Palm Beach County commissionersapproved a new five-year, $9.1 million contract with the Business Development Board Palm Beach County to attract and retain businesses.
Under the renewed agreement, the BDB will continue receiving $1.8 million annually through 2030, the same amount provided under the current contract, which expires Oct. 1.
The agreement requires the BDB to at least match the county share. The stipulation is intended to ensure the agency draws substantial private-sector support in addition to taxpayer funding.
BDB Executive Director Kelly Smallridge said the requirement is not an issue, noting the agency collects about 60% of its budget from its dues-paying members.
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There was pushback, though, at a county commission meeting in September when the contract came up for renewal.
County resident Lisa Johnson questioned the logic of using county funds for the agency after officials had already made significant cuts to the county spending plan. Department under the control of county commissioners have sustained a budget cut of 2%.
Johnson told commissioners that giving the BDB more than $9 million was not a good use of taxpayer money.
Palm Beach County says BDB money is a good investment
But Commissioner Joel Flores and Mayor Sara Baxtersaid the BDB is expected to bring in far more than $9 million by attracting new businesses to the county that will expand the area's tax base.
According to the county staff, the BDB has, for the most part, routinely exceeded the contract's required goals.
County officials use performance measures, such as fundraising targets, to gauge whether the BDB is leveraging taxpayer investments to attract additional financial support for its mission of recruiting businesses, encouraging expansions and promoting economic growth.
The fundraising provision comes as Palm Beach County continues to invest millions of dollars in economic development initiatives intended to attract employers, create jobs and diversify the local economy.
Under the terms of the contract, the BDB must create 250 new jobs through its recruitment and expansion initiatives, conduct 200 business needs assessments, participate in 10 international or domestic outreach missions, attend 30 economic forums, participate in domestic and international trade events, and secure national and international media exposure.
It is also expected to launch an annual business climate and competitiveness survey tool to monitor company needs, risks and expansion opportunities.
According to the county staff, the BDB helped either to create or retain nearly 1,800 jobs in the current fiscal year, exceeding its 250-job target. It held 69 economic forums and it spent $69,000 on marketing programs, above the required $25,000.
The organization conducted 166 business assessments, falling short of its 200-assessment goal.
Following Zohran Mamdani's victory in New York City's mayoral primary last year, the BDB sent relocation packets to executives touting Palm Beach County as a more business-friendly place to locate.
With a November referendum threatening to reduce property tax revenue, Flores said attracting new businesses is critical to helping support county services.
The BDB is a nonprofit corporation that has worked with the county to promote economic development since 1982.
Mike Diamond is a journalist atThe Palm Beach Post, part of the USA TODAY Florida Network. He covers Palm Beach County government. You can reach him at mdiamond@pbpost.com. Help support local journalism. Subscribe today.
This article originally appeared on Palm Beach Post: County approves $9.1 million deal to fund business recruitment efforts
