Legislative Bulletin

December 12, 2001

Other stories below:
Supreme Court clears way for FedEx hub
Catawba County lands new paper-products manufacturer
ABB expands in Wake County

Economic Development News

Four new plants to create 2,700 jobs
Universal Leaf North America broke ground recently for a $100 million tobacco warehouse and processing plant in Nash County that will create 1,000 new jobs. The development was the largest of four economic development announcements by international companies which said they plan to invest a total of more than $350 million in the state’s economy and create 2,700 new jobs.

Universal Leaf, a tobacco processor, plans to build a new state-of-the-art facility that will draw 1,000 workers from Nash and surrounding counties including Edgecombe, Halifax, Franklin, Wilson and Warren. The average annual salary of the plant employees is expected to be $28,000.

Earlier, Gov. Mike Easley announced that Japan-based Viscotec Automotive Products will locate its first North Carolina facility in Burke County, creating 200 jobs and a $50 million investment. The company will occupy a 217,500-square-foot facility in Morganton and plans to begin operation in the spring of next year.

Easley visited New Bern and unveiled an expansion of BSH Home Appliances Corp., which will create more than 1,400 news jobs and a $150 million investment. The company, the third largest manufacturer of household appliances in the world, will expand its Craven County operations over five years. The company already has invested $50 million in New Bern and employs about 400 workers.

Easley also announced the dedication of BorgWarner Turbo Systems new North American headquarters and technology center in Asheville, bringing 100 new high-skilled jobs and a $50 million investment to Western North Carolina. The facility is an expansion of the company’s existing manufacturing and distribution facilities in South Asheville. The new headquarters and technology center will be housed in a 23,000 square foot, state-of-the-art facility and will hold test facilities for engines, engine systems and turbochargers.


Supreme Court clears way for Fed-Ex hub
The state Supreme Court has cleared the way for Fed-Ex to begin construction of its air-cargo hub Piedmont Triad International Airport by ruling that the condemnation of a resident’s lot near the runway meets a public purpose. The Piedmont Triad Airport Authority (PTAA) has agreed to build the $300 million sorting facility and lease it to FedEx, and sought to condemn a Kent Urbine’s two-acre lot in Guilford County for the hub. The case is No. 367PA00.

Urbine's attorney argued the airport authority wanted Urbine’s land for a private company rather than a public purpose. But a unanimous court disagreed. The justices pointed out the state Constitution provides for the expansion of airports and seaports. And it found that the airport authority -- not FedEx -- will own the property and FedEx will simply continue to be an airport tenant. James Exum Jr., the former chief justice who argued the case for the airport authority, said the case was important in two respects: It reconciled two sections of the state Constitution involving the expansion of airports and the condemnation of property only for public use; and it authorized the leasing of airport property to private businesses. "The court makes it clear that airports can expand and improve. They can lease land to private companies ... so long as that's the purpose of the airport," Exum said.

Maready also argued that Urbine's land was part of an incentive package that violated the interstate-commerce clause of the U.S. Constitution by giving FedEx an advantage that its interstate competitors didn't enjoy. Ted Johnson, the executive director of the airport authority, said that the airport can proceed to obtain a series of needed permits now that it has the court's permission to take two acres in the middle of the 160-acre site for the hub. 

In the opinion written by Justice G.K. Butterfield Jr., the court said, “We are aware that the timing of the events surrounding this condemnation proceeding point to an inference that the property is being acquired to prepare for the accommodation of an expanded Federal Express facility. Our review of the facts leads us to the conclusion, consistent with that of the trial court, that the condemnation proceeding arises from PTAA's long-range plan to develop air-cargo facilities as called for in the master plan. While the overtures from Federal Express may have hastened the timing of this development, they are not the genesis of PTAA's actions.” 


Catawba County lands new paper-products manufacturer
The von Drehle Corp. of Hickory will construct a $6.5 million commercial-paper products facility in Catawba County and hire up to 70 workers. Officials said the 150,000-square-foot facility, to be constructed on Highway 321 in the town of Maiden, will convert large paper rolls into products that can be used in paper towel dispensers or for other commercial purposes. The company will utilize an industrial revenue bond to finance the facility. The firm will be eligible for tax credits under the state's William S. Lee Quality Jobs and Business Expansion Act.  


ABB expands operations in Wake County
Swiss-based ABB Inc. will locate a new accounting shared services center in Cary and add staff to the U.S. headquarters of its new Group Process Service Center in Raleigh, employing about 150 people and investing almost $5 million. The accounting center will handle all accounting for the company's U.S. operations, which employ more than 15,000 people, and will employ about 130 workers. The group processes center, which was established in Raleigh in June, currently employs 1,100 people and plans to add about 25 more. ABB Inc., which has operations in more than 100 countries, had three other facilities in the Raleigh area, a utilities division, a power technology division and an automation technology division. The company's expansion may qualify for tax credits under state law.

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