In mid-August, Albemarle Corp. confirmed what had been rumored for months: It was relocating its corporate headquarters from Baton Rouge to Charlotte, North Carolina, where the company promised to create 120 new jobs and invest $12.9 million by the end of 2016.
The announcement came as a blow to leaders at Louisiana Economic Development and the Baton Rouge Area Chamber, who had worked closely together all summer to come up with an incentive package to keep the company here. The deal they had crafted was remarkable, both in its size and scope.
As Business Report details in its new cover story, “Executive Flight,” the deal included:
- $6 million in incentives to an airline that would add nonstop flights from Baton Rouge to Houston and New York.
- $950,000 in landing fees and rent waivers, as well as marketing assistance to promote the new flight service.
- $6.7 million in education incentives to support the development of new public school options—charter schools, presumably—that would guarantee reserved spots for children of Albemarle employees. The money could also have been used in the short run to supplement private school tuitions.
“It was one of the most unique and creative packages LED and BRAC has ever put together,” BRAC President and CEO Adam Knapp says of the deal, which would have required Albemarle to grow its corporate presence by 35 employees and stay in Baton Rouge until 2027. “It would have benefited the community, not just the company.”
By comparison, North Carolina offered Albemarle a Job Development Investment Grant equal to 22% of the state personal income tax withholdings from the eligible new jobs Albemarle promised to create. The deal, at most, would amount to $2 million over a 12-year period.
On paper, the two packages weren’t even close. Albemarle took the North Carolina deal anyway.
The company’s decision says a lot about what it takes to attract and retain corporate headquarters. Clearly, it’s about more than incentive packages—even when those packages, like the one offered to Albemarle, are tailored to fit the specific needs of a prized company.
You could argue the Albemarle case is atypical. The company recently made a $6.2 billion acquisition of another business, New Jersey-based Rockwood Holdings, and perhaps moving to Charlotte simply made more strategic sense. But the Albemarle case is not isolated. Other companies have also pulled corporate executives out of Baton Rouge recently.
Just a month before Albemarle announced its decision to leave, home health care company Amedisys announced plans to open a satellite office in Nashville, Tennessee, where nearly its entire executive team will relocate. Though the corporate offices will technically remain in Baton Rouge, the company’s brain trust will be 600 miles away.
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