Corporate Welfare Weekly - August 28, 2009 – Issue 13

Recent Announcements…

Governor Perdue signs film credit bill. The bill increases the tax credit for movie and TV productions from 15% to 25%.

            ~Gary D. Robertson, Associated Press, News & Record, August 27, 2009

$3,500,000 to the Neighborhood Assistance Corporation of America (NACA) for on-the-job training. Originally in June, the state announced NACA would receive $1 million, but that figure skyrocketed to $3.5 million this month.

            ~Rick Rothacker, Charlotte Observer, August 26, 2009

Fayetteville-Cumberland County Chamber of Commerce is writing a new incentives policy to help the local government lure Fayetteville’s first luxury, full-service hotel to the area. According to Chamber of Commerce President Doug Peters, there are two potential projects in the making that stand to benefit from the incentives.

            ~Andrew Barksdale, Fayetteville Observer, August 23, 2009

Thomasville City Council offers incentives for any business investment as little as $50,000.  

            ~Darrick Ignasiak, High Point Enterprise, August 20, 2009

Guilford County Board of Commissioners to rethink the $1.3 million incentives proposal due to questions of the proposal’s legality. The Board will discuss the incentives again on September 3^rd.

            ~Steve Ivey, Business Journal, August 28, 2009

New company to seek out state and local incentives for project. Camber Ridge, a soon-to-be launched company, is planning to open a new tire-testing facility in the Charlotte area. The exact location for the facility has not yet been determined. The incentives will be sought once the list of possible locations has been narrowed down.

            ~Kirsten Valle, That’s Racin, August 27, 2009

Quotes of the week…

“Our state’s lawmakers have adopted the policy of going broke for economic development and have forgotten about working North Carolinians in the process…It is unfair to taxpayers and small businesses within North Carolina to be saddled with the burden of paying for corporate welfare so that big business will come to our state. This money from the tax packages would be more beneficial in providing tax relief and business development and sustainability programs for home grown industries.”

~Jason Kessler, “Going Broke for Economic Development,” the Jacksonian, August 14, 2009

“They’re a little bit short.”

~Kathy Scott, Executive Director of Roanoke Valley’s Economic Development Department. Scott recommended the city council extend an incentives agreement with Halifax Linen Service until February 8, 2010 because the company did not perform as expected. In 2006, the company received an $81,000 grant from the One North Carolina Fund.

Encouraging Tidbits…

Downtown Pioneers LLC, a Gastonia-based developer, rejected the city of Monroe’s offer to provide incentive grants to the company. Nathan Kirby, the managing member of the company, decided instead to take a $1.2 million loan from the city. The company may, however, still accept some state and federal tax breaks.

            ~Ken Elkins, Charlotte Business Journal, August 21, 2009

Sara Lee plant is expanding its Tarboro plant. The company will invest $11 million and hire for 45 new full-time positions without any incentives from the state or local governments.

            ~John Henderson, Rocky Mount Telegram, August 27, 2009