JDIG grants worth $7.1 million terminated for failure to reach hiring targets

Two Job Development Investment Grant (JDIG) grants worth $7.1 million combined were rescinded Tuesday by the North Carolina Economic Investment Committee (NCEIC) after two companies failed to create the required number of jobs.

One of those companies is Science 37, a clinical research company that relocated its headquarters from California to Morrisville after reaching the agreement in December 2021 to create 250 jobs over five years in Wake County and invest nearly $1.5 million to establish operations.

The average wage for the jobs was supposed to be $114,400.

Company officials told the North Carolina Department of Commerce (NCEIC oversees the grants) that it had not met the hiring quota and had filled only 182 jobs.

The company, which allows people to participate in clinical trials from home, blamed global economic conditions, inflation, and supply chain issues as some of the reasons why the hiring target couldn’t be met.

Science 37 was also sold to eMed LLC in 2024 for $38 million.

The company was expected to receive up to $3.3 million in reimbursements over 12 years, which was estimated to grow the state’s economy by $783 million.

Commerce officials also announced on Tuesday that the JDIG grant of up to $3.8 million for cabinet maker MasterBrand was also cancelled.

The agreement, announced in November 2021, would expand the company’s operations in Lenoir County by over 450 jobs over five years. The company was expected to invest more than $13.5 million to expand production capacity at its manufacturing center in Kinston.

The average wage for all new jobs was expected to exceed the Lenoir County average of $39,839, and the total payroll impact for the region was expected to reach more than $18.5 million.

The state estimated the project would grow the economy by $657.8 million.

Company officials also notified the state late last year that layoffs were planned for sites in Liberty and Statesville.

It should be noted that North Carolina did not award any taxpayer money through the grants as hiring targets were not met.

JDIG agreements do not have a successful track record in the state.

Wolfspeed, Apple, and VinFast have experienced delays and layoffs, while contracts were also terminated with companies like BioAgilytix Labs, LLC, and others.

The post JDIG grants worth $7.1 million terminated for failure to reach hiring targets first appeared on Carolina Journal.

 

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