Boulder businesses’ evaluation of city effort mixed

BOULDER – The business climate in Boulder is either great or poor depending on whom you ask.

About 45 percent of primary employers in the city responding to a city-commissioned survey said Boulder is a fine place to do business. Twenty-one percent said it’s not so fine. And about 35 percent feel neutral about it all.

The 2005 Boulder Employer Survey, released earlier this month, was an effort by the Boulder Economic Council to acquire opinions of local business leaders on a variety of issues, but only 104, or 15 percent, of the 713 companies surveyed replied. The industries most heavily represented among respondents were software, natural foods, and outdoor products and apparel. A primary employer sells its goods or services outside the immediate area bringing in new dollars to the community.

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Businesses surveyed liked some things about Boulder, including its proximity to the mountains, quality of life in the community, education level of its work force, community amenities such as restaurants and shopping, and the availability of quality support services like lawyers and accountants.

Low-scoring aspects of Boulder included the high price of commercial space – both for purchasing and leasing, suitable housing for employees and the lack of a business-friendly attitude on the part of local government.

The survey covered topics of recruiting and hiring employees, expansion and downsizing, relocating to other cities, business incentives and an employee head tax.

The survey revealed several things the city could do to create a business-friendly environment. The survey was conducted by RRC Associates of Boulder and paid for by the city of Boulder and the Boulder Economic Council.

Hiring
In the next 12 months 51 percent of employers surveyed said they will hire more workers, 40 percent will maintain their staff levels while just 2 percent is planning some form of reduction.

The companies that plan to hire have an average of about 40 employees and expect to add about four employees in the next year, according to the survey.

More than half of the businesses surveyed recruit inside and outside of Boulder, while 21 percent recruit only in Boulder, and 13 percent always recruit outside Boulder.

Among firms that recruit outside the city, 50 percent believe that their Boulder location has no effect on their ability to recruit, while 31 percent believe it makes recruiting easier.

Expansion and relocation
About 45 percent of the businesses surveyed expect they will expand their space within the next two years, and only 51 percent of these companies believe they will be able to find what they need in Boulder. But only 2 percent of businesses surveyed said they are sure they will leave Boulder within the next two years. Seventeen percent said there is a 50 percent chance they will leave. Likely destinations are other cities in the Boulder Valley. The survey revealed that the highest percent would look to Louisville and Lafayette, followed by Broomfield and then Longmont.

Reasons for leaving Boulder included a climate that is perceived to be unfriendly to business, high costs, employees who don’t live in the city and attractive options in other communities including lower property taxes and incentives.

Incentives
The survey revealed several incentives that businesses believe would help them succeed. Nearly 60 percent of respondents would like a sales or use-tax rebate on equipment purchased for the business, and they also would like tax rebates on personal property taxes.

More than half would like to see improvements in the city process that would expedite construction projects.
Nearly half would like a reduction in building permit fees and/or construction taxes for the expansion or relocation of a business.

And about 40 percent would like a liaison to help navigate Boulder’s review and approval process.
One respondent said, “Shrink departments, become more efficient, cut red tape.” Another said, “Rebate a portion of use/property taxes. Eliminate the insane overprotection of prairie dogs for business owners. Listen to what Frank Bruno (city manager) has to say – he will help a lot.”

Head tax
Not surprising, 76 percent of companies strongly oppose a head tax of roughly $5 to $10 per employee per month that would go toward making up for the city’s sales tax revenue shortfall. Another 15 percent of the companies said they were somewhat opposed. Presently, a head tax has not been proposed in the city.

Commenting on the possibility of a head tax, companies said it would serve as a force to drive businesses and employees out of Boulder. Some of the comments included:

_ “This isn’t fair. Revenue can be made up elsewhere, such as the new Twenty Ninth Street mall.”
_ “Don’t penalize business for a flawed development strategy.”
_ “Losing commerce and sales tax should be addressed by increasing commerce and merchant opportunities. Not by taxing heads on nonmerchant companies.”

What employers look for in a city
Top 10 factors in business location decision in order of importance based on results of the 2005 Boulder Employer Survey conducted by RRC Associates of Boulder:
1. Availability of qualified work force.
2. Quality of life in community
3. Lease rates for space.
4. Business-friendly attitude on part of city government.
5. Ability to recruit/retain employees.
6. Ease of doing business.
7. Quality of available space.
8. Purchase price of space.
9. Access to alternative transportation.
10. Ability of work force to find suitable housing.

A wish list for change
Ten things businesses would like to change about Boulder as a place in which to operate selected from a sampling of responses in the 2005 Boulder Employer Survey conducted by RRC Associates of Boulder.
1. Lower cost of office space.
2. More affordable housing for staff.
3. Cost of living for employees.
4. Eradicate the attitude that Boulder is superior.
5. More free parking downtown.
6. Lower taxes for natural food startups.
7. Provide tax incentives to keep outdoor gear and LOHAS industries here.
8. Allow more density downtown for expansion.
9. Add a trolley.
10. Lower real estate prices.