Arch Capital Group Eyes Raleigh, North Carolina, for Operational Hub
Arch currently employs approximately 575 people in North Carolina, and this project will bring several operational functions supporting Arch’s long-term growth to Raleigh.
“The overall attractiveness of the area, combined with our existing operations in North Carolina and the incentives offered by the state were all factors in our decision to create an operational hub in Raleigh,” said Marc Grandisson, President & CEO of ACGL. “This region offers a talented and educated labor force, a collaborative business environment, and an appealing quality of life for our employees."
“Our state’s talent, top-notch universities and research institutions make us a tech and finance powerhouse,” said North Carolina Commerce Secretary Anthony Copeland. “Companies like Arch select North Carolina for its strong business climate and workforce. We welcome the company’s investment in Wake County and the 365 well-paying jobs this project will bring.”
Arch’s new project in Wake County will be facilitated, in part, by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today. Over the course of the 12-year term of this grant, the project will grow the state’s economy by an estimated $760,747,000.
Using a formula that accounts for the new tax revenues generated by the new jobs, the JDIG agreement authorizes the potential state reimbursement to the company of up to $5,106,000 spread over 12 years. State payments only occur following performance verification by the Departments of Commerce and Revenue that the company has met its incremental job creation and investment targets. JDIG projects result in positive net tax revenue to the state treasury, even after taking into consideration the grant’s reimbursement payments to a given company.
Because Arch chose to locate in Wake County, classified by the state’s economic tier system as Tier 3, the company’s JDIG agreement also calls for moving as much as $1,702,000 in new tax revenue generated through the grant into the state’s Industrial Development Fund – Utility Account. The Utility Account helps rural communities finance necessary infrastructure upgrades to attract future business. Even when new jobs are created in a Tier 3 county such as Wake, the new tax revenue generated through JDIG grants helps more economically challenged communities throughout the state.
Partnering with N.C. Commerce and the EDPNC on this project were the North Carolina General Assembly, the North Carolina Community College System, Wake County, the City of Raleigh, Wake County Economic Development, Wake Technical Community College, the Capital Area Workforce Development Board and the Greater Raleigh Chamber of Commerce.
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