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

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25 Attachment #4 • The City of Mebane, which will annex and rezone the proposed site at the landowner's request, has tentatively approved a supplemental local incentive package to the company (specific $ amount to be determined) of the project's $48 million capital investment. The City of Mebane held a public hearing on October 7, 2013 for its proposed incentive to Morinaga. The State of North Carolina has offered the company a $264,000 grant from the "One N. C. Fund" discretionary grant program. This State incentive has a required matching fund requirement from Orange County and the City of Mebane. Refer to the attached commitment letter, dated January 4, 2013 from the North Carolina Department of Commerce's Deputy Secretary Dale Carroll. Also, NCDOT has committed to provide approximately $500,000 to build a 2,500 foot road access improvement by extending the current Ben Wilson service road parallel to the interstate up to the Company's 21 -acre site. Technical training valued at $150,000 or higher, for the new employees, will be provided by the Hillsborough campus of the N. C. Community College System's Durham Technical Community College. • And finally, pre- screening of job applicants will be provided by the State's Division of Employment Security office in Chapel Hill office, to help identify Orange County residents who wish to gain employment with this company. Summary of Key Financial Incentives: State of North Carolina • "One NC Fund" Grant $264,000 • Durham Technical Comm. College training $150,000 • NCDOT Extension of Ben Wilson Road $500,000 $914,000 • Community Development Block Grant $750,000 (maximum grant cap requested by the County) (75% reimbursement of Orange County's total initial cost to extend water and sewer to site) Orange County • Performance Grant $34 million initial investment: $218,790 annual grant x 5 years = $1,093,950 total $48 million potential investment: $308,000 annual grant X 5 years = $1,545,000 total Community Development Block Grant $ to be determined (up to $250,000) (25% co -pay of Orange County's total initial cost to extend water and sewer to site, & road design) City of Mebane • Performance Grant $ to be determined (1.5% of the Company's capital investment) Recommendation to the BOCC: Local and state government has the goal to promote economic development by encouraging the location of new businesses and the expansion of existing businesses. This activity serves to diversify the tax base, increase employment opportunities, and introduce new technologies and job skills to a community and for the benefit of its residents. The Local Government Act, North Carolina General Statute 158 -7.1 outlines the requirements of public hearings, and the public hearing has been scheduled in compliance.