Kansas, Missouri battle over companies

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Re: Kansas, Missouri battle over companies

Postby aknowledgeableperson » Wed Feb 18, 2015 9:41 am

there's already been conflict over one KS incentive program


Years ago Kansas was using its pension funds as a way to invest in businesses to move, grow, establish in Kansas. Think that was quite a disaster for the state.

I predict in the future we are going to learn that a lot of these incentives being given in Kansas where some political backdealing to help developers build properties


I think that could be said for the use of tax incentives used by any government to some degree. Just look at political donations, and their amounts, developers and their lawyers give politicians.

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Re: Kansas, Missouri battle over companies

Postby FangKC » Wed Feb 18, 2015 10:53 am

Yes, and that is why it's important that records be kept, and made available to the public and press, so that light may be shined on what is going on.

It's not only the problem of government not keeping good records. There's also the problem that many local media outlets have cut back on the number of reporting staff, so there are fewer people to do investigative reporting on these issues.

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Re: Kansas, Missouri battle over companies

Postby KCMax » Wed Feb 18, 2015 10:56 am

flyingember wrote:there's already been conflict over one KS incentive program, I forget which one or the exact details (maybe it's in a thread here, if I knew the name I would search)

one claim was the amount in the law was the total available. the department said that was yearly or something like that. the difference between the two numbers was huge.


Kansas Commerce secretary denies PEAK went over the top

When the program was amended in 2010 to allow expanding Kansas companies to qualify, the Legislature introduced a $6 million cap on the forgone tax revenue granted to those companies. But according to the Legislative Division of Post Audit, the Commerce Department authorized $7.5 million in PEAK incentives for fiscal year 2013, thus exceeding the statutory cap by $1.5 million.
In addition, the department has made commitments that exceed the cap by $22.5 million during the next 10 years, the auditors reported.


I have spoken to one former KS legislator who said that when she tried to get numbers once from Commerce, it took forever for them to get back to her, and when they did, the numbers were outdated, and not really what she was asking for.

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Re: Kansas, Missouri battle over companies

Postby earthling » Wed Feb 18, 2015 12:39 pm

Yes, the focus needs to be on the wasted incentives for local biz instead of using to attract outside companies. However the argument that the border war harms job growth doesn't pan out as KC metro overall lately has been shooting up in pro biz white collar jobs at the same rate it did in the hot 90s (doesn't include telcom). Most of the jobs moving between state line are in pro biz services category. Where KC is flat/hurting is govt, telcom, transportation/utilities. And manufacturing not returning much despite auto industry supporting companies moving here. The areas KC is hurting is not impacted by the type of border war jobs moving around.

KC Metro Pro/Biz services jobs over last 24 years (telcom not included). It increased nearly 6% last year, higher % than Denver/MSP...
Image

http://data.bls.gov/timeseries/SMU29281 ... ol=XGtable
http://www.bls.gov/eag/eag.mo_kansascity_msa.htm

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Re: Kansas, Missouri battle over companies

Postby KCMax » Thu Feb 19, 2015 4:19 pm

Disclosed PEAK grants total $369.7M; 87 percent deployed at border

Of the $369.7 million granted, $266.2 million, or 72 percent, went to attract or retain jobs in Johnson County, where 125 acknowledged PEAK grants were awarded. An additional $54.4 million, or 14.7 percent, was offered to attract or retain jobs in Wyandotte County, which had 21 acknowledged PEAK grants.
That means 86.7 percent of the acknowledged PEAK grant volume awarded in Kansas, a state with 103 counties, went to two counties on the border.

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Re: Kansas, Missouri battle over companies

Postby flyingember » Thu Feb 19, 2015 4:24 pm

That makes sense.

In terms of individual income, JoCo has as much individual income as the bottom 90 counties in Kansas.

So to be logical they must do whatever it takes to keep making JoCo the welfare source for most of the state. The state is that reliant on people not taking a job in Missouri and moving to Parkville or Belton.

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Re: Kansas, Missouri battle over companies

Postby KCMax » Fri Feb 20, 2015 10:34 am

AMC Entertainment can keep up to $21 million in taxes for its move to Leawood

Here's the local list of companies receiving PEAK benefits starting in 2014 alone:

• Kiewit Energy Group
• HD Power Supply Solutions
• Grant Thornton
• MarketSphere Consulting
• Missouri Kansas Supply Co.
• Argus Consulting
• PQ Corporation
• Alexander Open Systems
• Aetna
• Tiger Cool Express
• Robert E. Miller Insurance Agency
• Grantham University
• National Crop Insurance Services
• The Gerson Co.
• Unilever Manufacturing
• HairUWear Inc.
• D.H. Pace Co.
• Diteq Corporation
• BRR Architecture
• SkyMark Refuelers
• Golden Star Inc.
• Bukaty Companies
• Telemark Inc.
• Brunghart Honomichl & Company
• AIG Global Services
• Netchemia
• Shield Casework
• Cornerstone Kansas City
• Zurich American Insurance Company
• Mortgage Lenders of America

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Re: Kansas, Missouri battle over companies

Postby bobbyhawks » Fri Feb 20, 2015 10:56 am

KCMax wrote:AMC Entertainment can keep up to $21 million in taxes for its move to Leawood

Here's the local list of companies receiving PEAK benefits starting in 2014 alone:


• Grantham University

I am pretty impressed that someone is able to rationalize tax breaks to move a for-profit university across the border when public education is getting slashed left and right due to insufficient funds.

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Re: Kansas, Missouri battle over companies

Postby FangKC » Fri Feb 20, 2015 3:23 pm

Grantham University appears to be more a business than an institution of learning. Most other higher learning institutions don't accept credits from Grantham, and many companies won't hire people with Grantham degrees.

Some might call it a diploma mill.

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Re: Kansas, Missouri battle over companies

Postby KCMax » Fri Feb 20, 2015 4:35 pm

FangKC wrote:Grantham University appears to be more a business than an institution of learning. Most other higher learning institutions don't accept credits from Grantham, and many companies won't hire people with Grantham degrees.

Some might call it a diploma mill.


Isn't it one of those that literally moved a mile along 435 too?

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Re: Kansas, Missouri battle over companies

Postby flyingember » Fri Feb 20, 2015 4:37 pm

FangKC wrote:Grantham University appears to be more a business than an institution of learning. Most other higher learning institutions don't accept credits from Grantham, and many companies won't hire people with Grantham degrees.

Some might call it a diploma mill.



when they were in Zona Rosa, where they moved from, I didn't know they were there for years. I had a recruiter send me a job for them and I didn't even look them up before I decided something was fishy because I didn't know they were in the place.

Universities tend to advertise their existence on signs nearby to a point of annoyance. They say, "there's a university here, we're convenient and we spent so much telling you this we will be here a while," not "we're something that can be moved at will when a different city offers us incentives."

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Re: Kansas, Missouri battle over companies

Postby KCMax » Wed May 06, 2015 2:44 pm


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Re: Kansas, Missouri battle over companies

Postby flyingember » Wed May 06, 2015 3:06 pm

KCMax wrote:KS HB 2428 would phase out PEAK

http://kslegislature.org/li/b2015_16/measures/hb2428/


this is one complex document with mixed results. one program is stops new recipients but keeps existing. one surtax it lowers the rate. one item it changes the end date from 2012 to 2016 so new people can join it.

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Re: Kansas, Missouri battle over companies

Postby kcjak » Fri Sep 04, 2015 12:09 pm

Applebee's HQ moving to California. I want our $12.5 million in incentives (moving to MO from KS) back.

http://www.bizjournals.com/kansascity/blog/morning_call/2015/09/applebees-dineequity-headquarters-move.html

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Re: Kansas, Missouri battle over companies

Postby flyingember » Fri Sep 04, 2015 12:28 pm

I doubt they actually got the incentives. They shouldn't have received it all either way.

http://www.bizjournals.com/kansascity/n ... tives.html
The incentives package provided by the Missouri Department of Economic Development includes nearly $11 million in tax credits awarded to DineEquity through the Missouri Quality Jobs program and an additional $1.5 million in new jobs training program money.

The company is required to bring 390 jobs to Missouri during five years to receive the tax breaks, Missouri DED spokesman John Fougere said.


from
http://www.bizjournals.com/kansascity/b ... -move.html

When Applebee's moved its headquarters from Lenexa to Kansas City in 2011, it had 350 area employees


Applebee's employs about 220 people in the metro area


So the company could not have added 390 jobs no matter how you spin it.

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Re: Kansas, Missouri battle over companies

Postby Highlander » Mon Sep 07, 2015 10:59 am

kcjak wrote:Applebee's HQ moving to California. I want our $12.5 million in incentives (moving to MO from KS) back.

http://www.bizjournals.com/kansascity/blog/morning_call/2015/09/applebees-dineequity-headquarters-move.html


Almost glad to see this company leave the metro. They've been playing the incentives game for years and through at least a couple of moves locally. Plus they offer such a mediocre product, I can't see them lasting much longer (the only times I ever went was when travelling through small towns with little else). They do have a very large and prominent location in NY Times Square - I always wonder who goes to NY and ends up eating at Applebees?

Where was Applebees? I seem to remember they had moved into the Pershing Square Building just east of Union Station?

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Re: Kansas, Missouri battle over companies

Postby KCPowercat » Mon Sep 07, 2015 12:03 pm

Highlander wrote:
kcjak wrote:Applebee's HQ moving to California. I want our $12.5 million in incentives (moving to MO from KS) back.

http://www.bizjournals.com/kansascity/blog/morning_call/2015/09/applebees-dineequity-headquarters-move.html


Almost glad to see this company leave the metro. They've been playing the incentives game for years and through at least a couple of moves locally. Plus they offer such a mediocre product, I can't see them lasting much longer (the only times I ever went was when travelling through small towns with little else). They do have a very large and prominent location in NY Times Square - I always wonder who goes to NY and ends up eating at Applebees?

Where was Applebees? I seem to remember they had moved into the Pershing Square Building just east of Union Station?


I think they are on Ward Parkway by the mall?

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Re: Kansas, Missouri battle over companies

Postby Highlander » Mon Sep 07, 2015 12:21 pm

KCPowercat wrote:
Highlander wrote:
kcjak wrote:Applebee's HQ moving to California. I want our $12.5 million in incentives (moving to MO from KS) back.

http://www.bizjournals.com/kansascity/blog/morning_call/2015/09/applebees-dineequity-headquarters-move.html


Almost glad to see this company leave the metro. They've been playing the incentives game for years and through at least a couple of moves locally. Plus they offer such a mediocre product, I can't see them lasting much longer (the only times I ever went was when travelling through small towns with little else). They do have a very large and prominent location in NY Times Square - I always wonder who goes to NY and ends up eating at Applebees?

Where was Applebees? I seem to remember they had moved into the Pershing Square Building just east of Union Station?


I think they are on Ward Parkway by the mall?


Yea South KC - I should have read the Business Journal article - much more info than the Star had. I noticed Applebee's had gone from 350 to 220 employees since moving to KCMO (as opposed to adding 390 jobs). Did the economic development people REALLY think that Applebee's had that kind of growth potential? LOL.

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Re: Kansas, Missouri battle over companies

Postby earthling » Mon Sep 07, 2015 1:21 pm

Or that there would be an increased demand for reheated frozen foods loaded with chemicals? Have only been dragged there a couple times... am not an organic nut or even overly concerned about GMO's but only thing I could taste at AppBee's were chemicals and salt that had near freezer burn texture. For 'sit down fast casual', they are worse than many traditional fast foods. Basically re-re-reprocessed Sysco 'food'.

Not cool to see KC lose an HQ (even if subsidiary) but given the incentives games they played, buh-bye...

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Re: Kansas, Missouri battle over companies

Postby flyingember » Mon Sep 07, 2015 1:44 pm

Highlander wrote:

Yea South KC - I should have read the Business Journal article - much more info than the Star had. I noticed Applebee's had gone from 350 to 220 employees since moving to KCMO (as opposed to adding 390 jobs). Did the economic development people REALLY think that Applebee's had that kind of growth potential? LOL.

Maybe they knew exactly what they were doing.


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