Bozzuto close to deal on subsidy package to stay in Prince George’s (2013)

[UrbanScholar]

Interesting article. I didn't know that they were considering leaving the county but I'm glad to see the county being proactive in trying to keep them here. When I read the title, I immediately began to think that county politicians might be regressing and up to their old tricks. But upon reflecting on what other counties do to keep businesses in their jurisdictions, I realized that their probably aren't any conspiracies or ulterior motives. Similar to what was discussed in the article, the county is going through a phase where they repairing their reputation and trying to demonstrate that the county is a place to do business.

- The Washington Post

After nearly a year of discussions, officials in Prince George’s County Executive Rushern L. Baker’s administration have nearly finalized details of a package of subsidies aimed at keeping Bozzuto & Associates in the county.

The construction, management and land development firm was founded in 1988 by Thomas S. Bozzuto and three partners, and has since developed more than 50,000 units valued at more than $7 billion. It reported revenue of $1.1 billion for 2011 and said last year that it had 851 Washington area employees.

[EdwardA]

Originally Posted by UrbanScholar

Interesting article. I didn't know that they were considering leaving the county but I'm glad to see the county being proactive in trying to keep them here. When I read the title, I immediately began to think that county politicians might be regressing and up to their old tricks. But upon reflecting on what other counties do to keep businesses in their jurisdictions, I realized that their probably aren't any conspiracies or ulterior motives. Similar to what was discussed in the article, the county is going through a phase where they repairing their reputation and trying to demonstrate that the county is a place to do business.

- The Washington Post

I'm not a fan of this especially for a development firm. PG is probably getting the short end of the stick on this one.

[Renznceman]

Bozzuto, Bozzo, Pee Gee, PeeWee...the random word associations are telling.

[UrbanScholar]

Originally Posted by EdwardA

I'm not a fan of this especially for a development firm. PG is probably getting the short end of the stick on this one.

I am not a fan of the practice either but there are close to 900 jobs in play and the ability to tax 1B dollars in revenue. Not to mention the cache of having and retaining a business of that size in the county. When I studied marketing in school there was a concept in retail called the loss leader affect. Essentially you mark down one/key products to entice shoppers to come. While there it is likely that they will buy something that is not on sale/marked down. This is the same concept and is something that is done by bu sinesses/governments in general. A jurisdiction needs to have business anchors that can pull other businesses into the county. Would they get the same deal? Probably not.

[EdwardA]

Originally Posted by UrbanScholar

I am not a fan of the practice either but there are close to 900 jobs in play and the ability to tax 1B dollars in revenue. Not to mention the cache of having and retaining a business of that size in the county. When I studied marketing in school there was a concept in retail called the loss leader affect. Essentially you mark down one/key products to entice shoppers to come. While there it is likely that they will buy something that is not on sale/marked down. This is the same concept and is something that is done by bu sinesses/governments in general. A jurisdiction needs to have business anchors that can pull other businesses into the county. Would they get the same deal? Probably not.

FYI revenue is not taxed just earnings. It's better to create a general business friendly climate than targeted credits but I understand why they're doing it.

[UrbanScholar]

Originally Posted by EdwardA

FYI revenue is not taxed just earnings. It's better to create a general business friendly climate than targeted credits but I understand why they're doing it.

Actually a combination of the two is best and is what typically happens.