RANCHO CORDOVA (CBS13) — The city of Rancho Cordova hopes monetary enticements and low rent will bring new companies to the city.
The city council approved a new fund to target high-growth companies.
“I think we have a very solid and positive business park here and…and we also have a thriving industrial section,” Rancho Cordova Deputy City Manager Micah Runner said.
The city has more vacant spaces than occupied. In order to woo businesses to the region, the Rancho Cordova city council voted to launch an investment fund awarding $2.5 million to 25 companies in the city over the next 24 months.
“If we get 25 companies in the next two years to locate their business here, we think that’s a great thing,” Runner said.
The news is going over well with some.
“If they’re going to get that type of money in here to help business, I think it’s awesome,” said Dez Abner.
“Jobs are good, so I think there has to be some incentives,” Dean Wilkerson said.
The city is specifically looking for fast-growing companies.
“It’s gotta be higher wage, higher technical jobs, so really we’re looking to attract higher-wage jobs and talent,” Runner said.
The big selling point is the lease rates. In Rancho Cordova, leasing a space costs $22.77 per square foot, compared to $68.03 per square foot in San Francisco.
“When you look at the cost of doing business and the operating costs for what it costs to do business out of San Francisco and what you pay in space in Rancho Cordova, you’re going to see a drastic difference,” Runner said. “And I think that’s an incentive to get folks to locate and look here.”
Next to Sacramento, Rancho Cordova is the second-largest job market in the region. So what’s good for Rancho, will be good for Sacramento.
“I think this is good for the region. Good for us, but also good for the region,” Runner said.
The fund would generate $60 million in total payroll and about $400,000 annually in new tax revenue.