Folsom Company Moving To Texas, Citing California Costs, Red Tape
Don't Miss This
- ICE: Local Authorities Have Denied 8,800 Federal Immigration Hold Requests This Year
- Modesto Wants To Crack Down On Residents Parking Cars On Lawns
- Republican Lawmakers Call For Travel Ban From West Africa Amid Ebola Fears
- Taryn Manning Of ‘Orange Is the New Black’ To Headline Grave Digger’s Ball
- Is Former Sacramento Real-Estate Mogul Once Accused Of Secret Recording At It Again?
Get Breaking News First
FOLSOM (CBS13) – It’s official. Folsom-based company Waste Connections is moving out of California and headed to the state of Texas.
The company, which collects solid waste, announced the move Monday morning saying it was relocating its headquarters to The Woodlands in Texas.
Chairman and Chief Executive Officer Ronald J. Mittelstaedt told CBS13 the decision to move was based on two main factors. Although he called California home, he says the company needed to be more centrally located in the country.
“Then the other part of it was the cost of doing business in California. Highest tax rates in the nation. Until recently very expensive real estate. Tremendous regulation and really a broken legislature. Something that’s got a built-in structural deficit that’s not going to improve,” explained Mittelstaedt. “The reality is this is just a very difficult place to do business. It’s a very expensive place to do business.”
The company expects about 130 employees based in Folsom to make the move. It employs about 5,500 nationwide. It’s valued at $3.6 billion and its local impact is estimated at $100 million annually.
The impact goes well beyond the job losses, said Michael Faust of Sacramento Metro Chamber of Commerce.
“It affects from where they pay their power bill, where they eat, shop. … It’s a tremendous loss from them leaving and we’re very dissapointed to see that,” he said.
Mittelstaedt thinks the relocating to Texas will not only be better for the company, but offer more for their employees.
“With the housing collapse that has happened over the last few years, it’s been very difficult for our employees, demoralizing for our employees,” said Mittlestaedt. “Quite honestly we thought there was an opportunity for a new start in Texas. It’s a very robust economy. No state income taxes. Lower cost of housing. Lower overall cost of living. And our ability to recruit and retain people we felt was much higher over the next decade than staying here in California.”
The move will begin before the end of the year and should be completed by September 2012. The company expects the move to cost $15 million.