Benefits administration provider Infinisource Holdings Inc. is moving its headquarters to Charlotte and expects to create more than 160 jobs over the next “five years”.
“The economic impact of that in a city the size of Charlotte is minimal”, says Ted Chase of Charlotte, N.C. who helped put this into perspective for us.
In exchange the state agrees to pay $1.9 million. Not a bad deal for the company which has only agreed to invest $500,000 and the promise of relocating some jobs to Charlotte.
The state Economic Investment Committee voted Wednesday to award Infinisource what it calls “a job development grant”. Some call it corporate welfare!
If the agreement terms are met, emphasis on “if” – the grant would be worth up to $1.9 million dollars to the company over the next eight years.
Most of the jobs however will be imported in, meaning the actual number of “new jobs” created will be much less than what is being touted by the Governor and the Economic Investment Committee.
“There are also local incentives involved here. But we can’t get any real information on that right now”, says Kline Younger of Business Watch news , an alternative news services in Charlotte, N.C.
North Carolina Gov. Bev Perdue announced Wednesday that the company plans to invest $500,000 on its expansion. Besides putting corporate headquarters in Charlotte.
Infinisource, which was bought in August of this year by Infinisource Holdings Inc., has more than 200 employees in its offices in Ohio and Florida and its regional headquarters in Michigan.
CHARLOTTE IS THE HIGHEST BIDDER!
The company had considered sites in Michigan, Ohio and South Carolina, according to N.C. Commerce Department officials.
Charlotte was the highest bidder in the process and was subsequently was approved by the company as the place it wanted to relocate its corporate operations.
Company officials say the average pay for the “new jobs” it has promised Charlotte will be $81,300 a year, plus benefits.
“Well have to wait and see on that one”, says Tom Quinn of Charlotte, N.C. “I disagree with offering huge incentives and grants to companies to move here. It’s basically corporate welfare”, he said.
“It makes you wonder, if the company would move here without the $1.9 million? My bet is they wouldn’t do it”, says Barney Tillman of Charlotte.
The company said the expansion and move of its corporate headquarters will enable it to launch a division dedicated to Human Capital Management SaaS technology.
Infinisource also plans to “consolidate” other business elements — including sales, implementation, customer service and information technology — in Charlotte. It is not know where those offices are now located, or why they are being consolidated or how many jobs are being cut in that process.
“It all sound very vague to me”, says Charles Huckleman of Charlotte. “There is a lot that Infinisource isn’t saying here”, he said.
“I think it’s good news for Charlotte that Infinisource is moving here. I’m not concerned about where those jobs are coming from – so long as they end up here”, says Willy Smith of Charlotte, an unemployed taxi driver. “It makes me no difference”, he said.
I suspect a lot of people feel that way…