States may dangle the tax carrots, but localities could be the ones paying for road and utility improvements. The costs for that could be much less than projected gains in tax revenue, but that's a gamble. Not to mention being left with abandoned buildings. We didn't even need to have a bubble pop to see abandoned facilities. If one company goes out of business (normal in a healthy economy), there's little we can (and politicians are willing to) do to make sure defunct companies clean up any messes.