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Google Sought To Hide Political Dealmaking Google put pressure on legislators to stay quiet Internet giant irritated with `petty dickering' JONATHAN B. COX (Raleigh) News & Observer     * Google's 4th-quarter profits nearly triples Google tried to silence lawmakers and pushed -- at times with a heavy hand -- to influence legislation designed to bring the company to Caldwell County. The company demanded that legislators never speak its name, and had them scolded when word of its interest in North Carolina leaked out, according to records made public this week. As work proceeded on the bill to remove much of its tax burden, Google threatened to end negotiations because legislative staff didn't write exactly what it wanted. State Commerce Secretary Jim Fain was asked to "prevail upon" the bill writer. Indeed, the first set of state documents released from the 13-month negotiations reveal a company obsessed with secrecy and not above bullying, tactics that helped get it tax breaks that could top $100 million over three decades. "I sort of had to work in the dark," said Sen. Jim Jacumin, a Republican who represents Caldwell County. "That bothered me. They need to respect the laws of the land, even if they're business." Google runs the world's largest Internet search engine. This month, Google announced that it would build a new computer center in Lenoir, bringing as much as $600 million in investment and as many as 200 jobs. It considered locations in at least seven other states, along with additional sites in North Carolina, the documents show. The decision was sweetened by the state and local tax breaks. One of the biggest enticements came from the General Assembly. Lawmakers last year approved a measure eliminating sales tax on electricity and equipment used by Internet computer centers. That provision has the potential to shave Google's tax bill by $89 million over 30 years. But Google was not happy with the legislative process. "This legislation has remained cursed with unfortunate and petty dickering from the legislative drafting side -- mainly refusing to reinsert better word choice," Rhett Weiss, a Google executive, wrote in a June 13 e-mail message to Fain. "Without the legislation being passed with its correct substance, our project will not proceed in North Carolina," he continued. Weiss complained specifically about Dan Ettefagh, a legislative aide writing the bill, and asked Fain to "prevail upon" him, directly or through his managers, "to be reasonable in his approach." Weiss also was unhappy that the legislature wanted an estimate of the tax revenue it would forego because of the legislation. "I always believed North Carolina to be a good state in which to do business," Weiss wrote. "But the legislation's long saga increasingly concerns us. Will creating and operating a North Carolina facility continue to be so hassle-prone?" Efforts to reach Google officials for comment Wednesday were unsuccessful. `Perfectly appropriate' Most issues that concerned Weiss were minor, said Don Hobart, Commerce's general counsel and liaison to the General Assembly. Ettefagh did his job appropriately, he said, and Fain did not talk with him.Gerry Cohen, Ettefagh's boss, said his staff works for the lawmakers and downplayed Google's efforts. He said they hear from lobbyists whenever they're drafting a bill. "It's perfectly appropriate for them to suggest changes," Cohen said. "If Google did not suggest language, I don't know how we would do our job." Critics have complained about the benefits afforded large companies seeking to expand in the state. They worry that leaders, in an effort to lure jobs and investment, offer too many concessions that favor new industry over existing business. The Google files shed light on the complexities of luring a new employer. Leaders were enamored with Google because of its international cachet and potential to revive a struggling region. Officials have worked hard to draw in new employers. "We are being entrusted with a major opportunity," John Howard, executive director of the Caldwell County Economic Development Commission, wrote in an e-mail to local officials on May 31. "Clearly, we must deliver all that they are now expecting, and as quickly as we can." The courtship was rocky at times. The documents suggest that on several occasions negotiations appeared close to failing. Issues as varied as land prices and flood plains threatened to undermine the deal. Keeping mum And again and again, the need for privacy came up. Executives didn't want anybody even to mention the company's name for fear that competitors could learn of its plans. Most involved with the negotiations were required to sign nondisclosure agreements. Commerce Department officials refused to sign the agreements but officials in Caldwell County did, as did some legislators. That posed challenges for elected officials, charged with conducting the public's business in the open. As the tax measure wended its way through the legislature, some lawmakers began linking it to Google. That prompted a strong rebuke from Weiss. "We respect the legislature needs to conduct its business, to deliberate on bills," Weiss wrote in a June 7 e-mail to Hobart. But legislators must understand that the project likely will be canceled if anyone "mentions the company's interest in the bill, North Carolina, or the project itself." Negotiators went into full panic mode after The Charlotte Observer on July 21 outed the negotiations. Google representatives blamed the legislature for leaking the information, and there was much consternation at headquarters. Bobby White, the Caldwell County manager at the time, on July 24 sent an e-mail message to the county's delegation, asking them to keep mum and warning of the repercussions of more disclosure. "We all hope and pray the project will be able to continue," he wrote.    Êղؠ  ·ÖÏí   ¶¥(0)