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Fortune 500 Company Will Leave CA for CO Tax Breaks

From the Denver Post:

A new state law was critical in the decision by the country’s largest kidney-dialysis provider to move its corporate headquarters to Colorado.

Currently based in El Segundo, Calif., DaVita Inc. is No. 433 on the Fortune 500 with nearly $6 billion in annual revenue and more than 1,400 dialysis clinics in 43 states.

Incentives in a new law that takes effect in August “were relevant and necessary,” DaVita chief executive Kent Thiry said Wednesday at a news conference.

Thiry called the incentives the “necessary lubricant” to assist the company with the time and financial commitments of relocation.

Thiry credited Gov. Bill Ritter and Denver Mayor John Hickenlooper with “thoughtfully designing” their presentations and said he was impressed with their work on the environment, public education and light rail.

Denver’s central location, lower costs and status as a desirable place to live and work, as well as building on DaVita’s regional presence, played into the decision, Thiry said.

California and Colorado were on the list of five possible sites. Thiry declined to identify the others.

How much incentive money flows to DaVita “is yet to come,” said Don Elliman, director of the Colorado Office of Economic Development and International Trade.

Elliman said the law gives a state income-tax credit of 3.8 percent for up to five years to companies if they select Colorado over competitors and create at least 20 jobs.

DaVita will have to apply to the Colorado Economic Development Commission for the tax break. Elliman said area counties and cities will have to provide other incentives.

The Jefferson Economic Council has been working on a package to keep DaVita in Jefferson County, where it already has a building with 250 employees.

“We’re doing everything we possibly can to create a winning proposal for DaVita to stay here,” said Jefferson County Commissioner Kevin McCasky.

As for incentives, McCasky said, “You name it. If we have the authority, it will be considered.”

Thiry said no decisions on a headquarters location have been made.

About 800 of DaVita’s 32,000 employees work in Colorado. Thiry and several other senior executives will make the move. Other headquarters employees are being given the option to move.

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