EDC on the hunt in California

An average of 15 to 20 companies move from other states to Colorado Springs every year and 30 percent are from Southern California, said Dave White, executive vice president of marketing for the Colorado Springs Regional Economic Development Corp.

His comments were published this week in an interview that appeared in the Orange County Register blog by Jan Norman.

Norman also said that approximately 60 Southern California companies are currently looking at Colorado Springs for a possible relocation. Among those were Billet Racing Products that moved from Laguna Niguel in September, and Corinthian Colleges in Santa Ana that just opened an enrollment center at the Corporate Ridge Office and Technology Center in Colorado Springs that will employ 600.

White called the assault on California companies by other states as “low hanging fruit” for those assigned to develop their local economies and add jobs.

The comparison White made between the two states made it easy to see why so many businesses have considered relocation to the Pikes Peak region.

  • California’s top income tax is 10.55 percent; Colorado’s is 4.63 percent.
  • California’s top corporate income tax is 8.84 percent; Colorado’s is 4.63 percent based only on sales within Colorado.
  • Colorado’s worker’s compensation insurance costs 25 percent 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 percent to 0.5 percent of real value depending on location; Orange County’s is 1 percent or more.

“My wife and I laugh that the only thing cheaper in California is the citrus,” White said.

Unlike Virginia and Texas, which regularly run television commercials in Southern California, and Nevada, which promotes itself through newspaper ads and billboards, Colorado Springs more often sends direct mail to company owners.

“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,” White said.

One Response to EDC on the hunt in California

  1. David:

    Bring home some business! But leave the citrus there. We’ll get our vitamin C from Rocky Ford cantaloupe and Palisade peaches!

    Ellen
    May 14, 2010 at 11:31 am