KCRag Forum

When Amazon bought Whole Foods, the HQ remained in Austin, TX. I don’t see a reason why AMC would be different?

If they want to be close to their studios it would make sense to move to California.

Movie studios cannot own movie theaters, or at least chains. United States vs Paramount Pictures.

https://supreme.justia.com/cases/federal/us/334/131/

One of the state street buildings, where the USDA is moving in, has a trash chute.

They're not State Street buildings. DST owns them.

KC loses out for eleanco HQ

Elanco bought Bayer animal health which has about 650 employees in Shawnee. They will move their HQ to Indianapolis. They received an incentive package that includes almost $90 million in state tax credits, $4 million in training grants and $64 million in infrastructure work to be financed through a tax-increment financing district.

As I recall, people on this site always tell us how other cities didn't have to do these kinds of incentive packages?

kboish wrote: ↑Mon Dec 14, 2020 10:28 am KC loses out for eleanco HQ

Elanco bought Bayer animal health which has about 650 employees in Shawnee. They will move their HQ to Indianapolis. They received an incentive package that includes almost $90 million in state tax credits, $4 million in training grants and $64 million in infrastructure work to be financed through a tax-increment financing district.

As I recall, people on this site always tell us how other cities didn't have to do these kinds of incentive packages?

Looks like an urban HQ site too.

Not surprising they'd go where the incentives are available and existing larger presence, apparently they value that over KC broader region being global epicenter of animal health. In the bigger picture it's not a huge loss for KC given the latter still has momentum but would have been a bonus to keep. Is it just HQ or will jobs be leaving KC area too?

Their existing HQ is not far from Indianapolis. $168 million incentives for 600 new jobs. Does not sound like a good deal.

normalthings wrote: ↑Mon Dec 14, 2020 11:05 am Their existing HQ is not far from Indianapolis. $168 million incentives for 600 new jobs. Does not sound like a good deal.

If average wages are at $100k, $60 million per year

3% spent on local housing- $1.8 million
35% at 3% sales taxes (made up number)- $630,000

There's other taxes but the increased carrying costs counters a lot of value gained.

The average wage has to get to be in the ballpark of $400-500k to be worth it for the city.

flyingember wrote: ↑Mon Dec 14, 2020 2:23 pm

normalthings wrote: ↑Mon Dec 14, 2020 11:05 am Their existing HQ is not far from Indianapolis. $168 million incentives for 600 new jobs. Does not sound like a good deal.

If average wages are at $100k, $60 million per year

3% spent on local housing- $1.8 million
35% at 3% sales taxes (made up number)- $630,000

There's other taxes but the increased carrying costs counters a lot of value gained.

The average wage has to get to be in the ballpark of $400-500k to be worth it for the city.

http://www.greenfieldreporter.com/2020/ ... _was_done/

Average annual wage of about $149,000

normalthings wrote: ↑Mon Dec 14, 2020 3:13 pm

flyingember wrote: ↑Mon Dec 14, 2020 2:23 pm

normalthings wrote: ↑Mon Dec 14, 2020 11:05 am Their existing HQ is not far from Indianapolis. $168 million incentives for 600 new jobs. Does not sound like a good deal.

If average wages are at $100k, $60 million per year

3% spent on local housing- $1.8 million
35% at 3% sales taxes (made up number)- $630,000

There's other taxes but the increased carrying costs counters a lot of value gained.

The average wage has to get to be in the ballpark of $400-500k to be worth it for the city.

http://www.greenfieldreporter.com/2020/ ... _was_done/

Average annual wage of about $149,000

they better get a lot of taxes from the building, it's going to take a long time to recover that

with them having their HQ already in Indiana, I can see where they would have been heavily incentivized by the state to stay there, Indianapolis is the largest city and the capital, so it is easier to sometime focus these type of efforts and deals to make them work. Good for IN to score 600 jobs or so. Let's hope they have success which will in turn fuel new companies in the KC area as we continue to grow and develop our KC as the hub for an Animal Science/Agribusiness in the region. You hate to lose out on something like that but hopefully we can make the most of it not more down the road.

Who knows maybe we'll get the NCCAA back at some point

kboish wrote: ↑Mon Dec 14, 2020 10:28 am KC loses out for eleanco HQ

Elanco bought Bayer animal health which has about 650 employees in Shawnee. They will move their HQ to Indianapolis. They received an incentive package that includes almost $90 million in state tax credits, $4 million in training grants and $64 million in infrastructure work to be financed through a tax-increment financing district.

As I recall, people on this site always tell us how other cities didn't have to do these kinds of incentive packages?

Will the 650 Bayer employees stay in Shawnee? Isn't that partly a manufacturing plant too? I hope so, if we lose the WR jobs on top of losing the Sprint HQ that would be a big negative for the region.

I hate to see KC lose out on so many of these HQ moves after being so close. Perhaps metro leaders should get together and turn their attention on the exodus from Silicon Valley. I know a lot of residents of Austin who absolutely do not want any more Silicon Valley transplants. The Austin corridor is becoming extremely expensive and has grown faster than the infrastructure in the area can even come close to handling.

KC needs to reach out to our expats. DropBox founder is from KC and just wrote in KC Star. Why are we not trying to get them?

kboish wrote: ↑Mon Dec 14, 2020 10:28 am KC loses out for eleanco HQ

Elanco bought Bayer animal health which has about 650 employees in Shawnee. They will move their HQ to Indianapolis. They received an incentive package that includes almost $90 million in state tax credits, $4 million in training grants and $64 million in infrastructure work to be financed through a tax-increment financing district.

As I recall, people on this site always tell us how other cities didn't have to do these kinds of incentive packages?

Any sane person knows that isn't true. Houston, Dallas, Denver, Greely, and Chicago are all known for dishing out invectives like crazy. KC just gets bashed because we do it from the same metro rather from other cities.

Highlander wrote: ↑Mon Dec 14, 2020 5:10 pm

kboish wrote: ↑Mon Dec 14, 2020 10:28 am KC loses out for eleanco HQ

Elanco bought Bayer animal health which has about 650 employees in Shawnee. They will move their HQ to Indianapolis. They received an incentive package that includes almost $90 million in state tax credits, $4 million in training grants and $64 million in infrastructure work to be financed through a tax-increment financing district.

As I recall, people on this site always tell us how other cities didn't have to do these kinds of incentive packages?

Will the 650 Bayer employees stay in Shawnee? Isn't that partly a manufacturing plant too? I hope so, if we lose the WR jobs on top of losing the Sprint HQ that would be a big negative for the region.

I hate to see KC lose out on so many of these HQ moves after being so close. Perhaps metro leaders should get together and turn their attention on the exodus from Silicon Valley. I know a lot of residents of Austin who absolutely do not want any more Silicon Valley transplants. The Austin corridor is becoming extremely expensive and has grown faster than the infrastructure in the area can even come close to handling.

Don't forget that AMC is about to implode and Houlihan's already did months ago.

normalthings wrote: ↑Mon Dec 14, 2020 5:21 pm KC needs to reach out to our expats. DropBox founder is from KC and just wrote in KC Star. Why are we not trying to get them?

I just read DropBox is a takeover target. They would fit in well in KC.


https://www.thestreet.com/investing/dro ... peculation

Highlander wrote: ↑Tue Dec 15, 2020 3:37 pm

normalthings wrote: ↑Mon Dec 14, 2020 5:21 pm KC needs to reach out to our expats. DropBox founder is from KC and just wrote in KC Star. Why are we not trying to get them?

I just read DropBox is a takeover target. They would fit in well in KC.

There's two founders.

The person to persuade, the CEO, isn't from KC.

The guy from KC left his executive position in 2016 and is on the board and is the head of products.

Highlander wrote: ↑Thu Apr 09, 2020 4:03 pm https://www.kshb.com/news/local-news/re ... 65isDkYJms

Theater companies had to be having a difficult time with so many home viewing options but CV19 may push some over the edge. AMC was one of the bigger prizes for Kansas in the decades long battle for KCMO companies.

AMC hit an all time high price today. Market Cap is now $28 billion. This price frenzy has allowed the firm to sell additional shares at elevated prices.

normalthings wrote: ↑Thu Jun 03, 2021 12:31 am

Highlander wrote: ↑Thu Apr 09, 2020 4:03 pm https://www.kshb.com/news/local-news/re ... 65isDkYJms

Theater companies had to be having a difficult time with so many home viewing options but CV19 may push some over the edge. AMC was one of the bigger prizes for Kansas in the decades long battle for KCMO companies.

AMC hit an all time high price today. Market Cap is now $28 billion. This price frenzy has allowed the firm to sell additional shares at elevated prices.

AMC sold 8.5 million shares on Tuesday and announced plans to sell another 11.6 million shares today. I think Tuesday’s sale raised around $300 million. Today’s sale raised $600 million.