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"House Bill 334 would appropriate $106.75 million in state Job Development Investment Grant funds for fiscal 2021-22 to “a high-yield project for an airplane manufacturer” at PTI." The state would provide $106.75 million in a Job Development Investment Grant, with some $15 million to be used for site work at the airport, $35 million for roadwork through the NC Department of Transportation and $56.75 million for the airport to use “for the construction of one or more new hangars.”
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Yeah, I've seen that but it doesn't say anything about when that money is to be spent. It certainly doesn't say it will be spent in "year one".
Regarding future years of JDIG money for BOOM, I don't know if it has been determined or publicized yet. The danger is if this goes along the same path as other supersonic startups, BOOM receives government grant money and then suddenly shut down, there is nothing to claw back. That's the risk.
"The project from Boom Technology, Inc., operating as Boom Supersonic, will be facilitated, in part, by a High-Yield Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today, the first JDIG of this classification ever awarded. Boom’s project is estimated to grow the state’s economy by at least $32.3 billion over 20 years, the time period when the grant could be active. Using a formula that takes into account the new tax revenues generated by the 1,761 new jobs, and accounting for a company investment of $500 million, the JDIG agreement authorizes the potential reimbursement to the company of up to $87.2 million, paid over a time period of 20 years.
Like all grants from the JDIG program, any state payments only occur following performance verification each year by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets."
"The project from Boom Technology, Inc., operating as Boom Supersonic, will be facilitated, in part, by a High-Yield Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today, the first JDIG of this classification ever awarded.Boom’s project is estimated to grow the state’s economy by at least $32.3 billion over 20 years, the time period when the grant could be active. Using a formula that takes into account the new tax revenues generated by the 1,761 new jobs, and accounting for a company investment of $500 million, the JDIG agreement authorizes the potential reimbursement to the company of up to $87.2 million, paid over a time period of 20 years.
Like all grants from the JDIG program, any state payments only occur following performance verification each year by the departments of Commerce and Revenue that the company has met its incremental job creation and investment targets."
They should have used this new classification of JDIG on a real company, not a silly pipe dream:
Per 60 Minutes:
What I want is to go anywhere in the world in four hours for a hundred bucks,” Boom Supersonic’s CEO, Blake Scholl, told CBS’s “60 Minutes” in November. A private company has never before built a supersonic jet. And a November report on CBS’s “60 Minutes” noted that the Overture has no engine yet. It doesn’t even have a working prototype for testing.
Per WRAL Techwire on 01/27/22: POTENTIAL CHALLENGES
Those jobs may well contribute to the economic growth and vitality of the region, said John Quinterno, as would any addition of skilled, higher-paying jobs across a number of occupations and industries.
That’s why it’s important to know exactly what is promised by all parties involved in the project, said Quinterno, as there is some significant business risk involved in the aerospace manufacturer’s plans. “There also is some significant business risk since Boom Supersonic is attempting to modernize a technology that has struggled mightily with commercial viability in the past,” said Quinterno. “Will the envisioned market for these supersonic transports actually be there in a post-COVID world, assuming the firm can handle all the technological challenges related to the development of the new aircrafts?”
If not, said Quinterno, the “firm’s promises about jobs and economic impact will be moot.”
They should have used this new classification of JDIG on a real company, not a silly pipe dream:
Per 60 Minutes:
What I want is to go anywhere in the world in four hours for a hundred bucks,” Boom Supersonic’s CEO, Blake Scholl, told CBS’s “60 Minutes” in November. A private company has never before built a supersonic jet. And a November report on CBS’s “60 Minutes” noted that the Overture has no engine yet. It doesn’t even have a working prototype for testing.
Per WRAL Techwire on 01/27/22: POTENTIAL CHALLENGES
Those jobs may well contribute to the economic growth and vitality of the region, said John Quinterno, as would any addition of skilled, higher-paying jobs across a number of occupations and industries.
That’s why it’s important to know exactly what is promised by all parties involved in the project, said Quinterno, as there is some significant business risk involved in the aerospace manufacturer’s plans. “There also is some significant business risk since Boom Supersonic is attempting to modernize a technology that has struggled mightily with commercial viability in the past,” said Quinterno. “Will the envisioned market for these supersonic transports actually be there in a post-COVID world, assuming the firm can handle all the technological challenges related to the development of the new aircrafts?”
If not, said Quinterno, the “firm’s promises about jobs and economic impact will be moot.”
Bam!
At least someone with expert knowledge in this area is admitting what several of us already knew. I will also reiterate that it's not just COVID that may sink Boom's dreams. There are also challenges around climate change impacts, sustainability, increased air traffic, ticket pricing, and others.
Now maybe others will accept the reality that there is risk involved.
Last edited by uncchgrad; 01-27-2022 at 12:59 PM..
Everybody needs to take a deep breathe and step back. It may well be a decade before this story plays and and the outcome is known. And nobody knows what that outcome will be at this time.
Everybody needs to take a deep breathe and step back. It may well be a decade before this story plays and and the outcome is known. And nobody knows what that outcome will be at this time.
For real. No need to pop the champagne and pat yourselves on the back just yet. Wait until we know for sure this company will go under. Then maybe you can gloat about how you were right on a forum that maybe 7 people read.
Everybody needs to take a deep breathe and step back. It may well be a decade before this story plays and and the outcome is known. And nobody knows what that outcome will be at this time.
It won't take that long. I suspect that they will run out of money sooner rather than later.
I was thinking that pOpshelf could take over the space, if BOOM fails.
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