Wednesday, February 21, 2024

Norfolk Southern to pay state, Norfolk over move to Atlanta

Norfolk Southern Corporation is reporting record second quarter earnings (Southside Daily photo/Courtesy James St. John. Wikimedia Commons)
(Southside Daily photo/Courtesy James St. John. Wikimedia Commons)

NORFOLK — Norfolk Southern says it plans to pay about $2.4 million to Virginia and the city of Norfolk for breaking its promise to stay headquartered in the city until 2026.

The company ended talks to repay Virginia incentives Wednesday, just over a week after the company announced it was moving its headquarters to Atlanta.

Virginia offered the company $1.9 million in 2016 when the company promised to keep its Norfolk headquarters for at least 10 more years. The city offered the company discounted parking, which was expected to save the company more than $2 million through 2026.

Company spokesman Tom Werner says the entire state grant will be returned by Dec. 31 and the city will be paid about $580,000 to account for parking costs saved so far.

RELATED STORY: Norfolk Southern has finalized plans to move to Atlanta

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