{"id":46,"date":"2006-01-25T06:54:00","date_gmt":"2006-01-25T13:54:00","guid":{"rendered":"http:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/?p=46"},"modified":"2006-01-25T06:54:00","modified_gmt":"2006-01-25T13:54:00","slug":"corporate-welfare-in-glendale","status":"publish","type":"post","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/46\/corporate-welfare-in-glendale\/","title":{"rendered":"Corporate welfare in Glendale"},"content":{"rendered":"

From the Republic<\/a>:<\/p>\n

The AAA travel and financial services club will locate up to 1,100 new jobs over the next three years in Glendale as it creates a regional customer service and information technology center in the West Valley.<\/p>\n

Roughly 500 of the jobs are considered “high-wage” positions, paying more than $75,000 a year, said Barry Broome, chief executive of Greater Phoenix Economic Council, which helped broker the deal. Up to half of the jobs would be call-center positions that would pay less than Maricopa County’s median household income of $46,111.<\/p>\n

When fully staffed, the facility will employ up to 1,400, according to AAA, and will be one of the city’s largest employers.<\/p><\/blockquote>\n

Sounds like good news, doesn’t it? Not quite…<\/p>\n

City Council members will hold a special meeting Thursday to discuss, and likely accept, the 10-year incentive package the city is offering AAA. Glendale is offering to:<\/p>\n

&bul; Give AAA $1,200 for every job the company creates that pays more than $50,000.<\/p>\n

&bul; Reimburse the company up to $750,000 for facility rehabilitation and waive permit fees up to $49,700.<\/p><\/blockquote>\n

That $1,200 subsidy per job doesn’t sound like much, but about 700 of the jobs will qualify for it. That’s $840,000 of the taxpayers’ money to buy these jobs. Given that it’s a “10-year incentive package”, I’m wondering if it’s $840,000 per year. Throw in another three-quarters of a million for redecorating and some miscellaneous regulatory relief, and the owners of AAA – a profit-making enterprise – brought home quite a score.<\/p>\n

“But, but, but!,” the City of Glendale and the Greater Phoenix Economic Council will exposulate:<\/p>\n

The project is expected to pump $42 million into Glendale’s economy over 10 years.<\/p><\/blockquote>\n

As always, it’s the seen and the unseen. Whether the total price tag is $1.6 million or $9.1 million, it remains that the City of Glendale is going out of pocket to buy jobs. Certainly those jobs have an economic benefit, but we can never know what economic benefits are lost by robbing a profit-producing Peter to pay corporate welfare to a profit-devouring Paul. All we can know is that what might have happened will not.<\/p>\n

Here’s a simple lens for distinguishing Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

From the Republic: The AAA travel and financial services club will locate up to 1,100 new jobs over the next three years in Glendale as it creates a regional customer service and information technology center in the West Valley. Roughly 500 of the jobs are considered “high-wage” positions, paying more than $75,000 a year, said […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_crdt_document":"","jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[2],"tags":[],"class_list":{"0":"post-46","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"hentry","6":"category-general","8":"no-featured-image"},"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":18,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/18\/here-come-the-condo-conversions\/","url_meta":{"origin":46,"position":0},"title":"Here come the condo conversions…","author":"Odysseus","date":"December 2, 2005","format":false,"excerpt":"The West Valley sections of the Arizona Republic ran this story on the expected surge in apartment-to-condominium conversions on the same day they ran my column predicting just that outcome. They said:Condominium conversions are happening all over the Valley, with new projects in Glendale, Phoenix, Chandler and Scottsdale. Real-estate brokerage\u2026","rel":"","context":"In "General"","block_context":{"text":"General","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/general\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":2229,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/2229\/what-really-caused-the-lender-meltdown-and-other-important-stuff\/","url_meta":{"origin":46,"position":1},"title":"What REALLY Caused the Lender Meltdown and Other Important Stuff","author":"Russell Shaw","date":"November 15, 2007","format":false,"excerpt":"The Wall Street high finance folks who contrived a system to endlessly send money to lenders and reward them for making fraudulent loans got what they rewarded. Here are a few Letters to the Editor from Businessweek: The Heat On Angelo Mozilo Maria Bartiromo's interview of Angelo Mozilo (\"The heat\u2026","rel":"","context":"In "Realty Reality"","block_context":{"text":"Realty Reality","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/realty-reality\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":1064,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/1064\/hoas-dont-deserve-hate-they-have-a-purpose\/","url_meta":{"origin":46,"position":2},"title":"HOAs don’t deserve hate; they have a purpose","author":"Greg Swann","date":"February 23, 2007","format":false,"excerpt":"This is me from this morning's Arizona Republic (permanent link): \u00a0HOAs don't deserve hate; they have a purpose One of the ironies of our gilded age is that the free-market system, which provides a vast abundance of goods and services ever more cheaply and of ever better quality, is all\u2026","rel":"","context":"In "Marketing"","block_context":{"text":"Marketing","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/marketing\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":9105,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/9105\/private-ownership-of-the-land-is-the-source-not-just-of-our-freedom-but-of-our-civility-and-of-our-humanity-itself\/","url_meta":{"origin":46,"position":3},"title":"Private ownership of the land is the source not just of our freedom but of our civility and of our humanity itself","author":"Greg Swann","date":"July 4, 2011","format":false,"excerpt":"Kicking this back to the top. Happy Independence Day! -- GSS \u00a0This from my Arizona Republic real estate column (permanent link): The \"cap and trade\" bill that passed in the House of Representatives last week contains within it the seeds of a national building code. It rarely rains in Phoenix\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":14866,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/14866\/could-mortgage-rates-drop-after-a-treasuries-credit-ratings-downgrade\/","url_meta":{"origin":46,"position":4},"title":"Could Mortgage Rates DROP after a Treasuries’ credit ratings downgrade?","author":"Brian Brady","date":"July 29, 2011","format":false,"excerpt":"The dictated debt limit deadline looms and a credit rating downgrade, to US Treasury securities and agency mortgage-backed securities, seems likely.\u00a0 Naturally, a spike in treasury yields is expected and a subsequent rise in mortgage rates should follow. \u00a0 That's right out of the senior year textbook, in most American\u2026","rel":"","context":"In "Big Mother"","block_context":{"text":"Big Mother","link":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/category\/big-mother\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":344,"url":"https:\/\/www.bloodhoundrealty.com\/BloodhoundBlog\/344\/why-are-we-building-an-asu-campus-in-downtown-phoenix\/","url_meta":{"origin":46,"position":5},"title":"Why are we building an ASU campus in Downtown Phoenix . . . ?","author":"Greg Swann","date":"September 17, 2006","format":false,"excerpt":"In an involuntary spasm of honesty, the Arizona Republic admits the truth:The journalism school is considered the most crucial component of the new campus' second phase, in part because it boasts an enrollment of nearly 1,800 students. 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