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Costs of Google incentives could hit $260 million 7:31 AM
07:31 AM EST on Thursday, February 8, 2007
RALEIGH, N.C. -- Incentives to lure Google to build a data center in Caldwell County could cost the public as much as $260 million, making it one of the largest incentive packages the state has ever assembled, The News & Observer reported Thursday.
Records made public this week also show the deal was created in strict secrecy.
Google said last month it would build the $600 million center near Lenoir and create as many as 210 jobs with average salaries of $48,000.
Records show that city and county tax breaks for Google amount to $165 million over 30 years in addition to state tax breaks and incentives totaling $94 million, the newspaper reported.
In addition, the company will benefit from about $700,000 in state-funded road construction near the plant. Lenoir County also is seeking $222,550 in public money for site preparation.
"The number and scale of economic incentives for which Project 'Google' is eligible are virtually unprecedented in N.C., but so are the potential long-term benefits," said a statement filed by the Caldwell area economic development group.
Google said the incentives were instrumental in bringing the plant to North Carolina. The incentives also depend on how much Google invests.
"In the case of this project, the vast majority of the incentives are taxes we would not pay in other states," said Google spokesman Barry Schnitt. "They level the playing field."
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