Corporate Welfare Weekly
Corporate Welfare Weekly: Issue 60
Elizabeth Lincicome
Jul 27th, 2010
Oblivious to the fact that the U.S. Supreme Court is in the process of hearing arguments for a law that would ban sales of violent videogames to minors, North Carolina just approved an incentives deal for the industry. Last Thursday, Gov. Bev Perdue signed off on a bill that gives even more taxpayer dollars away, and this time it’s to video game producers. Apparently, North Carolina is now actively luring the video game industry to the state.
Corporate Welfare Weekly Issue 59
Elizabeth Lincicome
Jul 22nd, 2010
News of North Carolina’s most recent corporate handout came Tuesday afternoon as state officials voted to award Hatteras Yachts up to $3 million in incentives. Craven County, where the plant will be located, is also giving the company $900,000 in incentive money. The boat maker, a division of Brunswick Corp., shed hundreds of jobs in North Carolina during the recent economic downturn. The company however feels the recession is over and they believe the demand for recreational boats is improving. Meanwhile, on Monday state and local officials announced that medical-device maker Becton, Dickinson (BD) will open a massive distribution center in the Johnston County town of Four Oaks.
Corporate Welfare Weekly Issue 58
Elizabeth Lincicome
Jul 13th, 2010
As reported in the Charlotte Observer, IBM will add and fill 600 additional jobs at its RTP campus over the next two years. Gov. Perdue announced last Thursday that NC has promised the technology company as much as $7.79 million in incentives if the company meets its hiring goals and retains the jobs over the next 10 years. But why do large, successful corporations like IBM keep receiving these perks, while small business owners can barely stay afloat in what continues to be a harsh economic climate?
Corporate Welfare Weekly - July 5th, 2010 – Issue 57
Elizabeth Lincicome
Jul 5th, 2010
NCICL wants to thank Shelley Gonzalez for her work on Corporate Welfare Weekly over the past year. Shelley’s outstanding effort has dramatically improved the CWW email newsletter and we are very appreciative for all Shelley has done for NCICL. We wish her luck in her exciting new job and recent move to Arizona. Shelley is working at the U.S. Airways Headquarters in Tempe, Arizona as a Sales and Planning Analyst. Her responsibilities include managing large databases, forecasting, and ad-hoc analysis for Caribbean, Latin America, and European sales. This includes maximizing revenue and minimizing costs through a variety of travel agency sales programs. Shelley will conduct market research, monitor the effectiveness of current sales programs, and identify ways to improve these programs.
Corporate Welfare Weekly - June 28th, 2010 – Issue 56
Shelley Gonzales
Jun 28th, 2010
$3,700,000 of the $23 million in Dell incentives paybacks may be given to Caterpillar, Inc. to entice the company to expand in Winston-Salem. Another $6.7 million of the paybacks may be used for infrastructure improvements.Winston-Salem is one of three cities in the running for an upcoming Caterpillar expansion. The heavy equipment manufacturer is expected to announce its choice by August. Dell repaid $15.5 million to the city of Winston-Salem and $7.9 million to Forsyth County. ~ Richard Craver, Winston-Salem Journal, June 26, 2010
Corporate Welfare Weekly - June 21th, 2010 – Issue 55
Shelley Gonzales
Jun 21st, 2010
$1,100,000 in state tax breaks through the Job Development Investment Grant has been awarded to Magna International Inc. The Canadian auto parts manufacturer will be expanding three factories in Rowan, Catawba, and Caldwell County and add 330 jobs. ~ Emery P. Dalesio, Asheville Citizen Times, June 15, 2010
Corporate Welfare Weekly - June 14th, 2010 – Issue 54
Shelley Gonzales
Jun 14th, 2010
The Winston-Salem Journal reported that the city’s mayor Allen Joines is seeking approval from Winston-Salem’s city council to use the Dell incentive refunds for more corporate welfare. “With the Dell computer plant in Winston-Salem having remained open past its scheduled closings, the company's refund of $15.5 million in incentives is gravy for the city. But, despite increased demand for the desktop computers the company makes, the plant will eventually close, as have so many others in Northwest North Carolina. Mayor Allen Joines has a good plan about how to best use the refund to create jobs, a plan that should lead to public debate on the issue. In tight economic times, some council members might want to use some of the money for more immediate needs, such as avoiding a tax increase. But for the sake of the city's future economic success, this money should be returned to its original use -- economic development. And yes, that means much of it may be spent on incentives to attract new companies -- an unavoidable part of doing business in today's economy. The city council would have to approve the separate aspects of Joines' plan, which he estimates could create at least 1,000 jobs and would also have a goal of increasing the tax base. It would divide up the refund, which has earned about $210,000 in interest. Joines said it's hard to calculate the total number of jobs his plan would create, but a proposed $1 million for a technology and jobs fund has a goal of creating one job for each $1,000 invested, he said, or about a thousand jobs. Incentives from the fund would be given to technology companies, either existing or new ones, to create high-paying jobs, Joines said.”
Corporate Welfare Weekly - June 7th, 2010 – Issue 53
Shelley Gonzales
Jun 7th, 2010
The Triangle Business Journal reported that twelve companies that were awarded JDIG benefits for expansion have lost those benefits for not creating the promised number of jobs. “The fine print written into each of the awards granted under North Carolina’s Job Development Investment Grant program is being put to the test. In a down economy, with companies failing to create the jobs they promised, contracts that had promised millions of dollars in state incentives are being ripped apart. Since January, JDIG agreements with 12 companies around the state have been terminated. From the state budget perspective, that’s good news: The 12 companies had been promised a total of $38.8 million in cash grants. For the state, it’s bad news: 3,552 promised jobs have not materialized. Most of these companies were awarded the grants in 2005, 2006 and 2007 when the economy was growing at a rapid clip and companies were anticipating more expansion.”
Corporate Welfare Weekly - June 1st, 2010 – Issue 52
Shelley Gonzales
Jun 1st, 2010
$92,800 in potential incentives to WhiteRidge Plastics. The Reidsville plastic blow molding company has been granted $45,000 from the state’s One North Carolina Fund and could receive $23,637 fromRockingham County as well as $24,134 from the City of Reidsville to expand its Reidsville plant. This is yet another example of state and local governments offering incentives for low-paying jobs. ~ Richard Craver, Winston-Salem Journal, May 27, 2010
Corporate Welfare Weekly - May 23rd, 2010 – Issue 51
Shelley Gonzales
May 23rd, 2010
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.”
Corporate Welfare Weekly - May 16th, 2010 – Issue 50
Shelley Gonzales
May 16th, 2010
$500,000 in property tax incentives has been approved for a baseball complex in Mooresville. A development group plans to build the $20 million complex between Mooresville and Troutman by 2012. Mooresville commissioners approved the incentives package with a 4-1 vote. The incentives will be disbursed over ten years. ~ Joe Marusak, Charlotte Observer, May 13, 2010
Corporate Welfare Weekly - May 10th, 2010 – Issue 49
Shelley Gonzales
May 10th, 2010
Happy Mother’s Week! Dear Corporate Welfare Weekly Recipients, We dedicate this week to the women of North Carolina! Thank you ladies for all of your hard work! Sincerely, NCICL Special announcement! Please note that you will be receiving all future issues of the Corporate Welfare Weekly on Sundays!
Corporate Welfare Weekly - May 3rd, 2010 – Issue 48
Shelley Gonzales
May 3rd, 2010
According to the Fayetteville Observer, Goodyear is seeking to lay off up to 70 employees! The “voluntary” layoffs are related to company upgrades. The February 1st issue of the Corporate Welfare Weekly explained that both Goodyear Tire and Bridgestone Americas were about to receive their first $2.5 million in incentive payments for job retention. So what's the deal? “Goodyear Tire & Rubber Co. has asked for about 70 employees in Fayetteville to sign up for a voluntary layoff related to the company's continued shift from basic tires toward fancier versions. Plant spokesman Richard Evans said in a statement that the action is "in response to an increase in production of premium brand tires that are built on the plant's more highly automated equipment." "The increase in production of premium brand tires, or high value-added tires, will result in the idling of some less-automated machinery," according to his statement. As a result, some workers will be shifted to other areas of the plant, Evans said. The deadline to sign up for the layoff - expected to start in early May - is this week, he said. Evans indicated it is not known at this time how long those layoffs will last. The plant employs about 3,000 people.”
Corporate Welfare Weekly - April 26th, 2010 – Issue 47
Shelley Gonzales
Apr 26th, 2010
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
Corporate Welfare Weekly - April 19th, 2010 – Issue 46
Shelley Gonzales
Apr 19th, 2010
$6,000,000 in incentives is being sought by American Express from the Guilford County Board of Commissioners. The New York-based credit card company is seeking a site to build a $400 million data-services operation that could employ up to 150 people. A public hearing is set for May 6 to consider the request. Amex will also seek incentives from the city of Greensboro. The amount is not yet known. The project will not produce enough jobs to qualify for state incentives. ~ Donald W. Patterson, News & Record, April 17, 2010