Originally Posted by Caveat Emperor
Trouble with that logic is that it seems to me that the trend is that most companies now are fleeing the big cities and setting up shop in the suburbs, where they can have greater flexibility and pay less money in rent.
That's been a huge problem for the inner core of cities across the country for the last 15 years or so. Some cities are fighting back with huge tax breaks and abatements for companies that either move back downtown or stay there in lieu of moving elsewhere. Columbus is doing that, and New York City has really been pushing that strategy (the Goldman Sachs headquarters in lower Manhattan being but one example). I have serious mixed feelings about such programs--I fully understand the importance of having a vibrant, viable central core (and the resultant benefits it typically provides throughout the city), but luring businesses downtown through the use of exhorbitant tax abatements seems akin to robbing Peter to pay Paul. I suppose the hope is that the presence of several large employers in the central business district encourages others to follow suit sans enticements--but its far too premature to label such strategies as long term successes.