Gov. McDonnell delivers on jobs – Northrop Grumman to relocate to Virginia

By Brian S

060618-N-8492C-212According to WaPo, the Governor will announce tomorrow that Northrup Grumman will be relocating to Virginia.  This is a big win for Commonwealth, and an even bigger win for Governor McDonnell.  The deal will likely create hundreds of new jobs and be worth millions in new revenue to the Commonwealth.  As Joe Biden would say, “this is a big f’ing deal.”

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One of the common themes coming from Democrats over the last few months was that the Governor’s many “missteps” – particularly the Confederate History month controversy, Ken Cuccinelli’s letter on sexual orientation, etc. would likely cost us the Northrup Grumman deal.  I never thought those arguments held much water, but that didn’t stop folks from making them.  Equality Virginia actually sent Northrop a letter advocating on behalf of Maryland specifically because of the LGBT issue.  Blue Virginia
basically said the deal was looking “more and more likely” that Virginia wouldn’t get the jobs because of the sexual orientation issue.  As usual, they were wrong.

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My friend J.R. Hoeft over at Bearing Drift called the Northrop Grumman deal the McDonnell Administration’s “first big test.”  I agree with him, and I’m happy to say that it looks to me as if the Governor has passed with flying colors.

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Thank you, Governor McDonnell!

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Comments

  • DanielK says:

    This is good! If you can get away from the partisan aspect of this in regards to everything that has gone on with the administration this is very good for Virginia and everyone who lives here. I’m not unemployed but I’m happy jobs will be created for those trying to make ends meet. I’m personally not surprised that Virginia was selected over Maryland even in regards to the GLBT-Cooch saga and I doubt that that really had much impact in their decision. And unless I’m missing something Northrup Grumman is not a state agency so Cuccinelli’s position and the state’s laws on discrimination in statewide agencies do not really apply to them. They can create whatever human resource practices they desire.

    It’s clear that Northrup’s decision to come to Virginia wasn’t based on simply one issue which if it had been would of been stupid. Every state has their problems but Virginia is clearly business friendly and the GBLT issue wasn’t enough to trump everything else positive. Another question now is how will this impact the O’Malley-Erlich rematch? Definitely not good for Martin but that’s a whole other story.

  • Stewart says:

    I’m not sure how much the Governor had to do with the deal (Northrop would’ve likely come anyway) but I’m sure he’ll take the credit.

  • Brian S says:

    I think the Governor had quite a bit to do with it. He was involved in the negotiations, as was the Governor of Maryland. The packages and legislative efforts designed to get them here were pushed by both Governors and O’Malley is already getting slammed for losing out on it.
    .
    And apparently the Democrats – at least the bloggers – seemed to think that what McDonnell did or didn’t do was significant enough to keep the deal from coming here. Thus, I think it’s reasonable to give him credit when the deal does come here.

  • Stewart says:

    Says the Sun: “I always thought Northern Virginia would win – not only are they a lower cost location in a state that is generally more friendly to business – the congressional delegation is also much more pro-military,” Richard P. Clinch, director of economic research at the University of Baltimore’s Jacob France Institute, said. “I do not believe Maryland or D.C. was seriously in the running.”

  • Eric the 1/2 troll says:

    This is good news for Virginia no matter which way you slice it and definitely looks good for the Gov. He should get a pat on the back for sure.

  • James Martin says:

    Mark Warner gets Northrop to move to Virginia and laughing stock McDonnell takes credit for it. Funny.

    Northrop even called Warner first to tell him, rather than McDonnell. What does that tell you? Mark Warner still has the responsibility of looking out for Virginia now that McDonnell has abdicated that responsibility while making Virginia and himself embarrassed perpetually.

  • Brian S says:

    James, I have not seen anywhere that Warner was informed first. Where did you get that information? Even if it is true, what it tells me is that Warner is a US Senator, and the federal government is the #1 purchaser of Northrop’s products. If he was called first, that’s just good lobbying.
    .
    Why you seem to think Warner mattered more to this than McDonnell, I don’t know.
    .
    If Northrop was basing their decision on the relative power of the Congressional delegations, Maryland wins that one – Barbara Mikulski is more senior than Webb and Warner combined. And while Cantor may be Minority Whip, Steny Hoyer is Majority Leader. Maryland would have made better sense if they only cared about politics.
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    In any event, I think acting like McDonnell had nothing to do with this decision is the ultimate in sour grapes.

  • James Martin says:

    Between Jim Webb who is on Armed Services, all 3 Subcommittees, and Chairs the subcommittee on Personal, Mark Warner who is the BFF of every defense contractor in existence, and Rob Whittman who will likely become Chairman of the House Armed Services Seapower subcommittee if Republicans take over the House… I think Virginia has Maryland cornered.

    I think Jeff Shapiro said it best:

    Not 100 days into his term, the script-reliant nice-guy governor seems reduced to caricature: A literal and figurative straight man jittery around gays. A Northern-born come-here who, eager to fit in with a long-gone culture, glories in Confederate gray. An Old South oligarch who sniffs that nonviolent felons who want back their voting rights must pass a literacy test.

  • Rtwng Extrmst says:

    Wait a sec… I thought the conventional wisdom was that Northrop wouldn’t come close to VA because we are ruled by a bunch of “racists”, and that Gov. McDonnell’s promotion of that “racist” Confederate History Month was going to drive them away. I guess this seals it, Northrop Grumman must be a racist company!

  • Brian S says:

    Steny Hoyer is House Majority Leader. Mikulski is on Appropriations, where she’s a subcommittee Chair. Warner isn’t on Armed Services and both he and Webb are first termers. Whitman, while I agree is a potential subcommittee chair, is still a two-term member of the minority in a body where seniority is everything. And Elijah Cummings is subcommittee chair for Maritime Transportation in the House.
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    Maryland would win when it comes to Congressional influence.
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    I think Jeff Shapiro is engaging in wishful thinking. Again, this all smacks of sour grapes.

  • Lauren Yoder says:

    I think what James is trying to say is that two years of hope and change is all the American people can stand. Northrop Grumman can see that the Republicans are going to take back congress this fall.

  • BlackOut says:

    This is very good news!

  • Brian S says:

    I’m glad to see that DanielK, Eric and BO – all liberal posters – all could recognize that this is good news. It’s unfortunate that some Democrats would rather try and spin this negatively or dismiss it as “obvious” than recognize it’s an important gain for the Commonwealth.

  • James Martin says:

    It’s great news! And we should thank Mark Warner for it :)

  • VA Blogger says:

    Funny, liberals seemed all ready to blame McDonnell if NG went to Maryland.

  • BlackOut says:

    Brian, I think you’ll find that all independents find this good news. Just like me.

  • Loudoun Lady says:

    The Forehead (Jim Webb) and the Poser (Mark Warner) can try to take credit all they want, Gov McDonnell gets the credit.
    *
    The same weenies that are turning this into a pissing match are probably standing there like Horshack every time Obama Claims credit for say, turning the economy around… oh, wait….shit

  • Stewart says:

    You win, Loudoun Lady. When the unemployment rate drops several points by 2012, I hope you are right here giving Obama the same credit McDonnell is getting.

  • 200 Grande says:

    :) Whether you are a Democrat or Republican, THIS IS GREAT NEWS!!:)

    :) Now, all we need is another war, and we can get this economy going, again! :)

  • Loudoun Lady says:

    Stewy, I’m not holding my breath.

  • Ron says:

    What? And we’re not thanking Martin O’Malley for helping to deliver (yet more) jobs to Virginia? While we are at it, we should probably thank Isiah Leggett and Chris Van Hollen.

    /snark

  • BlackOut says:

    This also proves McDonnell’s slap down of Choochies attack on employment policies was well worth the effort. His clarifying statement erased the issue MD tried to raise. I doubt it was a show stopper with NG, but the statement effectively removed the issue from the bargaining table. Probably saved us from having to offer more concessions.

  • BlackOut says:

    BTW, what’s with the B2 leading the battle group in the picture??!??

  • Brian S says:

    No idea, BO. I just thought it was a cool way of showing off both Northrop’s B-2, as well as the carriers they build. The F/A-18s are Boeings, though.

  • Brian S says:

    James, you seem to be clamoring to give Mark Warner credit, but Mark Warner himself hasn’t been demanding credit. Other than a Tweet on his Twitter account, he’s not acknowledged the deal at all.
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    Not exactly the move of a politician who had something to do with the deal, especially someone on the other side of the aisle. If Warner actually had anything to do with it, he’d be out there trumpeting his role. He’s not.

  • Steve Vaughan says:

    Brian-You’re right that this was a test for McDonnell. He passed it. Should help show that he’s back on track after getting diverted by the gay rights and Confederate History Month mistakes.
    That said, this is 300 jobs in the part of the state that least needs them. We’re still down thousands of jobs statewide as the result of the recent budget cuts.
    So, it’s a win, I’d rather have Northrop than not, but let’s keep it in perspective.
    Must have been very tricky to negotiate this while simulutaneously trying to stop Northrop from stealing the state blind on the IT contract.

  • Brian S says:

    Steve, a win is a win. Considering that some of the Democrats aren’t even willing to concede that McDonnell had anything to do with this, someone must think it’s a pretty big deal.
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    Personally, I like seeing new companies move to the Commonwealth, even if they’re only bring the 300 top jobs with them. That’s still plenty of revenue potential.
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    What I would like to see is some of these Democrats (as some of our liberal and independent commenters already have) be willing to drop the partisanship for about ten seconds and recognize that this is a good thing, and McDonnell deserves credit for it.

  • James Martin says:

    Why does McDonnell deserve credit? We almost lost them
    twice in as many months because of his actions. You only give him credit because he’s a Republican, that’s partisan. Mark Warner is the hero here.

  • edmundburkenator says:

    Many, many, many things went into the decision — most of which will come out later.
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    Brian, you are usually not a knee-jerk cheerleader, so I’m troubled you sound like one right now. It comes off as insecurity about the governor.
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    In the end, it was probably about who could put up the largest sign within view of the Capitol. Has anyone seen their new sign on the building in Rosslyn? At night, I can read by the light that gives off on the Mall.

  • Brian S says:

    James, you still haven’t given any concrete reason why Warner deserves the credit. Simply repeating yourself isn’t an argument.
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    Ed, I’m not a knee-jerk cheerleader at all. I’m not insecure about the Governor. I’m actually simply excited that this worked out the way it did. When Northrop announced they were looking to move, I recall being in the car with my wife, and I turned to her and said “McDonnell needs to get them to Fairfax.” So this issue has been a big deal to me since it was first announced.
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    And I’m sure plenty of folks said the same thing in Maryland and in DC. The fact that they chose to come here is, in my opinion, based on a number of factors, not the least of which is they know they won’t have to worry about massive tax increases in Virginia, and a lot of that is because Bob McDonnell is governor. Had Deeds won, I think it would have been a toss-up. Maryland was trying very hard to get them here, offering as many incentives as they could come up with, and they didn’t pull it off. McDonnell deserves the credit for getting this done. In fact, Maryland offered almost twice as much money to Northrop Grumman ($25 million to $14 million) than we did and that still wasn’t good enough.

  • BlackOut says:

    This deal represents more than 300 jobs. Think of them as 300 magnets for other jobs. Other companies that work with NG will follow.
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    Brian, don’t take this wrong but I think Virginia won this deal, and McDonnell was an effective shepherd to get it done. He deserves credit. However, it’s a stretch to say McDonnell was the reason it came here. I imagine it could of happened with a Dem or a Rep in the Governor’s seat. It’s entirely possible Deeds would of screwed up the advantage and lost the deal. That’s a different issue.

  • Eric the 1/2 troll says:

    Look if it were a Dem as gov we would all be high fiving and saying he/she won the deal (even if he/she were one of many working on it). Let the R’s bask a little and call a job well done what it is. I really don’t care who gets the credit – it s a good thing for Virginia – end of story.

  • Barbara Munsey says:

    Good for you Eric!

    Unusual, but Amen!

  • The Virginian says:

    Perhaps this was just a simple mistake by James Martin, he had the wrong Warner. NG informed “John” Warner, the last real Senator from Virginia with any clout! And the one Virginia Senator that the Defense contractor community actually respects.

    Regardl;ess, the most important thing that I hope all can agree on is that they are coming to Virginia and will attract more just like them.

  • DanielK says:

    The General Assembly passed legislation to help bring Northrup here. McDonnell was part of it and would have been getting slammed, along with Cuccinelli if they went to Maryland. Both Governor’s appeared to be involved with getting Northrup to choose their respective states. McDonnell did go and he’s the leader of this state so he should get some credit.

    Also, with the Warner thing….If McDonnell was involved then he probably already knew about it prior to any calls they made to Virginia’s Senators or anyone else. I personally don’t think that any of McDonnell’s actions or even Cuccinelli’s opinion had any impact on their decision to come here. Northrup wouldn’t have been dealt with any discrimination or equal opportunity issues since his opinion was dealing with only state agencies which NG is not. All this boycott, protest and outrage stuff like what is going on in Arizona and the first hundred days here really doesn’t impact very much because the corporations in the end deal with what is best for them.

  • You can argue that Warner or McDonnell deserves the credit, but the fact is that VA is simply a far better place to do business than CA, MD or DC. And the reason for that is the favorable business climate created by Republican leadership in the General Assembly, both current and past.

  • Elder Berry says:

    Now hold on. One question, sensing a little bit of hypocrisy here, is, how much it is costing VA taxpayers to get those 300 jobs, and how is that different from welfare?

    My understanding was that Republicans don’t like government spending. I guess if it’s to a big corporation for production of war toys it’s OK, although common sense would tell you to skip the middleman.

  • Brian S says:

    Elder, it wasn’t welfare unless you consider Obama’s stimulus to be welfare. It was an incentive. They got $14 million from Virginia. The estimate value of their tax revenue is $30 million.
    .
    As the old saying goes, you have to spend money to make money. This was a good deal.

  • RichmondDem says:

    Great news for the commonwealth, regardless of who gets the political credit.

  • Elder Berry says:

    So from that, Brian, VA spent $40,000 for each of the jobs.

    That $30 Million you cite in tax revenue, is that the revenue that gets taxed (at what rate) or is that the tax to be paid to VA.

    If the revenue is $30 million, then the tax will be much less. The average coporate tax rate in VA is 6%. That would be a total annual tax to VA of about $1.8 mil.

    If that is the correct read on it, it would take a decade to get our money back.

  • Brian S says:

    Elder, I know that the Governor has said $30 million over ten years. I think that’s fine, considering that this move is a long term decision.

  • Cato the Elder says:

    “So from that, Brian, VA spent $40,000 for each of the jobs”
    *
    Right, so using the same yardstick as the abject failure success of the porkulus stimulus package we created jobs at a rate of about 420K less than your BFF 0bama did (per job). http://www.usatoday.com/news/washington/2010-02-24-stim-jobs_N.htm

  • Robert says:

    While we’re celebrating the arrival of NG, here’s bit of perspective and comparison. Although Raytheon was already located at several northern VA locations, it will eventually transfer more employees to Ashburn from other states than NG will from CA and they asked for nothing. The NG employees are mostly corporate mgmt while the engineering and technical jobs will remain in CA. Raytheon actually gave Loudoun Cty a transportation grant worth millions rather than the other way around. NG was well compensated for the decision to relocate to VA – $12-14M in grants and cash incentives. Remember too that NG came into existance only in the late 90s when Grumman merged with Northrop after serious downsizing. The NG perks are said to include a discounted rate for space at Dulles for their corporate jet, adding to the country-club memberships?? and moving costs they asked for. Talk about corporate incentives, or is more like corporate welfare? lol

  • Gretchen Laskas says:

    I’m only now catching up, but this is, indeed a political win for McDonnell (as well as Mark Warner), but more importantly, it’s good for Virginia.

  • Real Conservative says:

    Go Bob Go!!! This is awesome

  • The Virginian says:

    Finally, a positve thread about a Republican! I almost didn’t believe my eyes when I read this! Virginia is business friendly and if you balance tax breaks given to businesses vs the jobs they create, new residents paying taxes and growing the economy, it is a no brainer win-win for all.

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