Every few weeks, we share the latest news in local, state and federal incentives, from changes in legislation to top recent incentive deals.
27 January 2015
New Texas governor Greg Abbott has decided to replace Rick Perry’s economic development director, Jonathan Taylor, with Bryan Daniel; Daniel previously worked with the Texas Department of Agriculture. The change in leadership comes after a number of reports and audits criticizing the Texas Economic Development Corporation for inefficient use of funds and lack of transparency throughout the application and approval process.
Read more at MySanAntonio.com.
After four years in Charlotte, Chiquita closed its large Charlotte headquarters due to its acquisition by South American conglomerate Cutrale-Safra. Its move to North Carolina, in part funded by $23 million in incentives, has spurred debate over the state’s aggressive business packages to lure relocating or expanding corporations. Complicating this is the recent news that North Carolina’s JDIG incentives program recently ran out of funding and will only be replenished midway through 2015.
Read more from the Charlotte Business Journal.
Fintech giant NCR will be receiving a confirmed $3.2 million in incentives from the Atlanta City Council upon its relocation from the northeastern Atlanta suburb of Norcross to the CBD submarket of Midtown. NCR will be redeveloping currently vacant land in the emerging business and residential district into a mixed-use, urban headquarters. The company will maintain a suburban presence, but is following in the steps of many tech (and non-tech) companies seeking to maximize their appeal to a younger demographic with shorter commutes and a move from traditional office parks.
Read more from the Atlanta Business Chronicle.
Volkswagen will receive $177.8 million in incentives from the State of Tennessee to expand its Chattanooga plant, part of the roughly $230 million the company expects when state and local packages are combined. Volkswagen has calculated that its expansion will equal $900 million worth of investment. The deal has been controversial due to disagreements between Volkswagen and the United Auto Workers (UAW) union, although these have largely been resolved.
Read more at TimesFreePress.com.
Alabama governor Robert Bentley announced an overhaul of the state’s economic incentives program. Through six proposed bills, the state would change its funding mechanism from a system based on “bond money borrowed by the state” to one that factors in productivity and corporate revenue. Alabama faces strong competition for corporate relocations from its neighbors, particularly Georgia, Florida and Tennessee.
Read more from the Decatur Daily.