Cut Taxes Now has analyzed the recent deal that is bringing SRI to St. Petersburg.  SRI is an outstanding research firm that helped create the computer mouse and HDTV.  This venture will conduct marine science R&D mainly in technology for things such as port security.  According to the St. Petersburg Times, the company earned $390 Million in 2005.  

Despite the success of this business, they were given special treatment from multiple Florida Governments.  The State gave them $20 Million in taxpayer funds to help them start their business.  In exchange, the state will receive up to $12.5 Million in royalties.  The State and Pinellas county each will give $5Million for SRI to use to build a 30,000 sq. foot building in downtown St. Pete next to USF Bayboro.  The City of St. Pete will lease, for $1/year, valuable waterfront land to  SRI.  The land previously was leased to the Coast Guard for about $5700/month.  

Cut Taxes Now has serious concerns about how a successful, financially secure private corporation is able to take well over $30 Million in Taxpayer dollars for their business. While the company will certainly help the local economy, could they not have been attracted in other ways?  Perhaps if the city had low property taxes and minimal regulation, such a company – and many others – would set up business here.  The climate and the wonderful atmosphere of St. Petersburg would attract them in addition to the opportunity to work with a world class Marine Science Institute at St. Petersburg.  

Our city has failed on corporate ventures in the past.  It has lost millions of dollars trying to attract cruise ship business and still gives Tropicana Field at least $1 million/year to operate.  This in the face of rapidly escalating – and unsustainable – property taxes for local citizens.

It is time for the government to stop speculating on business ventures using the taxpayer’s money.  Allow the economy to operate with minimal taxation and regulation, and it will do just fine.  One wonders where the new employees (some guaranteed $65K/year salaries) will live.  They certainly won’t be able to afford the high property taxes in St. Petersburg.  Hopefully they won’t mind an hour long commute in busy traffic to work in St. Pete.