PulteGroup Moving HQ to Atlanta (Coleman: income, income tax, live in)

[belleislerunner]

I did a search for the CEO's name and it looks like he owns a house currently in Duluth, GA.

My guess is they'll end up in the Gwinnett County corridor to ease his commute time.

[Mishap]

Originally Posted by noah

It may be higher but lets say the 300 workers average $60k a year, that is a total of $18 million in payroll - adds to state income tax, sales tax, spent in the local economy supporting local businesses etc.

And people leave jobs, retire etc and then local candidates can fill the void. I would be surprised if all 300 employees choose to relocate anyways.

Why is this a probem?

More than likely the state is handing that added income tax revenue to Pulte as an incentive to move here. Wouldn't surprise me if we're financing the entire move and then some. Companies on solid financial footing tend not to pick up and move cross country simply b/c they like our weather. They add tremendous risk in pick up all their people and relocate them. It only takes a few key people quitting to kill a lot of value. IIRC Nissan/NCR and a few others lost over 1/2 of their employees in their HQ moves. Basically the target state picks up the tab and then some for the lost productivity/IP otherwise there's no incentive to move. If we pick up 150 net jobs, what's a $ amount those jobs are worth to us and how much until it's corporate welfare?

Nothing against economic development in the metro but it seems any time there's politicians mentioned, it's probably a fair assumption seven/eight figure checks backed by tax revenues changed hands to grease the tracks. Why is you see startups move to Silicon Valley even w/ a 13% top income tax bracket? What makes CA attractive for VCs in spite of its anti-business slant? Can GA go to zero on income tax and still give incentives like they do in Texas? If not, how are we going to play if UPS/Home Depot/Coke/Delta decides they love Austin or Miami?

I can only hope their existing situation in Detroit was so dire buying them a pack of gum got them to move here. NCR's nine figure package and 2k+ jobs moving here was supposed to change the game but last time I checked Duluth home prices aren't exactly on fire. NCR's biggest move since coming here was to buy their Atlanta based competitor Radiant and realize significant "cost synergies" (read as lots of layoffs). Did we still win if Pulte moves here on our dime and buys out Wieland to dump everyone but their sales staff?

[lastminutemom]

I think that the overall economy is hurt by relocations like this. I think that the country needs a healthy Michigan more than the Metro Area needs Pulte.

Also want to add that most economists say that real economic growth in the metro area will be sustained by people starting and building companies and businesses here. I am far more excited when a company announces an organic expansion that results in new jobs without a closure somewhere else.

[Mishap]

Originally Posted by belleislerunner

I did a search for the CEO's name and it looks like he owns a house currently in Duluth, GA.

My guess is they'll end up in the Gwinnett County corridor to ease his commute time.

He's the CEO of a billion dollar real estate development company. He can follow in NCR's Bill Nuti's footsteps and move the "exec HQ" to NYC (for another few million in tax subsidies) and take the private jet here for the quarterly sales meeting. Alternately, he can afford the penthouse in Sovereign as a Pied-à-terre. His job isn't a 9-5 at the office no matter where it is. Most likely he's out wheeling and dealing to get partnerships/financing to build another sea of identical spec homes. Avoiding traffic on the connector probably isn't as big a deal as getting the city to pay the lease on any offices he does want.

[belleislerunner]

I don't think it had anything to do with Detroit or Michigan. This was merely a case of a CEO who used to live in GA - grew up down south and went to school in Louisiana. He has three daughters and a house here - we see it all the time when people move to a new region for a job, they lament their old friends and all the reminiscing about the old place.

There was nothing Detroit or Michigan could do to keep him -so they shouldn't cry too much - though 300 jobs lost is never good. I don't think this was motivated by anything more than the CEO wanting to get back to his Atlantan roots - and when you become the boss - you can make that happen (by spinning it any business reason you so choose). The perks of being the big guy...

[Mishap]

^So lets hope Deal & Reed knew this going in and didn't hand him the keys to the farm just so he can see his kids more. I realize it's business and I'd take any subsidies I can get but I just feel our state is extraordinarily stupid when it comes to handing them out.

[joey86]

Pulte looking at Buckhead for new headquarters - Atlanta Business Chronicle Buckhead

[cqholt]

Originally Posted by joey86

Pulte looking at Buckhead for new headquarters - Atlanta Business Chronicle Buckhead

This is good for a city that lost so many jobs in the last decade.

[alco89]

Originally Posted by Zanarkand A East

PulteGroup was reportedly drawn to Atlanta because of it's available office space, favorable climate, and intown development efforts along its "Beltline" and new streetcar line.

PulteGroup headed to Atlanta (Detroit Free Press)

LOL!!!!! I love it! I want to call about 3 or 4 forum members out on this, but I'll keep the peace.

[#1MARTAFan]

Originally Posted by alco89

LOL!!!!! I love it! I want to call about 3 or 4 forum members out on this, but I'll keep the peace.

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