Economic development incentives can play a vital role in deciding if a company decides to proceed with a major investment. However, many companies do not understand the ins and outs of a multi-state incentives negotiation. This blog aims to help companies navigate the process and secure the best deal possible.
The success of websites can be attributed to their ability to provide a good overview of the various incentives available. However, when it comes to pursuing incentives involving multiple figures, it is not enough to just provide a good enough “probably” rating. Instead, government agencies should regularly update their websites to ensure that they are accurate.
Due to the complexity of the incentives, it is not always possible for economic development professionals to manage the process. Therefore, it is important to read the law and not rely on a website description to make an informed decision.
Journalists will frequently contact various sources regarding a potential project. Having a clear communication plan is also important to ensure that the project is on track. This can help minimize miscommunications and prevent potential issues from arising. In some cases, a communication plan can additionally include the contact information of the project’s spokesperson.
Although it is easier to work with some states, economic development officials still try to identify the most effective ways to improve the efficiency of their programs. For instance, if the community is planning on major infrastructure improvements, they can reduce the number of incentives that they offer.
Although form agreements are commonly used by government agencies, they can also be modified. This is because they can help them improve the efficiency of their programs and provide consistency. However, most of the time, the standard language in these agreements is only partially influenced by administrative and statutory requirements. Sometimes, a company can provide a strong argument for deviating from the agreement. In most cases, the government agency will agree to the modifications.
When presenting a compelling argument, government agencies should not only follow a form that is consistent with their goals, but they should also provide a clear message about their partner’s type of commitment.