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Luring 1,000 jobs to Tampa area could cost local governments nearly $2 million

TAMPA — Persuading three financial services companies to bring up to 1,000 jobs with better-than-average pay to Hillsborough County could cost city and county governments a total of nearly $2 million spread out in multiyear incentive packages.

Both the Tampa City Council and Hillsborough County Commission are scheduled Thursday to consider offering cash incentives to the Depository Trust & Clearing Corp. and Digital Risk LLC. The companies are in financial services, an industry the city has targeted and has had some success pursuing.

"It kind of fits in our sweet spot," Tampa economic opportunity administrator Bob McDonaugh said Monday.

A proposed expansion of Depository Trust's existing Tampa operations would include "high-level managerial and technology positions," Tampa Hillsborough Economic Development Corp. president Rick Homans said in a statement.

Likewise, he said, Digital Risk is looking to move here and would be a "welcome addition" to the local economy.

So the incentives, "if approved, will help us compete for those jobs," Homans said.

Depository Trust, based in New York, plans to create 255 new jobs either in Tampa or Jersey City, N.J.

The company first expanded to Tampa from lower Manhattan after the 9/11 terrorist attacks. It processes up to $1 trillion a day in Wall Street trades.

If it goes ahead with its proposed expansion here, Depository Trust would be expected to create jobs paying an average of $81,110 a year — twice the average salary in Florida. Its workforce here would grow from 530 to nearly 800. It also has said that by the end of 2013, it would invest $4.8 million more at its campus near Bruce B. Downs Boulevard and Interstate 75.

Digital Risk, based near Orlando, says it could bring up to 600 new jobs averaging nearly $50,000 a year to a yet-to-be-disclosed location in or near downtown Tampa.

The privately held company provides analytical and risk-management services to buyers and sellers of mortgages and mortgage-backed securities. In a deal to receive state incentives, the company agreed to create 1,000 new jobs in cities around Florida. So far, 420 of those jobs have gone to Boca Raton or Jacksonville.

The city of Tampa's share of both incentives packages would total $918,500 — $468,500 over five years for Depository Trust and up to $450,000 over four to eight years to Digital Risk. With both companies, the incentives are consistent with what the city has offered in the past, McDonaugh said.

Hillsborough commissioners will consider incentives totaling $973,500:

• $468,500 to Depository Trust. As part of the city and the county incentive packages, the company would retain 35 jobs that it has already created in Tampa. If it chooses another state, those jobs would be transferred there.

• Up to $450,000 over four to eight years to Digital Risk, assuming that the company goes ahead with its plan to locate inside the city of Tampa.

• Up to $55,000 over four years to a third, currently unidentified company that would be expected to bring 110 financial services jobs paying more than $51,200 a year to Temple Terrace. The company also would be expected to make a $6.6 million capital investment if it moves to Hillsborough.

Unlike DTCC or Digital Risk, the third company's name is not public at this point because it is seeking incentives through Florida's "qualified target industry," or QTI, tax refund program. It also is considering locations in Utah and Ohio.

The entire package of city, county and state incentives for the company would total $550,000, or $5,000 for each new job. Of that, $440,00 would come from the state of Florida. Homans said the Temple Terrace City Council last week voted to approve its share of $55,000.

Richard Danielson can be reached at danielson@tampabay.com or (813) 226-3403.

Luring 1,000 jobs to Tampa area could cost local governments nearly $2 million 11/12/12 [Last modified: Monday, November 12, 2012 10:51pm]

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