The major problem I have with the Google/NASA deal (Is Google’s NASA campus a search for a tax break?, 10/2/5) is that Google is not just building office space on federal land but also housing (up to 2,000 units) and retail space. That local taxes won’t be paid on the office space is not great but within the realm of reasonable.
But guess what? There won’t be any taxes paid on the homes and stores either. Most Google employees are younger, many in the age range when having kids is common, and those children will be going to local schools while this deal will avoid paying into the school district to fund the increased enrollment. Google does pay local taxes now–the Googleplex is in Mountain View–and one can assume that some revenue currently going to city coffers from housing and stores, which would otherwise be located on ratable land, would evaporate with this deal as well. Altogether a significant loss to the city not easily made up by having more jobs in the region–I don’t see the restaurants and clubs on Castro St. doing quite that well.
Even given these negatives I believe that Google and NASA should make the deal. However, if the company executives want to live up to “Do No Evil” then they should alter the terms to account for the cost the development will incur. Otherwise this will be just one more in the recent skein showing Google’s corporate morality is now second banana to a misguided self-interest.
BillSaysThis 