It's simple negotiation; you may lose some money on that one deal, but you'll gain more in the end by not decreasing the value of all subsequent deals.
It's almost like taxing easily-moveable economic activity is a bad idea.
A lot of what makes NYC great (like the 24/7 public transit system, the best in the country) costs serious money to operate. You need to get that money from tax revenue.
And businesses aren't actually easily-movable, not at all.
Most of which were present there because they set up a long time ago. The current environment makes it so that you pretty much have to get a discount to make it worth starting there, per the famous reddit comment:
https://www.reddit.com/r/nyc/comments/9wploz/ocasiocortez_bl...
>And businesses aren't actually easily-movable, not at all.
"Where they decide to locate new offices" is.
https://www.npr.org/sections/money/2018/11/16/668769284/epis...
Kansas City is at least a well known name in the tech world now, when there's plenty of other midwest cities of similar size that rarely get brought up.
Millions would be a steal for the revenue becoming a tech hub would bring in. Even if it does take a more than a decade to be realized.
Cities of similar size: Albuquerque, Milwaukee, Louisville, Oklahoma City (and more).
Out of these, Kansas City comes up more often tech wise. I waste a good bit of time on sites like this discussing tech related matters, and not once have I read an article involving any of these cities.
This is why I said well known and on the map, not 'popular'.
Obviously the truth is that there are bad aspects of a race to the bottom as well as positive attributes. Finding the balance requires nuance and grace by the leaders who navigate these uncertain waters.