Corporate Welfare Weekly - April 26th, 2010 – Issue 47

Recent Announcements…

So far, Celgard incentives total $57,850,000

$1,900,000 in local incentives has been approved for Celgard, LLC by the Cabarrus County Board of Commissioners. The county grants include more than $1.6 million in tax breaks and $350,000 in cash grants. The county board voted 4-1 to approve the package on April 19. Celgard has already been granted $49.2 million from the U.S. Department of Energy, a $1.2 million grant from the city of Concord, $4.6 million from North Carolina’s Job Development Investment Grant (JDIG), and $955,000from the state’s One North Carolina Fund.

                ~ Karen Cimino Wilson, Independent Tribune, April 20, 2010

$13,000,000 in incentives could be granted to American Express from Guilford County and the city of Greensboro. The credit card company initially sought $6,000,000 from the local governments to help them build a new data center in Guilford County, but it turns out they may actually get much more than they asked for. Guilford County may put up $6 million and Greensboro may offer a package between$5 million and $7 million. The Guilford County package would be the largest in the county’s history. Previously, the largest county incentive was $2 million. The public hearing to discuss the incentives package is scheduled for Tuesday, May 4.

                ~Donald W. Patterson & Richard M. Barron, News & Record, April 20, 2010

$6,200,000 in economic incentives has been approved by the Winston-Salem City Council for Wake Forest University and Wexford Science and Technology to turn a former Tobacco tool-operation building into laboratories and offices. The incentives will come from money paid in property taxes on the building after it is developed.

                ~ Laura Graff, Winston-Salem Journal, April 20, 2010

$226,464 in total incentives has been approved for Greiner Bio-One North America Inc. to expand its Monroe operations. The Austria-based medical device and lab equipment manufacturer has been granted $126,464 from Union County and $100,000 from the state’s One North Carolina Fund. The county grant will be paid over five years.

                ~ Charlotte Business Journal, April 21, 2010

$200,000 in incentives has been granted to MasterBrand Cabinets, Inc. from the state’s One North Carolina Fund. The kitchen and bath cabinet manufacturer will be expanding its facility in Lenoir County. One North Carolina Fund grants are contingent on local matches.

                ~ Governor of North Carolina, April 23, 2010

$135,000 in incentives has been granted to Spectrum Mills LLC from the state’s One North Carolina Fund. The specialty yarns maker plans to create 49 jobs in McDowell County.

                ~ McDowell News, April 26, 2010

Quotes of the Week…

"Free enterprise should succeed or fail based on its own merits. Extending governmental privileges to certain companies at the expense of others reeks of corporate fascism. … Government should protect free enterprise from force and fraud instead of distorting the market with corporate welfare schemes. Reducing regulations and property tax rates will encourage businesses to invest in the county. … I'm for free markets. … If there's a role for government to play in the economy it's to provide a level playing field."

~ Thomas Hill, a representative from the Libertarian Party of Cabarrus County and candidate for U.S. Congress in District 8. Mr. Hill was quoted by BlueNC regarding the Celgard incentives grants.

“Government does not need to be in the business of charity, whether it be for individuals or businesses. …Anytime we do tax incentives, anytime we do corporate incentives, it is nothing more than wealth redistribution. … We’ve perhaps been prostituting ourselves for big business.”

~ Thomas Sheppard, Cabarrus County Board of Commissioners candidate, as quoted by theIndependent Tribune. The quote is regarding the Celgard incentives grants.

“I believe it’s unethical to provide incentives whether it’s tax rebates or cash money and that not being available for other businesses. We just have a moral problem with where the money comes from. It came out of the private sector. You took it out of one pocket and gave it to another.”

~ Thomas Hill, as quoted by the Independent Tribune, speaking about the Celgard incentives grants. Mr. Hill is a representative from the Libertarian Party of Cabarrus County

“I’m here in support of incentives. I don’t like them, but the U.S. Supreme Court has decided they’re legal.”

~ Wayne King, a local Concord resident quoted by the Salisbury Post regarding the Celgard incentives.

Toyota supplier expands without incentives…this time

The News & Observer reported on April 23 that a large local Toyota parts supplier will be expanding its operations without receiving any incentives from the state or local governments.

“One of the Triangle's largest manufacturers will add hundreds of jobs over the next two years and invest more than $100 million in its Durham plant after being awarded a contract from beleaguered auto maker Toyota. …

AW's jobs announcement Thursday was unusual in that the company is not receiving money from either the state's One North Carolina Fund or a Job Development Investment Grant.

As it did in 2000, AW will qualify for some other job-creation tax credits and worker-training assistance. Collins said the company didn't think it would qualify for other incentives.”

While AW North Carolina did not ask for any incentives for the current expansion, another News & Observer article reported the company received $16.75 million in tax credits and other incentives when it initially opened its plant in Durham’s Treyburn Industrial Park in 2000.