(The Center Square) – Packaging of up to $3.5 million in financial incentives to The Clearing House are part of an $11.5 million expansion in North Carolina.
Mecklenburg County and the city of Charlotte are putting forth incentives valued at $210,000, each says; a $2.43 million Job Development Investment Grant, coupled with $810,000 directed into a state utility account, make the state’s commitment $3.24 million, the state Commerce Department says.
North Carolina’s Job Development Investment Grant program is overseen by the state Commerce Department. Funding is discretionary and based on performance. No taxpayer money goes out up front; rather, jobs created, wages and capital investments are in the equation as is the economic stress level of the counties as rated in three tiers by the state.
The Commerce Department said average annual salary for the 200 jobs added in the county would be $162,322. It compared that to the county average of $90,706. The Clearing House is a private banking association owned by a group of the world’s largest commercial banks, offering private-sector payments system infrastructure that clears and settles more than $2 trillion daily.
Economists question the effectiveness of financial incentives to businesses to expand or come to a new state. Context is encouraged when wages are introduced because a few corporate leaders at a site can skew the average higher while the median wage would not have the same ratio.
In a statement made available to The Center Square, President and CEO David Watson said in part, “With its deep talent pool and strong financial services community, Charlotte is an ideal location for The Clearing House to build on our longstanding presence in North Carolina and strengthen relationships with clients in the region while creating new opportunities to connect with financial institutions across the country. We look forward to becoming an even more active part of the area's thriving banking and financial services industry.”
The Commerce Department says the state, led by Charlotte, is the third largest banking hub in America. Pending inclusion or exclusion of varying analytics, the Commerce Department says the finance industry is among the state’s leaders along with agriculture and agribusiness; manufacturing; life sciences, pharmaceutical and healthcare.
In a statement made available to The Center Square, Commerce Secretary Lee Lilley said in part, “Companies like The Clearing House can bank on the opportunities, workforce, and strategic advantages that North Carolina offers growing financial firms.”