Orange Lured TRW to Stay With $2-Million Incentive Offer : Economy: Company reversed its decision to leave the area after agreement was reached with city. Some fear other businesses will ask for similar deals.

After resisting public records requests for a month, the Orange Redevelopment Agency has reluctantly disclosed that it had offered TRW $2 million in incentives to cancel plans to move out of town, and also made a previously undisclosed offer of $500,000 to bring some Anaheim operations to Orange.

TRW officials announced May 12 that they had decided not to follow through on a decision to transfer 1,200 jobs out of California, after city officials offered the firm an undisclosed package of subsidies and other benefits.

In a proposal dated the same day as TRW’s public announcement, the city agency said it would pay TRW $200,000 a year for the next decade as long as TRW employs at least 1,000 full-time employees at its Orange headquarters.

Orange officials declined public comment on the reported offer at the time, and also refused to disclose public documents that were handed over to The Times on Friday after the newspaper had its attorneys threaten legal action.

As recently as June 10, in a letter to The Times, Orange City Manager Ronald L. Thompson noted that “negotiations are ongoing, and this office makes no comment as to whether any or all of the material contained in that document remains the subject of negotiations.”

TRW’s Orange headquarters has 1,200 employees, making it the city’s second-largest private employer.

Orange’s package of financial incentives has been seen by some as a creative solution to a growing number of companies fleeing California for less expensive markets.

Others, including some City Council members who had not seen the May 12 proposal, are worried that many other companies might seek similar deals.

“There are some small businesses that already have,” Councilwoman Joanne Coontz said.

Should TRW’s employment in Orange fall to less than 1,000 people, the May 12 proposal stipulates that the city will deduct $500 per employee from its offer.

If TRW’s work force drops below 750 employees, Orange will not provide the company with any assistance, according to the proposal.

Orange has also offered TRW $500,000 if the firm decides to move a 146-employee data center from Anaheim to Orange. The data center contains the credit histories of 170 million Americans, according to TRW spokeswoman Susan Murdy.

TRW is considering varied new locations for its data center, including some in Texas.

Anaheim Mayor Fred Hunter said Friday that his city will present TRW with a counteroffer to the Orange proposal on Wednesday.

Because Anaheim owns its water and power system, Hunter said, the city plans to offer TRW a “substantial” discount on electricity.

The TRW data center was the 13th-largest user of electricity in Anaheim last year. Hunter said the company has a $1.5-million electric bill every year.

Hunter said the savings TRW could earn on electricity would amount to more than the Orange offer of $500,000.