The Durham County Board of Commissioners approved a $2 million incentive package Monday for a local company if it opens a new plant in the county.
Backed by Durham's business community, the board voted unanimously to try to spur economic development by helping pay for the construction of a new manufacturing facility for AW North Carolina, Inc., in northern Durham County's Treyburn Corporate Park.
AWNC, the U.S. offshoot of Japanese auto components manufacturer Aisin AW, has an existing plant located in Durham, and is in the process of deciding where to locate a new factory slated to produce a new line of transmission parts. As an incentive, the company asked the counties it is considering to reimburse some of the cost of preparing the site for the new facility.
Several representatives for the Greater Durham Chamber of Commerce urged the commissioners to grant the request, saying the county's investment in the plant would easily pay for itself through the estimated 300 new jobs, $70 million increase in depreciated taxable value and more diversified economy that the facility would create.
"This company's expansion will allow our economy to grow, beyond... some of our existing industry clusters," said Ted Conner, the chamber's vice president for economic development.
The proposal also drew the support of Steve Brantley, an industrial recruiter for the North Carolina Department of Commerce and a Durham resident. Brantley said the process of attracting industrial corporations is a competitive one, with about 15,000 communities competing for only 1,500 new business announcements each year.
For that reason, he encouraged the board to approve the incentive package, adding that the other counties on the company's short list were considering even higher offers.
"I'm sure that in Durham this company is only going to keep growing and hiring more and more people," Brantley said.
After the board approved the package without debate, company representatives said only that they would consider it as one among several factors, referring all other questions to a press conference this morning.
Will Collins, AWNC human resources manager, added the company's board wanted to know how much Durham would support the project.
The board's decision established the second such incentive package in about three months. In October, the commissioners offered a similar $2 million deal to a German biotechnology firm, EMD Pharmaceuticals, Inc., which has not yet announced the location of its new facility.
County Manager Mike Ruffin said such chances to attract industry are rare and bode well for the county's economy. "Ironically, as most of North Carolina is suffering, Durham County is probably as busy--in terms of opportunities--as ever," he said.
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