Modesto Offers Incentives to New Businesses
What’s the best way for a city to attract business? Fancy social media campaigns? Star-studded media efforts? Promises of specialized downtown events?
What about offering plain old cash?
The City of Modesto is considering the latter in its latest effort to encourage businesses to open in their downtown district. The idea is a collaborative effort between the City, Chamber of Commerce, and Downtown Improvement District. With a 16% vacancy rate, they decided to get creative.
In Modesto, if all goes to plan, a company that brings in zero to five jobs would receive $1,000; a company that brings in five to ten gets $2,000; and all others get $2,500.
Modesto is following in Turlock’s footsteps. After Turlock launched its successful program (which offered new businesses a flat $1,000 cash incentive), the city’s occupancy rates declined.
In addition to the basic cash incentive, Modesto is also offering matching funds for businesses who spiff up their exteriors and is exploring a mill tax refund.
For more, read here.