Metro Orlando software consultants, online retailers, and digital-media firms are in line to get millions of dollars worth of tax breaks if they can create hundreds of jobs — and fill them — in upcoming years.
Agile Thought Inc., Comtech Systems, and GameSim are among the Orlando-area technology companies approved by government officials for economic-development incentives. In exchange for the incentives, the firms have promised to pay new workers average annual wages in the $70,000 range, according to records from the Florida Department of Economic Opportunity.
But hiring sought-after tech workers can be easier said than done.
“While the program is a great benefit, we are cautious to make sure we are making the right hires,” said Andrew Tosh, founder of videogame developer GameSim. Located near the University of Central Florida, GameSim has an incentive package worth about $190,000 if it adds 40 jobs by the end of 2016. So far this year, it added eight.
Incentives have long been prized by companies as a way to offset the amount of state and local taxes they pay. In recent years, though, the state has cut incentive spending. In addition, the tax breaks have come under increased scrutiny. Earlier this year, Florida Legislature’s Office of Economic and Demographic Research released a three-year analysis of seven incentive programs. It found that only four of seven economic-development projects produced a return on the government’s investment. Orlando’s Sanford-Burnham Medical Research Institute was one of the underperformers, according to the report.
In the four-county Orlando area, 11 companies have had active incentive contracts with the state Department of Economic Opportunity this year. If they create 691 jobs, mostly during the next seven years, they will get more than $5 million of incentives from state and local governments. The average wages for those new jobs range from $35,814 at Kissimmee munitions manufacturer Rattlesnake Tactical LLC to $85,000 at Agile Thought, a software firm in downtown Orlando, state records show.
One of the rare non-technology companies in line to receive state incentives is the parent company for Orlando City Soccer Club. It won approval from the state to receive as much as $105,000 for creating 35 jobs over six years. The average annual salary for those positions is on the low side for companies getting an economic boost from the government — $45,485. Orlando Sports Holdings LLC is also on track to get $21,000 of incentives through local governments. The club has added more than 40 full-time jobs during the last 12 months and expects additional hires “as we start the new year,” spokesman Leonard Santiago said.
Other incentivized companies include:
*Agile Thought Inc.: The Tampa-based software consultancy has a downtown Orlando location on the ground floor of CNL Tower II. Of the incentivized companies in the Orlando-area, Agile Thought had the highest average annual salary for the 15 jobs it hopes to add over six years — $85,000. The state approved the firm for as much as $150,000 in incentives. The company generally has a more seasoned workforce but might reach out to UCF grads as it expands, said Jeff Alagood, chief operating officer.
*Comtech Systems: Producing equipment for radio, television, and wireless communications, Comtech is the most recent Orlando-area company to get incentive approvals from the state. In October, the state granted the Orlando-based firm as much as $300,000 to hire 50 employees over eight years. The average salary for those jobs is forecast at $72,000. Located in Orlando Central Park off South John Young Parkway, the company has also been approved to get as much as $60,000 of incentives from local governments. With about 120 employees in Orlando, Comtech has been in the region for more than three decades. It’s now negotiating to move to a larger facility, said Brian Burt, vice president of the company.
*GameSim Inc.: Based in Orlando, Tosh’s company will get $160,000 in state incentives and $32,000 in local incentives by adding 40 jobs, which are expected to have an average annual salary of $71,074. Located off Research Parkway near UCF, GameSim has grown with new contracts related to digital media and simulation work for the military and video-game development for commercial publishers.
*Orion Technologies: The creator of operating systems for military and industrial clients moved to east Orange County’s Research Park area from Merritt Island in the fall of 2013. In its $63,000 incentive agreement with the state, Orion projected it would create 21 jobs over seven years and offer an average annual wage of $55,000. David Beckman, chief financial officer for Orion, said the group has added six employees this year and now has a staff of 17 with at least one more hire expected.
*TravelClick Inc.: The provider of reservation systems and business information for hotel companies has one of the largest current awards for an Orlando-area company. The state has approved as much as $900,000 of incentives in exchange for the addition of 150 jobs over seven years. Local officials have approved an additional $180,000 of incentives. The average annual salary of those jobs would be $47,701. The jobs would include positions in management, administration, sales, customer care, and web design and development, according to John Lewis, the county’s economic development administrator.
In addition to those companies, other organizations in Metro Orlando with active incentive packages include military contractor Lockheed Martin. It has been awarded as much as $1.6 million of incentives for creating 120 positions during the next two decades.
In the Orlando area, the Metro Orlando Economic Development Commission has seen a 40 percent annual increase in the number of prospective firms considering locating in the region, according to commission President Rick Weddle — with a greater share of them are from out of town, which tends to lead to higher salaries for the area, he added.
mshanklin@tribune.com or 407-420-5538
