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January 10, 2011

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Bull City Rising

Update: the folks at Ambacco just put forth the following press release, jointly sent from ATC's Michael Goodmon and the Durham Chamber's Casey Steinbacher. A classy way to exit:

"We at American Tobacco and the Durham Chamber of Commerce are happy that Red Hat, one of the Triangle's leading companies, will remain in the Triangle.

We thank Red Hat's leadership team for inviting us to respond to the company's RFP and for visiting downtown Durham and considering the hub of innovation that has taken root here -- a hub that includes such organizations and resources as Burt's Bees, Digitalsmith, McKinney, PocketGear, the American Underground, Bull City Forward and, soon, HTC.

Finally, we salute the Durham community -- from its public servants to its marquee companies to its many entertainment destinations -- for coming together so seamlessly to pursue Red Hat and other premiere businesses. We have all made a friend in Red Hat."

Joe

I'm really glad that Red Hat decided to stay in the Triangle (although I would have preferred that they pick the ATC site). However, the $18 million incentive sticks out to me: If I'm interpreting this right, 540 jobs (over nine years) = $33,333 per job, or a $5/sf/year subsidy based on their projected office space of 400,000 sf over that same 9 years. I'm sure there are a lot of other local companies who could some of that these days.

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