THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Sunday, June 4, 1995 TAG: 9506030003
SECTION: COMMENTARY PAGE: J4 EDITION: FINAL
TYPE: Editorial
LENGTH: Medium: 90 lines
Eyebrows and fears were raised in Richmond last week when the top officer of one of the area's seven Fortune 500 companies said ``a Motorola-type package'' would help persuade the company to stay put.
Robert C. Williams, chairman and chief executive officer of James River Corp. made that statement to a Richmond Times-Dispatch reporter. Williams had met the pervious week with city and state officials to see what goodies his company would receive if it stayed.
The state earlier offered Motorola $85.6 million in incentives to build a $3 billion high-tech factory in Goochland County. The lure was taken, and this past April Motorola announced plans to employ 5,000 people at the plant within 10 years.
Williams seemed to be saying, ``If it's worth that much to lure a big plant here, it should be worth a lot to keep a major company's headquarters here.''
James Rivers' major brands are Quilted Northern bathroom tissue, Brawny paper towels and Dixie paper cups and plates. It employs 450 people at its corporate headquarters near the James River rapids in Richmond and about that many at its consumer-products business headquarters in Norwalk, Conn. It will pay $223,475 in Richmond real-estate taxes this year.
At some point, the company could consolidate both its headquarters in either Richmond or Norwalk, depending on which city offered the better deal.
On Wednesday, Richmond Mayor Leonidas B. Young said he favors a number of incentives for James River, though he didn't name them. Young said any Norwalk deal offered would be matched by Richmond.
Also Wednesday, James River employees received a letter from Williams, the company's top officer, saying company executives had concluded that the Richmond and Norwalk offices both would continue in operation. The letter also said, ````We do not intend further consideration of the location issue for several years.''
On Thursday, Richard Elder, company vice president for corporation communications, said he did not know if any concession had been offered the company.
A dangerous precedent could be set. It's one thing to offer incentives to a giant corporation to locate a high-tech plant in Virginia. It's another thing to begin promising concessions to a company to keep it around.
The Richmond mayor is smart to listen hard to James River and try to keep the corporation happy. But cities and states should keep in mind that whatever they do for one company, they will be asked to do for many more, and the demands easily could escalate into extortion.
Eyebrows and fears were raised in Richmond last week when the top officer of one of the area's seven Fortune 500 companies said ``a Motorola-type package'' would help persuade the company to stay put.
Robert C. Williams, chairman and chief executive officer of James River Corp. made that statement to a Richmond Times-Dispatch reporter. Williams had met the pervious week with city and state officials to see what goodies his company would receive if it stayed.
The state earlier offered Motorola $85.6 million in incentives to build a $3 billion high-tech factory in Goochland County. The lure was taken, and this past April Motorola announced plans to employ 5,000 people at the plant within 10 years.
Williams seemed to be saying, ``If it's worth that much to lure a big plant here, it should be worth a lot to keep a major company's headquarters here.''
James Rivers' major brands are Northern bathroom tissue, Brawny paper towels and Dixie paper cups and plates. It employs 450 people at its corporate headquarters near the James River rapids in Richmond and about that many at its consumer-products business headquarters in Norwalk, Conn. It will pay $223,475 in Richmond real-estate taxes this year.
At some point, the company could consolidate both its headquarters in either Richmond or Norwalk, depending on which city offered the better deal.
On Wednesday, Richmond Mayor Leonidas B. Young said he favors a number of incentives for James River, though he didn't name them. Young said any Norwalk deal offered would be matched by Richmond.
Also Wednesday, James River employees received a letter from Williams, the company's top officer, saying company executives had concluded that the Richmond and Norwalk offices both would continue in operation. The letter also said, ````We do not intend further consideration of the location issue for several years.''
On Thursday, Richard Elder, company vice president for corporation communications, said he did not know if any concession had been offered the company.
A dangerous precedent could be set. It's one thing to offer incentives to a giant corporation to locate a high-tech plant in Virginia. It's another thing to begin promising concessions to a company to keep it around.
The Richmond mayor is smart to listen hard to James River and try to keep the corporation happy. But cities and states should keep in mind that whatever they do for one company, they will be asked to do for many more, and the demands easily could escalate into extortion. by CNB