Archives

scuttlebutt

by Jordan Green

scuttlebutt

Dell agrees to pay back incentives early

Winston-Salem Mayor Allen Joines announced last week that Dell will repay the $26.5 million in local economic incentives the computer maker received from the city of Winston-Salem, Forsyth County, the Millennium Fund and Forsyth County Development Corp. by Saturday. Kip Thompson, Dell’s vice president for global facilities and strategic growth, had agreed in writing that the computer maker would repay $15.6 million to the city; $7.9 million to the county, $2.8 million to the Millennium Fund; and $308,622 to the Forsyth County Development Corp. within 30 days of the closing of the desktop computer manufacturing facility. However, Joines asked the company to repay the incentives early in return for a discount of one quarter of one percent. The discount on the city of Winston-Salem’s investment is $38,825. The difference in the total investment, which includes payments by Forsyth County, the Millennium Fund and Forsyth County Development Corp. is $66,278. The $15 million is a combination of upfront costs and annual incentive payments made to Dell prior to its opening in the fall of 2005. On Oct. 7, Dell announced it would shut down its Forsyth County desktop computer manufacturing facility in January 2010, displacing more than 900 workers. “This should demonstrate to our citizens that the agreement with Dell has worked, and they can have confidence that the city’s dollars are being returned,” Joines said in a statement. — KTB

Share: