by Bradley Parsons
Staff Writer
The City’s evolving approach to economic development has provoked frustration from those seeking City incentives. But the JEDC leadership says a deliberate approach is appropriate when deciding how to invest taxpayer dollars.
The Jacksonville Economic Development Commission approved Thursday a working draft of the commission’s new strategic plan designed to focus the City’s resources where they will bring the greatest returns in jobs, wages and tax revenue. The plan is a work in progress, but JEDC staff are already using it to evaluate potential incentive deals.
When the plan is complete, it should spell out specifically what kind of projects represent sound investments. But between now and then the plan is almost certain to change. JEDC executive director Kirk Wendland said the final draft will reflect the influence of the mayor’s office and City Council, both of which have yet to substantially weigh in.
The situation has several would-be developers, who have already sat through a two-month moratorium on incentives, wondering what they have to do to get City money. JEDC Director of Business Development Jean Miller said a good place to start is a business plan and a clean credit record.
“Because it is a fluid process, a final say so is difficult to give some of them,” said Miller. “But we are taking into account the recommendations that we’ve heard consistently. We want to see well-defined business plans and we want to see a well-thought-out approach to financing.
“If we’re going to invest taxpayer money, we want to be sure it’s going to be put to good use.”
In the past, the JEDC has acted as a business counselor to aspiring entrepreneurs, helping put together business plans or advising on where to get start-up capital. But impending staff cuts mean the JEDC will no longer be able to nurture suspect projects. One reason for the move to a more defined, objective incentive policy is to reduce the burden on staff, Wendland has said.
“Staff used to spend a lot of time looking at business plans, taking people through those initial steps to, but frankly, with a reduced staffing level, that’s not going to be practical,” said Miller.
When the JEDC cements its plan, staff should be able to quickly identify desirable projects and point applicants to specific reasons why their project did or didn’t make the cut. But now the staff is trying to make objective decisions using a changing document.
For instance, the JEDC wants to encourage development in distressed areas, but it’s still unsure how the City will determine where those areas are. Staff and commissioners are also rating projects on scorecards to determine their worthiness for incentives, but Wendland said those scorecards will likely change following an upcoming workshop.
Miller advised those who will seek incentives to take classes at a small business center so they enter the process prepared.
“Some people have the mistaken impression that we just give away money,” said Miller. “They should understand that we’re going to look at their application just like a bank would. We’re using tax money, so if anything our process should be more rigorous.”