Amazon considers huge jobs deal for Apollo Beach/Ruskin (real estate, homes)

[kmarc]

"millions of dollars in state and local incentives and tax breaks."

This is the part I never quite get, though. Sort of along the lines of funding stadiums for millionaire owners of sports teams and that sort of thing. Who benefits?

[JoeBI]

Amazon's jobs would be good for the area period. There are people who would rather work for minimum wages (not that they are min paid jobs) than do nothing.
Plus, in the big picture, once you have more jobs available in the area, the workers can pick and choose from them.

[DUNNDFRNT]

Originally Posted by kmarc

"millions of dollars in state and local incentives and tax breaks."

This is the part I never quite get, though. Sort of along the lines of funding stadiums for millionaire owners of sports teams and that sort of thing. Who benefits?

Several interesting reports done on this sort of thing, some stating that on some deals it ends up costing the local tax payers 400k per job, in top of that a lot of that money goes to consultants or headhunters who search/negotiate the best relocation deal for the businesses. Several studies conducted by the state's budget offices have determined that it would be fiscally beneficial to ban tax breaks, but in this economic environment its political suicide to do anything deem anti business or give the impression of hindering job creation.

[vaughanwilliams]

Originally Posted by DUNNDFRNT

Several interesting reports done on this sort of thing, some stating that on some deals it ends up costing the local tax payers 400k per job, in top of that a lot of that money goes to consultants or headhunters who search/negotiate the best relocation deal for the businesses. Several studies conducted by the state's budget offices have determined that it would be fiscally beneficial to ban tax breaks, but in this economic environment its political suicide to do anything deem anti business or give the impression of hindering job creation.

I agree-it's a ridiculous business model and many time cities end up with worse than nothing.

http://www.nytimes.com/2012/12/02/us...anted=all&_r=0

[Mike1306]

Originally Posted by kmarc

"millions of dollars in state and local incentives and tax breaks."

This is the part I never quite get, though. Sort of along the lines of funding stadiums for millionaire owners of sports teams and that sort of thing. Who benefits?

If the average pay is $30,000 a year that will be $30,000,000 in income a year to be spent in or around Hillsborough. The cost for this is about $7,500,000 total in tax breaks while the $30,000,000 in income still comes in every year after that.

[kmarc]

Originally Posted by vaughanwilliams

I agree-it's a ridiculous business model and many time cities end up with worse than nothing.

http://www.nytimes.com/2012/12/02/us...anted=all&_r=0

Of course. Other countries south of the border, for example, have a MUCH better business model, where they make the companies PAY to do business. They call it bribery.

[BucFan]

Originally Posted by kmarc

"millions of dollars in state and local incentives and tax breaks."

This is the part I never quite get, though. Sort of along the lines of funding stadiums for millionaire owners of sports teams and that sort of thing. Who benefits?

We benefit - draws tourists, draws businesses relocating for quality of life (employees), brings jobs, brings income for local businesses, draws tax income, draws concerts (major artists), improves quality of life for area residents. Franchises put a city on the map from a national perspective.

[kmarc]

Looks like it's moving forward, developer of the Amazon distribution centers has filed a permit on the Ruskin site:


Developers of Amazon distribution centers file permit on Ruskin site | Tampa Bay Times

[BucFan]

low wage jobs better than no jobs ----good for low-income region Ruskin known more for Tomato fields more than anything else

[HWTechGuy]

From the article:

They also agreed to give Amazon $1.1 million over four years in exchange for the company creating jobs that paid above-average wages.

They, being Hillsborough County. I wonder what those above-average wages will be...