Print

Email story

Comment

Letter to the editor

Politics

Vote costs hundreds of jobs

Denying tax incentives leads a business to forsake expansion in Largo for California.

By LORRI HELFAND, Times Staff Writer
Published August 7, 2007

ADVERTISEMENT "That's what I was afraid of," said City Commissioner Andy Guyette. "We had our opportunity and let it go."

LARGO - The city may have closed the door on an opportunity to add hundreds of jobs and tens of millions of dollars in wages to the local economy.

Last month, commissioners voted 4-3 to deny a proposal to give tax incentives to a company that wanted to expand its presence in Largo and hire 300 employees over three years.

The commission was scheduled to reconsider the proposal tonight, but learned Monday it was too late.

The company has decided to expand most of its operations in California instead of Florida, said Pinellas County Economic Development Director Mike Meidel.

"That's what I was afraid of," said City Commissioner Andy Guyette, a strong proponent of the proposal. "We had our opportunity and let it go. I can only hope in the future we think more seriously if another opportunity happens again."

As proposed, the incentives would have cost the city $90,000 over six years.

The new jobs, in a credit counseling company, would have paid an average annual salary of $40,000 or more.

Now officials are trying to salvage part of the deal and persuade the company, which has about 100 local employees, to keep its corporate headquarters in Largo and add 50 executive jobs down the road, Meidel said.

"We're hoping to have another deal put together within 30 days," Meidel said.

The incentives would have been paid through the state's Qualified Target Industry incentives program, which helps recruit businesses and retain expanding ones.

The name of the company, a financial counseling operation and call center, has not been released because it requested confidentiality.

Florida law allows companies seeking tax incentives to maintain anonymity to protect against competition.

Incentives for a new deal have not been calculated. But the previously proposed incentive package would have totaled $900,000 over six years. Largo's portion would have been 10 percent, or $90,000 over that period. The state and Pinellas County would have paid the rest. Costs would have varied each year depending on the number of jobs created.

Guyette and Mayor Pat Gerard were so eager for the expansion that they offered to pay the first-year costs of $7,500 out of their own pockets. Commissioner Rodney Woods also supported the proposal, which received initial approval in June, but failed at a second and final vote last month.

The reversal surprised county economic development officials.

"It's the first time we've had a city that didn't vote for it," Meidel said.

Concern about how much the state is forcing the city to reduce property taxes and anxiety about call centers may have influenced commissioners' decision, Meidel said.

At the time, Meidel said, there were mounting complaints against Largo telemarketer, Strategia, known as Suntasia, before the Federal Trade Commission closed it down on July 25 and put it into receivership.

Local officials say the company that had applied for the tax incentives was not associated with Strategia, a travel telemarketer that federal authorities say scammed thousands of people out of millions of dollars.

Vice Mayor Harriet Crozier, who opposed the proposal last month, asked city leaders to put it back on the table two weeks ago.

She had voted against the proposal because she didn't have enough information, but Guyette and Gerard's passion convinced her to do more research, she said.

The Largo/Mid-Pinellas Chamber of Commerce, which didn't reveal the company's name, told her the company was reputable, had local suppliers and employed mostly Largo residents, she said.

"I'm disappointed now that we have some of the facts," she said.

Fast Facts:

If you go

The Largo City Commission will meet at 6 p.m. today at City Hall, 201 Highland Ave. Commissioners will vote on rules that would keep newly built crematories away from homes and consider an employment contract with City Manager Norton "Mac" Craig.

[Last modified August 6, 2007, 20:37:04]