< Previous154 JANUARY 2019 SI T E S E L E C T IO NSouth Carolina Dept. of Commerce1201 Main St., #1600Columbia, SC 29201Bobby Hitt IIISECRETARY803-737-0400Legislative Update• Gov. McMaster in March signed a bill reforming the state’s automatic stay proceedings, a measure he and business leaders described as South Carolina businesses from individuals or groups looking to delay construction projects without properly demonstrating legal grounds for doing so. “Businesses moving into our state and creating jobs here want clear expectations and timelines,” said South Carolina Chamber of Commerce President & CEO Ted Pitts. “This legislation provides that clarity while preserving citizens’ rights to challenge government permitting decisions.”• McMaster in February signed into law a bill protecting South Carolina companies from being found a public or private nuisance if they are following all pertinent laws, licensing regulations and local ordinances. “What we’re doing is making the pre-existing common law even more clear to say that as long as a business is following all the rules and has all the permits and documentation that it needs to have, someone who moves near that plant or facility can’t start complaining that it is there doing what it is licensed to do,” McMaster said.sccommerce.com“Out-of-state union bosses have no interest in the future of South Carolina or this remarkable company. Their presence in North Charleston is about as welcome as a Category 5 hurricane.”— Gov. Henry McMaster, May 2018, on the news that the National Labor Relations Board had decided to allow the International Association of Machinists to pursue unionization at the Boeing North Charleston plantGDP26th2017 GDP(in millions of current US$)$199,329.30.00.51.01.52.02.53.03.520172016201520142013Higher Ed. R&D Expenditure: $699,199Number of NCRCs: 439,044 | Percent Improvement 2017-2018: 3.8%Business Tax Climate Rank Change 2018-2019: -3Lowest Electric Power Cost (cents/kWh): 6.20Fiscal Condition Index Rank2018 Workers’ Comp Index Rate: 1.95South CarolinaPop. (2018): 5,108,693 Pop. growth 2018–2023: 1.25%Median household income: $50,748 Median age: 39Credit Rating: AA+/Stable Right-to-work state: Yes S I T E S E L E C T I O N JANUARY 2019 155Washington State Dept. of Commerce2001 Sixth Ave.,Suite 2600Seattle, WA 98121Brian BonlenderDIRECTOR206-256-6100choosewashingtonstate.com“Amazon’s expansion here in Washington state includes advertising for almost 6,800 open positions in and around Seattle HQ and another 2 million square feet of real estate in the Seattle area — bringing their total current footprint to more than 10 million square feet.”— Gov. Jay Inslee, Nov. 13, 2018, in “congratulating” New York City and Northern Virginia on their Amazon HQ2 investmentsLegislative Update• Voters in November rejected a ballot measure that would have made Washington the rst state to institute a carbon fee on fossil-fuel emissions, at the rate of $15 per metric ton, on “large emitters,” ranging from companies that sell gas to consumers to utilities to re neries and natural gas distributors.• As documented by the Cato Institute, most of Gov. Inslee’s proposed tax hikes for the 2017-2019 biennium did not advance in the legislature, but he “did sign into law an increase in the state property tax and online sales tax to raise $1.5 billion annually. He also vetoed legislation to reduce the business and occupation tax rate.”• In is budget for the 2019-2021 biennium, Inslee seeks a new capital gains tax on the sale of stocks, bonds and other assets; an increase in the state business and occupation tax on services; and a change in the state’s real estate excise tax from to a progressive graduated rate that would lower the tax on sales of lower-value properties and increase it for sales of properties valued at $1 million or more. 2017 GDP(in millions of current US$)$480,909.901234520172016201520142013GDP12thHigher Ed. R&D Expenditure: $1,740,919Number of NCRCs: 5,275 | Percent Improvement 2017-2018: 5.9%Business Tax Climate Rank Change 2018-2019: -3Lowest Electric Power Cost (cents/kWh): 4.74Fiscal Condition Index Rank2018 Workers’ Comp Index Rate: 1.87WashingtonPop. (2018): 7,452,102 Pop. growth 2018–2023: 1.30%Median household income: $68,734 Median age: 38Credit Rating: AA+/Stable Right-to-work state: NoAgency of Commerce & Cmty. Dev.Dept. of Economic DevelopmentDeane C. Davis Bldg., 6th Fl.1 National Life Dr.Montpelier, VT 05620Joan GoldsteinCOMMISSIONER802-272-2399Accd.vermont.gov“We must think outside the box to help more Vermonters enter the labor force and attract more working families and young professionals to Vermont. That’s exactly what the Department of Tourism and Marketing did with this program for out-of-state visitors who may be interested in living full-time in Vermont, and I’m excited to see it move forward.”— Gov. Phil Scott, March 2018, on the debut of the Stay-to-Stay initiative, a new economic development tourism programLegislative Update• A new remote worker measure goes into effect January 1, 2019, that offers remote workers relocating to Vermont reimbursement grants of up to $5,000 per year. The program is budgeted for $125,000 in 2019, and double that amount in 2020.• A budget went into effect without Gov. Scott’s signature in June in part because of his opposition to its 4.5-cent hike in non-residential property taxes (despite a state surplus that in mid-year had reached $55 million). Meanwhile, the Working Family Taxpayer Protection Act lowered state income tax rates for all taxpayers.• New legislation allows for the creation of an “af liate reinsurance company” and allows for a more favorable reinsurance alternative for U.S. companies who conduct business offshore and are looking to return to the U.S. after federal tax changes created the Base Erosion Anti-Abuse Tax (BEAT) on reinsurance ceded to offshore af liates. “More than $35 billion previously in offshore jurisdictions will now be looking for a home in the U.S. to avoid this tax,” the state said.2017 GDP(in millions of current US$)$29,566.6-1.5-1.2-0.9-0.6-0.30.00.30.60.91.21.520172016201520142013GDP50thFiscal Condition Index RankHigher Ed. R&D Expenditure: $122,634Number of NCRCs: 2,906 | Percent Improvement 2017-2018: 2.6%Business Tax Climate Rank Change 2018-2019: +1Lowest Electric Power Cost (cents/kWh): 10.592018 Workers’ Comp Index Rate: 2.09VermontPop. (2018): 643,518 Pop. growth 2018–2023: 0.25%Median household income: $57,396 Median age: 43Credit Rating: AA+/Stable Right-to-work state: No156 JANUARY 2019 SI T E S E L E C T IO NTennessee Dept. of Econ. & Cmty. Dev.312 Rosa L. Parks Ave., 11th Fl.Nashville, TN 37243Bob RolfeCOMMISSIONER615-741-1888Legislative Update• Among the details from a budget summary session report from the 110th General Assembly: Economic and Community Development received $133.2 million in additional funding to address infrastructure and job training, rural development and broadband accessibility grants. A bond authorization of $30.7 million is authorized for wastewater improvements at the Memphis Regional Megasite.• Transportation is given authority to use $10 million from the Transportation Equity Fund to address short line railroad repairs, improvements and upgrades in consultation with the Short Line Railroad Alliance. And the Aeronautics Development fund is appropriated $20 million for grants. • Amendments to the appropriation bill include $3 million to enhance the engineering department at Tennessee Technological University in Cookeville.tn.gov/ecd“There’s a lack of skilled tradesmen and women across the state. We started a trade school in my company 10 years ago and put 1,000 people through it. I do want to do that in high schools.”— Gov.-elect Bill Lee, speaking to the Greater Memphis Chamber, Dec. 6, 2018 (source: per NBC affiliate WMC)GDP19th2017 GDP(in millions of current US$)$315,146.70.00.51.01.52.02.53.03.520172016201520142013Did You Know?Tennessee tied for fth place with South Carolina in Site Selection’s November 2018 Business Climate rankings, which incorporated the state’s No. 5 nish in those rankings’ executive survey component.Celebrating its 75th anniversary in 2018, Oak Ridge National Laboratory (ORNL) is “a difference maker in getting companies to locate in Tennessee,” ORNL Director Dr. Thomas Zacharia told Site Selection’s Ron Starner for a Conway Custom Content publication for Knoxville-Oak Ridge | Innovation Valley. “People are amazed at the capabilities we have. Companies don’t have to pay for a standing army of 4,000 of the smartest people on the planet.”More than 919 automotive parts suppliers are located in Tennessee, where the number of automotive employees is 3.3 times the national average.Selected Corporate Facility Projects 2018 NEW/ INVESTMENTCOMPANY CITY COUNTY TYPE EXPANDED PRODUCT (US$ M) EMPFedex Memphis Shelby DW E Transport & Logistics 1,000 Amazon.com Nashville Davidson OF N Electronics 623 5,000Bridgestone Americas Nashville Davidson HQ N Chemicals & Plastics 514 600St. Jude Children’s Research Hospital Memphis Shelby RD N Life Sciences 412 Nokian Tyres Dayton Rhea MF N Chemicals & Plastics 360 400Asurion Nashville Davidson HQ N Business & Fin. Services 288 400Electrolux North America Spring eld Robertson MF E Electronics 250 Denso Corp. Athens McMinn MF E Automotive 190 320Atlasbx Co. Clarksville Montgomery MF N Electronics 75 200Alliancebernstein Nashville Davidson HQ N Business & Financial Services 70 1,000Heraeus Metals Germany GmbH & Co. Kg Wartburg Morgan MF/DW E Waste Mgmt 70 190DT = Data Center | MF = Manufacturing | OF = Of ce | HQ = Headquarters | RD = Research & Development | DW = Distribution/WarehouseTennesseePop. (2018): 6,818,402 Pop. growth 2018–2023: 0.89%Median household income: $49,776 Median age: 39Credit Rating: AAA/Stable Right-to-work state: YesHigher Ed. R&D Expenditure: $1,183,795Number of NCRCs: 122,464 | Percent Improvement 2017-2018: 4.0%Business Tax Climate Rank Change 2018-2019: -2Lowest Electric Power Cost (cents/kWh): 5.85Fiscal Condition Index Rank2018 Workers’ Comp Index Rate: 1.52158 JANUARY 2019 SI T E S E L E C T IO NTexas Economic Development Corporation221 East 11th Street,4th FloorAustin, TX 78701Robert AllenPRESIDENT/CEO512-981-6736Legislative Update• In December remarks in Austin following that city’s winning a new $1-billion corporate campus project from Apple, Gov. Abbott lauded a state business environment “that keeps taxes low, ensures regulations are predictable and kept in check, and minimizes frivolous lawsuits through sensible litigation reform. This session we have an opportunity to do even more by reining in property taxes and reforming our school nance system, further incentivizing businesses and job creators to invest in Texas.”• The state’s regular session occurs in January of odd-numbered years. By noon on the rst day of bill pre- ling in November, more than 400 bills had been led, including one measure to reduce and gradually eliminate the state’s franchise tax, and a measure to do away with daylight savings time.Businessintexas.com“I’ve asked other CEOs who have broken ground on new headquarters and have moved to Texas from other states, why are they doing this? They all say the same thing, which is Texas has a top-notch workforce.”— Gov. Greg Abbott, interviewed by Site Selection Editor in Chief Mark Arend as Texas earned its sixth straight Governor’s Cup, March 2018Higher Ed. R&D Expenditure: $5,495,483Number of NCRCs: 27,046 | Percent Improvement 2017-2018: 13.6%Business Tax Climate Rank Change 2018-2019: -2Lowest Electric Power Cost (cents/kWh): 5.40Fiscal Condition Index Rank2018 Workers’ Comp Index Rate: 1.21GDP2nd2017 GDP(in millions of current US$)$1,615,555.2012345620172016201520142013TexasPop. (2018): 28,954,616 Pop. growth 2018–2023: 1.65%Median household income: $57,286 Median age: 35Credit Rating: AAA/Stable Right-to-work state: YesDid You Know?A 2017 report from NASA said more than $2 billion of Johnson Space Center’s total budget of $4.42 billion is spent on contracts and federal salaries in Texas. Among NASA expenditures in the state: $108 million with small businesses, $18.3 million with universities and $62 million with women-owned rms. The center employs nearly 11,000 combined federal staff and contractors.A report from NAIOP — the National Association of Industrial and Of ce Properties — found that Texas led all states in 2017 in total direct development impact on GDP. The total value of direct construction spending in Texas that year on of ce, industrial, warehouse and retail combined was $24.38 billion, while total output was $58.9 billion. Texas also created and supported the most jobs generated by commercial real estate construction, at 379,781.Site Selection’s November 2018 ranking of U.S. Foreign-Trade Zones (based on an index that tallied performance in merchandise received and exported; numbers of warehouse and production operations; and value of production exports) ranked Zone No. 84 in Harris County (Houston), No. 1; Zone No. 16 in Port Arthur No. 2; and Zone No. 122 in Corpus Christi No. 6.Selected Corporate Facility Projects 2018 NEW/ INVESTMENTCOMPANY CITY COUNTY TYPE EXPANDED PRODUCT (US$ M) EMPBayport Polymers Port Arthur Jefferson MF N Energy 1,700 60Big River Steel Brownsville Cameron MF/DW N Metals 1,600 Apple Austin Travis HQ/RD N IT & Comm. 1,000 5,000Cyrusone Allen Collin DT N IT & Comm. 600 Yara International ASA/BASF Freeport Brazoria MF N Chemicals & Plastics 600 Union Paci c Corp. Hearne Robertson DW E Transport & Logistics 550 Bitmain Technologies Rockdale Milam DT N IT & Comm. 500 400Google Midlothian Ellis DT N IT & Comm. 500 40Novus International/Arkema Delaware Beaumont Jefferson MF E Food & Beverage 400 19Digital Realty Garland Dallas DT E IT & Comm. 400 Innergex Renewable Energy Winkler MF N Electronics 400 Equistar Chemicals Channelview Harris MF N Chemicals & Plastics 356 18American Airlines Group Fort Worth Tarrant HQ N Transport & Logistics 300 DT = Data Center | MF = Manufacturing | OF = Of ce | HQ = Headquarters | RD = Research & Development | DW = Distribution/Warehouse160 JANUARY 2019 SI T E S E L E C T IO NEcon. Dev. Corp. of Utah201 S. Main St., Suite 2150Salt Lake City, UT 84111Theresa FoxleyCEO801-328-8824Legislative Update• In response to the business-backed Our Schools Now ballot initiative to to increase sales and income taxes by a combined $700 million to fund education, a last-minute compromise enacted a ve-year freeze on the statewide property tax rate, and put a non-binding question regarding a 10-cent gas tax hike on the ballot, which voters rejected in November.• A new measure creates the Utah Inland Port Authority, with the goal of establishing such a port and an accompanying U.S. Foreign-Trade Zone near Salt Lake City International Airport.• The Utah Transit Authority has been restructured and renamed the Transit District of Utah, and given more leeway, with administrative approval, to use highway funds for other transit projects.edcutah.org“With all this prosperity, we need to plan strategically to combat the challenges of our own success. The $19-billion budget for Fiscal Year 2020 that I have proposed addresses growth-related challenges and focuses on maintaining and even improving our already high quality of life.”— Gov. Gary Herbert, Dec. 2018Higher Ed. R&D Expenditure: $611,015Number of NCRCs: 4,101 | Percent Improvement 2017-2018: 2.6%Business Tax Climate Rank Change 2018-2019: 0Lowest Electric Power Cost (cents/kWh): 5.90Fiscal Condition Index Rank2018 Workers’ Comp Index Rate: 1.06GDP31st2017 GDP(in millions of current US$)$150,054.90.00.51.01.52.02.53.03.54.04.520172016201520142013UtahPop. (2018): 3,183,796 Pop. growth 2018–2023: 1.73%Median household income: $66,683 Median age: 31Credit Rating: AAA/Stable Right-to-work state: YesDid You Know?The 2018 Economic Report to the Governor from the David Eccles School of Business at the University of Utah and the Governor’s Of ce of Management and Budget found that every major industrial sector expanded in 2017, contributing a total of 43,500 new jobs over the year.Among the report’s other ndings, net inmigration of almost 27,000 in 2017 was the most since 2006 and contributed to 46 percent of the state’s total population growth.The Sundance Film Festival generated $191.6 million in economic activity for the state of Utah and created $100 million in wages for Utahans, according to a report from Y2 Analytics.“Propelled by the enthusiasm of 10-year-old Kenyon Roberts, the Legislature passed a bill to name the Utahraptor as the state’s of cial dinosaur,” the Salt Lake Tribune reported. “To avoid a ght, the Utahraptor does not supplant the Allosaurus, which is Utah’s state fossil.”Selected Corporate Facility Projects 2018 NEW/ INVESTMENTCOMPANY CITY COUNTY TYPE EXPANDED PRODUCT (US$ M) EMPFacebook Eagle Mountain Utah DT N IT & Comm. 750 30L C Bullfrog International Bluffdale Salt Lake HQ E Chemicals & Plastics 20 150Lendingclub Corp. Lehi Utah OF N Business & Financial Services 18 860Essence Global Salt Lake City Salt Lake OF N Business & Financial Services 3.1 125Aligned Energy Salt Lake City Salt Lake OF/MF/DT N IT & Comm. Innovasis Salt Lake City Salt Lake MF/HQ/RD N Life Sciences Kenworth Sales Co. Saint George Washington DW N Automotive 6Pluralsight Draper Salt Lake HQ N IT & Comm. CVB Nibley Cache HQ E Textiles DT = Data Center | MF = Manufacturing | OF = Of ce | HQ = Headquarters | RD = Research & Development | DW = Distribution/Warehouse162 JANUARY 2019 SI T E S E L E C T IO NVirginia Econ. Dept. Partnership901 E. Cary St.Richmond, VA 23219Stephen MoretPRESIDENT/CEO804-545-5600Legislative Update• A new law establishes an income tax modi cation for companies that, from 2018 through 2024, either a) invest at least $5 million in new capital investment in a quali ed locality and create at least 10 jobs paying at least 150 percent of the minimum wage in a quali ed locality or b) create at least 50 jobs paying at least 150 percent of the minimum wage in a quali ed locality. A company is eligible to claim the modi cation only if it had no property or payroll in Virginia on the effective date of the act. The bill also authorizes grants and loans of up to $2,000 per job per year from the Commonwealth’s Development Opportunity Fund to an eligible company.• Launched in June, Build Virginia connects workers with training and employment opportunities in the skilled trades. With an initial focus on the shipbuilding industry, it will ultimately include resources relating to other growing industries such as construction and advanced manufacturing.yesvirginia.org“The Commonwealth’s data center industry is one of the strongest in the nation, and Facebook’s decision to make a second substantial investment in Henrico County less than a year after its rst announcement speaks volumes about the quality of our workforce, IT infrastructure, and business climate.”— Gov. Ralph Northam, September 26, 2018, on Facebook’s decision to invest $750 million near Richmond at the site where the company announced a $1-billion investment in 2017Higher Ed. R&D Expenditure: $1,551,003Number of NCRCs: 19,172 | Percent Improvement 2017-2018: 29.6%Business Tax Climate Rank Change 2018-2019: 0Lowest Electric Power Cost (cents/kWh): 6.83Fiscal Condition Index Rank2018 Workers’ Comp Index Rate: 1.28GDP13th2017 GDP(in millions of current US$)$463,564.3-0.50.00.51.01.52.020172016201520142013VirginiaPop. (2018): 8,566,397 Pop. growth 2018–2023: 0.83%Median household income: $68,682 Median age: 39Credit Rating: AAA/Stable Right-to-work state: YesDid You Know?Even before Amazon announced that Crystal City in Arlington would get half of its two-city HQ2 investment and 25,000 new jobs, the company’s presence in Virginia was substantial: A total of 8,500 Amazon full-time employees work at six ful llment and sort centers, three Prime Now hubs, six solar facilities, several large data centers, and the East Coast campus of Amazon Web Services.In the 20 years U.S. News & World Report has ranked public universities as a separate category, the University of Virginia has ranked in the top three every year. Employing 16,788 faculty and staff and 12,000 health system staff, UVA was found in a 2016 study to have an overall $5.9-billion economic impact on the Commonwealth.According to a 2017 economic impact study, production agriculture employs nearly 54,000 farmers and workers in Virginia and generates approximately $3.8 billion in total output. In addition, value-added industries (those that depend on farm commodities) employ more than 69,000 workers.Selected Corporate Facility Projects 2018 NEW/ INVESTMENTCOMPANY CITY COUNTY TYPE EXPANDED PRODUCT (US$ M) EMPMicron Technology Manassas City of Manassas MF E Electronics 3,000 1,100Amazon.Com Arlington Arlington HQ N Electronics 2,500 25,000Coresite Realty Corp. Reston Fairfax DT N IT & Comm. 500 Cascades Ashland Hanover MF N Paper, Printing & Packaging 275 140Sentinel Data Centers Ashburn Loudoun DT N IT & Comm. 214 Bcause Virginia Beach City of Virginia Beach DT E Business & Financial Services 100 100Pointone Development Corp. Virginia Beach City of Virginia Beach DT N IT & Comm. 80 Aldi Stores City of Petersburg DW/HQ N Food & Beverage 57 120Assured Communications Advisors International Virginia Beach City of Virginia Beach DT N IT & Comm. 52 30DowDupont Richmond City of Richmond MF E Chemicals & Plastics 50 DT = Data Center | MF = Manufacturing | OF = Of ce | HQ = Headquarters | RD = Research & Development | DW = Distribution/WarehouseNext >