We're not the worst, but most places get by paying a lot less

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Phelps Dodge got a tax incentive to build its already-existing Arizona HQ here and when it merged with Freeport McMoran it was given yet another incentive to keep its HQ here - but this time in another new building. How many jobs were created? Every name-brand hotel downtown received significant incentives to hang its shingle. The list is a very long and expensive one with ripple effects that are crippling existing small-ish commercial property owners with the tax burden not carried by these big developments, as well as crippling the ability to build schools in the area.
A group of studies out found "no statistically significant association between economic development incentives per capita and average wages or incomes; none between incentives and college grads or knowledge workers; and none between incentives and the state unemployment rate." and further have no real bearing on business relocation decisions. [cited below].
We have such a large installed base of incentivized development now it will be difficult for new development to occur without any incentives. But we should try to reduce their impact with a view to making them disappear. It will make us stronger in the long run.