Corporate Welfare Weekly - October 2, 2009 – Issue 18

$1,300,000 was ultimately approved by Guilford County commissioners for a controversial economic incentives plan. As a result of Thursday’s 8-3 vote, $1.3 million in county funds will be set aside in the 2009-2010 budget for small businesses making property value improvements in excess of $10,000. Commissioners Paul Gibson, Kirk Perkins and Billy Yow voted against the plan.

            ~ Gerald Witt, News & Record, October 2, 2009

$4,000,000 in financial incentives was granted to cereal maker Malt-O-Meal from Randolph County for their new production facility and the company will receive an additional $1,090,000 from the state. The Department of Transportation has also awarded an undisclosed amount of additional grant money to help Malt-O-Meal build a railroad spur to the new production facility.

            ~ The Business Journal, September 21, 2009

$50,200 was granted to UFS Holdings – Premiere Fibers Inc. from the One North Carolina Fund to expand their operations in Ansonville. The company produces synthetic yarn for multiple markets.

            ~ David Horn, North Carolina News Network, September 29, 2009

A performance-based grant (undisclosed amount) has been awarded to Digital Repair, LLC from the Carolinas Gateway Partnership. The grant was given to convince the company to open their two headquarters offices in Nash and Edgecombe Counties. Carolinas Gateway Partnership is a public/private corporation formed to promote economic development in the Twin Counties.

            ~ John Henderson, Rocky Mount Telegram, September 24, 2009

Quote of the week…

“I’m not trying to practice law in North Carolina, but I can’t see that it rises to the public good.”

~ Guilford County Commissioner Paul Gibson, speaking against the recent passing of the embattled $1.3 million business incentives plan

Discouraging Tidbit…

The Dispatch, a Davidson County news source, reported in an article written by Seth Stratton that more jobs are being cut in North Carolina.

 “ATM and bank security manufacturer, Diebold, is cutting approximately 100 positions from its facility in the Lexington Business Center near the south side of the city. … Lexington and Davidson County approved separate incentives packages worth more than $60,000 each over five years in May 2008 for a 30,000-square foot expansion for the addition of the security-equipment lines but reportedly never signed the contract for a $4.5 to $4.7 million investment.”

            ~ Seth Stratton, The Dispatch, September 28, 2009

Around the Country…

In an article by the Associated Press, business writer Alan Sayre wrote that North Carolina-based Nucor Corporation will likely choose southeastern Louisiana for their new pig iron plant.

“Nucor Corp. has bought 90 percent of the land it would need to locate a pig iron production plant in southeastern Louisiana, one of the state’s largest economic development projects ever, state officials said Monday. … The state is offering a yet-to-be-disclosed economic incentive package for the company”

            ~ Alan Sayre, Associated Press, September 28, 2009