Two City Council committees Tuesday approved an incentives agreement for Global Software Services Inc. to create 30 new full-time jobs at an average annual salary of $67,670.
Under the Qualified Target Industry Tax Refund program, the company that does business as Latitude Software will receive a total of $180,000 — or $6,000 per job — in refunds for creating and maintaining the jobs.
Under the agreement, the City will refund $36,000 and the state $144,000 for the deal.
The state’s portion also includes a “high impact sector bonus” of $2,000 for each job.
The company does business as Latitude Software at 7800 Belfort Parkway on the Southside and specializes in software used by the debt-collection industry, including banks and finance companies.
The deal is the first to come before Council since an audit concluded in December that the Jacksonville Economic Development Commission was “lacking in its administration and oversight of economic incentive agreements.”
Several finance committee members had questions regarding accountability measures for such deals, given the auditor’s report.
“I guess the concern I have, not specifically related to Global Software … is the recent findings from our auditors,” said Council member Clay Yarborough.
“How do we know and what security do we have that the dollars will be spent wisely and accounted for?” asked Yarborough.
“It unnerves me a little bit that we’re just moving ahead like nothing has happened and have this on our agenda when nothing has changed as far as I can tell,” he said.
JEDC Deputy Executive Director Paul Crawford responded that no money would be issued in the deal until a year after the jobs were created.
In addition, he said the JEDC is comfortable with the accountability of the QTI process through the state, which monitors such
deals.
He said problems identified in the audit were related to “recaptured enhanced value” grants.
“This (QTI) is a stable program and tool to use,” he said.
Crawford said the JEDC has increased its level of communication with the state on QTI deals to avoid problems with compliance.
Finance passed the measure 6-1 with Yarborough in opposition.
The Recreation, Community Development, Public Health and Safety Committee passed the item unanimousley.
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