Once an incentive agreement is in place, it is time for the
company to get to work building and staffing the new or expanded
facility. While the economics of a deal are typically still on
track, the initial buildout/expansion can raise issues that may not
have been anticipated during the negotiation process, such as
construction delays, interim hiring or how to calculate average
salaries of new employees. As these questions arise, it is critical
to work collaboratively with the development agency to ensure
maximum value to the recipient business.
An all-too-typical problem is construction delays. An incentive
proposal or application will usually include a construction
schedule. The planned construction benchmarks included in the
proposal then become performance requirements in the incentive
award agreement. After the agreement is signed, unforeseen delays
arise such that the business cannot meet the specified timeline.
Economic development agencies are typically
