By: Ginny Logan, SVP, Relocation Services
“In the wake of the Great Recession, States [and corporations] are working with tight budgets to deliver critical services more effectively and at a lower cost and invest where the proven returns are the greatest in areas that will generate dividends over the short and long-term.” Susan K Urahn, managing director The Pew Center on the States
Deciding to relocate a corporate headquarters or expand ones company into a new geographic market is not an easily made decision. Many critical factors must be taken into consideration and thoroughly explored before the move can be made. It may take months, or possibly years, to properly conduct research, gather data, visit select communities, and work with local and state government entities in negotiating tax incentives, business credits, exemptions and deductions that may be available. All of these play a significant role in the long-term prosperity for the company and the new community.
Today, the Dallas Regional Chamber hosted its Blueprint for Prosperity Economic Development Investors Breakfast. This quarterly meeting allows local business leaders to see firsthand how Dallas strategically manages its growth initiatives, recruiting projects, and the steps taken to continue to be one of the top-tier cities in our nation for attracting new business.
This morning’s meeting was kicked off by Jennifer Crane, ESQ, Negotiated Business Incentives Manager for True Partners Consulting. Jennifer shared with us several key points that her firm typically addresses when assisting clients (corporations) with relocation and expansion needs, site searches and state/local tax and business incentive negotiations.
Three points shared by Jennifer that often accompany discussions with our relocation clients included:
- New Site Selection Criteria – This includes the look and feel of the new region, mass transit opportunities, “green” initiatives, proximity to the client’s competitors, and how the new community will help promote their brand and identity once the move has been announced.
- Changing Needs – Will the corporation have access to capital at an affordable cost basis? Is there available office space for growth projecting out five to seven years? How will the new city partner with the company to help provide the job training, flexibility, as well as offer unique local incentives to help them be successful once they make the move?
- Lifestyle Locations – Will the corporation be moving to a region or city that mirrors their company’s culture, and can the community easily support the employees’ lifestyles? Companies want to be located where the available labor resources match their needs. Additionally, companies desire to be granted the opportunity through their economic development team or local government institutions to help provide and sponsor the proper training and education that may be needed for future job openings.
States annually spend billions of dollars for economic development on tax incentives, offering business credits, exemptions, and deductions for businesses to locate, hire, expand, and invest within their borders. Corporations may spend well into the millions for a relocation of its headquarters or expansion into a new market. It’s important, therefore, that the relationship created between the State and the corporation become a true partnership, developing a long-term, blueprint for prosperity for all.
This post was originally posted on Rethinking Relocation.