Achieva May Receive $127,000 in City Incentives
Dunedin staff told officials that Dunedin would recoup the funds by 2016, and almost quadruple its investment over a 10-year period.
City leaders agreed on a roughly $127,000-package of start-up costs for the Achieva Credit Union headquarters on Thursday.
City staff told officials that Dunedin would recoup the funds by 2016, and almost quadruple its investment in the company over a 10-year period.
"This is a very strong economic driver to the city of Dunedin," Bob Ironsmith, director of economic housing and development, told commissioners.
Achieva is investing $12 million into its new Virginia Street headquarters, on the site of the former Nielsen Co. call center. It translates to $3.24 million in temporary construction income to the city and $41,162 in annual real property taxes, a city memo states.
Also, the company's 140 top-level employees making $60,000 annual salary who are moving to Dunedin will spend an average of $940,000 annually in retail within the city, staff estimates.
The $127,034 incentive package provided by the city would cover waivers for building inspections and reviews, design assistance, and facade improvements.
An incentive package was part the condition of Achieva's move to Dunedin from Clearwater. It was suggested in an Aug. 29 letter to the city from Achieva's president Greg Rigoli.
Another one of the agreements is to rename a portion of Virginia Street, between State Road 580 and Keene Road, to "Achieva Way," provided the developer can garner support from business owners and property owners on that section of road.
The company broke ground on its corporate center Sept. 28.
A second public hearing is slated for Dec. 20.
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Cecilia
10:40 am on Monday, December 10, 2012
These are the businesses that Dunedin NEEDS in order to move it into the future. The jobs this company will create pay living wages; they form partnerships within the community that improve it.
Now if they City Planners would only court more companies like these as opposed to the multiple super discount stores, our city might really become the progressive city that it is meant to be as opposed to a low quality discount store haven.
Allen Isenberg
9:54 pm on Monday, December 10, 2012
A good move for them and they are getting a better location and place for their employees to live. But why do they need taxpayer money to come. If governments stopped all these subsidies we would all be better off.
Maureen
9:18 am on Tuesday, December 11, 2012
I can't see a good reason to rename Virginia to Achieva Way. It's bad enough that all our stadiums have become a commodity, with name sold to the highest bidder.
I am happy that the company is moving here, but am not in favor of "selling out" the name that has been on the street for years.
Melissa
8:08 am on Thursday, December 20, 2012
ONE ARTICLE FROM TBO:
Consulting nonsense: Throw more upfront tax dollars to recruit companies, pay Floridians less
"jobs, jobs, jobs" is Florida's only economic strategy, we'll get what we pay for.
Wake up and good morning. When I grow up I want to be an economic development consultant. That way, I can tell Florida to boost its economy by handing out more tax dollars upfront to relocating companies while also lowering the already too-low wage standards for new jobs those companies might bring to the state.
I could call the report Desperate Florida: Throwing Away Tax Dollars, Impoverishing Its Residents and Giving Up On Its Ambitions.
Except a new consultant is pretty much already telling Florida that's the way to go.
A South Carolina consulting firm presented its study recommendations last week to Enterprise Florida that essentially says if the Sunshine State gives companies more money upfront and lets them pay less to Floridians, then more businesses will relocate to this state. "People just don't think of Florida as a 'top of mind' place to do productive activity," Mark Sweeney (photo, right) of McCallum Sweeney Consulting in Greenville, S.C., told Enterprise Florida last Thursday, the Orlando Sentinel reports. So my question is: What would people think of Florida if the state accepted this consulting advice?
Melissa
8:08 am on Thursday, December 20, 2012
Florida already has a sorry track record for failing to police the tax dollars it gives companies upfront. And the last thing Florida needs -- given its declining household income -- is for more jobs to be created that continue to drag down state wages.
The remarkable insights in this 178-page "competitiveness" report from Sweeney (and a few other consulting firms) cost $105,000 (yet again given to out-of-state businesses). It was paid for by this state's major utilities, including Progress Energy, Seminole Electric, TECO Energy, Florida Power & Light and Gulf Power. The reports also recommends tax changes and more emphasis on green energy -- an ironic idea given the most recent posting on this Venture blog being about BP's abandoning its biofuels plant ambitions in Florida.
Melissa
8:08 am on Thursday, December 20, 2012
I wonder if these consultants were picked because nobody based in Florida would ever conjure up recommendations so poor for Florida's future.
First of all, I'm wondering why Florida's big utilities decided to fund such a simplistic report for $105,000 when I would have been delighted to offer them an even better recommendation for free. If all Florida wants is to recruit businesses here with no further regard for economic consequences, then simply do this. Whatever Sweeney's firm recommends, just double the upfront tax dollars to businesses and tell them they can pay Floridians minimum wage and, better yet, make them all part time and avoid offering any benefits.
We'll have businesses stumbling over each other to set up operations in Florida. Then we can all celebrate Florida's cleverness as its standard of living continues to fall.
Come on, Tallahassee leaders. Florida's future is not just about "jobs, jobs, jobs" -- no matter what they pay.
We can do a lot better than this.
-- Robert Trigaux, Business Columnist, Tampa Bay Times
Melissa
8:08 am on Thursday, December 20, 2012
Quick Summary
A report by the Pew Center on the States concludes that 13 states are leading the way in generating much-needed answers about tax incentives’ effectiveness. Twelve states have mixed results. Half the states have not taken the basic steps needed to know whether their incentives are effective. The study highlights a wealth of promising approaches states have taken to help lawmakers find those answers. Policy makers spend billions of dollars annually on tax incentives for economic development, but no state ensures that policy makers rely on good evidence about whether these investments deliver a strong return. Often, states that have conducted rigorous evaluations of some incentives virtually ignore others or assess them infrequently. Other states regularly examine these investments, but not thoroughly enough.
The use of these investments appears to have grown substantially. Today, every state has at least one tax incentive program, and most have at least several. Tax incentives are policy choices with significant implications, especially at a time when most states are trying to rebuild their budgets and many have not regained the private-sector jobs lost during the Great Recession. If states do not base decisions on evidence, they could have less money to spend on other critical services. By not using effective incentives, states could miss opportunities to create jobs and support businesses.
Melissa
8:08 am on Thursday, December 20, 2012
ABOVE ARTICLE BY :Report
Evidence Counts
Evaluating State Tax Incentives for Jobs and Growth
States' Fiscal Health Contact Nicole Dueffert 202.552.2274April 12, 2012
Melissa
8:08 am on Thursday, December 20, 2012
No the the name change and NO to the incentives.
Melissa
8:08 am on Thursday, December 20, 2012
Per Acheiva's website of the 23 jobs available, 10 are in Pinellas County, a teller starts at $12.25, assistant branch manager, starts at $35,595 in St. Petersburg, a part time temp graphic designed starts at $12.25. Where are all the $60,000/years jobs?
Melissa
8:08 am on Thursday, December 20, 2012
Must going to be a lot of chiefs at the corporate center / call center