by Max Marbut
Staff Writer
The Jacksonville Economic Development Commission has unanimously approved a proposal that if enacted by City Council would help an international manufacturing firm bring a minimum private capital investment of more than $122 million to Cecil Commerce Center. The new facility would also create at least 279 new full-time jobs at an average salary of $44,807, which is 115 percent of the statewide average.
Saft — an international manufacturer of high-performance batteries for industrial, transportation, defense and aerospace applications — is considering Cecil Commerce Center as the site of a new LEED-certified facility that will initially provide lithium-ion batteries for wind- and solar-based power generation plants. The company employs more than 4,000 people in 18 countries.
Jacksonville has some competition for the new business, however. Saft currently has similar facilities in Georgia, North Carolina and Maryland. JEDC staff recommended a package of incentives totaling $20.23 million with the state contributing $14,905,700. The package includes a Qualified target Industry tax credit, Brownfield and Enterprise Zone bonuses, a public service tax exemption and $3.4 million from the Governor’s Quick Action Closing Fund.
Of the public service tax exemption ($550,000 over a five-year period) JEDC Business Development Chief Lindsey Ballas said, “Utilities cost is very important to a manufacturer. Florida has higher utility rates than the competition so we have to overcome that disadvantage.”
In addition Saft learned last week it has been selected to receive up to $9.5 million in federal stimulus funds from the American Recovery and Reinvestment Act to partially reimburse Saft for building the new manufacturing plant wherever it is eventually located.
“We are the largest unknown battery company in the world. We don’t produce car batteries or other consumer products. We have made a business by taking projects others won’t,” said Thomas Alcide, president of Saft America, Inc. and general manager of the company’s Specialty Batteries Group. “But the battery in the exit sign outside this door is probably ours. If you watch satellite TV the satellite beaming down the signal probably has our batteries.”
He said a technical staff of about 30 people would be relocated to Jacksonville, but the reminder of the employees would be hired locally.
“Our studies show jacksonville has the kind of workers we’re looking for,” said Saft, adding the company has already begun preliminary recruiting efforts.
When questioned about the possible environmental issues that might be involved with a facility that manufactures batteries, Alcide said Saft would not be employing any processes that have not been used for years in its other plants.
“Some of our factories are located next to schools and churches. We have to be good stewards of the environment to do that for 25 years,” he added.
“This is an opportunity to plant a flag for Jacksonville in terms of new technology. We feel fortunate to have the opportunity to land this opportunity for Jacksonville,” said Ballas.
JEDC Chair Zimmerman Boulos commented that the State’s portion of the incentive package being offered was “A sizable contribution compared to other projects,” to which Ballas responded, “It’s important that we get our fair share of that money.”
Also on Thursday’s JEDC agenda was a proposal to approve a recommendation to seek legislation to take advantage of Recovery Zone (RZ) Bonds. The instruments allow state and local governments to borrow funds for eligible projects at a lower borrowing cost based on federal tax incentives. The bonds are not direct grants or appropriations like some stimulus programs.
Jacksonville was allocated $16.346 million in RZ Economic Development Bonds and $24.518 million in RZ Facility Bonds.
The economic development bonds may be used for public capital projects and for job training and education in recovery zones. Facility bonds may be used by private businesses for depreciable capital projects (buildings and equipment for example) for original use in active businesses in recovery zones.
Areas where the bonds could be used according to federal regulations include all of the former Cecil Field property, Enterprise and Empowerment Zones and the JIA and Downtown Community Redevelopment Areas.
JEDC Executive Director Ron Barton said, “We are the agency for these bonds. There is no financial obligation to the City or to taxpayers.” He also said the City Council has to approve any use of the bonds and that while talks are “exploratory” the JEDC is in negotiations with two companies that would like to take advantage of the bonds.
When the presentation concluded, commissioner Randle Shoemaker declared, “Why wouldn’t we do this?” to which Boulos responded, “Do I take that as a motion?”
He did, it was seconded and then approved unanimously. The proposal now goes to the Council for its consideration.
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