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Spotsylvania again tries to lure Fortune 50 company to county with incentives Date published: 11/23/2009
By DAN TELVOCK
The Spotsylvania County Board of Supervisors has revised a resolution to lure a Fortune 50 company that distributes health care products. In December 2007, supervisors passed a resolution for up to $400,000 in incentives and infrastructure improvements to the undisclosed company if it located in the 95 Commerce Business Park off the U.S. 17 Bypass. The total package is worth as much as $500,000 because the project would get a $100,000 state grant. Since 2007, there has not been any public announcement about the company, which has demanded secrecy. The county uses a code name, Project Stonewall, when discussing it. On Nov. 10, supervisors amended the resolution so it was not site specific, but the financial incentives remain the same. "It has come back on the radar and we are going back after it," said Supervisor Hap Connors. Supervisors said they did not even know the name of the company and had very little information to work from. The Nov. 10 resolution includes having the county provide from its Economic Development Incentive Fund up to $100,000 to match a grant from the Virginia Department of Transportation Industrial Access Fund. It also includes $300,000 in infrastructure improvements from the county's Infrastructure Improvement Fund. The resolution states that the business is not a retail store and the company must remain in the county for at least five years. The resolution also states that "if the actual investment figures by the company differ significantly from what has been proposed," the county will get 100 percent of the $300,000 back. In December 2007, sources familiar with the proposal said the distribution center would create 190 mostly blue-collar warehouse jobs and some management jobs. It is expected to generate up to $900,000 in local tax revenue. The size of the warehouse is expected to be between 300,000 and 400,000 square feet. Spotsylvania is competing for the company with other Virginia localities and other states, sources said. A Fortune 50 company had shown interest in the Carmel Church area of Caroline County for a similar-size building that would bring the same number of jobs. The Fortune 500 list contains several health care-related companies in the top 50, including McKesson, (which has a plant in Richmond), Cardinal Health, Proctor & Gamble, Johnson & Johnson, Medco and Pfizer. This is the second time this year that supervisors have passed a resolution offering incentives to lure companies to the county. In February the board offered a small manufacturing business a 100 percent tax rebate for the first two years, and a 50 percent rebate for three more years, on the machinery and tools tax. To get the incentive, the company must employ at least 14 employees throughout the five-year period; purchase at least $2.7 million in machinery and equipment; remain in the county for five years; and provide the county with verification of employment levels and annual capital investments. Dan Telvock: 540/374-5438
If the tax payers pay 500k to entice a business to locate here, and that business provides jobs to local citizens and pays local taxes, how is that a "handout" Mr. E? It sounds like a prudent investment in the future that will help those who need jobs to get them.
Wilderness, it sounds like to me that you are unhappy living here. Why don't you just pack your bags and move????
As long as the legaleze is written well, its almost a no-brainer. Companies like this bring jobs and pay big taxes with very little impact on county services. Its well worth the upfront $ as long as they are required to stay in business for a certain time period (to ensure the tax revenue is received). Go get it Spotsy.
or is it taxpayer money they are giving away. Another handout.
Bass Pro Shop wanted a $20M upfront incentive. It wasn't about water in a pond.
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