May 2010 Economic Update

 

May 27, 2010

After watching the unemployment rate decrease over the past few months from 15.4% in January to 13.9% in April, I believe we are starting to see a trend toward real economic recovery. A shrinking labor force, fewer layoffs and plant closures, and modest job gains through new job creation are all determining factors in this economic shift. While it is still unacceptable that 18,750 people are unemployed, it is encouraging to know that 1,248 have jobs this month who did not have one last month. That is definitely a step in the right direction.

Currently, several companies are one step closer to hiring more people thanks to local and state investments that spurred their decision to move to or expand in Ocala/Marion County. Details regarding Fire Programs’ move to Marion County which brings 13 targeted jobs and creates 15 more, as well as the Industrial Development Authority’s, and Marion County Commission’s approval of a Recovery Zone Facility Bond issuance for Cone Distributing’s $13.5 million expansion slated to create 50 targeted jobs, are covered in this Economic Update.  

This month the EDC hosted three industry site visits and received numerous inquiries from companies exploring our community. Staff continues work on 16 new and 12 existing active projects which also shows an uptick in economic activity.  Now, more than ever, “A Constant State of Readiness” comes into play as employers can see firsthand the collaborative nature and excellent customer service provided through our public and private partnerships.

Best Regards,
Pete Tesch Signature
Pete Tesch
President/CEO

 


FirePrograms Software (FPS) will move their operation with 13 employees from Beverly Hills, Florida, to Marion County near Ocala’s International Airport. Company leaders plan to create 15 additional positions over three years. The average salary for those positions is $48,303 plus benefits. The company has also committed to investing at least $300,000 in capital investment, machinery and equipment.

“We are pleased to see a company connected to our strong leadership in the fire industry, bring these kind of high tech/high wage jobs to our community,” said EDC President/CEO Pete Tesch.

FPS is a technology company that develops and supports various software packages for the fire industry. The company serves 2,300 fire departments across the U.S. and Canada.

Relocating FirePrograms Software from Citrus to Marion County will provide the

company with proximity to other fire industry providers (e.g. Class 1, E-ONE, Inc. Classic Fire, LLC, and Pro Poly of America, Inc.). The move is expected to also enhance an emerging fire technology cluster and provide greater synergies.

It was synergy among the public and private sectors that confirmed the decision for the company’s President, Gary Ewers. “When we first considered locating the company in Marion County, the first place we went was the EDC. They were the “go to” people who presented the opportunities and walked us through the processes. The City and County were very attentive and seemed to really want us to be here.”

Ewers shared the growth plans for the company caused them to look for a location where partnerships could be formed. “The programs here that focus on job creation made sense for us. When you are trying to grow, any benefit that helps offset some of the upfront expenses makes a difference.”

At their March 16 meeting, Marion County Commissioners granted Ewers Technology, Inc., doing business as FirePrograms Software, a $28,000 Marion County Economic Development Financial Incentive Grant (EDFIG). The company has requested $43,000 from the City of Ocala’s Economic Investment Program (EIP). Council has approved the preparation of an agreement that will encompass performance measures for the company to meet before grants are dispersed. Once the agreement is finalized it will be presented to Council for final approval.

 

In September 2009, Marion County Commission’s decision to declare the County an Economic Recovery Zone opened the door for qualified businesses to apply for a Recovery Zone Facilities Bond under the American Recovery and Reinvestment Act. These exempt bonds were designed to spur economic development projects by providing low interest bond financing to qualified companies creating jobs in a distressed area.

Only one local company endured the rigorous application process, home-grown Cone Distributing, Inc. The Industrial Development Authority (IDA) reviewed the application with preliminary approval on May 12, followed by the Marion County Commission’s approval on May 18.

The Cone project was accelerated when the City of Ocala applied for and received a U.S. Department of Commerce Economic Development Administration (EDA) $3.5 million grant to extend 44th Avenue that will connect the property to U.S 27. The $13.5 million project will create approximately 50 new jobs paying $41,000 per year, and hundreds of construction jobs.

 
 
   

Previous Economic Updates:

January 2009May 2009August 2009November 2009February 2010
March 2009June 2009September 2009 December 2009March 2010
April 2009July 2009 October 2009 January 2010 April 2010