INDIAN RIVER COUNTY — When the Board of County Commissioners approved a jobs grant of up to $294,000 for an unnamed manufacturing company last week, it raised the amount of money committed under the jobs grant program to $2.6 million.
Created in 1996 as part of a package of economic development incentives, the program lay dormant for more than a decade.
It has gathered steam since 2009 when the amount paid per new job created in the county was increased, making the incentive, and the idea of opening or expanding a business in Indian River County, more attractive to employers.
Helene Caseltine, director of economic development at the Indian River Chamber of Commerce, who is in charge of getting word out about Indian River County’s economic incentives, says she gets 20 to 30 inquiries each month from companies looking to relocate.
“The county’s jobs grant program was probably key in our decision to locate here when we started the company,” says Jim Odom, president and CEO of NetBoss Technologies, Inc., a software and network engineering company that opened its headquarters in Sebastian in 2010.
“We were leaning toward launching in Brevard County because Harris Corporation, which I was involved with, is in Brevard, and I thought it might be easier to hire engineers up there,” says Odom. “But then the Realtor who was showing me property in Brevard mentioned Indian River County’s grant program.”
After a meeting with County Administrator Joe Baird and one of the commissioners, Odom decided to open his doors in Indian River County.
“We have 80 employees worldwide, including 52 who work at our facility in Sebastian,” Odom says. “We were approved for a jobs grant of up to $350,000 and we received our first payment in January.
“For a small company, cash is always a big issue in helping you be successful. Knowing you will get a little bump from the county is helpful.”
Because some of his employees live outside the area, only 36 NetBoss positions have received county support to date.
“Salary for those 36 jobs has been close to $4 million so far,” Odom says. “I think it has been a good investment for the county.”
Six companies have been approved for jobs grants in the past year, including three that relocated here and three that expanded existing operations.
Companies get $3,000 for jobs that pay at least $25,460, which is 75 percent of the county’s average annual wage of $34,000. They get $5,000 for each new job that pays at least the county average and $7,000 for jobs that have an annual salary of $51,000 or more, which is 150 percent of the average wage.
Companies do not get county money until jobs have been in place for a year, and even then they only receive partial payment. The full per-job amount is not handed over until workers have been collecting paychecks for three years.
“One thing everyone likes about the program is that it’s pay for performance,” says County Community Development Director Bob Keating. “There are no claw backs. We don’t have to scurry around and try to get the money back if the jobs aren’t created.”
According to public records, the manufacturer approved for a grant last week plans to have 10 employees in Indian River County by year end, add 15 more in 2013 and another 27 in 2014.
“The company currently has its manufacturing, shipping and assembly operations out of state, and its R&D in Orlando,” says Keating. “It plans to move assembly, shipping and R&D to Indian River County.”
Under the terms of the jobs grant program, the proposed employment figures qualify the company for a $268,000 grant.
Locating in the Enterprise Zone near the airport earns it a 10 percent bonus, for a total of $294,000.
Caseltine says the new jobs will pay an average of $35,000, eventually creating a $1.9-million annual payroll.
If the company sticks to its employment schedule, the county will make its first payment of $20,533 in fiscal 2013-14, followed by $52,433 in the next fiscal year, $98,266 the year after that, and $77,733 in fiscal 2016-2017.
The final payment of $45,833 will be handed over in fiscal 2017-18, if all goes according to plan.
“I think the jobs grant program is the best economic development incentive tool we have,” says Keating.
