Agenda - 10-15-2013 - 5a - Laserfiche WebLink

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8 1 estimated at $200,000. Estimated design and construction time is 12 months. Also, the cost to 2 design the 2,500 foot access road, (which NCDOT has agreed to build), may cost at least 3 $100,000. In addition to the State's CDBG funding to reimburse Orange County for 75% of total 4 utility and road improvements to the site, the County's "Article 46" 1/4 cent sales tax proceeds are 5 also available, if needed. 6 7 • PSNC Energy will need to extend a natural gas line from the existing 4' line along Ben Wilson Road 8 to the site. The cost for this line extension will be paid entirely by PSNC Energy, and at no cost to 9 Orange County or the company. 10 11 • Duke Energy will deliver all electrical power to the property, to include installing transformers and 12 underground power lines at the site, and at no cost to Orange County or the company. 13 14 • N. C. Department of Transportation has committed to extend the existing Ben Wilson service road 15 adjacent along the highway and up to Morinaga's site. The $500,000 cost to build the 2,500 foot 16 access road will be fully paid by the State of North Carolina and NCDOT. There is no cost to 17 Orange County or the company. NCDOT has verbally committed to funding the access road from 18 a combination of several State resources. Estimated design and construction time is 12 months. 19 20 • In future years, NCDOT anticipates a further extension of this new service road eastward toward 21 Mattress Factory Road, which could favorably influence the State's "Transportation Improvement 22 Plan" (TIP) prioritization to eventually make Mattress Factory Road a full interchange. This needed 23 interchange would serve to improve traffic flow for existing and future truck and employee vehicles 24 throughout the Buckhorn Economic Development District. 25 26 Local & State Financial Incentives: 27 • The Orange County Board of County Commissioners first met in closed session on August 27, 2012 28 and discussed the recommended "performance-based" grant to encourage the company's eventual 29 selection of Orange County. 30 31 • The BOCC met a second time in closed session on January 24, 2013 to discuss the project, and 32 met a third time on March 19, 2013 (during the visit and presentation by Morinaga America's 33 President Masao Hoshino) and voted to tentatively approve the proposed County incentive offer. 34 35 • The Orange County performance-based incentive is calculated as follows: up to 75% of the 36 taxable value of the project's $48.0 million capital investment, for as long as 5 years. This 37 recommended grant will make possible a competitive Orange County incentive of 38 approximately $308,000 annually for 5 years, or, approximately$1.5 million total. The 39 County's performance grant would include a "claw-back" provision in the contract with the company 40 to ensure that the firm's annual target for capital investment and jobs creation is first verified before 41 any County incentive would be provided over the initial 5-year term. The Company will also be 42 required to provide health insurance for its employees during the incentive period, just as required 43 by the State's incentive grant. This information was outlined in the County's commitment letter, 44 dated March 19, 2013 from Orange County Manager Frank Clifton. Orange County will eventually 45 hold a public hearing for the proposed incentive to Morinaga. 46 47 • The City of Mebane, which will annex and rezone the proposed site at the landowner's request, has 48 tentatively approved a supplemental local incentive package to the company (specific $ amount to 49 be determined) of the project's $48 million capital investment. The City of Mebane will hold a public 50 hearing for the proposed incentive to Morinaga. 51 52 53