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Apple Headquarters to Inject Billions in Local Economy

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Apple Headquarters to Inject Billions in Local Economy

Apple released an economic study that says its new headquarters will inject $2.1 billion into the local economy and that it will ad 7,400 full-time jobs.

The $2.1 billion will be spent on neighboring businesses in Cupertino, Santa Clara and Sunnyvale, according to the San Jose Mercury News, citing Apple's report. It's new campus is also supposed to generate $13 million annually for Cupertino, about $3.8 million more than last year's tax bill. Not surprisingly, the study came out just before an environmental impact report on Apple's new HQ.

"I don't think it's coincidental this is coming out at this point in time," Cupertino Mayor Orrin Mahoney told the Mercury News. "It's fair to say there will be some negative impacts, as there would be for any project of this size. Apple just wants to make sure that the community sees a balanced approach."
 
Last month Apple chief Tim Cook appeared before a Senate committee that criticized Apple's European tax shelter that allowed it to not pay U.S. income tax on $102 billion. Shortly thereafter, Apple released the economic impact study.
 
"But given the large capital investment that is required for a campus of this nature, this is probably part of the process to make this as seamless as possible," Chuck Byers, a Santa Clara University marketing professor told the Mercury News. "If I'm correct, it's very, very smart compared to their usual code of silence regarding their product issues."
 
Apple's new campus is expected to be completed by 2016 and be 2.8 million square feet. The four-story building would be bordered by Interstate 280, North Wolfe Road and East Homestead Avenue. 
 
As far as spinning negative press, creating and releasing a favorable economic impact report is a good choice for Apple. As one analyst said, "They're getting a lot of bad press, so they need it." Is Apple finally getting that it can't be silent about its proceedings if it expects to succeed in this increasingly public world? Perhaps we may be seeing more of these reports in the future -- likely around tax time.
 

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