Florida is a popular tourist destination for people from all over the world. It makes sense that travel groups want their corporate headquarters in this area, and Hertz liked that idea so much that it decided to go ahead and move its headquarters to the Golf Coast of Florida. This is, of course, bad news for North Jersey, which used to be the home of Hertz’s headquarters.
Hertz is moving its headquarters to Florida thanks to the state offering new tax incentives worth $85 million. This is something that Florida is doing to help keep its tourism industry strong. After all, tourism is how Florida makes most of its money.
Florida gets more than just Hertz’s headquarters, as this will see an extra 550 jobs created in the state. This is sure to hurt the job market in North Jersey as people continue looking for work. Hertz was a major player in that area, but now all future jobs will likely go to locals in Florida.
To make matters worse, Hertz is not the only company to leave North Jersey as of late. Well-known pharmaceutical company Roche also left the region last summer. This led to the loss of some 2,000 jobs. It is unlikely that things will get better in North Jersey before they get worse.
According to a press release from Hertz, it plans on moving to Estero, which is located in Lee County, Florida. This move comes after being in Park Ridge, North Jersey for the past 25 years. Hertz says that it is drawn to this area because of its lower living costs. Not only that, the strong tourism industry of Florida makes it the perfect location to setup shop for the company.
Despite this, Hertz made no effort to cover one of the major reasons why it is moving to Florida, and that is the $85 million in tax incentives. Nearly $16.8 million of this will be made available immediately. Then the company will continue to enjoy tax credits and incentives for the next 20 years totalling up to $68 million.
Either way, Florida is gaining a huge advantage and Park Ridge is losing one. In fact, Hertz was the number one local taxpayer for the whole area. Reports show that Hertz paid close to $774,522 for property taxes just last year alone. Now this money is moving to Florida.
A spokesman for Hertz, Richard Broome, said that the company is not going to simply cut its employees. Instead, about 150 of the jobs will stay right in Park Ridge. For the jobs that are being moved, the employees are being offered the choice to transfer to Florida. The jobs that Hertz is taking down to Florida include legal, marketing and even communications positions.
Of course, some employees have been speaking out against this move. They have been saying that they were simply shocked when they found out. To make matters worse, many of them learned about this move from news articles instead of from the company. There are a number of employees who are still not sure if they are going to make the transfer or not.