Analysis of Tri-City Business Query, Essay Example

To: Mr. Donal Vagenbeyer, CEO of Starwood Hotel Management Systems

RE: Formal Proposal to relocate established business Starwood hotel chain to one of three metropolitan areas

Introduction

I would like to make a formal proposal to start a business after conducting a tri-city analysis of Atlanta, Georgia, New Orleans, Louisiana and Baltimore, Maryland with hopes of determining which city would be most advantageous to commence a new business. Factors of business incentives, quality of life and transportation will be investigated for the purposes of this study.

Atlanta, Georgia

Business Incentives

One of the spectacular business incentives offered to new business developers in the city of Atlanta is easy approval for financing with respect to new development loans and industrialization. Further to encourage a business to relocate to the Atlanta area, all commercial properties falling in the downtown district are allocated tax break bonds. “The Phoenix Fund assists new business developers with loans up to 100,000 and further provides loans for the construction or renovation of privately owned commercial buildings and equipment. This citywide incentive is competitive on application to URFA and provides municipal bond rate financing for affordable housing units.” (“City of Atlanta Incentives”).

Quality of Life

In the 2/27/07 issue of the Association of at Goal (AIC) , an environmental group says that “’Atlanta ranked 64th out of 72 of cities nationwide on a new report card that considered more than 200 environmental, health and quality of life indicators.’” (“Atlanta Low Quality of Life”) Despite poor environmental ranking, the city has a hub of prime located manifestations of growing businesses in the downtown area which show the likelihood of a new upcoming businesses success. Atlanta is predominantly operated by public school systems yet there are several private and parochial schools throughout the metropolitan area. Average private school tuition elementary is $700 per month as reported by the US Private School Search and University costs can differ depending on private or public funding. There are available medical clinics for fast medical service throughout the metropolitan areas as well as hospitals and doctor offices. St. Joseph’s Hospital is one of Atlanta’s top hospitals in the area.

Transportation

Although Georgia is one of the fastest growing states in the United States, the funding available for transportation is not available. The proposition is a regionally funded sales tax that is put to the voters to approve that will aid in money to be used for transportation purposes only. The Chamber does have a policy in place but still there is must congestion and lack of mobility. Atlanta is home to the Hartsfield-Jackson International Airport which is one of the largest airports in the United States. Despite the enormous size of the airport, it is quite user friendly offering escalator service and shuttle service in between terminals making your trip to your departure gate as stress free as possible. Major highway is Interstate 85, 75 and 20 which can bring one west or north with little effort. Interstate 675 brings one southward and clear of the highly robust Downtown Connector.

New Orleans, Louisiana

Business Incentives

The New Orleans Office of Economic Development has stated that there is no better time than now to open a new business in the city of New Orleans. New businesses are promoted to enter with a proactive stance to reap the benefits of the new tax incentive programs and locator services are currently being offered to entrepreneurs. “In 2008 Louisiana was ranked 5^th in the nation for entrepreneurial activity.” (“Business Incentives, Power Networks and a Whole Lotta Soul”).New Orleans has great international trade assets with regards to their railways, excellent highways and access to the mouth of the Mississippi River and are at the top of the nation with oil and gas production. This is a focal point for attracting new businesses to the area because accessibility of trade increases profit margin and ensures success. Most of the colleges and universities in the area have come back strong after the hurricanes Katrina and Rita. There is great educational reform submerging in the city of New Orleans. This concept is supported by executive director of schools and education Warren Simmons of Brown University. (Warren Simmons, 2006, p. 2).

Quality of Life

Living in New Orleans is exciting and innovative because the city has museums, arts, restaurants, casinos and parks to offer. There are several new homes to be found and refurbished homes on the market since the two hurricanes passed through. Though the value of properties have dropped recently, you can buy an average home, 3 BR, 2BA, 2000 living square feet in the lake district of New Orleans for approximately $200,000. Rental prices have dropped about 25% as compared to rentals before the hurricanes. An average rental in the Lakeview area would cost you $800.00 a month where prior to the hurricanes the rent would have put a dent in your pocket book for about $1000.00. These facts were derived from various real estate research checks and drive by residential renting checks in the nearby neighbourhoods. New Orleans is home to prestigious Tulane University in uptown garden district New Orleans where tuition is a soaring $40,000 a year. Further there are clinics and limited hospitals since the two hurricanes a few years ago but there is sufficient treatment for the residents without having to leave the city. Some of the best doctors in the United States conduct their medical internship at Charity Hospital in downtown New Orleans, LA. There are many prestigious elementary and high school private institutions such as Izidore Newman in the uptown area and Benjamin Frankin which is public affiliated. Both attract students who excel to go on to schools such as Harvard and Georgetown. On the contrast I must state that the public school system overall is not very good in New Orleans.  This data has been accumulated from the schools.

Transportation

The public transit system provides bus and streetcar service in the downtown, midtown and uptown areas of New Orleans. Currently the streetcar service runs from St. Charles Avenue to Canal Street. Most major hotels offer transit service to and from the Louis Armstrong International Airport in the suburb of Kenner, LA, just ten minutes from downtown New Orleans, LA. Taxicabs are available at most downtown locations of New Orleans especially around Canal Street and the French Quarter locations. Since parking is rather expensive in the downtown locations many employees carpool in from Metairie, LA, another suburb of New Orleans, LA. New Orleans has a small but effective international Louis Armstrong Airport just 10 minutes west of downtown New Orleans, LA. The airport is accessible from all major hotel chains and most hotel chains offer free shuttle service to and from the hotel. Small airports with great service are preferred over large and exhaustive airports. The major interstate through the suburbs of New Orleans through New Orleans and straight to Mississippi is Interstate 10. It also veers off into I610 which takes you directly to downtown New Orleans and the French Quarter District, Uptown University area and the downtown hotel area.

Baltimore, Maryland

Business Incentives

Baltimore is leader in the following business industries: health care, life sciences, tourism, finance and real estate. The city offers help for minorities attempting to establish a new business in the form of tax incentives and less stringent qualifications on loan acquisitions.

Quality of Life

Baltimore is made of up very distinctive neighbourhoods with charm and historical ambiance such as Historic Federal Hill located just a short walk from the Inner Harbour. There are picturesque shops and galleries from the 19^th century amongst the beautiful streets of the city. Baltimore has fresh picks of blue crabs for seafood lovers. This historical charm is an attraction for neighbourhood residents and many visitors across the United States. The use of a new hotel in the downtown area with innovative marketing and convenience will surely be welcomed in this luxurious area of Baltimore.

Transportation

Baltimore has a world class transit system called the Red Line which provides effective transportation from east to west Baltimore. “Future reconstruction projects are scheduled at Curtis Highway and Rock Glenn Road which are adjacent to major business areas of Baltimore.” (“City of Baltimore Transportation”). This project will allow for faster flow through the city in the mornings and the evening peak times. Further, Baltimore operates taxi cab services throughout the Metropolitan area. Where there are hotels there are people and people need fast access to transportation. Baltimore has that access through railway and taxi available 24/7. This is a remarkable incentive for hotel entrepreneurs to come into the area and to be successful. Baltimore is home of large airport Baltimore/Washington International which serve all of the United States and all major European countries and some third world countries through connecting flights through Europe, mostly London, England. This airport is preferred to the John F. Kennedy airport in New York, City because it is not quite as congested as JFK. Interstate 95 runs east and west of Baltimore and 10D system runs through the Inner Harbour area of the proposed area for the hotel. Interstate 95 connects into the 10D system. I-95 further moves south via way of the 3A system.  Baltimore is home to the prestigious John Hopkins Hospital and Medical Centre. When there is a complicated diagnosis often patients are referred to Hopkins. There are many clinics and doctors available throughout the metropolitan area. Education in the public sector is reasonably satisfactory but the private school are well known for deliverance of stupendous education.

Works Cited

“City of Atlanta Incentives” Central Atlanta Programs 2009. 21 Sept. 2009. http://www.atlantadowntown.com/business/incentives/city-of-atlanta-incentives

“Atlanta Low Quality of Life”City-Data.com2009. 22 Sept. 2009. http://www.city-data.com/forum/atlanta/50627-atlanta-low-quality-life.html

“Business Incentives, Power Networks and a Whole Lotta Soul” Search Influence 2008. 21 Sept. 2009. http://www.searchinfluence.com/2009/06/new-orleans-business-incentives/

“City of Baltimore Transportation” City of Baltimore 2009. 21 Sept. 2009. http://cityservices.baltimorecity.gov/dpw/dcp/public/transportation_fcp.php