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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John Mangalonzo ( is the managing editor of Local Voice Media’s Virginia papers – WYDaily (Williamsburg), Southside Daily (Virginia Beach) and HNNDaily (Hampton-Newport News). Before coming to Local Voice, John was the senior content editor of The Bellingham Herald, a McClatchy newspaper in Washington state. Previously, he served as city editor/content strategist for USA Today Network newsrooms in St. George and Cedar City, Utah. John started his professional journalism career shortly after graduating from Lyceum of The Philippines University in 1990. As a rookie reporter for a national newspaper in Manila that year, John was assigned to cover four of the most dangerous cities in Metro Manila. Later that year, John was transferred to cover the Philippine National Police and Armed Forces of the Philippines. He spent the latter part of 1990 to early 1992 embedded with troopers in the southern Philippines as they fought with communist rebels and Muslim extremists. His U.S. journalism career includes reporting and editing stints for newspapers and other media outlets in New York City, California, Texas, Iowa, Utah, Colorado and Washington state.