The role of recreation and park amenities in influencing footloose businesses to (Re)locate in Colorado

Abstract

The purpose of this study was to determine the relative importance of quality of life and recreation/parks/open space in business location decisions. The study sampled economic development agency officials and business representatives. Following initial personal interviews with 23 representatives of these groups, questionnaires were mailed to 87 representatives of economic development agencies and key officials in 310 companies which had relocated, expanded, or been initiated in Colorado within the last five years. The response rate among economic development agency personnel was 90%. Responses were received from 174 business officials. A 67% response rate was achieved from business officials that were contacted prior to the study, while 46% of those who received no prior contact responded. Research objectives of the study were operationalized into twelve criteria of interest. Constant sum scales were used to determine the relative importance of six general location elements and six quality of life location elements. Analysis of variance procedures were conducted to determine-nine if differences between elements existed based on the twelve criteria of interest. Tukey's tests were conducted to determine the extent of differences. Quality of life was found to be important in the business location process of some businesses, as determined by the twelve criteria of interest. Companies assigning statistically significant importance to quality of life included companies that located from outside the state of Colorado, companies making a relocation decision, small companies, and companies locating to urban areas other than the Denver metropolitan area. Additionally, companies relocating many executives and professional personnel, companies ranking the ability to attract and retain professional personnel as their primary location concern, and companies in which the ultimate decision-maker located with the company assigned statistically significant importance to quality of life. Of the quality of life factors, cost of living/housing was overwhelmingly important to all types of companies. Recreation/parks/open spaces was not perceived to be of importance to most locating businesses, when compared to the other five quality of life elements. However, small companies assigned statistically significant importance to recreation/parks/open spaces.