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Incentives
Targeting Jobs
 Bertram Yacht factory |
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In fact, county tax incentives have recently prompted three large companies to remain and expand in Miami. Collectively, the three — Mobis Parts America, Goya Foods of Florida and Bertram Yacht — represent 800 jobs and several major building projects in the county.
Retention of existing companies has a “higher value,” relative to the recruitment of companies, says Frank Nero, president and CEO of the Beacon Council, an economic development organization that works with Miami-Dade County.
| Incentives Recipients |
| Goya Foods of Florida In Miami: Since 1976 Jobs retained: 293 Jobs created: 30 Capital investment: $26 million Incentives: $696,352, Targeted Jobs Incentive Fund paid over six years |
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Bertram Yacht In Miami: 45 years Jobs retained: 419 Jobs created: 150 Capital investment: $8.9 million Incentives: $1,001,953, Florida Qualified Targeted Industry Tax Refund, Targeted Jobs Incentive Fund incentives and Enterprise Zone refunds paid over six years |
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Mobis Parts America (subsidiary of Hyundai) In Miami: Since 2004 Jobs retained: 36 Jobs created: 12 Capital investment: $25 million Incentives: $692,643, Targeted Jobs Incentive Fund paid over six years |
Two years ago, the county persuaded Burger King to keep its headquarters in Miami-Dade County with an incentives package valued at $8.7 million, (including $3 million in state funds). The package was tied to performance tests and criteria, which included the company’s move into a new headquarters in Coral Gables. The company never moved into the building. It returned $3 million in state incentives and forfeited the county funds. Nevertheless, the initial availability of the incentives package prompted the company to stay, Nero maintains.
More recently, South Korean-based Mobis Parts America, an auto parts distributor, planned to relocate to either Virginia or Panama City. Using the Target Jobs Incentive Fund, the county will give Mobis a property tax refund of 80% based on $25 million Mobis is expected to invest in the county.
Some still dispute the value of incentives. Bruce Nissen, director of research at the Center for Labor Research and Studies at Florida International University, maintains that market fundamentals like the cost of living and quality of the local work force have a greater impact on a company’s decision than tax and other incentives. “Very seldom are incentives like this the determining factor in business location decisions,” he says.
