, Staff Writer
Google tried to silence lawmakers and pushed -- at times with a heavy hand -- to influence legislation designed to bring the company to Caldwell County.The company demanded that legislators never speak its name, and had them scolded when word of its interest in North Carolina leaked out, according to records made public this week.As work proceeded on the bill to remove much of its tax burden, Google threatened to end negotiations because legislative staff didn't write exactly what it wanted. Commerce Secretary Jim Fain was asked to "prevail upon" the bill writer.Indeed, the first set of state documents released from the 13-month negotiations reveal a company obsessed with secrecy and not above bullying, tactics that helped get it tax breaks that could top $100 million over three decades."I sort of had to work in the dark," said Sen. Jim Jacumin, a Republican who represents Caldwell County. "That bothered me. They need to respect the laws of the land, even if they're business."Google, which runs the world's largest Internet search engine, this month announced that it would build a new computer center in Lenoir, bringing as much as $600 million in investment and as many as 200 jobs.It considered locations in at least seven other states, along with additional sites in North Carolina, the documents show. The decision was sweetened by the state and local tax breaks.One of the biggest enticements came from the General Assembly. Lawmakers last year approved a measure eliminating sales tax on electricity and equipment used by Internet computer centers. That provision has the potential to shave Google's tax bill by $89 million over 30 years.But Google was not happy with the legislative process."This legislation has remained cursed with unfortunate and petty dickering from the legislative drafting side -- mainly refusing to reinsert better word choice," Rhett Weiss, a Google executive, wrote in a June 13 e-mail message to Fain."Without the legislation being passed with its correct substance, our project will not proceed in North Carolina," he continued.Weiss complained specifically about Dan Ettefagh, a legislative aide writing the bill, and asked Fain to "prevail upon" him, directly or through his managers, "to be reasonable in his approach."Weiss also was unhappy that the legislature wanted an estimate of the tax revenue it would forego because of the legislation."I always believed North Carolina to be a good state in which to do business," Weiss wrote. "But the legislation's long saga increasingly concerns us. Will creating and operating a North Carolina facility continue to be so hassle-prone?"Efforts to reach Google officials for comment Wednesday were unsuccessful.'Perfectly appropriate'Most issues that concerned Weiss were minor, said Don Hobart, Commerce's general counsel and liaison to the General Assembly. Ettefagh did his job appropriately, he said, and Fain did not talk with him.Gerry Cohen, Ettefagh's boss, said his staff works for the lawmakers and downplayed Google's efforts. He said they hear from lobbyists whenever they're drafting a bill."It's perfectly appropriate for them to suggest changes," Cohen said. "If Google did not suggest language, I don't know how we would do our job."Critics have complained about the benefits afforded large companies seeking to expand in the state. They worry that leaders, in an effort to lure jobs and investment, offer too many concessions that favor new industry over existing business.The Google files shed light on the complexities of luring a new employer.
Staff writer Jonathan B. Cox can be reached at 836-4948 or jcox@newsobserver.com.