by Max Marbut
Staff Writer
The Jacksonville Economic Development Commission approved the two action items on the agenda at its Thursday meeting, one unanimously and one in a split vote.
Downtown Vision executive Director Terry Lorince appeared before the commissioners to present DVI’s 2011-12 budget and work plan.
DVI’s budget is part of the JEDC’s budget, which must be submitted to the mayor’s office each year.
DVI is funded by a 1.1-mill additional ad valorem tax levy approved by Downtown property owners in a 90-square-block Business Improvement District on the Northbank and Southbank. The City also contributes 1.1 mills based on the value of publicly-owned property within the boundary.
DVI produces events Downtown including First Wednesday Art Walk, the annual Downtown Church Tour and the Movies in the Park series, in addition to providing information and other services to Downtown stakeholders and those interested in living or opening businesses in the district.
The organization also provides streetscape cleaning and safety services via the Downtown Ambassadors, which were subcontracted in February, 2010 to Service Group Inc.
Lorince presented the budget showing $1.1 million in revenue and a contribution of $200,000 from DVI’s Special Reserve Fund to cover the organization’s $1.3 million in proposed expenditures.
Lorince said the budget she submitted marks the second year DVI has used reserve funds to balance the budget due to declining property values, down 21 percent in two years and therefore, declining ad valorem assessments.
“Now, more than ever, we believe our services are critical. We’re the little engine that could,” said Lorince.
“This is the third (DVI) budget I’ve voted on,” Commissioner Jack Meeks said. “I’m not comfortable rearranging the deck chairs on the Titanic.”
Meeks said he would “be more excited” to vote on a budget that would show what it would cost to make Downtown “clean and safe 24 hours a day and attractive.”
JEDC Executive Director Ron Barton said he agreed with Meeks’ position, “but reality is what we have to address,” referring to the current $65 million shortfall in the City’s budget for 2011-12.
Barton also referenced the new administration that will take office July 1.
“You can vote any number you want to, but the new mayor will adjust the number down to at least” the budget submitted at the meeting, said Barton.
When the vote was taken on the motion to approve the proposed budget Meeks said he would make a vote of confidence in DVI and its board of directors, but was the lone dissenting vote, saying he was “voting ‘no’ for the status quo.”
The commission approved a Qualified Target Industry tax rebate of $2.1 million for Kaman Aerospace Corp., which proposes to create 200 new jobs at an average salary of $46,000 plus benefits valued at $12,000 by Dec. 31, 2016.
The company manufactures components for military and commercial aircraft at its facilities at Imeson Industrial Park in Jacksonville and in Chihuahua, Mexico.
The total public investment in the project would be $3.19 million, with the City portion covering $651,000 and the state contributing $2.54 million. The City’s portion would cover both the QTI tax refund ($231,000) and a Recaptured Enhanced Value Grant ($231,000). The state’s QTI tax rebate portion, 80 percent of the rebate, would be $1.68 million. Other contributions include a Governor’s Quick Action Closing Fund worth $500,000 and Quick Response Training Program worth $360,000, both of which are contributed by the state with no local match.
The company is proposing to make a $28 million capital investment to expand its operation here.
Jacksonville Economic Development Commission Business Development Chief Lindsey Kimball said, “None of these incentives are front-end incentives. QTI is one of the safest programs we have.”
She also said the City entered into a similar agreement with Kaman in 2005 and “they were fully compliant.”
The commission approved the QTI proposal unanimously and sent it to City Council for its consideration.
The next meeting of the JEDC is 9 a.m. June 9 in the mayor’s conference room at City Hall.
356-2466