By Doug Moormann:
Development Strategies Group recently worked with Divisions Maintenance Group (DMG) on locating a new headquarters for its expanding operations. The fast-growing company expects to create 256 full-time positions, generating $25.6 million in new annual payroll and retaining $19.1 in existing payroll. Both sides of the river presented attractive sites and access to the talent needed by the company to help fuel its growth. The cities of Cincinnati and Newport competed alongside their respective counterparts at JobsOhio and the Kentucky Cabinet for Economic Development to attract the DMG headquarters project.
I worked with economic development professionals on both sides of the river to negotiate and create compelling incentive offers featuring real value to the company. The value of the offers was nearly the same.
Like many location decisions – this came down to place: a place where DMG determined it could reach its ambitious goal of becoming a billion-dollar business.
As a newly renovated office building in the heart of not only the region, but also Cincinnati’s central business district, 3CDC’s The Foundry offered a desirable location for office workers. It also provides the company with unmatched visibility because of its location across from Fountain Square. The proximity to public transportation was another factor in this decision-making process.
The combination of access to talent, nearby amenities, a new, open office environment, a competitive business proposition and a high visibility location were a winning combination for Cincinnati. In addition, DMG received a 2.102 percent, 10-year Job Creation Tax Credit from the Ohio Tax Credit Authority.
There is always some heartburn when a company relocates from one side of the river to the other. In this case, an important fact to bear in mind is that DMG determined that it CAN access and attract the innovative IT workers and others it will need to reach is growth plans right here is our region.
DMG did not see a need to leave the region and find talent. It didn’t leave to find a more favorable tax structure and it didn’t leave because of concerns about business environment. It IS all about the place – we are blessed to have a pretty darn good one!
Doug Moormann is Vice President of Development Strategies Group, a full service economic development consulting firm.
