Capital One Corporate Office Expansion Fiscal and Tax Impact Analysis
Capital One, a Virginia-based, multinational financial institution hired RKG Associates to perform an economic and tax revenue impact analysis regarding its planned corporate campus expansion in Henrico, VA (near Richmond). The project, which would go on to be recognized as the large single corporate expansion project in Virginia's history, represented an investment of over $920 million in new construction over ten years.
RKG's analysis employed an econometric policy simulation model that measured the regional and state impacts of various policy actions or economic events. The model's outputs allowed RKG to forecast the economic benefits associated with the proposed expansion: added jobs, increases to the area's gross payroll, indirect employment impacts, Gross State Product (GSP) impacts, and potential changes to the local and statewide tax revenues. The planned expansion was forecasted by RKG to add nearly $1.1 billion to Virginia's GSP upon completion, with local and state tax revenues set to increase by nearly $580 million over ten years.
RKG's analysis was part of a submission package that helped Capital One to secure tens of millions of dollars in state infrastructure commitments, funding that enabled the project, now known as West Creek, to take root.
The 2.2 million square foot project, now completed, was projected to create nearly 8,000 jobs.
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