Commissioner Murman mentioned in this Tampa Bay Times article:

Gov. Rick Scott ‘expects’ appointee Sam Rashid to leave Aviation Authority board

• Steve Contorno, Times Staff Writer

Tuesday, September 15, 2015 5:42pm

TAMPA — Gov. Rick Scott wants an appointee who called a local public relations consultant a “tax-payer subsidized slut” to resign his seat on the Hillsborough County Aviation Authority board, Scott’s office said Tuesday.

But the appointee, influential Republican activist Sam Rashid, said he intends to stay put — for now.

Rashid’s comments, made Sept. 2 on Facebook, were directed at Beth Leytham, a Tampa consultant hired to help win public support for the county transportation sales tax referendum known as Go Hillsborough.

In the same post, he alleged that Leytham made “several million dollars” as an “unregistered lobbyist by having an intimately close relationship with three of our local elected officials.” Rashid has been critical of the Go Hillsborough effort.

Scott appointed Rashid to the Aviation Authority board in June 2014. Last week, the governor said if Rashid did indeed make those remarks, he should resign.

On Tuesday, his office was more strident.

“Governor Scott expects him to resign and would accept his resignation,” spokeswoman Jackie Schutz said.

Rashid did not respond to a request for comment regarding the governor’s statement. Earlier Tuesday he acknowledged that he “serves at the governor’s behest.” However, he also said that won’t yet step down from the board that oversees Tampa International Airport.

“At this moment I am still contemplating my involvement with the HCAA,” Rashid said.

Rashid previously said he would stay on the Aviation Authority board until WTSP 10News finished broadcasting a multipart story on Leytham.

The WTSP story, the first part of which aired Monday night and had Tampa political circles buzzing on Tuesday, is a multifaceted examination of Leytham’s business, her campaign work for local politicians like Tampa Mayor Bob Buckhorn and Hillsborough County Commissioners Ken Hagan and Sandra Murman; and her role working on the Go Hillsborough transportation initiative.

Among other things, the television station raised the question of whether Leytham’s interactions with elected and non-elected local officials meet the definition of lobbying, and whether she should have to register as a lobbyist.

Leytham is being paid $185,000 as a subcontractor for Parsons Brinckerhoff, the multinational engineering firm hired by Hillsborough County to spearhead public outreach for a proposed transportation sales tax that could be on the 2016 ballot.

Rashid posted excerpts from the story on his Facebook page. When reached for comment earlier Tuesday, he deflected criticism of his remarks and questions about his political future as “a blip” compared to the “larger story.”

In an interview with the Tampa Bay Times, Leytham denied the allegations raised in the WTSP story and insisted her interactions did not meet the legal definition of a lobbyist.

Leytham added that Rashid’s remarks were “beyond the pale” and said the WTSP story, regardless of its findings, doesn’t exonerate a gubernatorial appointee from using derogatory and sexist language.

“It is two entirely different issues,” Leytham said. “In no way, shape or form does it change the inappropriateness of what he did.

“It was intentionally demeaning, and he has sought to continue to perpetuate that.”

Rashid, a Valrico businessman, is well known in local Republican circles for his activism and influence. But he can also be a polarizing figure, and this is not the first time his Facebook rants and self-described “flamethrower” style have gotten him in trouble.

Earlier this year, Rashid stepped down from the commission that nominates federal judges after it was reported he called some local judges “dumbasses” on Facebook. Rashid was nominated to the post jointly by Sens. Marco Rubio and Bill Nelson.

After his attack on Leytham drew swift scrutiny earlier this month, Rashid said he would reach out to Scott and “ask him for his preference with respect to my appointment.”

Neither Rashid nor the governor’s office would say whether that conversation took place.

Commissioner Murman quoted in this Tampa Tribune article on Channelside district plan:

BUSINESS NEWS

Investors show interest in Tampa port’s Channel District plan

By Yvette C. Hammett | Tribune Staff 
Published: September 15, 2015   |   Updated: September 15, 2015 at 04:11 PM

TAMPA — Investors and developers, including some of the world’s wealthiest, want a role in creating Port Tampa Bay’s Channel District vision, a port consultant said Tuesday.

The splashy renderings showing a new marina, apartment buildings, restaurants and a park along Channelside Drive got just the kind of reception port officials had hoped for when they unveiled the plan in August, said Luis Ajamil, the consultant heading up the project for the port.

On Tuesday, the Tampa Port Authority Board approved a $1.3 million contract extension for the Ajamil’s Miami planning firm helping to move the colorful sketches from Power Point to point of sale.

“Now we can formally engage the investor and development community,” said Ajamil. He declined to give any specific names of businesses inquiring about the master plan, but said it is an impressive lineup.

“So far, all we have is a lot of pretty pictures. Now the real grunt work has to start to make it a reality, ” he told the board.

This phase of the master plan, which will take about a year, will include more public input, working with the City of Tampa on zoning changes and setting development guidelines.

All along the way, said Ajamil, with Miami-based Bermillo Ajamil & Partners, he will come back to the board with tweaked versions of the plan.

The plan for 45 acres of land between the Florida Aquarium and the port’s historic banana docks would be one of the largest waterfront undertakings in the nation. It will transform the working waterfront into four districts — the marina district, the park district, the central waterfront and the cruise district. It would take some $1.5 billion in private investment money and require about $200 million in infrastructure improvements that the port and the city’s Community Reinvestment Act or CRA funds would cover.

Just how the Channel District will be developed has yet to be determined, Ajamil said. It could be developed one land parcel at a time, by individual district, or as one huge project with a master developer, he said. The port owns all of the land, some of which might be sold, while other parcels could be leased.

As the plan moves forward — and it will move forward quickly, according to Ajamil — the board may see changes to the original renderings, based on input the port receives.

“There’s a lot of detail work” still to be done before that time arrives, Ajamil said.

That detail work should include a look by an independent consultant in how financing will proceed, said Hillsborough County Commission Chair Sandy Murman, who sits on the port authority board. “I think the port is assuming a lot of risk at the front end because we don’t have a developer on aboard yet. In my opinion, the financial plan is going to need more scrutiny.”

Port President and CEO Paul Anderson said the work done to date on the plan includes market analysis from a third party independent firm. The budget will likely tighten as details are honed, he said, and nothing will proceed without approval of the port authority board.

Two members of the public also questioned one particular detail of the plan during Tuesday’s meeting — a plan to fill several hundred feet of the canal near the historic banana docks to construct a marina.

George Lorton, who owns International Ship Repair and 24 acres near the proposed marina, spoke Tuesday against filling in about 600 feet of the canal.

“I pay half a million bucks a year in taxes and rent” for the property and two berths at the port to use them for business, Lorton said, adding that no waterfront should be filled.

Ajamil said there is plenty of time to address those concerns, since the marina property at the north end of the plan area will be the last piece to be developed. “We’ll meet and discuss it,” he said, noting that the master plan still has some flexibility.

The south end of Channelside Drive, just past the Florida Aquarium,, for now, isn’t included in the port’s plan. That is the parcel that will eventually mesh the port’s plan with those of Tampa Bay Lightning owner Jeff Vinik, He and his development team have devised a billion-dollar master plan for Channelside and portions of downtown that include hotels, offices, restaurants and apartments and may incorporate a more expansive modernized streetcar system.

“We haven’t touched the south end,” Ajamil said.

Commissioner Murman quoted in this Industry News article on solid waste services:

Kessler Consulting and Hillsborough County, Florida awarded NWRA’s Inaugural Sustainability Partnership Game Changer Award

September 11, 2015

The first “Sustainability Partnership Game Changer Award” was granted to Hillsborough County (County) and Kessler Consulting, Inc. (KCI) by the National Waste & Recycling Association (NW&RA) at the Waste360 Recycling Summit in Chicago.

This prestigious industry award was created to recognize public and private organizations that, according to NWRA have successfully partnered to implement game-changing initiatives, policies or programs that advance sustainability in their community. The County program achieved these objectives.

With a goal to improve service, control costs, and maintain the integrity of the County’s integrated solid waste management system, the County and KCI planned and implemented the largest same-day start up, roll cart deployment in North America. With over 260,000 households, more than 520,000 carts, and nearly 20,000 commercial accounts, The County and KCI coordinated a project team that included County representatives from the Solid Waste, Public Works, Utilities, and Communication departments as well the private sector team members from Progressive Waste Solutions, Republic Services, Waste Management, Schaefer Systems, Cascade Engineering, WasteRec, Trio, Environmental Solutions Group/Heil, McNeilus Companies, and Sonrai Systems.

This unprecedented partnership resulted in an estimated $85 million economic impact on the U.S. solid waste industry in 2013, a 100 percent increase in recyclables recovery (30,000 additional tons per year), and more than a $10 million annual savings over the County’s previous contract. The “Fill it, Tilt it, That’s How We Roll!” program is an example of the success that can be gained from a well-planned, sustainable public/private partnership.

Sandra Murman, Hillsborough County Commissioner, said “The successful start of our new solid waste service was accomplished due to exemplary collaborative efforts and serves as a model for great communication and teamwork.”   

Commissioner Murman mentioned in this Tampa Tribune article on local job fairs:

BUSINESS NEWS

Myriad local job fairs deliver hire expectations

By Jerome R. Stockfisch | Tribune Staff 
Published: September 13, 2015

TAMPA — On the promenade at Amalie Arena, hundreds of people sat in neat rows of folding chairs waiting to be called into interview sessions behind a black drape.

Hours later on the same day, thumping dance music, an impressive layout of food and drink and well-dressed millennials greeted applicants poolside at the Seminole Hard Rock Hotel & Casino.

The atmospheres couldn’t have been more day and night, but the twin events had the same goal in mind: to bring potential employees onto the two sites for heavy-duty hiring sprees.

The recent economic development successes in the Tampa Bay area seem to have brought with them an unending parade of job fairs, with businesses, malls and other employers hoping to fill positions in a low-unemployment economy.

“There are a number of things going on,” said Mary Trombitas, president of the Targeting Performance human resources and organization development company and head of Suncoast HR, a human resources professional group in Pinellas County.

“I think there’s been a challenge finding the right skill set for specific jobs,” she said. “I think there may be available talent but maybe not the right talent. Today, with all of the various methods to search for people, with all of these job boards and recruiting companies, people are looking for a different method to finding talent.”

At a job fair, she said, “you can assess quickly; you get face-to-face contact. Employers, hiring managers and HR managers still like to meet people. Despite the use of social media, they still like to connect.”

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Amazon.com held two of the higher-profile job fairs this fall as the online retailer attempts to fill 2,000 positions at huge distribution centers it just built in Ruskin and Lakeland.

Last month, the Tampa Premium Outlets mall in Pasco County invited job-seekers to its fair at the Embassy Suites on the campus of the University of South Florida; thousands jammed the hotel convention space trying to connect with the 800 retail positions that were available.

Amalie Arena held an event in August and another last week as the Tampa Bay Lightning ramp up for the start of the 2015-16 National Hockey League season.

“We saw 500 applicants over the two days for approximately 250 part-time hourly positions, 100 with Tampa Bay Sports and Entertainment and 150 with Sportservice, our food-service provider,” said Lightning spokesman Bill Wickett. “Positions still remain open in the Chase Club and in our housekeeping department, so we are continuing to hire.”

The facility looked to hire ushers, guest service representatives, security, housekeeping, retail, concessions and kitchen staff to work not only Lightning games but also Tampa Bay Storm arena football games and some concerts. Among the attendees Wednesday was David Gracia, a 20-year-old from Tampa hoping to land his first job in the Chase Club or the Lexus Lounge.

“I thought it went really well,” he said after a job interview at the arena. “The Amalie is like a second home to me. I’ve been attending events here eight to 10 times a year since I was 8 years old.”

Gracia said the atmosphere at the Amalie fair was “very relaxed,but professional at the same time.”

There was a truly relaxed ambiance at the Seminole Hard Rock job fair, where celebrity chef Marc Murphy of TV’s “Chopped” is opening a yet-to-be named Mediterranean-inspired restaurant in November.

The restaurant will create 130 jobs.

The vibe at the Hard Rock job fair was by design, said Kristen Reuther, recruiting manager. And rather than use the term job fair, she referred to it as a “meet-and-greet” or “networking opportunity.”

“At the Hard Rock, the No. 1 thing is guest service and the personalities that our candidates have,” Reuther said. “These are the types of experiences that let us understand what those personalities are, versus you sit in a chair for an hour. These events are dynamic. We want to see how they interact with people. These types of events work best for us because that’s what we need to see.”

Rahim Heck, 29, a chef’s assistant at a restaurant in the Coronado Springs resort in the Disney complex, is seeking a position at the new restaurant.

“This was a nice meet-and-greet,” he said at Wednesday’s event. “I knew the information I wanted to see for the job would be here. It’s very open. It gives me a visual of what they’re going to expect.”

Those seeking cook positions can apply at www.seminolehardrocktampa.com/marc-murphy.htm.

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Job fair organizers aren’t always motivated by the needs of their business. Citing high unemployment in pockets of her district, State Rep. Janet Cruz, a Democrat from Tampa, organizes an annual fair drawing hundreds of various local employers and hundreds of job-seekers. This year’s was in July at Higgins Hall.

On Oct. 16, Hillsborough County Commission Chairwoman Sandy Murman will host a similar job fair at the Hillsborough Community College’s Dale Mabry Campus.

“When they offer these job fairs and there is no cost to the employer, that is very attractive,” said Deborah Erdahl, human resources manager at Boys & Girls Clubs of Tampa Bay and chairwoman of the workforce readiness committee for the professional group HR Tampa. “You’d be foolish not to go to them, even if you have a limited number of positions to fill. And that face-to-face — you can have a two- or three-minute interview with someone, and it tells you a lot more than a piece of paper does.”

jstockfisch@tampatrib.com

Commissioner Murman quoted in this Tampa Bay Times article on ELAPP:

Hillsborough’s cash-strapped environmental lands program gets last-minute boost in 2016 budget

• Steve Contorno, Times Staff Writer

Friday, September 11, 2015 5:42pm

TAMPA — Hillsborough County’s cash-strained environmental lands program could get a $15 million boost next year.

New bonding for the Environmental Lands Acquisition and Protection Program, one of several last-minute adjustments to the county’s 2016 budget, is expected to pass Thursday without much wrangling from commissioners.

The popular ELAPP program, designed to preserve environmentally sensitive lands, is running dangerously low on funds. There is just $4 million left unallocated from an initial $59.5 million cash infusion.

About 80 percent of voters in 2008 approved up to $200 million in county bonding to support the program.

The money that would be set aside for ELAPP — $15 million to purchase land and $1.3 million for interest on the bonds — would help shore up those reserves, but it comes with strings attached.

Hillsborough commissioners said Thursday at a public hearing that they wanted to see a plan from ELAPP on how the money would be spent and its long-term acquisition strategies.

“The reality is we do not know what land is out there, what land can feasibly be considered for acquisition,” Commissioner Ken Hagan said.

Noting the recent rainfall, Commissioner Victor Crist said a premium should be placed on buying lands that will improve drainage and relieve flood-prone areas.

Earlier this summer, Commissioners Stacy White and Les Miller proposed setting aside for ELAPP $15 million from the county’s $23 million oil spill settlement with BP. Commissioners instead said they wanted to hold the money in reserve until the 2017 budget.

The new funds for ELAPP are coming out of an additional $114 million added to the budget at the last minute to bring the entire 2016 spending blueprint up to $4.83 billion.

The one-time infusion doesn’t fix the fact that the county doesn’t have a long-term funding source to support additional borrowing for land purchases.

In the past, ELAPP bonds were supported with additional taxes. But commissioners have balked at raising taxes this time around.

Commissioner Sandy Murman suggested last week that “our ELAPP lands have more recreational properties to them, so we can use them to the benefit of the citizens that are paying for it.” Some think there could be revenue opportunities there.

The $114 million added to the budget is coming from several sources, including the BP settlement, and rosier property tax revenue predictions. The county also chose not to move forward with a new south county community center after Gov. Rick Scott vetoed a matching grant, freeing up $3 million.

About $6 million of the $114 million will go toward road improvements.

Commissioners will vote on the final budget Thursday at another public hearing. As it stands, the proposed county millage rate in the budget is the same as it was in 2015: 5.7960 mills, or $5.79 for every $1,000 in property value, for Tampa residents (who pay a separate property tax levied by the city); and 10.7547 mills throughout unincorporated Hillsborough County.

If maintained at those levels, it would be the first time in 23 years that the county has not lowered the millage rate, though rising property values mean residents will likely pay more. Commissioner Al Higginbotham said he won’t vote for a budget if the rate isn’t rolled back.

Higginbotham has proposed a rate decrease countywide of 0.0017 mils, which amounts to a 17-cent savings for every $100,000 in property value.

Contact Steve Contorno at scontorno@tampabay.com. Follow @scontorno.

Commissioner Murman’s column on economic development appeared in the Tampa Bay Times:

Column: Charging up Hillsborough’s redevelopment efforts

• By Sandra L. Murman, special to the Tampa Bay Times

Friday, September 11, 2015 1:06pm

Economic development is at the epicenter of our daily lives. It affects where we live, work and play. The prosperity of this community depends on thoughtful investment of our tax dollars to create jobs and foster a culture of private reinvestment that will continue for generations to come.

We are dedicated to economic development, which delivers critical jobs to our citizens. Hillsborough County is exploding with growth, and in the last few years of recovery from the recession, county government has focused on directing economic incentives and investments that promote a vibrant, thriving local economy.

Hillsborough County has a key leadership role in economic development. Over the past 10 years, the county has invested more than $258 million in economic development initiatives. These investments help create the “product” that we market to businesses.

Make no mistake about it, the county is serious about economic development, and our budget reflects that. We see several major drivers of economic prosperity in the community — targeted industry recruitment and retention, and my favorite, corporate headquarters recruitment — while also selling the marketplace to businesses.

Our economic development strategy is robust and diverse to give our citizens a return on their investment of tax dollars, and to offer a high-quality community and a talented workforce. Together we are the rainmakers that draw in new corporations.

The timing couldn’t be better as we leverage this public-private partnership with the Tampa Hillsborough Economic Development Corp. and team up for a home run, landing Johnson & Johnson, which brings its North American shared services headquarters to Hillsborough County along with 500 new jobs.

Beginning this year, a new initiative of the county’s economic development effort focuses on redevelopment. Tampa, Plant City and Temple Terrace all have defined redevelopment programs and are similarly focused on improving their communities. Hillsborough also has unincorporated areas that need our redevelopment attention. Unincorporated areas account for 84 percent of the entire county land mass, and nearly 800,000 residents live in such areas, easily making the unincorporated county the largest “city” in Hillsborough.

Hillsborough County staff has proposed a pilot program that focuses on specific unincorporated areas of the county to address signs of distress. This program has specific criteria. First, the geographic areas are located in the urban service area and meet the U.S. Department of Housing and Urban Development’s low-to-moderate income criteria. Second, the program will focus on office and industrial job creation. Third, staff will evaluate the current land value and the potential to encourage the private sector to reinvest in those properties, thereby allowing for growth in the tax base. Fourth, and perhaps most important, the program will require a private sector partner to leverage any county investment.

Using these criteria, we identified four areas for our initial focus: Palm River Area, University Area, 56th Street & Hillsborough Area and North Airport Area. We will work to make improvements that will enhance and strengthen the economic vitality of the county.

Recently at a board meeting, we introduced our first area for redevelopment, the Innovation Alliance for the University Area. The time is right to craft a development strategy that builds a sustainable community around:

• innovation and technology;
• a recognized tourism destination at Busch Gardens;
• a major university at the University of South Florida and world-class research at Moffitt Cancer Center;
• nationally significant health care services.

This area has more than 48,600 workers, compared to downtown with more than 48,500 workers and Westshore with 97,200 workers. It’s uniquely positioned to be our first economic development area, and with the excitement of the redevelopment of our urban core with Jeff Vinik’s plan and the Tampa Port Master Plan, it gives us two dynamic plans across our market.

To sustain this trend, we need to strategically locate projects in redevelopment areas where people can live, work and play; to monitor land-use policies with development; and to have a robust incentive program for projects that deliver a significant return on investment to taxpayers.

This county is my home, and never have I seen us as committed to economic development as over the last two years. Now, with the addition of redevelopment, we are truly instituting a comprehensive program that aligns our initiatives, provides increased opportunity for jobs, enhances existing infrastructure and furthers the opportunity for greater prosperity in Hillsborough County.

Sandra L. Murman chairs the Hillsborough County Commission. She wrote this exclusively for the Tampa Bay Times.

Column: Charging up Hillsborough’s redevelopment efforts 09/11/15 [Last modified: Friday, September 11, 2015 5:39pm] 

© 2015 Tampa Bay Times

Commissioner Murman quoted in this Tampa Tribune article on TECO:

BUSINESS NEWS

Tampa leaders not concerned about Canadian utility buying TECO

By Jerome R. Stockfisch | Tribune Staff 
Published: September 8, 2015   |   Updated: September 9, 2015 at 06:03 AM

TAMPA — With the acquisition of TECO Energy by a Canadian power company, Tampa loses a prominent hometown corporate headquarters. But local leaders aren’t overly concerned about Nova Scotia-based Emera Inc. pulling the levers of the 115-year-old Tampa institution.

“Any time a company of such large stature, such deep community investment gets sold, it’s natural for the community to have some anxiety,” said Ron Christaldi, chairman of the Greater Tampa Chamber of Commerce. “But from the statements I’ve seen from the top leadership of Emera, it appears that they will continue to engage in the community.”

Both John Ramil, president and chief executive at TECO, and Chris Huskilson, his counterpart at Emera, have been out in front of that issue in news conferences on the acquisition, announced Friday night. They said TECO’s downtown Tampa headquarters will remain intact, as will the name and all jobs.

Discussions on jobs and community involvement were part of negotiations on the $10.4 billion deal, Ramil said Tuesday, but “it didn’t take a whole lot of addressing because of their style and the way they do business. They have committed to maintain the charitable and other activities that we do, at least as much as we have been doing it.”

Hillsborough County Commission chairwoman Sandy Murman met with the Canadian executive team on Tuesday. “I was very impressed with them,” she said. “They want to be a part of this community. I feel very positive, a lot of good energy came from them.”

There are a couple of reasons for the lack of angst among Tampa leaders. Emera had no operations in Florida and will need the TECO personnel who produce power here. In a conference call with utility analysts Tuesday, Huskilson said Emera is making “a deep commitment to TECO’s existing employees, and we will be seeking to retain the entire management team and employees in this organization.”

He said a local operating board will be established with TECO and Emera representation.

Further, the nature of the utility business typically makes them major players in their communities. “A utility company, for its own well-being, is going to want to be very involved in the community and in economic development,” said Ramil. “It’s going to grow if its community grows. The natural instinct to try to help grow the area as your business grows is going to thrive.”

Tampa Electric has been a local institution since 1899. The parent company, TECO Energy, was incorporated in 1981. In addition to the electric utility, which has roughly 700,000 customers, mostly in Hillsborough and Polk counties, it is parent to Peoples Gas, with 350,000 customers across Florida, and New Mexico Gas Co., which has 500,000 customers in that state. It has roughly 4,000 employees, about 2,500 in Tampa.

TECO intends to sell off its TECO Coal subsidiary before the deal with Emera closes.

The roster of local organizations it supports reaches into the dozens, including Boys & Girls Clubs of Tampa Bay, Glazer Children’s Museum, the Straz Center, the Tampa Bay History Center, The Spring and local universities.

Emera is a geographically diverse energy and services company based in Halifax, Nova Scotia. It grew out of its core utility business, Nova Scotia Power, which has 500,000 customers and was founded in 1919.

The company also holds Emera Maine, an electric utility serving 154,000 customers in that state; Emera Caribbean, which encompasses Barbados Light & Power, Dominica Electricity Services, Grand Bahama Power and St. Lucia Electricity Services, which collectively serve 179,000 customers; natural gas pipeline companies; energy services including marketing, trading and asset management; and service contractors.

Tampa Mayor Bob Buckhorn said he learned of the acquisition while on a trade mission in Dublin, Ireland.

“While we’re obviously sad to lose a home-grown company, I think TECO’s presence and TECO’s footprint will be here for a long time to come,” he said. “We all knew that TECO was a smaller fish in a much larger pool and was going to be bought out. But everything I’ve heard from the new owners is that they care, they are committed to Tampa, and I don’t think any of that will change.”

TECO acknowledged in July that it had hired an acquisition adviser after its stock price jumped on sale rumors. Emera’s winning offer was $27.55 a share, a 48 percent premium to the share price prior to the sale rumors.

Ramil, who holds more than 750,000 TECO shares, saw their value rise from $13.8 million in July to $20.7 million under the buyout offer.

TECO shares soared on Tuesday, the first day of trading after the acquisition was announced. They closed up $5.27, or 25 percent, at $26.34.

Commissioner Murman mentioned in this Tampa Bay Times article on jobs:

BUSINESS NEWS

Tampa on economic roll with thousands of new jobs on the way

By Jerome R. Stockfisch | Tribune Staff 
Published: September 5, 2015

MORE INFORMATION

Relocations/Expansions in Tampa

 2015

Johnson & Johnson, 500 jobs, $23.5 million capital investment

Amazon.com, 1,000 jobs

Cognizant, 412 jobs, $5.7 million capital investment

Tampa Tank, 108 new jobs, $18.3 million capital investment

2013-2014
USAA, 1,215 jobs, $164.3 million capital investment

Tribridge, 200 jobs, $1.8 million capital investment

C&S Wholesale Grocers, 300 jobs, $25 million capital investment

Quest Diagnostics, 350 jobs, $9.3 million capital investment

TAMPA ­— The scent of flame retardant hangs where it once smelled like fresh popcorn, and the sounds of power tools and shouting construction workers have replaced the explosions of the summer blockbusters.

Soon, more than 100 employees will be supporting Ashley Furniture’s e-commerce operations in the new workspace that replaces 10 vacant Carmike Cinemas theaters in Centro Ybor.

The Ashley headquarters is one of more than 20 major job-producing relocations or expansions of businesses announced in the past year in Tampa and Hillsborough. Add another 30 from the previous year.

Johnson & Johnson, a new shared-services headquarters, 500 jobs. Accusoft, expansion of the imaging software developer’s Tampa headquarters, 125 jobs. Amazon.com, two new mega-distribution centers, 4,000 jobs. Tampa Tank/Florida Structural Steel, expansion of its Port Tampa Bay facility, 108 jobs.

The area’s economic development officials are on a roll.

“So many things are going right,” said Rick Homans, president and chief executive of the Tampa Hillsborough Economic Development Corp. “The visibility of the community through projects like the Vinik-Gates project. The Stanley Cup. The RNC (Republican National Convention). Bollywood.

“Those are all things that kind of elevate the community,” Homans said. “The political leadership working together, the regional leadership working together. The economy picking up is huge. It’s a tailwind. Companies are expanding. They’re actually making decisions; they’re not pulling back. … You put all those pieces together and it creates a lot of momentum.”

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The Tampa Hillsborough EDC says its recruitment, retention and other assistance projects completed in the past year will bring 3,270 targeted high-paying jobs to the area. The figure was 4,500 the year before that and 4,100 the year before that.

Meanwhile, Tampa Bay Lightning owner Jeff Vinik, backed by Microsoft founder Bill Gates’ Cascade Investment LLC, has announced plans for a $1 billion 10-year remake of the 40 acres he owns or controls around Amalie Arena. That could add 6,700 jobs to the area with an average wage of $78,000.

Port Tampa Bay has unveiled a long-range $1.7 billion plan in the area north of The Florida Aquarium that would include 9 million square feet of mixed-use development.

The EDC partners with Enterprise Florida, a division of the state Department of Economic Opportunity, and local governments to attract businesses and retain jobs.

“Economic development efforts last fiscal year alone will create more than 33,000 total jobs and generate more than $2.74 billion in capital investment,” said Enterprise Florida spokesman Stephen Lawson. “Enterprise Florida, in conjunction with our local partners, has been instrumental in bringing a number of great companies to the Tampa Bay area over the last few years. … Florida’s great business climate, robust infrastructure and advanced workforce all contribute to Tampa’s success.”

In all the talk about new jobs, it’s that capital investment figure that often is overlooked. When companies move, establish an office or expand existing space, the accompanying construction and infrastructure improvements can pump millions into the local economy.

At Ashley Furniture’s e-commerce headquarters, for example, the company is spending $16 million to turn the former theaters into an airy, millennial-friendly 73,000-square-foot workplace.

New and expanding companies that worked with the EDC in its most recent fiscal year planned to spend $121 million in the area. That figure was driven by a $23.5 million investment planned by Johnson & Johnson and $18.3 million to be invested at Tampa Tank/Florida Structural Steel at the Tampa port.

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Enterprise Florida itself acknowledges in its annual report that the economic development process “is dynamic, involving many different groups and complex decisions.”

Local boosters tout the cost of real estate, the availability of a skilled workforce, infrastructure, the education system, Florida’s business-friendly climate and the lack of a state income tax.

Homans said the EDC’s ace in the hole is building relationships with personnel of companies casting about for a move.

“A lot of it is very personal contact,” he said. “It’s bringing people together so when a company is looking at the market, they might come in for a site visit and, over a day or two days, we will set up a very rigorous itinerary for them.”

And then there is the money.

Enterprise Florida and local governments have millions at their disposal to sweeten the pot to get companies to come to the state or their city. Economic incentives are standard tactics in the recruiter’s toolkit, although the strategy has drawn fire.

Florida incentives come in various forms, including tax credits, tax refunds, tax exemptions, infrastructure funding and cash grants paid directly to a qualified business.

In a typical agreement, a company would apply for tax refunds under the Qualified Target Industries program, the state’s most popular incentive. The business enters into a contract with the state, which includes a new job creation goal, a schedule for those jobs to be created and an average wage — the minimum is 115 percent of the prevailing average wage.

After the business has started hiring, it submits an annual claim form and documentation of taxes paid. The state verifies the information, and if the business has met its goal, a refund check is sent to the business.

The company could also receive a grant under the Quick Action Closing Fund, a deal-closing tool in highly competitive negotiations where traditional incentives are not enough to win the deal. Closing fund projects include a performance-based contract with the state, which outlines milestones that must be achieved for grant payment.

The Johnson & Johnson deal provided the company $6.4 million in benefits, $1.5 million from Hillsborough County and Tampa and an additional $4.9 million from the state. Tampa Tank got $2 million in incentives to expand at the port. The county agreed to road and infrastructure construction worth $6 million sought by Bass Pro Shops, the giant outdoor retailer that opened in July in Brandon.

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Economic development officials insist that incentives are linked to performance, but that hasn’t always happened.

In 2009, the state paid $20 million upfront to an entrepreneur who pledged to build a high-tech digital film studio in St. Lucie County and hire 500 people. Within three years, the company, Digital Domain, was bankrupt and shuttered. There have been other missteps.

Those types of economic incentives raise hackles on both the left and right sectors of the political spectrum. In 2013, the good-government watchdog Integrity Florida and conservative Koch brothers’ Americans for Prosperity teamed up to release a blistering attack on Enterprise Florida subtitled, “Economic Development or Corporate Welfare?”

Last week, former state Sen. Paula Dockery, a Republican from Lakeland, argued in a Tampa Tribune column that it would be more beneficial for Florida to invest in training, technology, equipment and research than to “bribe” corporations.

State lawmakers also have rebelled against unbridled corporate giveaways. Gov. Rick Scott wanted $84 million in the 2015-16 state budget for economic incentives; lawmakers provided $43 million. He sought $95 million the year before; lawmakers approved $71 million.

Economic development officials say they have cleaned up the process, including passage of a state law in 2013 adding oversight.

The strategy isn’t likely to go away. In 2012, The New York Times reported that Texas, which has an ongoing friendly rivalry with Florida over who creates more jobs, spends $19 billion a year on business incentives, more than any other state.

Homans, of the EDC, said if an area couldn’t offer the right facility or an adequate workforce, “if they look at the city and state and we didn’t have any incentive programs, then we might be out.”

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A 2013 audit of Florida’s policies concluded that the state paid an average of $3,320 in incentive payments per new job. The salaries vary widely, with 2015 agreements ranging from $44,250 to $86,000.

In May, Ashley Furniture executives joined Tampa Mayor Bob Buckhorn, Hillsborough County Commission Chairwoman Sandy Murman, Homans and other officials at Centro Ybor for yet another news conference announcing a major corporate move. The Tampa site was in competition with six other locations for the e-commerce headquarters.

Ashley received $380,000 in incentives from the state and additional help from the city and county.

“Everybody was very excited to have Ashley Furniture locating a major part of the company here,” said Ken Jones, speaking on behalf of the retailer. “Ybor City is a perfect location for millennials and the younger employee set, particularly in digital. We couldn’t ask for better partners than the EDC, Enterprise Florida, Hillsborough and the city of Tampa. It’s been a real pleasure to work with everybody.”

After the series of announcements about corporate relocations and expansions, the area’s economic development officials aren’t resting on their laurels. The local Economic Development Corp. reports that it has 78 prospects in its 2015-16 pipeline.

The ultimate prize is being sought by local boosters including Vinik: a major corporate headquarters relocation to downtown Tampa.

Last month, Homans told Hillsborough commissioners that five Fortune 500 companies are considering relocating to Tampa. But don’t pop the champagne corks yet, he warned. That sort of recruitment is a laborious process, with Homans again citing his reliance on building relationships.

“When we go talk to a company, we might think that they could be a headquarters prospect,” he said. “But we’re not going to walk in the door and say, ‘Hey, how about moving your headquarters?’ We’re going to get to know them. We’re going to understand their business operations, because they might be in the process of making a decision about a distribution center, a shared-services operation, a divisional headquarters. We’re going to be talking about those, and at the same time, we’re going to be building a relationship that could build trust that could lead to a conversation about the headquarters.

“What it’s saying about our community is that we know we’re good enough for a global corporate headquarters, and that’s a big step, because it forces us then to create the marketing materials, to create the message that supports that belief,” Homans said. “And that’s new for us.”

Commissioner Murman quoted in this Tampa Bay Times article on TECO purchase:

Tampa Electric announces its sale to Canadian company Emera

• ByWilliam R. Levesque and Dan Sullivan, Times Staff Writers

Friday, September 4, 2015 4:54pm

• Next

TAMPA — The parent of Tampa Electric Co. and Peoples Gas announced late Friday it had reached an agreement to sell the Tampa-headquartered utility to Canada-based Emera Inc. in a $10.4 billion transaction.

The deal by TECO Energy, expected to close by mid 2016, would be one of the largest involving a Tampa Bay company if it is approved by federal authorities. It affects just over 1 million TECO and Peoples customers in Tampa Bay and throughout Florida.

The sale marks the closing chapter of a veritable Hillsborough County institution whose roots go back 115 years when the company got its start managing Tampa’s electric trolley system. TECO becomes a wholly owned subsidiary of Emera, which is headquartered in Halifax, Nova Scotia.

Hillsborough community leaders were already lamenting TECO’s departure as an independent local institution.

Former Tampa Mayor Dick Greco recalled his close friendships with past TECO presidents and how its top leaders were always close with everyone who worked for them.

“They were always willing to do whatever the city needed. All that’s going to be bygones now,” Greco said. “Tampa Electric has just been a household name since I was a kid. It just feels funny.”

But Emera president and CEO Chris Huskilson and TECO chief John Ramil took pains at a Tampa news conference to provide reassurance that little will change once the merger is done.

“Tampa Electric will continue to be the area’s hometown electric company,” said Ramil, noting the utility would not even change its name.

Huskilson said existing electric rates will not change, no job losses are anticipated, and the TECO employees and executives will remain an integral part of the communities where they live and work.

“We recognize that TECO and its employees are a vital presence in many communities,” Huskilson said. “I love the phrase that TECO will continue to be the hometown electric utility for its customers. That’s exactly what we want it to be.”

In fact, rates can’t change without approval by state utility regulators.

TECO announced earlier this week that it was proposing that its 2016 residential electric rates be reduced by $2.25 per 1,000 kilowatt hours, a drop of 2.1 percent to $106.22 for a typical residence. The rate decrease, which is because of lower natural gas prices, is expected to be approved by state utility regulators in November.

The all-cash deal still requires several federal approvals, including a review by the Department of Justice and shareholders of the two utilities. The combined company will have 2.4 million customers and $20 billion in combined assets, making it one of the 20 biggest utilities in North America.

TECO’s board of directors had met several times in recent days to consider the deal. Final board approval came shortly after the stock market closed at 4 p.m. Both TECO and Emera’s board unanimously approved the transaction.

The sale comes less than two months after TECO Energy confirmed rumors that it was considering a sale. The rapid conclusion of TECO’s search for a suitor affects 700,000 customers mostly in Hillsborough and Polk counties and another 350,000 Peoples Gas Systems customers throughout Tampa Bay and Florida.

The sale also includes TECO’s New Mexico Gas Co., which has 510,000 customers across that state.

Hillsborough County Commissioner Sandy Murman said she was disappointed to see TECO absorbed by a larger company.

“Obviously my reaction to the sale of TECO is about the same feelings I had when Maas Brothers went away,” Murman said. “I’m very saddened that we’re losing such a fixture to our community, a great community partner. … I will miss calling TECO, but I do look forward to getting to know Emera.”

Former Tampa Mayor Sandy Freedman said she was concerned to see TECO absorbed by a company without local roots.

“As a public official you want to know who to make a call to over there if there is a problem,” she said. “Now you’re going to have a whole new set of players that nobody knows.”

Perhaps to head off just that sort of concern, Emera said as part of its commitment to the communities it serves, a local “operating board” would be established with local representation. It was not immediately clear what the duties of such a board would be.

While Emera is a utility based in Canada, it also owns assets in New England. With the acquisition of TECO, 71 percent of Emera’s assets will be in the United States.

The companies said TECO shareholders would receive $27.55 per common share, which is 48 percent above TECO’s stock price on July 15, which is the day before TECO confirmed Internet reports that it was exploring a possible sale. TECO stock closed at $21.07 when markets closed at 4 p.m. Friday.

The $10.4 billion deal includes the assumption of $3.9 billion in debt.

TECO’s unusual confirmation in mid July that it was considering a possible sale didn’t provide much detail, except that it was “exploring strategic alternatives” and had retained Morgan Stanley to help weigh its options.

Ramil said negotiations with Emera had not begun at that point. He confirmed that TECO fielded several additional offers from other utilities. But he said confidentiality agreements barred him from identifying them.

Two of the state’s utility giants, Duke Energy Florida and Florida Power & Light, surround TECO’s electricity service area, which led to speculation that one of those players might acquire the Tampa-based utility. Emera was a name that was absent in speculation.

A smaller utility is seen as being particularly appealing to bigger neighbors eyeing an opportunity to consolidate operations and bolster revenue.

TECO’s Tampa Electric, besides its large base in Hillsborough and Polk, also serves a handful of customers in the Oldsmar area of Pinellas and a small number in eastern Pasco County.

In recent months, TECO has moved to sell off its coal business, which operates coal-production facilities in Kentucky, Tennessee and Virginia. Emera officials said they supported the move to divest those coal assets. The officials said they expected those efforts to continue.

Freedman, on hearing Emera was based in Nova Scotia, joked: “That’s a nice place, I’ve been to Nova Scotia. The lights were on, so that’s a good sign.”

Times researcher John Martin contributed to this report. Contact William R. Levesque at levesque@tampabay.com or (813) 226-3432. Follow @Times_Levesque.