SAFT America gets Finance approval


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  • | 12:00 p.m. September 1, 2009
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by Mike Sharkey

Staff Writer

A Cecil Commerce Center project that will create 279 new jobs over the next seven years was given the go-ahead by the City Council Finance Committee Monday.

SAFT America, Inc. plans to build a lithium battery manufacturing plant at Cecil with virtually no public dollars. The project does involve several grants and tax credits and exemptions, but the company isn’t asking for any cash.

The Jacksonville Economic Development Commission recently approved the project. The City — through qualified targeted industry credits, revenue grants, public service tax exemptions, an economic development grant and the sale of 12 acres for $1 — is making an investment of $5.3 million.

Council member Daniel Davis, whose district includes Cecil, said the project is good for the entire area.

“This is not a Westside or a Northside bill. It’s a regional bill,” said Davis, adding he recently met with representatives of SAFT in Washington, D.C. “This is good for all of Northeast Florida.”

Finance member Bill Bishop agreed.

“This is the kind of stuff we need every day,” said Bishop. “It’s a good, clean industry. We need an industrial base in Jacksonville.”

The grants and tax credits are broken down as follows:

• City QTI tax refund contribution of $474,300 ($1,700 per job)

• A $3.3 million REV grant at 50 percent over 10 years

• Public tax exemption on electricity usage at $110,000 for five years

• A $1 million countywide economic development grant ($700,000 as a site work grant and $300,000 as a job creation grant)

When completed, the plant will consist of 143,500 square feet. The average annual salary, exclusive of benefits, will be approximately $44,897.

Lindsey Ballas, business development chief for the JEDC, said SAFT will begin construction as soon as possible after Council approves the incentives. She said once construction begins, the plant should be completed and operational in less than a year. Ballas also said SAFT has to hire 106 of the 279 new employees by the end of 2010.

In other news from the meeting:

• Finance member Ray Holt withdrew his legislation that would have reduced the salaries of the mayor, the city’s constitutional officers and all nonunion employees by 2 percent. Holt drafted the legislation and introduced it to full Council Aug. 11. During the first budget hearings two days later, Council President Richard Clark recommended an across-the-board 3 percent cut for all nonunion salaries and operating expenses.

“I held it (the legislation) a while to make sure (the cuts were made),” said Holt, adding at a recent Council personnel meeting, a 3 percent cut in Council salaries was approved. “We wanted to lead by example. My bill is no longer necessary.”

• A Division of Health Services will be created within the Jacksonville Sheriff’s Office Department of Corrections. This division will provide mandated medical, dental and mental health services to inmates which are currently being provided by the Duval County Health Department.

Gordon Bass, director of the Department of Corrections, said Sheriff John Rutherford expects the move to save the JSO money because the employees providing the services will become JSO employees and the work won’t be contracted out. He’s not sure, however, what the savings may be at this time.

During the current fiscal year, the amount budgeted for the Department of Health to perform these services is just under $10.2 million. Prior to this agreement, the Department of Health has budgeted $10.5 million. The JSO has submitted a preliminary budget of just over $10 million, resulting in a potential savings of $500,000 the first year.

• The Finance Committee also approved $127,772 for repairs and improvements to the floating docks in front of the Landing. The money will come from the Florida Boater Improvement Program, which is funded through boat registration fees. In Jacksonville, those fees amount to $200,000 annually.

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