Dell may have impact here
By J.D. Walker
Staff Writer, The Courier-Tribune
ASHEBORO - All the buzz about the new Dell computer facility locating
in Forsyth County may have Randolph County residents wondering what it means
for us.
Jobs and the ripple effect of business growth, said Bonnie Renfro, Randolph
County Economic Development Corp. vice president.
Randolph County residents near the Dell facility can apply for jobs that
are expected to pay an average of $28,000 per year. Randolph County businesses
can contract to provide construction expertise now and services later, she
said.
"It's a good win for the state and the region," she said.
On Dec. 22, Dell announced plans to build its North Carolina manufacturing
facility on a 189-acre site on Union Cross Road just off U.S. 311. Construction
of a 500,000-square-foot facility in Alliance Park will begin in January,
with completion expected in fall 2005.
For the advantage of being selected to host the site, Winston-Salem/Forsyth
governments will pony up just over $37 million in grants and cash incentives.
The state will provide Dell with $225 million in tax credits over the
next 15 years. Along with the Computer Manufacturing Tax Credit, Dell will
receive a Job Development Incentive Grant (JDIG) valued at up to $14.1 million
over 12 years, under the terms of the agreement authorized unanimously by
the state Economic Investment Committee.
For each year in which the company meets the required performance targets,
the state will provide a grant equal to 75 percent of the state personal
income withholding taxes derived from the creation of new jobs.
Because Dell will locate in a Tier 4 county, nearly $4.7 million will
go to the state's Industrial
Development Fund for infrastructure improvements in rural North Carolina.
Dell also will receive training assistance from the New and Expanding
Industry Training program, Golden LEAF Foundation and the Piedmont Triad
Workforce Development Boards.
Funding provided by the workforce boards is contingent upon the company
hiring displaced and adult workers. The estimated total cost of all the
incentives is $242.5 million over 20 years based on Dell's current plan.
The incentives are tied to "claw-backs" and conditions. Claw-backs
allow the state government to recover some of the incentive money if Dell
fails to stay in the state for at least 15 years.
Other conditions require Dell to provide proof of certain levels of investment
and employment over the same period before receiving any money.
In exchange, Dell will invest $100 million in the computer complex during
the next five years. The company expects to employ about 700 people in its
first year of operation and up to 1,500 employees within five years.
The Department of Commerce estimates the plant will add $24.5 billion
to the state's economy over 20 years and $743.6 million to state coffers.
A cost-benefit analysis run by the N.C. Department of Commerce indicates
that the Dell plant will generate an additional 6,000 (multiplier) jobs
in the region.
For Randolph County, all this means exposure, said Renfro. While she
doesn't know for certain why Dell apparently did not consider locating in
Randolph, Renfro said it may not matter in the long run.
Other companies are more likely to give the area, including Randolph
County, another look when selecting business sites. The regional glow of
being acceptable to Dell will rub off on Randolph, without the company laying
the first brick inside the county.
Renfro called it a "marquee value" that will put the entire
region on the map for business decision-makers around the world.
"There is no better way to market yourself than to point to a success
like Dell," she said.
Recruitment for the new facility is expected to begin in April 2005.
People interested in working for Dell can go to <http://www.workatDell.com>
. Renfro said businesses interested in providing a service or product to
Dell can write to the email address, <NewDellSite@dell.com>, or call
(866) 830-5862.
Copyright 2002, Stephens Media Group
|