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City entices firm to settle in Morgan Hill |
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Thursday, 21 September 2006 |
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 The Morgan Hill Times is reporting that the city has made a deal with 247 Workspace that will have them putting down roots right here in town. On the upside, they will be occupying the 42,000 square foot facility on Madrone Parkway, which has stood empty and unused till now. The city is banking on this move bringing jobs and money to the local economy. They are also holding out hope that this move will serve as an example to other businesses who might consider making Morgan Hill their new home.
Any quick search on the internet will generate some good information on 247 Workspace. They have been recognized as one of the best places to work and are known for embracing a very family friendly work environment. Something I think fits in well with what Morgan Hill is all about.
This move also represents an opportunity for 247 to expand its operations from its currently cramped quarters in Los Gatos.
 In order to seal the deal, Morgan Hill had use more carrot than stick. Over the next 10 years the city will be paying back to 247 kickbacks that, as reported by the Morgan Hill Times, could amount to $800,000 in incentive payments over the 10 year period
Was this a good move by the city? Perhaps. It at least has the appearance of long term thinking that has sometimes been lacking. However, there is the huge pile of red ink in the cities current budget to be considered. Giving a company kickbacks to locate here will definately not help that situation. One can only think that the city is counting on whatever they pay out to be offset by the likely benefits to be drawn by having 247 Workspace calling Morgan Hill home.
You have to at least give them credit for taking the chance.
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