Jacksonville could be in line for a couple of manufacturing boosts — one known, one new — in exchange for $1.68 million in taxpayer incentives.
A bill filed this week is more of an improved redo of one agreed to in 2014 for a Downtown icon.
The city seeks to terminate its past economic development agreement with Maxwell House that would have provided $425,000 in taxpayer incentives for 10 jobs and a $16 million expansion to add coffee and bag lines.
Instead, there’s a new deal on the table.
This one would provide $1.26 million to The Kraft Heinz Co. for a $30 million to $36 million investment to the Downtown building, infrastructure and machinery.
The differences in capital investment arise in discrepancies between the project summary and development deal.
Instead of 10 jobs, the company will create 40 new jobs by 2018 at an average wage of $54,828. The plant has 218 employees in Jacksonville and 40,000 worldwide, according to the project summary.
In the new deal, the city will provide a $1.04 million REV grant.
It would be paid over seven years at a 50 percent rate.
The state would give $220,000 through Qualified Targeted Industries and Quick Response Training grants.
Maxwell House has long been a part of Jacksonville’s history. The plant opened in 1910 and has been known for the lighted coffee cup on the side of the building and the aromatic coffee smell at various times of the day.
More than 25 years ago, Kraft was considering closing either the Downtown factory or one in Hoboken, N.J.
A “Keep Max in Jax!” campaign was organized and the company decided the Jacksonville location would remain open.
Project documents said Maxwell House is considering locating the proposed expansion in two other cities where they already have a presence and the incentives are a “material factor” in the Jacksonville decision.
A second economic development bill filed would provide $420,000 in city and state incentives for “an established but growing international company” to open its first 3D manufacturing printing facility in North America. The unidentified company designs, manufactures and markets surgical products.
Dubbed “Project Arnica,” the deal would also mean at least 25 jobs created over three years at an average wage of $70,000. The company has more than 1,000 employees worldwide.
The development agreement calls for the company to make a capital investment of $3 million. The project summary said the company is investing at least $5.3 million in information technology equipment, furniture and real estate improvements.
In return, the city would provide a Recaptured Enhanced Value grant of $125,000 paid over a six-year period. The grant would be equal to 50 percent of the incremental increase in property taxes paid on the improvements.
The state would pitch in $295,000. Of that, $225,000 would come through the performance-based Governor’s Quick Action Fund, while the remaining $70,000 would be from a Florida Flex training grant after the jobs are created.
Both bills will be fast-tracked through City Council.
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