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Chandler a finalist for 3 solar businesses

Donna Hogan, For the Tribune

July 21, 2009 - 5:21PM

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Recently installed solar panels are seen on a home in Chandler in this May 7, 2009 photo. Chandler is aggressively trying to attract solar companies to move to the city and is on the "ultra short list" of three companies looking to relocate.

Recently installed solar panels are seen on a home in Chandler in this May 7, 2009 photo. Chandler is aggressively trying to attract solar companies to move to the city and is on the "ultra short list" of three companies looking to relocate.

Tim Hacker, Tribune

The outlook is sunny for Chandler to become the solar industry capital of the Valley, possibly even of the Southwest.

Three companies searching for a new U.S. base have Chandler on their "ultra short list," said Christine Mackay, the city's economic development director.

And Chandler could have a shot at more than two dozen other solar businesses that are considering an Arizona location.

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The decision makers for Chandler's three hottest prospects have narrowed their respective lists to two choices - Chandler and a location in a different state, Mackay said.

Combined, the three could mean more than 2,700 new high-salaried jobs and millions of dollars in capital investment to Chandler, Mackay said.

And they likely would attract even more companies to the city.

"It's the Nordstrom effect," Mackay said.

When one or more major players within an industry selects a home base, other businesses that have similar customers or companies that service or supply that industry want to be nearby.

Mackay could have dubbed this business clustering tendency the "Intel effect," as 47 businesses have moved into Chandler just to be close to the microprocessor giant, she said.

Of the three solar companies that short-listed Chandler, two plan to finalize a site selection by year-end, Mackay said.

The giant of the trio, with 1,700 jobs to offer, is "in a longer decision process of maybe two to four years," Mackay said. Still, the coveted company has narrowed its choice to either Chandler or an Oregon hot spot, she said, so it's worth the wait.

Chandler has been aggressively marketing to the solar industry because it's a good fit for the highly educated labor force already in place thanks to the city's existing high-technology businesses, she said.

And Chandler already has the housing, retail and other quality-of-life amenities that those high-income companies have spawned.

Mackay credits the Greater Phoenix Economic Council - and SB1403, recently signed into law by Gov. Jan Brewer, which provides property and income tax credits to sustainable energy companies - for spurring the city's push to become a solar capital.

GPEC has been equally aggressive about wooing the energy-saving businesses to Arizona.

Just three weeks ago, while SB1403 was making its way through the Legislature, GPEC CEO Barry Broome, who had lobbied extensively for the incentive bill, said 15 solar companies were eyeing the state.

Mackay said that number has since doubled.

At a sustainable energy conference in San Francisco last week, GPEC held a press conference to announce Brewer's signing of the incentive bill, Mackay said.

"When GPEC made that announcement, it was a whole different ballgame," she said. "The room was packed with (companies) waiting for Arizona to come up with legislation. GPEC got 30 appointments the first day."

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