Repaying incentives: Governor wants to get back ‘every red cent’ from Dell
by Paul Johnson and David Nivens
9 months ago | 670 views | 2 2 comments | 5 5 recommendations | email to a friend | print
TRIAD – Now that Dell Inc. is walking away from its computer manufacturing plant that was supposed to become an anchor of the Triad’s economy, state and area officials have shifted toward getting economic incentives money back from the company.

Dell was pledged the largest, combined state and local incentives package in North Carolina history when the Texas-based computer conglomerate agreed to build its plant in southeastern Winston-Salem. The plant, opened four years ago this month, is near Union Cross Road and U.S. 311, about five miles from the High Point city limit.

On Wednesday, Dell announced it will close the plant by January, costing 905 workers their jobs as part of a corporate cost-cutting move. Five years ago, Dell was pledged $243 million in state incentives and $38 million from Winston-Salem and Forsyth County, though payments to the company would be phased in during many years.

Dell spokesman David Frink said Thursday that company representatives will meet with state and area government officials to review incentives agreements.

“Dell will continue to comply with and honor terms of agreements that are in place. That’s the extent of the statement we’ll make,” Frink told The High Point Enterprise. “Information regarding payments made by the city/county/state should come from those entities.”

Gov. Beverly Perdue said Thursday she “will go to bed every night hoping to get every red cent back that Dell has received.”

State officials hadn’t provided figures on incentives so far paid to Dell by late Thursday afternoon.

HondaJet and other Triad-based industries that took advantage of incentives are doing well, Perdue said after her address to a health care group in Greensboro.

“Many companies would not be here without incentives. Incentives are the standard across America, and North Carolina is going to play,” said Perdue, who was lieutenant governor when Dell was offered its incentives.

Winston-Salem Mayor Allen Joines, who helped recruit Dell, said Winston-Salem and Forsyth County leaders will begin steps to recoup local money.

“The city, the county and the community will get reimbursed every dollar we put into the project,” Joines told WXII-TV, adding that for the city, that’s $15.5 million and the county, about $7.5 million.

pjohnson@hpe.com | 888-3528

dnivens@hpe.com | 888-3626
comments (2)
« snuffbox1 wrote on Tuesday, Oct 20 at 07:31 AM »
Our governor is overseas, like Easley did, trying to get companies to relocate in N.C. Maybe they can help her out in her effort to get back all the money she gave Dell. She is now being investigated, like Easley, and she will get caught also for her wrongdoings.
« southern yankee wrote on Friday, Oct 09 at 08:59 AM »
I hope some podunk lawyer didn't write this agreement, or you'll never see anything more than what's "allowed" under it. Unfortunate, because there should be a stiff penalty for them which would provide interest back to the city, county and state. It should have been a red flag when they breached the agreement by not providing all the jobs they were supposed to. Corporate America wins again.