
                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SUNDAY, October 8, 1995                   TAG: 9510090106
SECTION: VIRGINIA                    PAGE: A-12   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Medium

VIRGINIA'S INCENTIVES

Virginia's governors have long been expected to be salesmen, pitching the state to business prospects. Under Gov. George Allen, the state also has gotten more deeply involved in offering large incentive packages to potential employers.

HOW VIRGINIA'S INCENTIVES COMPARE

Company Cost of incentives per job

1980 Tennessee Nissan $11,000

1985 Kentucky Toyota $50,000

1993 Alabama Mercedes Benz $200,000

1994 Virginia Disney's America $24,484*

1995 Virginia Motorola $17,920

1995 Virginia IBM/Toshiba $12,058

*Deal canceled after Disney withdrew

Source: Virginia Department of Economic Development; House Appropriations Committee and Senate Finance Committee

A CLOSER LOOK AT VIRGINIA'S DEALS

Motorola

Goochland County

(Based on Employment of 5,000 in 10 years)

$16 million - To set up engineering school at VCU

60 million - Performance Grant to Motorola, $12 million/yr

4.6 million - Major Facility Tax Credit

5 million - Workforce training at community colleges

Total: (EQ) $85.6 million

Payback is 9.3 years

$276 million in direct taxes over 20 years

Average salary: $35,000

Toshiba/IBM Joint Venture

Manassas

(Based on employment of 4,000 within first 10 years)

$38.4 million - Performance grant (7.6 mil/year for 5 yrs)

3.8 million - Major Facility Tax Credit

2.0 million - Higher Education

4.0 million - Workforce Training

Total (EQ) 48.2 million

Payback is 10.3 years

$133.8 million in direct taxes over 20 years

Average salary: Unavailable.

Disney's America

Haymarket

(Based on employment of 6,400)

$82.4 million - Bonds for Interstate 66 improvements

49.1 million - Bonds for Roads leading into Disney

10.4 million - Signs

1.8 million - Workforce Training

13.0 million - Cooperative Advertising

Total: 156.7 million

Payback: Unavailable.

Taxes: Unavailable.

Average salary: Unavailable.

by CNB