So far one of the most hotly discussed topics in the upcoming City Council And Mayoral Election has been Kansas Incentives raiding Kansas City businesses with sweetheart deals.
Here's what Mayoral Candidate Jim Rowland has to say about the topic in his latest presser:
ROWLAND PROPOSES BINDING PACT TO STOP BORDER WARS
Jim Rowland, candidate for mayor, announced today that when elected he will seek state legislation authorizing an interstate compact between Kansas and Missouri to end the practice of companies moving short distances across state lines in order to obtain economic incentives at great expense to the taxpayers without adding any real new jobs to the area economy.
Rowland's proposal:
"I will ask our delegation to seek legislation approving an interstate compact with Kansas whereby each state will agree to amend its laws to make all of its economic incentive programs directly proportional to the distance moved by a company that moves from Missouri to Kansas and vice versa. It has become clear that unless a company is leaving the Metropolitan area, it views the seven county region as one location, and will select a particular site based on nothing more than the incentives.
These incentives should be used to cause companies to move here from outside the region and to cause companies to grow where they are rather than hop a few hundred feet across the state line. Thus, a company moving 1 mile or less would receive zero credit for net new jobs in the receiving state. The company moving 25 miles or more would receive full credit. The distances in between would be scaled accordingly.
The reason this will work is because companies moving from one place to another within a region tend to pick locations based upon where their employees live. Thus a company will not move from Kansas City to Topeka just to get economic incentives."
Rowland cited the recent example of J.P. Morgan which moved to distance of approximately three miles from 95th and Ward Parkway to the Sprint campus in Overland Park. Under the interstate compact, Morgan would have received 3/25ths of the maximum allowable Kansas incentives, or, in other words approximately 8%. He said that Morgan might have moved anyway for reasons unknown to us, but at least we would know it wasn't solely for the incentives.
He said the legislation could be based upon similar interstate compacts that have occurred between Kansas and Missouri. He would model the legislation for example, on the area transportation district interstate compact, which included the counties of Cass, Clay, Jackson and Platte in Missouri, and the counties of Johnson, Leavenworth in Wyandotte in Kansas.
Both state legislatures would adopt legislation including the terms of the agreement. Each Gov. would appoint 3 commissioners to a joint economic development commission, and the compact would be binding on the states when signed by at least two of the three commissioners from each state.
Rowland said he believed that Kansas would have motivation to adopt the legislation because at some point the Sprint campus will be full, and the turnstile works both ways. Several years ago, for example, Lockton insurance company moved from 75th and Stateline in Kansas to its current location on the Plaza. Furthermore, Rowland stated that many Kansas legislators and local government officials realize that the cost of these incentives is very high for the return involved.
In the case of J.P. Morgan for example, many of the employees already lived in the state of Kansas and Kansas was receiving a great deal of benefit just from having the company close to the state line. While some Johnson County legislators might not vote for it, members from Sedgewick and other counties not on the state line should be highly motivated. In fact a senator from Leawood, referring to state hopping, stated last week, "There is no benefit to the individual states or their economic development effort. The benefit is to the private business that is being courted with huge sums of money." [Sen. John Vratil.]
Rowland concluded, "The way we are doing this is insane, and I think many Kansas public officials realize that. Rather than just wring my hands as Mayor Mark Funkhouser is doing or attack the Chamber of Commerce, which has never worked and will not solve the problem, I have a specific plan."
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Here's what Mayoral Candidate Jim Rowland has to say about the topic in his latest presser:
ROWLAND PROPOSES BINDING PACT TO STOP BORDER WARS
Jim Rowland, candidate for mayor, announced today that when elected he will seek state legislation authorizing an interstate compact between Kansas and Missouri to end the practice of companies moving short distances across state lines in order to obtain economic incentives at great expense to the taxpayers without adding any real new jobs to the area economy.
Rowland's proposal:
"I will ask our delegation to seek legislation approving an interstate compact with Kansas whereby each state will agree to amend its laws to make all of its economic incentive programs directly proportional to the distance moved by a company that moves from Missouri to Kansas and vice versa. It has become clear that unless a company is leaving the Metropolitan area, it views the seven county region as one location, and will select a particular site based on nothing more than the incentives.
These incentives should be used to cause companies to move here from outside the region and to cause companies to grow where they are rather than hop a few hundred feet across the state line. Thus, a company moving 1 mile or less would receive zero credit for net new jobs in the receiving state. The company moving 25 miles or more would receive full credit. The distances in between would be scaled accordingly.
The reason this will work is because companies moving from one place to another within a region tend to pick locations based upon where their employees live. Thus a company will not move from Kansas City to Topeka just to get economic incentives."
Rowland cited the recent example of J.P. Morgan which moved to distance of approximately three miles from 95th and Ward Parkway to the Sprint campus in Overland Park. Under the interstate compact, Morgan would have received 3/25ths of the maximum allowable Kansas incentives, or, in other words approximately 8%. He said that Morgan might have moved anyway for reasons unknown to us, but at least we would know it wasn't solely for the incentives.
He said the legislation could be based upon similar interstate compacts that have occurred between Kansas and Missouri. He would model the legislation for example, on the area transportation district interstate compact, which included the counties of Cass, Clay, Jackson and Platte in Missouri, and the counties of Johnson, Leavenworth in Wyandotte in Kansas.
Both state legislatures would adopt legislation including the terms of the agreement. Each Gov. would appoint 3 commissioners to a joint economic development commission, and the compact would be binding on the states when signed by at least two of the three commissioners from each state.
Rowland said he believed that Kansas would have motivation to adopt the legislation because at some point the Sprint campus will be full, and the turnstile works both ways. Several years ago, for example, Lockton insurance company moved from 75th and Stateline in Kansas to its current location on the Plaza. Furthermore, Rowland stated that many Kansas legislators and local government officials realize that the cost of these incentives is very high for the return involved.
In the case of J.P. Morgan for example, many of the employees already lived in the state of Kansas and Kansas was receiving a great deal of benefit just from having the company close to the state line. While some Johnson County legislators might not vote for it, members from Sedgewick and other counties not on the state line should be highly motivated. In fact a senator from Leawood, referring to state hopping, stated last week, "There is no benefit to the individual states or their economic development effort. The benefit is to the private business that is being courted with huge sums of money." [Sen. John Vratil.]
Rowland concluded, "The way we are doing this is insane, and I think many Kansas public officials realize that. Rather than just wring my hands as Mayor Mark Funkhouser is doing or attack the Chamber of Commerce, which has never worked and will not solve the problem, I have a specific plan."
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Perhaps Jim would buy a surety bond from a broke-assed insurance company to back this plan up.
ReplyDeleteWow; so he will "seek state legislation authorizing an interstate compact between Kansas and Missouri"?
ReplyDeleteThat would be a ground-breaking idea IF THE TWO STATES NEEDED NEW LEGISLATION in order to have an interstate agreement.
This is called "spin", Tony. Hot air.
Rowland kicked off his campaign with a proposal about business licenses and now this! Somehow I don't think either of these ideas is on the top of the list of issues important for regular folks who live in KCMO. How about some ideas about curbing crime and plowing snow?
ReplyDeleteWithout business expansion you cannot get the revenue (taxes) to pay for plowing snow, etc. Let me explain it in simple terms to Deb Hermann with only a high school degree---keep and grow companies in KC and you get more revenue. If Deb continues to vote for every TIF that comes down the pike you cannot pay for much of anything.
ReplyDeleteRowland is the only candidate offering something with substance.
ReplyDeleteThis might be the dumbest idea ever. Kansas legislators would never pass this. They have no incentive to. Rather than getting on our knees and begging Kansas to throw Missouri some crumbs, why don't our politicians make KC a place that businesses will want to move to and remain. We don't need a fatalist Rowland. The dude has held elected office for over 10 years and has not done squat. Get a job in the private sector, Rowland.
ReplyDeleteAnon 10:28pm makes a very good point. As long as KCMO continues to deteriorate into a worse place to live and do business, both residents and companies will look elsewhere.
ReplyDeleteThis is like building the Berlin Wall to try to keep people IN! The loser approach to the loser mentality!
Do we really want another Glo in the mayors office.
ReplyDelete