NSB Residents to Vote on Economic Incentives Referendum

When New Smyrna Beach residents to the polls on election day they will have more to think about than the race for President of the United States. Also on the ballot is a referendum to renew an economic development tax abatement measure first passed in 2014.

The program is designed to attract new business development encourage existing businesses to expand in the city and offers an exemption from city property taxes for up to 10 years provided the company meets specific job creation goals. Those benchmarks include creating 10 or more new full-time jobs that above more than the average area wage for manufacturing or is on the state of Florida’s targeted industry list.

The incentive is also available to businesses that create 25 or more full-time jobs in the state or an office space that houses 50 or more full time employees owned and used by a business or organization new to the Sunshine State. The property tax exemption applies to city taxes on improvements to real property and the tangible personal property on it.

The City Commission discussed the incentive program at a meeting in May and voted to place it on the Nov. 5 ballot by a vote of 3-2 with Mayor Fred Cleveland and Commissioner Lisa Martin voting against the referendum.

At the May meeting, then-economic development director Chris Edwards said the incentive program is “another tool in the toolbox” for the city and said in order for companies to receive the tax abatement “it requires companies to deliver on what they say they will bring to the table.”

He cited the success the city of Edgewater had with Boston Whaler and the company’s expansion in that city.

“That’s in our backyard,” he said. “That’s possible for New Smyrna Beach through aggressive marketing.”

Martin said her opposition to renewing the program was based on the lack of performance from the incentives.

“We’ve had it in place for 10 years and it hasn’t been successful, so I have some concerns about using our exceptionally valuable staff time to move forward with it,” she said.

‘Martin was also concerned that if the program is renewed, residents would have to make up the loss of city tax revenue during the incentive period.

Cleveland grilled Edwards on the lack of success of the program since its inception 10 years ago.

“This doesn’t seem to work,” he said.

At the May meeting, Commissioner Randy Hartman said since the issue would be on the November ballot, it was not up to commissioners to decide whether or not to renew the program.

“You want to limit the vote to five people up here or put it on the ballot?” he said. “Let the citizens decide whether they want it or not.”