"Here's an interesting note about Greensboro Incentives that should make anyone pause about the how Greensboro is not doing its homework.
On February 4th, the Greensboro City Council will decide whether to offer incentives for Wyndham, a luxury hotel to build a parking deck, and in return the project promises 168 jobs with most paying less than $30,000 per year.
Source: http://www.news-record.com/news/local_news/article_82ad63f6-948c-5a4b-b573-a19bf8f8c978.html
Charlotte on Monday (today) will consider incentives for Black & Decker, to move a manufacturing plant from Mexico to Charlotte, and in return the project promises 250 new jobs with most paying less than $30,000 per year.
Source: http://www.charlotteobserver.com/2014/01/26/4641752/charlotte-to-consider-incentives.html#.UuaPBxAo7mE
The Difference? The Cost of Incentives:
Greensboro Incentives for Wyndham: $1,980,000
Charlotte Incentives for Black & Decker: $181,208 "
Now as a rule I'm no fan of anonymous commenters but truth is truth even when spoken by anonymous cowards. Smiley face ---------> ;-)
How is it that Greensboro is considering $1.98 Million Dollars for what will most likely be not 168 full time jobs but will be 168 FTE (Full Time Equivalent) jobs. As a matter of fact, we've yet to be told if these 168 jobs will be full time, part time or FTEs. What we have been told is:
"Dillon said that when tips are included, all of the workers would make more than the $9.12 per hour that the Massachusetts Institute of Technology has calculated would cover the cost of living for one adult in Guilford County. Excluding tips, 87 percent of the jobs would pay above that wage, Dillon said."
But more importantly, we were told this:
"But it’s not just about the jobs, Dillon said. A $40 million investment in building a hotel means a lot of taxes paid."
Meanwhile, today in Charlotte, their city council is considering $181,208 for 250 low paying jobs also paying less than $30,000 per year. Whereas Greensboro is considering paying $11,785 per job the City of Charlotte is considering paying $724 per job.
Now let's look a little harder, sure both cities are looking to increase their tax bases and both incentive packages are for job that pay under $30,000 per year but how much under? The Charlotte Observer article states:
"The New Britain, Conn.-based company’s expected $5.2 million investment would create 250 new jobs over four years, with an average salary of just under $30,000."
The same article also states:
“We looked at some census data that said we haven’t replaced all of the manufacturing jobs lost from 2004 to 2010,” Richardson said. “There are unemployed folks in the community; $29,000 is not a great wage, but there are folks who could benefit from that wage.”
The News & Record article says workers at the Wyndham will earn more than $9.12 per hour. How much more it didn't say so I multiplied $9.12 per hour times 40 hours per week times 50 weeks per year to determine Downtown Greensboro Wyndham Hotel workers will earn more than $18,240 per year, just $1,290 BELOW the 2013 US Department of Health and Human Services Guidelines (PDF) for the poverty level for a family of 3.
I think we've figured out what economic development means to Greensboro's leaders but what does economic development really mean? From Wikipedia:
"Economic development generally refers to the sustained, concerted actions of policy makers and communities that promote the standard of living and economic health of a specific area. Economic development can also be referred to as the quantitative and qualitative changes in the economy. Such actions can involve multiple areas including development of human capital, critical infrastructure, regional competitiveness, environmental sustainability, social inclusion, health, safety, literacy, and other initiatives. Economic development differs from economic growth. Whereas economic development is a policy intervention endeavor with aims of economic and social well-being of people, economic growth is a phenomenon of market productivity and rise in GDP. Consequently, as economist Amartya Sen points out: “economic growth is one aspect of the process of economic development."
"Economic development generally refers to the sustained, concerted actions of policy makers and communities that promote the standard of living and economic health of a specific area." Let that sink in for a while, Mayor Nancy Baracat Vaughan. Then every time someone comes before you asking for money ask yourself, is this promoting the standard of living and economic health of all of Greensboro or just a few of your Irving Park neighbors and country club friends?
Because it is very clear to anyone who has read this series, Incentives In Greensboro, the City of Greensboro has a long and sordid history of failing to make sustainable concerted actions that promote the standard of living and economic health of Greensboro as a whole.
To the rest of you, Dear Readers, Please share this and the rest of this series, Incentives In Greensboro with everyone you know. Only by spreading the word can we force them to change their corrupt ways.
Continue reading Incentives In Greensboro: Part 18.
