by Max Marbut
Staff Writer
Usually, by the time a proposal is presented to the Jacksonville Economic Development Commission, JEDC staff has so thoroughly vetted the agenda item that the issue sails through the process with more congratulations than questions. At Thursday’s monthly meeting, the final results were one approval and one item deferred for want of more details.
It took only 15 minutes for the commission to hear and then unanimously approve a Qualified Target Industry Tax Refund for Adecco Group North America. The Zurich-based temporary staffing and employment services company purchased MPS Group in January.
The refund is tied to Adecco adding 100 full-time jobs to its Jacksonville operation, expanding from 236 jobs to 336 as it consolidates the professional services side of the business. Adecco Group’s North American operations are headquartered in Melville, N.Y., where the professional and commercial staffing divisions are currently based.
The new positions will have an average salary of $45,600, plus benefits, for an annual payroll of $4.6 million. The tax refund would be $3,000 per job amortized over a four-year period and refunds would start after the jobs are in place.
The state would provide $240,000 of the $300,000 refund, or 80 percent, while the City’s share would be $60,000.
In addition, Adecco plans a $300,000 capital investment for the expansion.
“This project helps us recruit and expand high-wage jobs at a time we need them most. The private capital investment will generate new ad valorem tax revenue,” said Lindsey Ballas, JEDC business development chief.
The Jacksonville operation has been at the Modis Building Downtown for 12 years, but following the sale, Adecco made the decision to move to the Deerwood South office park at Southside and Butler boulevards. Adecco Senior Vice President of Corporate Development Tyra Tutor said the decision was made for several reasons.
“We did look hard at Downtown, but Southside is closer to our employees’ homes. Also, we can fit on two floors in Southside but had five floors Downtown,” said Tutor.
“We were also paying for parking for our employees Downtown,” she added.
Ballas said another reason for the City to offer incentives to keep Adecco in Jacksonville is the company’s track record of philanthropy. MPS Group supported more than 20 local organizations through donations and volunteerism and Tutor said Adecco is continuing that tradition and “has embraced” supporting organizations.
“Adecco has increased the donations to the symphony and the Cummer Museum,” she said. “We will receive tickets which will be given to employees who will come Downtown for events.” Tutor said that will lessen the impact of the company’s move to Southside.
The proposal will be sent to City Council for its review and consideration.
The other item on Thursday’s agenda was a request to expand the JIA Community Redevelopment Agency by 755.21 acres to 15,000.21 acres.
The JIA CRA was created to encourage development and investment on the Northside to mitigate blighted areas. The JIA CRA was established in 1993 and since then the program has been instrumental in the development of the Tradeport and River City Marketplace, said JEDC Executive Director Ron Barton.
Funding for public-private partnerships for development are supported by designating a portion of the property taxes levied in the CRA. According to JEDC staff, $6.4 million in tax funding was generated in the JIA CRA last year, with a potential of $115 million over the next 20 years.
Based on the 2003 North Jacksonville Shared Vision Plan, the next step is to improve the transportation infrastructure, beginning with an access road linking Interstate 95 to the airport at a cost of $28 million. The second priority would be a flyover connecting I-95 to Airport Road at a cost of $65 million.
Widening Main Street and New Berlin and Pecan Park roads would be next on the list.
Barton said another element of approving the expansion and subsequent road projects would be to change the “mindset” concerning CRA funds. He said the funds have not been allocated for the past few years and have been returned each year to the City’s general fund, where the funds have been used to balance the City’s budget.
Barton said moving forward with the proposal would change the current policy of diverting the funds from development. “Sending the money to the general fund is a black hole,” he said, since the funds cannot be recovered and there’s no return on the investment.
“There is a load of money that’s been used to balance the budget that we needed for economic development,” said Barton. “As the economy rebounds, the mindset needs to change.”
Barton also said having the local funds designated for transportation improvements would be an opportunity to leverage available funds from state and federal sources.
Following several questions from commissioners concerning how the individual road improvements were prioritized, the commission voted to defer action on the proposal pending a presentation from the Florida Department of Transportation.
“I don’t mind deferring it,” said Barton. “I don’t think there’s going to be any money any time soon.”
356-2466