The economic development incentive process begins with defining the project to learn about the industry, number of jobs, payroll and capital investment planned by a company, needs for the project site, and geographic markets that fit the company’s business plan…
leading to the creation of a potential state and regional target list for the company’s location. Critical business planning is essential for companies considering an expansion or relocation project. Growth projections tied to new business development opportunities, supply chain demands, labor negotiations, and regional market growth decisions all impact the scale and scope of an economic development incentive project. Triggers such as the end of a real estate lease, growth needs beyond their current facility, decay of their existing facility, consolidation of existing facilities, a growth opportunity tied to a customer, a merger of companies, or a company seeking to capitalize on an economic trend tell a company they should undertake an economic development incentive project.
After a company determines its current facility may or may not suit its needs, it needs to ask and answer a couple of critical questions that define its economic development incentive project, including:
- What does the company need in a facility to succeed in the next five years?
- How many jobs would be retained and created over the next three years?
- What type of capital investment would be required should the company remain in its current facility or move to a new facility?
- Will these new employees work remotely in the same state or with no restrictions or in a specific location for the majority of their time?
- What skill sets do the company’s employees need to have today and in the near future?
- What other regions do the company have clients or a supply chain necessary for their business to succeed?
Understanding the economic development incentive triggers is an essential first step for companies to take when preparing to launch a project that retains or creates jobs and makes a capital investment. Please contact Dave Robinson at [email protected] if you are considering launching an economic development incentive project.