Friday, February 4, 2011

Economic Development in South Ogden

In today's Standard Examiner's Business section you will find an article by Scott Schwebke regarding CSN Stores coming to Ogden (See Here).  This is a big deal for Weber County.  CSN Stores is the 3rd largest online retailer surpassing $375 million in sales last year alone.  They will be leasing over 80,000 square feet in in the Business Depot and creating over 260 jobs.  The reason I have brought this article to your attention, is because some of the things Ogden City did to bring CSN here and how South Ogden can learn from this.

First we know work was done with the Governor's Office of Economic Development (GOED) to issue tax incentives to the company.  South Ogden may not be able to do this for every company they want to recruit, but some big companies maybe able to take advantage of this.  But one thing Scott reported on struck me as interesting:
"The city isn't providing any cash incentives to CSN but will offer infrastructure improvements and allowances for office furniture and fixtures, valued at between $50,000 to $100,000.
CSN will be investing $1.5 million in its Ogden facility and will pay more than $2.7 million in state taxes over the next decade, according to GOED. Tax incentives from GOED will be paid as jobs are created."
In exchange for a $50,000 to $100,000 in allowances for furniture CSN is going to invest over $1.5 Million into their Ogden location.  Just that is a 6.6% return on Ogden's investment.  Not to mention the projected $47 million in payroll that will be generated in the first year alone.

This is one idea South Ogden should begin implementing for it's new economic development plans.  As they bring new businesses into the city offer them some allowances and start making some connections with the GOED to see what more we can do.  I would surprised if they Governor's office doesn't have people to even educate our city on how to do this.

It is time to move South Ogden.

Comments always welcome! Who will be the first to chime in with their economic development suggestions?

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