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each jobs grant agreement, whereby grant payments are made only after jobs are actually created and <br />maintained. Program requirements tie each payment amount directly to the number of jobs <br />maintained and provide payments made over a period of 3 years for jobs maintained over that period. <br />Recently, staff reviewed the 21 job grant agreements, determined that 3 are inactive, and cancelled <br />those 3 inactive agreements. This item provides information to the Board regarding cancellation of <br />inactive agreements. <br />ANALYSIS <br />While there are differences between each local jobs grant agreement due to program changes over <br />time and different circumstances for each company, most of the jobs grant agreements contain target <br />industry employment estimates based on best case hiring scenarios. Consequently, payments are <br />made based on actual hiring which is usually less than the maximum number of jobs referenced in a <br />grant agreement. In addition, all 21 local jobs grant agreements include requirements that companies <br />provide copies of their quarterly Florida RT -6 re-employment compensation (formerly UCT-6) <br />reports and also include provisions that allow the County to cancel the agreements if a company is in <br />default of a program requirement. <br />Because each agreement is legally binding upon the County and each respective company, and <br />because each agreement contains a financial obligation of the County to reserve funds and potentially <br />make payments, it is important to periodically review the agreements and cancel an agreement when <br />the company does not relocate or expand. Doing so brings into line the County' s legal liabilities and <br />frees up reserved funds for other uses. <br />Staffs recent review of local jobs grant files revealed that several of the companies with which the <br />County has local jobs grants agreements are in default due to inactivity. Those companies and <br />agreement related data are shown in the table below. <br />4Name o> <br />Company P <br />�cogsed <br />W. offJobs <br />"` <br />Year <br />Agreement' <br />Approved <br />'pota)$ <br />Max. <br />Amount ., <br />Approved <br />Fear 1'' <br />',Jobs Were; <br />toabe . <br />Created <br />Total <br />o Funds• <br />Disbursed <br />g <br />Reason for AgreementIA:. <br />E C ncellation ' <br />Aeroshade <br />Technologies, <br />Inc. <br />11 <br />2004 <br />$12,100 <br />2005 <br />$0 <br />Required Information not <br />provided by applicant. Company <br />located in Fort Pierce, FL. <br />XStream546 <br />Systems, Inc. <br />2005 <br />$500,000 <br />2007 <br />$0 <br />Company did not meet minimum <br />hiring requirements. Company <br />acquired by Veracity Network, <br />Inc. located in Melbourne, FL. <br />SMI Telecoms, <br />LLC <br />25 <br />2011 <br />$169,000 <br />2011 <br />$0 <br />County received communication <br />in July 2013 indicating SMI was <br />acquired by Quindell and would <br />not be expanding/relocating their <br />business into IRC. <br />TOTALS <br />582 <br />$681,100 <br />$0 <br />2 <br />3 <br />