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What is the Process for Securing Incentives?
The first step is to identify communities the Company would like to pursue. This decision making process is accomplished through internal operational and/or management desires to a sophisticated market assessment. During this phase, we submit an RFP to each of the short-listed communities. This RFP provides a general overview of the Company's operations including projected payroll, headcount, and capital expenditures during the first five years of operation. Also included in the RFP is an Economic & Fiscal Impact Analysis. This report demonstrates and quantifies the economic & fiscal impact a Company will have on the Community in terms of jobs, payroll, economic activity, and tax revenues. These impacts are analyzed from the Company level as well as the ripple effects in the economy which include jobs, payroll, and tax revenues generated from companies supplying goods & services to the Company and other companies created from the spending of the wages of all jobs created. This Economic & Fiscal Impact Analysis helps educate each Community on the value the Company will bring and helps provide leverage for us to negotiate & secure a higher level of incentives.
Each community is requested to respond with a list of economic incentives they intend to offer & secure to help induce the Company to choose their Community. Utilizing our extensive database of available incentive programs, rules & conditions of every program, and substantial experience securing economic incentive packages, each Community will be asked for further clarification of clawbacks, if any, or reconsideration of the actual incentive benefits. This stage of the process helps identify next steps in terms of filling out applications and negotiating business terms, bring clarity to the sensitivity of timing of each incentive with respect to “but for” requirements and official press releases, and isolate any tax consequences a particular economic incentive will potentially have on the Company.
The result of this extensive analysis and negotiation is that we ensure you receive the maximum financial and economic incentives that are most meaningful to your Company's bottom line, tax structure, and operating cash needs.
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