DIRECTV’s Missoula Facility Completed in August

In November 2005 DIRECTV announced that it had selected Missoula as the site for a new customer service and tech support center. The company broke ground a month later, with the goal of completing the 72,000 square foot facility by mid-summer.

The company initiated its first job training class in July 2006 and the first customer call was received in Missoula in August. “DIRECTV has performed in exemplary fashion and delivered on all their commitments,” stated Dick King, MAEDC’s President and CEO.

Located on 12.5 acres of property in the Missoula Development Park, the new facility is now home to more than 700 workers. King stated that “Missoula County worked hard to get this project done and the County Commissioners as well as key staff deserve much of the credit for the project’s success.”

Using a new law passed by the 2005 Legislature, the County created a Technology Tax Increment District at the Development Park. DIRECTV responded to a request for proposals for an “anchor project” in the District and the Commissioners adopted a resolution approving the company’s proposal and certifying that the jobs to be created exceeded the standards for quality. The County agreed to purchase the facility from the company and lease it back for a 10-year period, which enabled the company to start construction.

“This has been a challenging project for all of us,” King stated, “but the effort has been worthwhile.” In addition to Missoula County, the Montana Department of Commerce, the Montana Board of Investments, Senator Max Baucus, and the U.S. Economic Development Administration were key partners in the effort. An opening ceremony was held in October 2006. Employment is projected to reach 950 in mid-2007.

Using an Infrastructure Loan from the Board of Investments in the amount of $10,040,000, grants from the Montana Community Development Block Grant Program and the Big Sky Economic Development Trust Fund, and a tax increment bond, Missoula County purchased the facility for $12,500,000. Monthly lease payments will service the loan from the Board of Investments.

DIRECTV’s customer service and technical support representatives will provide assistance and support to the company’s 16 million customers in the United States. “We intend to do all we can to make their decision to locate in Missoula and Montana a wise choice,” King stated.

Department of Commerce Completes Cost/Benefit Analysis of DIRECTV Project

Is economic development cost effective? That key question is appropriate for every investment involving public funds. The DIRECTV project received $2,865,000 from the Montana Department of Commerce. Of that, $1,995,000 was committed for reimbursement of job training expenses and $860,000 was provided to Missoula County to help meet acquisition costs. The Board of Investments also incurred opportunity cost on the interest rate differential. The Department has completed a cost/benefit analysis of these expenditures.

The project created 323 construction jobs in the first year, generating new personal income taxes to the state of $330,344. The company will create 950 jobs in two years. In addition, 522 new jobs will be indirectly created. Income tax revenue to the state from this job creation is estimated at $2,209,730 annually. Also, the company is expected to pay about $286,335 in corporate income tax and $300,000 in local taxes. Using these assumptions, the Department determined the state’s investment in the project will be recovered in the third year once the facility is fully operational.