State and Local Incentive Negotiations a Very Specialized Field

Without specialized representation, most companies seek and receive only 10-15 percent of state and local financial incentives available.  While some corporate executives indicate they are not interested in incentives because of the associated politics, what is the cost to their bottom line?  Perhaps tens of millions of dollars!  If professionally handled, depending on the types of jobs, the state and community selected, incentives typically range from $25,000 to $100,000 per job.

Skills and Experience

Pollina Corporate has gained a reputation as a world leader in the very specialized field of Incentive Negotiations. Our negotiations have represented more than one third of the total capital investment for a particular project. We have used our expertise to help major corporations such as 3Com, Bosch, Caterpillar, and Grainger negotiate state and local incentive packages.  While we have worked on very large projects the majority of projects range from 75 – 400 employees including both industrial and office.

It’s Complicated

Incentives take a variety of forms including  property tax abatements, corporate tax reductions, payroll tax reductions, subsidized job training, free or low-cost property (land and buildings), publicly financed infrastructure (e.g., sewer and water, turn lanes, stoplights), low interest or forgivable loans, and cash grants.

The most complex part of incentive negotiations are the details of incentives offered. Formulas for calculating the incentives and restrictions on them can make an incentive that sounds very attractive of little or no value.  Program applications, or fine print of criteria for eligibility, can be so overwhelming that companies give up in frustration or find that they do not qualify for programs.  Pollina Corporate’s expertise in this area will prove extremely valuable in assessing each incentive’s true value.

Pollina Corporate has over 30 years of experience negotiating with political and economic development leaders throughout the U.S. and abroad.

Core Business

For Pollina Corporate, incentive negotiations is one of four core businesses not simply an ancillary service provided to capture brokerage business.  Of course, you can have your accounting firm handle incentives if you want to focus on tax incentives only.  You could also use a national brokerage firm that claims they will take care of incentives for you.  In their rush to collect their commission, how many millions will be left on the table?

We have specialized in-depth experience and a verifiable track record to back it up. Don’t take our word for it.  Every year we publish the Pollina Corporate Top 10 Pro-Business States study. The study evaluates and ranks states based on over 30 factors, and is the only study of its kind that also examines economic incentive programs.  Google Pollina Top 10 Pro-Business and see why the press and state governments say we are the “Gold Standard” when it comes to evaluating states and their incentives.

Only Pollina Corporate has:

• First-hand, personal relationships with governors, secretaries of commerce, and state and local economic development agents.
• A specially trained team of economists, analysts, consultants, and attorneys.
• Over 30 years’ experience to determine states and communities that will offer the best incentives to meet your corporate needs.

Procedure

Using a specially trained team of economists, consultants, and attorneys, Pollina Corporate will:

• Complete a comprehensive client Needs Analysis
• Prepare and submit Requests for Incentive Offers (RIO).
• Negotiations with officials from alternative locations in order to increase leverage against preferred communities.
• Prepare an evaluation of the value of incentives (True Value Evaluation) offered.
• Complete negotiations of incentives including applications for statutory programs.
• Develop written agreements (Development Agreement) to assure that all negotiated incentives offered will be provided.

Pollina Corporate Top 10 Pro-Business States Annual Study

Selling Out a Superpower by Ronald R. Pollina PhD.