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Putting Economic Development Incentives to Work for Business
Alert
October 1, 2009

A lucrative package of tax and other incentives offered by state and local governments made it easy for a multinational manufacturer to decide where to build its new manufacturing facility. The glow of the incentives began to dim, however, as company executives grappled with how to take advantage of the incentives while keeping to a tight construction schedule. The numerous departments of state and local governments providing the incentives each had separate applications, program requirements and timelines. Just knowing whom to contact was in itself a challenge. Many incentives would be lost if specific program requirements were not met in a timely manner, and obtaining some of the incentives appeared to require a delay in the start of construction.

Baker Donelson attorneys stepped in to provide a roadmap through the incentive process for the manufacturer. Within days of learning about the company's decision to build its new facility, the attorneys traveled to the company's North American headquarters to meet with executives and learn about the plans and business objectives for the new facility. Baker Donelson attorneys also traveled to one of the company's similar manufacturing facilities in another city to learn firsthand about the operations of the facility. With this knowledge, the Baker Donelson team evaluated the incentive package to ensure that all available incentives had been offered and determined that the company was eligible for substantially more. Working with the company, the firm developed a timeline for applying for and implementing the incentives that closely matched the company's initial construction deadlines. Finally, Baker Donelson used its extensive knowledge of the workings of the state and local governments to expedite the process of negotiating and documenting the incentives.

In the end, what initially appeared to be a probable delay of several months was pared down to less than one month. The offered incentives increased, and even more significant, additional incentives were obtained. The company was quickly able to refocus its energy on breaking ground on its new manufacturing facility.

For more information, contact any of the Baker Donelson attorneys listed below.

Birmingham, Alabama
Gary S. Schiff 205.250.8309

Atlanta, Georgia
Richard A. Walker 404.223.2209

New Orleans, Louisiana
William N. Norton 504.566.5297

Jackson, Mississippi
William S. Mendenhall 601.969.4647

Chattanooga, Tennessee
Louann P. Smith 423.209.4216

Memphis, Tennessee
Desiree M. Franklin 901.577.2183

Nashville, Tennessee
Nancy A. Vincent 615.726.7367

Tri-Cities Tennessee/Virginia
Robert D. Van de Vuurst 423.928.0181

Washington, D.C.
Doreen M. Edelman 202.508.3460