Agenda - 06-21-2011 - 5t - Laserfiche WebLink

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ORANGE COUNTY BOARD OF COMMISSIONERS ACTION AGENDA ITEM ABSTRACT Meeting Date: June 21, 2011 Action Agenda Item No. 5-+ SUBJECT: Potential Expansion of Foreign Trade Zone #93 DEPARTMENT: Economic Development PUBLIC HEARING: (Y /N) No ATTACHMENT(S): INFORMATION CONTACT: Triangle J Council of Governments Gary Shope, 919 - 245 -2325 6/6/2011 FTZ Correspondence PURPOSE: To receive information on plans by the Triangle J Council of Governments ( TJCOG) to apply for the expansion of Foreign Trade Zone (FTZ) #93 that could potentially benefit economic development activities in Orange County; and to authorize the BOCC Chair to submit a letter of support for TJCOG's effort regarding the expansion of FTZ #93. BACKGROUND: Foreign Trade Zones are designated areas that provide special customs procedures to US companies that engage in international trade. In these areas, products can be sorted, inspected, further manufactured and otherwise prepared for sale without payment of duty. FTZs benefit companies that are involved in international trade by offering numerous benefits including simplified import/export procedures, duty deferral and tax advantages. As detailed in the enclosed information from the TJCOG, there is interest to further expand on the existing FTZ #93 that was created in 1983. Three (3) manufacturing subzones have since been created as part of the original FTZ - one each in Durham, Wilson, and Granville counties. A recent meeting of the Economic Development Advisory Committee (EDAC) for the Research Triangle Regional Partnership has endorsed the inclusion of the thirteen (13) counties to be part of the FTZ expansion process per recommendations from TJCOG. County Economic Development staff recommends that the Board authorize the Chair to submit a letter to TJCOG in support of its effort to move ahead with the expansion of Foreign Trade Zone #93 and the inclusion of Orange County. Staff plans to attend the July 15th informational meeting regarding the FTZ expansion at the Wake County Community College -Cary Campus (as noted in the attachment) and will provide updates as the process moves forward. FINANCIAL IMPACT: There is no financial impact with submitting a letter of support for the potential expansion of FTZ #93. Potential financial impacts of the expansion itself are anticipated to be discussed during upcoming information sessions. RECOMMENDATION(S): The Manager recommends that the Board: 1. Direct staff to gather additional information on the impact of expanding FTZ #93 to include Orange County; and 2. Authorize the BOCC Chair to submit a letter of support to TJCOG stating Orange County's interest in being included within the Service Area of FTZ #93 (sample letter included in the attachment).