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EDA weighs Bosch & Lom incentive payout after capital target met but job targets fell short
Summary
Staff told the EDA Bosch & Lom exceeded its capital investment (reported $37.8M vs target $35.4M) but created about 38 new jobs versus a 79-job target in the 2020 performance agreement; staff proposed considering the capital achievement and referred the matter to the incentive committee for a recommendation on payout.
Staff told the Economic Development Authority on March 19 that Bosch & Lom had met and exceeded its capital investment target in a 2020 performance agreement but had not reached the job creation target. The EDA had encumbered $280,000 for the project.
According to staff, Bosch & Lom’s performance agreement called for 79 new jobs and $35.4 million in capital investment. Staff reported the company’s recorded capital investment was about $37.8 million but that the company created roughly 38 new positions — over 30 but materially below the 79‑job commitment and therefore below the "one‑third of workforce" performance trigger in the agreement. Staff noted average pay for the new hires rose substantially (the transcript cited an increase from about $29,500 to about $46,500 in average salaries for the new positions), and that the increased payroll narrowed the financial difference between the incentive anticipated and the incentive realized.
Members discussed whether the EDA should apply strict job‑count thresholds, weigh capital investment more heavily, or adopt a mathematical formula for partial payouts. Several members and staff counsel favored sending the item to the incentive committee so the committee can produce a recommendation and consider policy changes on how the EDA balances jobs versus capital in future awards. Staff said the incentive committee is newly populated and that any formal release of funds would occur at a future meeting after the committee’s review.
No final payout motion was recorded on the Bosch & Lom item at this meeting; the board asked staff to convene the incentive committee and return with a recommendation in April.
