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How big was threat of prevailing wage ordinance in helping Lansing (MI) lose TechSmith construction

There should be some serious lamenting going on at Lansing (MI) City Hall right now with the announcement that the city was losing the construction of a promised new corporate headquarters for software developer TechSmith.  It was to anchor a Michigan State University high tech park inside the city limits.

Tech Smith CEO Bill Hamilton is quoted in today's Lansing State Journal as saying now is just not the right time for his company to construct a 100,000 square foot building that would cost $20 million.  His company makes the popular SnagIt and Camtasia Studio software.

One of the factors, but not the deciding one, according to Hamilton is:

A proposal before the Lansing City Council to create a prevailing wage and require it of local contractors on projects that receive local tax incentives.

My question:  How big of a factor was the City Council's talk of a prevailing wage ordinance in losing this project?  And what is our city gaining from a possible prevailing wage?

We've lost this project and the employment that it would have brought in the future. 

Where's the gain?

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