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Wilkesboro approves incentive cash for Tyson if it meets goal
Town gives company $17,000; county also considering $50,000 payout
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Tyson Foods is the largest employer and taxpayer in Wilkes County, and the county is trying to help it out.
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Published: February 17, 2009
WILKESBORO
Town commissioners unanimously approved giving a $17,000 cash incentive to Tyson Foods Inc. if the company meets increased production goals at its Wilkesboro plant.
Town leaders said they also want to send a clear message to Tyson, both locally and at its Springdale, Ark., headquarters, that people here value Tyson's contributions to Wilkesboro and the area.
"This is a partnership," Mayor Mike Inscore told the Wilkesboro Tyson's complex manager, Mark Welborn, during a town meeting last night. "… Tyson is vital to this town's success and hopefully we're vital to your success."
County commissioners are scheduled to hold a public hearing at 6:45 p.m. today to consider providing the company a $50,000 cash incentive.
Both payments are based on the same structure. To receive the payments, Tyson must increase its production to a weekly average of 7.2 million pounds from the current average of 5.5 million pounds. The goal is based on its production from July 1 to Sept. 30, the end of the company's fiscal year.
The increased production would help ensure that the company keeps operations in Wilkesboro and brings in more water-and- sewer revenue for the town.
Tyson accounts for 10 percent of Wilkesboro's property-tax revenue and for 45 percent of its water-and- sewer revenue.
The company is also the county's largest employer, with about 2,700 workers.
Tyson had asked for the incentives as it makes a transition from processing 4-pound chickens to processing 6-pound chickens at the complex. The company has idled production and temporarily laid off about 75 workers during the transition, which started in January. Company officials have said they hope to have the workers back by May.
Rising feed costs and other factors have made this a difficult period for the poultry industry overall, industry officials have said.
That makes this a particularly tough time for equipment changes to keep part of the processing plant from running, Welborn said.
"When you're already losing several million dollars, you need some help, and that's why we approached the town and the county about doing this," Welborn said.
No one spoke against the proposal at the town's public hearing last night.
Two people spoke in favor of it.
"We need to do everything we can to support one of our largest taxpayers and our largest employer," said Pete Lovette.
Mayor Pro Tem Sam Stroud agreed. "Partners doesn't even sum it up," Stroud said. "We are inextricably tied to Tyson…. I would once again encourage everyone to eat more chicken. I'm going to go home and eat some chicken tonight, Tyson chicken."
Town Manager Ken Noland said that the town expects to lose $500,000 in water-and-sewer revenues because of the slowdown at Tyson during the transition.
"Tyson's success is our success and their downturn is also our downturn," Noland said. "We hope Tyson can rebound and meet the production of their incentive levels."
The Wilkesboro commissioners' vote was 3-0.
Councilman Gary Johnson did not vote, after making a motion to remove himself from voting because of an appearance of a conflict since he's worked for Tyson for 25 years. Town attorney Bill Gray said that Johnson doesn't have a conflict because he doesn't own a significant stake in the company. Gray said that Johnson could have voted on this issue and would be able to vote on future issues involving Tyson.
■ Monte Mitchell can be reached in Wilkesboro at 336-667-5691 or at mmitchell@wsjournal.com.
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