I read an article written by a Palm Beach Post Staff Writer indicating that the Florida Department of Economic Opportunity is considering clawbacks for incentives paid to Digitial Domain Media Group. According to the article, Digital Domain was paid a total of $20 million in four installments in 2009, 2010 and 2011 under the Quick Action Closing Fund incentive program. Unfortunately, the company did not meet the overall requirements for the program and thus, was responsible for returning a portion, if not all of the funds to the State. Here is a link to the full article http://bit.ly/S6NoU4.
This situation with Digital Domain shouldn't scare businesses from participating in economic incentive programs. However, I strongly urge businesses to make realistic estimates of what they'll be able to accomplish. Many businesses overestimate their goals to qualify for a larger award amount. This is definitely not a sound strategy when pursuing incentives.
I would say though, that this situation should encourage businesses to hire a firm who fully understands the incentives process and requirements BEFORE they start pursuing these incentives. If you are considering economic incentives, give us a call. We have the experience you'll need to make the BEST decisions as it relates to your incentives.