Azad Khan was interviewed on Creative EDC's blog about incentive agreement compliance amid the coronavirus pandemic.
"It’s not unreasonable for local economic developers to ask their incentivized existing industries for documentation of performance criteria related to their incentives," Azad said. "Local economic developers could request copies of current and pre-COVID 19 employment rosters, fixed asset listings and a written statement from the impacted company detailing how their operations have been derailed by COVID-19. Comparing the company’s job creation/maintenance and investment levels against the timing of COVID-19 related disruptions and taking into account the company’s written statement is probably the only way to determine if their non-compliance is COVID-19 related."
"Coming up with a win-win will be a little more challenging, as state and local governments may be limited in their flexibility with incentives due to statutorily established guidelines," he continued. "To the extent possible, I would recommend that state and local governments do what they can to provide companies with more time to achieve their commitments. In my opinion, if the company still meets their overall commitments and receives agreed upon incentive benefits, then it’s a win-win even if commitments were not achieved within originally designated time-periods."
You can read the full interview here. Creative EDC is an economic development consulting firm based in North Carolina.