Deutsche Bank seeks incentives to add 300 jobs: Requests more than $1.9 million in City, state incentives
Deutsche Bank is seeking an incentives package of more than $1.9 million from the City and state to create 300 jobs and expand its administrative support and investment banking functions, according to legislation filed Thursday with Jacksonville City Council.
The legislation details an agreement between the City and DB Services New Jersey Inc., DB Services America Inc. and Deutsche Bank Securities Inc. for the company to expand at its 5022 Gate Parkway location.
The incentives package includes a Qualified Target Industry Tax Refund, including a High Impact Sector Bonus, of a combined $1.8 million from the City and state.
Of that, the City would pay up to $360,000, or 20 percent, with the state paying the remaining $1.44 million, or 80 percent.
The City also would provide a Revenue Enhanced Value grant of $140,000. The grant would be paid by the City over five years and is used to refund taxes on property and investments made by the company.
Combined, the City's financial support would be up to $500,000.
Deutsche Bank also proposes a capital investment of $10 million, which would include leasehold improvements and the installation of furniture and equipment on the site.
The 300 permanent jobs that would be created have an anticipated average annual salary of $62,063.
The job-creation schedule shows 50 jobs created in the first year by Dec. 31, 2014; 75 additional jobs created by Dec. 31, 2015; and 175 more jobs created by Dec. 31, 2016.
The company said it has 1,349 permanent jobs, so the additional would boost that to 1,649 jobs.
As part of the clawback provisions, which are the provisions designed to protect the City's investment, the City has no obligation to provide "local financial support" for the jobs if the average wage is less than 90 percent of the $62,063.
The legislation will be introduced Tuesday to Council.
The deal exceeds the $300,000 City-funded threshold to be approved Tuesday as part of the fast-track economic development approval process. The fast-track process would allow it to be approved in two readings, which would add two weeks.
A project summary from the Office of Economic Development, which provides additional project details, was not immediately available.
As the Daily Record reported in January, the company has been making plans to renovate almost 9,000 square feet of office space at the Gate Parkway location for its Global Technology command center.
At the time, a spokeswoman said the company was not prepared to make a formal announcement until later in the quarter. The first quarter ends March 31.
Plans filed with a building-permit application show a $420,000 build-out in Building 100 at the location, where Deutsche Bank has its more than 150,000-square-foot operations and service center.