Triad to roll out red carpet for Dell

As state officials hammer out the final touches on a deal that will bring Dell USA to North Carolina, county officials in the Triad say they are considering the impact the computer manufacturer will have on the area.

Dell is expected to announce within the next month the exact location where it will locate its computer manufacturing facility. Potential locations include Forsyth and Guilford counties.

"We really have not received any requests from Dell yet," said David Plyler, vice chairman of the Forsyth County Board of Commissioners.

He added that since the details of the deal are still being worked out, it is too early to speculate on the impact Dell could have on Forsyth County.

To attract Dell, which is anticipated to bring at least 1,500 jobs to North Carolina by 2009, the N.C. General Assembly approved an incentives package worth $242.5 million over the next 20 years. The 400,000-square-foot plant is expected to start operating by fall 2005.

The mixed bag of grants and tax breaks means that for each item it manufactures, Dell will receive $15. After the term of the package expires, it will earn $6.25.

Dell must also invest $100 million into the project as part of the agreement.

According to a press release from Gov. Mike Easley's office, the N.C. Department of Commerce estimates that the deal could bring the state an additional 6,000 jobs at companies that would do business with Dell.

Unemployment in September reached 3.8 percent in Forsyth County and 4.4 percent in Guilford County. Both areas have fallen victim in recent years to heavy job losses in manufacturing.

As part of the deal, arranged through the governor's office, the average salary will pay $28,000 and will include a health benefits plan.

And though there will be costs associated with the incentives package, Plyler said there also will be benefits.

"You also have to look at several factors: what it will do for the economy, what it will do for unemployment and what it could potentially do for the entire region," he said.

Robert Landreth, outgoing chairman of the Guilford County Commissioners, said the location of the Dell plant will affect the kinds of costs the county will bear.

That would depend on whether the potential site already is in a tax base or if private land were donated.

Otherwise, he said, "I'm not so sure the county could come up with (the money)."

He added that safeguards, such as requiring a certain amount of employment, always are built into large incentive packages.

Plyler said that even if the Dell factory were located outside the tax base, having the Dell name would attract other companies and their employees within that tax base.

Dell, which is headquartered in Round Rock, Texas, employs about 50,000 people worldwide.

Until plans are finalized, officials say it is hard to determine the effects of the package.

But Landreth said it will provide significant benefits.

"Guilford County is always in need of better jobs, especially jobs that have health insurance benefits. And that goes for any county."

Contact the State & National Editor at stntdesk@unc.edu.