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.

Comments (49)
  1. nothingchanges says:

    The dome in Sacramento is brain dead, California is a state of entitlements for takers and does not believe in incentives for the job creators. Good luck California you are dying a slow death, Good luck !

    1. Pual says:

      Why doesn’t it surprise me that conservatives defend criminal corporations..

      Interestingly enough what this story conveniently forgets to tell you is that this company has been fined numerous times for breaking laws regarding illegal dumping and that they are facing losing most of their contracts here in california..

      They aren’t leaving California because of high taxes or any of the other bogus reasons they stated. The fact is they are leaving because they are about to lose all their California contracts. This is a criminal corporation that has seriously jeopardises our health and safety by constantly breaking laws. They have proven that they are a criminal corporation that will feel right at home in Texas.

      As a side note. I’ve had to sue this company several times to recover property damage costs incurred when their drivers damaged two of our vehicles and a fence. This didn’t happen only once it has happened 5 times…

      Their drivers are careless.. I live in a home next to an apartment complex and the apartments steel trash dumpsters and recycle containers sit right next to my fence.

      Those drivers are so poorly trained and careless that they have pushed the dumpsters completely through our fence and into our vehicles not once but 5 different times…

      All 5 times the events were captured on my security cameras yet this criminal corporation refused to do the right thing and pay for the damages so I ended up having to sue them for the damages which were in the 1000’s each time one of their drivers destroyed the fence and damaged our vehicles..

      We don’t need criminal corporations like this in California so I say don’t let the door hit you in the behind on the way out…!!! Hopefully the company that replaces you will have a bit more integrity and not engage in illegal dumping and hopefully they will do the right thing and pay for damages they cause to private property without having to be sued

  2. Dolores says:

    Now that Waste Management has decided to relocate because the cost of doing business in California is so high , do you think our garbage bills be decreased???

  3. Cal says:

    I hope everyone abandons CA!!! Good Job Waste Management! We need more to follow suit now.

  4. RAPTOR555 says:

    ……and this will continue to happen until Californians “see the light” and kick out all the tax & spend democrats out of Sacramento. They are all anti-business with their business tax structure, union support, and over-regulation. They try to regulate private businesses but can’t even run their own without red ink.

  5. Don says:

    The trend for mass exodus of business in this state continues.

  6. gna says:

    good move dumping california

  7. Fred says:

    Other states are promoting business, we are forcing business to leave.

    We wave good by to the pay checks, the taxes, and all the economic power that goes with it. We say hello to more unemployment, an additional 100 or so residences that will now be put on the market to further drive down home prices.

    Why are the politicians not getting fired over these bone head moves? Because the people who elect them want their free piece of the pie. Where the money comes from is no concern to them. (Because they aren’t paying for it)

    We better fix this before it fixes us in a very bad way.

    We must produce goods and services. That comes at a cost.

    Start running this state as a business, we can take care of every one and prosper. Stop running this state as a unlimited cash machine with no funding source.

    1. Jacquelope says:

      You haven’t actually BEEN to Texas, have you? The state is extremely poor, higher levels of poverty than California, the highest number of uninsured in the nation, low educational scores, tons of bankruptcies.

      Then there’s the fires, droughts, and the coming food shortages there.

      Oh and Texas IS run like a business.

      1. American says:

        jackalope……………..kinda jealous for a californian, aren’t ya?

        other than the mexican invasion brought on by obama and crowd, Texas works

  8. Mkguyver says:

    The Governor, legislature, courts totally own this companies and others departure from Cali.

    When will they get IT.

    Vote smart folks.

  9. Marty says:

    More jobs leaving California? That’s just great. And worse, they’re going to Texas. California needs to split itself up in two or three and start over.

    And those who want to blame the Democrats forget that the Republicans are also part of the problem as well. The Dems want to raise taxes and spend too much. The GOP wants to bend over backwards and let the corporations and banks do whatever they want, even at the expense of the middle class, the disabled and minorities.

    The two party establishment is the problem. Not the solution. If we elect someone too far to the left, we’ll end up losing whatever jobs we have left. If we elect someone too far to the right, we get someone who will take us back to the 1920s. Dump the two party establishment.

    1. Mkguyver says:

      Wow, nobody mentioned any political party here, your jumping to conclusions.
      My comment “Legislature” was generic in nature, the whole Cali political gang is to blame, they own this problem.

      -cheers

  10. czar69 says:

    The CEO of this company easily shows conservative view, *bias* so does many of the posters, no wonder. If u don’t like get the h3ll out of CA. It is not that TX or any other states are doing so well, it is the entire nation.

    1. Fred says:

      Go back to the Ukraine, Ivan. Putin and his socialist views seem a good fit for you.

      1. czar69 says:

        the top 5 European countries now in wealth are socialism, on your way out take all hillbilly bois with you.

      2. YeeHaw says:

        I’m stayin’ put Ivan, and am armed well enough to take a whole bunch of you copper theiving ruskies out well before you get me. If all is soo well in Europe – go back.

    2. nothingchanges says:

      Sorry to say czar69, Other states are doing much better than California. If you have ever left Cali and visited other states you will see that and also the people in other states are more hospitable than Cali.

  11. Concerned Citizen says:

    Good riddance. Please take some of these other brain dead Sac county republicans with you.

    There are real ignorant rednecks in this area.

    They belong in texas.

    1. nothingchanges says:

      I spent my hard earned California money in the state of Georgia, In four weeks my family and I will be out of this Karl Marx project called California, Have fun with your head in the sand ! 🙂

    2. derF says:

      Yeah, the LibDem majority have done a great job…

  12. URFULOFIT says:

    Duplicate comment detected; it looks as though you’ve already said that!

    (Really?? WHERE??)

    Tkis site is messed up.

  13. Goodbye says:

    Don’t let the door hit ya where mother nature split ya.

    1. nothingchanges says:

      And you have fun pushing an ice cream cart 🙂

    2. Fred says:

      When all the makers leave the takers can eat each other

  14. jackie says:

    LOL,LOL I get a bang out of DUPLICATE COMMENT LOOKS LIKE YOU HAVE ALREADY SAID THAT. By gosh I already said that before I said it lol.

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