Right move to lure new jobs
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Incentives to lure businesses came under fire after Dell Computer earlier this month announced it would close its Winston-Salem plant, laying off more than 900 workers.

Dell had operated its PC manufacturing plant for only four years after receiving pledges of more than $300 million in incentives from state and local government.

The decision was devastating for the Triad, causing many to question the value of public incentives.

The questions are worth asking, but we still support the incentives Durham City and County recently offered EMC Corp. The money -- $1.2 million from Durham County and $1 million from the city-- was added to $7.4 million in state incentives to entice EMC to build its data center near the Imperial Center in southern Durham.

The company expects to invest $280 million in the project in the next six years, and create 292 new jobs. It would generate $402,000 a year for the city in tax revenues. The City Council vote was unanimous in favor of the incentives.

The company was reportedly considering other sites in Virginia, New York, Washington state and Canada.

The state and local governments may have been overly generous in trying to lure Dell, but we think the incentive package for EMC was on target. Over 20 years, the return on investment is expected to be 7.7 to 1.

In this economy, with unemployment rates at record highs, governments need to do their utmost to lure new jobs. Incentives have worked well in Durham and the Triangle before, and they should continue to be a useful implement in an economic development director's toolbox.

We should remember that, in both cases, a truck full of money wasn't just dumped in the company parking lot. In EMC's case the incentives are paid out over seven years if the data center is built, if the jobs are created and if Durham residents have a shot at them.

In Dell's case, about $30 million in incentives was paid over four years, and Dell has pledged to return some money to the state and local governments.
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