”
Red Phone, I recently heard on the radio that Netflix is having
a hard time coming to an agreement with the Town of Los Gatos to
expand their operations. It sure would be nice if we could get them
here.
”
“Red Phone, I recently heard on the radio that Netflix is having a hard time coming to an agreement with the Town of Los Gatos to expand their operations. It sure would be nice if we could get them here. Is the city doing anything to lure them here? I heard they bring in about $3 million a year in tax revenue. That would go a long way to solving some of our budget issues. Thanks.”
Red Phone: Dear Problem Solver, Red Phone contacted Assistant City Manager for Community Development Leslie Little, who said Netflix is seeking to expand their operation, not relocate their entire facility.
“They are working through the Los Gatos community process that allows for input from residents and property owners regarding land use proposals,” she said. “The city of Los Gatos elected officials and their staff have publicly committed to assisting Netflix to expand in their community. As a result, Morgan Hill would not interfere with a local decision and attempt to woo a company within our own employment region, away from their home. We would expect Los Gatos would do the same regarding someone in Morgan Hill who was working through our Planning Commission and City Council approval process, and sorting through community issues. Had Netflix, given any hints that they would consider anything other than to expand near their existing campus or that relocation was an option, that would be a different case. We are watching carefully, and if they can’t get their needs met, we will certainly put Morgan Hill in play. Years ago, cities within the same regions learned that it was not productive to try to lure from within the same region, because that is a zero sum game. Cities, hurting for revenue, would often target big tax producers and steal them from their neighbors. It resulted in companies changing locations several times, and cities being pitted against each other by business. State laws have subsequently been adopted to halt the use of city resources to facilitate those moves.
“While Morgan Hill is the perfect community to support Netflix, and has plenty of wonderful buildings and land that would love to be their home, under these specific circumstances, they are not a target.”
Well good caller, there’s your answer.
