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Cost of Doing Business: Are Incentives Good or Bad?

11:22 PM, Sep 19, 2013   |    comments
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GREENSBORO, NC -- There's a cost of attracting new businesses to the area.  That's according to a lot of our city and county leaders in the Triad.

Guilford County Commissioners decided to delay hearing from the public about an incentives package for furniture company, BuzziSpace at their meeting Thursday night.

The company is considering setting up shop in the old Picket Cotton Mill on Redding Drive in High Point. The company promises 113 jobs at a salary of $41,011 on average.

Monday night, the city of High Point passed a $162,000 package. Guilford County wants to offer an incentive package worth $113,000.

As cities and counties shell out more and more in incentives, WFMY News 2 wanted to know whether it was worth it. 

Let's take a look just at the city of Greensboro, even though they're not involved in Thursday's discussion on incentives.

A few weeks ago, city leaders traveled 190 miles to Greenville, SC. Greenville has been pretty successful at attracting new companies, and Greensboro city leaders wanted to know how they do it. 

WFMY News 2's Chad Silber called Kevin Landmesser, who is in charge of development in Greenville. Landmesser said every company expects incentives. He also says about a third of manufacturing companies that apply for incentives, get them at an average of 40% reduced from their annual taxes.

Greensboro Mayor Robbie Perkins agrees that it's simply the cost of doing business. "They're looking for something typically a little extra just to show that the community that they're moving into, they really care. It's an investment we're making to bring jobs to our citizens."

We reached out to the Greensboro Economic Development Alliance. Right now, the city has at least three incentive deals already on the books, including the one from February where city council voted unanimously to approve a $961,000 incentives deal for Procter & Gamble to expand in Guilford County.

 

 

 

 

 

 

 

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