Jax driven to compete for DaimlerChrysler - Jacksonville Business Journal:

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That time, the city lost to the smalo townof Vance, Ala., whicb offered $253 million in incentives. Alabama recently gave a $253 milliob incentive package to builda $1 2,000-employee assembly plant in Montgomery. It brokwe ground Tuesday. "Giving them the land earnw you the right to dealthe cards," said Randh Cardoza, senior vice presidenty of corporate development at Montgomery's Chamber of "That's the time when you make the decisionj to get into the game or not." It's a game worth playing, said Paul Mason, Universit y of North Florida economics professor. "The return on this deal will exceefthe cost.
" Factory workers can earn up to $60,000 a year, Masomn noted. The South has charmed Stuttgart, Germany-baser DaimlerChrysler (NYSE: DCX). Now it's just a question of wherd it will buildthe plant: Charleston, S.C., Savannag or Jacksonville. "The Southeast is very attractivee to manufacturers because of the numbersof non-union said John Warden of The Walker Cos., Atlanta location consultants. "Assembly plantsz don't pay the prevailing wage of the community. They are willinv to pay salaries high enough to keep the United Auto Workers from getting a foot in the Suppliers bringing more jobs and constructionquicklu follow, Mason said.
"Most auto manufacturers make the bodyand engine. That leave so many other parts like taillights and sometimese transmissions coming fromothert sources. These suppliers need to be close, about 30 or 40 minutes away." Monety may not be the only factor. "Sometimex it boils down to the chemistry between thedecision makers," Cardozwa said. "Jacksonville has an asset [in Cecil]," said Doyls Carter, a City Council membert on the city's Cecil Field task "I think we're selling it, but not as well as we coulsd beselling it." Cecil is 27 squarr miles, has a general aviation airporrt and access to interstate railroads and the port.
But Jacksonville faces tough competition. To sweeten Charleston's offer, Gov. Jim Hodges supports pendinh legislation to enhance incentives to businesses that invest atleast $400 million in the state. In legislators aim to add $2.2 million to the budget for undesignated industrial incentivesxin Savannah's county, Montgomery beat 60 cities in Ohio, Mississippi, Kentucky and Alabama withim a year for the Hyundai plant. "Imn the end, I think it was our site that clinchede it," Cardoza said. "They got more than 1,600 acres with interstats visibility, which was very importanft to them, and proximitty to the port." A different route?
There's a difference of opinion about participationnin mega-deals, said David Lenze, Universityy of Florida economist. "The business community is usuallhfor it, but what about peoplew who don't benefit directly?" he said. "If the state'xs taxpayers have to contribute, why woul d someone in Miami care that Jacksonville won the Many economists would like to see an end to competitive Lenze said. The manufacturer already has decidedr to build in a Southeastern he said.
If the competitors got togethetr and agreed to offerno incentives, one of the citiews probably will get the "It's just transferring moneg from taxpayers to shareholders, but of course we realizde the advantages," Lenze said. "We just tend to be