Will New Business effect areas?? (Raleigh: transplants, sales, real estate)

[Weis02]

In today Raleigh N&O there was an article that Novartis is building in Holly SPrings but with the tax incentives offered to them to come there, they will have a shortfall of money.

The article states they will not ask the tax payers for the money but are looking for investors.

not know whom the town will ask for $1.5 million of the $8.85 million shortfall

I find it interesting as could more of this occur in the future, NC trying to bring jobs to areas offering tax incentives but having a tax shortfall?

While politicians will always say they won't raise taxes, if they can't get the money anywhere else, what choice is left.

I found this to be interesting and wonder if more of this will occur in the future...and while buisness in an area generally helps an area grow will it also hurt it too??

[scottinmass]

Also Fidelity Investments is going to be leasing the old Nortel Building in RTP until they have their $100M campus built there to be completed around 09.
They are getting huge tax breaks from the state: 69M from a state grant, no sales tax on the building materials for the project, etc. the good thing is they are guaranteeing a salary of at least 58k for each employee and I would estimate half of them will be new hires from the area the rest will be transplants from Mass.
Yes, I am concerned that more growth will lead to shortfalls. But its one of those things: cross that bridge when we get to it!, as the old saying goes.
At least from MY perspective our family will get the heck out this MA. debaucle here, exam: BIG DIG, Gay marriage, Ted Kennedy and the list goes on. I'm coming there just don't know when just yet.

[Weis02]

I read about the Fidelity thing. It appears a lot of business building in the area is anticpated in and around 2008 and 2009 - there will be a lot more growth in these areas to come...Most of the research I've seen with regard to schools, etc do anticipate growth to 2010 - I just think it will go beyond this and planning for it is an issue in all areas - should these shortfalls continue, makes you wonder what it will do to the tax base there...Union County had an article a month or so back that by 2010 they expect taxes to increase 17.75 cents...it is still only with this increase at about 80 cents per hundred - again these are estimates and I do not think any area can truly estimate the cost with all this growth...

[scottinmass]

Still, the real estate taxes will be 25% cheaper in NC for us than in MA. So therefore we could absorb a tax hike. Plus my wifes salary and Bonuses far excede inflation right now. We max out 401k, fund children's education and double pay mortgage some months, so she will keep same salary when we transfer plus get payraises, plus lower cost of living= affordabilty.