From the desk of the County Manager,

Last month, Durham County announced two major economic development projects, bringing a total of $570 million in new investment and 1,300 new jobs. Aspida, a rapidly growing financial services firm, selected Durham over the Richmond, Virginia region, for a new global headquarters. Novartis, a Fortune 500 pharmaceutical company, picked Durham over Dallas-Fort Worth, Texas, for two new manufacturing sites.

Durham County Government has long recognized that strategic economic development incentives do more than attract businesses – they build a stronger, more resilient community for all residents. When companies choose Durham County and the region, they bring quality jobs, tax revenue, and innovation that benefit our entire economy.

The most recent incentive awards were led by the State of North Carolina through the Department of Commerce. The State's commitment to keeping North Carolina competitive helps attract and retain businesses that support the overall economy. When opportunities arise, Durham County partners with the State to help recruit for these projects by offering performance-based incentive awards to companies. These incentives, stacked along State incentives, are critical to securing big projects that bring well-paying jobs, significant capital investment, and a demonstrated commitment to our community.

At the December 8th meeting, the Board unanimously granted performance-based incentive awards of $5,500,000 with Novartis and $750,000 with Aspida. The Economic Development website highlights other partnerships which can be found here. In addition, further information can be found on the Economic Development budget using this link.

I recognize the “incentive” can evoke skepticism among some, but let me share how Durham County does it differently:

• Our incentive awards pay for themselves. The awards are funded by *new* tax revenue that would only occur if the project located in Durham. We typically only offer a maximum of 50% of the new revenue generated over a five-year period, meaning we are retaining the other 50% of the new revenue over that period, followed by 100% for all future years. We’d rather have 50% of something than 100% of nothing. 
• Our incentive awards are performance-based. We only reward companies that do what they say they will do. Companies that do not achieve their job or investment targets do not get paid, and historically, Durham County has both terminated agreements of companies that do not perform as well as “clawed-back” funds from companies that stopped performing.
• Our “Business Recruitment and Expansion Policy” is a public document and approval of any award occurs at a public hearing.  The policy was reviewed and approved by the Board at multiple public meetings, first in 2020 and subsequently in 2025. It lays out in detail the types of projects we are looking for, how we consider them, the legal parameters, and how we track the performance of the company throughout the life of any incentive award.
• Our incentive awards are an opportunity to increase social mobility in Durham by bringing well-paying entry-level jobs and/or jobs that do not require a four-year degree. For example, 200 of the new jobs at Novartis are open to those with only a high school diploma or a two-year degree, paying an average wage of $104,000. These positions also offer robust benefits, including paid parental leave, adoption expense reimbursements, and up to $1,000 for childcare or elder care expenses, among other benefits. Job opportunities like these can be game changers for our residents, and we have programs in place, such as BULLS Life Sciences Academy, to help make sure our residents can compete for these positions.
• Our incentive awards enhance our pipeline of talent and further an ecosystem of education stretching from Durham Public Schools to Durham Technical Community College to North Carolina Central University or Duke University. Aspida, for example, committed to offering an annual internship to a student from Durham Tech or Central, as well as hosting an annual financial literacy event for Durham students. Novartis is donating nearly $250,000 to the Durham Public Schools Foundation as well as approximately $100,000 in equipment to Durham Tech. These are a few examples of how our most recently recruited companies are giving back.

While these two announcements bring good news to Durham, I would be remiss if I didn’t acknowledge that 2025 has been a tough year for many of our residents. This is why it is more important than ever to continue this work and to do all we can to make Durham’s economy a thriving one for all.

Until next time,

Claudia Hager | Durham County Manager