Excerpt from MCTA e-newsletter September 4, 2024.
A presentation was given by a representative of PSM which is a subsidiary of Hanwha Company, a Korean conglomerate. PSM originally started in Stuart in 1998 and later relocated to Jupiter. They manufacture turbines for electricity generation. They have been through several owners, Hanwha being the most recent; however, the relationship with Hanwha seems to be a good fit. The competitors to PSM are GE and Siemens, who have 80+% of the market.
PSM has developed a turbine that can spin down to lower RPM’s when the demand for power decreases without increasing emissions. In addition, the competitor’s turbines can only decrease by 25% whereas PSM’s product can reduce its RPMs by 75% without an increase in carbon emissions. PSM’s business is growing and they have a need to expand their operations. After reviewing 15 locations, they want to expand in Martin County.
In 2010, Martin County adopted by referendum, re-affirmed in 2020 to offer companies a tax abatement for a three-year period. This abatement only applies to the General Fund Taxes and not the special district taxes. PSM will be applying to the county on September 10. In order to receive the abatement, the company must commit to a capital investment. PSM is committing to investing $5.8 million in tenant improvements in the 185,000 sq. ft. it will be leasing in the South Florida Gateway buildings and investing another $11.3 million in equipment. They anticipate employing 101 new jobs with an average salary of $74,000/year when fully operational.
Is this a good deal for Martin County?
Estimated Abatement is $386,000
Despite the abatement, $1.2 million in taxes will be generated for the Fire-Rescue, Parks and Rec, School District, Children’s Service Council, etc.
Yield: It is approximately a three to one return on investment
Answer: Yes
This is the first time since its enactment that the Martin County Toolkit tax abatement incentive has been utilized. It appears that this project is a great first start. We hope the commissioners see it that way on September 10th!
