Mayor Vincent C. Gray Signs Bill Incentivizing Tech Company LivingSocial’s Growth in the District
On July 19th, Mayor Vincent C. Gray signed a bill that allows the District to retain LivingSocial, its largest technology company, and to generate over 1,500 job opportunities through the company’s growth and construction of a new, consolidated headquarters. The incentive package within the bill includes the most rigorous performance requirements ever included in such legislation.
The Social E-Commerce Job Creation Incentive Act of 2012 also allows LivingSocial to consolidate its six current leases within the District into one corporate headquarters. The company currently employs over 1,000 individuals in the District—half of whom are District residents. LivingSocial has nearly 5,000 employees worldwide.
“…Keeping LivingSocial in the District is important so that we can continue to draw additional business and tech companies to D.C. and help build the New Economy I talked about in my State of the District Address,” said Mayor Vince Gray. “This legislation, unlike any previous incentive package in the District, also ensures that the incentives received by the company are directly tied to the creation of new jobs for District residents.”
The Mayor was joined at the bill signing by At-Large Councilmember Michael Brown, Ward 2 Councilmember Jack Evans, Deputy Mayor for Planning and Economic Development Victor L. Hoskins and LivingSocial CEO Tim O’Shaughnessy. The package was negotiated under the leadership of the Office of the Deputy Mayor for Planning and Economic Development, with input from the Office of the Attorney General and the Office of the Chief Financial Officer’s Office of Tax and Revenue.
The legislation requires that at least 50 percent of LivingSocial’s new hires be District residents in order to receive $32.5 million in benefits tied to real property and corporate franchise tax abatements. In addition, the bill includes District commitments from LivingSocial, such as hiring local youth in the Summer Youth Employment Program (SYEP) and assisting small businesses located along corridors affected by construction.
“We continue to make great strides in the area of business development,” said Deputy Mayor for Planning and Economic Development Victor L. Hoskins. “LivingSocial has been and will continue to be a great corporate partner in our efforts to create jobs for District residents and diversify the District’s economy.”