San Antonio On the Cheap

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Rival cities have long been trying to snag a piece of the L.A. business community – and making a splash doing it.

Las Vegas spent more than $1 million in mailings and advertising in 2009. That same year, Denver flew a plane over Los Angeles with an advertising banner.

Now, another city has come calling, but it’s conducting its campaign on the cheap.

The San Antonio Economic Development Foundation is spending only $30,000 on its effort. That means no aircraft or moving billboards – something Vegas tried in 2006 – but a print and online ad campaign to recruit businesses with a minimum of $5 million in sales and 50 employees. That was followed by direct mailings to 600 companies, with follow-up visits scheduled this month with about a dozen firms that have been most responsive.

“It is sales, but it is very targeted,” said foundation President Mario Hernandez.

San Antonio’s main pitch is that the two cities have complementary economies, including strong biotech, information technology, manufacturing and aerospace industries. It also asserts, as have other Texas cities, that its home state has a better business climate without a personal income tax or cap-and-trade regulations.

The foundation started targeting L.A. businesses in the mid-1980s and recruited downtown L.A.’s Capital Group Cos. Inc. to open a data center in its region in 2010; Capital now has 2,500 jobs in the area.

Robert Kleinhenz, chief economist for the Los Angeles Economic Development Corp., isn’t worried, though.

“Yes, we do see some businesses leave and take jobs with them,” he said. “We also see businesses come into the area and bring jobs with them.”

– Bailey Brewer

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