CARY -- Officials have denied an economic incentives package to an undisclosed technology manufacturer that wants to bring jobs to the town. But business leaders are still hoping that the company will choose Cary for its expansion.
The Town Council rejected a proposed economic incentives deal during a closed session Dec. 10 but didn't make the action public until early last week. The decision sheds new light on how and to whom the town chooses to dole out money for jobs. It also surprised economic developers and bothered the council's most fervent opponent of incentives.
"My honest opinion is that the majority of the board was against the deal because they were manufacturing jobs, not high-level, administrative executive jobs," Councilman Don Frantz said.
The company said it planned to create jobs paying about $30,000 to $35,000 a year. Some council members worried about lowering the town's median salary, which hovers under $47,000 per person. They were also concerned about how quickly the town would see a return on its investment.
Frantz has regularly voted against incentives deals, saying the charm of Cary alone should be enough to lure business. Yet he disapproved of the council's approach to this vote.
"The town is picking winners and losers," he said. "They may not be the jobs people want in the long run, but they'd be jobs to have while they look. ... The town just needs to focus on creating an environment where all businesses can succeed, and get the heck out of the way."
Cary does not have a formula for awarding incentives, officials say, preferring to examine companies case by case. The town has long sought high-paying, white-collar jobs to pad its tax base.
Town leaders agreed in August to give $75,000 - on top of $9.4 million offered by the state - to Deutsche Bank, which opened a Cary office Dec. 14. The company plans to create 319 jobs with an annual average wage of $88,213.
It was the fifth time in three years Cary has paid similar amounts or more to land new companies.
Though many municipalities give incentives to lure companies, this is the second time recently that incentives have been voted down in Wake County. Raleigh officials voted against incentives for the risk-management company IEM, which promised 430 jobs. IEM announced that it would go to Durham, which was expected to match a state grant.
Cary's denial in a down economy may ruffle some, said Jim Stella, an economic developer who worked on incentives deals for Durham and Apex. "What does it tell people in service jobs who don't have places to move up in town?" he said. "There are people around who don't have jobs, and this may not play well. This may be something that comes back to bite them."
Cary officials declined to identify the company for which they were considering the most recent package. Public officials are not required to reveal details about pending economic development proposals.
Councilwoman Jennifer Robinson said the rejection had little to do with the types of jobs. "There is not an anti-manufacturing sentiment in the town," she said.
Officials decided to reject the deal in part because of the recovery time on the package. It would have taken five years for the town to get its money back. Facing a tight budget, Cary wants to focus on deals that can be recouped in three years, Robinson said. Town officials still hope the unidentified company will choose Cary.
"We have a number of reasons why they should continue to consider us," including the town's proximity to the airport and the educated work force, said Sandy Jordan, vice president of economic development at the Cary Chamber of Commerce.
He declined to say when the company would make an announcement. He said the manufacturer is also looking in Durham and Franklin counties.
