Tampa Named Best City in Southeast

[DUNNDFRNT]

Originally Posted by housingcrashsurvivor

The following I'm certain is inaccurate but just to get a general idea of what might be at play here...

"...will create 500 jobs over the next three years and invest $23.5million in the facility....The jobs will pay an average annual salary of $75,000."

So 500 jobs within 3 years but just to quickly illustrate the money involved, the following assumes all 500 positions filled in year one...

$75,000
x 500
$37,500,000 annual local salaries
+$23,500,000 invested into facility
$61,000,000 invested within the community

$6,370,000/$61,000,000=10.44%
'
following years: a gain of $37,500,000 in annual local salaries

Other company expenses will include whatever might be the cost of relocating a headquarters operation. I have no idea how involved that might be. But just as a for instance...

How Much Does a Corporate Relocation Cost?

How much does it cost to relocate a homeowner? – On average it costs $90,081 to move an existing employee who is a homeowner.

How much does it cost to relocate a new hire homeowner? – On average it costs $69,020 to move a new hire employee who is a homeowner

How much does it cost to relocate a renter? – On average it costs $23,497 to move an existing employee who is a renter.

How much does it cost to relocate a new hire renter? – On average it costs $20,168 to move a new hire employee who is a renter.

So assume the company is here for 10 years at least...

$23,500,000 + 10($37,500,000) = about $400,000,000
plus whatever other supporting companies to service J&J (the business) & its employees (as residents)
plus whatever other companies might be encouraged by J&J move to also relocate
state/county risk/investment towards that: $6,370,000

So by that perspective, is that money bribe or showing good faith to show the county is willing to work with the company.

Think of it as...



...a housewarming gift idea

They will own the facility so it's not like that cost is not sunk and it will depreciate, those cost for relocating employees are not in line with my experience, my company recently moved a whole division from chicago to Bradenton, they didn't offer those guys nothing but moving expenses some renting assistance in some cases, I don't think it's the norm for companies to pay housing differential anymore.
Vinik: Transportation issues could affect Tampa area’s growth | TBO.com and The Tampa Tribune

[housingcrashsurvivor]

Originally Posted by DUNNDFRNT

They will own the facility so it's not like that cost is not sunk and it will depreciate, those cost for relocating employees are not in line with my experience, my company recently moved a whole division from chicago to Bradenton, they didn't offer those guys nothing but moving expenses some renting assistance in some cases, I don't think it's the norm for companies to pay housing differential anymore.
Vinik: Transportation issues could affect Tampa area’s growth | TBO.com and The Tampa Tribune

I had no idea of employee relocation costs so just quickly googled. In fact all that figuring is just very rough merely to put the $6mil state/county cash into some perspective.

I defer to your knowledge on employee costs. Though I'd think there'd at least be internal costs--time lost, new hiring, training, time and work required for whatever administration might be required in the move, etc. Regardless, I didn't use that in the figures anyway, just payroll and facility. I was thinking facility being leased but even if owned then they pay county tax every year, which I'd imagine is a few $100k.

My point being that while there is corporate welfare in this country which dwarfs family welfare, this incentive money might not have been the best example of that.

& I had seen that article. Curious that he ducked rail. If you don't mind I'll add that to a separate thread on another thing I was just reading on commuter costs that I was just about to post.