Dell will repay city incentives in full, Joines says

By: Richard Craver | Winston-Salem Journal
Published: October 07, 2009

Winston-Salem will be repaid all the money it provided to Dell in upfront costs and annual incentive payments, Mayor Allen Joines said.

Kip Thompson, the vice president of facilities for Dell, assured Joines that Dell will honor its commitment to repay the $15.56 million the city has provided since Dell agreed to build a plant here in December 2004.

"The city regrets the closing of this facility," Joines said, "particularly for the impact that it will have on the employees. However, the city is well-protected and will be repaid every penny of its upfront costs and annual incentive payments. In addition, the city will receive title to approximately 90 acres of land adjacent to the Dell building."

Under the incentive package the city approved in 2005, the city has provided $15,556,071 in upfront costs and incentive payments to Dell. Of this, $8.5 million was for land acquisition, site preparation and other upfront costs. Annual incentive payments were based on Dell's property-tax payments.

According to a statement from the mayor's office, "the agreement provided that Dell would have to create 1,700 jobs within five years of the plant opening on Sept. 19, 2005, and invest at least $100 million. Failure to meet these conditions would result in a return of all upfront expenditures, incentive payments and title to the land Dell purchased with city money."