High Point backs HondaJet project for the right reason
The High Point City Council approved $100,000 in economic incentives for HondaJet at its meeting this morning.
Councilman Bill Bencini added a message to his support:
"We appreciate the regional efforts to bring HondaJet to our airport. We hope that our neighbors will soon reciprocate the support offered today by the City of High Point. We have yet to receive requested funding help from neighboring cities to improve the High Point Market.
"Our furniture market has a considerably larger impact on the regional economy than the company under consideration today. It deserves the support not just from High Point, but from all of our regional neighbors. Today High Point will help build the economy beyond our jurisdiction. Let's hope reciprocation is forthcoming."
(Quote provided by Loren Hill of the High Point Economic Development Corp. I did not attend this morning's meeting.)
Bencini is right in principle that the High Point Market makes a big economic impact in the Triad and deserves support from other Triad cities, particularly Greensboro and Winston-Salem.
But there's not strictly a requirement of reciprosity accruing from High Point's support of the HondaJet deal.
The HondaJet facility would occupy land owned by Piedmont Triad International Airport Authority. It would not lie within Greensboro's city limits (and obviously not Winston-Salem's). So High Point is not actually providing incentives for a Greensboro project. There's no quid pro quo obligation on Greensboro's part to return a favor to High Point. HondaJet will use Greensboro water and sewer but whatever local taxes it pays will go to Guilford County. And Guilford County does make an annual grant to the High Point Market.
High Point isn't supporting the HondaJet project as a favor to Greensboro and Guilford County but because this significant development is good for everyone in the Triad, including High Point.
Of course, that is why Greensboro should support the furniture market.
Comments (8)
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A payback by High Point for stealing Lay-Z-Boy from Greensboro?
The facility may not be in G'boro limits yet, but it will eventually.
Posted on February 8, 2007 1:50 PM
In a way, I think you could say it's a payback. Or an olive branch. It's saying: We're willing to work with you, not against you.
Posted on February 8, 2007 1:54 PM
Jon,
Neither Greensboro nor any other town or city can annex property owned by the airport authority, including the HondaJet site if they do select Greensboro for their new facility. The legislation that created the airport authority specifically prohibits that.
At last Tuesday's council meeting, the city council unanimously agreed to support the airport authority's request to the General Assembly to DE-ANNEX property that is currently inside the Greensboro city limits that the authority purchased for the construction of the new runway. The airport authority is responsible for providing their own police and fire protection to their territory so the city will no longer be responsible for providing service to that area once the legislation is approved.
Posted on February 8, 2007 5:15 PM
Thanks for the comments, Sandy. Could I get you to bite on Bill Bencini's call for reciprosity?
Posted on February 8, 2007 5:25 PM
Doug,
Re Bencini's request: While I've heard and/or read about this through the media a time or two, I have never received anything official from High Point requesting this financial assistance from Greensboro for the Furniture Market. Given our tight budget situation, those extra dollars might be hard to find if and when any formal request is ever submitted.
Of course, expanded interest in regional funding cooperation could open the door for debate on such issues as "Should High Point and/or the county assist in paying for the operations at the Greensboro Coliseum since major conventions and events such as the ACC and NCAA basketball tournaments fill up hotels and restuarants throughout the county and both cities?" or how about regional financial support for the GGO/Chrysler Classic/Wyndham Championship? Lots of needs and possibilities!
I am aware there are some folks exploring what potential countywide funding sources might be identified to support the Market, the proposed ACC Hall of Champions, the Coliseum, etc. It will be interesting to see if any recommendations come out of those discussions.
Posted on February 9, 2007 3:53 PM
Symbolism can be powerful. Contributions of $100,000 from the city of High Point and the Winston-Salem business group were more symbolic than substantive, but they were meaningful to Honda. Cooperative gestures send signals within and without our region that we really can get our act together. More significantly, it would be nice to know you neighbor has your back when you really need help for the golf tourney, ACC hall of champions or furniture market.
Posted on February 9, 2007 3:59 PM
Doug,
Apparently there is scant interest from Ms. Carmany in regional support for Market. She innoculates herself from Market's future formal funding requests by pointing to budget constraints, and then minimizes the importance of Market by comparing its economic impact to that of a golf event and the occaisonal basketball tournaments.
UNCG's study of Market estimated an annual regional impact of over $1 Billion. Scale should be considered in questions of regional economic support.
Maybe we haven't made the necessary effort in communicating with our neighbors.
High Point's support of Honda Jet's facility is warranted. So is regional support for Market.
Posted on February 11, 2007 11:51 AM
Thanks, Bill. Even a modest contribution by Greensboro to the market would send an important signal of Triad solidarity in support of a vital business entity.
Posted on February 11, 2007 1:28 PM