There is no land with 100 miles of Silicon Valley where you could "build a town". Supposing they went the necessary distance (500 miles, or even more, into Nevada perhaps) how practical would it be to get 1000s of employees to relocate to live in a "company town" in the middle of nowhere?
Plus once you do it you have all the room you need to expand build towers, create housing etc.
It doesn't even need to be something very complex at first just something quick and dirty to see if it's a valid solution.
I find it amazing that there's no large areas of land for sale withing a 100 miles of Silicon Valley.
As for as employee relocation is concerned don't they already have to relocate to SF and the surrounding suburbs to work there?
Yes, and they choose to live in San Francisco, with bars, members of both sexes, restaurants, museums, parks, baseball, etc...
How fun do you think this theoretical company town is going to be for someone in their 20s?
So, in practice, you're asking "Why doesn't Google just pack up and move to Nevada or Kansas City?" Such a move would probably be highly disruptive to business (probably at least two months of lost productivity (even if you pay relocation consultants to handle everything) for all employees being moved, and you're talking about moving substantially all employees).
Source -- I work for a company that moved it's office from the South Bay to the City and a lot of people quit.
Because they've weighed all the options and decided that's not the best thing for their business.
This is what many people simply don't understand. Businesses are profit-maximizers and it simply makes economic sense for them to be located in the Bay Area.
One may not like the cost of housing, and businesses may have to pay employees more to live in the Bay Area, but overall the advantages outweigh the disadvantages.
If SF is being so hostile towards basically the driving engine of their local economy the best option is to relocate to a place where there are fewer restriction.
A build your own small city kind of situation. They can certainly afford it.
It's win-win Google gets their employes close to the office the employees get cheaper housing and if it's a large enough community you will be getting new people coming in opening shops and other stuff to take advantage of the demand.
The only one slightly worse off is SF with all the money leaving the place but it's not like they appreciate what they have now anyway.