State and local governments are coming under increasing pressure to offer incentives to businesses that are expanding or re-locating. In general, we believe these incentives are unfair to existing businesses. However, a couple of recent examples highlight the difference between a giant corporation asking for a handout and a local company getting help at the right time.

The Lowe’s Corporation, the giant home improvement retailer headquartered in Mooresville, N.C., has announced plans to build a new store in Sylva. There’s little doubt that many residents will welcome the new store and its low prices, large inventory and convenience. Although we believe national, big-box retailers carry some negative baggage into small communities, that’s another story.

The problem here is that the retailer actually had the gall to ask Sylva leaders to sweeten the pot. “I’m here to give you guys, the town of Sylva, the opportunity to reduce site costs,” said Jennings Gray, who’s in charge of seeking out such deals for the company. He said the company often received a waiver of fees, grant money and even a sales tax sharing agreement.

So here’s the scenario: Sylva has a $2.3 million annual budget and doesn’t own its own water and sewage treatment system. It is struggling to provide its residents with the services they desire while keeping the tax rate reasonable. And the Lowe’s presence at the intersection of N.C. 107 and N.C. 116 is simply going to lead to increased traffic woes. The cost for solving those problems is likely to fall on the backs of taxpayers.

Lowe’s, on the other hand, had $36.5 billion in sales in 2004 from its 1,075 stores and is a Fortune 50 company. It’s top executives probably take home more than the annual budget of Sylva.

They want money from Sylva? It’s a laughable proposition.

In Haywood County, Plus Cleaners is a homegrown firm based in Canton that has about 70 employees. It was looking for a better location before the September ’04 floods came along and wiped outs its downtown Canton headquarters.

Owner Ron Sprinkle negotiated with the county Economic Development Commission for one of the remaining sites at the Beaverdam Industrial Park. The company purchased the land for $260,000 and contributed $26,000 toward the cost of sewer lines, leaving the county to subsidize $158,000 of the cost. A Haywood County incentive formula will offer the company a reduction of up to 65 percent in its property taxes for five years based on new job creation and upfront capital investment.

Helping local companies keep local jobs is important. Plus Cleaners — which supplies uniforms and other linen services — has a market that extends to South Carolina. It could have moved to Asheville or elsewhere, but local economic development officials wanted the firm here. Not only do we keep the jobs, but Plus also has a well-earned reputation as a supporter of community organizations and nonprofits. It gives back to the community

Did Plus get a good deal? You bet, but there is a real benefit for helping a local business keep its jobs here. As our local economy grows, Plus Cleaners can expect to add jobs to service restaurants and hotels that come into this market. So we get current jobs and the possibility of many more in the future.

The incentives game is gamble, but giving to companies like Plus sure feels a lot better than being asked to help a giant like Lowe’s.