Rochester, N.Y. – Less than two weeks after saying it was looking at locations around the country, Xerox has decided to open its call center at its Webster campus. The call center would be located in Building 200 and employ 500 people within two years.
Xerox is spending $4.3 million on the 23,000 square foot renovation.
The company is getting government incentives worth more than the cost of the project, according to a press release sent by Governor Andrew Cuomo’s office. The statement said Xerox is getting a $1 million grant and $5 million in job creation tax credits.
Austin Shafran, a spokesman with Empire State confirmed the incentives, saying the job creation credits would be paid out over 10 years. Xerox must make the investment in the physical plant and retain the jobs over that period of time to realize the full benefit.
Shafran disputed the notion Xerox is getting a “free call center.”
“It’s not apples to apples. It’s not a matter of recouping investment. They are renovating a facility – that’s what the money is going for,” Shafran said. “The purpose…is to make sure taxpayers are getting a return on their investment of jobs being created and the company agreeing to support further growth.”
David Cay Johnston, a tax expert and columnist for Reuters characterized the Xerox incentives as generous.
“All across America corporations have figured out that instead of spending investors’ money they can get the taxpayers to pay the cost of setting up business and it’s one of the reasons we’re in the terrible economic troubles we’re in today,” Johnston said. “For the 350, 400, 500 families who don’t have a job and now have one this is terrific news, but for the economy overall this is awful.”
“It’s not about giving anyone a free call center. It’s all about leveling the playing field for companies that want to stay here because they have a larger investment,” said Monroe County Executive Maggie Brooks. The county awarded $271,000 in sales tax breaks to the county.
“I can assure you that other governors in other states would be right there offering to build this,” said Lt. Governor Bob Duffy.
Xerox said the jobs would be added over two years. The call center will open in October.
