Agenda - 09-07-1999 - 7a - Laserfiche WebLink

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2 3. The project must provide jobs with wage scales in compliance with Orange County standards adopted from time-to-time (the project will provide jobs with wage scales equal to or greater than the current living wage provision in Orange County's Personnel Ordinance); and 4. The project must have a positive fiscal impact upon Orange County government (the cost of services to be provided must be less than the local taxes and other revenues paid to the County generated by the project (if the renovated property is assessed at $1.5 million, net new county taxes on the property and the equipment would result in County financing being recouped in approximately 3 and 3/ years). FINANCIAL IMPACT: 1. The project will improve job opportunities: a total of 200 jobs will be created, with fewer than 10 slots involving transfers from current plant sites in Virginia. The company's average annual payroll will total between $4.1 and $4.4 million. 2. The project will provide jobs with wage scales equal to or greater than the current living wage provision in Orange County's Personnel Ordinance. 3. At present, the plant site is exempt from property taxes because it is municipally owned. The purchase price is $600,000 and renovations are estimated at $2 to $2.5 million. The company will also install approximately $500,000 in equipment. Conservatively, if the renovated property is assessed at $1.5 million, new county taxes on the property will total $14,235 per year (at 1999-00 tax rate), plus another approximately $4,595 in taxes on the equipment. Using the national average services cost for commercial property ($.30 per $1 paid in property tax), the County's financing would be recouped within 3 and 3/4 years, well within the five year repayment period specified in the Utility Extension Fund Procedures. RECOMMENDATON(S): The Manager recommends that the Board approve the expenditure of $50,000 from the Water and Sewer Extension Fund and execute the agreement.