News-Record.com Staff Blogs: Letters to the Editor: Dell's value to Triad's economy is clear: Dell's value to Triad's economy is clear

Dell's value to Triad's economy is clear

The following is a Counterpoint:

By Ralph Womble

The News & Record editorial, "Dell downturn offers development lessons" (June 8), distorts the facts surrounding Dell's selection of North Carolina for its new manufacturing facility.

Your editorial makes reference to "paying $280 million to lure" Dell to the Triad, but you fail to explain that Dell is contractually obligated to meet or exceed both job and investment numbers over a 20-year period to receive the full incentive amount.

Dell will not receive the first dime from the community or the state until July. The incentives the company receives are after it pays its taxes and hires the agreed-upon employees, which makes the Dell deal a true "pay as you go" project. If Dell falls short on the agreed-upon jobs or investment, then its incentives will be reduced or eliminated.

The editorial also fails to acknowledge the economic ripple effect that Dell has created in the region. There are six Dell suppliers that have located in the area.

Several retail and residential developments have also announced since the Dell facility opened, and the expected economic impact will exceed $50 million. No incentives were used for that tax-base increase.

Also, property values in the vicinity of the new facility continue to increase rapidly, further adding to the tax base of the region.

The good will generated by Dell's location in Winston-Salem is hard to put a price on, but Dell, along with FedEx and HondaJet, have validated this region as an outstanding business location -- and the public relations value created from these locations would be impossible to purchase.

The writer is chairman, Winston-Salem Business Inc.

Posted by News & Record on June 14, 2007 3:00 AM | Permalink

Comments (7)

Ray Ubinger on this abomination:

Dellfare.
Dell on the dole.
Un-Dell-egated authority.
Dude, you're gettin' a handout.
Macro-waste for medium-performing micro-processors.
High-tech hijinks for higher taxes.
Hacking into the public treasury.

Posted by Anarcho-capitalist | June 14, 2007 4:39 AM

Who cares about Dell?

The big story is DALE! ;)

Posted by nitpicker | June 14, 2007 8:34 AM

The way companies play state against state, county against county, is "just not right" ... yea it's business - which actually I'm way in favor of - but this detail is part of Globalization trend, which I swear to you brothers and sisters is not good for humans - ok it's fine for the coffers of some, but overall part of a really ugly deal.

Until the Fed's stop in and make it a national law these games must stop - it's gonna continue to happen to the detriment of America.

All that said, as long as the game is played with some brains, it's tolerable (like a bee sting, tolerable but who the heck wants one?). It appears the DELL deal was crafted in a thinking way ... unlike the Bristol Compressor deal:

start here:

http://cc.msnscache.com/cache.aspx?q=8241245849621&lang=en-US&mkt=en-US&FORM=CVRE10

not mentioned, and from memory only, if the fact that 7 years prior, the Allegany County "leadership" gave $140 million - without clawback - to get them to come there in the first place. " S U C K E R S ... " is the cry, I guess

then .. heck they're playing the same game in Tenn:

http://cc.msnscache.com/cache.aspx?q=8243508937764&lang=en-US&mkt=en-US&FORM=CVRE5

Posted by James D. Rockefeller | June 14, 2007 9:25 AM

afaik, they have done nothing illegal ... but if this is the best America has to offer, send me back to work with Milton Hershey.

http://www.amazon.com/Hershey-Milton-Hersheys-Extraordinary-Utopian/dp/0743264096/ref=ed_oe_h/105-6985966-5872409?ie=UTF8&qid=1181827772&sr=1-1

Posted by James D. Rockefeller | June 14, 2007 9:37 AM

Ralphie, this Counterpoint begins in error. I quote, ".....Dell's selection of North Carolina for its new manufacturing facility." The facility is NOT a manufacturing one. Rather it is an ASSEMBLY facility. The components are shipped into that plant, and then placed into the computer shells.

My larger question/concern is who is monitoring Dell to assure the taxpayer the cited "expectations" are met in the timely fashion? From all that I have ever heard about corporate welfare, there is no "watchdog" making sure that the recipient actually does what was promised when the monies were "given." This is the problem with corporate welfare, NO OVERSIGHT!

Shalom

Posted by Darryl | June 14, 2007 9:40 AM

I'm with you on this JDR. I don't like my tax dollars going into the coffers of eeeevvvviiiilll corporations in the form of corporate welfare.

Like many on welfare they consider it as a right and want more and more, so I don't see an end to it.

Posted by Dan | June 14, 2007 10:02 AM

Dan,
Glad to see you've shaken off your protracted sleep and awakened to the reality of "CORPORATE WELFARE". There is hope for you yet.

Posted by THE LIBERAL CONSERVATIVE | June 15, 2007 12:47 PM

Dell's value to Triad's economy is clear

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