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Old 11-18-2009, 08:04 AM
 
Location: Home is where the heart is
15,400 posts, read 17,639,439 times
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Default Large Research Institute Moving to Herndon

Medical Research Center to Ignite Virginia with 415 Jobs - CoStar Group

I love seeing so many research institutes sprouting around here. Also, it's good to see them opening in Fairfax, as well as Loudoun--I like seeing the tax dollars spread around. BTW, Ignite is one in a recent string of economic coups for Fairfax. In 2008, Volkswagen of America moved its headquarters from Michigan to Herndon, and this year, Hilton Hotels and SAIC both relocated their corporate headquarters from Southern California to Tysons Corner.
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Old 11-18-2009, 10:24 AM
 
Location: DC Metro/NoVA
1,708 posts, read 3,623,526 times
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Quote:
Originally Posted by normie View Post
Medical Research Center to Ignite Virginia with 415 Jobs - CoStar Group

I love seeing so many research institutes sprouting around here. Also, it's good to see them opening in Fairfax, as well as Loudoun--I like seeing the tax dollars spread around. BTW, Ignite is one in a recent string of economic coups for Fairfax. In 2008, Volkswagen of America moved its headquarters from Michigan to Herndon, and this year, Hilton Hotels and SAIC both relocated their corporate headquarters from Southern California to Tysons Corner.

I am always suspect at these moves.

My guess is these big companies do not create any high paying (160K+) jobs here but transfer their employees and create a few entry level positions (receptionists/operational -administrative staff) jobs that make >50K annually. It does bring a tax base (tho' I suspect they made deals to pay much less taxes than they should in order to get the NoVA address). Also, I wonder if the tax base outweighs the potential personal property taxes that could have been created if they'd hire locals at the level of affording a home in the area. Again, I'm just guessing so please correct me.
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Old 11-18-2009, 10:44 AM
 
Location: Virginia
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The Wall Street Journal has been covering this quite a bit lately. Apparently a lot of companies are moving here because some states have really jacked up the taxes those companies have to pay. Oregon and California seem to be losing companies left and right. I used to live in Portland, and let me tell you it's a horrible place to have a business these days.

As far as Ignite Institute goes, from what I hear it's the CEO who's moving here, not the company. My guess is Dr. Stephan is escaping the high taxes in Menlo Park. He had a company back in California, but Ignite Institute for Individualized Health is a new center that's being formed as a partnership with Inova Health System.

But I agree that it would be better to have companies move here and hire locals, rather than moving their employees with them. I don't know how much that happens, but I'd rather it didn't happen at all.
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Old 11-18-2009, 11:19 AM
 
Location: Springfield VA
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Quote:
Originally Posted by Caladium View Post
The Wall Street Journal has been covering this quite a bit lately. Apparently a lot of companies are moving here because some states have really jacked up the taxes those companies have to pay. Oregon and California seem to be losing companies left and right. I used to live in Portland, and let me tell you it's a horrible place to have a business these days.

As far as Ignite Institute goes, from what I hear it's the CEO who's moving here, not the company. My guess is Dr. Stephan is escaping the high taxes in Menlo Park. He had a company back in California, but Ignite Institute for Individualized Health is a new center that's being formed as a partnership with Inova Health System.

But I agree that it would be better to have companies move here and hire locals, rather than moving their employees with them. I don't know how much that happens, but I'd rather it didn't happen at all.
Why is Oregon a horrible place to do business? They don't have sales tax. Yes I realize that they still have other taxes but I would think Oregon would be the spot. But you know liberal areas tend to be not as business friendly as some would like.
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Old 11-18-2009, 11:52 AM
 
Location: Home is where the heart is
15,400 posts, read 17,639,439 times
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Quote:
Originally Posted by leighland View Post
I am always suspect at these moves.

My guess is these big companies do not create any high paying (160K+) jobs here but transfer their employees and create a few entry level positions (receptionists/operational -administrative staff) jobs that make >50K annually. It does bring a tax base (tho' I suspect they made deals to pay much less taxes than they should in order to get the NoVA address). Also, I wonder if the tax base outweighs the potential personal property taxes that could have been created if they'd hire locals at the level of affording a home in the area. Again, I'm just guessing so please correct me.
Your guess is as good as mine, all I know is what I read in the article. Anyway, thanks for bringing up an interesting point. Whether or not it's better to transfer employees or hire a completely new staff is a thorny question, all right.

IMO, if I worked for a company for 20+ years and they decided to move out of state, I'd expect them to at least offer me a job in the new city. That's what seems ethical to me. I can see a company not paying the costs of moving, but the job should be offered if an employee is willing to make the move. But, as you point out, there are many sides to this issue.

Even if they do move their staff with them, companies moving in to an area stimulate the local economy, so it's a good thing IMO. I feel sad for the communities that are losing these companies, but that's what happens when you make it too expensive for a company to do business in your state. I hope Virginia doesn't make the same mistakes.
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Old 11-18-2009, 11:54 AM
 
Location: Home is where the heart is
15,400 posts, read 17,639,439 times
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Quote:
Originally Posted by terrence81 View Post
Why is Oregon a horrible place to do business? They don't have sales tax. Yes I realize that they still have other taxes but I would think Oregon would be the spot. But you know liberal areas tend to be not as business friendly as some would like.
I'm no expert on Oregon, but when states don't have sales tax, the money has to come from somewhere. I'll bet they made up the difference by raising other fees and taxes. Which would make Oregon a great place to live, but not a great place to do business. Business bankruptcies climb, Oregon third on undesirable list Oregon Tax News If high taxes are giving businesses a choice between bankruptcy or moving to a new state, it's no surprise that many are moving.
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Old 11-18-2009, 03:57 PM
 
257 posts, read 335,057 times
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Quote:
Originally Posted by leighland View Post
Also, I wonder if the tax base outweighs the potential personal property taxes that could have been created if they'd hire locals at the level of affording a home in the area.
What in the world do you mean by that?
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Old 11-18-2009, 05:39 PM
 
3,956 posts, read 6,361,324 times
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Quote:
Originally Posted by leighland View Post
I am always suspect at these moves.

My guess is these big companies do not create any high paying (160K+) jobs here but transfer their employees and create a few entry level positions (receptionists/operational -administrative staff) jobs that make >50K annually. It does bring a tax base (tho' I suspect they made deals to pay much less taxes than they should in order to get the NoVA address). Also, I wonder if the tax base outweighs the potential personal property taxes that could have been created if they'd hire locals at the level of affording a home in the area. Again, I'm just guessing so please correct me.

I too wonder about these corporate moves. I'm sure they do grant huge, long-term tax breaks to attact these companies....but the State and Counties are already broke!

So we get thousands of new people flocking in here, adding to the gridlock on the roads, enrolling thousands of new kids in our already strapped school systems, among many other things that folks require....with little additional revenue provide these services.

Will it get to the point that the employees of these hot companies will be falling asleep in their cubicles because they had to rise at 3:00 am to drive the five or ten miles to get there?

Will the corporate suits one day lament that, "Virginia sure was great on taxes, but the gridlock and lousy infrastructure just made it impossible for us to do business there...".

I say it's possible!
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Old 11-19-2009, 11:06 AM
 
Location: Springfield VA
4,033 posts, read 5,075,541 times
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Quote:
Originally Posted by car54 View Post
I too wonder about these corporate moves. I'm sure they do grant huge, long-term tax breaks to attact these companies....but the State and Counties are already broke!

So we get thousands of new people flocking in here, adding to the gridlock on the roads, enrolling thousands of new kids in our already strapped school systems, among many other things that folks require....with little additional revenue provide these services.

Will it get to the point that the employees of these hot companies will be falling asleep in their cubicles because they had to rise at 3:00 am to drive the five or ten miles to get there?

Will the corporate suits one day lament that, "Virginia sure was great on taxes, but the gridlock and lousy infrastructure just made it impossible for us to do business there...".

I say it's possible!
I don't know. I guess I'm more optimistic that the benefits of more people will outweigh the bad. Hopefully there will be more jobs for locals that already live here versus bringing in new people but I have a feeling that as mentioned that won't be the case.
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Old 11-19-2009, 11:43 AM
 
Location: Virginia
18,717 posts, read 14,915,546 times
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Quote:
Originally Posted by terrence81 View Post
I don't know. I guess I'm more optimistic that the benefits of more people will outweigh the bad. Hopefully there will be more jobs for locals that already live here versus bringing in new people but I have a feeling that as mentioned that won't be the case.
IMO, there will be job openings at the support levels (and probably some upper level jobs, as well). Companies don't move administrative staff, for example. Some people might be offered a job but won't want to move, and the company will need to hire someone new.

Also, Ignite is a brand new company, so the entire staff will be from the area. And don't forget that people moving here pay taxes, pay for places to live, hire plumbers, buy goods (and often big ticket items if they're moving a long distance), etc. etc.

I'm happier about people moving here because a company is also moving here rather than people moving here looking for work. If CEOs move here, I think that's good news because they pay more in taxes than they take out in services.
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