The Jacksonville Economic Development Commission Thursday sent to City Council a proposal to create 39 new jobs in an area of Jacksonville where the rate of unemployment is twice the county’s average.
Caterpillar Work Tools Inc. is seeking $117,000 in state and City incentives to create the new jobs at its factory at 5801 Highway Ave. in a neighborhood that currently registers an unemployment rate of 20.6 percent.
The incentives proposed are through the Qualified Target Industry Tax Refund program. The company, which already has 77 employees, agrees to pay an average salary of $39,859 plus benefits of $13,950 for the jobs, for an annual additional payroll of $2.1 million.
The state’s share of the refund would be 80 percent, or $93,600, and the City would be responsible for the remaining 20 percent, $23,400.
Caterpillar Work Tools Inc. General Manager John Hoffer said in addition to the new jobs, the company also plans a $3.9 million investment in building renovations and equipment purchases to support the expanded workforce.
The company manufactures parts including buckets and material handling arms for Caterpillar wheel loaders as well as a module that allows owners to interchange the parts to perform different tasks.
Hoffer said the domestic market for the products is strong and the global market also is growing rapidly.
“The market is absolutely exploding. We’re starting to export more through the port of Jacksonville,” he said.
JEDC Targeted Industries Coordinator Joe Whitaker said the City Council will be asked to approve the QTI proposal even though the average salary for the new jobs is below the 150 percent of state average required by the City’s public investment policy.
Commissioner Randle Shoemaker-Crump is serving on a JAX Chamber committee that is studying the existing public investment policy. She said it might be time to revise the policy, based on the current economic conditions.
“The state has its requirements, but Duval County at one time, for some reason, took the state requirements and added additional requirements. It’s all being evaluated,” she said.
The commission also approved a lease agreement for a 1,800 square-foot office building at Cecil Commerce Center.
The applicant, Sunrise Aviation Inc., partnered with Florida State College at Jacksonville to help provide flight training for students enrolled in the college’s Aviation Center of Excellence at Cecil.
JEDC Senior Specialist Ed Randolph said the company needs to expand its operations because of unexpected high demand for flight training from the community.
The lease is a one-year term with two one-year options at the market rate. Randolph said the company also plans more than $10,000 in improvements to the building, which is the smallest the City owns at Cecil Commerce Center.
Acting Executive Director Paul Crawford told the commission the audit of JEDC that was recently released was “really productive” and “set off a chain reaction of audit committees.”
Crawford said the JEDC remains active in pursuing business development as the department awaits final decision of the City’s reorganization of its economic and Downtown development efforts.
“We’re doing what we can with the 13 people we have. We have a lot in the hopper,” Crawford said.
He said staff is conducting its own evaluation of agreements executed by JEDC. “The deals are sound. The question is compliance,” he said.
Commissioner George Gabel, a partner at Holland & Knight, asked Crawford if staff could report to the commission concerning findings as the evaluations are conducted.
“So we don’t read about it in the newspaper,” said Gabel.
The next meeting of the JEDC is scheduled for 9 a.m. March 8 in Suite 400 at City Hall.
356-2466