Friday, October 29, 2004
Georgia is offering a reported $30 million in tax credits to attract Kmart's headquarters. Despite the lure of Atlanta, Michigan leaders are sounding more optimistic that they will keep the headquarters. Michigan is offering $45.5 million in incentives, in the form of $44.7 million in tax credits and a $750,000 grant to train employees.
The jobs numbers are bouncing around a bit. Current corporate employment is about 2,200 workers. Michigan wants Kmart to agree to keep at least 1,500 jobs in the state as a condition for accepting its incentive package. According to Georgia's papers, if Kmart does move, the job total in Atlanta will be closer to 1,000.
So, it turns out that the incentives per job are about equal. Michigan is offering $45 million for at least 1,500 workers ($30,000 per job). Georgia is offering $17 million for what it expects will be 1,900: 1,000 headquarters jobs and 900 data center jobs ($9,000 per job).
Some Background on EDPro Weblog
The purpose of this weblog is to help economic development professionals -- EDPros -- keep up with the changes sweeping our profession. Strap on your goggles. It's a whole new game. There are no experts any more. The only place to learn about economic development is from other EDPros who are doing it.
One other point: the prevaling approach (paradigm, if you like) in economic development is shifting from competition to collaboration. There are a lot of reaasons underlying this shift, but here's the important insight: You, your community, and your region will do better by collaborating and sharing information.
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Speaking and workshops on Open Source Economic Development
As the idea of Open Source Economic Development starts spreading, more people are asking about it. Visit the I-Open web site to learn more. My colleagues and I are happy to explain the basic concepts in a talk or a workshop. E-mail Susan Alshuler if you'd like to learn more about workshops and speaking.
Background on Ed Morrison
Download some background information on me here.
Anatomy of a deal: Shopping for Kmart
