Q: Why is it necessary for McAllen to be competing to attract large businesses?
A: Attracting businesses has become more and more competitive over the past decade. Often, highly sought-after businesses will choose to expand into an area (such as the Upper Valley), and seek competition among cities for the best “deal”. When the City of McAllen loses such a deal, it is often because the incentive desired by the company does not meet the Return on Investment requirements of McAllen.
Q: Why does McAllen participate in the financial incentives that it does?
A: Whether through Citizen Surveys, shopper Intercept Surveys or Retail Consultants, McAllen has a mix of desired businesses that are “new to market”, help sustain the City’s reputation as a retail mecca – which has “paid for” many Quality-of-Life improvements over the last 30+ years. Yet, even after understanding the importance of targeted business development, each Incentive Package the City considers must still provide a good “Return on Investment” for our taxpayers, with the ultimate goal of generating high-paying jobs or strong sales taxes.
Q: Could the City succeed WITHOUT incentives?
A: YES, the City would continue to operate as it does, but over time property taxes would need to carry a larger burden for the high Quality of Life services which our citizens view as “important” according to surveys.
Q: How does the City know what Citizens think or want?
A: Every 3 years, the City conducts a Citizens Survey. The most recent Survey was conducted by one of the best firms in the Nation and has a high degree of accuracy, given the numerous survey responses they received. Additionally, we conduct “Intercept Surveys” of visitors and shoppers from other areas and neighboring cities.