Corporate Welfare Weekly - May 23rd, 2010 – Issue 51

Recent Announcements…

 

$3,500,000 in potential incentives for Vitacost.com Inc. from state and local governments. The Boca Raton, Florida-based company is a manufacturer, distributor and online retailer of vitamins, and herbal and other health-supplements. The company can collect up to $450,000 from the state’s One North Carolina Fund and $250,000 from both the City of Lexington and Davidson County to double its operations. The company is also eligible for up to $2.5 million in incentives from the state based on "program eligibility."

                ~ Richard Craver, Winston-Salem Journal, May 22, 2010

 

$254,000 in potential incentives to Advanced Textile Solutions from the State of North Carolina and local government grants. The bullet-proof vest and airline seat upholstery manufacturer has been granted $127,000 from the One North Carolina Fund as well as $127,000 in matching incentives from local governments.  The Caldwell County Commission has not yet approved the county's share of the incentives.

                ~ John Murawski and Dan Kane, Charlotte Observer, May 20, 2010

 

Steel framework manufacturer, Supermetal, will be opening a plant in Rock Hill. The Canadian company qualifies for property tax discounts and other incentives, but the value of those incentives has not yet been determined.

                ~ Charlotte Business Journal, May 21, 2010

 

American Express declines lucrative incentives offer

 

The Asheville-Citizen Times reported that American Express has decided to bring their $400 million data services center to North Carolina, but will do so without any incentives from the state and local governments!

 

“American Express is planning to bring a $400 million data services center to North Carolina, and it will do so without the types of incentives many companies look to pry from state and local governments.

 

Multiple media outlets reported Friday the company decided this week to build the facility in eastern Guilford County. It will ultimately employ up to 150 people.

 

American Express already has a Greensboro call center that employs 2,000 workers. Local officials had considered offering up to $13 million in incentives to entice another facility.

 

A company spokeswoman declined to comment on the decision.

 

County Commissioner Paul Gibson praised American Express. He thinks they're building the facility without incentives because it's a good business location.”

 

Incentives granted for barely above minimum wage jobs

 

Apparently, North Carolina thinks low paying jobs are worth incentives. The Asheville-Citizen Timesreported that this is the first time North Carolina has granted incentives for jobs paying less than $20,000 per year.

 

“North Carolina officials have promised to give $127,000 to a textile company that plans to pay workers about $2 above the minimum wage on average.

 

Multiple media outlets reported that Gov. Beverly Perdue's office announced Advanced Textile Solutions was awarded the state incentives for its plans to invest $500,000 in a new Caldwell Countyplant the company expects will create 127 jobs.

 

The News & Observer of Raleigh reported Thursday that the award marks the first time the state has offered money from the One North Carolina Fund for jobs paying an average of less than $20,000 a year.

 

The jobs will pay an average of $19,000 per year, more than $10,000 below the county's average annual wage in 2008.

 

Caldwell County's unemployment rate topped 16 percent in March.”

 

JDIG recipient to lay off workers

 

The News & Observer reported that Durham-based Quintiles Transnational to lay off an undisclosed number of employees.

 

“Durham-based Quintiles Transnational laid off an undisclosed number of employees Thursday as the company looks for more efficient ways to conduct clinical trials for its customers.

 

… State and local officials have promised Quintiles incentives worth up to $25 million over 12 years. Thus far the company has exceeded the requirements of a state incentives package it was awarded in 2006.

 

The company has invested $51 million in its headquarters in the Imperial Center business park off Interstate 40, which opened last year. The state Job Development Investment Grant requires that it invest $54 million by 2013.

 

Bridges said that as of the end of 2009, Quintiles has added 453 employees in three years. The state requirement was 116 new jobs.”

 

Surry County cancels incentives deal

 

The Winston-Salem Journal reported that Surry County decided this week to stop negotiations on an incentives deal with Fibrowatt LLC.

 

“The Surry County Board of Commissioners decided this week to end its negotiations with Fibrowatt LLC over its planned chicken-litter incinerator near Elkin, saying that the company never answered opponents' concerns about the project.

 

The commissioners voted unanimously on Monday to stop negotiating about the project with Fibrowatt officials.

 

Commissioner Paul Johnson, the board's chairman, said yesterday that the Fibrowatt project in Surry is dead.

 

… Several community groups including Elkin residents and the Blue Ridge Environmental Defense League have said that the proposed Fibrowatt plant would produce noxious odors and toxic emissions, and increase truck traffic on rural roads and highways.

 

… The Surry commissioners decided on March 29 that the county would consider withholding incentives for Fibrowatt if the company didn't respond to the concerns of residents who oppose the planned plant.”