June 2, 2009

NCR Moving Out (See Update)

Filed under: Activism,Economy,Taxes & Government — Rose @ 9:32 am

This Atlanta Journal-Constitution article is just one announcing that NCR will leave Ohio for the Peachtree State. The Dayton Daily News article is here. This is devastating news.

Turns out that Governor Ted Mulligan Strickland offered the company $31.1 million dollars in tax incentives to stay. I find it inconsistent at best, that democrats constantly stomp their feet about tax cuts/incentives not working and yet that is their first line of action when a situation like this arises.

NCR’s response to the offer (emphasis mine):

(A last-ditch $31.1 million offer by Ohio’s governor to keep the company in Dayton fell short of Georgia’s bid, an NCR official said.)

“We did not receive [the Ohio] offer until this evening. … It pales in comparison to what Georgia is giving,” he said.

So, it looks like the great state of Georgia will be passing out those jobs. This excerpt from the Atlanta Business Chronicle speaks volumes (emphasis mine):

Relocating to Atlanta — the commercial capital of the Southeast — makes sense.

Four of the cities in Ohio — Youngstown, Canton, Dayton and Cleveland— are among the top 10 dying cities in America, according to an August 2008 report in Forbes.

“They [NCR] can’t recruit talent to move to Dayton, Ohio,” the source said.

Delta Air Lines Inc. (NYSE: DAL), The Home Depot Inc. (NYSE: HD) and Sun Trust Banks Inc. (NYSE: STI) — big NCR customers — are also based in metro Atlanta.

Ironic is this quote (given yesterday) from “Hugging Jon Husted”:

“We have on multiple occasions reached out to NCR in an attempt to identify ways to secure their jobs and grow and be successful in Ohio,” Husted said Monday evening. “I am not willing to give up hope.”

Really, Jon? Do you “hope” that no remembers the burdensome tax increases for which you voted thoughout your lame, political career?

You know Jon, perhaps if you had you spent more time in Dayton – where you are SUPPOSED to reside – versus your “precious Columbus beltway,” you could have given NCR more “hope” that with new leadership, Ohio will eventually bounce back.

Our thoughts & prayers are with the NCR folks whose lives will be affected by this.

_______________________________________________

UPDATE, June 3 (from Tom): Carrying up and expanding on from Cornfed’s comment yesterday, here is more from the Atlanta Business Chronicle

Georgia enticed NCR with $60M package

Georgia officials offered NCR Corp. more than $60 million to lure the company to the state, which is double what Ohio offered the company at the last minute Monday night.

….. As speculation grew in recent days that a move was imminent, Ohio Gov. Ted Strickland stepped in and offered NCR a $31 million incentive package to stay.

But Alison Tyrer, a spokesperson with the Georgia Department of Economic Development, said she became aware of efforts to bring NCR to Georgia a few months ago.

She said total incentives in Georgia for NCR will exceed $60 million dollars.

NCR’s total investment in the state will be $30 million, plus an annual payroll in excess of $150 million, enabling the ATM maker to take advantage of the Mega Job Tax Credit, according to Georgia officials.

The Mega Job Tax credit is worth $56.8 million dollars, Tyrer said.

She said, even with the incentives, Georgia will still make $49 million in “tax profit,” so-to-speak.

Long-time readers here know that I am not a fan of tax incentives and abatements, and am genuinely amazed that they have passed legal muster all these years, given that they institutionalize unequal tax treatment of businesses. In a sense, they’re a reverse Bill of Attainder. But that’s really beside the point in this situation. The playing field is what the playing field is. If Ohio had a business-friendly tax climate and tax rate structure, NCR, a $5 billion company, would have thought much longer and harder about spending probably $20 million or so to leave, if they had thought about it at all.

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10 Comments

  1. People and groups leaving Ohio seems to be a sadly recurring theme on here of late.

    Comment by zf — June 2, 2009 @ 10:15 am

  2. Tom

    It’s no big deal. As soon as the receipts from Keno come rolling in, everyone will forget this.

    Governor Ted

    Comment by gordon gekko — June 2, 2009 @ 10:15 am

  3. Sounds like the Department of Development dropped the ball. Hey Lee Fisher, instead of running around the state and campaigning, why don’t you promote jobs?

    Ohio is on it’s 3rd DOD in three months. No wonder NO ONE IS MINDING THE STORE.

    This is insane. Where are the media types? Why are they protecting this guy?

    Comment by Jason — June 2, 2009 @ 11:06 am

  4. Alison Tyrer, a spokesperson with the Georgia Department of Economic Development, …She said total incentives in Georgia for NCR will exceed $60 million dollars.

    NCR’s total investment in the state will be $30 million, plus an annual payroll in excess of $150 million, enabling the ATM maker to take advantage of the Mega Job Tax Credit, according to Georgia officials.

    The Mega Job Tax credit is worth $56.8 million dollars, Tyrer said.

    She said, even with the incentives, Georgia will still make $49 million in “tax profit,” so-to-speak.

    Tyrer would not confirm or deny if Georgia is currently working to attract Teradata Corp. — an NCR Corp. spin-off, headquartered near Dayton, but with a strong presence in Georgia.

    from
    http://atlanta.bizjournals.com/atlanta/stories/2009/06/01/daily22.html?ana=yfcpc

    via
    http://finance.yahoo.com/q?s=ncr

    Comment by Cornfed — June 2, 2009 @ 12:21 pm

  5. Wait a minute. Tax cuts don’t create jobs! That’s what Barack The One says.

    I am thrilled that another company will be moving to Atlanta, maybe even to the business park I am located in where there is already an NCR office.

    Comment by scottslant — June 2, 2009 @ 3:26 pm

  6. #5, To the extent that Ohio Yankees move down there, don’t let ‘em change, i.e., ruin, the politics of your state. Oh how I long for sensible Democrats like Zell Miller.

    Comment by TBlumer — June 2, 2009 @ 4:47 pm

  7. #2, actually Rose wrote it. But, as you see, she does great work.

    Comment by TBlumer — June 2, 2009 @ 4:51 pm

  8. Tax cuts = jobs…

    When you tax something, you get less of it. Ohio’s taxes are higher than Georgia’s. Guess where erstwhile Dayton-based company NCR is taking its 1,300 jobs? Keep this in mind the next time a tax-and-spend progressive like Jon Husted, Lee Fisher, or T…

    Trackback by Brain Shavings — June 2, 2009 @ 7:58 pm

  9. Even better. NCR is moving to my suburb. I’ll appreciate their contribution to the community and the influx of employees to help (hopefully) stabilize our real estate.

    Comment by scottslant — June 3, 2009 @ 8:20 am

  10. #9, Okay, that’s enough of rubbing it in. :–>

    You can have one more dig, but only if you lure Zell Miller out of retirement and talk him into joining a bi-partisan ticket as Lt. Gov. with John Kasich. :–>

    Comment by TBlumer — June 3, 2009 @ 10:40 am

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