Company to Bring 450 new Jobs to Jax

[I-10east]

The Jacksonville City Council approved on Tuesday a $3.2 million incentive package for an unnamed company that says it will bring 450 jobs to the city.
The jobs, expected to pay an average yearly salary of $49,300, would be tied to the financial services industry, according to the city's Office of Economic Development. They would be created over the next three years.

The company is allowed to remain anonymous by Florida Law. The deal, labeled Project Omega, describes the company as a "global professional services firm."

The company is looking to move into existing real estate, said Kirk Wendland, the city's Director of Economic Development. The company plans to invest up $5.9 million in "real and tangible" property to support their move. The location hasn't been determined.

The incentives would be awarded through grants and tax refunds and be paid per job created. The city will pay up to $450,000 through tax refunds. The state would provide a $1 million grant, as well as up to $1.8 million in tax refunds.

If the deal is finalized, the city will announce the name of the company. There is no set date for that announcement to happen.

The council unanimously approved the deal.

http://jacksonville.com/news/2016-02-23/story/jacksonville-council-approves-32-million-company-bring-450-new-jobs

[UNFurbanist]

While I get the economic multiplier effect and that this is ultimately good for the Jax economy, is there a reason why we can push through 3 of these types of deals in the last 6 months and not fund something like the Laura St. Trio? Are they separate pots of money or is the developer looking for more than tax incentives? To me it just seems like we can spend $3 mil so effortlessly on jobs projects but its like pulling teeth to get funding for downtown development. What am I missing?

[Tacachale]

^Incentives like this are usually tax breaks and such that take effect once the company does what it was incentivized to do. The case here is that "Project Omega" will get a $450,000 local tax break, plus $1.8 million in state tax refunds and a $1 million grant from the state. The city's general fund doesn't have $1 million (let alone $3 million or more) to hand out at present.

[ProjectMaximus]

While I get the economic multiplier effect and that this is ultimately good for the Jax economy, is there a reason why we can push through 3 of these types of deals in the last 6 months and not fund something like the Laura St. Trio? Are they separate pots of money or is the developer looking for more than tax incentives? To me it just seems like we can spend $3 mil so effortlessly on jobs projects but its like pulling teeth to get funding for downtown development. What am I missing?

The developers you're referring to are generally seeking actual funds to complete their development, not just tax breaks.

[UNFurbanist]

Got it.