Apple announcement of North Carolina campus 'imminent,' report says

Posted:
in General Discussion edited June 2018
Building on speculation that Apple is eyeing North Carolina's "Triangle" corridor as the potential site of a new U.S. campus, a report on Thursday claims the company will soon make an announcement officially naming the development as its selection.

Research Triangle Park
Source: Flatiron Law Group


Citing several sources familiar with the matter, WRAL TechWire reports an announcement is "imminent," suggesting Apple intends to reveal a major investment in Research Triangle Park. Colloquially known as the Triangle, the area is delineated by three anchor cities -- Raleigh, Durham and Chapel Hill.

Mention of Apple's plans were made in a report covering Amazon's search for a second "HQ2" campus. The online retail giant is including the Triangle in a shortlist of 20 possible sites for a proposed $5 billion campus, with downtown Raleigh standing as its current preference.

Amazon has heavily publicized its quest for a second home, pitting cities against each other in an auction-style bidding process. Apple, on the other hand, made clear it has no interest in such strategies, with CEO Tim Cook saying the company is "not doing a beauty contest kind of thing."

Earlier this month, the same publication reported Apple was conducting ongoing negotiations with government officials that, if productive, will yield an agreement.

At least one source said the Apple campus is a "done deal" if officials, including Gov. Roy Cooper, green-light an incentives package expected to grant the company 56 percent of the employer's share of withholding taxes after six years. Depending on hiring practices, that figure could jump to 90 percent.

Sources believe Apple's campus will be occupied by at least 3,000 employees, with others pegging the final count at between 5,000 to 10,000 workers.

If Apple decides to invest in the Triangle, sources said the company will first lease space in Cary, then transition to a larger 300 acre development in Wake County.

Though the Apple's initial investment is said to stand at around $2 billion, some insiders view the project as more valuable than Amazon's offer due in large part to the number of high-paying jobs and faster ramp-up.

It appears negotiations are going smoothly, as a source cited in today's report said recent talks between Apple and government officials "went much better than anyone expected." Whether a consensus was reached at the meeting is unknown.

Apple first announced intent to invest in a new U.S. campus in January, later saying the facility would not be located in California or Texas, states in which the company operates multiple campuses.
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Comments

  • Reply 1 of 31
    lmasantilmasanti Posts: 61member
    Here is a geometry problem. Apple use to be… “The round pegs in the square holes…” Apple Park is round… and the Triangle is not a square hole!
  • Reply 2 of 31
    SpamSandwichSpamSandwich Posts: 31,486member
    Time to leave California. Keep the Apple Park facility, but legally locate the headquarters out of state.
    racerhomie3
  • Reply 3 of 31
    radarthekatradarthekat Posts: 3,146moderator
    Hmm, what if the whole search was a ruse, meant to imply they simply needed more space somewhere, but that they had targeted Research Triangle Park right from the beginning, with the notion of concentrating their medical research and development in this new campus.  And it was never intended to be anywhere else other than RTP.  
    ronn
  • Reply 4 of 31
    vmarksvmarks Posts: 725editor
    Putting it in RTP certainly makes it easier for Tim and Eddy to visit Duke. Duke and UNC-CH both have excellent medical schools, which dovetails with their medical plans, and NCSU, UNC, and Duke all have strong engineering programs. People: The Triangle is not a corridor. It has I-40 running through it as a corridor, but Durham, Raleigh, and Chapel Hill geographically are not a corridor.
    ronnrandominternetperson
  • Reply 5 of 31
    vmarksvmarks Posts: 725editor
    lmasanti said:
    Here is a geometry problem. Apple use to be… “The round pegs in the square holes…” Apple Park is round… and the Triangle is not a square hole!
    Man, have you seen the squares around here? Citrix, Cisco, IBM, Lenovo, and if you go back in time, Nortel. Squaresville. (Yes, I'm not mentioning the nascent startup scene.)
    ronn
  • Reply 6 of 31
    A more social question: why does Apple need a substantial tax incentive? They're one of the wealthiest companies in the world. RTP has everything they say they need. So why give them a tax break? I get that Apple WANTS the tax break, and that our feckless politicians are happy to give away other people's money. But in a world where public budgets are under substantial stress, the idea of giving a wealthy, established company a significant tax break to get them to do something they know they have to do anyway is galling.
    gatorguydewmeronnfrankieStrangeDays
  • Reply 7 of 31
    rogifan_newrogifan_new Posts: 4,212member
    I read somewhere that this new campus was going to house customer service/technical support. I suppose it could expand to include R&D in the future,
    gatorguy
  • Reply 8 of 31
    netmagenetmage Posts: 290member
    Taxes aren't other people's money and a tax break isn't giving away other's people's money.

    Apple may need to build a new campus, but they certainly don't need to build it in NC.
    edited June 2018
  • Reply 9 of 31
    SpamSandwichSpamSandwich Posts: 31,486member
    A more social question: why does Apple need a substantial tax incentive? They're one of the wealthiest companies in the world. RTP has everything they say they need. So why give them a tax break? I get that Apple WANTS the tax break, and that our feckless politicians are happy to give away other people's money. But in a world where public budgets are under substantial stress, the idea of giving a wealthy, established company a significant tax break to get them to do something they know they have to do anyway is galling.
    Why? Because states are competing with each other for large, stable businesses which will need hundreds or thiusands of well paid employees (also known as “taxpayers”).
    edited June 2018
  • Reply 10 of 31
    lmasanti said:
    Here is a geometry problem. Apple use to be… “The round pegs in the square holes…” Apple Park is round… and the Triangle is not a square hole!
    Personally I was wondering how a triangle could be a corridor.
  • Reply 11 of 31
    gatorguygatorguy Posts: 21,229member
    A more social question: why does Apple need a substantial tax incentive? They're one of the wealthiest companies in the world. RTP has everything they say they need. So why give them a tax break? I get that Apple WANTS the tax break, and that our feckless politicians are happy to give away other people's money. But in a world where public budgets are under substantial stress, the idea of giving a wealthy, established company a significant tax break to get them to do something they know they have to do anyway is galling.
    Why? Because states are competing with each other for large, stable businesses which will need hundreds or thiusands of well paid employees (also known as “taxpayers”).
    The proper answer would have been NO Apple does not need the tax break as that's what he asked.

    They're just accepting what States are offering. IMO the States should not be doing so, particularly when they already offer good locations, an educated workforce, solid energy and transportation resources, a nice climate both business and weather-wise, etc. It seems to me like Apple would want to be in The Triangle anyway even without a tax break. My guess is that was their choice all along and there's no need to give away the house to get them there which is reportedly what the Governor's office is falling all over themselves to do. 
    ronnfrankieStrangeDays
  • Reply 12 of 31
    dewmedewme Posts: 2,188member
    A more social question: why does Apple need a substantial tax incentive? They're one of the wealthiest companies in the world. RTP has everything they say they need. So why give them a tax break? I get that Apple WANTS the tax break, and that our feckless politicians are happy to give away other people's money. But in a world where public budgets are under substantial stress, the idea of giving a wealthy, established company a significant tax break to get them to do something they know they have to do anyway is galling.
    Why? Because states are competing with each other for large, stable businesses which will need hundreds or thiusands of well paid employees (also known as “taxpayers”).
    At least Apple's presence, unlike Amazon's, results in a net addition to jobs and increases the taxpayer base. Taxpayer funded incentives and sweetheart deals used to attract a company like Amazon when it is simultaneously decimating traditional retailers in the state makes little sense to me. One subjective down side of the Apple move is that RTP is already a fairly affluent area and teaming with jobs and opportunities - for some. This move will likely increase the cost of living for locals and further exacerbate the stark demarcation of income inequality that already exists at the state level in NC. Apple can mitigate some of this impact by dedicating itself to improving accessibility to educational programs in the state that provide pathways for those on the other side of the inequality gap to get on a path that offers improved career opportunities in technology. They need to give something back for something they get, in my opinion.
  • Reply 13 of 31
    netmage said:
    Taxes aren't other people's money and a tax break isn't giving away other's people's money.
    I don't understand the point you're trying to make.  Is it semantics?  How would you say it?  "Taxes aren't other people's many any more"?

    I do agree with you that tax breaks isn't giving away other's people's money.  It's literally setting "other people" (in this case Apple Inc.) keep more of its own money.  At the end of the day Apple will be paying NC more than that would have otherwise, tax break or no.  The only question is whether Apple would have come anyway without the tax break,
  • Reply 14 of 31
    nunzynunzy Posts: 662member
    Apple will get lots of tax breaks. That is the nature of giant corporate entities. We all pay more taxes so that apple or other giant corporations build near us and so maximize their profits.

     if we don't give tax money to these kinds of giant corporations, they will leave the United States. We can already see that because Apple keeps most of its cash in other countries. the United States needs to give more to Apple to keep it here.
    edited June 2018
  • Reply 15 of 31
    jkichlinejkichline Posts: 1,336member
    I highly doubt that Apple would add a campus in a state so opposed to equal rights and social issues.
  • Reply 16 of 31
    frankiefrankie Posts: 373member
    Time to leave California. Keep the Apple Park facility, but legally locate the headquarters out of state.
    That would be so awesome to bring all these smart people to NC and turn the state blue.  It's already heading that way.
    StrangeDays
  • Reply 17 of 31
    frankiefrankie Posts: 373member

    nunzy said:
    Apple will get lots of tax breaks. That is the nature of giant corporate entities. We all pay more taxes so that apple or other giant corporations build near us and so maximize their profits.

     if we don't give tax money to these kinds of giant corporations, they will leave the United States. We can already see that because Apple keeps most of its cash in other countries. the United States needs to give more to Apple to keep it here.
    Is this sarcasm?  I sure hope so.
    nunzy
  • Reply 18 of 31
    gatorguygatorguy Posts: 21,229member
    frankie said:

    nunzy said:
    Apple will get lots of tax breaks. That is the nature of giant corporate entities. We all pay more taxes so that apple or other giant corporations build near us and so maximize their profits.

     if we don't give tax money to these kinds of giant corporations, they will leave the United States. We can already see that because Apple keeps most of its cash in other countries. the United States needs to give more to Apple to keep it here.
    Is this sarcasm?  I sure hope so.
    No that's Nunzy. :)
    nunzy
  • Reply 19 of 31

    http://www.newsobserver.com/news/business/article211436464.html

    How is it the huge Austin campus isn't being called the 2nd campus?
  • Reply 20 of 31
    SpamSandwichSpamSandwich Posts: 31,486member
    frankie said:
    Time to leave California. Keep the Apple Park facility, but legally locate the headquarters out of state.
    That would be so awesome to bring all these smart people to NC and turn the state blue.  It's already heading that way.
    Money knows no politics.
    nunzytallest skil
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