eCities Reduce Legwork in Comparing Cost

Corporate site seekers now have yet another way to access key cost-of-doing-business data in markets around the USA via the Internet. The Kosmont Cost of Doing Business Survey tm, published by Kosmont Partners, a Los Angeles-based real estate advisory firm, has been expanded from California-only coverage to include business-cost data in 13 states and the District of Columbia. About 220 cities can be analyzed and compared on a cost basis; local development agencies supply the data.

The online version of the Kosmont survey is a central component of eCitydeals (www.ecitydeals.com), which is a business-to-business Internet company that helps cities improve business transactions with the private sector. As of March, the site was still in a beta test version. Larry J. Kosmont, a Los Angeles businessman active in the local real estate and public service arenas for 25 years, founded the company. Cities that register with eCitydeals can advertise economic and redevelopment opportunities, take advantage of online procurement opportunities for public and private sector business transactions, advertise public works project bids and list city development information in The Kosmont Cost of Doing Business Survey. Approximately 100 cities are in the process of furnishing data for the cost survey beyond the 220 already online.

“We had been publishing the survey for five years in hard copy, and I decided to put it online for the sixth year and to expand it to include national coverage,” says Kosmont, “which makes it more relevant as an online product. Secondly, I wanted to create a public-private transaction portal, which is how eCitydeals came about. It gives cities an aggregated presence on the Internet, so in effect, we can create a vertical market that advantages cities in their dealings with the private sector.”

Kosmont identifies two primary beneficiaries. The public sector can promote development opportunities and leverage their presence on the Internet; negotiate better deals with the private sector, be they procurement or economic development in nature; improve their consultant selection process; and notify capital markets of imminent bond offerings. Private sector users benefit two ways. The first is the accessibility of information on cities relevant to economic development activities and tax information, and the ability to compare city information online. The second benefit pertains to sellers of services. Kosmont says several hundred service firms already take advantage of the eCitydeals portal. Kosmont Partners manages a database of several thousand entities, of which approximately a third are service firms, including architects, engineering firms, land use planners, community relations consultants and many others.

Participating cities can feature local properties on the market and other economic development opportunities in a section of the site called Featured Projects. In mid-March, the five featured projects were two technology parks in California, a shopping center in Schaumberg, Ill., development property in St. Peters, Mo., and a corporate center in Diamond Bar, Calif. The same page includes link to real estate opportunities in other locations.

“We’re looking for ways to feature communities that create a lot of traffic on the Internet for them,” says Kosmont. “We’d like to expand the list from five featured project and replace them at least one a month. It’s a trial and error process for now to see what works.”

Cities that choose to become eCities gain significant exposure from an economic development marketing perspective, assuming traffic builds and corporate location seekers add the site to their Web bookmark list. City profiles include detailed information on business, utility user and property taxes, planning and development impact/exaction fees, special zones, economic incentives and transportation amenities, as well as a cost rating, a hyperlink to the city and business development-related phone numbers. Kosmont plans to expand eCitydeals to include Canadian cities and, eventually, Latin American cities.