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Small-business incentives stir debate

Thursday, September 10, 2009
(Updated 3:00 am)

GREENSBORO — A plan to spend $1.3 million in public funds on small businesses appears to have support from a majority of commissioners, but some are still questioning details of the proposed incentives policy.

And some of those commissioners are asking whether the plan — promoted as a way to support small businesses that can’t apply for incentives like major companies such as Dell or FedEx — needs even to be put in place.

“If it’s equal for all, then why would we have two plans?” said Commissioner Billy Yow, who opposes the incentives plan Board of Commissioners Vice Chairman Steve Arnold has promoted in recent months.

Arnold said Wednesday his plan would help more businesses.

“I think what many commissioners are looking to do is even the playing field and any company, regardless of the size of the project, can come and get equal treatment,” Arnold said.

Commissioners will discuss the plan Sept. 16 and 17.

Criteria for the small businesses under the proposed plan include:

  • No requirement for job growth.
  • Businesses could receive money only after a public hearing.
  • A minimum taxable investment of $10,000.
  • Only real property improvements would be awarded tax money.

Under the commissioners’ existing plan for incentives, companies have to create a minimum number of jobs and they can get incentives to defray real property and equipment costs. Commissioners can also require companies to hire a certain number of minorities.

Supporters say the new incentives policy Arnold has put together would benefit smaller companies. But the first recipient could be a large business that’s asking for money under the tougher existing plan.

Ameritox, a biotech company, wants $277,500 over three years for 228 full-time jobs and $26 million in new investment.

On Tuesday, Arnold and Board of Commissioners Chairman Melvin “Skip” Alston moved the vote on the proposed policy ahead of the hearing for Ameritox.

The move is subtle but could affect tax money.

“If (Ameritox) falls under our plan that’s being proposed, then they would get approximately $20,000 less than what they are asking for,” Alston said.

Dan Lynch, president of the Greensboro Economic Development Alliance, supports the proposal for small businesses, but does not want it to replace the current plan for large companies.

“Why would anybody say, 'Yes, give us less money?’ ” he said.

No company could qualify for money from both plans, a substantive change from earlier. Previously, officials said the new proposal could augment the county’s current policy.

Contact Gerald Witt at 373-7008 or gerald.witt@news-record.com

What’s next?

Commissioners will hold a public work session on the new incentive policy Wednesday. On Thursday, commissioners will hold a hearing on the new incentives policy. Then, the county will discuss incentives for Ameritox. The work session on is at 3 p.m.Wednesday. The public hearings are at 5:30 p.m. on Thursday. All will be held in the Old County Courthouse, 301 West Market St.

Comments

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maryeb

September 21, 2009 - 9:11 am EDT

How does an owner of a small business in the Triad go about applying for funding from this program?

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