NC Commerce Department news release:
Allstate Insurance Company will add 2,250 jobs over three years in North Carolina as it expands its operations in Mecklenburg County, Governor Roy Cooper announced on Wednesday, Aug. 9.
Allstate already employs more than 1,400 people in the area, including more than 1,200 at Innovation Park in University City. As part of the expansion, the company plans to invest more than $22 million in the Charlotte area.
“Charlotte’s role as a leader in the financial services sector makes our state an excellent fit for Allstate,” said Governor Cooper. “North Carolina has so much to offer growing companies, including our celebrated universities and community colleges, highly skilled workforce, competitive business climate and outstanding quality of life.”
“Allstate has prospered in Charlotte and they’ve made the right decision to continue their expansion here,” said state Commerce Secretary Anthony M. Copeland. “We congratulate the company on this exciting time of growth and diversification.” The Department of Commerce and the Economic Development Partnership of N.C. (EDPNC) led the state’s support for the company’s expansion.
Allstate’s expansion in Mecklenburg County will be facilitated in part by a Job Development Investment Grant (JDIG) approved by the state’s Economic Investment Committee earlier today.
Types of jobs and $3.9 billion economic impact
Allstate will add a variety of job functions through the Charlotte expansion, delivering a yearly payroll impact of more than $105.3 million, once all positions are filled. Over the course of the 12-year term of this grant, the project will grow the state’s economy by an estimated $3.9 billion.
Using a formula that takes into account the new tax revenues generated by the new jobs, the JDIG agreement authorizes the potential reimbursement to the company of up to $17.8 million, spread over 12 years. State payments only occur following performance verification by N.C. Commerce and N.C. 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 Allstate chose to locate in Mecklenburg County, the company’s JDIG agreement also calls for moving as much as $5.95 million 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 Mecklenburg, the new tax revenue generated through JDIG grants helps communities across the state.
Partners with N.C. Commerce and the EDPNC on this project include the North Carolina General Assembly, the North Carolina Community College System, Charlotte Chamber, Mecklenburg County, City of Charlotte, UNC-Charlotte, Charlotte Works, Central Piedmont Community College, Northeastern University Charlotte, Bank of America, Charlotte City Center Partners, and the Charlotte Regional Partnership.
News reports about the Allstate expansion
- Charlotte Observer: Allstate to create 2,250 Charlotte jobs in expansion
- Charlotte Business Journal: Allstate to bring 2,250 jobs to Charlotte over 3 years
- WSOX TV: Allstate expands to Charlotte