by Mike Sharkey
Staff Writer
In what was likely a record quick meeting lasting exactly 22 minutes, the Jacksonville Economic Development Commission helped pave the way for potentially two new headquarters for Jacksonville.
With the air-conditioning broken in the Ed Ball Building and a two-item agenda, the JEDC sprinted through two projects, postponed a presentation/seminar on public records, open meetings and City ethics and quickly adjourned until August.
The Commission did approve a deal that will help London-based Magenta Technology establish another North American headquarters Downtown. According to the project summary, Magenta is “seeking public investment through the state of Florida Qualified Targeted Industry (QTI) Tax Refund Program within Jacksonville’s Enterprise Zone.” Magenta plans to invest $400,000 in the office and expects to add about $1 million in annual payroll to the local economy within three years.
Businesses that qualify for QTI refunds don’t get up front cash incentives, but rather future tax breaks based on meeting certain performance standards. In this case, Magenta has pledged to create 11 new, full-time positions at an average wage of at least 200 percent of the statewide average. If those requirements are met, the State will fund 80 percent of the QTI refund up to $70,400 while the City will pay the remaining 20 percent, or up to $17,600 over four years.
“The cost to the City is negligible,” said JEDC Project Manager Joe Whitaker.
Magenta was founded in 1999 and has 160 employees worldwide and develops complex software applications for logistics and distribution industry businesses that need real-time solutions to supply chain logistics, scheduling, resource allocation, manufacturing and pattern recognition. London Stock Exchange-listed Eurovestech Plc. owns 44 percent of the company.
Magenta Executive Chairman Frank Lee didn’t just pick Jacksonville out of a hat. According to Whitaker, Lee is a pro bono lecturer at the University of North Florida, has been to Jacksonville several times and liked what he saw while he was here.
“He found Jacksonville friendly, energetic and he wants to do business here,” said Whitaker, adding Lee was also considering a location in South Florida. “Jacksonville was the perfect location. Jacksonville has a broad base of financial services and it’s a good location for him to expand.”
The 11 new positions will be phased in over three years, with four by the end of this year, four more by the end of 2008 and the final three by the end of 2009. Plans are to hire four sales executives and a technical vice president at annual salaries of $120,000. Four business managers will be hired at $80,000 a year as well as a marketer ($70,000) and an administrator ($40,000). The average salary of the 11 employees is projected to be $93,636.
The JEDC also approved the potential expansion of EverBank, which is in the final stages of acquiring Columbia, S.C.-based NetBank. EverBank already has 1,000 employees in Jacksonville in offices in Southpoint and Riverside Avenue.
“They are the eighth-largest bank headquartered in the state,” said JEDC Project Manager Lindsey Ballas. “The proposed acquisition of NetBank would make them the third largest bank headquartered in Florida.”
Like Magenta, EverBank is seeking a QTI refund of $360,000, of which the City would be responsible for up to $72,000. That refund is based on EverBank creating 120 new jobs with an average annual salary of $45,539.
EverBank is also considering Atlanta, Columbia, St. Louis and Islandia, N.J.
“This is a great project to help further the revitalization of the Brooklyn area of Downtown,” said Ballas.
EverBank Executive Vice President of Corporate Development John Surface said the company is waiting for regulatory approval to complete the acquisition of NetBank.
“We made the announcement about a month ago,” said Surface. “We could keep the NetBank operations in its current location or move them to existing EverBank locations.”
EverBank occupies 170,000 square feet in Southpoint with 800 employees. It has 50,000 square feet and two floors on Riverside Avenue. Surface said if EverBank relocates NetBank operations to Jacksonville, the personnel will be split between the two offices. He also said regardless of JEDC approval, EverBank will still consider the other cities as possible locations for its NetBank operations.
“We must close the acquisition,” said Surface. “That transaction should take place in September or October.”
The acquisition will allow EverBank to take over NetBank’s direct banking, small business financing and mortgage business. The acquisition will increase EverBank’s asset base to nearly $7 billion, its deposit base to nearly $6 billion and its customer base to over 550,000. EverBank will be the second-largest bank headquartered in Florida and the largest bank headquartered in Jacksonville.
In other news:
• JEDC Executive Director Ron Barton has opted not to replace Mike Sullivan’s position as manager of the Sports & Entertainment division of the JEDC. Everyone who applied for the position was recently sent a form letter explaining the situation.
“Due to recent property tax reform passed by the State Legislature and upcoming budgetary constraints, an internal reorganization has been conducted and the duties associated with this position have been allocated to existing staff,” said Barton in the letter.
Barton said the mayor’s office has asked him to refrain from commenting on the matter until the reorganization is made public.
• The broken A/C in the building also affected two other agenda items. Steve Rohan of the Office of General Counsel was asked to postpone his seminar on public records laws and ethics.
“If it’s my call, I’ll defer to next month,” said Rohan. “I understand there are budget cuts, but this is ridiculous.”
Barton passed on his monthly executive director’s report.
“Given the climate conditions, there is no director’s report today,” he said.
• JEDC Chair Bob Rhodes was excused from the meeting. JEDC Vice Chair Zim Boulos presided.
• The next JEDC meeting is set for Aug. 9.