The City of Jacksonville, Florida has put together a $1.94 million state and local incentives package to secure an expansion project by Deutsche Bank.
As per the economic development agreement, Deutsche Bank will invest $10 million and create 300 new jobs by 2016. Deutsche Bank already has 1,349 employees in Jacksonville.
The new jobs will have average annual wages of $62,063, which is 150 percent more than the state’s average annual wage for the private sector.
The agreement, executed between the City and DB Services New Jersey Inc., DB Services Americas, Inc., and Deutsche Bank Securities, Inc. calls for the expansion project to be approved as a QTI (qualified target industry) business. These are the American subsidiaries of the parent company – Germany-based Deutsche Bank.
As QTI business, Deutsche Bank will be approved for with QTI tax refunds to the tune of $360,000. The State of Florida will chip in with $1,440,000 in matching funds. The total QTI Refunds worth $1.8 million for 300 jobs means that Deutsche Bank is getting a $6,000 grant for creating each new job.
The City of Jacksonville is additionally offering Deutsche Bank a $140,000 REV (recapture enhanced value) grant that will be paid out in annual installments over a five year period. This puts the city’s local incentives package offering at $500,000.
This latest expansion by Deutsche Bank comes right on the heels of the completion of a previous $10 million expansion of their Southside campus in Dec 2012 which added 30,000 square feet and 260 new jobs at average annual wages of $52,722, which works out to an additional payroll of $18 million.
For this previous expansion, Jacksonville provided Deutsche Bank with a similar incentives package worth $5,000 per job. This included a $145,000 REV grant and another $260,000 as 20 percent of the QTI Refunds, with the remaining 80 percent provided by the state as matching funds.
At that time, Jacksonville Mayor Alvin Brown said that the Deutsche Bank expansion was part of a hopeful trend towards better days. “Jacksonville is open for business. Unemployment is falling. We’re cutting ribbons. Jobs are coming back – but these aren’t just jobs. They are good-paying career opportunities. And they have the potential to make a serious impact,” added Mayor Brown.