AutoAlert in Irvine will shift its headquarters to Kansas City, Mo., this spring, lured by $9 million in tax incentives in exchange to grow the software company.
Founded in 2002, AutoAlert mines customer data to create sales and trade applications used by auto dealerships.
The move, the company said, will create more than 200 jobs. Chief Executive Mike Duella, in a statement, has described the Kansas City jobs as “high-paying tech jobs.”
“After a comprehensive evaluation of major markets, AutoAlert selected Kansas City due to its revitalized and growing downtown area, access to tech talent, and convenient transportation options,” the company stated.
AutoAlert declined to comment on the move or how many local employees might be impacted. In its statement, the firm said it would keep an office in Irvine, but did not specify how many employees would remain.
In 2014, the privately held company made the Orange County Register’s annual list of Top Workplaces for small businesses in the county. At the time, AutoAlert said it had 77 employees in the county and 120 companywide. Today, its website lists offices in Kansas City, Boston and Manchester, England.
The Kansas City Star reported the state will provide as much as $9.2 million in economic incentives, as long as AutoAlert creates the promised jobs over a specified timetable.
Lucy Dunn, president and chief executive of the Orange County Business Council, said she was “not surprised” by the decision.
“Companies are struggling here because housing is so difficult to find for their workforce. California has a difficult regulatory climate as well,” Dunn said. “One of the most important things Orange County must focus on is growing high-paying jobs. We’re losing our young families because it is too expensive to live here, and our county is aging.”
The company said its new headquarters will be operational this spring.
Last year Buena Park’s Yamaha Corp. of America agreed to stay in California after the state granted it a $3 million tax break.
The company is a subsidiary of the Japanese musical instrument and audiovisual equipment maker.
It told state officials it would leave the state without the tax credit.
“There are some incentives available at the state level,” Dunn said. “But we generally find out about these things after they’ve left instead of these companies coming to us beforehand and saying they are relocating.”
In 2016, Go-Biz’s California Competes Tax Credit program gave $243 million in tax breaks. In 2015, it granted $200 million. The program started in 2013.
Staff writer Margot Roosevelt contributed to this report.
Contact the writer: hmadans@ocregister.com or Twitter: @HannahMadans
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