More so than ever before, cities are vying for companies that create jobs. There’s the policy aspect that favors clean and green jobs. Then there’s the backroom bargaining that favors successful outcomes. Companies that can offer employment would do well to study some of the recent newsworthy examples. They include the failed attempt by Los Angeles to attract AnseldoBreda, local jostling to snare Tesla Motors, competition for Eli Broad’s museum, Los Angeles Stadium in the City of Industry, and the smaller manufacturing deals coming through the CRA of Los Angeles. Each one is fairly lucrative to the company and does not necessarily fit any set model. They are similar to the large retailers, like Costco or Walmart, who were able to negotiate attractive packages for redevelopment funds, property tax breaks, and property development benefits. I haven’t seen any studies if these retail developments met city economic expectations, but certainly the recent raise in sales tax makes up any marginal differences. It pays to understand the multitude of incentives available from local, state and national agencies.
On a large scale, the $800 Million Los Angeles Football Stadium also carries enormous political capital. Instead of being tied up in protracted and costly legal wrangling on the local level, the developer was able to obtain an exemption from the California Environmental Quality Act (CEQA) from the State Senate. Plus the City of Industry will also underwrite a $150MM bond for infrastructure. For those other developers who have spent a small fortune meeting the guidelines of an EIR and satisfying the demands of local citizenry, they will realize the value of this exemption. But not to rest on his laurels, the Governor will be seeking to do the same for other large developments facing similar obstacles. Jobs are replacing regulation as a California priority.