Growing gains: amid disputes over state incentives, North Carolina racked up a banner year in attracting investment.

• Author: Martin, Cathy
• Position: Top projects

North Carolina was chock-full of new projects and corporate expansions announced over the last year, even as lawmakers wrangled over the role of incentives to attract businesses. Companies in many industries, including energy storage, finance, information technology and pharmaceuticals, disclosed plans to collectively invest billions in the state, helping North Carolina earn the No. 1 spot on Site Selection magazine's ranking of Top Competitive States for 2014. The ranking is largely based on new businesses and expansions with a minimum investment of $1 million, creation of 20 or more jobs or new construction of 20,000 or more square feet.

The announcements came amid a shakeup in North Carolina's recruitment strategy. The Economic Development Partnership of North Carolina, a public-private partnership led by former Missouri industry recruiter Chris Chung, has gained influence as the state cut funding for regional booster groups. The growth reflects the state's skilled workforce, training programs, low unionization rate and a cut in the corporate tax rate to 5% from 6% last year, Chung says.

The largest incentive program--the Job Development Investment Grant--issued 16 awards totaling more than $127 million in 2014. Because of tepid legislative support, the fund was depleted with the last grant issued in November. Since then, the state has relied on its secondary One North Carolina Fund program to provide incentives; those grants are contingent on matching contributions from local governments. Gov. Pat McCrory proposed restarting the JDIG program, to be renamed N.C. Competes, with $45 million over the next two years, plus $20 million for an infrastructure development fund designed to attract large manufacturing projects. State legislators were divided on how to restore funding as of mid-June. Another $50 million for a manufacturing site was pledged by the Golden Leaf Foundation, a Rocky Mount-based nonprofit created with proceeds from the settlement of tobacco-company litigation.

Sealed Air Corp., which is moving its headquarters to Charlotte from New Jersey, received the largest incentive package awarded over the last 12 months. The maker of Bubble Wrap plans to move more than 1,200 jobs here by 2017 in return for $39 million in tax breaks over the next 12 years. Many jobs will come from Sealed Air's sites near Greenville, S.C., a reflection of the competition between North Carolina and South Carolina. Alevo Energy Inc. and Vertex Rail Technologies LLC disclosed large investments without seeking state incentives. Alevo, an energy-storage company that will occupy the former Philip Morris plant in Concord, says it will invest $1 billion.

The state also lost out on some big projects. Automaker Mercedes-Benz USA chose Atlanta for its new corporate headquarters, which are now in New Jersey. Volvo Cars, owned by China's Zhejiang Geely Holding Group, favored a site near Charleston, S.C., that is expected to employ up to 4,000 people. Both Georgia and South Carolina offered attractive incentive packages, similar to ones that are prompting regional offices of Chesterbrook, Pa.-based AmerisourceBergen Drug Corp. and San Diego-based LPL Financial LLC to move more than 2,200 jobs from Charlotte to adjacent South Carolina suburbs over the next two years. Escondido, Calif.-based Stone Brewing Co. chose Richmond, Va., for its new East Coast brewery, a $74 million investment that will add 288 jobs. North Carolina also lost a corporate headquarters when a Brazilian investor group bought Chiquita Brands International Inc. and said it would close its 300-person Charlotte office by year-end. Chiquita had moved from Cincinnati in 2012, lured by a $22 million incentive package.

Here's a look at North Carolina's major economic-development projects--those pledging a minimum investment of $50...