To: Patricia Walton who wrote (132413 ) 6/13/1999 3:20:00 AM From: Keo Respond to of 176387
The corporate deals cut with a community are a reflection of the local socio-political mileau.. In the business section of the NYTimes (on Monday, Tues or Wed of this week) there was an article about a city in Oregon that granted tax incentives to Intel ( I think it was intel; I'm just terrible with names when I'm reading for the overall concept)... BUT-- has dis-incentives if this company hires too many people!!! The local municipality is very conscientious about growth -- and the local officials are truly representative of the local community! So the deal is that for EACH employee OVER the 2,000 or so planned, the company has to pay a penalty of $X,000.00 per year to help fund the additional infrastructure costs that the city calculated it could not handle. They obviously did their homework and figured out where the additional commerce revenues would be maximized and where there would be a burden. This is an ideal example of partnership. Not just city officials being overly impressed with the corporate lawyers, etc.. and saying 'yes' to whatever. It's truly a win-win approach that calculates where the incentives work for both the host city and the new member of the community. As Greg H. mentioned, there's the Rio Rancho-Intel expansion. I know people who benefited, others who could no longer afford to live there... Dell made a point of donating to the Round Rock / Austin community (museum and schools, I think.. there were articles inthe NYTimes last January/Feb about it).. so I'd assume they'll make similar donations to the Nashville area. WHich, by the way, was expanding tremendously exactly one year ago.. (off the freeway south of Nashville towards Franklin, there's a LOT of building - malls - - it was an expansion that I found kind of ugly and cookie-cutter, but I don't know how the residents feel about it. Maybe they enjoy the style). So I think the main thing is for Nashville's planning boards to calculate where the infrastructure can readily accommodate the added traffic (on the roads, in the schools, etc..) and at what point it needs to spend cash. ALso, a city and the state needs to be careful about expanding to the point that if there's a downturn they're left with a city of unemployed or underemployed folks. Like when the auto industry moved their production facilities into Mexico, , , (see the movie Roger & Me..) that's really a tough situation . .