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I. . __ ,. L -- - _--- - — -- • , -- .- _a : t7 _._- _ . . i.--- --- - ' — -_. -= _ - - -- The Application of Local Economic Development Incentives in Georgia company has to pay increases incrementally after the third year, the lease is up and the company can opt to buy the building or chose to negotiate another lease. One Tier 1 inteiviewee committed that sometimes incentives are not the lcey factor in a company deciding to come into a commiuuty. This person believes that "quality of life" factors, or even the particular preferences of lcey personnel in the company deciding on a new location may determine the site. When incentive pacicages are comparable, factors other than incentives become lcey considerations. This same corrununity had a new internet company that requested a$35 million up front cash incentive to locate in the community. The company said it had a potential for creating 350 jobs. The coinmunity passed on this opportunity for good reasons, both economic and legal. Another example of a Tier 1 incentive program was the package provided to a new 180 employee incoming call center. The most important characteristic of the incentive shategy was tax exemptions. Property tax cost reductions were made and job tax credits BEST legislation) were offered. The company required (and received) fiber optic cable wiring. The company has become a good community citizen. As another example, one Tier 2 community put together an incentive pacicage that had both state and local components. This example demonstrates the interdependency of the local and state agencies and programs. To get the company to locate in the community the local industrial authority sold a building to the company at a loss; gave the company land and then bought an additional 23 acres; provided the engineering and surveying; and leased an office for the company site team. The county prepared the site. A state REBA grant provided additional land purchases, MEAG provided the utilities, and Quicicstart and East Cenh•al Technical College provided the training and relocation retaining respectfully. The interviewee felt the incentives were necessary to get the deal and the deal has been positive for the community. To date, this project has created approximately 950 jobs. Evidence of what may be called "third wave" incentives were evident in the site visits as well. For example, the importance of developing partnerships was frequently mentioned and emphasized as a rype of incentive to relocating businesses. It seems, however, that conun mities may not always view these activities as actual incentives, but rather as the way in which they do business." 3+7