Deutsche Bank seeks incentives to add 300 jobs
Deutsche Bank is seeking an incentives package of more than $2 million from the City and state to create 300 jobs and expand its administrative support and investment banking functions, according to legislation filed Wednesday with Jacksonville City Council.
The legislation details an agreement between the City and DB Services New Jersey Inc., DB Services America Inc. and Deutsche Bank Securities Inc. for the company to expand at its 5022 Gate Parkway location.
The project summary says the company is proposing to renovate and lease an additional 30,000 square feet of existing space at the location, where it already occupies 155,000 square feet within the Meridian Office Park.
Code named Project Blue Skies, the project has an incentives package that includes a Qualified Target Industry Tax Refund, including a High Impact Sector Bonus, of a combined $1.8 million from the City and state.
Of that, the City would pay up to $360,000, or 20 percent, with the state paying the remaining $1.44 million, or 80 percent.
The City also would provide a Revenue Enhanced Value grant of $140,000. The grant would be paid by the City over five years and is used to refund taxes on property and investments made by the company.
According to a project summary, the state also is offering $140,000 from the Governor's Quick Action Closing Fund, which the City will not contribute toward.
Combined, the City's financial support would be up to $500,000.
Deutsche Bank also proposes a capital investment of $10 million, which would include leasehold improvements and the installation of furniture and equipment on the site.
The 300 permanent jobs that would be created have an anticipated average annual salary of $62,063.
The job-creation schedule shows 50 jobs created in the first year by Dec. 31, 2014; 75 additional jobs created by Dec. 31, 2015; and 175 more jobs created by Dec. 31, 2016.
The company said it has 1,349 permanent jobs, so the additional would boost that to 1,649 jobs.
As part of the clawback provisions, which are the provisions designed to protect the City's investment, the City has no obligation to provide "local financial support" for the jobs if the average wage is less than 90 percent of the $62,063.
The legislation will be introduced Tuesday to Council.
The deal exceeds the $300,000 City-funded threshold to be approved Tuesday as part of the fast-track economic development approval process. The fast-track process would allow it to be approved in two readings, which would add two weeks.
In January, Michael Drexler of Deutsche Bank previewed the company's investment banking growth at the Association for Corporate Growth North Florida Chapter's annual "Ten Ahead: Predictions for the Next Decade."
Drexler shared his views about "The Migration of Business from High Cost Urban Centers."
He said Deutsche Bank in 2010 moved 10 investment traders to Jacksonville and the move worked out so well that there were 220 investment bankers there by January and that number "should double in the next 18 months."
"We realized we needed to reorient … to a broader group of people," he said.
Drexler said Jacksonville was attractive because Florida does not impose a state income tax, it is a two-hour flight to New York and offers a quality of life.
"I've been here 18 months. I think from a business perspective the advantages of Jacksonville are quite profound," he said.
Drexler said the City and the state have been "extremely accommodating" in Deutsche Bank's expansion in Jacksonville.
Digital Risk seeks $300,000 from OED fund for 300 jobs
Digital Risk LLC is requesting $300,000 from the Countywide Economic Development Fund Grant to create 300 jobs to expand its Southside operations or move to a larger facility within Duval County.
The Orlando-based risk analytics company opened a Southside office and in 2010 at 5011 Gate Parkway, Building 200, Suite 200, with the assistance of $525,000 in City and state incentives for 175 jobs.
The company is a "next-generation portfolio management solutions provider to the residential mortgage industry" and provides consulting services to mortgage holders, according to the project summary.
Called Project Vitals II, the company proposes to hire 300 more people with the assistance of the countywide economic development fund that became effective upon Mayor Alvin Brown's signature during a Wednesday afternoon news conference.
The jobs would offer an average annual salary of $49,820.
The company also is considering its locations in Maitland and Boca Raton for the expansion.
Under the grant's guidelines, the company will qualify for a $1,000 refund for each new job it creates per year, not to exceed $75,000. The grant will be partially paid beginning in the first year after job creation and would end four years after, on or before Dec. 31, 2017.
The project is expected to represent an estimated $2.5 million in capital investment by the company, according to project documents.
In addition, the company must maintain a Quick Action Closing Fund agreement it signed with the state June 2012 in connection with creating the initial 300 jobs.
As part of that agreement with the state, Digital Risk agreed to create 1,000 jobs in Florida at an average wage of $49,820 plus benefits by Dec. 31, 2017.
According to project documents, the company has 204 existing jobs that must be maintained, which would then mean a total of 504 permanent jobs.
If it does not comply, the incentives would be reduced equivalent to the difference in jobs. The documents provide an example of a 10 percent job shortfall equating a 10 percent reduction in the grant payout.
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