With the economy on the mend, 2011 looks to be a big year for corporate relocations. It’s no secret that Texas has always courted business owners. With its friendly pro-business tax laws and job creation that has outperformed the rest of the country, there is a renewed interest in the state. That means increased competition between North Texas cities for relocations, job creation and tax dollars.
So what does a company look for when it decides to relocate?
• Location, location, location. Businesses must be centrally located, have accessibility to nearby airports, and the community must be attractive enough to lure employees. All of the cities in the North Texas Growth Corridor—McKinney, Plano, Frisco, Allen—are competing for the same businesses to call their city home.
• Tax incentives. Many relocations don’t make sense for companies unless tax incentives are part of the package. It has become somewhat of a bidding war between cities and common practice for the cities to be creative with their incentive packages. There is however, a balance that can be achieved and is mutually beneficial to both the company and the city.
• Quality of life amenities. Companies want to find an attractive location for their employees to live, work and play. Whether it’s upscale retail and restaurants, a fitness center, golf course or hike and bike trails, often if a development has these components, it adds to the appeal of the location and tax incentives.
There is a significant economic benefit to cities when they bring in corporate headquarters. In the long run, the tax incentives that cities give corporations is a small percentage of the ad valorem dollars the city will reap from that company for years to come, not to mention the overall cumulative economic benefit. It will be interesting to see how the relocation wars play out in North Texas over the next several years. But no matter which city gets the company, it will be a win for our region.
David Craig is president and CEO of Craig International and the founder of Craig Ranch. Contact him at [email protected].
