State ups recruitment ante

The Legislature gets on board with the governor by approving $387-million in incentives to draw high-wage employers to the state.

The Florida Legislature wrapped up last week by approving $387-million in new economic incentives. The goal is to generate jobs beyond the modestly compensated Florida standbys of hammering together homes, manning call centers or donning a mouse suit.

It's about 60 percent of the incentives wish list Bush requested in February - $630-million - but few are in the mood for complaining this week. The keystone is the $200-million Florida Innovation Incentive Program, which will hand cash to specially targeted high-tech companies that create at least 1,000 jobs and invest $500-million.

"This really is the milestone year for us, to be honest, because there is clearly recognition from the Legislature that strategic economic development needs a strategic tool kit," said Lisa Nason, vice president of Enterprise Florida, the state's semiprivate economic development agency.

State universities will get $100-million to collaborate on research and development with private industry. Half was earmarked for specific universities, with $8.5-million to the University of South Florida.

An additional $45-million will replenish Florida's Quick Action Closing Fund, designed to provide ready cash to retain or attract companies other states might be drooling over. A further $42-million goes to the space and aeronautics industry, mostly for enticing whatever companies build the Space Shuttle's successor.

Despite complaints from some Democrats that the new incentives place too much power in the executive branch Bush and future governors need only consult the head of the Senate and House, the bills passed overwhelmingly and await Bush's signature.

Business recruiters for the Tampa Bay area offered guarded praise. Tapping the fund comes with one big spoiler: They will have to match every dollar pulled from the $200-million innovation fund with a dollar of local subsidies.

When you start talking about projects on the scale of the $369-million Bush pledged to build a satellite of Scripps Research Institute in Palm Beach County, few localities could come up with such a sum in a snap.

"We're not going to be able to come up with $100-million to match anything,'' said Mike Meidel, Pinellas County's economic development director.

One of the most frequently used existing incentives, tax rebates distributed through the Qualified Target Industry program, requires only a 20 percent local match.

In any case, Meidel's not sure Pinellas has enough land to accommodate companies hiring the mandatory 1,000 employees (or 500 employees if the company locates in an Enterprise Zone, brownfield or designated rural area).

"That's tough for Pinellas County. We just don't have that much land to put 500 jobs," Meidel said.

One of Meidel's counterparts, Bob Abberger, isn't worried about land. But he frets about how stiff the competition will be for the $200-million. One or two deals could consume an appropriation that's supposed to last several years, said Abberger, chairman of the Greater Tampa Chamber of Commerce's Committee of 100.

Hillsborough County will continually have to tug at the hem of Enterprise Florida, which administers the incentives, or risk losing out.

"You'd hate to miss a key high-wage job creator because you weren't in the pipeline,'' Abberger said. "We've got to enjoy our success. This is a major first step. The devil's in the details."

Enterprise Florida's Nason insists the incentives package puts Florida even with competitors such as Texas and New York. Last year, Texas created a $200-million Emerging Technology fund, and New York spent $210-million to land an R&D complex for microelectronics firm International Sematech.

One tool available in New York that Bush failed to get this year was $75-million for a venture capital fund to provide seed money for high-risk startups. The Legislature balked.

Florida startups rank among the worst at attracting venture capital. About a year ago, MoneyTree reported Florida companies collected just 0.5 percent of $5.8-billion distributed nationally.

"It has been a tougher one to sell," Meidel said of the venture fund. "It's on the financing side rather than direct job creation. The Legislature focused on getting immediate results."

If the incentives can snatch biotech bigwigs, defense contractors or banking headquarters from the likes of Charlotte, N.C., New York or Austin, Texas, expect Tallahassee to consider it money well spent.

James Thorner can be reached at thorner@sptimes.com or (813) 226-3313.

AT A GLANCE

A breakdown of the $387-million in incentives approved by the Florida Legislature last week:

* $200-million, Florida Innovation Incentive Program: Cash subsidies to specially targeted firms employing 1,000, investing $500-million and paying 130 percent of the average wage.

* $100-million, World Class Scholars, Centers of Excellence and other university-based programs.

* $45-million, Florida Quick Action Closing Fund: Ready money to retain and attract sought-after businesses.

* $42-million, Space Florida: Eighty percent of the money will pay for infrastructure to land the Crew Exploration Vehicle, the successor to the Space Shuttle.

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