The Jacksonville City Council approved a $160,000 property tax incentive Dec. 8 for packaging manufacturer Malnove Holding Co. Inc. to expand its Jacksonville operation.
The council voted 19-0 for Resolution 2020-0727 to offer the Omaha, Nebraska-based company a five-year, 50% Recapture Enhanced Value Grant in exchange for creating 10 full-time jobs and a $7.4 million investment in machinery, equipment, furniture and fixtures.
The company built a 235,000-square-foot manufacturing facility at Imeson International Industrial Park in North Jacksonville in 1998, according to a memo from the city Office of Economic Development.
Malnove also leases 100,500 square feet of additional warehouse space.
According to a development agreement filed with the bill, Malnove is required to have the 10 jobs in place by the end of 2024.
The performance schedule in the agreement shows Malnove completing the equipment purchase and installation by Dec. 31, 2022.
Council amended the bill Dec. 8 to include a clawback that allows the city to recoup the $160,000 if the jobs are not created.
A city economic development office legislative fact sheet says the proposed incentive is a material factor in Malnove’s decision to expand in Jacksonville rather than at its manufacturing sites in Omaha or Clearfield, Utah.
The fact sheet calls the jobs entry-level. The positions would pay $36,500 per year plus benefits, which does not meet minimum wage requirements for REV Grants in the city’s public investment policy. Council waived the rule by approving the bill.
Businesses requesting REV grants are required to offer wages equal to Florida’s average annual wage of about $49,000, according to city Director of Economic Development Kirk Wendland.