Corporate Welfare Weekly

Corporate Welfare Weekly: Issue 64
Elizabeth Lincicome
Aug 26th, 2010

Last week Gov. Bev Perdue and U.S. Rep. David Price helped the international risk management-consulting firm IEM celebrate the opening of its new headquarters facility in Research Triangle Park. The state has offered IEM $9 million in economic development incentives if meets its job and investment targets over the next 12 years.

Corporate Welfare Weekly: Issue 63
Elizabeth Lincicome
Aug 19th, 2010

Sanderson Farms, which said earlier this year it would build a second poultry-processing plant near Goldsboro, has now widened its site search to include areas near Rocky Mount. How much state incentives money is on the table remains to be seen. The state already awarded Lenoir County and Kinston $1.5 million in incentives to support Sanderson’s initial plant in Kinston, which is scheduled to open in January. Neither Nash nor Wayne County officials have pledged financial support for the second Sanderson plant, so chances are taxpayer funded giveaways are somehow involved.

Corporate Welfare Weekly: Issue 62
Elizabeth Lincicome
Aug 10th, 2010

Officials of the Greater Raleigh Convention Center and Visitors Bureau have asked that contributions to its Business Development Fund, which it uses to offer incentives and discounts to attract events, more than double from $350,000 to $750,000.

Corporate Welfare Weekly: Issue 61
Elizabeth Lincicome
Aug 5th, 2010

As if the state hasn’t offered Caterpillar enough corporate welfare lately, on Thursday Gov. Perdue is scheduled to make another incentives announcement at their Sanford plant. Caterpillar has been considering expanding the plant and the Lee County Commissioners have reportedly approved a $900,000 grant in the form of a Job Development Investment Grant (JDIG) for the proposed project.

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