They call it “intra-regional job piracy” — when one town uses tax breaks to lure employers from neighboring towns.
Job piracy is very common in regions across the United States. And it almost always results in employers moving farther from the central city. As the D.C.-based think tank Good Jobs First has shown [PDF], this job sprawl generates traffic, reduces the effectiveness of transit, inflates infrastructure costs, and impedes access to opportunity for low-income people.
Many metro areas have also grappled with how to solve this problem, and some are performing better than others. A new report from Good Jobs First [PDF] highlights how some regions have wrestled this problem under control, while others continue to let it run rampant.
Here’s a look at the best and worst approaches examined by Good Jobs First, starting with the success stories.
Greater Denver is a model of regional cooperation, and it’s paying off for the economy, Good Jobs First reports.
Business recruitment in greater Denver is handled by a regional economic development corporation representing 70 cities, counties, and economic development groups dedicated to promoting the region as a “single economic entity.” All members of the Metro Denver Economic Development Corporation sign an ethics agreement, stressing the principles of transparency, cooperation, and respect. The ethics guide is designed to ensure member entities are promoting the wellbeing of the region first, ahead of their own self-interest.