There are those who question the effectiveness of incentives in promoting economic development — in particular in attracting businesses to an area. A recipient stays long enough to take advantage of the incentives, then moves on to another location to obtain even more incentives, one argument goes.

It’s a specious contention. There are exceptions. But most businesses don’t engage in the kind of activities that are more like children going door to door on Halloween in the eager pursuit of bigger bags of candy. For one thing, incentives constitute only one factor that goes into the calculation of where to locate a business — and not the most important factor. For another thing, the costs of relocating operations and employees present obstacles to frequent moves.

What about incentives for an existing business expanding operations?

They can be even more beneficial because existing businesses account for more of the job growth that’s one goal of incentives. The U.S. Small Business Administration estimates existing businesses account for about 60 percent of net new jobs in the private sector.

Now, what about incentives for an existing business with a large work force that brings dollars into the economy?

That’s the kind of ideal situation Steve Jozefczyk talks about in praising the package of state and local incentives supporting the latest expansion at West Star Aviation in Grand Junction. As deputy director of the Grand Junction Economic Partnership, Jozefczyk was involved in efforts to secure the incentives.

The Colorado Economic Development Commission approved a total of
$1.7 million incentives for the $16 million project. That includes job growth incentive tax credits that will be paid out over eight years as West Star adds staff as well additional incentives from the state strategic fund. GJEP and Industrial Developments Inc. in Grand Junction will pay a total of $246,000 to match money from the strategic fund.

The combination of incentives is unusual, Jozefczyk said, but reflects the role of West Star in the Mesa County economy. With a staff of more than 500, the company ranks among the largest private employers in the county. Along with a 40,000-square-foot hangar and 32,000 square feet of additional shop and office space, West Star expects to add 110 more employees to its payroll.

There are good reasons the West Star operation at the Grand Junction Regional Airport is already one of the largest for the company. But with operations in seven states, West Star could have expanded facilities elsewhere. The incentives made an easy decision that much easier.

The Grand Valley offers an attractive location in which to do business — not the least of which involves the scenic setting, salubrious climate and outdoor recreational opportunities. That’s not to mention a growing educational institution in Colorado Mesa University. Incentives add to the inducements — the tax credits offered through the Rural Jump Start program, for example.

But it’s altogether fitting and proper incentives also are available to help the businesses that are already here to stay here, expand their operations and provide more jobs.

Without question, that’s when incentives can be especially effective.