Minutes 10-15-2013 - Laserfiche WebLink

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PUBLIC COMMENT: D.R. Bryan, Chair of the Economic Development Advisory Board, said the board offers their enthusiastic support for this project and asks that the Commissioners support and approve the incentives package. Dr. Bill Ingram, President of Durham Tech, said the school is very supportive of the Board of County Commissioners and the Morinaga Company. He said they have worked with multi-national firms from Durham County. He said Durham Tech's mission is to enrich students' lives and the broader community, through teaching, learning and service. He said this initiative has the opportunity to expand and diversify the economic base in Orange County. Chair Jacobs said, on behalf of the Board, that they are pleased to be creating this partnership. He said the County has just started to embark on the course of offering incentives to businesses that start or stay in Orange County. He said this has been an amicable collaborative process. He thanked Masao Hoshino and the Morinaga family. He thanked the Orange County staff and said they have done an excellent job of shepherding this project through the state, the County and Mebane. He thanked the voters of Orange County, who approved the '/4 cent sales tax, for making an investment in the community. He said this investment would reap many dividends in the County. He said one of these dividends was the ability to provide infrastructure to the western part of Orange County and to bring in Morinaga. Commissioner Gordon said the Board is pleased to have this partnership with Morinaga, and she welcomed them to Orange County. Commissioner Dorosin said, in the interest of transparency, he would like to be clear about the incentives being considered. He said he is very supportive of this project. He referred to the agreement - 6a1. He asked if the investment part of the commitment is a % cent reduction in property tax for up to 5 years. John Roberts said it is based on the property tax, so it will be approximately 75 percent of whatever the final investment is. Commissioner Dorosin asked if this is done on an annual basis, so the taxes can be accounted for. John Roberts said yes. He said a provision was added to the agreement, stating that it will be examined annually. He said the initial intent was that there would be 5 equal annual payments that were equal in amount; but now it will be based on annual valuation, with a maximum amount of$1.5 million. Commissioner Dorosin clarified that this is not actually a payment from the County; but it is a reduction in the amount of property taxes paid. John Roberts said incentives cannot be tax rebates. He said incentive agreements that provide for a payment based on tax valuation are authorized. He said this would be a payment from the County to the company after the tax assessment. Commissioner Dorosin said this means the County collects 100 percent of the taxes and then pays according to the 75 percent formula. Commissioner Dorosin referred to the employment incentive and noted that if the 90 position target is not met, there is a $450 penalty for each position not created. He asked how this will be structured. John Roberts said if employment numbers are not met, then the $450 would be removed from the County's payment to the company. Commissioner Price said she is delighted that Morinaga chose Orange County, and she is looking forward to the many ways the company will enrich Orange County.