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Project North | Turbocor

stjoe

By stjoe
in Tallahassee

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Florida Megalopolis

Florida

Posted
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P.A. wants the county to Cancel Participation in TurboCor deal

Here's the bones of the issue. Brad Day with the Economic Development Council, when he first started working to recruit this company from Canada did not tell this city and county officials that the company was operating in the red, therefore they were led to believe all was good with this company, they thought they were getting a sweet deal until they recieved the books from the company. The company is new and they are operating in the red for the first four years of operation until 2007 when they project a profit of over $5 million, as many new companies do.

This would probably be a much smoother transition if the county and city were aware of the company's financial status from the beginning. The shock of the truth has disappointed those who were once all for this, but it doesn't have to. In some ways we are all disappointed, but in light of this disappointment we need to go to the negotiation table again and carve out a deal that benifits the taxpayers, if we are the ones who must pay out the money for incentives, and give the company just enough to make moving TurboCor to Tallahassee benificial.

I'm all for the city and county building the facility with OUR money regardless of wether or not Turbocor moves in, so in my eyes, we've got nothing to loose. I think the company will be successful once everything is rooted.

Here's the Story

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poonther Town

poonther

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This does make me sad. While I don't want our city investing in a "fly-by-night" company, it does take time w/innovative companies to turn a profit. It would be awful to hear that if this company moves to another city and then after a few years in the red that they turn into a super hot company and a magnet for other industries. I do think like you TJ that Brad Day handled this all wrong. He should have had full disclosure about the company's finances.

Question: Of all the incentives given to the company, how much of it is going to the building itself? In other words what I'm asking is after all the money is given to the company and let's say they folded or left town, how much of that money would remain here in town in the form of the builiding?

This is such a tough call, but as they say "nothing risked is nothing gained."

As I've said before, even if this deal falls through, this spec building shoudl be built, pronto!

Bill Law is still saying this company is a good thing and he's a very smart man, one that I trust.

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poonther Town

poonther

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Newspaper comes out in favor of this project.

Today's editorial from The Democrat:

Editorial

The most interesting part of this editorial is the following:

"It appears that a majority of city commissioners are ready to give the nod to bringing Danfoss Turbocor Compressors to town. But the city and county must act in tandem to make this job-creation proposition a reality. The county's "yes" vote today is crucial. The county's own financial advisers, the PFM Group in Orlando, says: "There are a number of factors in place that should help make (the company) a success.""

So it looks like the city is on board but the county is lagging. Nothing new there, I've always felt that the county commission was less progressive and more backwards than the city commission.

I also find it interesting that the county's financial advisers have spoken favorably about the project.

So based on this info., I think it all boils down to tonight's vote at the county commission meeting.

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poonther Town

poonther

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Here's the link to The Democrat article:

FOOLS

Sad but true quote here:

"I couldn't be more disappointed - the idea that 150 jobs are not coming to our community," Law said. "I don't know how to tell people we're moving forward when we're moving backwards."

I never ever agree with this guy, but for once in my life I do and that's scary:

"Quite frankly, I'm embarrassed," Grippa later said.

My question: How do we abolish the Hee-Haw County Commission?

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Florida Megalopolis

Florida

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Poonther... I'm with you. They are the most inconsistent group of people I've ever known. Just last week, when they were voting for Fallschase it actually seemed as if they had their minds on the future. They gave the developer the Benifit of the doubt in promise that he will do things right, taking a gamble that sometime in the future the county will be able to come up with the money to fund the expansion of the roads and/or the creation of a new one. Now when it comes to jobs and REAL economic development, they pull the plug. The city should step in now and make this work out so the people in the community can see who'se actually willing to do what it takes to help Tallahassee develop. I've wanted consolidation for the longest for this very reason. One government has a plan for the future, the other has no clue.

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poonther Town

poonther

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TJ I could not agree w/you more. We are definitely on the same page. I know that Turbocor is on tonight's City Commission agenda. Do you think they will still discuss it and do you think there is anything realistic that they can do to save the deal? Heard any inside scoop over there at City Hall?

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Florida Megalopolis

Florida

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My office is actually dealing with some of the legal issues surrounding the Turbocor deal, so anything I know from the office I usually can't share. BUT I will say the the city could do a number of things to save this deal such as offer a preferred rate to the company for utilities, offer low-interest financing... again a number of options. One thing about the people at the city, they go through all of the options before they rule something out... I wish the county would have been wise enough to do the same.

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poonther Town

poonther

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Make it happen TJ, make it happen!

I'm in a sour mood today because of this. Actually it's the quote from Mr. Law that is so true it stings. And the fact that I agree w/Ronald McDonald aka "Get a Grip Grippa" makes me shiver, shake and boogles my feeble little mind.

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Florida Megalopolis

Florida

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LOL. Ronald McDonald (the red hair) LOL! Thats funny. You know I hardly agree with him either, but he was on the right side in this one. Where is that Proctor when we need him to vote in favor of something? He's a loose canon.... you never know where he's going to vote. I'm rather disappointed in Jane Sauls also... I figured she would have put a little more brain into her decision. I'm not as surprised with Winchester's position... with anytype of growth related issue... he always seems to be on the NAY side.

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Florida Megalopolis

Florida

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bye bye turbofreak! county commissioners vote against adding their money incentive tonight :shok:

City Commission Saves Turbocor Deal

It would be an understatement to say this deal would have been dead in its tracks if left to the County Commission, but we're talking the "New" Tallahassee City Commission, who tonight voted to do whatever reasonablly necessary to make this deal work.

The City Staff's reccomendation was to stick to the initial investment in the project and no more. But the City Commission at the motion of Commissioner Allan Katz voted to take a rish. At the request of Dr. Bill Law (President of Tallahassee Community College and Economic Development Council), the City Commission voted to forward $1.6 Millon dollars toward the incentives package for the company for relocation purposes (where previously they were placing $750,000 for relocation incentive and $650,000 incentive toward the financing of the building.) This means that the city will not recieve the $650,000 back as loan payments from Danfoss Turbocor, but its an investment they were willing to make.

The deal also calls for the city financing nearly 76% of the facility at Innovation park. Innovation park would own the other 24%. This investment could cost the city between $4 - $6 Million dollars which they will cash fund with dollars that would have likely gone toward a capital improvement project, and lease to Danfoss Turbocor over the term of 20 years with the intent of at least breaking even at the terms end. "We are not in this venture to profit" was the quote of the night from Commissioner Gillum who was one of the 4 "yes" votes on this issue. The lone dissenting vote was Commissioner Mustian's, who cited concern with the numbers coming in with very little time to consider them.

Danfoss Turbocor is an upstart company with $5 Million dollars in equipment, $4 Million Dollars in inventory and $3 Million Dollars in accounts recievable, for a total of approximately $12 Million in assets. The concern over wether or not the company would "go under" during the duration of the lease is resolved with the inclusion of the city as "first-in-line" before any other creditors or vendors to the company in the new agreement will allow the city to liquidate the assets of the company and sell off to recover the tax payer's money. However, Turbocor plans to be here long after its 20 year lease is up.

I think the people in the City of Tallahassee ought to be very proud of its City Commission. We have elected ourselves a very good group of leaders who are willing to the take risks necessary to improve the quality of life and economic vitality of this Capital City. This move sends a signal to other companies willing to relocate that Tallahassee is now open for business!

The 150 new jobs that Turbocor will bring will require over 400 other full time call center support-type jobs alone. This is good news for a government-heavy community trying to diversify its economy. This is the perfect fit for what Tallahassee seeks to attract, high paying jobs in a light manufacturing industry. College students who are working on a degree in engineering will actually have a place to work locally when they graduate. Retention of this knowledge base is key to our growth as America's next great city.

We're moving forward as a community, one piece at a time.

They did it for you Poonther!!!

:yahoo: WAY TO GO CITY COMMISSION :yahoo:

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poonther Town

poonther

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Hey TJ I read your update last night and it put me in the best of moods! Thanks for that write up. Your write up was brilliant, much much better than the Democrat story. The City should use your article for the press release. This is great news. So then I take it this is a "done deal" w/Turbocor? They will definitely be moving here?

If there ever was a case for consolidation, this is it for sure. If not, can the City succeed from the County and become an independent city-state like they have in Virginia?

No one else but me would notice the following facts. It really doesn't mean anything, but it is kinda interesting. Correct me if you think I've got the information wrong, but here is a list of all the commissioners (City & County) that voted on the Turbocor deal and when they moved or were born here in the Tallahassee/Leon County/North Florida area.

Those voting YES on the deal:

Mayor Marks: from Miami moved here for college

Gillum: moved here for college from Miami/Gainesville

Katz: moved here after college for work from MO I think

Lightsey: moved here after college in '84 from WV

Thaell: moved here as an adult born in MA raised in NY

Grippa: from NY moved here after Law School at Tulane

Depuy: from Central Florida I believe moved here for work after Marines

Those voting NO on the deal:

Rackleff: born in Quincy school at Florida High moved away came back

Winchester: life long Leon County resident

Sauls: life long Leon County resident

Proctor: life long Leon County resident

Mustian: born Panama City, FL but childhood and adulthood here in Tallahassee

Notice a pattern in their backgrounds and how they voted? Does it mean anything, probably not but it sure is interesting who are the more progressive thinkers.

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Florida Megalopolis

Florida

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You know... that is interesting! I was unaware of the background of the county commissioners, but now that you've pointed that out... VERY interesting. I'm a lifelong Tallahasseean, and I don't know what happened to me to make me want more for my city. I hate complacency.

I think Proctor's vote was more one based on "showing out" that particular night, Mustian initally voted in favor of Turbocor and Katz originally voted against, then each of them swapped votes... interesting.

Poonther is exactly what I need to keep me up on all of the key details. You seem to notice everything. You remind me of Eugene Danaher. LOL!

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Florida Megalopolis

Florida

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This is definately a decision that the City of Tallahassee will not regret. Face it... every year our city government waistes money on roads that it either paves and then goes back to repave, employees who aren't productive, festivals that last a few hours, lights that could be turned off to save money, excess travel that could be eliminated... here we've invested in what will define the future of this city. There's a reason we have the MagLab here in Tallahassee... I think over the next few years, we'll truly see how valuable an asset it is.

A few years from now Tallahassee will be a leading city in energy generation and conservation, using magnetic technologies... I'm almost sure of it.

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Florida Megalopolis

Florida

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EDC Vocal After Turbocor Deal

Click Title for Story

In a situation where we almost let one slip away, the EDC has sat down to discuss ways to prevent the confusion that surrounded the Turbocor tranaction.

To me it all happened at warp-speed compared to many things that go down in the community, and like most things creative and risky, the City saved the day.

In the article, Bill Law, President of EDC and TCC, questions the County's relationship with the EDC and their partnership to recruit jobs to Tallahassee.

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