New incentive ordinance gains traction

A new incentive ordinance is expected to be up for approval in the next couple of weeks.

The St. Johns County Board of County Commissioners heard first reading of the St. Johns County Business Incentive ordinance, which seeks to promote economic development in the county and attract high-quality development.

Commissioner Cyndi Stevenson said it is important to diversify the local economy. Like the old ordinance, the new ordinance seeks to attract new businesses, grow existing businesses and bring transplant businesses to the area, among other things.

"It's a really important part of the long-term vision for St. Johns County," she said.

The ordinance will be up for a vote on June 3 and was only discussed this week on first reading, and a lawyer asked that hotels and convention centers be added to the "target industries," which would help them toward earning incentives.

During public comment, a local hotel owner said he has built hotels in the area and that he would like to add another in St. Augustine, but that would not be qualified as a target industry. Those industries include information technology, homeland security, financial and life sciences such as biotechnology or pharmaceuticals.

Businesses that are not a target industry can still get a grant from the county if they meet certain requirements. And the new ordinance gives flexibility to the county to approve incentive for a project that doesn't meet the ordinance's minimum requirements.

County Administrator Michael Wanchick said that under normal development, incentives would not be given to things that would come naturally to a community, such as hotels.

Businesses can earn points toward county incentives based on several factors, including whether they are a target industry, how large the business will be, how many people will be employed and wage rates.

The new ordinance keeps the basic framework of the old business incentive ordinance, but it adds flexibility, updates language and added a couple of new point opportunities.

One of those additions is intended to address the growing population, and crowding, at in St. Johns County's schools.

For businesses that meet minimum requirements to qualify for an incentive, a point would be added for those that would be located in an area of the county where schools are at a certain capacity. The district has areas where elementary, middle and high schools are over capacity.

Meeting requirements does not automatically grant approval. The applications still have to be approved by the board of county commissioners.