PPD is on track to receive almost all of its first incentive payment from New Hanover County and the City of Wilmington even though it didn't hire as many people as anticipated.
WILMINGTON, NC (WECT) – PPD is on track to receive almost all of its first incentive payment from New Hanover County and the City of Wilmington even though it didn't hire as many people as anticipated. The company's higher-than-expected investment made up for its jobs shortfall based on the way the contract was structured.
The city and the county agreed in 2005 to award PPD $2.1 million in a series of payments starting this year in exchange for the company constructing its world headquarters in downtown Wilmington. The incentives contract includes benchmarks for jobs and direct investment, which includes costs to buy the land and construct and equip the facility.
The research company was expected to create at least 1,857 local jobs by this year, but it actually hired 1,484 people, according to a letter from Wilmington Business Development to the city and county managers.
The letter said PPD invested $110.4 million, far exceeding the $80 million minimum required by the incentives contract.
Using a calculation outlined in the contract, the city and county determined that they owe the company 97.25 percent of the first agreed-upon payment.
County Manager Chris Coudriet said he will issue the $291,750 payment unless PPD challenges the county's calculations.
The city didn't budget for the incentive payment this year. Council is expected to decide next week if it wants to draw from reserves to pay the $121,562.50 payment, according to City Spokeswoman Malissa Talbert.
"We are proud of the tangible successes generated by our public-private partnership," said David Simmons, chairman and CEO of PPD. "We have increased PPD's Wilmington-based employment by nearly 500 people and invested more than $110 million in downtown. In partnership with city and county leaders, we have helped revitalize downtown, reclaimed a previously contaminated industrial site on the Cape Fear River and solidified our headquarters base in Wilmington for our global operations. We believe these outcomes are a win for our company and a win for our community."