Wilmington and New Hanover County officials in separate meetings next week will weigh the costs versus the benefits of awarding AAIPharma Services Corp. up to $500,000 in industrial investment incentives over the next five years.
If elected officials approve the incentive proposals, the money would be given to the company only if it follows through with a plan to spend at least $20 million to improve and expand facilities in Wilmington and create at least 50 new jobs that pay an average of $77,000 a year, according to city and county agenda documents.
“We’ve really focused a lot on job creation and economic development, and the goal is to allow AAIPharma to grow their operations in Wilmington,” said Jonathan Barfield, chairman of the New Hanover County Board of Commissioners.
AAIPharma develops and manufactures pharmaceuticals through several facilities, including its headquarters and labratory in Wilmington. Barfield said encouraging growth in sectors like the pharmaceutical industry in Wilmington could help the city become "somewhat of a Research Triangle Park."
“This is one step in that direction,” Barfield said.
County commissioners will conduct a public hearing and consider granting up to $55,000 per year for a total of five years, not to exceed $275,000, to AAIPharma during their meeting at 4 p.m. Monday in Room 301 at the New Hanover County Courthouse, 24 N. Third St.
Scott Satterfield, CEO of Wilmington Business Development, is scheduled to present the industrial investment grant proposal to the commissioners.
Commissioner Woody White said he wants to hear what AAIPharma has to say before making a decision.
“I just want to make sure it’s critical in their decision making, and it’s not an after-the-fact handout because if it’s an after-the-fact handout, then it’s unfair tax policy as it relates to other employers and taxpayers in the county,” White said Friday. “But if it’s a true incentive and plays a pivotal role in their decision making, then the return on investment makes more sense for the county.”
Explaining his reservations, White said, “Job creation and business expansion in a recovering economy is not an anomaly that typically deserves incentives. It’s something that happens as a function of the regular market process.”
He said that although he did not want to talk about specific incentives that have been previously considered by officials, “my comments on this particular request are informed by prior experiences and questions I’ve had.”
Wilmington City Council’s public hearing on the proposal is scheduled during the council’s meeting at 6:30 p.m. Tuesday at City Hall. For its portion, the city will consider whether to approve a grant of $45,000 a year for five years.
Charlie Rivenbark said so far, he’s in favor of the proposal.
“There’s a group there that’s getting ready to spend some major dollars improving their facility, adding to their facility, which is tax base and additional jobs, good-paying jobs,” Rivenbark said. “And of course it’s merit based. They don’t produce, they don’t get the merit.”
Rivenbark said AAIPharma is a good example of a company already in Wilmington that it makes sense to support.
“I think that so many times you look at the shiny object out there in another state, and you kind of maybe ignore what you’ve got here,” he said.
