Agenda - 05-18-2010 - 8b - Laserfiche WebLink

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Appendix IV. Incentive Programs for Businesses Locating /Growing in Durham City and County 35 Financing Options and Resources City Economic Development Investment Policy: City of Durham The Capital Investment Incentive segment of the City's Economic Investment Policy provides a credit for up to three percent (3 %) of the new, non - residential capital investment for projects located within the designated Community Development Area (CDA), or up to one and one -half percent (1.5 %) of the project investment if the facility is located outside the CDA. In no event will this incentive exceed $1 million. The following criteria apply to all projects considered under this policy: If the facility is located within the CDA and within Priority Growth Line (PGL), the project must directly create at least $500,000 in new, non- residential capital investment, or ten new (10) full -time jobs If located outside the CDA, but within the PGL, the project must exceed a $20 million threshold in new, non- residential capital investment or create one hundred (100) full -time jobs • If located beyond both the CDA and the PGL, the project must directly create at least $25 million in new, non- residential capital investment or one hundred and fifty (150) full -time jobs • Eligible real estate includes office buildings, health care facilities, R &D facilities and labs, and warehouse /distribution buildings In order to qualify, the project must be located within city limits and all proposed development must be consistent with Durham's economic and land -use goals. Economic Development Investment Fund: Durham County Corporations planning to develop or expand their site within Durham County may be eligible for a tax credit up to five percent (5 %) of the total new or expansion capital investment, not to exceed $2 million. Funding proposals are developed to help offset specific site preparation expenses, such as site grading, road improvements, and campus amenities. Eligible industries for this investment are corporate headquarters, R &D operations, manufacturing facilities, and warehouse /distribution industries. A minimum investment threshold of $15 million and forty (40) new, full -time jobs has been established. Durham County is interested in creating quality jobs for its residents paying a competitive wage level. EC Rider Incentive Rate for Electricity: Duke Energy Company Duke Energy offers a four -year billing credit incentive for new and expanding industry in Durham County. This credit is applied to the participating firm's electric bill, and will reduce annual costs by twenty percent (20 %) in the first year, fifteen percent (15 %) in the second year, ten percent (10 %) in the third year, and five percent (5 %) in the fourth and final year. In order to be eligible, the company must add a minimum of 1,000 kilowatts (kW) of new service at one delivery point, and must maintain a monthly average of 250 hours use of electricity demand. Additionally, a capital business investnent of $400,000 per 1,000 kW of load added plus a net increase in full -time employees, or an increase of at least seventy five (75) full -time employees per 1,000 kW of new load within the Duke Energy service area. This incentive requires a minimum use contract commitment of ten (10) years. Foreign Trade Zone: State of North Carolina Under federal authorization, the North Carolina Department of Commerce has created six (6) Foreign � Greater Durham County Chamber of Commerce website www.durhamchambecorg !business /starling -growing 4o1Page