Editorial: Incentives for Piedmont Propulsion could be beneficial

By: JournalNow Staff | Winston-Salem Journal
Published: December 19, 2011

Piedmont Propulsion Systems LLC, an aircraft maintenance and repair company that operates out of Smith Reynolds Airport, has asked Winston-Salem and Forsyth County for up to $52,500 in local economic incentives. It would use the money to expand its operations into a larger facility. This could be well worth the money, if local leaders craft a sound package.

Commissioners will hold a public hearing on the matter tonight. The city council will take it up a later date.

Piedmont Propulsion was founded in the 1940s as part of the original Piedmont Aviation Inc. It operates at the airport and specializes in servicing aircraft for regional airlines, corporations, the military and general aviation. It would like to expand into a 66,772-square-foot space at the airport, and has asked the city council to approve up to $31,500 in incentives over five years. It also is considering a request for a $100,000 low-interest loan, Derwick Paige, assistant city manager for economic development, told the Journal's Richard Craver. Forsyth County is also being asked to approve up to $21,000 in incentives over five years from the county's general fund.

In return, Piedmont Propulsion says it will expand by 25 full-time jobs over five years to a local work force of 60, paying an average wage of $15 an hour for the new jobs. It would also spend $2 million on new equipment.

One of the most important factors about the incentives Piedmont Propulsion is asking for is that they would be "performance-based"; the money would be provided only if Piedmont Propulsion lives up to its job-creation and capital-investment pledges.

On this page, we've reluctantly supported the use of incentives to lure or keep businesses, as long as the incentives are deployed carefully and wisely, with strong claw-back provisions. We'd be powerless to compete with other states if we didn't offer them at times.

In a time of million-dollar incentives packages, Piedmont Propulsion is not asking for that much, and it's promising a worthy return. Having a larger tenant at the airport would bring in more business, not to mention offering much-needed employment.

As is often the case in the incentives world, there's the chance of losing Piedmont to a higher bidder. Spending some money to keep it here is certainly worthy of strong consideration.