County commissioners OK Blue Origin, Embraer incentives

Brevard County commissioners took the final step Tuesday in approving county incentive packages totaling $10.5 million for space company Blue Origin and aviation company Embraer, which plan to bring 480 jobs here.

But it was Florida Gov. Rick Scott who was given a good share of the credit for landing those two companies for North Brevard. Local economic development officials say the governor, working with Enterprise Florida and Space Florida, put together packages of still-undisclosed state incentives that helped in recruiting the companies' operations to Brevard.

"He's been a cheerleader for Brevard County, and he's done a great job," Robert Jordan, a Titusville business owner and secretary/treasurer of the North Brevard Economic Development Zone board, told the County Commission.

Both companies will receive grants from the North Brevard Economic Development Zone. Blue Origin will get $8 million for a project at Exploration Park just south of Kennedy Space Center, while Embraer will get $2.5 million for a project at the Spaceport Commerce Park in south Titusville, near Space Coast Regional Airport.

The money comes from property tax revenue from new commercial and industrial construction in North Brevard, under a process the Brevard County Commission created in 2011 to help spur economic development in North Brevard.

Blue Origin plans to build rockets on the Space Coast, and launch them from Cape Canaveral Air Force Station. The company, founded by Jeff Bezos, the billionaire chief executive officer of Amazon.com, would create 330 jobs with an average wage of $89,000, and plans to make a capital investment of $205 million to $220 million.

The company is being referred to as "Project Panther" in county documents, because Blue Origin has not officially disclosed its plans. Bezos is scheduled to be in Brevard County on Sept. 15 for a major announcement on the commercial space industry.

Embraer, a Brazilian aviation company with other operations at Melbourne International Airport, plans to locate its new airplane seat-making subsidiary, Aero Seating Technology, in Titusville, creating 150 jobs with an average wage of $48,000. It would make a $3.5 million capital investment as part of the project, which has been referred to as "Project Eagle."

"These are winners in terms of return on investment," Titusville Mayor Jim Tulley said. "We're going to get a lot more in terms of new dollars coming to our community than we're spending to get them. That's the bottom line."

Lynda Weatherman, president and chief executive officer of the Economic Development Commission of Florida's Space Coast, described the incentive mechanism as "bold moves" will mean "bold results."

"We're talking about two projects today," Weatherman said. "A lot of communities would be happy to talk about one of those projects. It's a game-changer."

The County Commission votes on each of the incentive deals was 4-1.

County Commissioner Trudie Infantini voted no, partly because they involved cash, rather than property tax breaks. She also had concerns about the secrecy of the agreements with the two companies and about the lack of financial information she has received about Project Panther.

Under state law, the North Brevard Economic Development Zone agreements with the companies and details on the state's incentives remain confidential for at least 180 days after the signing of the project orders, which has not yet occurred.

"We shouldn't be taking a risk with taxpayer dollars," Infantini said.

Greg Weiner, senior director of business development for the Economic Development Commission of Florida's Space Coast, said the deal "is not riskless, but it's a very businesslike deal."

Infantini said she could not confirm that Project Panther is Blue Origin because of non-disclosure agreements in place for county commissioners and North Brevard Economic Development Zone board members who received one-on-one private briefings prior to their votes. But, she added, if news reports are correct that Panther is Blue Origin, she believes Amazon.com should be investing in it, rather than the project getting financial help from the county.

"This guy is amazingly brilliant," Infantini said, referring to Bezos, if he's a billionaire, and he's getting the government to help fund his project.

In public comment on the proposed incentives, Brevard County Clerk of Courts Scott Ellis said he is concerned about the secrecy of the contract agreement as well.

"I don't believe you can appropriate money in secret," Ellis said.

Other county commissioners felt the deals with the two companies were good ones that would boost the local economy and create jobs.

"That's a no-brainer," County Commission Vice Chair Jim Barfield said.

Troy Post, executive director of the North Brevard Economic Development Zone, said there are provisions in place in the confidential agreements for the two companies to meet certain performance measures, and "claw-back provisions" for the county to get its money back if the companies do not.

County Commissioner Curt Smith, in discussing the incentives, said, "I don't see the risk, and I think it's a great deal for the county."

Contact Berman at 321-242-3649 and dberman@floridatoday.com. Follow him on Twitter@ByDaveBermanand on Facebook atfacebook.com/dave.berman.54