Winston-Salem Mayor Allen Joines announced today that desktop computer maker, Dell Inc., has agreed to repay its up front costs and incentive payments early. The $26 million, due one month after closing its manufacturing plant in January, will be repaid by the end of this week. The announcement comes less than a week after Joines requested the company pay early in return for a discount of one quarter of one percent.
"Receiving the payment early allows us to invest the dollars and have an amount equivalent to the original amount due on February 1," said Winston-Salem’s Chief Financial Officer Denise Bell.
The discount on the city of Winston-Salem's investment is $38,825.45. Joines says the city’s portion of the payment of $15,517,245.55 is expected by the end of the week. The difference in the total investment, which includes payments by Forsyth County, the Millennium Fund and Forsyth County Development is $66,277.63.
"This should demonstrate to our citizens that the agreement with Dell has worked, and they can have confidence that the city's dollars are being returned," said Joines.
The $15 million is a combination of up front costs and annual incentive payments made to Dell prior to its opening in the fall of 2005. The company announced its plans to close its manufacturing plant last month.
Equivalent prepayment calculations report [pdf/8.5kb/1p]