Lately, the number of new economic development wins for Guilford County has become almost an embarrassment of riches. Success breeds success, and all the companies that have located or expanded in Guilford County in recent years – along with the county’s consistently high rankings by national publications that say Guilford County is a great place to do business – have called attention to the area, with High Point being one of the biggest winners.
And, as everyone is well aware, when it rains it pours.
On Tuesday, Aug.13, the City of High Point announced that Cosmetics & Cleaners International LLC – a Florida-based life sciences and personal products maker doing business as “C&C Industries” – will open a new manufacturing facility in High Point and invest $8 million in the project.
In addition to adding to the value of the city and county’s tax base, the project will bring 108 new jobs to the area and revitalize a former print shop building at 2103 Brentwood St. in High Point.
New large projects in North Carolina in recent years almost always come with an economic incentives package handed to to the company, and this case is no different. It’s supported by a $50,000 performance-based grant from NC Governor Roy Cooper’s One North Carolina Fund, and by $100,000 in performance-based incentives from the City of High Point.
The High Point Economic Development Corp. also expects there to be an additional $150,000 in support from the North Carolina Department of Commerce’s Building Reuse Grant program.
That funding is expected to be announced later this week.
C&C’s promotional literature states the following “The company provides contract manufacturing, filling, private labeling, packaging, and distributing services of over-the-counter topical, beauty, and personal care products such as oils, shampoos and fragrances. As an FDA-registered manufacturer, C&C Industries distributes products in all 50 states to large department stores and retailers for national and globally recognized brands. The new production site will cover 108,000 square feet of manufacturing, warehousing, and distribution operations following cGMP standards.”
Understandably, High Point Mayor Cyril Jefferson is delighted with C&C’s choice of locations. Jefferson celebrated the decision to locate in High Point, especially in an area the city is working to revitalize.
“We are excited to have this kind of investment in our community in a targeted redevelopment area,” Jefferson said after the August 13 announcement. “This is another example of why businesses choose High Point as a place of growth. We welcome C&C Industries as a private sector partner committed to High Point’s future.”
Andy Boutros, the CEO of C&C Industries, was just as effusive.
“This new facility is a significant step forward in expanding our operations and meeting the growing demands of our clients,” Boutros said. “High Point offers the perfect blend of skilled workforce and strategic location that will enable us to deliver even greater value to our customers.”
Peter Bishop, the director of High Point Economic Development Corporation, added, “C&C Industries is an exciting addition to High Point’s corporate roster of innovative manufacturers. As a life sciences company, this project builds on the growing number of specialized, biotechnology-related firms that find Guilford County’s workforce, logistics, and real estate well suited for their growing operations.”
Up to $300,000 in corporate welfare. Your tax dollars at work.
I applaud the use of an existing building, especially the location. However, I do not applaud the corporate welfare. Governors need to get together and develop a plan to quash corporate welfare.
Only the voters can stop it. Buena suerte.
Voters cannot stop corporate welfare. Corporations have the advantage because states believe they are competing against potentially 49 other suitors, not even counting local governments, for what is perceived as an economic advantage. Is it an economic advantage, does corporate welfare outweigh the disadvantages of tax incentives, does the local economy even breakeven? The only way to know for certain is to measure the impact and outcome after the fact. This would be a daunting task because the impact is not merely tax revenue generated. There should be full disclosure by state and local governments of the extent of economic incentives. Taxpayers are being asked to accept that the initial cash incentive is the only incentive given. It is not. As taxpayers, we want to know the extent of the tax incentives and why the state and local government elected representatives believe it is a good idea to take from all taxpayers to give to a few. Taxpayers should object to corporate welfare on principle.