Economic groups speak out against plan to abolish Enterprise Florida

TALLAHASSEE - A plan by House leaders to cut ties with the state’s economic and tourism development agencies cleared its first hurdle Wednesday despite a long line of business leaders who agreed with Gov. Rick Scott that the move is shortsighted and will hurt Florida's economy.

The House Careers and Competition Subcommittee approved the proposal after spending more than an hour hearing from business owners who said the bill would hurt the state.

The bill, filed by GOP Rep. Paul Renner of Palm Coast, would end 23 programs that provide state incentives, including Enterprise Florida and VISIT FLORIDA.

The bill is championed by House Speaker Richard Corcoran, R-Land O’ Lakes. He promised to strip funding from VISIT FLORIDA and Enterprise Florida just a month after last year’s legislative session. An analysis on Renner’s 172-page bill released Wednesday determined shutting down state funding for the two agencies and the majority of other incentive programs would save taxpayers $185 million.

The state's use of taxpayer money for entities like Enterprise Florida and VISIT FLORIDA has come under scrutiny after reports of questionable spending by the two agencies. Scott ordered a review of Enterprise Florida, which moved to cut $6 million in spending and replaced its leader. VISIT FLORIDA angered lawmakers after the agency declined to release details about a $1 million contract with rapper Pitbull.

Pitbull reveals $1 million VISIT FLORIDA contract that drew state House lawsuit

The performer released the entire contract after Corcoran sued to obtain details. The agency, which had previously withheld public records, later released details of contracts showing a former director's federal partnership received more than $9 million and a Tallahassee-based company received more than $11 million to produce a cooking television show with celebrity chef Emeril Lagasse.

State tourism contracts went to former chief of VISIT FLORIDA and 'Emeril' cooking show

Corcoran argues Florida’s cash and tax incentives place some businesses at an unfair advantage over competition. A House report supporting the bill argued many of the incentives and agencies like VISIT FLORIDA and Enterprise Florida actually hurt the state's economy.

Scott blasted Corcoran this week, saying the speaker was pushing the idea to help his future political goals. The governor has said Corcoran's move to gut the incentives program will cost the state business and jobs. Scott, who was a businessman before running for governor, said Corcoran and others shouldn't lecture him about creating businesses.

Governor, House speaker at odds over Florida's tax aid to companies

A number of Wednesday's speakers supported Scott's arguments.

Ed Caum, a boat captain for New Port Richey-based Island Paradise Charters, told the committee his business is too small for a marketing budget, and VISIT FLORIDIA fills that void.

“VISIT FLORIDA is my marketing department,” Caum said. “Boat captains don’t do marketing — VISIT FLORIDA is my network.”

The committee also heard testimony on how Florida’s incentive programs allowed businesses to expand in the state. Tallahassee-based truck dealer Four Star Freightliner had thought of expanding its operation with help from economic development groups in Georgia. But Enterprise Florida presented a deal that led to a new facility in Gadsden County.

“We were getting extremely aggressive deals from groups in South Georgia, but Florida really stepped up to the plate,” Prior said. “They did a good job connecting us with people and municipalities to get what we need.”

Prior said the deal he brokered with Enterprise Florida included tax incentives given by Gadsden County. The Four Star Freightliner maintenance department also partnered with a local technical school.

“South Georgia is attractive to us because of our other locations there,” he said. “But Florida wanted our business.”

Rep. Joe Gruters, was the only Republican on the committee to vote against Renner’s bill, supporting Scott's argument.

“The question we have to ask ourselves is what do we want our state to look like in 10, 20 or 30 years,” Gruters, of Sarasota, said. “We can’t lose the momentum we have now with jobs.”

After the vote, VISIT FLORIDA President Ken Lawson said his fight was far from over.

“We have a value to the state of Florida,” Lawson said. “We heard it and the members heard it from people in the room.

“VISIT FLORIDA has to stay.”

Scott uses Enterprise Florida and VISIT FLORIDA to carry out his signature pursuit of growing jobs in the state. After the meeting, Scott's Twitter account published a message saying House members had “turned their back on jobs today by supporting job killing legislation.”