A Jacksonville manufacturer would receive an incentive of up to $1.1 million to expand its operations under a proposal from the city Office of Economic Development.
In a memo and staff report scheduled for presentation to the Mayor’s Budget Review Committee on Feb. 7, the OED says the code-named company plans to spend $44 million in capital investment on a new location in Jacksonville after outgrowing its current site.
Identified as Project Rotunda in the documents, the manufacturer aims to nearly double the size of its operation by adding 240,000 square feet of manufacturing space. It plans to add 120 employees to its 150-member workforce over the next three years. The average salary not including benefits for the newly created jobs will be $62,000.
The incentive proposed by OED is a Recapture Enhanced Value grant based on 50% of the increase in real and personal property taxes that would be generated by the new site. A REV grant is a refund on ad valorem tax revenue generated by a new development.
OED staff says the company is being recruited by other locations in the Southeast and Texas.
“The Company would like to maintain its current employees as a compelling element in its decision to consider Jacksonville,” the memo reads. “However, the Company must also weigh the business opportunities associated with relocating its operation elsewhere with a lower cost of construction and less competitive employment environment.”
The memo states that the company is considering locations near ports and in areas where its products are used. The type of product is not identified.
Among terms of the REV grant, the company would be required to maintain the existing 150 jobs, complete its new facility by Dec. 31, 2027, and add 120 jobs no later than Dec. 31, 2028.
OED says the city will receive a return on investment for the REV grant of $4.19 for every $1 invested.