Nearly 40 percent of businesses receiving those incentives have left Montgomery County or have closed, the report — requested by the Montgomery County Council and compiled by the county's Office of Legislative Oversight — said.
The report—available above—was briefly discussed by the County Council Tuesday and is scheduled to be fully examined by the council's Planning, Housing and Economic Development Committee on March 7, according to The Washington Examiner.
Despite the low retention rate, The Washington Examiner highlighted the following statistics from the report:
- Incentive awards provided a $1.24 billion return in private investment
- Incentive awards provided $38 million in annual net economic benefit
- Incentive awards created about 26,775 jobs as of December
While the county struggles to keep its businesses local, Gaithersburg Economic Development Director Tom Lonergan said of the companies he's worked with—and some that predate his tenure with the city—most or all of them are still in Gaithersburg and doing well.
"Any time you extend incentives to a company there are inherent risks," Lonergan told Patch. "You do your best to invest in and bet on what you perceive to be the winners, the ones that will stay, the ones that will withstand, and you look for the best return on investment.
"The numbers from the county show there are some that work out and some that don't," Lonergan said. "I think we have been a bit more fortunate in Gaithersburg ... but we don't have the history the county does."
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