Updated:BREVARD COUNTY, Fla. —
A new energy company wants to move to Brevard County and just received $1 million
in tax breaks to do it.
Despite the company's limited track
record, the county decided it had nothing to lose.
Portland, Ore.-based Xun Energy has some ambitious plans.
The company is promising to create
The company has only earned limited income since 2007.
But Xun Energy's CEO is hopeful that will change once the company identifies some oil-producing wells.
The startup energy company is proposing a Melbourne
headquarters, and with it the creation of some 300 jobs paying an average of $82,000 per year.
Admittedly, the company isn't making any money yet.
Despite some vocal criticism,
county commissioners approved $1 million in tax breaks over the next
decade for Xun Energy. If the company doesn't perform, it doesn't get the tax incentives.
"We're not giving them any general fund money, we're taking less from him and if he fails, he fails alone," said Greg Weiner,
Economic Development Commission of Florida's Space Coast.
Xun Energy has no significant assets, but CEO Jerry Mikolajczyk said Tuesday the company does have investors and a new $15 million line of credit.
"You can go from zero to revenue, especially in oil and gas, overnight," Mikolajczyk said.
The first hurdle for the fledgling company is closing on its Melbourne headquarters.
"We have nothing to lose by trying," said Brevard County
Commissioner Chuck Nelson.
If Xun Energy doesn't close on the property, the tax abatement deal goes out the window and the company has to start this process all over again.