Economic Development News

Martin County stuck its toe in the water a year and a half ago, when county commissioners agreed to a handful of tax breaks and other perks for businesses that create high-wage jobs.

Despite an icy reception from naysayers who cried "corporate welfare," it turns out the pool wasn't all that frigid.

Now, the county is poised to jump in head first.

A new proposal from the Businesses Development Board of Martin County calls for more economic-development incentives, including a "deal closure" fund that would offer targeted companies cash, land and other enticements to bring new jobs here.

It's an ambitious move for a county that has long shunned big-ticket business incentives - even as counties to the north and south have funneled hundreds of millions of dollars into new industry.

"We're not proposing anything that is as aggressive as St. Lucie or Palm Beach County ... but it is more than what we have today," said Ron Bunch, executive director of the Business Development Board of Martin County.

In addition to the deal closure fund, the BDB is pushing: new job-creation grants of up to $5,000 per job; fee waivers for businesses moving into existing buildings; and property tax abatement, which would require a voter referendum.

Years ago, this would have sounded like a radical plan. Today, it's not. More than half of Florida's 67 counties now use some form of property tax abatement to lure new jobs.

Every incentive the BDB is proposing parallels an existing program already being used at the state level and in many other counties.

Yet there is one striking thing about the pitch: its funding source. Money would come from property taxes generated by a new solar plant that Florida Power & Light Co. is building in Indiantown.

The BDB wants at least half the tax revenue from the Martin Next Generation Solar Energy Center - some $1 million a year - to be pumped into an economic development fund that now has about $200,000.

I'll admit it: My first thought was, "This won't fly in Martin County. Not in this economy."

But the more I pondered it, the more I thought it might.

Because the incentive money would come from new property tax revenue, it won't be siphoned from existing needs. And because the FPL solar plant will not place a big burden on roads or schools, those tax dollars won't be missed as much as they otherwise would.

Most counties that offer economic development incentives pay for them using general funds or reserves - not hand-picked sources of property tax revenue. Martin's proposal is outside-the-box, and it just might work.

Still, there are risks.

If the Martin County Commission approves the proposal (which Bunch hopes to officially present to the board in a month or two), the BDB wants to add more property tax revenue sources in the future.

If that happens, commissioners would have to make sure the money isn't stripped from new projects that do in fact strain local roads and schools. That will be especially important as growth rebounds in our region, as a University of Florida study predicted last week.

The county also would have to be vigilant about making sure companies adhere to job-creation standards they promise. If the firms don't, they pay back the incentives.

There's sure to be resistance to the BDB proposal, as there was in 2008 when commissioners endorsed the more limited incentives. Some longtime business owners and residents simply don't believe in giving their tax dollars to private companies.

I respect that, but the reality of this economy requires a move - some move.

Martin County's unemployment rate was 12.4 percent in December, above the state average. Almost 8,000 people are unemployed here, and another 8,000 are underemployed.

The BDB proposal is an attempt to level the playing field in the hunt for high-wage jobs.

Eve Samples is a columnist for Scripps Treasure Coast Newspapers. This column reflects her opinion. For more on Martin County topics, follow her blog at TCPalm.com/samples. Contact her at (772) 221-4217 or eve.samples@scripps.com.