Sanford Boasts 1,000-Job Announcement
In a year dominated by abysmal personal, political and business headlines, S.C. Gov. Mark Sanford finally got some good news on Wednesday.
A Charlotte, N.C.-based Internet sales and marketing firm has decided to bolt the Queen City and relocate in Lancaster County, S.C., bringing 100 new jobs and the promise of hundreds more. Red Ventures, which bills itself as one of the nation’s fastest growing companies, says that it will invest $27 million in South Carolina and create 1,000 “high-paying” jobs over the next five to seven years.
The company received a variety of undisclosed tax incentives to make the move, including 50% off of its property tax bills for the next two decades. Meanwhile, Lancaster County received a $250,000 grant from the state to provide infrastructure support for Red Ventures’ new headquarters.
“This announcement represents yet another dividend from our state’s continued efforts to improve business soil conditions and attract capital investment to South Carolina,” Gov. Sanford said. “Our push for competitiveness is one that doesn’t begin or end with any specific economic development announcement, but Red Venture’s decision to put down roots in our state speaks to this larger notion of persevering in the face of incredible odds – including today’s very challenging economy.”
According to the Commerce Department, Red Ventures has been approved for job development tax credits, which are performance-based incentives that are awarded only when predetermined hiring and investment levels are reached.
Unknown at this point is how many of the new – or promised – jobs will come from South Carolina, as Red Ventures will be moving literally right across the border and will thus still be drawing its prospective employees from a two-state labor pool.
Obviously, the creation of new jobs – especially if Red Ventures’ promises are kept – represents good news for a state with one of the nation’s highest unemployment rates and anti-competitive business climates.
Still, with government doling out taxpayer-funded grants and incentives left and right, the public should be provided ahead of time with some sort of “cost per job” matrix that specifically identifies the dollar amount of public resources going to create these new jobs – along with an economic impact of those jobs on the state.
The way that government currently manages economic development announcements provides very little in the way of transparency or the opportunity for the public to conduct a cost-benefit analysis.
Again, we also believe that the best way to bring jobs isn’t incentives and government recruitment, but rather a competitive business climate build around a low tax and fee climate and limited government regulation.
Comments
By Jonny D on October 7th, 2009 at 4:13 pm
Luv Guv, keep fighting that good fight and keep persevering in the face of incredible odds! You’re gonna make it! Fuck the dark side (figuratively)!, fuck Maria (literally)!, we will see 2011 together!, YES WE CAN!
http://www.youtube.com/watch?v=WuKqWEYzhEA
By Eric on October 7th, 2009 at 4:14 pm
If you got something in the mail from DirectTV, chances are it was from Red Ventures (or RedF). They have a good business model where they don’t charge the customers for marketing unless they get results.
There are a lot of companies jumping from Charlotte to Lancaster/York. It’s a shame we got to subsidize them though. It would be better if they would decide to work here because the taxes are low and doing business is easy. Instead they gotta get favors. Bah!
By weighing in on October 7th, 2009 at 4:27 pm
Bet this is the first time the Governor has ever even heard of this, but if he’ll take a break from counseling David Letterman, maybe he can have a new presser about this. And, although this will be great for Lancaster, most of the employees are still likely to come from the Charlotte area. Recruit a business to Charleston, Greenville, Richland, Georgetown, Williamsburg…that will impresss us, this not hardly.
By Matt on October 7th, 2009 at 5:25 pm
I agree with the statement about needing a more competative low-tax less- regulation business climate in SC, but that does not mean that what SC did to get this company to locate here isn’t pro-growth itself, does it?
Tax incentives for economic development in the absense of an overall more competitive business climate is not a bad thing IMO.
By ethel krabitz on October 7th, 2009 at 5:45 pm
Hey, maybe they can give the poor sap (Sanford) one of those high paying jobs! he’s gonna need some income!
By Vicomte de Valmont on October 7th, 2009 at 6:15 pm
Ok, alors nous pensons que vous stupide f ** k!
If S.C. Gov had a brain in head it would set zero corp tax rates across the board requiring only that all outsourcing be given pref treatment to S.C. biz meeting high standards…
But you know the Gov is so powerful in S.C. and the legislature so week they will not be able to get this or anything else done until the next most powerful and SYMPATHETIC Gov takes office… Right, so says your good friend Bobby Harrell who is very concerned with all of US…
By Billy Bob on October 7th, 2009 at 6:23 pm
I could write about 50,000 lines on htis one article and its comments, but why bother?
Economic Development is a lot more complicated than the comments here (including the writer of the article) will ever know. Bet you could all do better with the Gamecocks than Spurrier too??? And how good are you at brain surgery? Opinions are like arses, everybody has one – most of them stink.
By Silence Dogood on October 7th, 2009 at 6:26 pm
Nice, all the same workers will now be commuting from their homes in N.C. where they pay their taxes and buying some of their gas and potatoe chips here. All we had to do was give them effectively 10 years of no property taxes (or 20 years at 50% off) plus a bundle of other undisclosed tax incentives. If this works out as planned, SC will probably only loose a little bit, instead of a lot of money, can get an Amen!!!
By ohara on October 7th, 2009 at 6:53 pm
MAYBE 1,000 jobs OVER the next 5-7 years? The tax incentives come 1st. Unemployment rate for SC is still at 11.5% state wide, with 17% unemployment in some counties.
Maybe 1,000 jobs over 6 years is still better than nothing, but it’s only a speculation. There is no promise to hire 1,000 employees from SC. Most will come from NC.
Agree with poster “weighing in.”
This is just a repositioning of a NC firm to get a better tax deal, not to hire skilled SC employees. We get exactly ZIP out of the deal-a lot of promises but no committment up front to hire SC employees. Been there, done that.
Get us a real investor with real jobs for the communities of this state-this is a shell game. Sanford is selling us another turkey.
The folloiwng are a small number of SC job closures, but illustrates that that 1,000 “promised jobs-well, maybe” will not even begin to make up for what has been lost.
—
December 2008:
WaMu laid off 500 employees from a Florence mortgage center in December 2008, with plans to lay off more as needed.
Newberry County lost 570 textile jobs when a sock factory closed in January.
The Wellman Industries plant in Darlington closed and lost 550 jobs in 2008.
March 2009:
“State economists are concerned about jobs in South Carolina, as the state has the fastest growing unemployment rate in the nation. Don Schunk, a research economist at Coastal Carolina University, said, “The speed with which things have deteriorated is unprecedented.” From the State newspaper
April 2009:
South Carolina Textile Mill Closing, Mount Vernon Mills in Williamston; 145 Jobs Lost
July, 2009
Florence, South Carolina’s ESAB Welding will cut an undisclosed number of jobs by the end of 2009. The firm laid off 90 workers in April.
By Sue on October 7th, 2009 at 7:34 pm
Nice. I’m sure he’ll take credit. What else does he have to do?
Hey maybe see your kid’s soccer game (he WAS down here last month when he should have been there). I wonder if he drove himself. Suddenly caring about his children.
Fact is, without this job, he’s a homeless person, unless he goes back to live with his mama on the Plantation. It’s no wonder he’s hangin on.
By Philip Branton on October 7th, 2009 at 8:01 pm
My red BLOOD…….
“…The company received a variety of undisclosed tax incentives to make the move, including 50% off of its property tax bills for the next two decades. ..”
No wonder school boards are having to raise taxes through the FREAKIN’ roof….!!! Meanwhile the Board and CEO hobnob with the Good ol’ Boyz deep sea fishin on their “Yellowfin”..!!! It seems the only thing South Carolina is doing is poaching other businesses from other states instead of really CREATING new jobs…!?!?!
Meanwhile, we have a Bio-Diesel firm ready to go bonkers and start gearing up to produce DIESEL fuel for the new diesel cars that BMW is building ….but is their any EDUCATION or support coming from ANYONE…!?!? http://www.rwenergies.com/
Talk about NEW JOB Creation……and getting the FARM Subsidies for growing NOTHING killed is beyond insanity…..!!!!
Who the heck is running TUMPY’s campaign..??He could beat Henry, all DEMOCRATS (especially VIDA-like) and stand UP against SANFORD for not doing anything WHEN…..!?!?!
Geez….does TUMPY want to WIN or just get along….!?!?! The least he could do was wear a MOXIE shirt…!?! …or better YET, a SKIRT named “Henry” with a bunch of question marks like the RIDDLER wore…!?!?!
By Skidmarks on October 7th, 2009 at 8:38 pm
“The company (Red Venture) inherited a 20-year tax incentive originally granted to a mortgage firm that built the facility two years ago….” -The State
By Billy Bob on October 7th, 2009 at 8:50 pm
It’s amazing to see all the “Assumptions” that are being made with none of the facts. For simple starters.
1) they’ll pay SC taxes here if they work here. Doesn’t matter where they live. They will get a credit on NC taxes for SC taxes paid.
2) all corp taxes will be paid here on those workers
3) the tax reductions are propertionate to the jobs created
4) many probably already live here and are paying NC taxes and getting a SC credit for that
5) a good number will move here just to be close to work – a lot of people simply do not like a commute
6) New jobs are far more likely to be SC residents than NC residents as there is no reason for NC workers to come t oLancaster looking for work, except in times like these. That will disappear over seven years
This is just a few HUGE differences from predictions above
By Philip Branton on October 7th, 2009 at 10:05 pm
WHAT……??
“…3) the tax reductions are propertionate to the jobs created..”
WHO says anything HAS TO BE ….anything..??
Lets review some not so recent UNION history…?! The rise of UNIONS came about because TOP BRASS had no remorse for the saps working on the LINE or shop floor. Then the pendulum went the other way and the UNIONS creamed themselves and BRASS and drove our manufacturing overseas. Well, the game has just shifted more politically and now whole cities and Counties taxpayers are the ones being bent over through “NEGOTIATED” agreements locked in for DECADES after the Brass have retired and the Political winkers have moved on to be Lobbyists themselves…!!!! The original Mortgage company most certainly got…what kind of interest rate to build this building to begin with…??? And now turn around 2 years later and the tax incentive automatically follows the new tenant..!?!?!
WELL WHO VOTED ON IT….!?!?!
My Backside…….!!!!
Most of these “SILVER LOONS” doing the negotiating will be DEAD and their children will be Burdened with more taxes…!!!!
Is this the GAME now for all Industry or manufacturing ….?? Moving to a LOCALE where there is NO TAX responsibility…!?! Heck, we wonder if there is ANYWHERE that has CHURCHES where the workers do not need to tithe?? ….how about NO FUEL TAXES from workers for road upkeep…?? …..how about no accomodations tax for visiting SALESMEN or SALESWOMEN…?? …how about a locale with NO Politicians to GREASE…??? ……a location where their are no community recreation teams to SPONSOR….!?!?!
No wonder the Board of Directorz and the CEO can NOT stay married….they are having to MOVE every tax season….!?!?!
We wonder what the Board of Directors WIVES really think when they see her husbands check and realize that the company it COMES FROM is not PAYING into the LOCAL Community as much as most other businesses…!?!?
I don’t mind paying taxes..its the sheer FACT that whole communities are be bent over to POACH other businesses instead of CREATING NEW JOBS to begin with…!?!? On top of that ….this is all done behind closed doors and with out being VOTED on by the Citizens at all…!!!!
No wonder Government does NOT want transparency….???!!!
By Mike Honcho on October 7th, 2009 at 10:15 pm
Wow. The lot of you serve little purpose in life but to wait for Billy to post so you can yuck it up.
Mulvaney is positively beside himself about the announcement according to his local paper.
http://www.lcni5.com/cgi-bin/c2.cgi?151+article+News+20091006160235151151012
For those brilliant minds who do not under the job development credits (nearly every person posting above). They are performance credits that require the company to invest $10 million and employ 500 NEW people BEFORE they can collect on the incentives. Read the article link for more information.
So yesterday, Boeing was “in trouble” and today, these jobs aren’t real. Yes, Will, you are indeed an incredible expert on economic development.
Since you are now covering all the job news, here are two you conveniently forgot from the past week:
http://www.goupstate.com/article/20091007/ARTICLES/910071037/1083/ARTICLES?Title=Gaffney-plant-to-create-100-new-jobs-in-first-3-months
http://www2.scnow.com/scp/news/local/pee_dee/article/softee_supreme_diapers_corp._will_expand_in_marion_county_create_about_262_/77895/
By Earl Capps on October 8th, 2009 at 1:43 am
100 jobs will turn into 1000 via an internet venture?
After the last recession, who still buys the whole “the internet will make companies explode overnight” line? I thought we learned our lesson when the dot-com bust hit about eight years ago?
Bet this company will scrape by with few, if any, expansions, hoping to sucker some larger company into buying it out. Betcha it won’t take five years before the company is sucked up and away, or files for bankruptcy.
By Earl Capps on October 8th, 2009 at 5:11 am
100 jobs will turn into 1000 via an internet venture?
After the last recession, who still buys the whole “the internet will make companies explode overnight” line? I thought we learned our lesson when the dot-com bust hit about eight years ago?
Bet this company will scrape by with few, if any, expansions, hoping to sucker some larger company into buying it out. Betcha it won’t take five years before the company is sucked up and away, or files for bankruptcy.
P.S. – Sorry, forgot to tell you great post!
By No Way! on October 8th, 2009 at 8:15 am
I think this is a major win for S.C? Am I missing the boat somewhere? What are we going to say when Boeing decides to move to SC? I am 100% in support!
By John Steinberger on October 8th, 2009 at 10:34 am
Imagine how many border-jumping businesses there would be if we eliminated the state income tax!
By Seymour Glass on October 8th, 2009 at 2:54 pm
@ Earl,
Here’s hoping your financial insight is as pertinent as your political.
By Earl Capps on October 9th, 2009 at 10:23 pm
Seymour, whoever you are, I hope I’m wrong on this. Given the fact that far more people commute from Lancaster County to North Carolina, it would be nice to some of the opposite.