Agenda - 10-15-2013 - 6a - Laserfiche WebLink

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1 map of the property showing both existing and proposed infrastructure (road access and utility) improvements to the site. FINANCIAL IMPACT: Based on the Company's proposed operation and capital investment forecast of $34 million for land, building, machinery and equipment, the "Hi- Chew" candy production facility will generate approximately $291,720 in annual County property taxes. This will make the Morinaga America Foods operation one of Orange County's most significant corporate taxpayers among all other taxpayers, and thereby help to diversify the County's economy and tax base. The proposed Inducement Grant is calculated as a grant equal to 75% of that amount ($218,790) for a period of up to 5 years, or, a total potential grant of $1,093,950. In the event the Company invests as much as $48 million, the Inducement Grant will allow for an increased annual grant, but shall not exceed $1,545,000 total. The Inducement Grant contains performance -based measures for the Company to demonstrate that it has reached annual job creation and investment threshold levels, and include claw back provisions. The Company will create at least 90 new production jobs with an average annual salary of $37,979 per year, which will generate an annual payroll of $3.4 million. Other economic benefit multipliers to the County include enhanced job skills for those employees through advanced technical training to be provided by the Orange County campus of Durham Technical Community College in Hillsborough. Also, construction employment for the new 98,000 square foot facility will create many additional skilled trade jobs. RECOMMENDATION(S): The Interim Manager recommends that the Board: 1. Receive the proposal to consider the issuance of incentives to a private company for the recruitment of Morinaga America Foods, Inc. to Orange County, and to consider approval of a "performance- based" economic development incentive agreement with claw back provisions. 2. Conduct the Public Hearing and accept public and BOCC comments. 3. Close the Public Hearing. 4. Approve the "Performance- Based" economic development incentive agreement between Orange County and the Company, subject to final review by the County Attorney, and authorize the Chair to sign the agreement on behalf of the County.