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..........�.-_______ COVER STORY FROM PAGE 3 on new construction,which is more expensive ., than leasing. Trickle back and forth The ongoing competition between Minnesota and Wisconsin usually gets head- , lines,but it isn't that big of an issue compared to a lot of other areas of the country, said Michael Langley,CEO of Greater MSP,a Twin Cities economic development entity. "I see very little border battle with Wisconsin. 4 d The economic activity between the states is more friendly than fierce, but some compa- nies do shift between states if they can get an advantage or find a particular site that meets — their needs,he said. "Hudson was built with Uline Inc., a company that sells packaging equipment and supplies to business,will move = companies that hopped across the its operations, and 150 jobs, from Eagan to a 600,000-square-foot warehouse in Hudson border.' this year. The privately held company picked the site �`¢ "It's basically how to lie because it was less expensive than in the Twin Sandy Barin Cities and because Hudson has less restric- with numbers . . . These [tax costs] Senior associate,CBRE Group Inc. tions than places it considered in Minnesota. *" But border crossings go both ways.Logistics are sort of marginal differences." company Valley Cartage in March said it would move its 50-person headquarters from Best of the worst? Hudson to Lake Elmo.The state, city of Lake "We don't look at Ann Marie Woessner-Collins Ultimately,there are few cases of big compa- Elmo and Washington County combined to Site selection expert,Jones Lang LaSalle nies leaving Minnesota forWisconsin.One rea- provide$900,000 in tax and training assistance Wisconsin as a place that we son for that is there are other areas of the coun- to support the move. try—and world—where tax differences are And last year, med-tech company Rapid need to match up with° much starker than between Minnesota and its Diagnostek Inc., which had moved from a different sort of business. neighbor.The Tax Foundation,a Washington, Minnesota to Hudson to pursue investment Empire Bucket wound up in Hudson D.C.-based think tank, ranked Wisconsin as capital, quietly returned home. The reason? Michael Langley Industrial Park,and it's grown there,doubling 43rd most friendly and Minnesota as 45th in Availability of talent. in size to about 40 jobs. its most recent state-by-state analysis of tax Rapid Diagnostek's decision typifies a com CEO,Greater MSP Of course, comparing taxes between states climates published last fall. pany's primary concerns when it comes to sit- is tricky,Woessner-Collins said.Wisconsin has Minnesota faces a larger threat of losing ing, said Langley, who assisted with landing lower real property tax rates than Minnesota, manufacturing expansion projects to places Valley Cartage. Supply-chain concerns, facili- thing like that,"Langley said. but it taxes personal property while Minnesota like Texas, Georgia or China, than it does to ties and recruiting typically rank much higher Even Pertz,the owner of Empire Bucket,had doesn't. Wisconsin,Woessner-Collins said."From a na- than tax structure for most expansions,he said. other things on his mind besides taxes when "It's basically how to lie with numbers,"she tional view,Minnesota has never been viewed Taxes come up more often as tie-breakers. he moved his business in 1986.He considered said."These are sort of marginal differences." as a go-to state" and Wisconsin is only mod- "We think that we in Minnesota need to be expanding in Minnesota,going far enough to estly better. competitive,but we don't look at Wisconsin as try buying land in Afton, but said he was re- a place that we need to match up with or any- buffed by local officials who said they wanted sblack@bizjournals.com 1(612)288-2103