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FIRST ON 3: Invista to cut jobs

READ MORE: FIRST ON 3: Invista to cut jobs
invista300.jpg

Bad news tonight for some employees and contractors at Invista's Wilmington plant. The company announced today it will cut 50 jobs.

In 2007 New Hanover County Commissioners approved a $3 million incentive package for Invista contingent on the company investing $200 million in the plant and creating 50 new jobs, but the deal never went through.

The incentive plan was to be paid over six years, but a company spokesperson said in 2008 Invista executives realized they could not hold up their end of the deal because of tough market conditions. As a result New Hanover County never paid the incentive money, and Invista never created the jobs.

Instead, Invista is now cutting 50 jobs. The company, which produces polyester fibers, resin and other polymers is also stopping production of one of its chemicals.

County Commissioner Bill Caster was on the board three years ago when it approved the incentive package. He says it's disappointing to see the lay-offs.

"We don't like 50 people to leave no matter what the deal is, because those are 50 citizens paying taxes and spending money here," Caster said. "So that's a shame. Invista's a great company and has done a lot for the area, so we certainly don't like that."

In a statement Invista said it's a tough decision, but it is key to the success of the company.

Caster said it's sad to see these jobs go, especially in such a tough economy. He says a big motivator in approving incentive packages is to create jobs for our community.

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Future product?

Im wondering where you have heard of a "future product" and that they will bring back the ones that get laid-off. Just curious. Thanks for any help!!!!

They are working on changing

They are working on changing over to create a different material from what they are currently producing which will, over the course of a few years, actually bring more jobs back to the company. Most of the people who are being laid off are post-retirement age and several of these 50 people will be brought back once the new production is underway.

THE POINT IS...

"As a result New Hanover County never paid the incentive money"...

So, do they now have to give

So, do they now have to give back their incentives?

incentives

Evidently this aired too early for some and their eyes are foggy / comprehension skills are overloaded. All together now, read the
article several times to comprehend. The incentive was never paid - duh.

You need to read the article.....

"The incentive plan was to be paid over six years, but a company spokesperson said in 2008 Invista executives realized they could not hold up their end of the deal because of tough market conditions. As a result New Hanover County never paid the incentive money, and Invista never created the jobs."

This was the direct quote from the article. Nothing to repay.

Read the article

"As a result New Hanover County never paid the incentive money, and Invista never created the jobs."

Let's hope

Hopefully, Invista is not looking forward to still receving the additional years of incentives. Time will only tell if the city leaders had sense enough to plan for this in the original agreement. Otherwise the taxpayers have been taken for another ride. Can you see your property taxes increasing to cover this?

Reread the article. The

Reread the article. The incentives were never paid.

Another example

Here is another example of the folly and mismanagement of public funds when government tries to skew economic matters for the benefit of a favored group or entity. In this case $150,000 per job was to be paid by all taxpayers to a company for investment and employment. Now that promise appears to evaporate into the ether. What makes those jobs more valuable to all citizens than the jobs created or continued by small and medium businesses?

I would posit that the payment of bribes (which is what they are) to select businesses with taxpayer money hurts the business climate as a whole by artificially raising taxes for all other businesses (and individual taxpayers as well). When will politicians realize that lowering tax rates for all and creating a favorable business climate for all creates far more jobs, employment income and tax revenues than the government trying to cherry pick the winners and losers in an economic lottery based on misguided largess?

Invista, Tax Incentives and $324,000+ Salary for WID Head

$324,248. More than the U.S. Vice President, Secretary of State, Secretary of Defense of the United States.

$324,000. That's how much the taxpayer supported head of Wilmington Inudstrial Development (WID) received in salary in 2008...$324,248.

Bill King of Invista, chairman of WID... behind tax incentives, including the $4.2 million for Titan Cement (and its maximum 160 mostly non-local jobs) defended the salary for the Executive Director of WID, which hasn't had a success since Verizon about 7 years ago.

Most executives who fail to accomplish anything in seven years get fired. But not in New Hanover County.

Kudos to the Lumina News for publicizing the ridiculous salary, and to County Commissioner candidate Brian Berger for being the only one either in office or running for office with the courage to raise questions about this example of government cronyism and incompetence (he has a website at www.voteberger.com)

A-Men

A-Men

Jobs coming back? New product?

I am an employee of Invista "for now" and havent heard of the new rumor of a "new product" in the future or bringing back the ones that are laid off. Where did anyone hear this??