THE VIRGINIAN-PILOT
Copyright (c) 1995, Landmark Communications, Inc.
DATE: Wednesday, July 19, 1995 TAG: 9507190517
SECTION: BUSINESS PAGE: D1 EDITION: FINAL
SOURCE: BY STEPHANIE STOUGHTON, STAFF WRITER
DATELINE: VIRGINIA BEACH LENGTH: Medium: 51 lines
Avis Inc., the nation's second-largest car-rental company, is close to signing a deal to build an administrative and operations center in Virginia Beach, city and company officials said Tuesday.
``All the documents are being Federal Expressed to their headquarters,'' said Mark R. Wawner, project development manager for the city's Department of Economic Development. ``We hope to have a response by the end of the week.''
The project represents a $10 million investment and 400 guaranteed jobs, though Avis may eventually employ up to 500 people in Virginia Beach, said Donald Maxwell, the city's economic development director.
Maxwell said landing the project was ``very competitive.'' Other cities vying for Avis' center included Tampa, Fla., and Norfolk.
Virginia Beach partly lured the company with a $340,000 incentive package. But Avis also liked the area's quality of life and labor pool, company spokeswoman Demetria Mudar said.
Avis has been looking to expand from its Garden City, N.Y., headquarters and Tulsa, Okla., reservation center, Mudar said. The company needs a back-up reservation center, and its New York location is too crowded, she said.
Tuesday morning, the city's Development Authority approved an agreement for Avis to buy the property in Centre Pointe Office Park for $94,000. The property is estimated to be worth between $1 million and $1.4 million.
According to the agreement, Avis will initially build a 100,000-square-foot office building and then tack on 50,000 square feet of office space. It will break ground and complete the initial building next year, said Eric Hauser, a Virginia Beach lawyer representing Avis.
Avis also has indicated that it may expand beyond the 14 acres, possibly doubling its size in Virginia Beach, Hauser said. The city plans to give Avis a five-year option to buy other pieces of land. Those properties have not been selected.
Avis is No. 2 in the car-rental industry, behind leader Hertz, a unit of Ford Motor Co. Last year, Avis had more than $1 billion in revenues nationally and more than $3 billion worldwide.
The company has about 13,000 employees nationwide and operates in more than 4,500 locations worldwide. ILLUSTRATION: Map
STAFF
by CNB