HolyCoast: Why California Companies Are Moving to Colorado Springs

Of course, California companies are heading anywhere they can outside of California, but Colorado Springs has been picking up their fare share. A column in today's OC Register gives some reasons why:

Approximately 60 Southern California companies are currently looking at Colorado Springs for a possible relocation, he added.
A couple of the most recent California catches are Billet Racing Products that moved from Laguna Niguel in September, and Corinthian Colleges in Santa Ana that just opened an enrollment center in Colorado Springs that will employ 600.
I called White because my recent update of California companies leaving the Golden State included half a dozen that landed in Colorado Springs. Commenters demanded to know why, and rightly so.
It was a softball question that White teed it up and crushed it.
“Every state in America is focusing on California,” he said. “It’s low hanging fruit” for those assigned to develop their local economies and add jobs.
Remember, he promotes Colorado Springs for a living but, he’s a Southern California transplant and professes to love California and Disneyland. But business is business.
Here are some of his favorite selling points for California firms to move to Colorado Springs :

“We also have asked private entities to provide incentives,” he added. “A country club might waive the membership fee, or the health clubs might give six months free membership. We have a pass to various tourist sights. We don’t have the beaches but we do have Pikes Peak.”
And when business executives come to check out the town, the governor, mayor and civic and business leaders show up to greet them, White added.
Does Arnold do that?

California’s top income tax is 10.55%; Colorado’s is 4.63%

California’s top corporate income tax is 8.84%; Colorado’s is 4.63% based only on sales within Colorado

Colorado’s worker’s compensation insurance costs 25% what California businesses pay

Colorado Spring Utilities’ electricity rate is 4.5 cents per kilowatt hour; Southern California Edison’s is 10 cents

Colorado Spring’s property tax rate is 0.4% to 0.5% of real value depending on location; Orange County’s is 1% (or more for Mello Roos fees, for example)

“My wife and I laugh that the only thing cheaper in California is the citrus,” White said.
Colorado Springs comes looking for companies to lure away from the beaches and sun and Disneyland, he admitted.
“We do have a campaign. We think Colorado Springs is a good match for companies seeking to relocate. We can’t compete with southern states that throw millions of dollars in incentives and tax breaks at big projects. Our sweet spot is small to mid-sized companies where the owner moves with the company. They’re driven as much by lifestyle as by incentives.”
And the city is getting ready for another California campaign, but White wouldn’t disclose details. (Nevada is preparing another campaign too, but that’s another story.)
Unlike Virginia and Texas, which have been running television commercials in Southern California, and Nevada, which regularly runs newspaper ads and billboards, Colorado Springs tends to send direct mail to company owners.
“They did fly a plane over Los Angeles on Valentine’s Day pulling a banner that said ‘Colorado Loves LA,’ but that was Metro Denver and the state, not us,” White said.
Colorado does offer incentives to relocating companies, but they don’t receive them until they create new jobs, White said. For example:

The state and city may give as much as $5,000 per job plus tax credits.

The city might rebate the property tax up to $800 per job.

The legislature just passed an additional $2,500 per job credit against the corporate income tax.