Dell sucks another $7m out of North Carolina (bringing the total to $284m)

[Robbien]

After pumping North Carolina for more than $270m, Dell decided it wasn't done yet. Actually pay for the land its new factory will sit on? Hell, no!

In a confusing exchange deal, Dell will "pay" the city of Winston-Salem $7m for land in return for $7m worth of roads and grants from the city to Dell, so it gains the 200-acre factory site for free. Dell currently faces a massive lawsuit over other parts of the North Carolina package.

. . .

"Now, Dell pays us directly for the land," said Derwick Paige, assistant city manager of Winston-Salem confirmed in an interview with us. "However, of the $7m that they pay us, we will put all the money in a general fund and take $1.5m to put toward infrastructure improvements and the other $5.5m we'll give to them over a two year period in the form of grants."

With the extra $7m, Dell's total North Carolina incentives package now comes to $284m. That's $244m more than Virginia, the second leading bidder for Dell's factory, was reportedly willing to offer.

Dell's package includes the land money, tax breaks, police protection, special Dell training classes at local colleges, new roads and a host of other fixes. In return, Dell could deliver as many as 1,600 jobs to the city, although it can fire close to half that amount and maintain the package perks. Locals have complained that the company has received unfair advantages that will harm smaller businesses. The net benefit for employment in the city is far from clear.

http://www.theregister.co.uk/2005/07/21/dell_land_nc/

[Tux]

1. LOL

Dell's package includes the land money, tax breaks, police protection, special Dell training classes at local colleges, new roads and a host of other fixes. In return, Dell could deliver as many as 1,600 jobs to the city, although it can fire close to half that amount and maintain the package perks.

Glad I no longer work there. All I heard was that Dell needed the assistance. Afterall, how can an unethical, multi-billion dollar corporations be excepted to buy anything AND provide health insurance? That's be communist. Build your own from now on. Not that hard.

[MercutioATC]

2. Dell didn't "suck" anything out on N.C. - N.C. GAVE it to them.

Unfortunately, communities and states are willing to grant these kinds of breaks to companies in exchange for a few jobs. If N.C. didn't do it, somebody would have.

It's only going to get worse...

[izzie]

3. Didn't they do this in Tex. also

:shrug:

[catabryna]

4. You are correct...

And,you can see the results of the deal by looking at all the highway construction at IH 35 and FM 1325 in Round Rock, TX. Dell continues to provide incentives for companies that complete their contracts ahead of schedule. It's quite a large project.

Now, of course, one might say that having Dell in Round Rock was the cause of the traffic problems, but I believe the traffic was bound to happen eventually because the area is a bedroom community of Austin.

on edit *Disclaimer - opinion slightly jaded*: I'm not a huge fan of Dell's politics and I'm pissed about his outsourcing of jobs, but I'm not sure what is meant by the "health insurance" reference. One thing is certain, Dell has great medical benefits that nearly covered the entire cost of my husband's cancer treatment for 2 years before he passed away.

[formercia]

5. Something similar happened here in Maine

Digital Equipment sold their plant in Augusta to a contract manufacturer with the stipulation that the state would give them all kinds of tax breaks and 'training grants.' They milked it for all it was worth, then abandoned the plant and moved their operation offshore. Bunch of scum sucking parasites.
Digital made out well too. They wouldn't allow any of the employees to transfer to other plants. The whole idea was to eliminate all of their accumulated employee liability. They sold us like slaves, we were milked to death by our new masters then thrown out into the street.

Welkom to Amerika

[bdot]

6. It's screwed up the town.

My parents live 3 miles from the place. My old high school is next to it. Dell came in then demanded the city make new roads. They demanded the city remove the exits to the school and make all new roads to it too. They demanded more land. The city naturally bows down and hands everything to them.
Then they supply the area with minimum wage jobs and state how they are helping the local people have work.
Yeah, now the local people can't afford the taxes for all the roads and buildings that they want.