news-record.com

NEWS

Advertisement | Advertise with Us

Dell confirms it will pay back $26.5 million

Thursday, October 22, 2009

(Updated 12:16 pm)

Staff Reports

Dell Inc. has confirmed in writing that it will repay $26.5 million in incentives from Winston-Salem, Forsyth County, the Millennium Fund and the Forsyth County Development Corp., according to a news release from the city.

The move follows Dell's announcement that it will close its local computer assembly plant.

A letter from Dell to Mayor Allen Joines, dated Tuesday and released today by Winston-Salem, states that the money will be repaid "within 30 days from receipt of a formal letter sent by the community at the time the Dell facility in Winston-Salem ceases operations." The letter is signed by Kip Thompson, Dell’s vice president for global facilities and strategic growth.

Thompson sent his letter in response to a letter Joines sent on Monday outlining the amounts to be reimbursed by Dell. They are: $15,556,071 to the city; $7,916,328 to the county, $2,774,228 to the Millennium Fund; and $308,622 to the Forsyth County Development Corp.

The city’s incentive agreement with Dell required that the company 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.

Of the $15.5 million paid by the city, $8.5 million was for land acquisition, site preparation and other upfront costs. Annual incentive payments were based on Dell’s property-tax payments.

Accompanying Photos

Nelson Kepley

Photo Caption: The Dell plant in Winston-Salem.

What do you think?

4 comment(s)

Read other visitors' comments.

Comments

This article has been closed to new comments. Comments are generally closed after 14 days. However, comments may be closed earlier at the discretion of the News & Record.

Inappropriate content? Please notify us.

JimDandy

October 22, 2009 - 3:02 pm EDT

It only shows that Dell will be making crappy PCs in Mexico so if you want a Dell that works , better buy one now. Remeber , The cheaper they make them the faster they break down and the slower they will run. I am sure that if everyone that does not like Dell moving their bussiness out of this country should no longer buy from Dell then maybe they will remember that AMERICAINS MADE THEM WHO THEY ARE! If the people who made them what they are ( the buyers ) stop buying stuff made out of this country then the companies that stay here will profit.I think Obama needs to put a TARF on ANYTHING thats made buy a company that choses to move their company out of this country in ANY way. Put that money into unemployeement and Socail Security .

GBO_Yoda

October 22, 2009 - 10:19 pm EDT

Mexico = NO!!!!!!! American Workforce , American Jobs = YES

Be wise Michael Dell ............ at the end of the day is the money enough ? Wake Up!

NRay

October 23, 2009 - 7:14 am EDT

The mistake average American citizens have been making for years is believing that companies like Dell care about their country. Dell's nation is The Bottom Line. That's where their allegience lies. They'll go on treating Americans as disposable peasants as long as we tolerate it. And you can't run a civilised country when it's wealthiest and most powerful are refusing to keep their money in the country. I wonder how they suppose we will have any money to buy their stuff when they continue to throw our jobs away? Dell and friends are economic terrorists. Don't buy from them.

GBO_Yoda

October 28, 2009 - 1:22 pm EDT

I agree DO NOT BUY DELL Products. Period ! Anything you are getting from the factory is just second and third rate materials anyway since they are shutting down the staff are forced to put together re-certified parts ,is a scam and these go to Best Buy etc and you (think) on the surface your getting a new system.......... when you are not ( your getting a new case and keyboard and mouse....................Hmmm I wonder How I could know this to be true ? hmmmmmmm.?