In hard times, economic development specialists have created unique and innovative incentive packages to help ease the financial burden on existing companies and make it attractive for new ones to locate to their states.
Luxembourg is at Western Europe’s geographic core and has long been a major player in the surrounding market.
A new governor’s battle plan to energize a sluggish economy zeroes in on incentives that work and the growth of knowledge-based jobs in the Tarheel State.
Southern states, with lower business costs and a ready workforce, as well as a critical mass of suppliers, still rule in terms of foreign automotive investment.
Howard Hanna Moves Real Estate HQ to Cleveland Howard Hanna Real Estate will move the regional headquarters of its 21-county operation in Ohio from Seven Hills to Cleveland. It will consolidate its operations in the downtown Warehouse District at 800 West St. Clair, the former location of recently acquired Realty One. “With the help of Councilman [Joe] Cimperman, the Downtown Cleveland Alliance and the City of Cleveland’s Economic Development Department, we were able to show the unique assets available to businesses that made Downtown Cleveland the location of choice for the company,” Cleveland Mayor Frank Jackson says. The city will provide to Howard Hanna an Urban Development Action Grant loan in the amount of $250,000, distributed over three years and likely turned into a grant if all loan conditions are met, including maintenance of employment levels. According to Howard Hanna executives, about 100 Seven Hills employees will join about 55 former Realty One employees downtown. More hiring is expected and the employment level will likely reach 200. Howard W. Hanna IV, president of Howard Hanna Ohio, said that in addition to taking over Realty One’s 25,000-square-foot office space, the company plans to lease another 5,000 square feet in the building to accommodate more staff. He said the company is making a “significant” investment into the property, above the loan amount, but did not provide a figure. “The decision to place our Ohio headquarters in the city solidifies our commitment to the region and Cleveland, which is one of the nation’s largest major urban centers,” Hanna says. “Before we entered the Ohio market in 2003, we were impressed by the vitality of Cleveland as a world-class city that offers outstanding quality of life and has an unlimited potential for business growth. That impression is not only lasting, it is deepened.” Howard Hanna Real Estate Services, with corporate headquarters in Pittsburgh, PA, is the fifth-largest full service real estate company and the third-largest privately held real estate firm in the United States. In a period of nearly six years, the company has acquired eight other real estate brokerages and expanded services to include insurance, mortgage options, title and escrow. It is estimated that the brokerage’s move will generate more than $1 million annually for the local economy. Howard Hanna says it expects downtown to grow in the next decade, with a resurgence of high-density, mixed used-urban developments. West Chester Medical Center Opening in May West Chester Medical Center, which broke ground in West Chester, OH in July 2006, is scheduled to open […]
Hemlock Semiconductor to Build $2.5 Billion Plant in Clarksville The Hemlock Semiconductor Group will invest up to $2.5 billion to locate a polycrystalline silicon (polysilicon) manufacturing operation in Clarksville, TN at the Commerce Park megasite in the northeastern edge of the city. If plans are fully implemented, it will be the largest corporate capital investment in Tennessee history. After a two-year global search of more than two dozen sites, The Hemlock Semiconductor Group, which includes two Dow Corning Corporation joint ventures, Hemlock Semiconductor Corporation and Hemlock Semiconductor LLC, finally decided on a location. “Tennessee’s business climate coupled with a superb site in Clarksville, a strong, productive workforce and an excellent location in proximity to our supply chain and customers made this the right decision,” said Hemlock Semiconductor President and CEO Rick Doornbos. “This investment will allow us to meet growing customer demand in both the near term and in the decades ahead.” The Clarksville facility will produce polycrystalline silicon, a primary component used to manufacture solar cells and semiconductor devices. While most of the polysilicon will be consumed by firms in the solar industry, the site also will have the capability to make ultra-pure silicon for the electronics industry as well as solar-grade material. Upon completion, the new facility will have the capacity to manufacture up to 10,000 metric tons of polysilicon annually with the potential to expand to a production level of 21,000 metric tons. Groundbreaking on the new plant is expected in March 2009 and will create up to 1,000 jobs in construction and related crafts during the building phase. Projected to open in 2012, the Clarksville facility itself will create 500 jobs with the potential of employing up to 900 people within five to seven years. The plant will occupy the entire 1,215-acre Commerce Park megasite and the company plans to acquire an additional 947 acres adjacent to the site for additional build-out and buffer space. “The exact scale of this investment will be determined by market conditions. Making this investment in today’s volatile economic climate is a testament to both the long term outlook of the solar industry as well as Hemlock Semiconductor’s ability to add capacity to meet the needs of customers,” said Doornbos. In conjunction with this new industrial development, Austin Peay State University has received a $6.4-million grant to develop and train a workforce for the incoming Hemlock Semiconductor Plant. This includes a new campus building, six new chemical technology professors and about eleven new professors for other core credit requirements toward the […]
Zoning, mineral rights and water rights move to the forefront in a regional relocation.
BF: What economic advantages does Texas offer that have kept the state atop Allied’s relocation destination list for the last four years? SM: Texas is often at the top our list due to a number of factors. First, it’s a large state with a large population; therefore, it’s likely to have a greater percentage of activity. The large metropolitan areas in Texas have diversified their economies over the last 20 years so that they are not as dependent on oil, making Texas more attractive to corporate headquarters and manufacturing operations. Homeland security also has generated more economic opportunities in Texas and other border states. For the consumer, Texas offers no income tax, lower property costs, and a lower cost of living than northern and western regions of the United States. BF: What are some factors causing states such as Michigan and Pennsylvania to experience the highest outbound relocation losses? SM: Michigan and Pennsylvania, like other areas dependent on heavy manufacturing and the auto industry, have been in decline for a number of years. With a push by retirees to head south and corporations looking south for lower costs, the Northeast and Midwest feel the negative effects of the migration patterns. BF: Based on Allied’s survey, the top three US magnets (Texas, North Carolina and Virginia) are Southern states. If not coincidental, to what can you attribute this regional relocation trend? SM: The Southern economy offers a lower cost of living, a more temperate climate, and diversified metropolitan areas that have become more sophisticated. Retirees are targeting the Carolinas as well as other non-traditional destinations such as Tennessee, Arkansas, and Alabama. The trend is real and is brought even more to light in the wake of the current economic condition. Texas on Top More people chose to relocate to Texas than any other state in 2008, according to Allied Van Lines’ 41st Annual Magnet States Report released in January. The report tracks US migration patterns, and Texas snagged the top spot for the fourth consecutive year. Texas achieved the highest net relocation gain (inbound moves minus outbound moves performed by Allied) of 1,903 in 2008. Also for the fourth year in a row, North Carolina placed second on the list with a net relocation gain of 800, followed by Virginia in third place with a gain of 398. Colorado and Oregon placed fourth and fifth respectively for states with the largest net relocation gains. “Texas truly offers such a wide range of activities for its residents,” says David King, general manager […]
From the Desk of the Editor in Chief
Gold Award: Infrastructure, Education and Quality of Life Convince Rolls-Royce To Deliver a Jet-Powered Boost for Growth in Virginia