Big employer taking hard look at OKC

[catch22]

people will just move to OKC from somewhere else to man the jobs. it is a very nice problem to have and certainly will impact OKC's population numbers even moreso than the steady increases we've been seeing. Could this and other relocations truly turn OKC into the next major city boomtown?

OKC vs. Tulsa/Owasso is it? My money is on OKC hands down (Tulsa/Owasso would still benefit).

The problem is, in order to attract people from a distance to entry level jobs or low skilled jobs (such as warehouse), you have to significantly increase the pay. When you significantly increase the pay, you hurt the profitability metric (whatever index the company uses) and a city with higher employment could be more attractive due to lower pay.

It's all a ratio..

Cost of increased transportation to access the highway system + lower pay = X
Cost of lower transportation costs to access highway + higher pay = Y

Many more factors to consider of course, but yes there is a point where a very low unemployment rate can negatively affect a relocation or expansion.

[bchris02]

If they are looking for a city with a higher unemployment rate, Tulsa isn't really the place to look. Tulsa as well as OKC have very low unemployment rates. The only difference is job growth in Tulsa has been slower up to this point.

[mugofbeer]

Maybe all those poor people employed by Wal Mart, so underpaid and on food stamps will move over to work at the distribution center.

[HOT ROD]

who said anything about lower pay?

but even if it does end up being lower pay, it sure beats 'no pay'. And the dollar stretches significantly in OKC than just about any other major city in the country. And with OKC adding QoL like its current pace, I'm not sure the value proposition for someone considering relocating to OKC is as doom and gloom as it once was (I can confirm this from a few Boeing folks I know who relocated). This is especially true if folks do their research and discover that OKC isn't the wasteland that had been common folklore of the 1980's.

Really amazing how different OKC is today from back then.

[OKVision4U]

Maybe all those poor people employed by Wal Mart, so underpaid and on food stamps will move over to work at the distribution center.

... I hope we can continue this economic growth so all can "up-grade" and have that Quality of Life they desire.

[OKVision4U]

who said anything about lower pay?

but even if it does end up being lower pay, it sure beats 'no pay'. And the dollar stretches significantly in OKC than just about any other major city in the country. And with OKC adding QoL like its current pace, I'm not sure the value proposition for someone considering relocating to OKC is as doom and gloom as it once was (I can confirm this from a few Boeing folks I know who relocated). This is especially true if folks do their research and discover that OKC isn't the wasteland that had been common folklore of the 1980's.

Really amazing how different OKC is today from back then.

I'm liking the fact that ALL sectors of our economy are growing. Energy / Tech / Health Care / Aero ( Boeing ) / ...and yes Distribution too. Love it.

[Pete]

Learned this morning the specific site this company is looking at is the old Corning plant on the NE corner of Reno and Sara Road.

They would tear down the existing steel skeleton and start new.

[OKVision4U]

That would be a perfect spot for their next DC.

[Plutonic Panda]

That would be a perfect spot for their next DC.

Are you implying you know who it is? If so, please tell.

[Bellaboo]

Learned this morning the specific site this company is looking at is the old Corning plant on the NE corner of Reno and Sara Road.

They would tear down the existing steel skeleton and start new.

The dirt patch just to the west/northwest of this structure, is in the process of having a very substantial building built on it right now. Lots of oil field related companies have built on Sarah Rd in this stretch in the last year.

I think this industrial land is controlled by Richard Tannenbaum (sp?).

[Harvey Hudson]

Could it be Grainger?

[HangryHippo]

There are a lot of new buildings popping up out that way recently. I think there's some sort of IT/networking building and several oilfield businesses.

[LuccaBrasi]

This site makes sense. As I understand it, the City does not have control of large contiguous and appealing partials of land which they can use as a carrot and negotiation tool. Because of that, I know when other companies have explored OKC in the past, the City has gone to Tannebaum for help on this very site. They have collaborated in the past on trying to put together big picture deals that did not materialize for one reason or another. Hopefully this one does since the company in question would be a HUGE catalyst and momentum booster for our already bustling economy. Let's hope Santa visits OKC soon while Owasso, and maybe others, get a lump of coal.

[LakeEffect]

This site makes sense. As I understand it, the City does not have control of large contiguous and appealing partials of land which they can use as a carrot and negotiation tool. Because of that, I know when other companies have explored OKC in the past, the City has gone to Tannebaum for help on this very site. They have collaborated in the past on trying to put together big picture deals that did not materialize for one reason or another. Hopefully this one does since the company in question would be a HUGE catalyst and momentum booster for our already bustling economy. Let's hope Santa visits OKC soon while Owasso, and maybe others, get a lump of coal.

Correct, the City doesn't have control, but they did have the foresight a few years ago to have an "employment lands" study done.

The study is located here: City of Oklahoma City | Planning Department Plans + Studies

http://www.okc.gov/planning/plans+st...nd%20Study.pdf

http://www.okc.gov/planning/plans+st...Appendices.pdf

[LuccaBrasi]

Thanks for posting the links. I've seen the study, great move by City Planning, Cathy O'Conner, and the Chamber. The bigger move will be how they proceed.........

[Plutonic Panda]

Thought this might be appropriate for this thread:

Amazon testing 'octocopter' package-delivery drones
Internet retail giant expects to be use small drones to deliver packages to customer doorsteps within 30 minutes of their order in the next five years.

An Amazon center does seem like OKC would be a good choice for them.

[Pete]

Sad to report that OKC has been eliminated.

I believe this means Owasso will get the distribution center.

Should hear something official very soon.

[G.Walker]

Sad to report that OKC has been eliminated.

I believe this means Owasso will get the distribution center.

Should hear something official very soon.

Wow...well you win some and you lose some, not a good way to start off December though...since this was supposed to be a month of good news.

This is going to have a HUGE impact on Owasso/Tulsa Metro area...

[bradh]

Welp, I guess we'll see who it is and then sulk

[Pete]

Pretty sure it is/was Amazon.

[catch22]

Dang

[Pete]

What's weird is that Amazon already has a distribution center in Coffeyville, KS, only about an hour from Owasso.

[bradh]

So are we certain that it's them?

Is this a product of OKC not having the right mix of something they're looking for (duh)? Maybe the wrong available workforce?

[PWitty]

Any idea if this was supposed to be one of the big announcements before the end of the year that Pete and Steve hinted at? Or was everyone just assuming it would be because of the timing?

[Pete]

I don't think we'll ever know.

Even the people involved with economic development were only given a code name and dealt with a consultant, not the company directly.

I suspect they got better incentives elsewhere, but that would never be divulged.