Minutes 11-19-2014 - Laserfiche WebLink

Browse Search

Metadata

Thumbnails

Annotations

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