origin.

The company has pledged to create 330 jobs by the end of 2026 at its nearly completed facility and at its related operations. The Blue Origin facility is at Space Florida's Exploration Park complex at Kennedy Space Center.

An orbital launch complex that includes development and construction of a launch pad and associated facilities also is part of Blue Origin's overall project.

Brevard County Clerk of Courts Scott Ellis — who would among those to have to sign the paperwork for the deal — said he questions the legality of the county borrowing money to pay the incentive to Blue Origin. Ellis plans to challenge the plan in court.

"It is unlawful for a government in Florida to issue bonds for operational expenses," Ellis said. "The 'grant' is clearly not a capital expense. The county has no property interest in the Blue Origin facility."

Ellis also said that, when the County Commission approved the incentives for Blue Origin in 2015, "there was no mention of issuing debt by either the North Brevard Economic Development Zone or Brevard County. Neither can issue debt for grants or operating expenses. Had debt been mentioned at the meeting, much more would have been debated a few years ago."

Blue Origin — founded by Jeff Bezos, the billionaire chief executive officer of Amazon.com — plans to create 330 jobs in Brevard County with an average wage of $89,000, and is making a capital investment of $205 million to $220 million.

If the county cannot secure the $8 million through borrowing, it has the option of paying off the incentive to Blue Origin over six years without borrowing money.

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However, North Brevard Economic Development Zone Executive Director Troy Post said that is not his preferred option, because it would reduce the incentive money available in the coming years for other projects that would create jobs in North Brevard.

The Brevard County Commission on Tuesday will decide whether to start a required legal process, in which it would ask a Circuit Court judge to rule that it is OK for the county to borrow money to make the cash payment to Blue Origin.

"Since the $8 million in borrowed funds would be payable to a private company as an economic incentive grant, the Florida Constitution require the county to establish ... whether the project to be funded serves a paramount public purpose," Brevard County Attorney Scott Knox said in an agenda report memo to county commissioners in advance of Tuesday's meeting.

That determination would be made by a Circuit Court judge, Knox said.

A resolution commissioners will consider related to the proposed borrowing contends that "the payment to Blue Origin serves a paramount public purpose, as the project will create significant new employment," increase the local tax base, expand and diversify the economy, "and otherwise increase and maintain the health, safety and welfare of the citizens."

As part of the process being considered Tuesday, the County Commission would need to authorize hiring bond counsel Nabors, Giblin & Nickerson at a cost not to exceed $25,000 to pursue what's known as a "validation suit," seeking the court's approval of the county borrowing the $8 million for Blue Origin's incentive. Commissioners also will vote on approving a resolution authorizing the borrowing.



If approved, the $8 million would be repaid from money generated by the North Brevard Development District. The money comes from property tax revenue from new commercial and industrial construction in North Brevard under a process the Brevard County Commission created in 2011 to help spur economic development in the area.

The North Brevard Economic Development Zone board and the County Commission in 2015 approved the $8 million incentive for Blue Origin. The trigger for Blue Origin receiving that money is issuance of a certificate of occupancy for the company's rocket manufacturing facility at Exploration Park.

Post said the office portion of that complex received its certificate of occupancy this week, which he believes starts a 120-day clock for Blue Origin to get its incentive. A certificate of occupancy for the manufacturing portion of the plans is expected to be issued soon, perhaps later this month.

Knox said in his report that the County Commission, in conjunction with the North Brevard Development District, had "agreed to make its best efforts" to pay Blue Origin the $8 million within 120 days of the certificate of occupancy being issued.

"As far as we are concerned, the project is absolutely on time, and we are highly confident that it will move toward its successful conclusion," said Greg Weiner, senior director of business development for the Economic Development Commission of Florida's Space Coast, which helped craft the incentive package for Blue Origin.

The County Commission approved the incentives in 2015 by a 4-1 vote, with then-County Commissioner Trudie Infantini opposed. At the time, Infantini said she voted no, partly because the incentive involved cash, rather than property tax breaks, as well as because she had concerns about the secrecy of the agreement with the company and about the lack of financial information she has received.

The North Brevard Economic Development Zone board voted 8-1 in 2015 to approve $8 million in incentives for rocket company

On Friday, the zone board unanimously approved an interlocal agreement with the County Commission as part of the process to go forward with borrowing money for the incentive. The County Commission will consider approving that agreement on Tuesday.

The Blue Origin facility will assemble 270- and 313-foot variants of the company's reusable New Glenn rockets, which will launch about 10 miles away at Cape Canaveral Air Force Station's Launch Complex 36. The factory also will function as launch control for Blue Origin's missions, due to the pad's proximity and advances in automation.

Blue Origin said it would create 145 jobs in Brevard by the end of 2018, another 145 by the end of 2022 and another 40 by the end of 2026.

The Exploration Park facility initially was expected to be 250,000 square feet, but turned out to be more than twice that size, at about 630,000 square feet.

Under the agreement with Blue Origin, the North Brevard Development District can pay off the $8 million over six years if it is unable to obtain financing for an $8 million one-time payment. Under that option, the first payment of about $1.38 million would be due 60 days after the certificate of occupancy is issued.

But Post said that would be nearly half of the $2.8 million a year NBEDZ receives in revenue from property taxes, and would hamper the zone board's ability to provide incentives to other companies that want to expand in North Brevard.

"It just means you can't do other deals for that period of time," Post said. "We don't want to be sitting on the sideline. We want to be in the game and compete for projects."

Post said the borrowing "is just a good vehicle to honor that commitment" to Blue Origin.

But Ellis contends the borrowing would be illegal, and that it is "insane" for the county to borrow money for a project in which it does not have a capital stake.

Ellis said his office plans to enter the case as an intervenor at some point in the process, noting: "We're going to be in court, one way or the other."

When the incentives were approved in 2015, the project was known as "Project Panther," but it was widely understood at the time that Blue Origin was behind the project.

Dave Berman is government editor at FLORIDA TODAY.

Contact Berman at 321-242-3649 or dberman@floridatoday.com.

Twitter: @bydaveberman

Facebook: /dave.berman.54

The details

Blue Origin's incentive will be discussed at the Brevard County Commission meeting that begins at 9 a.m. Tuesday in the commission chambers on the first floor of the Brevard County Government Center, Building C, 2725 Judge Fran Jamieson Way, Viera.