An economic development agreement proposal involving City and state incentives for Novitas Solutions squeaked by the City Council Finance Committee on Tuesday.
Novitas is an affiliate of Florida Blue, formerly Blue Cross and Blue Shield of Florida. It seeks $2.125 million in tax credits under the state Qualified Target Industry Tax Refund program as well as Brownfield and Enterprise Zone bonuses.
The legislation was approved 4-3, with committee Chairman Richard Clark, Vice Chairman Warren Jones and members Greg Anderson and Bill Bishop voting for the measure. John Crescimbeni, Bill Gulliford and Clay Yarborough voted against it.
Under the agreement, Novitas, which processes Medicare claims, would create 250 new jobs with salaries from $40,000-$60,000. The City’s share of the incentive package would be $425,000 with the state picking up the balance of $1.7 million.
The agreement was amended to reduce the capital investment requirement in the agreement from $10 million to $1 million.
Gulliford questioned the reduction on the basis of future revenue for the City.
“The City makes money on property taxes. I understand the need to create jobs, but companies come here and create jobs without incentives. We need to come up with priorities on how we invest,” Gulliford said.
Crescimbeni was concerned about who would be hired for the new jobs and if current Florida Blue employees might be shifted to positions at Novitas.
“I want to make absolutely sure these are new jobs, not recycled employees,” he said.
City Targeted Industries Coordinator Joe Whitaker said the agreement requires all new jobs, but if employees left Florida Blue to work for Novitas, they would count as new jobs under the terms of the agreement.
Jones suggested that a local “J-Bill” might be drafted and submitted to the Florida Legislature to amend the requirements for QTIs to protect the City from allowing a company seeking incentives to create a “shell game.”
Gulliford said he is concerned that the jobs might be temporary if Novitas were to move its operations to another city or state after the incentives are credited over a four-year period.
Requiring a company seeking incentives to make a significant capital investment as part of the agreement “motivates companies to stay and grow,” he said.
The proposal also was approved Tuesday by the Recreation, Community Development, Public Health & Safety Committee by a vote of 5-1, with Gulliford casting the dissenting vote.
Also, Gulliford, the recreation committee chairman, deferred a vote on the proposed anti-discrimination bill for a month.
On Monday, the Rules Committee also deferred its vote on the bill until July.
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