OKC Chamber: Kern spooks big biz relocation consultant
Journal Record
April 16, 2008

OKLAHOMA CITY – A San Francisco Bay-area financial services company has not yet ruled out Oklahoma City for a major office relocation, a vice president of a real estate search firm confirmed. A decision is expected in three to four weeks.

But Tom Maloney, vice president of California-based Staubach Co., would neither confirm nor deny that the 1,000-employee, AAA-rated client company’s top executive is a lesbian who expressed concern over Oklahoma Rep. Sally Kern’s recent anti-homosexual statements, as has been the topic circulating among local business leaders.

Roy Williams, president of the Greater Oklahoma City Chamber, said the issue is a major concern the chamber is trying to address. He confirmed a Staubach consultant was troubled by Kern’s comments during a recent visit to the city.“He told us straight up … ‘I cannot recommend to any of my clients that they should consider Oklahoma City because of that,’” Williams said.

“When you have one of the nation’s premier relocation experts making those statements, you should pay attention to that and not dismiss it.“And that’s immediately what happened: People said, ‘Well, then tell them not to come here.’

The problem with that is they (relocating firms) represent many of the Fortune 500 companies. And to be so dismissive of something that’s a lot more sincere than people are giving credit, to me, shows a lack of understanding of what’s really going on.”

Kern’s comments in March gained attention nationwide after her screed before a small audience was recorded and posted on the video-sharing Web site YouTube. She called homosexuality a greater threat than terrorism.

“Not everybody’s lifestyle is equal, just like not all religions are equal,” Kern said. “No society that has totally embraced homosexuality has lasted more than, you know, a few decades. So it’s the death knell of this country.”

Williams confirmed a Staubach representative was invited to Oklahoma shortly thereafter, but it was not directly related to Kern. He said the state Department of Commerce was seeking consultants to meet with Gov. Brad Henry’s economic development team to discuss a wide range of issues.

Williams did not attend the meeting, but the chamber was one of the sponsors of the dinner event so he received a lot of feedback.“ He was here as a guest, to pick his brain,” Williams said. “It was just an unbelievable coincidence that it happened like that.”

At the Commerce Department, Business Services Deputy Director Sandy Pratt said it’s not unusual to bring business placement consultants such as Staubach to the state for feedback. Of the new businesses looking to come into Oklahoma, 40 percent to 50 percent are represented by site relocation specialists, she said. But she said Kern’s comments have not been raised as a concern: “It did not come up in any of the governor’s economic development team meetings with consultants or discussions we’ve had with consultants,” Pratt said.“We really try to focus on the positive attributes of the state. … We work with clients, and from time to time there always challenges and issues related to specific sites or incentives or other things around the state,” she said.

The significance of the Staubach visit to Oklahoma has grown with e-mail rumors.

A representative of a national gay-lesbian-bisexual-transgender (GLBT) organization said notes are being circulated that the unidentified company is actually a motorist group – skewing references to the company’s triple-A credit rating – that 6,000 jobs are involved, and that the executive stormed out of the meeting in anger.

When asked about Kern’s recorded statements and their effect on any potential company relocations to Oklahoma City, Maloney said, “I’ve got no comment as to what, if any, impact that they’ve had.”

Maloney had little to say on his current project either, other than to confirm that Oklahoma City is “still on the list” and that a decision about his client’s relocation is expected in three or four weeks.

Jeb Conrad, executive director of the Indianapolis Economic Development agency, confirmed Indianapolis is also a finalist for the same financial services office relocation.“Their (Staubach’s) reputation and respect, and the fact that we’ve had interaction with them before, gave us a high comfort level that we weren’t just competing for a dog of a company. … We have faith in this company that it’s going to be a quality opportunity,” Conrad said. “Indianapolis and Oklahoma City both have some good insurance and back-office opportunities, and very similar cost factors and real estate, versus the cost element that’s associated with San Francisco.

“From my understanding from the consultant, we’ve both put pretty good deals on the table,” Conrad said. Williams said business relocations to Oklahoma City have slowed down, as they have nationwide. “There’s still a fair number of announcements that happen. But it is not the way it was three, four or five years ago,” he said. “It has slowed down a little bit, which generally reflects the economic situation nationally. As a result, we have fewer relocation announcements than what we’ve had. I see that in talking with my colleagues everywhere.”The downturn in relocations has been counterbalanced by the expansion of existing companies and rise in entrepreneurship, he said, helping the city gain a net 12,000 new jobs in the past year.

Pratt and Williams cited the state’s college work force, low cost of living, financial incentives and high per capita income as attractive elements. The city’s quality of life is improving as well, Williams said, with a wider ranger of leisure activities and creative outlets.

As for Kern’s comments, “They no doubt send a message out there that no city wants to send, and that is one of divisiveness instead of unitedness,” he said.

For the last five years, the chamber has made a greater effort “to embrace differences and embrace diversity, to build a community that is open and welcoming to anyone.” “What we’re trying to do is show people what happens here and the real experience, as opposed to one person’s opinion. Because when we bring a company in, we encourage them to talk with HR (human resources) people and CEOs, to ask them pointed questions about these kinds of issues,” Williams said. “The way the community operates and functions is quite different from what one or two people may wish it were.”

Kern was not immediately available for comment.