by Bradley Parsons
Staff Writer
A deal that would use $3 million in City incentive money to keep about 300 manufacturing jobs in Jacksonville moved a step closer to reality this week and some City leaders think it could set a trend.
The deal would give Gerdau Ameristeel US Inc. a $3 million grant that would allow the Baldwin steel mill to update its operation. Without the grant, the firm might have to shut down the mill, erasing 281 jobs, the Jacksonville Economic Development Commission has been told.
The JEDC has been hesitant in the past to provide incentives to keep jobs, preferring to bring jobs to Jacksonville or create new jobs. The deal was withdrawn from consideration at an October 2004 JEDC commission meeting amidst several commissioners’ concerns that the deal would have set a bad precedent.
The deal was approved at a later meeting and just received unanimous approval from the City Council’s Finance Committee. It still requires approval from the full Council.
Neither the City Council nor the JEDC is thrilled with spending City money to keep jobs. But similar situations could be coming as the competition for manufacturing jobs becomes more fierce, said City Council member Lad Daniels.
“I think we’ll see more companies coming forward with capital needs like this one,” said Daniels.
Although the City is uneasy with incentives to maintain jobs, there’s growing acceptance of the practice in certain situations.
In Ameristeel’s case, the company was looking to close one of its mills in the Southeast. The municipality that couldn’t come up with the incentives was going to be the loser, said Daniels.
Similar sentiment has been heard during the JEDC’s numerous workshops as the commission works to overhaul its incentive policies. In situations like Ameristeel’s, there’s little difference between saving a job and creating a job.
The counter argument was voiced at the October meeting by
commissioner Brad Glass of The Auchter Company, who said Ameristeel was a good company but offering the City a bad deal.
Providing the incentives could start the City down a slippery slope, he said.
“We don’t want to set a precedent where companies come to us whenever they’re facing layoffs,” said Glass. “It’s a situation I could face in my own company. All of a sudden we’re facing tough times; should I come here looking for help?”