I'm just running off personal experience here (I've been through the Velocity Residence and Eng), but of the 10 smartest kids I know, all but one is in The Valley/Seattle. I think they plan to stay South after graduation.
Why do you think you can you get better talent? Less competition? People want to be closer to home? You can offer more in perks, salary, ect compared to local companies?
Ps. Sick boots in that lederhosen picture.