3. Year in Review
Business Activity
January 2010 â Present
Expansion Number Type of Operation
Date of City of or of New Square
Activity Company Name Location Relocation Jobs footage
3/16/2010 Renal Advantage Franklin Expansion 0 54,000 HQ
Corporate Office
Principal Financial
4/12/2010 Group Brentwood Relocation 50 9,000
Jackson National Life Regional HQ
5/25/2010 Insurance Company Franklin Relocation 750 155,000
6/23/2010 Advanced BioHealing Brentwood Expansion 10 5,500 Life Sciences R&D
8/17/2010 Comdata Brentwood Expansion 120 0 HQ
8/27/2010 IRS Franklin Relocation 736 115,885 Government
BioMimetic HQ, Health Care, R&D, Manufacturing
10/1/2010 Therapeutics Franklin Expansion 75 90,000
HQ
10/11/2010 MedSolutions Franklin Expansion 100 19,000
HQ
10/14/2010 OHL Brentwood Expansion 250 37,000
TOTAL 2,091 485,385
4. Who is growing jobs?
Net Job Change in the Nashville Area
2004 to 2009
2009 Population Estimates 9% 3%
6% 2% 0% 13%
3%
0% Cheatham
10% Cheatham Davidson
Davidson 8% Maury
37% Maury Montgomery
Montgomery Robertson
9% 2% Rutherford
Robertson
Rutherford Sumner
39% Williamson
Sumner
Dickson
Williamson
Wilson
Dickson
15% Wilson 20%
5%
4% 9% 6%
TOP 3
1. Williamson +29
2. Rutherford +5
3. Wilson +3
5. How do people view incentives?
Necessary evil
Cost of entry
Investment
6. How do you relocate a company?
âIncentives wonât make a bad deal good.â
8. What are the types of incentives?
Fast Track/Concierge Permitting
Infrastructure Improvements
Financing
TIFs
Tax Abatement
Cash
Other
(Building signage, road renamed, employee discounts)
Offset up-front cost of relocation
9. Where do incentives come from?
75-85% State
Statutory
1. credits against state franchise and excise taxes
2. training/infrastructure $
3. 25 new jobs and $500K in investment (new & existing)
Discretionary
10-20% TVA
10-20% Local
1. tax abatement (never school portion)
2. infrastructure matching grants
10. Williamson County Criteria
1. The quality of jobs created.
2. The education level of jobs created.
3. The salary of jobs created.
4. The impact of the industry on the environment.
5. The eventual impact of the industry on local tax revenues.
6. The capital investment that the industry will bring to the community.
7. The effect of the industry on the strategic planning of the community.
8. The impact of the industry on existing business.
9. The financial strength and stability of the industry.
10. The impact of the industry on local property values.
11. The impact of the industry on local infrastructure.
12. The number of jobs created.
13. The impact on the character of the community.
14. Whether the industry is new or an expansion of an existing business.
Case-by-case basis â allows maximum flexibility
11.
12. What have we done recently?
Sample of 2005-2010 Incentive Packages
Jackson National Life Insurance Company Regional Headquarters, 2010
Size: 154,000 square feet
Estimated Cost: $10 million
Jobs: 750 over 3 years; average salary, $40-$50,000 a year
âą Jackson will receive a 40 percent property tax break for five years up to $492,800 from
Williamson County
âą Jackson can receive up to $200,000 from the City of Franklin for an infrastructure grant
Verizon Wireless State of Tennessee Headquarters, 2007
Size: 180,000 square feet
Estimated cost: $54 million
Jobs: 600 to 700 over three to five years; average salary, $33,407 a year.
State and local incentives:
âą Verizon will receive a 40 percent property tax break for five years up to $500,000
âą Value of State package = $5 million
13. What have we done recently?
Sample of 2005-2010 Incentive Packages
Nissan North America Corporate Headquarters, 2005
Size: 460,000 square feet occupied
Estimated cost: $75 million (capital investment of more than $100 million)
Expected jobs: 1,200-plus
State and local incentives included:
âą Nissan got a 47 percent property tax abatement estimated at $32.5 million from Williamson
County
âą Franklin borrowed $15 million to buy land on which Nissan's headquarters is being built.
âą $400,000 in electrical system improvements
âą $2.2 million for screening of job applicants and $720,000 for on-the-job training
âą State Package = $150 million
Always on new construction, reluctant to take property off tax roles
14. What are we up against?
âą Virginia Economic Partnership in TN in March 2010
âą $500K for Hangar HQ from City of Austin â 120 HQ jobs
âą CEO expects at least as good a deal as last company
Kansas vs. Missouri
When states poach each otherâs businesses, taxpayers lose
Kansas City Star, Nov 29, 2010
âKansas City and Missouri offered an incentive package valued at more than $200 million
last year to try to get Black & Veatch to jump the line. The firm ultimately decided to keep
its 2,300 employees in Overland Park, but Kansas shelled out a $25 million incentive
package to seal the deal.â
15. How aggressive are we?
Short-term vs. long-term approach
- 3rd lowest county tax rate in region
- Lowest tax rate of any large city in TN (Franklin)
âWilliamson County commits to maintaining a prosperous business environment.
These commitments will lead to significant long-term costs savings for the client and
their employees who choose to reside in Williamson County.â
Companies you want to attract look for mutual benefit and think long-term
In a race to the bottom, everybody eventually loses
We will be aggressive if project is a fit, and could use more tools in toolkit
16. Incentives
âSimilarly, incentives have never, in my opinion, occupied so
prominent a position in searches for new sitesâŠtax exemptions and
related state and local incentives that generate âcashâ with which to
reduce capital expenditures and lower start-up costs are exerting
powerful forces in site selection projects across the globe.â
David Brandon | Senior Vice President | SITE SELECTION GROUP