Tuesday, March 9, 2010

Northrop Grumman Tax Incentive Deal Unraveling?

The Washington Post reports that support for legislation to lure Northrop Grumman to the District is declining among members of the DC Council. The Global Security and Aerospace Industry Tax Abatement Act, which was introduced in the Council last month, would give Grumman a $25 million incentive package, if they move their headquarters to the District and hire at least 250 DC residents. The sites under consideration by the company are the Engine 13 sites at 4th & E Streets and 6th & E Streets that E Street Development was awarded last April. Having a Fortune 100 company like Northrop Grumman locate their headquarters at the project might have brought other contractors to the area and help fill in vacant office and retail space nearby. A decision on where in the metro area the company plans to relocate will be made by the end of March or April.

Update: The Washington Business Journal has an article describing opposition to the incentive package by small businesses in the city.

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