Summary:
Thales USA Inc. is a global leader in providing leading-edge connected in-flight entertainment (IFE) systems and services that enrich the travel experience. The company’s years of success in the IFE market have provided it with the ability to keep pace with trends in consumer technologies and cultivate a thorough understanding of passenger behaviors, preferences and expectations.
Thales is considering a major expansion in the United States in one of its fastest-growing market segments, in-flight entertainment and connectivity (IFEC). This 30,000 sf expansion would take place at the company’s existing facility in the City of Orlando. If the Qualified Target Industry (QTI) program incentive is made available to the company, Thales will create 173 new-to-Florida jobs by December 31, 2020, paying an average annual wage of $53,255, which is at least 125% of the 2013 Orange County annual wage. The average value of benefits that will be available to employees is $20,294, which includes health and dental insurance, life and accidental death/dismemberment insurance, flexible spending account, short term and long term disability, employee assistance program and legal and brokerage services. Thales’ total capital investment is estimated to be $6.43 million in construction and equipment. In addition to the City of Orlando, the company is considering California for this project.
The State of Florida will provide a total of $865,000 to Thales USA Inc. under the QTI program, which includes the City's local financial support. City staff proposes to provide the local 20% QTI match, up to $1,000 per job created, paying an average annual wage of $53,255. Under this arrangement, the City of Orlando would provide $173,000 as an incentive over a seven-year period. City staff is recommending this match because Thales is: 1) a targeted growth industry; 2) creating 173 new jobs; 3) investing $6.43 million in construction and equipment; and 4) considering other states for relocation.
The City of Orlando will benefit through the creation of 173 positions over the next seven (7) years and the likelihood of continued job growth and investment well beyond this time frame. Florida's Qualified Target Industry Program includes strict accountability requirements of the applicant. The pledge of funds pursuant to this resolution shall be contingent upon Thales USA Inc. being qualified by the State of Florida as a QTI Program participant, meeting its job and wage obligations under the program and future budget appropriations by the Orlando City Council. |