The city will be repaid all the money it provided to Dell in upfront costs and annual incentive payments, Mayor Allen Joines said today after learning that Dell will close its computer assembly plant in Winston-Salem.
Kip Thompson, the vice president for facilities of Dell Inc., visited Mayor Allen Joines this morning and assured Joines that Dell will honor its commitment to repay the $15.56 million the city has provided since Dell agreed to build a plant here.
“The city regrets the closing of this facility,” Joines said, “particularly for the impact that it will have on the employees. However, the city is well-protected and will be repaid every penny of its upfront costs and annual incentive payments. In addition, the city will receive title to approximately 90 acres of land adjacent to the Dell building.”
Under the incentive package the city approved in 2005, the city has provided $15,556,071 in upfront costs and incentive payments to Dell. Of this, $8.5 million was for land acquisition, site preparation, and other upfront costs. Annual incentive payments were based on Dell’s property-tax payments.
The incentive agreement provided that Dell would have to create 1,700 jobs within five years of the plant opening on September 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.