Comparing just how absurd and aggressive Kansas really is with its poaching of KCMO companies. (Kansas City: lease)

[kcmo]

http://www.washingtonpost.com/local/...8Ws_story.html

Northrop Grumman picks Virginia for corporate headquarters

I wanted to show these articles to people in KC because I think it really puts into perspective what's going on in KC with the economic development war that that Kansas has declared on Missouri and just how destructive and unproductive this is to not only Missouri, but Kansas as well. It's a definite net loss for metro KC for sure.

Here in the DC/Balt area, economic development is as fierce as any place in the country. You have the central cities of DC and Baltimore competing with some of the most powerful corporate suburban counties in the nation and the metro as a whole is competing with every large metro in the country and the world.

If people think KC has issues with political boundaries, imagine what it's like in DC where ALL your suburbs are in TWO different states that are totally independent from the city.

These suburbs are not not all that different than those in KC. Family oriented, cheaper, more land to work and they all want economic development.

The numbers thrown around out here are so low compared to what I'm used to in KC that I always have to read them twice and remember, that economic activity in this region is probably triple that of KC. For example, 500 jobs and a ten year lease in metro DC is going to generate far higher eco development numbers due to much higher salaries and cost of doing business.

So the next time Kansas offers 30 million to bring 200 jobs across state line from KCMO, think about what they are doing and just how out of the ordinary such practice really is.

In the end, Virginia, with its nearly $14 million incentive package, won, bringing 300 to 400 high-paying jobs to an office park near Falls Church.

Now this is an extreme example because most of the time, no or very little incentives are offered. This firm MOVED FROM LA to the DC area. You see, you won't see such aggressive incentives to lure a company from VA to MD or DC to VA or DC to MD It doesn't happen. I also don't see it happening in Baltimore and its suburbs. Actually, Downtown Baltimore seems to be the premier choice for Baltimore area companies, but if they do move to Townson or something, it's not because they were lured with tons of cash.

Yet, the incentives offered here to bring a new company HQ to metro DC from LA are far less than the 47 million Kansas has offered to AMC to move across state line. I mean, this is like AMC hitting the lottery, it will be difficult for them to say no and even more difficult for Missouri to even attempt to keep them. (as I have already stated many times).

Lets compare!
14 million for 400 jobs (200k salary) from LA to metro DC.
47 million for 400 jobs (60k salary) from KCMO to suburban KS.

The other article I posted goes on to say:

Virginia is expected to give Northrop $12 million to $14 million in grants and cash incentives, with the exact amount based on which location the company chooses, said Jay Langston, senior researcher manager at the Virginia Economic Development Partnership. That amount surpasses the $4.6 million given to Hilton Worldwide and $8.5 million given to Science Applications International in recent years.

So, to bring a new company headquarters all the way across the country and its 400 high paying jobs (200k plus average), VA hands out 12-14 million which dwarfs other recent incentive packages to bring in new companies.

All while kansas REGULARLY hands out TENS OF MILLIONS to lure a company from as little as 5-10 miles away within the same metro.

How can anybody find any reason to defend this? It's not sustainable and the real sad thing is that even though Kansas looks like the king of offering ridiculous amounts of corporate welfare, they get few takers that are not already in their backyard. That says a whole lot to me about just how desirable KS really is.

But wait. It's about to get even worse.

http://www.bizjournals.com/kansascit...ves-faces.html

Kansas wants to expand PEAK to companies that are in Kansas too (not just those bringing in jobs from far away places like KCMO). Crazy. What's next, letting anybody and everybody use STAR bonds to subsidize greenfield development? (oh snap!)

And people wonder why taxes are so high in KS and you get so little in return. Expect that trend to continue.

But maybe a few people have gone to see the wizard of oz and found their brain...

She also questioned offering incentives to companies right across the state line in Missouri, such as the reported $46 million in tax credits offered to AMC Entertainment Inc. to move from downtown Kansas City to Johnson County.

"A lot of their employees are already here," Lynn said.

Really? You don't say!

[aragx6]

I just don't understand where the anger is from Kansans on this issue. It's just hard to imagine that in this political climate of austerity that so few would raise an eyebrow at spending of this kind.