Agenda - 01-22-2015 - 6a - Laserfiche WebLink

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I Orange County's western economic development zone. Other Capital Investment Plan (CIP) 2 projects are underway to improve the availability and reach of present utilities in designated 3 economic development land use areas. 4 The ability to have the County's western sewer system under construction enabled the 5 Morinaga project to consider its present location and select an area in Orange County for the 6 firm's new North America operation. In September 2013 the company announced the creation 7 of nearly 100 new manufacturing jobs, and an initial investment of $48 million. A future plant 8 expansion of similar size is anticipated in future years. With this new, clean industry, Morinaga 9 America Foods, Inc. became Orange County largest corporate taxpayer (not counting the 10 electric power utilities), and the County and City of Mebane formed an even closer relationship. 11 12 Additional utility- served sites, along with appropriate zoning, road access and related power 13 infrastructure, have since opened up in the County and are being marketed to other high quality 14 business investment prospects. 15 16 A second illustration of Article 46 funds from this category aiding local collaboration is the 17 County /Town of Carrboro Interlocal Agreement related to the repair of a failing sewer line on 18 Roberson Street, which would have negatively impacted over 20 downtown businesses 19 employing more than 100 people. The sewer line has since been repaired with State funding 20 from a Community Development Block Grant, and a 50/50 sharing of a required co -pay cost. 21 The resolution and obligation for the Article 46 Sales Tax runs for 10 years, while the debt 22 service on infrastructure projects runs for 20 years. Without renewal of the resolution at the end 23 of 10 years, the General Fund would be obligated to pay the debt service. 24 25 Small Business Loan Fund — 16% of annual expenditures ($200,000) 26 The Orange County Economic Development office maintains a loan program that assists small 27 (and start -up) businesses to obtain necessary capital, especially for firms that are otherwise 28 unable to receive normal bank financing due to marginal credit history or short operating 29 experience. Article 46 funds are available, when needed, to replenish the loan program's 30 lending capabilities. Typical loans can be made for as much as $50,000 with a 5 -year 31 repayment term. With the slow recovery of the national, state and local economy, capital 32 demand by local firms should continue to increase, and the County's loan program should find 33 even more demand. The Economic Development office is working diligently to market the 34 program, identify potential borrowers, and make additional loans to local businesses. 35 To date, a total of twelve (12) loans have been made to eleven (11) small businesses, and 36 there is one (1) pending loan application. All loans are current with no delinquent history or 37 negative write -offs. 38 39 Entrepreneurial & Incubator Support - 8% of annual expenditures ($100,000) 40 There is an ongoing and successful effort to retain entrepreneurial start -up talent that originates 41 in the County, such as from UNC Chapel Hill, by supporting an affordable and creative work 42 environment that keeps such talent from leaving the County. Article 46 funds back an Interlocal 43 Agreement between Orange County and the Town of Chapel Hill to support the monthly lease 44 requirements of the "LaUNCh Chapel Hill" innovation center, located on Rosemary Street. Over 45 the initial 3 1 /2 year lease period, the County will provide a total of $140,000 in economic 46 development funding to support "LaUNCh Chapel Hill ". This new incubator, with over 20 full - 47 time promising firms, also has support and financial backing from the University and key private 48 donors. 49