INDIAN RIVER COUNTY — A recent analysis of the county’s Local Jobs Grant program demonstrates that this incentive to grow jobs in Indian River County has proven successful. The county’s Local Jobs Grant program was created to provide financial incentives for targeted industries to locate or expand within Indian River County.
Bill Schutt, senior economic development planner with the Indian River County Community Development Department, reported to members of the county’s Economic Development Council that 171 new “wage-eligible” jobs were created thus far through the Local Jobs Grant program, generating $11,770,000 in new wages circulating throughout the local economy. Grant payments of over $779,000 have been made to date, based on new jobs created. The program began in 1996, with major revisions adopted in 2009.
The return on investment is impressive. For every dollar awarded, $22.26 in new income was generated locally through the new jobs created plus indirect and induced job creation. According to the applications filed by eligible firms, a total of 314 new jobs are anticipated over the next several years. Members of the County’s Economic Development Council pointed out that the County also receives an additional positive financial impact through property taxes and optional sales taxes received annually.
Initially adopted in 1996, the Local Jobs Grant program was not actively utilized by new or local firms. In early 2009, in response to recommendations made by the Indian River Chamber of Commerce Community Leaders Summit, the county made significant changes to the program. Commissioner Peter O’Bryan, economic development liaison to the Board of County Commissioners, spearheaded the effort to streamline the process, making it more effective and “business friendly.”
“History shows that not all new businesses succeed. And when companies fail, it can lead to plenty of negative comments on job incentive programs,” said Commissioner O’Bryan. “However,” he continued, “Indian River County’s Local Jobs Grant Program is performance based. So it provides a meaningful incentive to help a new business start, or an existing business grow, while protecting the taxpayers’ dollars. This makes the County’s Jobs Grant Program a great investment for our community.”
The Local Jobs Grant funds are paid out after the new jobs are created and filled for a year. Companies must create a minimum of five new full-time permanent jobs paying at least 75 percent of the county’s average annual wage, excluding benefits. The funds are paid through phases over a 5-year period. Specifically:
$3,000 for each new job created that pays 75 to 99.9 percent of the average annual county wage ($27,144.75 to $36,192.99); $5,000 for each new position created that pays from 100 percent to 149.99 percent of the County’s average annual wage ($36,193 to $54,289.49); and
$7,000 for each new position created that pays 150 percent or more of the County’s average annual wage ($54,289.50).
The Chamber’s Economic Development office facilitates the company’s Jobs Grant application and conducts its due diligence on the applicant as does the county attorney’s office. The application is then processed by County staff, reviewed by the Economic Development Council, then sent to the Board of County Commissioners for final consideration.
Helene Caseltine, the Chamber’s economic development director, noted that “Our Commissioners like the fact that the program is performance based. If the jobs are not created, and the company falls short of its anticipated goals, no funds are paid out. Plus, companies like it because the application process is pretty straight forward and very user-friendly.”
Schutt reported that while the program focuses on stimulating new hires, each wage qualifying job created by a company receiving a Local Jobs Grant results in an estimated 1.076 additional spinoff jobs created by other companies. For the 171 jobs created by companies receiving a Local Jobs Grant, approximately 184 spinoff jobs are created, for a combined 355 total jobs.
Based on the latest quarterly reports submitted to the County by companies that have received jobs grants, the 171 jobs created by those companies produce $11,773,031 in annual wages. Considering a wage multiplier of 89 percent (.89583) to account for wages paid to the additional 166 indirect and induced spinoff jobs, the total payroll for the combined 320 jobs jumps to over $22 million in new wages.
The Indian River County Economic Development Council meets monthly and is an advisory arm to the Indian River County Board of County Commissioners. The Indian River County Chamber of Commerce serves as the county’s designated economic development agency. The Chamber represents the business community by providing services, benefits and leadership for positive growth and change.
For more information on the county’s Local Jobs Grant program, and on establishing a business in Indian River County, contact Helene Caseltine at (772) 567-3491 or directored@indianriverchamber.com.