FEDC Inside Track for Legislative Affairs: Florida Economic Development News from the Governor’s Office

The Office of Florida Governor Charlie Crist issued the following economic development news this week:

 

Governor Crist Signs Bill Allowing $1.95 Billion In Investments In Innovative Florida Companies

On the floor of the New York Stock Exchange (NYSE) on May 22, 2008, Governor Charlie Crist ceremonially signed Senate Bill 2310, allowing $1.95 billion investments in technology and growth enterprises, such as alternative energy, life sciences and aerospace. The legislation also doubles Florida’s alternative investments from $9.2 billion to $18.4 billion.

“This infusion of investment capital will enhance the state’s capacity for innovation, economic growth and higher paying jobs for Floridians,” Governor Crist said. “Florida is committed to growing industries such as aerospace, life sciences, and energy solutions.

The legislation allows the State Board of Administration (SBA) to invest 1.5 percent of its estimated $130.2 billion in total pension fund assets. Technology and growth investments include, but are not limited to, space technology, aerospace and aviation engineering, computer technology, renewable energy, and medical and life sciences.

“Today I have traveled to Wall Street to bring the message of Florida’s innovation economy to the epicenter of the world’s financial community,” Governor Crist said. While on Wall Street, Governor Crist met with Larry Leibowitz, group executive vice president and head of United States Markets & Global Technology for NYSE Euronext; Noreen M. Culhane, executive vice president of Global Corporate Client Group; and Jeffrey H. Eubank, senior vice president of NYSE Global Affairs & Government.

The legislation also will increase the amount of Florida’s alternative investments, from five percent to 10 percent of SBA’s $184 billion in total funds available for investment. Alternative investments are those made in a private equity fund, venture capital fund, hedge fund, distress fund, or a direct investment in a portfolio company through an investment manager. It is expected, however, that other venture firms will invest even more of their own money as a result of Florida’s increased investment, creating a total investment pool many times higher than just Florida’s contribution.

Joining Governor Crist for the announcement are bill sponsors Senator Jeremy Ring and Representative Frank Attkisson; Dr. Dale Brill, director of the Governor’s Office of Tourism, Trade and Economic Development; and Mark Wilson, president and chief executive officer of the Florida Chamber of Commerce.

 

Governor Crist Announces European Team Florida Trade And Business Development Mission

Governor Charlie Crist on May 23, 2008 announced the Team Florida Trade and Business Development Mission to the United Kingdom, as well as to France, Russia and Spain, on July 12-22, 2008, to encourage trade and investment in Florida and its international partners with a focus on aerospace, aviation and alternative energy. The Governor will hold high-level meetings with senior government officials and business representatives during the mission.

“The UK and other countries in Europe include some of Florida’s most important international partners, in both trade and tourism,” said Governor Crist. “I look forward to strengthening our relationships and working toward developing new economic opportunities for the Sunshine State.”

Florida and the UK enjoy strong economic ties, with two-way merchandise trade valued at $2.8 billion, making the UK Florida’s thirteenth largest trading partner. Further, the UK is ranked second in terms of Foreign Direct Investment (FDI) in Florida, totaling $4 billion in 2005. At present, one-third of all British firms in the United States operate in Florida, and about one in five Floridians working for a foreign-affiliated company are employed by a British firm. In total, British-affiliated companies employ more Floridians than companies from any other foreign country, with 335 subsidiaries employing more than 41,000.

In terms of tourism, the United Kingdom is Florida’s top overseas tourism market, with 1.34 million United Kingdom arrivals for 2006. On average, travelers from the UK spend nearly two weeks in Florida and $3,196, with 72.5 percent traveling to Orlando, 15.3 percent to Miami and 12.5 percent to the Tampa/St. Petersburg area.

During the Team Florida Trade and Business Development Mission, the Governor will inaugurate the Florida Pavilion at the Farnborough Air Show, one of the largest aerospace and aviation shows in the world, as well as deliver keynote addresses at events hosted by the Atlantic Partnership and Visit Florida Inc. Among other meetings, the Governor will also meet with Robert Tuttle, United States Ambassador to the UK; His Royal Highness the Prince of Wales; The Right Reverend James Jones, the Bishop of Liverpool; Dr. Kim Howells, Deputy Foreign Minister; and Hilary Benn, Secretary of State for the Environment.

A delegation from Florida will also have the opportunity to focus on climate change by meeting with the Carbon Trust, the UK government’s official agency on climate change.

Governor Crist will also travel to France, where he will meet with senior government officials and visit a nuclear facility to promote partnerships between Florida and France in the area of alternative energy. France is a world leader in the production of nuclear energy and is Florida’s 12th largest trading partner. Bilateral trade reached $3.1 billion in 2007, an increase of 17.9 percent from 2006. Additionally, France is Florida’s sixth largest source of FDI, at more than $1.2 billion in 2005.

Following France, Governor Crist will travel to Russia to meet with government and business leaders to promote Florida-Russia economic relations. This visit follows the recently announced United States-Russia Economic Dialogue, ensuring that Florida is well positioned to advance United States-Russia bilateral trade and investment. Two-way trade between Florida and Russia was more than $986 million in 2007.

Lastly, Governor Crist will visit Spain, meeting with government officials and private sector representatives to discuss Florida-Spain trade and investment, and partnerships in alternative energy. Nearly 400 Spanish companies in Florida have invested more than $200 million, and there are more subsidiaries of Spanish companies in Florida than from any country in the world. Two-way trade between Florida and Spain was more than $950 million in 2007. Additionally, between 2009 and 2015, a number of events throughout Florida are being planned to celebrate the long history of Spanish influence in the Sunshine State.

Coordinated by Enterprise Florida Inc., the Team Florida delegation will include business and governmental leaders, as well as representatives from economic development organizations and state research institutions. This will be the Governor’s third business development mission since taking office in 2007. Most recently, last November the Governor led the largest single-state delegation to Brazil in United States history, which generated more than $300 million in actual and anticipated sales.

 

Should you have any questions or comments, please contact Tracy Mayernick at (850) 445-3000