Overland Park insurance company will move to Kansas City (sales, condo)

[Samantha S]

Overland Park insurance company will move to Kansas City - Kansas City Business Journal

Mike Kirchhoff, EDC vice president for retention and recruitment, said relocations from Kansas to Missouri happen more frequently than are reported. There is an informal agreeement among economic development agencies throughout the metro area to refrain from actively recruiting across the state line, Kirchhoff said, but companies can’t ignore state tax incentives for new job creation as the recession lingers.


“Companies are looking every day to do what they can to maximize return on investment and cut costs,” he said. “Prudently they look around and see where they can best do that.”

[Blue Earth]

I thought Missouri incentives couldn't compete with all that "absolutely crazy" star bond stuff that Kansas does.

The EDC assisted the Missouri Department of Economic Development in the deal, helping secure about $242,000 in Enhanced Enterprise Zone tax and investment tax credits. The department sweetened the pot with an additional potential $72,000 in tax savings if ARS creates 60 jobs in the first five years.

[famusdarlin]

Interesting. Thank you for sharing. Perhaps a balancing of the economy across statelines is in the works. Well, one could only hope.

I really only want the metro as a whole to do well, what is good for one is good for the other. But, I really wish our stong, well educated workforce, low cost of living would attract more businesses to move here from other areas of the country or heck, just start here.

It is interesting that the article addresses the informal agreeement among economic development agencies throughout the metro area to refrain from actively recruiting across the state line, since there are always so many discussions in this forum about the subject. Are we making a big deal out of a small anomoly or are the agencies not following thier own informal arangement? Just makes me think.

[brewcrew1000]

Kcmo might argue that this is a bad thing since the company is moving up north. I think kc will end up annexing more land up by the airport.

[Samantha S]

Originally Posted by famusdarlin

It is interesting that the article addresses the informal agreeement among economic development agencies throughout the metro area to refrain from actively recruiting across the state line, since there are always so many discussions in this forum about the subject. Are we making a big deal out of a small anomoly or are the agencies not following thier own informal arangement? Just makes me think.

Re: The bolded part. Yes, I think people do make way too much of it and some like kcmo use it as an excuse to disparage and hold a tired grudge against JoCo.

I don't believe either side actively recruits companies to move. I don't think either side is out to hurt the other. But when a company starts looking around, neither side should be obligated to refuse them. Companies weigh the advantages and disadvantages and make their own decisions, as it should be.

This is a good example of that. And I though it was interesting of the article writer to note that it happens with some frequency from KS to MO.

[aragx6]

it's an interesting article, but I'm not sure one corporate VP is going to convince me there's not cross-state politicking going on. I'm sure it goes ways, but I'm very unconvinved that just because they have some sort of informal policy against doing it, that it doesn't happen.

[kcmo]

Originally Posted by FreeStater

I thought Missouri incentives couldn't compete with all that "absolutely crazy" star bond stuff that Kansas does.

And it’s obvious you are still failing to understand the comparison. MO is not trying to retain jobs here. These are “new” jobs to the state of MO, so MO is able to offer a better incentive package than when they are trying to keep jobs from going to KS. It’s the same thing in reverse.

And no, MO can’t compete with KS when trying to retain jobs, just as it would be difficult for KS to do the same.

I don’t condone this any more than I do when KS does it to MO because it creates friction and competition within a metro area rather than cooperation and regionalism. It also continues to erode the tax base via cooperate welfare and all these incentives the KC area throws around is probably a main reason the KC area has such high taxes and little to show for it. Individuals end up picking up the tap via high sales taxes etc.

If MO does this, it only gives KS more justification to lure MO companies and MO will always come out on the losing end of this because MO has most of the jobs to lose with a vast pool of companies to choose from. These 50 jobs hardly compare to the hundreds that have moved to KS in just the past month alone. JoCo is still young and maybe as these companies mature in KS, the trend will reverse back to MO, but most likely, the trend will only continue to further out suburbs like we have already seen. Applebee’s for example left KCMo for OP and were then lured to Olathe via massive incentives.

Now Olathe has that huge publically subsidized office building sitting empty after IHOP bought Applebees. So they will have to double dip and offer a second round of incentives to fill the building again, probably to yet another metro area company, once again, eroding the corporate tax base as well as regional cooperation. Just like metro KC is seeing with the Sprint Campus.

There is no truce. You can quote this one guy all you want. Economically, the KC area it at war with itself, don’t kid yourself.

And one more thing. I find it funny that they moved because it was more "central". They are moving to the KCI area. Hardly central.

You see, the most aggressive incentives should be used for redevelopment and reinvestment in urban areas. The more these incentives are used for suburban office parks (be it northland or joco), the more the urban core and other areas will deteriorate and decline because rather than helping even the playing field for those areas, it actually removes them from even being in competition with the suburbs.

But KCMO has to do this to get any economic development. They have to use tools they should be using in the urban core to put people in office buildings at 120th and I-29. They have to play the game. But in the end, everybody loses.

[CrownVic95]

Originally Posted by kcmo

And it’s obvious you are still failing to understand the comparison. MO is not trying to retain jobs here. These are “new” jobs to the state of MO, so MO is able to offer a better incentive package than when they are trying to keep jobs from going to KS. It’s the same thing in reverse.

And no, MO can’t compete with KS when trying to retain jobs, just as it would be difficult for KS to do the same.

I don’t condone this any more than I do when KS does it to MO because it creates friction and competition within a metro area rather than cooperation and regionalism. It also continues to erode the tax base via cooperate welfare and all these incentives the KC area throws around is probably a main reason the KC area has such high taxes and little to show for it. Individuals end up picking up the tap via high sales taxes etc.

If MO does this, it only gives KS more justification to lure MO companies and MO will always come out on the losing end of this because MO has most of the jobs to lose with a vast pool of companies to choose from. These 50 jobs hardly compare to the hundreds that have moved to KS in just the past month alone. JoCo is still young and maybe as these companies mature in KS, the trend will reverse back to MO, but most likely, the trend will only continue to further out suburbs like we have already seen. Applebee’s for example left KCMo for OP and were then lured to Olathe via massive incentives.

Now Olathe has that huge publically subsidized office building sitting empty after IHOP bought Applebees. So they will have to double dip and offer a second round of incentives to fill the building again, probably to yet another metro area company, once again, eroding the corporate tax base as well as regional cooperation. Just like metro KC is seeing with the Sprint Campus.

There is no truce. You can quote this one guy all you want. Economically, the KC area it at war with itself, don’t kid yourself.

And one more thing. I find it funny that they moved because it was more "central". They are moving to the KCI area. Hardly central.

You see, the most aggressive incentives should be used for redevelopment and reinvestment in urban areas. The more these incentives are used for suburban office parks (be it northland or joco), the more the urban core and other areas will deteriorate and decline because rather than helping even the playing field for those areas, it actually removes them from even being in competition with the suburbs.

But KCMO has to do this to get any economic development. They have to use tools they should be using in the urban core to put people in office buildings at 120th and I-29. They have to play the game. But in the end, everybody loses.

Everybody loses what?

[Mathguy]

The 1% wage tax in KCMO isn't doing them any favors. Until they get rid of it, they will just be held back by it.

[aragx6]

Originally Posted by Mathguy

The 1% wage tax in KCMO isn't doing them any favors. Until they get rid of it, they will just be held back by it.

And how would you suggest we pay for our sewers and trash and sidewalks exactly?

Most major cities in America have an earning tax (or MUCH higher taxes in other ways). I'm tired of everyone trying to pretend it's such an uncommon thing.