Economic development agencies remain unsure how changes to Enterprise Florida Inc. and the new $85 million Florida Job Growth Grant Fund will affect business recruitment to the area.
Enterprise Florida and the Department of Economic Opportunity will no longer provide money directly to businesses seeking financial incentives in exchange for jobs.
Instead, the program, created during a June special legislative session, funds infrastructure and workforce development programs.
Instead of providing direct incentives to companies that expand or relocate to the state, money from the fund must go toward infrastructure projects or job training.
“I will tell you that it’s frustrating to set it up in a way that makes it more difficult to close a deal,” said Jerry Mallot, president of the JAXUSA Partnership and executive vice president of JAX Chamber.
“We’re definitely delighted to have the funds to work with, however,” he said.
Mallot said, like other economic development agencies, JAXUSA would work within the rules to make sure Jacksonville was making the most of the funds.
“There’s a way to get it done, albeit a little harder, but there’s a way to do it without giving that money to a specific company,” he said.
Mallot said it was a “challenging legislative session” as top Republicans in the Florida House disagreed with Gov. Rick Scott about incentives.
In the past, companies like Amazon.com and General Electric have secured millions from the state in the form of tax rebates or cash paid out over time, a practice that opponents labeled “corporate welfare.”
A last-minute compromise between Scott and House Speaker Richard Corcoran came during a special session, resulting in the new Florida Job Growth Grant Fund.
Those incentives can only go to local governments, community and technical colleges, the Department of Economic Opportunity, Enterprise Florida and the Florida Department of Transportation who request it through proposals to the state.
From there, the governor can approve funding at his discretion.
Mallot said the backlash and the debate that followed made Florida look “out of touch.”
“Quite frankly, our reputation in Florida was impacted,” he said. “I will say, now that we know what we’re working with, I think this fund will help us get some of that confidence back.”
Bobby Payne, who represents Florida House District 19, said he was hesitant about the changes at first, given his 25 years with the Putnam County Chamber of Commerce.
“I had to make some difficult decisions,” Payne said about the legislative process.
“It was like standing in the middle of the road hoping I didn’t get hit by cars going in both directions,” he said.
Payne was in town Wednesday supporting Scott during a visit to Jacksonville to promote job growth.
His district includes parts of Clay and all of Bradford, Putnam and Union counties.
As a freshman in the House, Payne said he quickly realized that the changes were not about halting economic development, “but about everyone competing on a level playing field.”
“If I have a business, and the state incentivizes another business to set up across the street from me, I’m going to lose money and I’m probably going to wonder why I didn’t have access to that same money.”
Government agencies, community and technical colleges, and other economic development agencies can apply for funds via Enterprise Florida and the Department of Economic Opportunity.
“I think we came to a good compromise that will keep Florida the state businesses want to come to,” Payne said.
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