Most Successful Recruitment Tool
Jun 08, 2021
Lease/ Purchase agreements are one of the business recruitment tools that the Hardee County Economic Development Office uses.
The annual lease amount is often determined by figuring 6% of the gross investment. For example, if the facility cost 400,000 to build, the annual lease would be $24,000.
From that lease payment, the Industrial Development Authority pays the building's taxes and insurance. The portion of the lease payment that is left can be applied to the purchase price of the building depending on the number of jobs created.
A scale of jobs created is used to determine the percentage of the payment that can be applied to the purchase of the building.
An example of job creation lease/ purchase agreement:
- 12 jobs created = 50% of lease payment applied to purchase of building
- 18 jobs created = 75% of lease payment applied to purchase of building.
- 24 jobs created = 100% of lease payment applied to purchase of building.
This recruitment tool has been successful in recruiting businesses and incentivizing job creation!
This facility was built for Florikan to incentivize the company's relocation to Hardee County. Florikan has already purchased their building and exceeded their job creation expectations.
They have even expanded into another building in the commerce park and are paying a lease (without a purchase agreement). Florikan currently employs 75 people in their facility.