CHARLOTTE, NC — Chiquita shareholders voted to accept a $681 million offer from two Brazilian companies, shooting down a deal that would have moved the company headquarters out of Charlotte.
It’s not clear what the new deal means for Chiquita’s future in the Queen City, and millions of incentive dollars the company is set to receive.
“Other states are pretty good at it,” says Charlotte city councilman Greg Phipps. “And sometimes it feels like they’re eating our lunch.”
It’s the way the game is played. Cities, counties and states offering incentives and tax breaks to big business; trying to attract new jobs.
“It’s a game that a lot of people don’t like to play,” says councilman Micahel Barnes. “And we’re trying to figure out how to become as comfortable as possible with playing it.”
The City of Charlotte, Mecklenburg County and North Carolina promised Chiquita more than $20 million over 11 years, in return for 300 news jobs and the company moving its headquarters to the Queen City.
A proposed merger with a European company, Fyffes, would have moved that headquarters to Dublin, Ireland; a move designed to cut the company’s US tax bill.
“I don’t like it when companies want to leave this country in order to avoid taxes,” says Barnes. “But there are some federal tax issues that the government has got to resolve, that we can’t resolve.”
Chiquita shareholders voted down the Fyffes’ deal, accepting a $681 million deal from two Brazilian companies instead.
It’s not clear if this means the jobs and headquarters will remain here. But if the company moves, the deal with Charlotte requires repayment of incentives received.
“The main thing is the certain triggers that come with those incentives,” says Phipps. “The numbers of jobs and things. We’ve got to make sure that has integrity.”
“There are clawbacks in there to protect some of the financial pieces,” says Barnes. “But the big issue will be making sure the jobs stay in Charlotte. Hopefully they will. We don’t know yet.”
Chiquita received $5 million from the city, county and state for moving costs when the headquarters relocated from Cincinnati to Charlotte in 2012.
