TRIAD – The difference between the amount of economic incentive money the state of North Carolina and officials in Winston-Salem and Forsyth County will get back from Dell Inc. reflects the adage that timing is everything.

Dell announced Oct. 7 that the computer manufacturer will close its Winston-Salem plant in January, costing 905 workers their jobs. The plant, which opened in October 2005, involved the largest state and local incentives package in North Carolina history, which eventually could have totaled more than $300 million.

Winston-Salem and Forsyth County have received a commitment to get back all of the $26.5 million in incentives provided to Dell so far. But the state only expects to retrieve $1.5 million of $8.5 million provided to Dell.

One reason for the discrepancy in the repayment of incentives may stem from the contrast between how state and local officials negotiated with Dell.

The N.C. General Assembly approved its incentives for Dell in the political equivalent of a shotgun wedding during a one-day special session on Nov. 4, 2004. Officials with then-Gov. Mike Easley’s administration told legislators that the Dell deal couldn’t be changed or amended or the company would go elsewhere.

In contrast, Winston-Salem and Forsyth County officials had weeks to negotiate with Dell as company officials picked a site in the Triad among offers Greensboro and Guilford County and Davidson County. Dell picked its southeast Winston-Salem location on Dec. 22, 2004.

Winston-Salem Mayor Allen Joines said that the city has a track record of strict agreements with employers to repay incentives if the company closes early. But Joines acknowledges that Winston-Salem and Forsyth County may have benefited from having more time to negotiate with Dell than state legislators did in the one-day special session.

pjohnson@hpe.com | 888-3528