WS Chronicle

By Algenon Cash

This week the Winston-Salem City Council unanimously approved $208,050 in economic incentives to assist HanesBrands with relocating its headquarters to a smaller space in the Park Building downtown. The move represents a consolidation of operations into 121,000 square feet, a reduction in the company’s footprint. While city leaders framed the incentives as necessary to retain 500 high-paying jobs downtown, the decision raises serious questions about the city’s economic development priorities.

For years city officials have justified economic incentives as a tool to promote growth, attract new businesses, and create jobs. These taxpayer-funded resources are intended to catalyze expansion and innovation, ensuring that Winston-Salem remains competitive in a rapidly changing economy. But this latest deal suggests a troubling pattern: large corporations receive substantial support even when their actions reflect contraction, not growth. Meanwhile, small businesses – the backbone of our economy – continue to struggle without the same level of public investment or support.

The HanesBrands decision is emblematic of a broader issue in Winston-Salem’s economic development strategy. For a city striving to establish itself as a hub for innovation and opportunity, we seem stuck in an outdated mindset that doesn’t attract new industries. This approach has contributed to a history of questionable decisions that have hindered, rather than helped, our community’s progress.

Take, for example, the ill-fated taxpayer investment in the Dell facility. In 2004 the state and local governments committed over $300 million in incentives to attract Dell, promising thousands of jobs and economic revitalization. By 2010, Dell had closed its doors, leaving taxpayers with little to show for the substantial investment.

Similarly, consider the ongoing challenges with the Innovation Quarter. While it has undeniably brought some success, including attracting biotech companies and revitalizing parts of downtown, the development has often failed to live up to its promise of inclusivity and widespread economic impact. Many residents feel disconnected from the high-tech jobs and opportunities it was supposed to generate. Critics argue that the city focused too heavily on catering to outside investors and large institutions while neglecting to invest in infrastructure or programs that could uplift local entrepreneurs and communities.

Then there’s the redevelopment of the Whitaker Park area, the former RJ Reynolds industrial site. Years after its closure, the city has poured significant resources into turning it into a mixed-use development. While progress has been made, the effort has been slow, with much of the space still underutilized.

The HanesBrands deal, while smaller in scale, follows the same pattern: prioritizing defense over bold, forward-thinking approaches to growth. The $208,050 incentive package is tied to HanesBrands’ commitment to retain 500 jobs, maintain a $40 million payroll, invest $6 million in renovations, and stay downtown for at least seven years. But it’s worth asking: should taxpayers really be subsidizing a corporation that is downsizing its physical footprint? Is this the best use of limited public resources?

The HanesBrands relocation also raises another significant concern: the increasing proliferation of nonprofits in Winston-Salem’s commercial real estate landscape. HanesBrands’ former 500,000-square-foot campus was purchased by Carolina University, and Carolina University’s former campus was in turn acquired by a nonprofit education institution. While these transactions have kept the properties occupied, they have effectively removed valuable real estate from the city’s tax rolls. 

Nonprofit organizations, while contributing to the community in other ways, do not pay property taxes, leaving a gap in municipal revenue that could have funded schools, infrastructure, and other public services. This growing trend of nonprofits acquiring prime real estate is further undermining the city’s ability to fund essential services and invest in future growth.

Small business owners and local entrepreneurs have long been told that incentives are reserved for projects that bring new jobs and expand the economy. Yet many report struggling to secure the same kind of support that large corporations receive. These businesses are the lifeblood of our city, driving innovation, creating jobs, and fostering a sense of community. But without equitable access to public resources, their potential remains untapped.

What Winston-Salem needs is a fundamental shift in how we approach economic development. Rather than doubling down on outdated strategies, we should focus on building a resilient and inclusive economy that benefits all residents. That means prioritizing small businesses, investing in workforce development programs, and ensuring that every neighborhood – not just downtown – has access to opportunity.

Winston-Salem has the potential to become a model for smart, inclusive growth. We have a rich history of innovation, a strong sense of community, and the talent needed to compete on the national stage. But to achieve that vision, we must move beyond a “business as usual” approach to economic development. That starts with asking tough questions about deals like the HanesBrands incentive package and holding our leaders accountable for making decisions that reflect the best interests of all residents – not just the city’s most powerful players.

Incentives, if used at all, should be a tool for growth, not a safety net for corporations scaling back their operations. If Winston-Salem truly wants to build a stronger, more vibrant economy, it’s time to rethink our priorities and start investing in the people and businesses that will drive our future.