Before I write the next sentence let me just say that I think that in the long run Dell coming to Winston-Salem/Forsyth County is a good thing for the community. But (you knew there had to be a "but"), you would think that $37 million in incentives would tell everyone who needs to know how appreciative we are to have Dell.
Some civic and business leaders in Winston-Salem don’t seem to agree as they’ve pulled out all the stops with the 30 Days of Dell celebration. Tomorrow is apparently the official irony day of the event since the local company that’s become the latest symbol of corporate ineptitude, Krispy Kreme, is serving doughnuts with "Dell Blue" frosting.
Yummy.
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Befuddled 
I hate to say it, but I don’t envy W-S at all. Taxpayers will bear the burden eventually of the $37 mil, just like everything else. Now if they were sponsoring $1mil to CS, it’d be a different story… but so far the dreams seem to have been one-way and become blue.
I do not know the specifics of the $37 million incetntives, however in most cases they are superficial. Tax breaks etc. are given by many states, counties and cities as a way to compete and lure businesses. In fact many governments get very creative in the way they creat “incentives”. In the end it comes down to the “real” pros and cons ( the plus and minuses)of having a specific business come to your county. From a business standpoint (and I am not promoting DELL) Dell is a company that has grown, continues to be creative in generating growth (however recently it wasn’t enough, even though everyone knows the pace will eventually slow) and represents a business of the future — unlike factories or industries of the past which are diminishing. If people of the county do not want DELL, then who do they want? And more importantly is this (these) companies knocking down the door to coem to the county wihtout being offered “incentives!”
Rich,
It’s not a matter of not wanting them, or even thinking that the local incentives were a bad thing (personally I think the price tag was higher than it needed to be, but that’s monday-morning quarterbacking since we now know that the other local governments weren’t bidding nearly as much as Winston-Salem/Forsyth County), but that the hoopla of “30 Days” seems a little much in light of how much the community is already doing.
And as for your last point I don’t disagree that the incentives were necessary to draw the company. Incentives are a necessary evil right now, and that is fodder for a whole other post.
All told I’m glad we got Dell and I think the community will gain much more than it lost in the deal. And maybe that’s the point of “30 Days”, to celebrate the win for the community rather than to bend over and kiss Dell’s ring again.
Hopefully this will build some badly needed momentum for the local economy.
I think my comments were inspired by the comment “taxpayers will bear the burden…of the $37 million”. I have study the effects of industries leaving towns in New England for years. Incentives are superficial…and you must look not only at the finicials, but the social aspects of new business coming into a community and/or one leaving.
I also beleive that the 30 days is NOT for Dell, but the community. How long was the courtship to get Dell?
Semper Fi
Rich,
I think the courtship was about 18 months to 2 years, but I’d have to check. It wasn’t an overnigher, that’s for sure.
What was interesting was that the state came up with incentives first (special legislative session last November that provided Dell $242 million in incentives) and then the local communities within NC started competing with each other.
Winston-Salem/Forsyth County is part of a region called the Piedmont Triad, which also includes the cities of Greensboro and High Point, both of which are in Guilford County which borders Forsyth County to the west. Often the Triad communities are packaged together when trying to woo businesses to the area, but once it was clear that NC was going to get Dell the gloves came off between the cities.
Winston-Salem/Forsyth County ended up offering $37 million and Greensboro maxed out at something like $10 or $15 million I think.
My worry was that Guilford got a pretty good deal since the plant is being built about a stone’s throw from the Forsyth/Guilford county line. Since no one is getting tax revenue directly from the operations for several years my feeling was that the true short-term benefit is the potential tax revenue from Dell’s suppliers that will be moving in as well. What if they all move into Guilford and Forsyth gave up the “direct” tax revenues from Dell without getting the benefit of the suppliers moving into the county?
As it turns out, so far as I know the Dell suppliers that are setting up operations in the area have all chosen Forsyth locations, which means that Forsyth should start reaping a return on its investment sooner rather than later.
Unfortunately most of the jobs filled so far have not been filled with county residents, but that’s not all bad; those commuting in will have to pay county sales taxes on meals, buy gas at local stations, etc.
Last point: Dell broke ground on the plant in January and expect to start operations this fall, so the building is taking less time than the recruiting!
Jon,
What is interesting, did Dell give the county a list of vendors that would set-up shop locally? As you are aware Dell demands that the suppliers set-up warehouses etc, close by — thus allowing Dell to carry no inventory…and did the county (area) deal with them? Or was thier excess warehouse inventory? Hmmmmm
A note about “state” incentives”:
Without the state, the county has no chance….When a state decides to give “incentives”, it must be remembered that they have many things to weigh: the cost of un/under-employment, lost potential tax revenue, welfare are some of the finicials. Another is the ability to attract other business, whether realated directly to Dell or not.
About the county v county:
I suggest that you put a wall up around your county and have soldiers march on top of it — ID ever person who must cross. Furthermore, create a county ID and only allow the people in the county to work in the county. In fact let’s get smaller maybe down to a city or town ID, or better yet a neighborhood.