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RF Micro ponders next step in search

Wednesday, September 12, 2007
(Updated Saturday, July 19, 2008 - 12:59 am)

RF Micro Devices, surprised that Guilford County commissioners turned down its $1.03 million incentives request last week, could ask for county money again.

But it is unclear whether the commissioners would change their minds or if the microchip maker would even approach the board if it faced another rejection. The company is looking at several sites for a new microchip wafer plant. In Greensboro, RF Micro wants to invest $103 million and create 300 jobs.

"As far as our board's concerned, that particular proposal was defeated," commissioners Chairman Paul Gibson said of last week's vote. But if RF Micro wanted to ask for something else, the board would consider it like any other request, he said.

The county hands out incentives based on performance; a company doesn't get the money unless it spends on buildings and equipment or creates jobs.

The plan considered Thursday was based on the company's investment in buildings and equipment, and commissioners turned it down on an

8-3 vote. But the company could return with an incentives request tied to the jobs.

That was discussed when Democrats Gibson, Vice Chairman Melvin "Skip" Alston and other county officials met Tuesday with local business recruiter Dan Lynch. Gibson and Alston later indicated that the jobs request could be in the range of $400,000 or $500,000, or about half of what the board rejected Thursday.

Still, the company might not approach the commissioners if it's likely to be turned down.

"I told him I couldn't guarantee 'em anything," Alston said.

Like their counterparts on the Greensboro City Council, commissioners have a long record of supporting RF Micro expansions, pledging $4.3 million in incentives from 1999 to 2006.

The homegrown company employs nearly 2,000 people here and was the county's No. 5 taxpayer for 2006.

But whereas the city signed off on $1.2 million for the company in August, the county rejected it this time around.

Some commissioners said they thought the company would expand here anyway, with or without the incentives. RF Micro is also looking at sites in High Point, Winston-Salem, China and the United Kingdom, an RF Micro executive said Thursday. Durham also has been mentioned as a possible site.

Lynch said "the decision by the county was not expected."

"The project is still out there," said Lynch, president of the Greensboro Economic Development Alliance, "but that vote has caused some things to be relooked at and re-evaluated, and that's what's going on right now."

Jerry Neal, executive vice president of marketing and strategic development for RF Micro, declined to comment when asked about approaching the county again.

"We appreciate all the support that we've been given in the past," he said, "and we appreciate any support that anyone wants to give us."

RF Micro needs at least three commissioners to change their minds on the incentives, and some commissioners interviewed Thursday didn't sound like they'd do that.

Republican Billy Yow said the board should "stand fast by what it's done."

Gibson called the incentives process "twisted."

And Alston, who'd asked for and received a lengthy list of community organizations the company had supported, wasn't pleased that RF Micro couldn't elaborate on the list when he asked for it.

The lion's share of incentives would come from the state, which is considering

$4 million to $5 million for the company, officials have said.

"I'm going to wait and see what the state does at this point," Republican Linda Shaw said.

"If they give it to 'em, I might consider it. It just depends on what they come and ask for."

Contact Nate DeGraff at 373-7024 or ndegraff@news-record.com

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