LivingSocial, headquartered in Washington D.C., shouldn’t be expecting any more incentive packages from the city, according to a recent conversation BizJournal had with D.C. Mayor Vincent Gray.
In 2012, Gray’s administration had a tech policy that was centered around one specific goal – how to keep LivingSocial from leaving D.C. Gray pushed a deal for LivingSocial to receive tax breaks – worth as much as $32.5 million – through the D.C. council.
But after last year’s layoffs, its seems the daily deal site is unlikely to meet the hiring and expansion requirements for claiming the money.
When asked by BizJournal about whether he expects the company to get any part of the D.C.’s tax breaks, Gray said, “Of course we hope so. We worked hard to make sure the taxpayers of the city were protected — that there had to be performance associated with that with LivingSocial.”
The city helped LivingSocial out when the company was in a tight situation.
Reiterated the mayor: “I guess I can say I hope so. They’ve had a great product in my opinion, it’s been wonderful to see how many people they hired along the way. So whatever we can do to work with them in a reasonable way to make sure they stabilize their situation, we want to do that. Because they have been good corporate citizens here in the city, and we want to see them stay, of course.”
Gray’s focus on tech has expanded from just LivingSocial to a broader spectrum, start-ups and investors. According to BizJournal, Gray unsuccessfully work last year to reduce capital gains for cashing out tech investments and plans to try again this year.
The D.C. Mayor recently spent time in Austin, Texas at the South by Southwest festival to boost Washington D.C.’s tech scene.
“This is an effort to really try and market the opportunities in the city, and market the fact that we really are working hard to bring technology business to the city,” the mayor told BizJournal.