Feeds

BEA $13m relocation sweetener

Ticket to ride

The Power of One Brief: Top reasons to choose HP BladeSystem

BEA Systems is set to receive a $13m signing bonus for moving its HQ to San Jose's sprawling downtown from city fathers eager to woo Silicon Valley based businesses.

San Jose's Redevelopment Agency has agreed to pay BEA in an effort to finally fill an office development that's been empty since construction in 2003.

The cash will be paid to BEA over a 15 year period, starting with $4.36m during the first five years. BEA will take its first $2.4m payment on July 1, 2008, followed by $1.3m the following year.

BEA hinted at the move last week while announcing $391m in quarterly revenue, but didn't dive into details. Details were released by the agency "because of the major significance of this site to the economic vitality of the downtown and because of recent public and media interest".

BEA will move 1,000 full-time staff and contractors from its current 225,000 square feet space in North First St to occupy to 380,000 square feet at Sobarto Tower.

The agency reportedly justified the handout saying larger offers had been paid to attract Adobe Systems, and the payout would be recouped through $35m in property taxes. Unlike previous sweeteners, though, the agency did not underwrite construction of the Sobarto facility. The deal is awaiting ratification from San Jose City Council on 20 March.

US cities regularly provide sweeteners to attract big businesses, a practice that's generally been reserved for sporting franchises. The practice is starting to land some in hot water, though. North Carolina's Senate Finance Committee is looking into the state's grant of a quarter of a billion dollars in secret tax breaks for Google in return for the search giant's opening of a 200 person data centre in the state. ®

The Essential Guide to IT Transformation

More from The Register

next story
Secure microkernel that uses maths to be 'bug free' goes open source
Hacker-repelling, drone-protecting code will soon be yours to tweak as you see fit
KDE releases ice-cream coloured Plasma 5 just in time for summer
Melty but refreshing - popular rival to Mint's Cinnamon's still a work in progress
NO MORE ALL CAPS and other pleasures of Visual Studio 14
Unpicking a packed preview that breaks down ASP.NET
Cheer up, Nokia fans. It can start making mobes again in 18 months
The real winner of the Nokia sale is *drumroll* ... Nokia
Put down that Oracle database patch: It could cost $23,000 per CPU
On-by-default INMEMORY tech a boon for developers ... as long as they can afford it
Another day, another Firefox: Version 31 is upon us ALREADY
Web devs, Mozilla really wants you to like this one
Google shows off new Chrome OS look
Athena springs full-grown from Chromium project's head
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.