Minutes 10-15-2013 - Laserfiche WebLink

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City of Mebane Incentive City of Mebane: Mebane City Council approved a "performance-based" local incentive package, calculated as 1.5 % of the Company's actual investment, following a public hearing on October 7, 2013. $34 million investment @ 1.5 % _ $102,000 annual grant x 5 years = $510,000 total grant. $48 million investment @ 1.5% _ $144,000 annual grant x 5 years = $720,000 maximum total grant. State of North Carolina Incentives • "One North Carolina Fund" program $264,000 performance-based 3-year grant. • N. C. Department of Transportation $500,000 to provide road access to the site. • Durham Technical Community College $150,000 earmarked for technical training of new employees (Hillsborough Campus). • Division of Employment Security Pre-screening of job applicants to help identify Orange County residents who wish to gain employment with Morinaga. Conclusion Our Morinaga Success Story: • Highlights Orange County's efforts to diversify our local economy, tax base & employment opportunities. • Creates more & better jobs, with technical training, health & related employment benefits for our residents. • Demonstrates how the BOCC's commitment to prepare the Economic Development Zones with utilities, zoning, incentives & thoughtful use of the '/4 cent sales tax for economic development, has proven to be a winning formula for the long term. • Highlights the public's commitment to economic development through passage of the 1/4 cent sales tax for economic development in Nov. 2011. Michael Talbert discussed the performance based incentive and said there will be no money distributed upfront. He said this will be a reimbursement based on the investment of the company. He said the commencement date of this agreement is December 2015, and the full term of the agreement is 5 years. He said the minimum taxable value of$34 million must be achieved by January 31 of 2018, and the 90 jobs must be achieved by this same date. He said the County tax office will provide verification for the "clawback" provision. Michael Talbert said the company has an average mean salary of$38,000. He reviewed the successes of this process. He reviewed next steps with the Board, to include a public hearing. He said the Manager's recommendation is that the Board approve the performance based economic development incentive and move forward with this project. Chair Jacobs recognized Everette Greene from the Mebane City Council.