Kubota's Headquarters Moving from California to Texas

[Bird]

Bird--You are absolutely right. I moved to Denton County(The Colony) in 1975 and it could have been considered rural. On I-35 North you would leave out of Carrollton and drive through open country till you got to the small town of Lewisville. Then it was, again, open country till you got to the (little) Bigger town of Denton.

One of my sons told me that Little Elm is the fastest growing City in the Country. In 1975 it was where you had to go (The "Y") to buy liquor. Somebody tell me where all those people came from.

Charlie

Charlie, I bought a new Fox & Jacobs house in 1972 a block west of Josey Lane in Carrollton, although at the time Josey Lane ended at Trinity Mills. We were there until 1977. I've forgotten exactly when The Colony started, but you know it was just a Fox & Jacobs housing development out there in farm land that they made into a town.

 

[EddieWalker]

A lot of us saw the housing crash coming in CA and got out. At least a dozen of us left the company we worked for to move out of state because we felt that we where close to the peak of what we could get out of our houses and if we waited too long, they would drop in value. I was off a few years, but it also took a few years for the price of the homes to peak, plateau and then crash, so I can't complain. In my opinion, it was driven by the change in law that allowed people to borrow on more then the value of their home and to be able to buy a house with little or no money down. The people who bought my house didn't have a down payment, they where able to get 100% financing. They lasted just a couple of years and then just quit paying the mortgage and then moved out. Others that I know ended up borrowing three times what they originally paid for their homes and just spent the money on stuff, vacations and partying. It was a great way to fuel the economy in the 90's, but eventually it had to end and once their homes dropped in value and they owed half a million more then the house was worth, they just moved out and stopped paying their mortgage.

Eddie

 

[petegoud]

Toyota has been in the news a lot... ever since Nummi plant closed in Fremont with production sent to Texas and Canada...

The West Coast had advantage from Asia for Centuries... now, not so much.

The port strike really did damage from San Diego to Seattle and just one more thing...

A lot of West Coast cities are nearly doubling minimum wage, water shortage, restrictions on expansion, power grid issues, etc...

The Panama Canal is already the busiest in the Americas, with 200 million tons of cargo passing through it every year. Now a $5 billion expansion project is set to double its capacity, giving a new lease of life to this vital transport artery. The canal will soon allow ships over a third of a kilometre long to make the journey between the Pacific and Atlantic Oceans in just 8 hours

Looks like our politics is finally catching up with us out here on the Left Coast!

 

[ultrarunner]

It was crazy the folks that refinanced every 12 to 18 months... new cars, boats, trips and then when prices fell at least half the ones I know simply decided not to pay... they ranged from UPS drivers to a Major League Franchise Lawyer...

Some were actually strategic defaults and bought similar or nicer homes in the their same neighborhoods around 2010-11, moved in and then walked away from their old high mortgages.

One thing that has always struck me as odd is when lenders said we can't talk to you unless your are 3 months late on your payments... so people stopped paying... they may have lived their not paying for a year or more... in the end... they all had to leave.

In the 80's there was a lot of industry that left the cities for the valley... now industry leaves the State.

I missed the market on two homes I sold... made money but left a lot on the table...

One little cottage I bought in 1983 for 15k, spend another 15k... roof, siding, kitchen, floor material... kept it as a rental and sold in 2005 for 255k... It sold again for 350k within the year and then went to Foreclosure and sold for 80k... quite a ride... thing is rents didn't dip.

 

[WM75Guy]

I don't know if it's great news for Texas. To lure Toyota, Texas paid more money than they can ever hope to get back

Not so sure about that. We lived in San Antonio when the plant was being built. It brought in a lot of jobs and money for lots of different business. According to this article a $133 million incentive package between the state and the city has brought in more than $2.7 billion in direct and indirect capital investment, and about 5,700 jobs from Toyota and its suppliers. I would say that $133 million was money well invested.

Toyota changed jobs game in S.A. - San Antonio Express-News

This one talks about what impact the Toyota suppliers have had on the local economy.

Toyota suppliers expanding at S.A. plant - San Antonio Express-News

 

[Bird]

And they just overlook the extra costs?, such as:

Team Toyota members persuaded local school boards, CPS Energy, the San Antonio Water System and other government agencies to approve millions of dollars worth of incentives, such as tax abatements, fee waivers and grants for the automaker. Officials also strong-armed Union Pacific Railroad to reach an agreement with Toyota for dual-access rights to the nearest train tracks at the plant.

And did I miss the part in the news story where they told about the extra costs for infrastructure, streets, police and fire protection, and many other little things such as that?

 

[varmint]

And as Bird noted, the costs associated with these great new plants include lots of infrastructure, and schools as well. Not to mention increased traffic, pollution and crime. North Dakota has had its share of trouble with the rapid increase in employment- and those who don't have jobs in the energy field struggled to get by with the lower wages traditionally paid. Gonna be lots of cheap, empty mobile homes for sale up there now that the boom has busted.

 

[WM75Guy]

There are challenges and benefits associated with development. As Fire Marshal I was assigned as interim Director of Community Development before I retired from the Fire department every time the director quit so I have a fair idea of how it works. Tax incentives are approved by elected officials which you and I elect. Land is annexed and plats approved by elected officials such as city councils, school boards, and state officials. That's where citizens need to voice their concerns. But people that did show up and voice concerns about increased crime, lower property values, and such usually never had anything to substantiate their claims. There was lots of evidence from organizations like the Texas Municipal League and such that showed the value and return on investment for incentives.

Cities cannot pay police officers and firefighters well if it weren't for development. Residential homes and farmland with ag exemption doesn't pay much in taxes. The real money comes from commercial and industrial property taxes and sales tax revenues. All the special taxing districts like crime prevention districts also help out the General Fund by shifting costs to a dedicated revenue stream. Again you have to have a significant tax base for those to work.

While some development cost is born by local government the majority is paid by the developer. Water lines, sewer lines, drainage, and streets are put in new subdivisions by the developer. Impact fees are paid to improve the city services every time you connect to water and sewer service. Additional sales taxes are collected from the retail sales that pop up around new population centers. A new Sam's Club alone generates over $1 million a year in sales tax.

Cities are required to provide the same level of public service to newly annexed areas which is considered by the development department and the council before annexation. Cities float bonds all the time to improve police and fire services and streets, some are approved by voters, some are not such as certificates of obligation. School districts issue bonds for new schools that are partially paid for by the additional property tax collected from newly developed developed areas.

 

[TomSeller]

I am not an urban growth supporter. I know it has happen, but I don't want it in my backyard. Good for Texas if that is what they want.

 

[ultrarunner]

Not so sure about that. We lived in San Antonio when the plant was being built. It brought in a lot of jobs and money for lots of different business. According to this article a $133 million incentive package between the state and the city has brought in more than $2.7 billion in direct and indirect capital investment, and about 5,700 jobs from Toyota and its suppliers. I would say that $133 million was money well invested.

Toyota changed jobs game in S.A. - San Antonio Express-News

This one talks about what impact the Toyota suppliers have had on the local economy.

Toyota suppliers expanding at S.A. plant - San Antonio Express-News

California's loss is Texas's gain...

They said 5,000 plant jobs and up to 10,000 ancillary in support were lost with the plant moving... everything from a coiled steel plant to small injection moulding
companies plus the jobs move the many thousands of vehicles produced each month...

Even 10 years ago NUMMI was in the spotlight with so many businesses leaving/closing...

http://www.autonews.com/article/19940808/ANA/408080741/job-pressed-calif.-cuts-nummi-some-slack

Union members fight NUMMI plant closing | UAW