Agenda - 01-23-2014 - 6a - Laserfiche WebLink

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9 1 He said this initiative has the opportunity to expand and diversify the economic base in 2 Orange County. 3 4 Chair Jacobs said, on behalf of the Board, that they are pleased to be creating this 5 partnership. He said the County has just started to embark on the course of offering incentives 6 to businesses that start or stay in Orange County. He said this has been an amicable 7 collaborative process. 8 He thanked Masao Hoshino and the Morinaga family. He thanked the Orange County 9 staff and said they have done an excellent job of shepherding this project through the state, the 10 County and Mebane. He thanked the voters of Orange County, who approved the '/4 cent sales 11 tax, for making an investment in the community. He said this investment would reap many 12 dividends in the County. He said one of these dividends was the ability to provide infrastructure 13 to the western part of Orange County and to bring in Morinaga. 14 Commissioner Gordon said the Board is pleased to have this partnership with Morinaga, 15 and she welcomed them to Orange County. 16 Commissioner Dorosin said, in the interest of transparency, he would like to be clear 17 about the incentives being considered. He said he is very supportive of this project. 18 He referred to the agreement - 6a1. He asked if the investment part of the commitment 19 is a % cent reduction in property tax for up to 5 years. 20 John Roberts said it is based on the property tax, so it will be approximately 75 percent 21 of whatever the final investment is. 22 Commissioner Dorosin asked if this is done on an annual basis, so the taxes can be 23 accounted for. 24 John Roberts said yes. He said a provision was added to the agreement, stating that it 25 will be examined annually. He said the initial intent was that there would be 5 equal annual 26 payments that were equal in amount; but now it will be based on annual valuation, with a 27 maximum amount of$1.5 million. 28 Commissioner Dorosin clarified that this is not actually a payment from the County; but it 29 is a reduction in the amount of property taxes paid. 30 John Roberts said incentives cannot be tax rebates. He said incentive agreements that 31 provide for a payment based on tax valuation are authorized. He said this would be a payment 32 from the County to the company after the tax assessment. 33 Commissioner Dorosin said this means the County collects 100 percent of the taxes and 34 then pays according to the 75 percent formula. 35 Commissioner Dorosin referred to the employment incentive and noted that if the 90 36 position target is not met, there is a $450 penalty for each position not created. He asked how 37 this will be structured. 38 John Roberts said if employment numbers are not met, then the $450 would be 39 removed from the County's payment to the company. 40 Commissioner Price said she is delighted that Morinaga chose Orange County, and she 41 is looking forward to the many ways the company will enrich Orange County. 42 Commissioner Rich thanked Morinaga. She said it is exciting to know that the work put 43 into getting the '/4 cent sales tax passed is now turning into this. She said she is excited about 44 all of the partnerships being formed. 45 Commissioner Pelissier said thank you and echoed what Commissioner Rich said about 46 partnerships. She is glad that Morinaga had the courage to locate here in a place without 47 existing infrastructure. She said this means there will now be infrastructure, which will attract 48 more companies. 49 Commissioner McKee said this project is anchored at two points, in Japan and America. 50 He said this creates an opportunity to increase cooperation between countries and cultures. He