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FF - C] Given St. Lucie County's success with the lower job creation threshold and the average size of manufacturing firms in Indian River County, it may be necessary to lower Indian River County's minimum job creation threshold for the jobs grant program to be a more effective economic development incentive. St. Lucie County's jobs grant program is much broader than Indian River's in the type of businesses that can qualify for funds. In addition to manufacturing firms, many service related firms may be able to qualify for a St. Lucie County jobs grant. This explains why St. Lucie County has a minimum job creation threshold of five jobs. In comparison, Indian River County limits its incentives to manufacturing firms and firms identified as a targeted industry. Generally, manufacturing firms require more than five employees to maintain the manufacturing process. Therefore, reducing Indian River County's minimum job creation threshold from twenty jobs to ten jobs may encourage more local businesses to take advantage of the jobs grant program. Another difference between St. Lucie County's and Indian River County's jobs grant programs is the method in which the grant funds are awarded to the business. St. Lucie County spreads the payment of the grant funds over six years, and the payments are based on an executed grant agreement. Each year, the business is required to submit a job status report that verifies the business has created and maintained the number of jobs and salary level to remain qualified for the grant. If all of the criteria have been met for that year, the business is awarded a portion of the grant. This performance review continues for six years. Indian River County's program spreads its payment of the grant funds over three years. Instead of requiring an annual job status report each year, Indian River County requires the business to post a letter of credit for the grant amount. That letter of credit is to be effective for ten years. If at any point over those ten years the company fails to maintain the necessary jobs and salary levels, the county may draw upon the company's letter of credit. Based on feedback from local businesses, the method of payment and assurance used by St. Lucie County is preferred by potential recipients of the jobs grant program. A drawback to the letter of credit requirement is that the business is required to incur costs to obtain that letter of credit. In 1996, the Board of County Commissioners established the local jobs grant program in order to attract new businesses to the county and encourage existing businesses to expand. The objectives of this effort were to create a more diverse economic base and lower the unemployment rate. Based on its analysis, staff has determined that the county's local jobs grant program should be modified to make the program available to smaller businesses and to make the program more attractive to new and existing businesses. By reducing the minimum job creation criteria to ten jobs, more businesses will be able to apply for the grant. By modifying the payment method of the grant, the program will become more attractive to potential businesses. OCTOBER 24liogol 5 PG 6 6 9 MA