The only item on the Tuesday, July 1 City Council public hearing agenda is to consider granting an economic incentive of about $420,000 for Project Sage.
Although the name of the company seeking the economic incentive for a $55.7 million expansion and the creation of 280 new jobs is not named, the description of the company seeking the grant leaves little doubt that it is Honda Aircraft Company.
The unnamed company is described as an “innovative aircraft manufacturer that is preparing to expand its capacity and capabilities to commercialize and produce a new aircraft.”
The description also states, “The company currently employs approximately 688 full-time, North Carolina residents in Guilford County.”
There is currently only one “innovative aircraft manufacturer” at the Piedmont Triad International Airport that employs over 688 people and that is Honda Aircraft Company. Plus, Honda Aircraft has already announced its plans to begin manufacturing a new larger jet.
It is worth noting that the agenda also states, “The project is expected to generate public benefit to the City of Greensboro by positively impacting the property and sales tax revenues in addition to increasing business prospects for the City and surrounding area.”
PTIA is not in the City of Greensboro, which means the city will not be collecting property or sales tax from this new manufacturing facility. During the recent discussions of the 2023-2024 budget, which included a 4-cent property tax increase, several councilmembers noted that property taxes had to be increased to pay for the economic development growth in the area that was outside the City of Greensboro and therefore Greensboro did not benefit from increased tax revenue from these projects.
This would be another one of those projects.
The incentive will grant the company $1,500 for each new job created, with an additional $250 incentive per job for each new employee whose permanent address is in an impact zone or who is hired through NC Works Career Centers.
The agreement between Greensboro and the company will have a claw-back provision that requires the new jobs to be maintained for a certain period of time and for the capital investment to be made.
The average wage for the 280 new jobs will be about $88,700 a year with benefits and no new jobs will pay less than $15 an hour.