While no site was revealed, Deutsche Bank is asking for city and state incentives of almost $5.5 million to add 475 jobs in “multiple, to be determined locations” in Duval County.
The new financial jobs would boost the company’s Jacksonville payroll to 2,124 employees by the end of 2017.
Legislation calls for the city to pay $1.1 million of the taxpayer incentives. The state would pay for the remaining almost $4.4 million.
A city project summary says the financial services company, which leases the Meridian Business Park along Gate Parkway, expects to occupy a project site of 150,000 square feet of office space if the incentives are approved and the bank chooses Jacksonville for the expansion.
The mayor’s office filed a resolution Wednesday to be introduced to City Council on Tuesday. It wants to move quickly on the deal, asking for a two-reading passage as a fast-track bill.
“Our excellent business climate and world-class workforce encourages businesses like Deutsche Bank to increase their investment in Jacksonville. We look forward to welcoming new neighbors to our city,” Mayor Lenny Curry said in a statement.
Deutsche Bank promises to create the jobs by 2017, adding 75 by the end of this year and 200 more each during the next two years.
The company could start hiring before the deal is completed with the city and the state.
The draft Development Agreement dated Wednesday said the company might need to start recruiting, interviewing, training or hiring employees so it can start operations as soon as possible after the project is approved.
Deutsche Bank estimates it will invest $23 million in private capital into the project, comprising $16.3 million in tenant improvements and $6.7 million in technology, infrastructure, furniture and fixtures.
While the company didn’t specify in detail the types of jobs to be hired, it did say it would pay an average wage of $64,356, plus a benefits package of $18,020. That equals an anticipated annual payroll of $39.1 million for the new employees.
The city development agreement would be with DB Services New Jersey Inc., DB Services Americas Inc. and Deutsche Bank Securities Inc.
Deutsche Bank asks for a Qualified Target Industry tax refund from the city and state, with a “High Impact Sector Bonus”; a Quick Action Closing Fund and Quick Response Training Grant from the state; and a Recapture Enhanced Value grant from the city that is a local match for the closing fund.
The QTI refund is $6,000 per job, including $2,000 for the high-impact sector bonus. Under that program, the company will be paid the refund after it creates and jobs and pays the taxes. The city pays for 20 percent of that incentive and the state picks up the other 80 percent.
According to the agreement and legislation:
• The city will pay $1,109,000, comprising $570,000 for the QTI refund and up to $539,000 for the REV grant.
• The state will pay $4,372,500, comprising $2,280,000 for the QTI refund, $1 million for the closing fund and $1,092,500 for training.
The legislation requests a waiver of the city’s Public Investment Policy for the REV grant. That grant will equal 50 percent of the incremental increase in city and county ad valorem taxes paid on leasehold improvements and personal property at the project site by the company over five years.
The project needed to meet a minimum score on the city’s policy matrix, but the proposed legislation states the waiver is justified because of the $23 million in capital investment and 475 jobs. The legislation says the salary is at least 150 percent of the state average.
Deutsche Bank set up a Jacksonville operations center in 2008 with 1,000 jobs, assisted by city and state incentives. It expanded in 2012 and 2013, creating another 560 full-time positions. It received two more Economic Development Agreements in 2013.
The city’s Office of Economic Development project summary says Deutsche Bank has invested $32.4 million in private capital in Jacksonville and leases 130,000 square feet in Southeast Jacksonville. City spokesman Bill Spann said that was space on the primary campus.
Deutsche Bank has leased the entire single-story, five-building Meridian Business Park, which is about 200,000 square feet of space. It also leases another 110,000 square feet of space at Butler Plaza along Belfort Road. It’s unclear if Deutsche Bank would keep that space or relocate those functions to the new site to be leased.
However, with the additional project site, Deutsche Bank would lease at least 350,000 square feet of office space among its primary campus and the new location.
The project summary said in addition to Jacksonville, Deutsche Bank is evaluating sites that include New York and Jersey City, N.J. It said those markets have a more robust employment base for the financial services sector and offer aggressive incentive programs.
However, the summary said, “DB has been very pleased with its operations in Jacksonville.”
The project had been in negotiations as the confidential “Project Independence.”
The company, based in Germany, has said it will reduce the number of countries or local presences by 10-15 percent, while actively investing in the most relevant markets for its clients and core businesses.
It has stated several times that Jacksonville continues to be a critical component of its “location footprint in the Americas.”
Deutsche Bank opened the Jacksonville Global Business Service Centre in July 2008, followed by other businesses. In initiated front-office operations in 2010, including a trading floor that mirrors its New York operation.
Deutsche Bank also has a global IT command center in Jacksonville that monitors all bank elements throughout the world.
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