Because it fits all the targets — high wages, financial services, global identity and a Downtown location — the city and state are asked to provide $1.8 million in assistance to a confidential company to bring 123 jobs to Jacksonville.
The city Office of Economic Development filed legislation Wednesday with City Council seeking approval of the city’s share of the incentives.
Unless another deal is submitted within two weeks, the resolution, 2015-446, could be the last economic development project filed by the administration of Mayor Alvin Brown.
Brown was defeated in the May general election by Lenny Curry, who takes office July 1.
In a statement, Brown said his administration is “excited another business sees opportunity in our city, especially Downtown where we continue to see investment. “
It also could be one of the first deals consummated by Curry and the new Jacksonville City Council. The 19-member council comprises 11 new members and eight incumbents.
Referred to only as Project Post, the company is considering Downtown Jacksonville and at least one other city to establish a new global banking shared services office.
Project documents say it does not have a presence in Jacksonville now. It is described as a large international banking and finance company.
Documents did not identify the other Southeastern competitor city or indicate a targeted Downtown Jacksonville location.
The project parcel was described only as a “to be determined site” in Duval County, although the project summary specified Downtown.
Citing a Florida statute, the office said the company requested it remain anonymous until it announces its chosen site.
“Project Post” would establish the office by the end of the year and create 86 jobs by year-end 2016 and 37 more in 2017.
The “highly skilled” financial accounting and management jobs would pay an average of $64,356 a year, plus benefits of $20,000.
Excluding benefits, that annual payroll would reach $7.9 million.
The requested incentives break down like this.
Project Post asks for $393,600 in city incentives and $1.37 million in state assistance.
It seeks a Qualified Target Industry grant of $6,000 for each job, split 20-80 between the city and state; a training grant of $2,000 per job from the city; a Quick Response Training Grant of $2,300 per job from the state; and a $500,000 Quick Action Closing Fund award from the state.
All total, the city would pay $393,600, comprising $147,600 for the QTI rebate and $246,000 for the training grant.
The state’s $1.37 million would consist of $590,400 for the QTI refund, $282,900 for the training grant and the $500,000 closing fund.
Project Post pledges more than salaries, however.
It also said it would invest at least $3.1 million in IT, equipment, furniture and real estate improvements. Those real estate improvements alone would be $2.2 million.
The project summary says the investment would generate more than $1 million in taxes over 20 years.
While documents didn’t say how much office space the company would need, a financial front-office operation with 123 employees generally would use about 25,000 to 31,000 square feet of space, depending on the needs of each position.
That would be readily available Downtown, where the office vacancy rate has been running above 20 percent.
Financial services is a targeted industry both for Jacksonville and Florida.
The Office of Economic Development said the incentives are the material factor in Project Post’s decision to establish its operation Jacksonville.
The legislation will be introduced to council on Tuesday, considered by the Finance Committee on July 21 and return to the full council on July 28.
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